Document & Entity Information D
Document & Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Apr. 10, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Entity Public Float | $ 31,271,019 | ||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2022 | ||
Document fiscal period focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Central index key | 0001401521 | ||
Filer category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Common stock outstanding | 43,273,373 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35761 | ||
Registrant name | United Insurance Holdings Corp. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-3241967 | ||
Entity Address, Address Line One | 800 2nd Avenue S. | ||
Entity Address, Postal Zip Code | 33701 | ||
Entity Address, State or Province | FL | ||
Entity Address, City or Town | St. Petersburg, | ||
City Area Code | 727- | ||
Local Phone Number | 895-7737 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading symbol | UIHC | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | true | ||
Document Information | |||
Common stock outstanding | 43,273,373 | ||
Document Transition Report | false | ||
Auditor Firm ID | 34 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Tampa, Florida | ||
Document Annual Report | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments available for sale, at fair value: | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | $ 376,463 | $ 663,602 |
Equity securities | 39,020 | 37,958 |
Other investments (amortized cost of $16,578 and $17,131, respectively) | 16,628 | 18,006 |
Total investments | 432,111 | 719,566 |
Cash and cash equivalents | 229,893 | 212,024 |
Restricted Cash | 53,717 | 33,254 |
Cash, Cash Equivalents, and Restricted Cash | 283,610 | 245,278 |
Accrued investment income | 3,062 | 3,296 |
Property, Plant and Equipment, Net | 19,591 | 31,561 |
Premiums receivable, net (credit allowance of $69 and $32, respectively) | 86,036 | 79,166 |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 1,631,408 | 997,120 |
Ceded unearned premiums | 213,028 | 430,631 |
Goodwill | 59,476 | 73,045 |
Deferred policy acquisition costs | 58,933 | 38,520 |
Intangible Assets, Net (Excluding Goodwill) | 12,770 | 18,375 |
Other Assets | 37,471 | 62,015 |
Total Assets | 2,837,496 | 2,698,573 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 1,946,938 | 1,084,450 |
Unearned premiums | 644,940 | |
Reinsurance Payable | 59,896 | 248,625 |
Payments outstanding | 215,057 | 114,524 |
Accounts Payable and Accrued Expenses | 74,503 | 76,258 |
Operating Lease, Liability | 1,689 | 1,934 |
Other Liabilities | 23,159 | 39,324 |
Notes payable | 152,473 | 156,561 |
Total Liabilities | 3,019,535 | 2,366,616 |
Commitments and contingencies (Note 12) | ||
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 43,492,256 and 43,360,429 issued, respectively; 43,280,173 and 43,370,442 outstanding, respectively | 4 | 4 |
Additional Paid in Capital | 395,631 | 394,268 |
Treasury shares, at cost; 212,083 shares | (431) | (431) |
Accumulated other comprehensive income | (30,947) | (6,531) |
Retained Earnings (Accumulated Deficit) | (546,296) | (74,904) |
Total Stockholders' Equity | (182,039) | 312,406 |
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 19,551 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (182,039) | 331,957 |
Total Liabilities and Stockholders' Equity | 2,837,496 | 2,698,573 |
Reinsurance Recoverable, Allowance for Credit Loss | 603 | 563 |
Fixed Maturities | ||
Investments available for sale, at fair value: | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 376,463 | 663,602 |
Stockholders' Equity: | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 409,517 | $ 672,139 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Investments and Securities, at Cost | $ 16,578 | $ 17,131 |
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 0 | 0 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 43,492,256 | 43,360,429 |
Common stock, outstanding shares | 43,280,173 | 43,370,442 |
Treasury stock | 212,083 | 212,083 |
Premium Receivable, Allowance for Credit Loss | $ 69 | $ 32 |
Reinsurance Recoverable, Allowance for Credit Loss | 603 | 563 |
Financing Receivable, Allowance for Credit Loss | 0 | 0 |
Fixed Maturities | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 409,517 | $ 672,139 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUE: | |||
Gross premiums written | $ 1,124,063 | $ 1,329,445 | $ 1,456,863 |
Change in gross unearned premiums | 99,120 | 78,998 | (49,883) |
Gross premiums earned | 1,223,183 | 1,408,443 | 1,406,980 |
Ceded Premiums Earned | (760,557) | (818,682) | (641,317) |
Net premiums earned | 462,626 | 589,761 | 765,663 |
Investment Income, Net | 14,011 | 13,772 | 24,125 |
Net realized gains (losses) | (32,082) | 3,567 | 66,691 |
Unrealized Gain (Loss) on Investments | (6,585) | 3,237 | (27,562) |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 3,237 | (27,562) | |
Other revenue | 17,452 | 24,190 | 17,739 |
Total revenue | 455,422 | 634,527 | 846,656 |
EXPENSES: | |||
Losses and loss adjustment expenses | 637,647 | 422,134 | 608,316 |
Policy Acquisition Costs | 156,089 | 173,574 | 236,002 |
Operating Costs and Expenses | 43,632 | 56,257 | 52,876 |
General and Administrative Expense | 63,317 | 57,212 | 72,057 |
Interest Expense | 9,613 | 9,391 | 9,582 |
Total expenses | 910,298 | 718,568 | 978,833 |
Income before other income | (454,876) | (84,041) | (132,177) |
Other Income | 10,395 | 184 | 74 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (444,481) | (83,857) | (132,103) |
Provision (benefit) for income taxes | 25,485 | (23,989) | (36,605) |
Net Income (Loss) Attributable to Parent | (469,855) | (57,919) | (96,454) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (469,966) | (59,868) | (95,498) |
OTHER COMPREHENSIVE INCOME: | |||
Change in net unrealized gain (loss) on investments | (56,600) | (18,267) | 64,726 |
Reclassification adjustment for net realized investment gains | 32,082 | (3,567) | (66,691) |
Income tax benefit (expense) related to items of other comprehensive income | 49 | 5,264 | 502 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (494,435) | (76,438) | (96,961) |
Total comprehensive income | $ (494,271) | $ (74,143) | $ (98,080) |
Weighted average shares outstanding | |||
Basic | 43,052,070 | 42,948,850 | 42,864,166 |
Diluted | 43,052,070 | 42,948,850 | 42,864,166 |
Earnings per share | |||
Earnings Per Share, Basic | $ (10.91) | $ (1.35) | $ (2.25) |
Earnings Per Share, Diluted | $ (10.91) | $ (1.35) | $ (2.25) |
Net Income (Loss) Attributable to Noncontrolling Interest | $ (111) | $ (1,949) | $ 956 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ (164) | $ (2,295) | $ 1,119 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Comprehensive Income | Retained Earnings | Parent | Noncontrolling Interest |
Stockholders' Equity Attributable to Parent | $ 4 | $ 391,852 | $ (431) | $ 11,319 | $ 100,394 | $ 503,138 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 20,727 | |||||||
Beginning balance (shares) at Dec. 31, 2019 | 43,028,074 | |||||||
Beginning balance at Dec. 31, 2019 | $ 523,865 | |||||||
Net Income (Loss) Attributable to Parent | (96,454) | $ 0 | 0 | 0 | 0 | (96,454) | (96,454) | |
Net Income (Loss) Attributable to Noncontrolling Interest | 956 | 956 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | |||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (1,463) | |||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | (1,626) | 0 | (1,626) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 163 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 47,803 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,270 | $ 0 | 1,270 | 0 | 0 | 0 | 1,270 | 0 |
Dividends, Common Stock, Cash | (10,313) | $ 0 | 0 | 0 | 0 | (10,313) | (10,313) | 0 |
Investment in Subsidiary - NCI | 0 | |||||||
Ending balance (shares) at Dec. 31, 2020 | 43,075,877 | |||||||
Ending balance at Dec. 31, 2020 | 417,599 | |||||||
Stockholders' Equity Attributable to Parent | $ 4 | 393,122 | (431) | 9,693 | (6,635) | 395,753 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 21,846 | |||||||
ASU 2016-13 Effect on Retained Earnings | (262) | (262) | (262) | 0 | ||||
Net Income (Loss) Attributable to Parent | (57,919) | 0 | 0 | 0 | 0 | (57,919) | (57,919) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (1,949) | (1,949) | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (59,868) | |||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (16,570) | |||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | (16,224) | 0 | (16,224) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | (346) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 294,565 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,146 | $ 0 | 1,146 | 0 | 0 | 0 | 1,146 | 0 |
Dividends, Common Stock, Cash | (10,350) | $ 0 | 0 | 0 | 0 | (10,350) | (10,350) | |
Investment in Subsidiary - NCI | $ 0 | |||||||
Ending balance (shares) at Dec. 31, 2021 | 43,370,442 | 43,370,442 | ||||||
Ending balance at Dec. 31, 2021 | $ 331,957 | |||||||
Stockholders' Equity Attributable to Parent | 312,406 | $ 4 | 394,268 | (431) | (6,531) | (74,904) | 312,406 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 19,551 | 19,551 | ||||||
Net Income (Loss) Attributable to Parent | (469,855) | 0 | 0 | 0 | 0 | (469,855) | (469,855) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (111) | (111) | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (469,966) | |||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (24,469) | |||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | (24,416) | 0 | (24,416) | ||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | (53) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | (90,269) | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,363 | $ 0 | 1,363 | 0 | 0 | 0 | 1,363 | 0 |
Dividends, Common Stock, Cash | (2,589) | $ 0 | 0 | 0 | 0 | (2,589) | (2,589) | 0 |
Investment in Subsidiary - NCI | $ (18,335) | |||||||
Ending balance (shares) at Dec. 31, 2022 | 43,280,173 | 43,280,173 | ||||||
Ending balance at Dec. 31, 2022 | $ (182,039) | |||||||
Return of capital - Noncontrolling interest | (18,335) | 1,052 | 1,052 | (19,387) | ||||
Stockholders' Equity Attributable to Parent | (182,039) | $ 4 | $ 395,631 | $ (431) | $ (30,947) | $ (546,296) | $ (182,039) | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 9,553 | $ 9,534 | $ 9,533 |
Proceeds from Income Tax Refunds | 2,487 | (19,895) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (469,966) | (59,868) | (95,498) |
Net Income (Loss) Attributable to Parent | (469,855) | (57,919) | (96,454) |
Property, Plant and Equipment, Transfers and Changes | 2,884 | 21 | 2,949 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 37 | (108) | 140 |
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | 40 | 177 | 386 |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 0 | (20) | 20 |
Net Cash Provided by (Used in) Operating Activities | (173,113) | (295,391) | (10,471) |
Net Cash Provided by (Used in) Investing Activities | 236,835 | 251,377 | 36,566 |
Investment in Subsidiary - NCI | (18,335) | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | (25,390) | (12,206) | (11,654) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 38,332 | (56,220) | 14,441 |
Cash, Cash Equivalents, and Restricted Cash | 283,610 | 245,278 | 301,498 |
Depreciation and amortization | 23,312 | 11,768 | 11,046 |
Accretion (Amortization) of Discounts and Premiums, Investments | (5,624) | (8,814) | (6,422) |
Debt and Equity Securities, Gain (Loss) | (32,082) | 3,567 | 66,691 |
Unrealized Gain (Loss) on Investments | (6,585) | 3,237 | (27,562) |
Increase (Decrease) in Deferred Income Taxes | (24,138) | 22,816 | 9,894 |
Share-based Payment Arrangement, Noncash Expense | 1,388 | 1,185 | 1,382 |
Payment receivable in connection with HCI renewal rights agreement | 3,800 | (3,800) | 0 |
HCI Stock Issued in Connection with Renewal Rights Agreement | 0 | (5,007) | 0 |
Increase (Decrease) in Accrued Investment Income Receivable | (234) | (1,384) | (1,221) |
Increase (Decrease) in Premiums Receivable | 6,833 | (8,065) | 496 |
Increase (Decrease) in Reinsurance Recoverable | 634,248 | 175,787 | 270,890 |
Increase (Decrease) in Prepaid Reinsurance Premiums | (217,603) | 46,043 | 114,554 |
Increase (Decrease) in Deferred Policy Acquisition Costs | (20,413) | 35,894 | 30,158 |
Increase (Decrease) in Other Operating Assets | 3,218 | (20,898) | 31,917 |
Unpaid losses and loss adjustment expenses | 862,488 | (5,516) | 329,609 |
Unearned premiums | (99,120) | (78,998) | 49,883 |
Reinsurance payable | (188,729) | 6,989 | 75,505 |
Payments outstanding | 100,533 | 36,612 | 20,357 |
Accounts payable | (1,755) | (14,915) | 12,581 |
Change in Operating Lease Liability | (245) | (377) | 1,987 |
Increase (Decrease) in Other Operating Liabilities | (16,292) | (7,041) | 9,353 |
Proceeds from sales and maturities of investments available for sale | 250,536 | 442,406 | 695,288 |
Proceeds from Sale of Equity Securities, FV-NI | 750 | 12,691 | 144,990 |
Proceeds from Sale and Maturity of Other Investments | 2,825 | 72,462 | 4,586 |
Payments to Acquire Debt Securities, Available-for-sale | 25,545 | 198,553 | 726,862 |
Purchases of Equity Investments | 7,648 | 30,222 | 26,540 |
Payments to Acquire Other Investments | 2,272 | 42,136 | 44,048 |
Payments to Acquire Property, Plant, and Equipment | 3,047 | 5,271 | 10,848 |
Payment, Tax Withholding, Share-based Payment Arrangement | 25 | 39 | 112 |
Repayments of Long-term Debt | 4,441 | 1,817 | 1,229 |
Payments of Dividends | 2,589 | 10,350 | 10,313 |
Income taxes paid | 1,265 | ||
Gain on sale of building | (12,888) | ||
Proceeds from Sale of Property, Plant, and Equipment | 21,236 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | (40) | (177) | (386) |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 0 | 20 | (20) |
Depreciation and amortization | 23,312 | 11,768 | 11,046 |
Accretion (Amortization) of Discounts and Premiums, Investments | 5,624 | 8,814 | 6,422 |
Net realized gains (losses) | 32,082 | (3,567) | (66,691) |
Unrealized Gain (Loss) on Investments | 6,585 | (3,237) | 27,562 |
Deferred income taxes, net | 24,138 | (22,816) | (9,894) |
Share-based Payment Arrangement, Noncash Expense | 1,388 | 1,185 | 1,382 |
Changes in operating assets and liabilities: | |||
Accrued investment income | 234 | 1,384 | 1,221 |
Premiums receivable | (6,833) | 8,065 | (496) |
Reinsurance recoverable on paid and unpaid losses | (634,248) | (175,787) | (270,890) |
Prepaid reinsurance premiums | 217,603 | (46,043) | (114,554) |
Deferred policy acquisition costs, net | 20,413 | (35,894) | (30,158) |
Other assets | (3,218) | 20,898 | (31,917) |
Unpaid losses and loss adjustment expenses | 862,488 | (5,516) | 329,609 |
Unearned premiums | (99,120) | (78,998) | 49,883 |
Reinsurance payable | (188,729) | 6,989 | 75,505 |
Payments outstanding | 100,533 | 36,612 | 20,357 |
Accounts payable | (1,755) | (14,915) | 12,581 |
Change in Operating Lease Liability | (245) | (377) | 1,987 |
Other Liabilities | (16,292) | (7,041) | 9,353 |
Net Cash Provided by (Used in) Operating Activities | (173,113) | (295,391) | (10,471) |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of investments available for sale | 250,536 | 442,406 | 695,288 |
Proceeds from Sale and Maturity of Other Investments | 2,825 | 72,462 | 4,586 |
Purchases of Equity Investments | (7,648) | (30,222) | (26,540) |
Payments to Acquire Other Investments | (2,272) | (42,136) | (44,048) |
Payments to Acquire Debt Securities, Available-for-sale | (25,545) | (198,553) | (726,862) |
Payments to Acquire Property, Plant, and Equipment | (3,047) | (5,271) | (10,848) |
Net Cash Provided by (Used in) Investing Activities | 236,835 | 251,377 | 36,566 |
FINANCING ACTIVITIES | |||
Payment, Tax Withholding, Share-based Payment Arrangement | (25) | (39) | (112) |
Repayments of borrowings | (4,441) | (1,817) | (1,229) |
Payments of Dividends | (2,589) | (10,350) | (10,313) |
Net Cash Provided by (Used in) Financing Activities | (25,390) | (12,206) | (11,654) |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 245,278 | 301,498 | 287,057 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 38,332 | (56,220) | 14,441 |
Cash, Cash Equivalents, and Restricted Cash at end of period | $ 283,610 | $ 245,278 | 301,498 |
Supplemental Cash Flows Information | |||
Income taxes paid | $ 1,265 |
Organization, Consolidation and
Organization, Consolidation and Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation | ORGANIZATION, CONSOLIDATION AND PRESENTATION (a) Business United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UPC Insurance) is a property and casualty insurance holding company that sources, writes and services residential personal and commercial property and casualty insurance policies using a network of agents and wholly-owned insurance subsidiaries. Our original insurance subsidiary is United Property & Casualty Insurance Company (UPC), which was formed in Florida in 1999. Our two other insurance subsidiaries are Interboro Insurance Company (IIC), acquired via merger on April 29, 2016; and American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017. Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent that manages substantially all aspects of UPC's business; Skyway Claims Services, LLC, which provides claims adjusting services to UPC, and ACIC; AmCo Holding Company, LLC (AmCo), which is a holding company subsidiary that consolidates its respective insurance company; BlueLine Cayman Holdings (BlueLine), which reinsures portfolios of excess and surplus policies; UPC Re, which provides a portion of the reinsurance protection purchased by our insurance subsidiaries when needed; Skyway Reinsurance Services, LLC, which provides reinsurance brokerage services for our insurance companies; Skyway Legal Services, LLC, which provides claims litigation services to our insurance companies; and Skyway Technologies, LLC, a managing general agent that provides technological and distribution services to our insurance companies. Our primary products are homeowners' and commercial residential property insurance. In 2022 we offered personal residential insurance in six states, under authorization from the insurance regulatory authorities in each state. In addition, we write commercial residential insurance in Florida. During 2022, we also wrote commercial residential insurance in South Carolina, and Texas, however, effective May 1, 2022, we no longer write in these states. We are also licensed to write property and casualty insurance in an additional twelve states; however, we have not commenced writing or no longer write in these states. On August 25, 2022, we announced that UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entail non-renewing personal lines policies in these states. Additionally, we announced that Demotech, Inc. (Demotech), an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the Florida Office of Insurance Regulation ("FLOIR") issued Consent Order No. 303643-22- CO that provides for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provides formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. Additionally, in connection with the Plan, IIC has agreed to not pay ordinary dividends without the prior approval of the New York Department of Financial Services until January 1, 2025. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely and on February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services which divested our ownership of UPC. Effective June 1, 2022, we merged our majority-owned insurance subsidiary, Journey Insurance Company (JIC) into ACIC, with ACIC being the surviving entity. JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018, and operated independently from ACIC prior to the merging of the entities. The Kiln subsidiary held a noncontrolling interest in JIC, which was terminated prior to the merger. Effective June 1, 2022, we entered into a quota share reinsurance agreement with TypTap Insurance Company (Typtap). Under the terms of this agreement, we cede 100% of our in-force, new, and renewal policies in the states of Georgia, North Carolina and South Carolina. Effective June 1, 2022, we began the transition of South Carolina policies to Homeowners Choice Property and Casualty, Inc (HCPCI) in connection with our renewal rights agreement. Effective October 1, 2022, transitioned Georgia policies to HCPCI in connection with our renewal rights agreement. Effective December 1, 2022, we began the transition of North Carolina policies to HCPCI in connection with our renewal rights agreement. As a result, these policies will no longer be covered under this agreement upon their renewal. This agreement replaces the 85% quota share agreement with HCPCI effective December 31, 2021. Effective May 31, 2022, we merged Family Security Insurance Company, Inc. (FSIC) into UPC, with UPC being the surviving entity. FSIC was acquired via merger on February 3, 2015, and operated independently from UPC prior to the merging of the entities. In conjunction with the merger, we dissolved Family Security Holdings (FSH), a holding company subsidiary that consolidated its respective insurance company, FSIC. Effective June 1, 2021, we entered into a quota share reinsurance agreement with HCPCI and TypTap. Under the terms of this agreement, we ceded 100% of our in-force, new, and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession of these policies was 50% to HCPCI and 50% to TypTap. HCPCI is responsible for processing all claims as a part of this agreement. As of April 1, 2022, we completed the transition of all policies in these four states to HCPCI in connection with our renewal rights agreement (Northeast Renewal Agreement) to sell UPC's personal lines homeowners business in these states. We conduct our operations under two reportable segments, personal residential property and casualty insurance policies and commercial residential property and casualty insurance policies. Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at both segment levels as well as the corporate level. (b) Consolidation and Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). While preparing our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, investments and goodwill. Except for the captions on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Loss, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. (c) Going Concern In accordance with ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its obligations as they become due within one year after the date that the financial statements are issued. As required under ASC 205-40, management’s evaluation should initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. In performing this evaluation, we concluded that under the standards of ASC 205-40 the following conditions raised substantial doubt about our ability to continue as a going concern: (1) the ability to obtain reinsurance recoveries allocated to ACIC under the catastrophe treaties covering Hurricane Ian where ACIC’s affiliate, United Property & Casualty Insurance Company (“UPC”) is also a party, and (2) the ability to obtain adequate reinsurance to meet the requirements of the FLOIR and Demotech, the rating agency, for future reinsurance periods. Upon completion of the Company’s year-end review of unpaid loss and loss adjustment reserves with our independent actuarial firm, our insurance entity, UPC, increased its gross loss estimate related to Hurricane Ian to $864 million. UPC’s loss estimate of $864 million fully exhausts all reinsurance available to UPC for this specific event, based on the reinsurance allocation agreement discussed below. As a result of this development, the Company immediately notified the FLOIR that UPC was expected to be insolvent as of December 31, 2022. On February 27, 2023, UPC was ordered into receivership for purposes of liquidation, with the Florida Department of Financial Services (the “DFS”) appointed as the receiver, which deconsolidated UPC from the group. The Company’s other insurance subsidiaries are not parties to the receivership and continue to operate. However, ACIC’s catastrophe reinsurance coverage is a part of a combined reinsurance program with UPC. To properly allocate the reinsurance recoverables under the shared catastrophe treaties, UPC and ACIC entered a reinsurance allocation agreement that became effective on June 1, 2022 (the “Allocation Agreement”). The Allocation Agreement was filed with and approved by the FLOIR on December 5, 2022. However, ACIC now believes there is uncertainty regarding the timing of receipt of both recoveries currently held by UPC that are allocated to ACIC and future recoverables now that UPC has been placed into receivership. As of December 31, 2022, UPC held recoveries due to ACIC totaling $31,306,000. On April 5, 2023, the Company filed a Motion for Release of Property of ACIC in the Circuit Court of the Second Judicial Circuit for Leon County, Florida, requesting that UPC immediately remit to ACIC reinsurance recoveries currently held by UPC and reinsurance recoveries recovered by UPC in the future in accordance with the Company’s Allocation Agreement. Alternatively, ACIC requested reinsurance recoveries remitted to UPC be placed into a segregated account for future reconciliation and remittance to ACIC. On April 13, 2023, the DFS filed a response to the Company’s motion, objecting to ACIC’s position. On April 14, 2023, the Court denied ACIC’s motion without prejudice. As a result of the foregoing, management believes substantial doubt exists regarding the Company’s ability to continue as a going concern. As of December 31, 2022, ACIC calculates it is due approximately $273 million from the private reinsurance program described above in accordance with the Allocation Agreement approved by the FLOIR, related to its ultimate gross Hurricane Ian loss. To the extent that these reinsurance recoverables are not received timely and treated as a nonadmitted asset of ACIC, which would be excluded from regulatory capital and surplus, the Company may not have sufficient liquidity to continue to operate. Management believes that the ability for ACIC to obtain adequate reinsurance to meet its needs for the June 1, 2023 to May 31, 2024 catastrophe cover can only be accomplished assuming that recoveries due to ACIC pursuant to the Allocation Agreement can be resolved in short order. Such conditions raise substantial doubt regarding the Company’s ability to continue as a going concern for one year following the issuance of the financial statements. The Company intends to continue to work towards a fair and equitable resolution regarding these recoveries, however no assurance can be given that it will receive all or any portion of the reinsurance recoverables that it believes are due to ACIC. (d) Impact of COVID-19 and Financial Status We did not experience a material impact from COVID-19 on our business operations, financial position, liquidity or our ability to service our policyholders during the year ended December 31, 2022. In addition, the COVID-19 pandemic and resulting global disruptions did not have a material impact on our access to credit and capital markets needed to maintain sufficient liquidity for our continued operating needs during the year ended December 31, 2022. Additionally, during the fourth quarter of 2021 we implemented our new flexible work policy. This policy allows all employees to work remotely permanently, with the return to our offices being completely voluntary at this time. We will continue to respond to the COVID-19 pandemic and take reasonable measures to make sure customers continue to be served without interruption. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Cash, cash equivalents, and restricted cash Our cash, cash equivalents, and restricted cash include demand deposits with financial institutions, cash that is held in trust for assumed business, cash held in deposit accounts to satisfy state statutory deposit requirements, and short-term, highly liquid instruments with original maturities of three months or less when purchased. (b) Investments We currently classify all of our investments in fixed maturities and short-term investments as available-for-sale, and report them, our equity securities and limited partnership investments at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive loss. We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net loss. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Quarterly, we perform an assessment of our investments to determine if any are impaired as the result of a credit loss. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security’s entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss. A large portion of our investment portfolio consists of fixed maturities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. During the year ended December 31, 2022, management determined that it was more likely than not that we would be required to sell a portion of our fixed-income securities attributable to our personal lines operating segment before recovery of their amortized cost basis. These securities were evaluated and none of the unrealized loss position was the result of a credit loss. As a result, we realized impairment losses of $22,718,000 on these securities, before tax impacts. Total shareholders’ equity (deficit) was not impacted by such charge; however, our net loss for the year ended December 31, 2022 worsened and other comprehensive income improved by $22,718,000 in offsetting amounts. (c) Fair Value See Note 4 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2022 and 2021. (d) Allowance for Expected Credit Losses See Note 13 in our Notes to Consolidated Financial Statements for a discussion regarding the allowance for expected credit losses at December 31, 2022 and 2021. (e) Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then estimate expected credit losses based on historical trends, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. Once these conditions have been examined, we establish an allowance for credit losses for any amounts not expected to be collected. When we receive payments on amounts previously charged off, we credit our expected credit loss expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $69,000 and $32,000 at December 31, 2022 and 2021, respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premiums liability and record the premiums as described above. (f) Policy Acquisition Costs We incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. Such costs include, but are not limited to: incremental direct costs of contract acquisition, such as commissions; premium taxes; and other essential direct costs that would not have been incurred had a policy not been acquired or renewed. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, reinsurance costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. At December 31, 2022, our insurance subsidiary UPC was determined to have a premium deficiency. As a result, we expensed $20,173,000 in deferred policy acquisition costs, which was the excess of what we expect to recover. We did not have a premium deficiency at December 31, 2021. (g) Debt Issuance Costs We record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. (h) Long-lived Assets i) Property and Equipment We record our property and equipment at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. ii) Capitalized Software We capitalize certain direct development costs associated with internal-use software. We amortize the capitalized software costs related to our data warehouse, claims systems and policy administration systems over their expected seven See Note 7 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software that were held during 2022 and 2021. iii) Impairment of Long-lived Assets We annually review our long-lived assets, or more frequently when impairment indicators exist, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. (i) Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for incurred but not reported (IBNR) claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net loss. Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. On our Consolidated Balance Sheets, we report our reserves for unpaid losses gross of the amounts related to unpaid losses recoverable from reinsurers. On our Consolidated Statements of Comprehensive Loss, we report losses net of amounts ceded to reinsurers. We do not discount our loss reserves for financial statement purposes. (j) Segment Reporting Operating segments are components of our business about which separate financial information is available and evaluated by our Chief Operating Decision Maker (CODM) in decisions regarding resource allocations and financial performance assessments. Generally, financial information is required to be reported on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to each segment. Segments are determined based on differences in products, internal reporting, and how operational decisions are made. We disclose two operating segments, our commercial lines business and our personal lines business. We are required to report a measure of each of these segments profit or loss, certain revenue and expense items, and segment assets. We are also required to reconcile total segment profit or losses, total segment revenues, total segment assets, and other amounts disclosed for segments to the corresponding amounts in our consolidated financial statements. See Note 3 in our notes to Consolidated Financial Statements for the financial presentation of our operating segments. (k) Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with our acquisitions to two reporting segments. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting segment to its carrying value. We test goodwill for impairment by performing a quantitative assessment. In performing the quantitative impairment test, we use a discounted cash flow valuation approach. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting segment include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting segment. The valuation methodology utilized is subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting segments could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. For the 2022 annual goodwill impairment tests we utilized the quantitative assessment for our commercial lines reporting segment, determining that the goodwill was not impaired for the reporting segment. During the third quarter of 2022, as a result of the strategic decision to place UPC into an orderly runoff, we recognized an impairment of our personal lines reporting segment’s goodwill totaling $13,569,000. For the 2021 annual goodwill impairment tests, we utilized the qualitative assessment for our commercial lines reporting segment and both the qualitative and quantitative assessment for our personal lines reporting segment, determining that the goodwill was not impaired for either of our reporting segments. For the 2020 annual goodwill impairment tests, we utilized the quantitative assessment for both of our reporting segments and determined that goodwill was not impaired. (l) Intangible Assets Identifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically review identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. During 2022, we disposed of licenses that we no longer held and evaluated all other intangible assets. During 2022, 2021 and 2020 , we determined that the fair values of all remaining intangible assets were not impaired. (m) Leases We evaluate if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Identified property, plant or equipment for all of our leases are physically distinct and explicitly identified. In addition, we assess whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. Our leases expire at various dates and may contain renewal options. Our leases do not contain termination options. The exercise of lease renewal options are at our sole discretion and are only included in the determination of the lease term if we are reasonably certain to exercise the option. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Right-of-use assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. We have elected the practical expedient related to lease and non-lease components, as an accounting policy election for our office equipment leases, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component. We have also elected the practical expedients to exclude leases considered to be short-term and with values that fall under our capitalization threshold. A portion of our lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and right-of-use asset balances. Our office equipment lease agreements may include variable payments based on usage of the equipment. We utilized discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. We used an incremental borrowing rate based on factors such as lease term to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, we considered the rate of interest we would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms. (n) Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Refer to Note 14 for additional information. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. We recognize interest accrued related to uncertain tax benefits and penalties as income tax expense. As of December 31, 2022, we have no accrued penalties or interest related to uncertain tax benefits. In June 2022, we assessed our deferred tax position and believe it is more likely than not that the benefit from our deferred tax assets (DTA) will not be realized. In recognition of this risk, we have recorded a valuation allowance of $128,993,000 against our deferred tax assets as of December 31, 2022. If our assumptions change and we determine that we will be able to realize these DTAs, we will reverse the valuation allowance accordingly. On August 16, 2022, President Biden signed into law the Inflation Reduction Act (the IRA). The IRA contains $500 billion in new spending and tax breaks that aim to boost clean energy, reduce healthcare costs, and increase tax revenues. We reviewed the corporate tax impacts of the IRA and identified two provisions that needed further analysis to determine the impact to our business. First, the IRA established a corporate alternative minimum tax (CAMT) equal to 15% of average adjusted financial statement income (AFSI) over the CAMT foreign tax credit for the tax year. The CAMT is effective for tax years beginning after December 31, 2022 and only applies to corporations with an AFSI in excess of one billion dollars over three years. We do not expect to be subject to CAMT in 2023, due to this AFSI requirement. Second, the IRA imposes a nondeductible 1% excise tax on the net value of certain stock that a publicly-traded corporation repurchases occurring after December 31, 2022. To calculate the net value of a certain stock, the fair market value of the stock repurchased is reduced by the fair market value of the stock issued or provided to employees during that tax year. We do not anticipate the repurchase of stock in 2023, but would need to consider this excise tax if repurchases occur. On March 27, 2020, former President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. We assessed all provisions of the CARES Act and determined that two provisions needed further analysis to determine the impact to our business. First, the TCJA simplified the definition of "qualified improvement property" and removed the 15-year life for cost recovery, resulting in a 39-year life which excluded the assets from being eligible for bonus depreciation. The CARES Act reinstated the 15-year recovery period effective as if it had been included in the TCJA, making the change applicable to property placed in service after December 31, 2017. After performing our assessment, we concluded that this provision had no impact to our financial statements. Second, the TCJA eliminated the two-year carryback period and provided for indefinite carryforward of net operating losses against future tax periods, with the future deduction limited to 80% of taxable income before consideration of net operating loss deduction. The CARES Act amended the law for net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021. Net operating losses generated by a corporation during these taxable years now have a five-year carryback period. In addition, these losses can be carried forward to future taxable years without being subject to the 80% limitation. As a result of the CARES Act, we were able to convert potential deferred tax assets related to net operating losses to a current receivable, generating a $12,566,000 tax benefit for difference in tax rate. The Company’s initial assessment at June 30, 2020 was a tax benefit of $5,263,000. The additional benefit stemmed from 2020 operations. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2022, 2021 or 2020. (o) Advertising Costs We expense all advertising costs as an operating expense when we incur those costs. For the years ended December 31, 2022, 2021 and 2020, we incurred advertising costs of $716,000, $910,000, and $1,212,000, respectively. (p) Earnings Per Share (EPS) We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net loss attributable to UIHC common stockholders (net loss less the net income (loss) attributable to NCI) by the weighted-average number of shares of common stock outstanding during the period. We calculate diluted earnings per share using the Treasury method by dividing net loss attributable to UIHC common stockholders by the weighted-average number of shares of common stock, common stock equivalents, and restricted shares outstanding during the period. Common share equivalents are only included when they are dilutive. (q) Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily property insurance policies; • a concentration of revenue because we source 100% of our commercial lines business from AmRisc, LLC; • a geographic concentration resulting from the fact that, though we operated in several states historically, 100% of our commercial lines business is now in Florida and 100% of our personal lines business is now in New York. • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions; and • a concentration of credit risk with regard to our cash, because we choose to deposit all of our cash at five financial institutions. We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to our cash balances held at financial institutions, we had $197,917,000 and $254,989,000 in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits at December 31, 2022 and 2021, respectively. (r) Managing General Agent Fees and Policy Fees Our policy fees consist of the managing general agent (MGA) fee and a pay-plan fee. We defer MGA fees as unearned revenue and recognize revenue on a pro rata basis over the term of the underlying policies. We record pay-plan fees, which are charged to all policyholders that pay premium in more than one installment, as income when collected. We report all policy-related fees as other revenue on our Consolidated Statements of Comprehensive Loss. (s) Reinsurance We follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, ceded unearned premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our ceded unearned premiums over the 12-month contract period. We record provisional ceding commissions that we receive in connection with our reinsurance contracts for the 2022, 2021 and 2020 underwriting years as an offset to deferred acquisitions costs. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. As of December 31, 2022 and December 31, 2021, our ending credit loss allowance related to reinsurance recoverables was $603,000, and $563,000, respectively. (t) Assessments We record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2022, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to FIGA's 0.7% assessment, described below, and is recoupable from policyholders. During 2021, we received an assessment notice from FIGA. This assessment will be 0.7% on the direct written premium of all Florida lines of business during 2022. In addition, during 2021, we received an assessment notice from the Louisiana Insurance Guaranty Association (LIGA). LIGA is assessing property and casualty insurers $100,000,000 to cover the cost of two regional insurance companies facing insolvency. This assessment was 1% of 2020 and 2021 direct written premiums, totaling $988,000 and $899,000, respectively. While this assessment is recoupable over 10 years in the form of tax credits, we do not anticipate recouping this assessment after our 2022 premium tax return, as we will no longer write business in the state of Louisiana. (u) Accounting Pronouncements Recently Adopted Policies In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (ASU 2019-12). This update enhances and simplifies various aspects of the income tax guidance, including intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We adopted this guidance as of January 1, 2021. The newly adopted guidance did not have a material impact on our consolidated financial statements and related disclosures. Pending Policies |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | 3) SEGMENT REPORTING Our reportable segments, while in the same industry, experienced differences in loss patterns and profitability during 2021, which led to a shift in how our CODM views these segments. In addition, the underwriting restrictions for our personal lines and commercial lines vary as we have experienced differences in the frequency, severity, and type of losses for each of these segments. Personal Lines Business Our personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through our subsidiaries UPC and IIC. Personal residential products are offered in all states in which we write business. We include coverage to policyholders for loss or damage to dwellings, detached structures or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We have developed a unique and proprietary homeowners’ product. This product uses a granular approach to pricing for catastrophe perils. We have focused on using independent agencies as a channel of distribution for our personal lines business. As of December 31, 2022, one agency, Allstate, represents more than 10% of our personal lines revenue. All of our personal lines business is managed internally. Commercial Lines Business Our commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through our subsidiary ACIC. We include coverage to policyholders for loss or damage to buildings, inventory or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We also wrote commercial residential coverage through our subsidiary JIC, in South Carolina and Texas. Effective June 1, 2022 JIC was merged into ACIC, with ACIC being the surviving entity. As a result, the commercial residential policies originally written by JIC will not be renewed effective May 31, 2022. All of our commercial lines business is administered by an outside managing general underwriter, AmRisc, LLC (AmRisc). This includes handling the underwriting, claims processing and premium collection related to our commercial business. In return, AmRisc is reimbursed through monthly management fees. International Catastrophe Insurance Managers (ICAT) handles the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and is also reimbursed through monthly management fees. In 2022, the Company terminated its agreement with ICAT. Termination of this agreement was effective May 31, 2022. Please note the following similarities pertaining to the accounting and transactions of our operating segments for the years ended December 31, 2022, 2021 and 2020: • Both operating segments follow the accounting policies outlined in Note 2 ; • Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the years ended December 31, 2022 and 2021, and the receipt of HCI common stock during the three months ended March 31, 2021, in connection with our Northeast Renewal Agreement. The tables below presents the information for each of the reportable segments profit or loss as well as segment assets for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 508,243 $ 615,820 $ — $ 1,124,063 Change in gross unearned premiums (44,029) 143,149 — 99,120 Gross premiums earned 464,214 758,969 — 1,223,183 Ceded premiums earned (245,293) (515,264) — (760,557) Net premiums earned 218,921 243,705 — 462,626 Net investment income 5,861 8,097 53 14,011 Net realized losses (6,511) (25,571) — (32,082) Net unrealized losses on equity securities (1,966) (4,617) (2) (6,585) Other revenue 1,178 16,271 3 17,452 Total revenues 217,483 237,885 54 455,422 EXPENSES: Losses and loss adjustment expenses 87,143 550,504 — 637,647 Policy acquisition costs 80,996 75,093 — 156,089 Operating expenses 3,926 39,270 436 43,632 General and administrative expenses (2) 9,579 52,318 1,420 63,317 Interest expense — 131 9,482 9,613 Total expenses 181,644 717,316 11,338 910,298 Income (loss) before other income 35,839 (479,431) (11,284) (454,876) Other income (loss) 2 (1,722) 12,115 10,395 Income (loss) before income taxes $ 35,841 $ (481,153) 831 (444,481) Provision for income taxes 25,485 25,485 Net loss $ (24,654) $ (469,966) Less: Net loss attributable to noncontrolling interests (111) (111) Net loss attributable to UIHC $ (24,543) $ (469,855) Loss ratio, net (3) (4) 39.8 % 225.9 % 137.8 % Expense ratio (3) (5) 43.2 % 68.4 % 56.9 % Combined ratio (3) (6) 83.0 % 294.3 % 194.7 % Total segment assets $ 1,588,385 $ 1,284,999 $ (35,888) $ 2,837,496 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $19,299,000 and $3,246,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. Personal lines depreciation and amortization expenses includes $13,569,000 related to the impairment of goodwill. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Year Ended December 31, 2021 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 422,238 $ 907,207 $ — $ 1,329,445 Change in gross unearned premiums (11,975) 90,973 — 78,998 Gross premiums earned 410,263 998,180 — 1,408,443 Ceded premiums earned (237,056) (581,626) — (818,682) Net premiums earned 173,207 416,554 — 589,761 Net investment income 4,764 8,962 46 13,772 Net realized gains (losses) (34) 3,601 — 3,567 Net unrealized gains on equity securities 1,471 1,766 — 3,237 Other revenue — 24,190 — 24,190 Total revenues 179,408 455,073 46 634,527 EXPENSES: Losses and loss adjustment expenses 54,718 367,416 — 422,134 Policy acquisition costs 80,198 93,376 — 173,574 Operating expenses 4,873 51,004 380 56,257 General and administrative expenses (2) 7,599 47,927 1,686 57,212 Interest expense — 89 9,302 9,391 Total expenses 147,388 559,812 11,368 718,568 Income (loss) before other income 32,020 (104,739) (11,322) (84,041) Other income 1 183 — 184 Income (loss) before income taxes $ 32,021 $ (104,556) (11,322) (83,857) Benefit for income taxes (23,989) (23,989) Net income (loss) $ 12,667 $ (59,868) Less: Net loss attributable to noncontrolling interests (1,949) (1,949) Net income (loss) attributable to UIHC $ 14,616 $ (57,919) Loss ratio, net (3) (4) 31.6 % 88.2 % 71.6 % Expense ratio (3) (5) 53.5 % 46.2 % 48.7 % Combined ratio (3) (6) 85.1 % 134.4 % 120.3 % Total segment assets $ 1,011,562 $ 1,234,875 $ 452,136 $ 2,698,573 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $7,419,000 and $3,397,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses . (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Year Ended December 31, 2020 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 393,263 $ 1,063,600 $ — $ 1,456,863 Change in gross unearned premiums (3,456) (46,427) — (49,883) Gross premiums earned 389,807 1,017,173 — 1,406,980 Ceded premiums earned (194,477) (446,840) — (641,317) Net premiums earned 195,330 570,333 — 765,663 Net investment income 7,882 15,723 520 24,125 Net realized gains 23,760 37,960 4,971 66,691 Net unrealized losses on equity securities (9,506) (15,244) (2,812) (27,562) Other revenue 1 17,738 — 17,739 Total revenues 217,467 626,510 2,679 846,656 EXPENSES: Losses and loss adjustment expenses 92,097 516,219 — 608,316 Policy acquisition costs 98,276 137,726 — 236,002 Operating expenses 3,440 49,255 181 52,876 General and administrative expenses (2) 7,685 58,385 5,987 72,057 Interest expense 28 89 9,465 9,582 Total expenses 201,526 761,674 15,633 978,833 Income (loss) before other income 15,941 (135,164) (12,954) (132,177) Other income 7 67 — 74 Income (loss) before income taxes $ 15,948 $ (135,097) (12,954) (132,103) Benefit for income taxes (36,605) (36,605) Net income (loss) $ 23,651 $ (95,498) Less: Net income attributable to noncontrolling interests 956 956 Net income (loss) attributable to UIHC $ 22,695 $ (96,454) Loss ratio, net (3) (4) 47.1 % 90.5 % 79.4 % Expense ratio (3) (5) 56.0 % 43.0 % 47.1 % Combined ratio (3) (6) 103.1 % 133.5 % 126.5 % Total segment assets $ 939,691 $ 1,369,797 $ 539,453 $ 2,848,941 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items, as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $7,664,000 and $3,264,000 of depreciation and amortization expense related to our personal and commercial assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2022 and 2021: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 U.S. government and agency securities $ 34,116 $ — $ 105 $ 34,011 Foreign government 1,339 — 9 1,330 States, municipalities and political subdivisions 55,842 2 4,065 51,779 Public utilities 15,930 — 1,242 14,688 Corporate securities 157,354 19 15,739 141,634 Mortgage-backed securities 109,100 — 9,136 99,964 Asset-backed securities 34,905 9 2,788 32,126 Redeemable preferred stocks 931 — — 931 Total fixed maturities $ 409,517 $ 30 $ 33,084 $ 376,463 December 31, 2021 U.S. government and agency securities $ 50,373 $ 293 $ 1,326 $ 49,340 Foreign government 3,383 84 8 3,459 States, municipalities and political subdivisions 80,385 592 1,081 79,896 Public utilities 26,103 164 810 25,457 Corporate securities 246,933 2,303 4,793 244,443 Mortgage-backed securities 190,383 554 4,197 186,740 Asset-backed securities 70,569 116 523 70,162 Redeemable preferred stocks 4,010 106 11 4,105 Total fixed maturities $ 672,139 $ 4,212 $ 12,749 $ 663,602 Equity securities are summarized as follows at: December 31, 2022 December 31, 2021 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 35,485 91.0 % $ 33,064 87.1 % Public utilities 551 1.4 — — Non-redeemable preferred stocks 2,984 7.6 4,894 12.9 Total equity securities $ 39,020 100.0 % $ 37,958 100.0 % When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Gains Fair Value at Sale Gains Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 725 $ 86,532 $ 2,112 $ 221,597 $ 32,460 $ 678,736 Equity securities — — 5,569 12,116 38,325 131,178 Short-term investments — 90 — 33,485 — 1,346 Total realized gains 725 86,622 7,681 267,198 70,785 811,260 Fixed maturities (1) (32,730) 163,990 (4,050) 220,809 (478) 16,552 Equity securities (77) 750 (18) 575 (3,602) 13,805 Short-term investments — — (46) 35,975 (14) 1,258 Total realized losses (32,807) 164,740 (4,114) 257,359 (4,094) 31,615 Net realized investment gains (losses) $ (32,082) $ 251,362 $ 3,567 $ 524,557 $ 66,691 $ 842,875 (1) Includes impairment losses realized of $22,718,000 for the year ended December 31, 2022. The table below summarizes our fixed maturities at December 31, 2022 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations. December 31, 2022 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 21,362 5.2 % $ 21,301 5.7 % Due after one year through five years 126,685 30.9 % 122,337 32.5 % Due after five years through ten years 109,016 26.6 % 93,142 24.7 % Due after ten years 8,449 2.1 % 7,593 2.0 % Asset and mortgage-backed securities 144,005 35.2 % 132,090 35.1 % Total $ 409,517 100.0 % $ 376,463 100.0 % The following table summarizes our net investment income by major investment category: Year Ended December 31, 2022 2021 2020 Fixed maturities $ 9,482 $ 12,884 $ 21,789 Equity securities 914 695 2,155 Cash and cash equivalents 3,326 280 1,329 Other investments 1,018 63 975 38 Other assets 26 24 178 Investment income 14,766 14,858 25,489 Investment expenses (755) (1,086) (1,364) Net investment income $ 14,011 $ 13,772 $ 24,125 Portfolio monitoring We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss. During the year-ended December 31, 2022, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at December 31, 2022. The issuers of our debt security investments continue to make interest payments on a timely basis. However, during the year ended December 31, 2022, management determined that it was more likely than not that we would be required to sell a portion of our fixed-income securities attributable to our personal lines operating segment before recovery of their amortized cost basis. As a result, we realized impairment losses of $22,718,000 on these securities. Total shareholders’ equity (deficit) was not impacted by such charge; however, our net loss for the year ended December 31, 2022 worsened and other comprehensive income improved by $22,718,000 in offsetting amounts. We do not intend to sell, nor is it likely that we would be required to sell our remaining debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments. The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities (1) Gross Unrealized Losses Fair Value Number of Securities (1) Gross Unrealized Losses Fair Value December 31, 2022 U.S. government and agency securities 3 $ 105 $ 2,385 — $ — $ — Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 21 540 7,306 31 3,525 18,853 Public utilities 8 193 2,286 4 1,049 5,408 Corporate securities 78 2,279 24,594 77 13,460 57,765 Mortgage-backed securities 48 1,282 15,259 80 7,854 40,856 Asset backed securities 16 795 6,397 46 1,993 19,028 Total fixed maturities 175 $ 5,203 $ 59,218 238 $ 27,881 $ 141,910 December 31, 2021 U.S. government and agency securities 39 $ 971 $ 32,167 15 $ 355 $ 8,126 Foreign governments 1 8 2,010 — — — States, municipalities and political subdivisions 63 761 41,670 8 320 11,423 Public utilities 14 346 12,719 7 464 7,708 Corporate securities 205 4,589 158,959 12 204 7,896 Mortgage-backed securities 138 2,638 111,636 37 1,559 41,786 Asset-backed securities 111 493 60,566 2 30 1,596 Redeemable preferred stocks 1 2 90 1 9 91 Total fixed maturities 572 $ 9,808 $ 419,817 82 $ 2,941 $ 78,626 (1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands. Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities. We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on December 31, 2022 and 2021. Changes in interest rates subsequent to December 31, 2022 may affect the fair value of our investments. The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience. Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income loss on our Consolidated Balance Sheet as of December 31, 2022. The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2022 and 2021: Total Level 1 Level 2 Level 3 December 31, 2022 U.S. government and agency securities $ 34,011 $ — $ 34,011 $ — Foreign government 1,330 — 1,330 — States, municipalities and political subdivisions 51,779 — 51,779 — Public utilities 14,688 — 14,688 — Corporate securities 141,634 — 141,634 — Mortgage-backed securities 99,964 — 99,964 — Asset-backed securities 32,126 — 32,126 — Redeemable preferred stocks 931 359 572 — Total fixed maturities 376,463 359 376,104 — Mutual funds 35,485 20,615 14,870 — Public utilities 551 551 — — Non-redeemable preferred stocks 2,984 2,984 — — Total equity securities 39,020 24,150 14,870 — Other investments (1) 444 300 144 — Total investments $ 415,927 $ 24,809 $ 391,118 $ — December 31, 2021 U.S. government and agency securities $ 49,340 $ — $ 49,340 $ — Foreign government 3,459 — 3,459 — States, municipalities and political subdivisions 79,896 — 79,896 — Public utilities 25,457 — 25,457 — Corporate securities 244,443 — 244,443 — Mortgage-backed securities 186,740 — 186,740 — Asset-backed securities 70,162 — 70,162 — Redeemable preferred stocks 4,105 535 3,570 — Total fixed maturities 663,602 535 663,067 — Mutual Funds 33,064 24,652 8,412 — Non-redeemable preferred stocks 4,894 4,894 — — Total equity securities 37,958 29,546 8,412 — Other investments (1) 381 300 81 — Total investments $ 701,941 $ 30,381 $ 671,560 $ — (1) Other long-term investments included in the fair value hierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at December 31, 2022 and 2021. The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2022 and 2021, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of the notes payable to the Florida State Board of Administration, Truist Financial Corporation (Truist), and our senior notes approximate fair value as the interest rates and terms are variable. We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During 2022, we transferred no investments between levels. For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs. Other investments We acquired investments in limited partnerships, recorded in the other investments line of our Consolidated Balance Sheets and these investments are currently being accounted for at fair value utilizing a net asset value per share equivalent methodology. The information presented in the table below is as of December 31, 2022 and 2021: Book Value Unrealized Gain Unrealized Loss Fair Value December 31, 2022 Limited partnership investments (1) $ 16,133 $ 1,590 $ 1,539 $ 16,184 Certificates of deposit 300 — — 300 Short-term investments 145 — 1 144 Total other investments $ 16,578 $ 1,590 $ 1,540 $ 16,628 December 31, 2021 Limited partnership investments (1) $ 16,750 $ 1,401 $ 526 $ 17,625 Certificates of deposit 300 — — 300 Short-term investments 81 — — 81 Total other investments $ 17,131 $ 1,401 $ 526 $ 18,006 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years. Restricted Cash We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions. The following table presents the components of restricted assets: December 31, 2022 2021 Trust funds $ 48,363 $ 32,211 Cash on deposit (regulatory deposits) 5,354 1,043 Total restricted cash $ 53,717 $ 33,254 In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Consolidated Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators. December 31, 2022 2021 Invested assets on deposit (regulatory deposits) $ 3,997 $ 2,885 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic EPS is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the vesting of outstanding restricted stock awards, restricted stock units, performance stock units and stock options. The following table shows the computation of basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020: Year Ended 2022 2021 2020 Numerator: Net loss attributable to UIHC common stockholders $ (469,855) $ (57,919) $ (96,454) Denominator: Weighted-average shares outstanding 43,052,070 42,948,850 42,864,166 Effect of dilutive securities — — — Weighted-average diluted shares 43,052,070 42,948,850 42,864,166 Earnings available to UIHC common stockholders per share Basic $ (10.91) $ (1.35) $ (2.25) Diluted $ (10.91) $ (1.35) $ (2.25) |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS At December 31, 2022, our insurance subsidiary UPC was determined to have a premium deficiency. As a result, we expensed $20,173,000 in deferred policy acquisition costs, which was the excess of what we expect to recovery. This expense is captured in the table below. We anticipate that all remaining deferred policy acquisition costs will be fully recoverable in the near term. The table below depicts the activity with regard to deferred policy acquisition costs: 2022 2021 Balance at January 1 $ 38,520 $ 74,414 Policy acquisition costs deferred 210,375 249,565 Amortization (252,465) (274,405) Unearned ceding commission 62,503 (11,054) Balance at December 31 $ 58,933 $ 38,520 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: Year Ended 2022 2021 Land $ — $ 2,114 Building and building improvements — 9,211 Computer hardware and software (software in progress of $82 and $990, respectively) 29,760 40,358 Office furniture and equipment 1,414 3,067 Leasehold improvements 753 753 Leased vehicles (1) 1,080 2,308 Total, at cost 33,007 57,811 Less: accumulated depreciation and amortization (13,416) (26,250) Property and equipment, net $ 19,591 $ 31,561 (1) Includes vehicles under financing leases. See Note 12 of these Notes to Consolidated Financial Statements for further information on leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying amount of goodwill at December 31, 2022 was $59,476,000. The carrying amount of goodwill at December 31, 2021 and 2020 was $73,045,000. For the 2022 annual goodwill impairment tests we utilized the quantitative assessment for our commercial lines reporting segment, determining that the goodwill was not impaired for the reporting segment. During the third quarter of 2022, as a result of the strategic decision to place UPC into an orderly runoff, we recognized an impairment of our personal lines reporting segment’s goodwill totaling $13,569,000. We completed our most recent goodwill impairment testing during the fourth quarter and determined that there was no additional impairment in the value of the asset as of December 31, 2022 . Goodwill allocated to our commercial lines reporting segment was $59,476,000 at December 31, 2022 . There was no goodwill allocated to our personal lines reporting segment at December 31, 2022 . Goodwill allocated to our personal lines and commercial lines reporting segments was $13,569,000 and $59,476,000, respectively, at both December 31, 2021 and 2020. There was no additional goodwill acquired or disposed of during the years ended December 31, 2022, 2021 and 2020 . Accumulated impairment related to goodwill was $13,569,000 at December 31, 2022 . There was no accumulated impairment related to goodwill at December 31, 2021 and 2020 . Intangible Assets The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at: December 31, 2022 December 31, 2021 Intangible assets subject to amortization $ 11,371 $ 14,618 Indefinite-lived intangible assets (1) 1,398 3,757 Total $ 12,769 $ 18,375 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. Intangible assets subject to amortization consisted of the following: Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2022 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.3 34,661 (24,301) 10,360 Trade names acquired 1.3 6,381 (5,370) 1,011 Total $ 83,830 $ (72,459) $ 11,371 2021 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 5.3 34,661 (21,863) 12,798 Trade names acquired 2.3 6,381 (4,561) 1,820 Total $ 83,830 $ (69,212) $ 14,618 No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the years ended December 31, 2022 and 2021, however, during the year ended December 31, 2022, we disposed of intangible assets totaling $2,359,000. Amortization expense of our intangible assets was $3,247,000, $3,555,000 and $4,267,000 for the years ended December 31, 2022 , 2021 and 2020, respectively. Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2023 $ 3,246 2024 2,640 2025 2,438 2026 2,438 2027 609 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophes. Our program provides reinsurance protection for catastrophes including hurricanes and tropical storms. These reinsurance agreements are part of our catastrophe management strategy, which is intended to provide our stockholders an acceptable return on the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders. Although reinsurance agreements contractually obligate our reinsurers to reimburse us for the agreed-upon portion of our gross paid losses, they do not discharge our primary liability. Our program includes excess of loss, aggregate excess of loss and quota share treaties. Our catastrophe reinsurance program, in effect from June 1, 2022 through May 31, 2023, provides coverage for catastrophe losses from named or numbered windstorms and earthquakes up to an exhaustion point of approximately $2,500,000,000 in the aggregate. Under our core catastrophe excess of loss treaty, retention on a first and second event is $16,400,000 each. During the third quarter, one of the our reinsurer's participating on the $25,000,000 excess of $20,000,000 layer of the core catastrophe program exercised a contractual right to terminate their participation due to Demotech's downgrade of UPC's Financial Stability Rating. We were unsuccessful in replacing this coverage in the open market so our captive reinsurer, UPC Re, stepped into the $25,000,000 excess of $20,000,000 layer which was subsequently impacted by Hurricane Ian resulting in an additional retained loss of $20,100,000. The exhaustion point of IIC's catastrophe reinsurance program is approximately $200,000,000 in the aggregate, with a retention of $3,000,000 per occurrence, covering all perils. During the third quarter of 2022, the Company's core catastrophe reinsurance program was impacted by Hurricane Ian. As a result, the Company has approximately $508 million of occurrence limit remaining for Ian, all of which is attributable to ACIC only. After reinstatement premiums of approximately $15.4 million, the Company has approximately $993 million of aggregate limit remaining after Ian, based on our estimated ultimate net loss subject to the core catastrophe reinsurance program. Effective December 13, 2021, we renewed our all other perils catastrophe excess of loss agreement. The agreement provides protection from catastrophe loss events other than named windstorms and earthquakes up to $110,000,000. During the third quarter of 2022, one of our private reinsurers who held a 100% share of the $15,000,000 in excess of $15,000,000 layer on our all other perils catastrophe excess of loss agreement notified us of their intent to terminate the agreement due to the contractual provision regarding the change in UPC's statutory surplus being greater than 25%. We agreed to a termination and commutation date of August 22, 2022 for this contract. This change resulted in approximately $1,300,000 of ceded premium savings that would have otherwise been due in the fourth quarter of 2022 and the Company retaining all the risk for any non-hurricane catastrophe losses up to $30,000,000, excluding any quota share recoveries. The table below outlines our quota share agreements in effect for the years ended December 31, 2022 and 2021. Reinsurer Companies in Scope (1) Effective Dates Cession Rate States in Scope External third-party UPC, FSIC & ACIC 06/01/2022 - 06/01/2023 10% (2) Florida, Louisiana, Texas TypTap UPC 06/01/2022 - 06/01/2023 100% (3) Georgia, North Carolina, South Carolina External third-party UPC, FSIC & ACIC 12/31/2021 - 12/31/2022 8% (2) Florida, Louisiana, Texas HCPCI UPC 12/31/2021 - 06/01/2022 85% Georgia, North Carolina, South Carolina External third-party UPC & FSIC 12/31/2021 - 12/31/2022 25% (4) Florida, Louisiana, Texas HCPCI / TypTap (5) UPC 06/01/2021 - 06/01/2022 100% (3) Connecticut, New Jersey, Massachusetts, Rhode Island External third-party UPC, FSIC & ACIC (6) 06/01/2021 - 06/01/2022 15% (2) Florida, Georgia, Louisiana, North Carolina, South Carolina, Texas IIC UPC 12/31/2020 - 12/31/2022 100% New York HCPCI UPC 12/31/2020 - 06/01/2021 69.5% Connecticut, New Jersey, Massachusetts, Rhode Island External third-party UPC, FSIC & ACIC 12/30/2020 - 12/31/2021 8% (2) Connecticut, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas External third-party UPC, FSIC & ACIC (6) 06/01/2020 - 06/01/2021 15% (2) Connecticut, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas External third-party UPC & FSIC 06/01/2020 - 06/01/2021 7.5% (2) Connecticut, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, Texas (1) Effective May 31, 2022, FSIC was merged into UPC, with UPC being the surviving entity. (2) This treaty provides coverage for all catastrophe perils and attritional losses incurred. For all catastrophe perils, the quota share agreement provides ground-up protection effectively reducing our retention for catastrophe losses. (3) This treaty provides coverage on our in-force, new and renewal policies until these states are transitioned to HCPCI or TypTap upon renewal. (4) This treaty provides coverage on non-catastrophe losses on policies in-force on the effective date of the agreement. (5) Cessions are split 50% to HCPCI and 50% to TypTap. (6) This treaty was amended effective December 31, 2020 to include ACIC. Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2022 2021 Reinsurance recoverable on unpaid losses and LAE $ 1,431,000 $ 749,600 Reinsurance recoverable on paid losses and LAE 200,408 247,520 Reinsurance recoverable (1) $ 1,631,408 $ 997,120 (1) Our reinsurance recoverable balance is net of our allowance for expected credit losses. More information related to this allowance can be found in Note 13 . We write the majority of flood insurance under an agreement with the National Flood Insurance Program. We cede 100% of the premiums written and the related risk of loss to the federal government. We earn commissions for the issuance of flood policies based upon a fixed percentage of net written premiums and the processing of flood claims based upon a fixed percentage of incurred losses, and we can earn additional commissions by meeting certain growth targets for the number of in-force policies. We recognized commission revenue from our flood program of $919,000, $1,501,000, and $1,467,000 for the years ended December 31, 2022, 2021 and 2020, respectively. On June 9, 2022, we entered into a renewal rights agreement with Wright National Flood Insurance Company to sell our entire NFIP Write Your Own flood insurance business. The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Loss: Year ended December 31, 2022 2021 2020 Premium written: Direct $ 1,123,537 $ 1,329,129 $ 1,411,558 Assumed 526 316 45,305 Ceded (542,954) (864,725) (755,871) Net premium written $ 581,109 $ 464,720 $ 700,992 Change in unearned premiums: Direct $ 98,478 $ 59,547 $ (66,483) Assumed 642 19,451 16,600 Ceded (217,603) 46,043 114,554 Net decrease (increase) $ (118,483) $ 125,041 $ 64,671 Premiums earned: Direct $ 1,222,015 $ 1,388,676 $ 1,345,075 Assumed 1,168 19,767 61,905 Ceded (760,557) (818,682) (641,317) Net premiums earned $ 462,626 $ 589,761 $ 765,663 Losses and LAE incurred: Direct $ 2,389,152 $ 1,319,606 $ 1,186,401 Assumed 6,689 13,969 67,119 Ceded (1,758,194) (911,441) (645,204) Net losses and LAE incurred $ 637,647 $ 422,134 $ 608,316 Ceded losses incurred increased by $846,753,000 during the year ended December 31, 2022, compared to the year ended December 31, 2021, primarily as a result of Hurricane Ian, which made landfall in Florida as a category four hurricane. We have billed and received reinsurance recoveries for losses that we incurred on this activity and expect to receive additional recoveries during 2023. The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2022 2021 2020 Unpaid losses and LAE: Direct $ 1,942,612 $ 1,062,567 $ 1,042,994 Assumed 4,326 21,883 46,972 Gross unpaid losses and LAE 1,946,938 1,084,450 1,089,966 Ceded (1,431,000) (749,600) (674,746) Net unpaid losses and LAE $ 515,938 $ 334,850 $ 415,220 Unearned premiums: Direct $ 545,587 $ 644,065 $ 703,612 Assumed 233 875 20,326 Gross unearned premiums 545,820 644,940 723,938 Ceded (213,028) (430,631) (384,588) Net unearned premiums $ 332,792 $ 214,309 $ 339,350 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expense | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure | ABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE) We generally use the term loss(es) to collectively refer to both loss and LAE. We establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future. Our policy is to establish these loss reserves after considering all information known to us at each reporting period. At any given point in time, our loss reserve represents our best estimate of the ultimate settlement and administration cost of our insured claims incurred and unpaid. Since the process of estimating loss reserves requires significant judgment due to a number of variables, such as fluctuations in inflation, judicial decisions, legislative changes and changes in claims handling procedures, our ultimate liability will likely differ from these estimates. We revise our reserve for unpaid losses as additional information becomes available, and reflect adjustments, if any, in our earnings in the periods in which we determine the adjustments are necessary. General Discussion of the Loss Reserving Process Reserves for unpaid losses fall into two categories: case reserves and reserves for claims incurred but not reported. • Case reserves - When a claim is reported, we establish an automatic minimum case reserve for that claim type that represents our initial estimate of the losses that will ultimately be paid on the reported claim. Our initial estimate for each claim is based upon averages of loss payments for our prior closed claims made for that claim type. Then, our claims personnel perform an evaluation of the type of claim involved, the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary. As claims mature, we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss, the results of on-site reviews and any other information we gather while reviewing the claims. • Reserves for losses incurred but not reported (IBNR reserves) - Our IBNR reserves include true IBNR reserves plus “bulk” reserves. Bulk reserves represent additional amounts that cannot be allocated to particular claims, but which are necessary to estimate ultimate losses on reported and unreported claims. We estimate our IBNR reserves by projecting the ultimate losses using the methods discussed below and then deducting actual loss payments and case reserves from the projected ultimate losses. We review and adjust our IBNR reserves on a quarterly basis based on information available to us at the balance sheet date. When we establish our reserves, we analyze various factors such as our historical loss experience and that of the insurance industry, claims frequency and severity, our business mix, our claims processing procedures, legislative enactments, judicial decisions and legal developments in imposition of damages, and general economic conditions, including inflation. A change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves, and the difference could be material. Due to the interaction of the aforementioned factors, there is no precise method for evaluating the impact of any one specific factor in isolation, and an element of judgment is ultimately required. Due to the uncertain nature of any projection of the future, the ultimate amount we will pay for losses will be different from the reserves we record. However, in our judgment, we employ techniques and assumptions that are appropriate, and the resulting reserve estimates are reasonable, given the information available at the balance sheet date. To determine our ultimate losses, we first use multiple actuarial techniques to establish a range of reasonable estimates. These techniques are in line with actuarial standards of practice and actuarial literature. A brief overview of each of these techniques is provided below. We then make additional qualitative considerations for many of the previously mentioned factors and select a point within this range. These ultimate loss estimates include reserves for both reported and unreported claims. Estimation of the Reserves for Unpaid Losses and Allocated LAE We calculate our estimate of ultimate losses with the following actuarial methods. The methods are applied to paid and incurred loss data. Incurred losses are defined as paid losses plus case reserves. For our loss reserving process, the word “segment” refers to a subgrouping of our claims data, such as by geographic area and/or by particular line of business; it does not refer to operating segments. • Development Method - The development method is based upon the assumption that the relative change in a given year’s loss estimates from one evaluation point to the next is similar to the relative change in prior years’ reported loss estimates at similar evaluation points. In utilizing this method, actual annual historical loss data is evaluated. Loss development factors (LDFs) are calculated to measure the change in cumulative losses from one evaluation point to the next. These historical LDFs and comparable industry benchmark factors form the basis for selecting the LDFs used in projecting the current valuation of losses to an ultimate basis. When applied to incurred loss data, the implicit assumption is that the relative adequacy of case reserves has been consistent over time, and that there have been no material changes in the rate at which claims have been reported. Applying this method to paid losses avoids potential distortions in the data due to changes in case reserving methodology, but also loses any potentially useful information contained in the current case reserves. The paid development method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time. • Expected Loss Method - Ultimate loss projections are based upon a prior measure of the anticipated losses, usually relative to a measure of exposure (such as earned house years). An expected loss cost is applied to each year’s measure of exposure to determine estimated ultimate losses for that year. Actual losses are not considered in this calculation. Because the ultimate loss estimates do not change unless the exposures or loss costs change, this method has the advantage of being stable over time. However, the advantage of this stability is offset by a lack of responsiveness since this method does not consider actual loss experience as it emerges. This method assumes that the loss cost per unit of exposure is a good indication of ultimate losses. It can be entirely dependent on pricing assumptions (e.g., historical experience adjusted for loss trend). • Bornhuetter-Ferguson Method - The Bornhuetter-Ferguson (B-F) method is a credibility weighting procedure that blends the responsiveness of the Development Method with the stability of the Expected Loss Method by setting ultimate losses equal to actual losses plus the expected unreported losses which are based on the Expected Loss Method. As an experience year matures, actual losses gradually move closer to their ultimate levels so reliance on the Expected Loss Method can be reduced. • Paid-to-Paid Development Method - In addition to the aforementioned methods, we also rely upon the Paid-to-Paid Development Method to project ultimate unallocated loss adjustment expense (ULAE). Ratios of paid ULAE to paid loss and allocated loss adjustment expense are compiled by calendar year and a paid-to-paid ratio selection is made. The selected ratio is applied to the estimated IBNR amounts and one half of this ratio is applied to case reserves. This method is derived from rule of thumb that half of ULAE is incurred when a claim is opened and the other half is incurred over the remaining life of the claim. Reliance and Selection of Methods Each of these methods has its own strengths and weaknesses that depend upon the circumstances of the segment and the age of the claims experience we analyze. The nature of our book of business allows us to place substantial, but not exclusive, reliance on the loss development methods, and the selected LDFs, represent the most critical aspect of our loss reserving process. We use the same set of LDFs in the methods during our loss reserving process that we also use to calculate the premium necessary to pay expected ultimate losses. Reasonably-Likely Changes in Variables As previously noted, we evaluate several factors when exercising our judgment in the selection of the LDFs that ultimately drive the determination of our loss reserves. The process of establishing our reserves is complex and necessarily imprecise, as it involves using judgment that is affected by many variables. We believe a reasonably-likely change in almost any of these aforementioned factors could have an impact on our reported results, financial condition and liquidity. However, we do not believe any reasonably likely changes in the frequency or severity of claims would have a material impact on us. On an annual basis, our consulting actuary issues a statement of actuarial opinion that documents the actuary’s evaluation of the adequacy of our unpaid loss obligations under the terms of our policies. We review the analysis underlying the consulting actuary’s opinion and compare the projected ultimate losses to our own estimates to ensure that the reserve for unpaid losses recorded at each annual balance sheet date is based upon all internal and external factors related to known and unknown claims against us and to ensure our reserve is within guidelines promulgated by the National Association of Insurance Commissioners (NAIC). We maintain an in-house claims staff that monitors and directs all aspects of our claims process. We assign the fieldwork to our wholly-owned claims subsidiary, or to third-party claims adjusting companies, none of whom have the authority to settle or pay any claims on our behalf. The third-party claims adjusting companies conduct inspection of the damaged property and prepare initial estimates. We review the inspection reports and initial estimates to determine the amounts to be paid to the policyholder in accordance with the terms and conditions of the policy in effect at the time that the policyholder incurs the loss. We maintain strategic relationships with multiple claims adjusting companies that we can engage should we need additional non-catastrophe claims servicing capacity. We believe the combination of our internal resources and relationships with external claims servicing companies provide an adequate level of claims servicing in the event catastrophes affect our policyholders. The following is information about incurred claims development and paid claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liability plus expected development on reported claims included within the net incurred claims amounts. The incurred claims development and paid claims development data reflect the acquisitions of FSIC, IIC, and AmCo in February 2015, April 2016, and April 2017, respectively, on a retrospective basis (includes FSIC, IIC and AmCo data for years prior to our acquisition of the insurance affiliates). The information about incurred claims development and paid claims development for the years ended December 31, 2013 to 2021 is presented as supplementary information. During 2019, three of our insurance subsidiaries, UPC, FSIC and ACIC, entered into an intercompany property and casualty reinsurance pooling arrangement. Under this arrangement, the participating companies share substantially all business that is written and allocate the combined premiums, losses and expenses. The Company performed an analysis and concluded that the nature of our claims cash flows and development patterns, along with the structure of our reinsurance program, are similar among all products. In addition, effective January 1, 2022, this agreement was terminated. In prior years, we have elected to disclose one single property and casualty homeowners’ insurance table. With the change to disclosing two reporting segments in 2021, we began providing disclosures for each of our reporting segments separately. Personal Lines Operating Segment $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2022 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Audited Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 105,118 $ 100,572 $ 98,442 $ 98,438 $ 98,649 $ 98,706 $ 99,187 $ 99,338 $ 99,464 $ 99,451 $ 11 8,893 2014 — 139,163 138,415 139,418 140,052 139,967 140,354 140,695 140,507 140,712 67 13,470 2015 — — 201,328 215,680 215,221 215,894 216,278 217,198 217,223 217,302 217 20,341 2016 — — — 267,124 269,283 271,207 271,795 273,797 275,142 275,316 528 31,129 2017 — — — — 261,689 273,512 280,048 288,161 295,511 297,468 1,812 83,534 2018 — — — — — 299,141 324,877 333,763 339,347 344,943 3,904 53,064 2019 — — — — — — 344,912 316,649 332,682 350,005 14,441 44,328 2020 — — — — — — — 484,372 452,090 526,579 28,642 57,085 2021 — — — — — — — — 313,527 326,446 47,388 57,485 2022 — — — — — — — — — 398,090 229,083 39,597 Total $ 2,976,312 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Audited 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 66,657 $ 89,842 $ 93,879 $ 96,193 $ 97,415 $ 97,945 $ 98,424 $ 98,666 $ 99,021 $ 99,040 2014 — 92,383 125,849 133,819 137,534 138,257 139,137 139,812 140,346 140,639 2015 — — 134,992 193,127 207,021 211,040 213,968 214,817 216,011 216,833 2016 — — — 183,238 248,852 261,089 267,015 268,953 271,536 272,567 2017 — — — — 177,516 251,530 263,657 275,698 286,362 293,474 2018 — — — — — 219,513 297,871 318,619 331,438 335,531 2019 — — — — — — 202,105 270,923 309,014 326,540 2020 — — — — — — — 244,512 414,666 479,639 2021 — — — — — — — — 146,582 259,094 2022 — — — — — — — — — 128,633 Total $ 2,551,990 All outstanding liabilities before 2013, net of reinsurance 204 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 424,526 The following is supplementary information about average historical claims duration as of December 31, 2022. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 58.0 % 27.2 % 8.2 % 3.1 % 1.4 % 1.0 % 0.5 % 0.3 % 0.3 % — % Commercial Lines Operating Segment $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2022 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Audited Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 8,359 $ 6,420 $ 11,826 $ 8,382 $ 7,573 $ 7,426 $ 7,263 $ 7,262 $ 7,328 $ 7,326 $ — 741 2014 — 15,845 15,752 16,311 16,816 16,070 15,602 15,604 15,618 15,611 — 680 2015 — — 16,504 20,379 24,563 26,614 26,332 26,910 28,350 28,680 275 821 2016 — — — 37,837 25,043 22,578 23,816 23,397 23,945 38,526 392 1,140 2017 — — — — 70,650 72,135 78,970 83,286 87,833 91,545 1,541 4,240 2018 — — — — — 61,778 64,964 69,203 68,384 84,727 295 3,669 2019 — — — — — — 76,515 70,515 68,900 41,424 1,878 5,175 2020 — — — — — — — 67,573 68,165 66,177 (6,017) 4,640 2021 — — — — — — — — 53,338 38,304 6,154 1,770 2022 — — — — — — — — — 65,255 53,640 1,401 Total $ 477,575 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Audited 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 2,958 $ 5,127 $ 5,317 $ 7,248 $ 7,254 $ 7,256 $ 7,262 $ 7,261 $ 7,327 $ 7,326 2014 — 6,379 9,452 13,212 14,420 15,336 15,460 15,475 15,606 15,611 2015 — — 10,188 17,134 20,640 22,978 23,605 25,269 27,303 28,024 2016 — — — 10,638 16,217 19,114 21,410 22,266 23,506 38,063 2017 — — — — 40,467 62,353 64,329 73,683 80,460 84,933 2018 — — — — — 27,852 54,551 61,885 66,848 82,443 2019 — — — — — — 38,428 57,041 62,133 34,768 2020 — — — — — — — 25,068 46,535 69,903 2021 — — — — — — — — 19,754 28,506 2022 — — — — — — — — — 7,742 Total $ 397,319 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 80,256 The following is supplementary information about average historical claims duration as of December 31, 2022. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 40.5 % 26.0 % 12.0 % (0.3) % 6.0 % 3.0 % 11.3 % 1.1 % 0.5 % — % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2022 2021 Net outstanding liabilities Personal Lines Operating Segment $ 424,526 $ 250,950 Commercial Lines Operating Segment 80,256 72,390 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 504,782 323,340 Reinsurance recoverable on unpaid claims Personal Lines Operating Segment 699,420 596,344 Commercial Lines Operating Segment 731,580 153,256 Total reinsurance recoverable on unpaid claims 1,431,000 749,600 Unallocated claims adjustment expenses 11,156 11,510 Total gross liability for unpaid claims and claims adjustment expense $ 1,946,938 $ 1,084,450 The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2022 2021 2020 Balance at January 1 $ 1,084,450 $ 1,089,966 $ 760,357 Less: reinsurance recoverable on unpaid losses 749,600 674,746 482,315 Net balance at January 1 $ 334,850 $ 415,220 $ 278,042 Incurred related to: Current year 525,011 394,278 615,102 Prior years 112,636 27,856 (6,786) Total incurred $ 637,647 $ 422,134 $ 608,316 Paid related to: Current year 188,374 202,202 320,389 Prior years 268,185 300,302 150,749 Total paid $ 456,559 $ 502,504 $ 471,138 Net balance at December 31 $ 515,938 $ 334,850 $ 415,220 Plus: reinsurance recoverable on unpaid losses 1,431,000 749,600 674,746 Balance at December 31 $ 1,946,938 $ 1,084,450 $ 1,089,966 Composition of reserve for unpaid losses and LAE: Case reserves $ 578,698 $ 384,393 $ 392,717 IBNR reserves 1,368,240 700,057 697,249 Balance at December 31 $ 1,946,938 $ 1,084,450 $ 1,089,966 Based upon our internal analysis and our review of the statement of actuarial opinion provided by our actuarial consultants, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. As reflected by our losses incurred related to prior years, adverse development experienced in 2022 was primarily the result of the strengthening of our reserves based on increased litigation related to claims being filed in the state of Florida. Current year losses incurred and reinsurance recoverable on unpaid losses increased in 2022 due to Hurricane Ian, which made landfall in Florida as a category four Hurricane. The severity of Hurricane Ian resulted in increased cessions to our core catastrophe program as well as the exhausting of our reinsurance coverage attributable to our personal lines operating segment, resulting in higher retained losses compared to 2021. The loss payments made during the year ended December 31, 2021 were higher than the year ended December 31, 2022, due to the settling of the claims related to the unprecedented frequency of catastrophe activity that took place in 2020, as well as the settlement of Hurricane Ida claims in 2021. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Long-Term Debt The table below presents all long-term debt outstanding as of December 31, 2022 and 2021: Effective Interest Rate Carrying Value at Maturity December 31, 2022 December 31, 2021 Senior Notes December 15, 2027 7.25% $ 150,000 $ 150,000 Florida State Board of Administration Note July 1, 2026 3.76% 4,118 5,294 Truist Term Note Payable (1) May 26, 2031 N/A — 3,265 Total long-term debt $ 154,118 $ 158,559 (1) Our Truist Term Note Payable was repaid in full on August 12, 2022. At December 31, 2022, the annual maturities of our long-term debt were as follows: Amount 2023 $ 1,176 2024 1,176 2025 1,176 2026 590 2027 150,000 Thereafter — Total debt $ 154,118 Senior Notes On December 13, 2017, we issued $150,000,000 of 10-year senior notes (the Senior Notes) that will mature on December 15, 2027 and bear interest at a rate equal to 6.25% per annum payable semi-annually on each June 15 and December 15, commencing June 15, 2018. The Senior Notes are senior unsecured obligations of the Company. We may redeem the Senior Notes at our option, at any time and from time to time in whole or in part, prior to September 15, 2027, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the date of redemption to the date that is three months prior to maturity. On or after that date, we may redeem the Senior Notes at par. On December 8, 2022, the Kroll Bond Rating Agency, LLC announced a downgrade of our issuer and debt ratings BBB- to BB+. As a result, pursuant to our agreement, the interest rate of our Senior Notes increased from 6.25% to 7.25% effective on the next Interest Payment date of June 15, 2023. Florida State Board of Administration Note On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (the SBA Note). For the first three years of the SBA note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The SBA Note bears an annual interest rate equivalent to the 10-year Constant Maturity Treasury rate (as defined in the SBA Note agreement), which resets quarterly. Truist Term Note On May 26, 2016, we issued a $5,200,000, 15-year term note payable to Truist (the Truist Note) with the intent to use the funds to purchase, renovate, furnish and equip our principal executive office. The Truist Note bears interest at 1.65% in excess of the one-month LIBOR which resets monthly. LIBOR was expected to be phased out by the end of 2021. However, the Intercontinental Exchange will continue to publish one-month LIBOR settings through 2023. The outstanding Truist Note payable balance, including applicable interest, was repaid in full on August 12, 2022. Financial Covenants Senior Notes - Our Senior Notes provide that the Company and its subsidiaries shall not incur any indebtedness unless no default exists and the Company’s leverage ratio as of the last day of any annual or quarterly period (the balance sheet date) immediately preceding the date on which such additional indebtedness is incurred would have been no greater than 0.3:1, determined on a pro forma basis as if the additional indebtedness and all other indebtedness incurred since the immediately preceding balance sheet date had been incurred and the proceeds therefrom applied as of such day. The Company and its subsidiaries also may not create, assume, incur or permit to exist any indebtedness for borrowed money that is secured by a lien on the voting stock of any significant subsidiary without securing the Senior Notes equally. The Company may not issue, sell, assign, transfer or otherwise dispose of, directly or indirectly, any of the capital stock of the Company’s significant subsidiaries as of the issue date of the Senior Notes (except to the Company or to one or more of the Company’s other subsidiaries, or for the purpose of qualifying directors or as may be required by law or regulation), subject to certain exceptions. At December 31, 2022, while our leverage ratio was greater than the allowed ratio above, we did not incur any additional debt during the period and as a result we were in compliance with the covenants in the Senior Notes. SBA Note - Our SBA Note requires that UPC maintain either a 2:1 ratio of net written premium to surplus, or net writing ratio, or a 6:1 ratio of gross written premium to surplus, or gross writing ratio, to avoid additional interest penalties. The SBA Note agreement defines surplus for the purpose of calculating the required ratios as the $20,000,000 of capital contributed to UPC under the agreement plus the outstanding balance of the note. Should UPC fail to exceed either a net writing ratio of 1.5:1 or a gross writing ratio of 4.5:1, UPC's interest rate will increase by 450 basis points above the 10-year Constant Maturity Treasury rate, which was 3.76% at the end of December 2022. Any other writing ratio deficiencies result in an interest rate penalty of 25 basis points above the stated rate of the note. Our SBA Note further provides that the Florida State Board of Administration may, among other things, declare its loan immediately due and payable upon any default existing under the SBA Note; however, any payment is subject to approval by the insurance regulatory authority. At December 31, 2022, we were in compliance with the covenants in the SBA Note. Debt Issuance Costs The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1, $ 1,998 $ 2,335 Additions — — Amortization (353) (337) Balance at December 31, $ 1,645 $ 1,998 |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | 13) ALLOWANCE FOR EXPECTED CREDIT LOSSES We are exposed to credit losses primarily through three different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; our investment holdings and our notes receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies and debt issuers, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses. The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. The following tables summarize our allowance for expected credit losses by pooled asset for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Provision for expected credit losses Write-offs December 31, 2022 Premiums Receivable $ 32 $ (217) $ 254 $ 69 Reinsurance Recoverables 563 40 — 603 Total $ 595 $ (177) $ 254 $ 672 December 31, 2021 December 31, 2020 Provision for expected credit losses Write-offs December 31, 2021 Premiums Receivable $ 140 $ (190) $ 82 $ 32 Reinsurance Recoverables 386 177 — 563 Note Receivable 20 (20) — — Total $ 546 $ (33) $ 82 $ 595 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 14) INCOME TAXES The Company files a consolidated federal income tax return with all subsidiaries. The following table summarizes the provision for income taxes: Year Ended December 31, 2022 2021 2020 Federal: Current $ (171) $ (2,207) $ (27,310) Deferred 18,823 (18,830) (6,611) Provision (benefit) for Federal income tax expense 18,652 (21,037) (33,921) State: Current 1,518 1,033 598 Deferred 5,315 (3,985) (3,282) Provision (benefit) for State income tax expense 6,833 (2,952) (2,684) Provision (benefit) for income taxes $ 25,485 $ (23,989) $ (36,605) The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2022 2021 2020 Expected income tax expense at federal rate $ (93,341) $ (17,610) $ (27,741) State tax expense, net of federal deduction benefit (13,899) (1,176) (3,603) Dividend received deduction (73) (59) (141) Non-Deductible Goodwill 2,848 (2) — Other permanent items 241 127 600 Prior period accrual adjustment 469 (1,053) 2,230 Outside basis in subsidiary 189 (964) 470 Net operating loss carryback rate benefit (1) — — (12,566) Municipal tax-exempt interest (50) (134) (280) Change in valuation allowance 128,993 (1,352) 5,505 Change in enacted tax rate 110 (1,386) (358) Change in tax credit carryforward — (380) (721) Other, net (2) — — Reported income tax benefit $ 25,485 $ (23,989) $ (36,605) (1) Pursuant to the recently enacted CARES Act. Deferred income taxes, which are included in other assets or other liabilities as appropriate, 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. As of December 31, 2022, we had net operating loss (NOL) carryforwards. The amount and timing of realizing the benefits of NOL carryforwards depend on future taxable income and limitation imposed by tax laws. There is no expiration for $1,101,000 of our Federal NOL carryforward. The remaining $452,413,000 of our Federal NOL carryforward expires beginning in 2040 and fully expiring by the end of 2042. Our $404,279,000 of state NOL carryforward expires beginning in 2039 and fully expiring by the end of 2042. The unused business tax credits of $1,610,000 will expire beginning in 2037 and fully expiring by the end of 2040. The table below summarizes the significant components of our net deferred tax asset (liability): December 31, 2022 2021 Deferred tax assets: Unearned premiums $ 16,115 $ 10,326 Unrealized loss 8,768 1,230 Tax-related discount on loss reserve 5,505 3,121 R&D tax credit carryforward 1,610 1,990 Other-than-temporary impairment 5,500 — Investments 2,620 344 Bad debt expense 1,077 144 Equity compensation 474 405 Dual consolidated loss carryforward 5,958 5,103 Net operating loss carryforward 112,804 25,472 Other 1,541 789 Total pre-allowance deferred tax assets 161,972 48,924 Valuation allowance (140,034) (5,142) Total deferred tax assets 21,938 43,782 Deferred tax liabilities: Deferred acquisitions costs (14,743) (10,356) Intangible assets (2,823) (3,607) Prepaid expenses (744) (837) Investments (62) (77) Fixed assets (3,743) (4,990) Total deferred tax liabilities (22,115) (19,867) Net deferred tax asset (liability) $ (177) $ 23,915 We had a valuation allowance of $140,034,000 and $5,142,000 at December 31, 2022 and 2021, respectively. In assessing the net realizable value of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income (loss), reversals of temporary items, projected future taxable income and tax planning strategies in making this assessment. The current year increase in valuation allowance predominately relates to the impact of current year results on management’s estimate that the majority of its net deferred tax assets will not be realizable. The statute of limitations related to our consolidated Federal income tax returns and our Florida income tax returns expired for all tax years up to and including 2018; therefore, only the 2019 through 2022 tax years remain subject to examination by taxing authorities. During the year ended December 31, 2022, we were examined by the IRS regarding tax years 2018, 2019 and 2020. During the year ended December 31, 2020, we were examined by the Internal Revenue Service (IRS) regarding our 2016 income tax return. Tax years 2018, 2019 and 2020 are with Joint Committee review, however, no material adjustments have been proposed. UPC Insurance’s reinsurance subsidiaries, which are based in the Cayman Islands and Bermuda, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiaries are subject to United States income tax on its worldwide income as if it were a U.S. corporation. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2022: December 31, 2022 Balance at January 1 $ 834 Decrease based on tax positions related to prior years (168) Balance at December 31 $ 666 |
Statutory Accounting and Regula
Statutory Accounting and Regulation | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Accounting and Regulation | STATUTORY ACCOUNTING AND REGULATION The insurance industry is heavily regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers’ ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. Effective June 1, 2022, our insurance subsidiaries JIC and ACIC were merged, with ACIC being the surviving entity. Effective May 31, 2022, our insurance subsidiaries UPC and FSIC were merged, with UPC being the surviving entity. Both UPC and ACIC are domiciled in Florida, while IIC is domiciled in New York. At December 31, 2022, and during the year then ended, ACIC and IIC met all regulatory requirements of the states in which they operate. As of December 31, 2022, UPC was determined to be insolvent and was referred for receivership by the OIR. During 2022, we received an assessment notice from FIGA. This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to FIGA's 0.7% assessment, described below, and is recoupable from policyholders. During 2021, we received an assessment notice from FIGA. This assessment will be 0.7% on all direct written premium of Florida lines of business during 2022. In addition, we received an assessment notice from LIGA in 2021. LIGA is assessing property and casualty insurers $100,000,000 to cover the cost of two regional insurance companies facing insolvency. This assessment was 1% of 2020 and 2021 direct written premiums, totaling $988,000 and $899,000, respectively. While this assessment is recoupable over 10 years in the form of tax credits, we do not anticipate recouping this assessment after our 2022 premium tax return, as we will no longer write business in the state of Louisiana. The NAIC has RBC guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. Most states, including Florida and New York, have enacted statutory requirements adopting the NAIC RBC guidelines, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital. The state laws of Florida and New York permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The state laws further provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authorities in those states and the amount of dividends or distributions that would require prior approval of the insurance regulatory authorities in those states. Statutory RBC requirements may further restrict our insurance subsidiaries’ ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum RBC requirements. Additionally, in connection with UPC’s Plan for Runoff, IIC has agreed to not pay ordinary dividends without prior approval of the New York Department of Financial Services until January 1, 2025. Governmental agencies or certain quasi-governmental entities can levy assessments upon us in the states in which we write policies. See Note 2(t) for a description of how we recover assessments imposed upon us. We expense an assessment when the particular governmental agency or quasi-governmental entity levies it upon us; therefore, expected recoveries are not assets and we will record the amounts as income when collected from policyholders. Governmental agencies or certain quasi-governmental entities can also levy assessments upon policyholders, and we collect the amount of the assessments from policyholders as surcharges for the benefit of the assessing agency. We currently collect assessments levied upon policyholders on behalf of Louisiana Citizens Property Insurance Corporation in the amount of 2.40% of written premium. During 2021, we collected assessments levied upon policyholders on behalf of Connecticut Healthy Homes Fund in the amount of $12.00 per each homeowners policy. In addition, we collect $2 per residential policy and $4 per commercial policy written in the state of Florida on behalf of the Florida Emergency Management Preparedness and Assistance Trust Fund. Our insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. At December 31, 2022, ACIC and IIC met these requirements, while UPC was determined to be insolvent and referred for receivership by the OIR. The table below details the amount of surplus as regards policyholders for each of our regulated entities at December 31, 2022 and 2021. December 31, 2022 December 31, 2021 UPC (1) $ (239,606) $ 169,244 ACIC (2) 77,511 142,138 IIC 26,152 30,248 Total $ (135,943) $ 341,630 (1) UPC results are inclusive of FSIC as these entities were merged effective May 31, 2022. (2) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022. The amount of restricted net assets of our insurance subsidiaries are: December 31, 2022 UPC (1)(2) $ — ACIC (3) 19,603 IIC 20,774 (1) UPC results are inclusive of FSIC as these entities were merged effective May 31, 2022. (2) As a result of UPC’s insolvency, the Company is in a net liability position and has no restricted net assets at December 31, 2022. (3) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022. NAIC law limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. We were in compliance with all investment restrictions at December 31, 2022 and 2021. The SBA Note is considered a surplus note pursuant to statutory accounting principles. As a result, UPC is subject to the authority of the Insurance Commissioner of the State of Florida with regard to its ability to repay principal and interest on the SBA note. Any payment of principal or interest requires permission from the insurance regulatory authority. We have reported our insurance subsidiaries’ assets, liabilities and results of operations in accordance with GAAP, which varies from statutory accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The following items are principal differences between statutory accounting and GAAP: • Statutory accounting requires that we exclude certain assets, called non-admitted assets, from the balance sheet. • Statutory accounting requires us to expense policy acquisition costs when incurred, while GAAP allows us to defer to the extent realizable, and amortize policy acquisition costs over the estimated life of the policies. • Statutory accounting requires that surplus notes, also known as surplus debentures, be recorded in statutory surplus, while GAAP requires us to record surplus notes as a liability. • Statutory accounting allows certain investments to be carried at amortized cost or fair value based on the rating received from the Securities Valuation Office of the NAIC, while they are recorded at fair value for GAAP because the investments are held as available for sale. • Statutory accounting allows ceding commission income to be recognized when written if the cost of acquiring and renewing the associated business exceeds the ceding commissions, but under GAAP such income is deferred and recognized over the coverage period. • Statutory accounting requires that unearned premiums and loss reserves are presented net of related reinsurance rather than on a gross basis under GAAP. • Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. Under GAAP there is no charge for uncollateralized amounts ceded to a company not licensed in the insurance subsidiary’s domiciliary state and a reserve for uncollectible reinsurance is charged through earnings rather than surplus or equity. • Statutory accounting requires an additional admissibility test and the change in deferred income tax is reported directly in capital and surplus, rather than being reported as a component of income tax expense under GAAP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation. At December 31, 2022, the Company is involved in legal proceedings whereby on August 18, 2021, Jacqueline A. Miraglia v. United Insurance Holdings Corp., and United Property & Casualty Insurance Company was filed in the United States District Court for the District of Delaware alleging violations and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. On September 27, 2022, venue was transferred to the United States District Court for the Middle District of Florida, Tampa Division. In November, 2022, the plaintiff filed an Amended Complaint styled Jacqueline A. Miraglia vs. United Insurance Holdings Corp., United Property & Casualty Insurance Company, and Skyway Claims Services, LLC, alleging violations arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967. The Company denies wrongdoing and believes that an unfavorable outcome is neither probable nor estimable. Commitments to fund partnership investments We have fully funded three limited partnership investments and have committed to fund our remaining six limited partnership investments. The amount of unfunded commitments was $5,968,000 and $1,969,000 at December 31, 2022 and 2021, respectively. Leases We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases. The classification of operating and finance lease asset and liability balances within the Consolidated Balance Sheets was as follows: Financial Statement Line December 31, 2022 December 31, 2021 Assets Operating lease assets Other assets $ 1,278 $ 1,689 Financing lease assets Property and equipment, net 51 477 Total lease assets $ 1,329 $ 2,166 Liabilities Operating lease liabilities Operating lease liability $ 1,689 $ 1,934 Financing lease liabilities Other liabilities 2 16 Total lease liabilities $ 1,691 $ 1,950 The components of lease expenses were as follows: Years ended December 31, 2022 2021 Operating lease expense $ 943 $ 654 Financing lease expense: Amortization of leased assets 358 758 Interest on lease liabilities 1 1 Short-term lease expense — — Net lease expense $ 1,302 $ 1,413 At December 31, 2022, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total 2023 $ 927 $ 2 $ 929 2024 590 — 590 2025 220 — 220 2026 10 — 10 2027 — — — Thereafter — — — Total undiscounted future minimum lease payments 1,747 2 1,749 Less: Imputed interest (58) — (58) Present value of lease liabilities $ 1,689 $ 2 $ 1,691 Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: December 31, 2022 December 31, 2021 Weighted average remaining lease term (months) Operating leases 25 51 Financing leases 9 17 Weighted average discount rate Operating leases 3.79 % 3.61 % Financing leases 3.27 % 3.27 % Other cash and non-cash related activities were as follows: Years ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Investing cash flows from financing leases $ — $ 68 Right-of-use assets obtained in exchange for new operating lease liabilities — 14 Right-of-use assets obtained in exchange for new financing lease liabilities — 70 Financing lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Loss. See Note 7 for information regarding depreciation expense. See Note 11 for information regarding commitments related to long-term debt, and Note 15 for commitments related to regulatory actions. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | EMPLOYEE BENEFIT PLANWe provide a 401(k) plan for substantially all of our employees. We match 100% of the first 5% of employees’ contributions to the plan. For the years ended December 31, 2022, 2021, and 2020, our contributions to the plan on behalf of the participating employees were $1,630,000, $1,229,000, and $1,381,000, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) We report changes in other comprehensive income (loss) items within comprehensive loss on the Consolidated Statements of Comprehensive Loss, and we include accumulated other comprehensive loss as a component of stockholders’ equity (deficit) on the Consolidated Balance Sheets. The table below details the components of accumulated other comprehensive income (loss) at year end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2019 $ 14,962 $ (3,643) $ 11,319 Changes in net unrealized gain on investments 64,421 (16,101) 48,320 Reclassification adjustment for net realized gains (66,594) 16,648 (49,946) December 31, 2020 12,789 (3,096) 9,693 Changes in net unrealized losses on investments (17,814) 4,266 (13,548) Reclassification adjustment for net realized gains (3,568) 892 (2,676) December 31, 2021 (8,593) 2,062 (6,531) Changes in net unrealized losses on investments (56,530) 8,053 (48,477) Reclassification adjustment for net realized losses 32,082 (8,021) 24,061 December 31, 2022 $ (33,041) $ 2,094 $ (30,947) |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY (DEFICIT) Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.06 $ 2,589 $ 0.06 $ 2,582 $ 0.06 $ 2,571 Second Quarter — — 0.06 2,591 0.06 2,578 Third Quarter — — 0.06 2,589 0.06 2,581 Fourth Quarter — — 0.06 2,588 0.06 2,583 In November 2022, ACIC paid dividends of $26,000,000 to the Company. In February 2021, IIC paid dividends of $3,500,000 to the Company. In February 2020, IIC paid dividends of $12,000,000 to the Company. In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of December 31, 2022, we had not yet repurchased any shares under this stock repurchase plan. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of UIHC common stock, and general market conditions. The plan has no expiration date, and the plan may be suspended or discontinued at any time. See Note 19 for information regarding our stock-based compensation activity. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. On February 1, 2023, the Company, together with its wholly-owned subsidiary, UPC, entered into a Renewal Rights Agreement, dated as of February 1, 2023, with Slide Insurance Company (Slide), pursuant to which UPC agreed to transfer to Slide the renewal rights to UPC’s personal lines homeowners business in Florida. Under the terms of this transaction, UPC cancelled approximately 72,000 Florida personal lines policies on February 1, 2023, and Slide simultaneously issued replacement policies. Additionally, Slide will make offers of coverage to additional Florida personal lines policies expiring in April 2023. In addition, on February 1, 2023, the Company, together with its wholly-owned subsidiary, UIM, entered into an Asset Purchase and Services Agreement, with Slide, pursuant to which, UIM agreed to sell, and Slide agreed to purchase certain intellectual property and data. Under the terms of this agreement, UIM will also provide Slide with policy administration services in exchange for Slide reimbursing UIM's costs for providing such services. In exchange for the sale of intellectual property and data, Slide will pay UIM two percent of gross earned premium of the policies renewed by pursuant to the Renewal Rights Agreement. On February 27, 2023, the Florida Department of Financial Services, Division of Rehabilitation and Liquidation initiated proceedings against our insurance subsidiary, UPC. As a result, we will immediately de-consolidate UPC from our operations on the effective date of receivership. On March 2, 2023, the Company issued a press release related to its earnings for the fourth quarter and year ended December 31, 2022 (the Earnings Release). The Earnings Release was filed as exhibit 99.1 to the Form 8-K filed on March 2, 2023. Subsequent to the Earnings Release, the Company has increased its reported Policy acquisition costs on its Consolidated Statements of Comprehensive Loss by $1,856,000 or 1.2%, from $154,233,000 to $156,089,000. Additionally, the Company has decreased its reported Reinsurance recoverable on paid and unpaid losses and Other assets on its Consolidated Balance Sheets by $885,000 or 0.05% and $971,000 or 2.5%, respectively. On April 5, 2023, the Company filed a Motion for Release of Property of ACIC in the Circuit Court of the Second Judicial Circuit for Leon County, Florida, requesting that UPC immediately remit to ACIC reinsurance recoveries currently held by UPC and reinsurance recoveries recovered by UPC in the future in accordance with the Company’s Allocation Agreement. Alternatively, ACIC requested future reinsurance recoveries remitted to UPC be placed into a segregated account for future reconciliation and remittance to ACIC. On April 13, 2023, the DFS filed a response to the Company’s motion, objecting to ACIC’s position. On April 14, 2023, the Court denied ACIC’s motion without prejudice. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, cash equivalents, and restricted cashOur cash, cash equivalents, and restricted cash include demand deposits with financial institutions, cash that is held in trust for assumed business, cash held in deposit accounts to satisfy state statutory deposit requirements, and short-term, highly liquid instruments with original maturities of three months or less when purchased. |
Investment, Policy [Policy Text Block] | Investments We currently classify all of our investments in fixed maturities and short-term investments as available-for-sale, and report them, our equity securities and limited partnership investments at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive loss. We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net loss. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Quarterly, we perform an assessment of our investments to determine if any are impaired as the result of a credit loss. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security’s entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive loss. A large portion of our investment portfolio consists of fixed maturities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. During the year ended December 31, 2022, management determined that it was more likely than not that we would be required to sell a portion of our fixed-income securities attributable to our personal lines operating segment before recovery of their amortized cost basis. These securities were evaluated and none of the unrealized loss position was the result of a credit loss. As a result, we realized impairment losses of $22,718,000 on these securities, before tax impacts. Total shareholders’ equity (deficit) was not impacted by such charge; however, our net loss for the year ended December 31, 2022 worsened and other comprehensive income improved by $22,718,000 in offsetting amounts. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value See Note 4 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2022 and 2021. |
Premiums Receivable, Basis of Accounting, Policy [Policy Text Block] | Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then estimate expected credit losses based on historical trends, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. Once these conditions have been examined, we establish an allowance for credit losses for any amounts not expected to be collected. When we receive payments on amounts previously charged off, we credit our expected credit loss expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $69,000 and $32,000 at December 31, 2022 and 2021, respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premiums liability and record the premiums as described above. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Policy Acquisition Costs We incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. Such costs include, but are not limited to: incremental direct costs of contract acquisition, such as commissions; premium taxes; and other essential direct costs that would not have been incurred had a policy not been acquired or renewed. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, reinsurance costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. At December 31, 2022, our insurance subsidiary UPC was determined to have a premium deficiency. As a result, we expensed $20,173,000 in deferred policy acquisition costs, which was the excess of what we expect to recover. We did not have a premium deficiency at December 31, 2021. |
Debt, Policy [Policy Text Block] | Debt Issuance CostsWe record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets i) Property and Equipment We record our property and equipment at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. |
Internal Use Software, Policy [Policy Text Block] | Capitalized Software We capitalize certain direct development costs associated with internal-use software. We amortize the capitalized software costs related to our data warehouse, claims systems and policy administration systems over their expected seven See Note 7 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software that were held during 2022 and 2021. |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairment of Long-lived AssetsWe annually review our long-lived assets, or more frequently when impairment indicators exist, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for incurred but not reported (IBNR) claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net loss. Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance We follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, ceded unearned premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our ceded unearned premiums over the 12-month contract period. We record provisional ceding commissions that we receive in connection with our reinsurance contracts for the 2022, 2021 and 2020 underwriting years as an offset to deferred acquisitions costs. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. As of December 31, 2022 and December 31, 2021, our ending credit loss allowance related to reinsurance recoverables was $603,000, and $563,000, respectively. |
Assessment [Policy Text Block] | Assessments We record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2022, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to FIGA's 0.7% assessment, described below, and is recoupable from policyholders. During 2021, we received an assessment notice from FIGA. This assessment will be 0.7% on the direct written premium of all Florida lines of business during 2022. In addition, during 2021, we received an assessment notice from the Louisiana Insurance Guaranty Association (LIGA). LIGA is assessing property and casualty insurers $100,000,000 to cover the cost of two regional insurance companies facing insolvency. This assessment was 1% of 2020 and 2021 direct written premiums, totaling $988,000 and $899,000, respectively. While this assessment is recoupable over 10 years in the form of tax credits, we do not anticipate recouping this assessment after our 2022 premium tax return, as we will no longer write business in the state of Louisiana. |
Income Tax, Policy [Policy Text Block] | Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Refer to Note 14 for additional information. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. We recognize interest accrued related to uncertain tax benefits and penalties as income tax expense. As of December 31, 2022, we have no accrued penalties or interest related to uncertain tax benefits. In June 2022, we assessed our deferred tax position and believe it is more likely than not that the benefit from our deferred tax assets (DTA) will not be realized. In recognition of this risk, we have recorded a valuation allowance of $128,993,000 against our deferred tax assets as of December 31, 2022. If our assumptions change and we determine that we will be able to realize these DTAs, we will reverse the valuation allowance accordingly. On August 16, 2022, President Biden signed into law the Inflation Reduction Act (the IRA). The IRA contains $500 billion in new spending and tax breaks that aim to boost clean energy, reduce healthcare costs, and increase tax revenues. We reviewed the corporate tax impacts of the IRA and identified two provisions that needed further analysis to determine the impact to our business. First, the IRA established a corporate alternative minimum tax (CAMT) equal to 15% of average adjusted financial statement income (AFSI) over the CAMT foreign tax credit for the tax year. The CAMT is effective for tax years beginning after December 31, 2022 and only applies to corporations with an AFSI in excess of one billion dollars over three years. We do not expect to be subject to CAMT in 2023, due to this AFSI requirement. Second, the IRA imposes a nondeductible 1% excise tax on the net value of certain stock that a publicly-traded corporation repurchases occurring after December 31, 2022. To calculate the net value of a certain stock, the fair market value of the stock repurchased is reduced by the fair market value of the stock issued or provided to employees during that tax year. We do not anticipate the repurchase of stock in 2023, but would need to consider this excise tax if repurchases occur. On March 27, 2020, former President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. We assessed all provisions of the CARES Act and determined that two provisions needed further analysis to determine the impact to our business. First, the TCJA simplified the definition of "qualified improvement property" and removed the 15-year life for cost recovery, resulting in a 39-year life which excluded the assets from being eligible for bonus depreciation. The CARES Act reinstated the 15-year recovery period effective as if it had been included in the TCJA, making the change applicable to property placed in service after December 31, 2017. After performing our assessment, we concluded that this provision had no impact to our financial statements. Second, the TCJA eliminated the two-year carryback period and provided for indefinite carryforward of net operating losses against future tax periods, with the future deduction limited to 80% of taxable income before consideration of net operating loss deduction. The CARES Act amended the law for net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021. Net operating losses generated by a corporation during these taxable years now have a five-year carryback period. In addition, these losses can be carried forward to future taxable years without being subject to the 80% limitation. As a result of the CARES Act, we were able to convert potential deferred tax assets related to net operating losses to a current receivable, generating a $12,566,000 tax benefit for difference in tax rate. The Company’s initial assessment at June 30, 2020 was a tax benefit of $5,263,000. The additional benefit stemmed from 2020 operations. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2022, 2021 or 2020. |
Advertising Cost [Policy Text Block] | Advertising CostsWe expense all advertising costs as an operating expense when we incur those costs. For the years ended December 31, 2022, 2021 and 2020, we incurred advertising costs of $716,000, $910,000, and $1,212,000, respectively. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share (EPS)We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net loss attributable to UIHC common stockholders (net loss less the net income (loss) attributable to NCI) by the weighted-average number of shares of common stock outstanding during the period. We calculate diluted earnings per share using the Treasury method by dividing net loss attributable to UIHC common stockholders by the weighted-average number of shares of common stock, common stock equivalents, and restricted shares outstanding during the period. Common share equivalents are only included when they are dilutive. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily property insurance policies; • a concentration of revenue because we source 100% of our commercial lines business from AmRisc, LLC; • a geographic concentration resulting from the fact that, though we operated in several states historically, 100% of our commercial lines business is now in Florida and 100% of our personal lines business is now in New York. • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions; and • a concentration of credit risk with regard to our cash, because we choose to deposit all of our cash at five financial institutions. We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with our acquisitions to two reporting segments. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting segment to its carrying value. We test goodwill for impairment by performing a quantitative assessment. In performing the quantitative impairment test, we use a discounted cash flow valuation approach. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting segment include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting segment. The valuation methodology utilized is subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting segments could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible AssetsIdentifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically review identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. During 2022, we disposed of licenses that we no longer held and evaluated all other intangible assets. During 2022, 2021 and 2020 , we determined that the fair values of all remaining intangible assets were not impaired. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Accounting Pronouncements Recently Adopted Policies In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (ASU 2019-12). This update enhances and simplifies various aspects of the income tax guidance, including intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. We adopted this guidance as of January 1, 2021. The newly adopted guidance did not have a material impact on our consolidated financial statements and related disclosures. Pending Policies |
Credit Loss, Financial Instrument | Allowance for Expected Credit Losses See Note 13 in our Notes to Consolidated Financial Statements for a discussion regarding the allowance for expected credit losses at December 31, 2022 and 2021. |
Managing General Agent Fees | Managing General Agent Fees and Policy FeesOur policy fees consist of the managing general agent (MGA) fee and a pay-plan fee. We defer MGA fees as unearned revenue and recognize revenue on a pro rata basis over the term of the underlying policies. We record pay-plan fees, which are charged to all policyholders that pay premium in more than one installment, as income when collected. We report all policy-related fees as other revenue on our Consolidated Statements of Comprehensive Loss. |
Lessee, Leases | Leases We evaluate if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Identified property, plant or equipment for all of our leases are physically distinct and explicitly identified. In addition, we assess whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. Our leases expire at various dates and may contain renewal options. Our leases do not contain termination options. The exercise of lease renewal options are at our sole discretion and are only included in the determination of the lease term if we are reasonably certain to exercise the option. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Right-of-use assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. We have elected the practical expedient related to lease and non-lease components, as an accounting policy election for our office equipment leases, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component. We have also elected the practical expedients to exclude leases considered to be short-term and with values that fall under our capitalization threshold. A portion of our lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and right-of-use asset balances. Our office equipment lease agreements may include variable payments based on usage of the equipment. |
Segment Reporting, Policy | Segment Reporting Operating segments are components of our business about which separate financial information is available and evaluated by our Chief Operating Decision Maker (CODM) in decisions regarding resource allocations and financial performance assessments. Generally, financial information is required to be reported on the basis that is used internally for evaluating segment performance and deciding how to allocate resources to each segment. Segments are determined based on differences in products, internal reporting, and how operational decisions are made. We disclose two operating segments, our commercial lines business and our personal lines business. We are required to report a measure of each of these segments profit or loss, certain revenue and expense items, and segment assets. We are also required to reconcile total segment profit or losses, total segment revenues, total segment assets, and other amounts disclosed for segments to the corresponding amounts in our consolidated financial statements. See Note 3 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below presents the information for each of the reportable segments profit or loss as well as segment assets for the years ended December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 508,243 $ 615,820 $ — $ 1,124,063 Change in gross unearned premiums (44,029) 143,149 — 99,120 Gross premiums earned 464,214 758,969 — 1,223,183 Ceded premiums earned (245,293) (515,264) — (760,557) Net premiums earned 218,921 243,705 — 462,626 Net investment income 5,861 8,097 53 14,011 Net realized losses (6,511) (25,571) — (32,082) Net unrealized losses on equity securities (1,966) (4,617) (2) (6,585) Other revenue 1,178 16,271 3 17,452 Total revenues 217,483 237,885 54 455,422 EXPENSES: Losses and loss adjustment expenses 87,143 550,504 — 637,647 Policy acquisition costs 80,996 75,093 — 156,089 Operating expenses 3,926 39,270 436 43,632 General and administrative expenses (2) 9,579 52,318 1,420 63,317 Interest expense — 131 9,482 9,613 Total expenses 181,644 717,316 11,338 910,298 Income (loss) before other income 35,839 (479,431) (11,284) (454,876) Other income (loss) 2 (1,722) 12,115 10,395 Income (loss) before income taxes $ 35,841 $ (481,153) 831 (444,481) Provision for income taxes 25,485 25,485 Net loss $ (24,654) $ (469,966) Less: Net loss attributable to noncontrolling interests (111) (111) Net loss attributable to UIHC $ (24,543) $ (469,855) Loss ratio, net (3) (4) 39.8 % 225.9 % 137.8 % Expense ratio (3) (5) 43.2 % 68.4 % 56.9 % Combined ratio (3) (6) 83.0 % 294.3 % 194.7 % Total segment assets $ 1,588,385 $ 1,284,999 $ (35,888) $ 2,837,496 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $19,299,000 and $3,246,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. Personal lines depreciation and amortization expenses includes $13,569,000 related to the impairment of goodwill. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Year Ended December 31, 2021 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 422,238 $ 907,207 $ — $ 1,329,445 Change in gross unearned premiums (11,975) 90,973 — 78,998 Gross premiums earned 410,263 998,180 — 1,408,443 Ceded premiums earned (237,056) (581,626) — (818,682) Net premiums earned 173,207 416,554 — 589,761 Net investment income 4,764 8,962 46 13,772 Net realized gains (losses) (34) 3,601 — 3,567 Net unrealized gains on equity securities 1,471 1,766 — 3,237 Other revenue — 24,190 — 24,190 Total revenues 179,408 455,073 46 634,527 EXPENSES: Losses and loss adjustment expenses 54,718 367,416 — 422,134 Policy acquisition costs 80,198 93,376 — 173,574 Operating expenses 4,873 51,004 380 56,257 General and administrative expenses (2) 7,599 47,927 1,686 57,212 Interest expense — 89 9,302 9,391 Total expenses 147,388 559,812 11,368 718,568 Income (loss) before other income 32,020 (104,739) (11,322) (84,041) Other income 1 183 — 184 Income (loss) before income taxes $ 32,021 $ (104,556) (11,322) (83,857) Benefit for income taxes (23,989) (23,989) Net income (loss) $ 12,667 $ (59,868) Less: Net loss attributable to noncontrolling interests (1,949) (1,949) Net income (loss) attributable to UIHC $ 14,616 $ (57,919) Loss ratio, net (3) (4) 31.6 % 88.2 % 71.6 % Expense ratio (3) (5) 53.5 % 46.2 % 48.7 % Combined ratio (3) (6) 85.1 % 134.4 % 120.3 % Total segment assets $ 1,011,562 $ 1,234,875 $ 452,136 $ 2,698,573 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $7,419,000 and $3,397,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses . (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Year Ended December 31, 2020 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 393,263 $ 1,063,600 $ — $ 1,456,863 Change in gross unearned premiums (3,456) (46,427) — (49,883) Gross premiums earned 389,807 1,017,173 — 1,406,980 Ceded premiums earned (194,477) (446,840) — (641,317) Net premiums earned 195,330 570,333 — 765,663 Net investment income 7,882 15,723 520 24,125 Net realized gains 23,760 37,960 4,971 66,691 Net unrealized losses on equity securities (9,506) (15,244) (2,812) (27,562) Other revenue 1 17,738 — 17,739 Total revenues 217,467 626,510 2,679 846,656 EXPENSES: Losses and loss adjustment expenses 92,097 516,219 — 608,316 Policy acquisition costs 98,276 137,726 — 236,002 Operating expenses 3,440 49,255 181 52,876 General and administrative expenses (2) 7,685 58,385 5,987 72,057 Interest expense 28 89 9,465 9,582 Total expenses 201,526 761,674 15,633 978,833 Income (loss) before other income 15,941 (135,164) (12,954) (132,177) Other income 7 67 — 74 Income (loss) before income taxes $ 15,948 $ (135,097) (12,954) (132,103) Benefit for income taxes (36,605) (36,605) Net income (loss) $ 23,651 $ (95,498) Less: Net income attributable to noncontrolling interests 956 956 Net income (loss) attributable to UIHC $ 22,695 $ (96,454) Loss ratio, net (3) (4) 47.1 % 90.5 % 79.4 % Expense ratio (3) (5) 56.0 % 43.0 % 47.1 % Combined ratio (3) (6) 103.1 % 133.5 % 126.5 % Total segment assets $ 939,691 $ 1,369,797 $ 539,453 $ 2,848,941 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items, as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $7,664,000 and $3,264,000 of depreciation and amortization expense related to our personal and commercial assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Equity Securities | The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2022 and 2021: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 U.S. government and agency securities $ 34,116 $ — $ 105 $ 34,011 Foreign government 1,339 — 9 1,330 States, municipalities and political subdivisions 55,842 2 4,065 51,779 Public utilities 15,930 — 1,242 14,688 Corporate securities 157,354 19 15,739 141,634 Mortgage-backed securities 109,100 — 9,136 99,964 Asset-backed securities 34,905 9 2,788 32,126 Redeemable preferred stocks 931 — — 931 Total fixed maturities $ 409,517 $ 30 $ 33,084 $ 376,463 December 31, 2021 U.S. government and agency securities $ 50,373 $ 293 $ 1,326 $ 49,340 Foreign government 3,383 84 8 3,459 States, municipalities and political subdivisions 80,385 592 1,081 79,896 Public utilities 26,103 164 810 25,457 Corporate securities 246,933 2,303 4,793 244,443 Mortgage-backed securities 190,383 554 4,197 186,740 Asset-backed securities 70,569 116 523 70,162 Redeemable preferred stocks 4,010 106 11 4,105 Total fixed maturities $ 672,139 $ 4,212 $ 12,749 $ 663,602 Equity securities are summarized as follows at: December 31, 2022 December 31, 2021 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 35,485 91.0 % $ 33,064 87.1 % Public utilities 551 1.4 — — Non-redeemable preferred stocks 2,984 7.6 4,894 12.9 Total equity securities $ 39,020 100.0 % $ 37,958 100.0 % |
Schedule of Realized Gain (Loss) | The following table details our realized gains (losses) by major investment category for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Gains Fair Value at Sale Gains Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 725 $ 86,532 $ 2,112 $ 221,597 $ 32,460 $ 678,736 Equity securities — — 5,569 12,116 38,325 131,178 Short-term investments — 90 — 33,485 — 1,346 Total realized gains 725 86,622 7,681 267,198 70,785 811,260 Fixed maturities (1) (32,730) 163,990 (4,050) 220,809 (478) 16,552 Equity securities (77) 750 (18) 575 (3,602) 13,805 Short-term investments — — (46) 35,975 (14) 1,258 Total realized losses (32,807) 164,740 (4,114) 257,359 (4,094) 31,615 Net realized investment gains (losses) $ (32,082) $ 251,362 $ 3,567 $ 524,557 $ 66,691 $ 842,875 (1) Includes impairment losses realized of $22,718,000 for the year ended December 31, 2022. |
Investments Classified by Contractual Maturity Date | The table below summarizes our fixed maturities at December 31, 2022 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations. December 31, 2022 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 21,362 5.2 % $ 21,301 5.7 % Due after one year through five years 126,685 30.9 % 122,337 32.5 % Due after five years through ten years 109,016 26.6 % 93,142 24.7 % Due after ten years 8,449 2.1 % 7,593 2.0 % Asset and mortgage-backed securities 144,005 35.2 % 132,090 35.1 % Total $ 409,517 100.0 % $ 376,463 100.0 % |
Investment Income | The following table summarizes our net investment income by major investment category: Year Ended December 31, 2022 2021 2020 Fixed maturities $ 9,482 $ 12,884 $ 21,789 Equity securities 914 695 2,155 Cash and cash equivalents 3,326 280 1,329 Other investments 1,018 63 975 38 Other assets 26 24 178 Investment income 14,766 14,858 25,489 Investment expenses (755) (1,086) (1,364) Net investment income $ 14,011 $ 13,772 $ 24,125 |
Schedule of Unrealized Loss on Investments | The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities (1) Gross Unrealized Losses Fair Value Number of Securities (1) Gross Unrealized Losses Fair Value December 31, 2022 U.S. government and agency securities 3 $ 105 $ 2,385 — $ — $ — Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 21 540 7,306 31 3,525 18,853 Public utilities 8 193 2,286 4 1,049 5,408 Corporate securities 78 2,279 24,594 77 13,460 57,765 Mortgage-backed securities 48 1,282 15,259 80 7,854 40,856 Asset backed securities 16 795 6,397 46 1,993 19,028 Total fixed maturities 175 $ 5,203 $ 59,218 238 $ 27,881 $ 141,910 December 31, 2021 U.S. government and agency securities 39 $ 971 $ 32,167 15 $ 355 $ 8,126 Foreign governments 1 8 2,010 — — — States, municipalities and political subdivisions 63 761 41,670 8 320 11,423 Public utilities 14 346 12,719 7 464 7,708 Corporate securities 205 4,589 158,959 12 204 7,896 Mortgage-backed securities 138 2,638 111,636 37 1,559 41,786 Asset-backed securities 111 493 60,566 2 30 1,596 Redeemable preferred stocks 1 2 90 1 9 91 Total fixed maturities 572 $ 9,808 $ 419,817 82 $ 2,941 $ 78,626 (1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands. |
Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis | The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2022 and 2021: Total Level 1 Level 2 Level 3 December 31, 2022 U.S. government and agency securities $ 34,011 $ — $ 34,011 $ — Foreign government 1,330 — 1,330 — States, municipalities and political subdivisions 51,779 — 51,779 — Public utilities 14,688 — 14,688 — Corporate securities 141,634 — 141,634 — Mortgage-backed securities 99,964 — 99,964 — Asset-backed securities 32,126 — 32,126 — Redeemable preferred stocks 931 359 572 — Total fixed maturities 376,463 359 376,104 — Mutual funds 35,485 20,615 14,870 — Public utilities 551 551 — — Non-redeemable preferred stocks 2,984 2,984 — — Total equity securities 39,020 24,150 14,870 — Other investments (1) 444 300 144 — Total investments $ 415,927 $ 24,809 $ 391,118 $ — December 31, 2021 U.S. government and agency securities $ 49,340 $ — $ 49,340 $ — Foreign government 3,459 — 3,459 — States, municipalities and political subdivisions 79,896 — 79,896 — Public utilities 25,457 — 25,457 — Corporate securities 244,443 — 244,443 — Mortgage-backed securities 186,740 — 186,740 — Asset-backed securities 70,162 — 70,162 — Redeemable preferred stocks 4,105 535 3,570 — Total fixed maturities 663,602 535 663,067 — Mutual Funds 33,064 24,652 8,412 — Non-redeemable preferred stocks 4,894 4,894 — — Total equity securities 37,958 29,546 8,412 — Other investments (1) 381 300 81 — Total investments $ 701,941 $ 30,381 $ 671,560 $ — (1) |
Schedule of Fair Value of Financial Instruments with Unobservable Inputs | The information presented in the table below is as of December 31, 2022 and 2021: Book Value Unrealized Gain Unrealized Loss Fair Value December 31, 2022 Limited partnership investments (1) $ 16,133 $ 1,590 $ 1,539 $ 16,184 Certificates of deposit 300 — — 300 Short-term investments 145 — 1 144 Total other investments $ 16,578 $ 1,590 $ 1,540 $ 16,628 December 31, 2021 Limited partnership investments (1) $ 16,750 $ 1,401 $ 526 $ 17,625 Certificates of deposit 300 — — 300 Short-term investments 81 — — 81 Total other investments $ 17,131 $ 1,401 $ 526 $ 18,006 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to five years. |
Restrictions on Cash and Cash Equivalents | The following table presents the components of restricted assets: December 31, 2022 2021 Trust funds $ 48,363 $ 32,211 Cash on deposit (regulatory deposits) 5,354 1,043 Total restricted cash $ 53,717 $ 33,254 |
Securities on deposit | The table below shows the carrying value of those securities held on deposit with regulators. December 31, 2022 2021 Invested assets on deposit (regulatory deposits) $ 3,997 $ 2,885 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the computation of basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020: Year Ended 2022 2021 2020 Numerator: Net loss attributable to UIHC common stockholders $ (469,855) $ (57,919) $ (96,454) Denominator: Weighted-average shares outstanding 43,052,070 42,948,850 42,864,166 Effect of dilutive securities — — — Weighted-average diluted shares 43,052,070 42,948,850 42,864,166 Earnings available to UIHC common stockholders per share Basic $ (10.91) $ (1.35) $ (2.25) Diluted $ (10.91) $ (1.35) $ (2.25) |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | The table below depicts the activity with regard to deferred policy acquisition costs: 2022 2021 Balance at January 1 $ 38,520 $ 74,414 Policy acquisition costs deferred 210,375 249,565 Amortization (252,465) (274,405) Unearned ceding commission 62,503 (11,054) Balance at December 31 $ 58,933 $ 38,520 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consists of the following: Year Ended 2022 2021 Land $ — $ 2,114 Building and building improvements — 9,211 Computer hardware and software (software in progress of $82 and $990, respectively) 29,760 40,358 Office furniture and equipment 1,414 3,067 Leasehold improvements 753 753 Leased vehicles (1) 1,080 2,308 Total, at cost 33,007 57,811 Less: accumulated depreciation and amortization (13,416) (26,250) Property and equipment, net $ 19,591 $ 31,561 (1) Includes vehicles under financing leases. See Note 12 of these Notes to Consolidated Financial Statements for further information on leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at: December 31, 2022 December 31, 2021 Intangible assets subject to amortization $ 11,371 $ 14,618 Indefinite-lived intangible assets (1) 1,398 3,757 Total $ 12,769 $ 18,375 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2023 $ 3,246 2024 2,640 2025 2,438 2026 2,438 2027 609 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Intangible assets subject to amortization consisted of the following: Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2022 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.3 34,661 (24,301) 10,360 Trade names acquired 1.3 6,381 (5,370) 1,011 Total $ 83,830 $ (72,459) $ 11,371 2021 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 5.3 34,661 (21,863) 12,798 Trade names acquired 2.3 6,381 (4,561) 1,820 Total $ 83,830 $ (69,212) $ 14,618 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable | Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2022 2021 Reinsurance recoverable on unpaid losses and LAE $ 1,431,000 $ 749,600 Reinsurance recoverable on paid losses and LAE 200,408 247,520 Reinsurance recoverable (1) $ 1,631,408 $ 997,120 |
Reinsurance, Effect on Operations | The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Loss: Year ended December 31, 2022 2021 2020 Premium written: Direct $ 1,123,537 $ 1,329,129 $ 1,411,558 Assumed 526 316 45,305 Ceded (542,954) (864,725) (755,871) Net premium written $ 581,109 $ 464,720 $ 700,992 Change in unearned premiums: Direct $ 98,478 $ 59,547 $ (66,483) Assumed 642 19,451 16,600 Ceded (217,603) 46,043 114,554 Net decrease (increase) $ (118,483) $ 125,041 $ 64,671 Premiums earned: Direct $ 1,222,015 $ 1,388,676 $ 1,345,075 Assumed 1,168 19,767 61,905 Ceded (760,557) (818,682) (641,317) Net premiums earned $ 462,626 $ 589,761 $ 765,663 Losses and LAE incurred: Direct $ 2,389,152 $ 1,319,606 $ 1,186,401 Assumed 6,689 13,969 67,119 Ceded (1,758,194) (911,441) (645,204) Net losses and LAE incurred $ 637,647 $ 422,134 $ 608,316 |
Reinsurance Effects On Unpaid Lossses, LAE and Unearned Premiums | The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2022 2021 2020 Unpaid losses and LAE: Direct $ 1,942,612 $ 1,062,567 $ 1,042,994 Assumed 4,326 21,883 46,972 Gross unpaid losses and LAE 1,946,938 1,084,450 1,089,966 Ceded (1,431,000) (749,600) (674,746) Net unpaid losses and LAE $ 515,938 $ 334,850 $ 415,220 Unearned premiums: Direct $ 545,587 $ 644,065 $ 703,612 Assumed 233 875 20,326 Gross unearned premiums 545,820 644,940 723,938 Ceded (213,028) (430,631) (384,588) Net unearned premiums $ 332,792 $ 214,309 $ 339,350 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Claims Development | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2022 2021 2020 Balance at January 1 $ 1,084,450 $ 1,089,966 $ 760,357 Less: reinsurance recoverable on unpaid losses 749,600 674,746 482,315 Net balance at January 1 $ 334,850 $ 415,220 $ 278,042 Incurred related to: Current year 525,011 394,278 615,102 Prior years 112,636 27,856 (6,786) Total incurred $ 637,647 $ 422,134 $ 608,316 Paid related to: Current year 188,374 202,202 320,389 Prior years 268,185 300,302 150,749 Total paid $ 456,559 $ 502,504 $ 471,138 Net balance at December 31 $ 515,938 $ 334,850 $ 415,220 Plus: reinsurance recoverable on unpaid losses 1,431,000 749,600 674,746 Balance at December 31 $ 1,946,938 $ 1,084,450 $ 1,089,966 Composition of reserve for unpaid losses and LAE: Case reserves $ 578,698 $ 384,393 $ 392,717 IBNR reserves 1,368,240 700,057 697,249 Balance at December 31 $ 1,946,938 $ 1,084,450 $ 1,089,966 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2022 2021 Net outstanding liabilities Personal Lines Operating Segment $ 424,526 $ 250,950 Commercial Lines Operating Segment 80,256 72,390 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 504,782 323,340 Reinsurance recoverable on unpaid claims Personal Lines Operating Segment 699,420 596,344 Commercial Lines Operating Segment 731,580 153,256 Total reinsurance recoverable on unpaid claims 1,431,000 749,600 Unallocated claims adjustment expenses 11,156 11,510 Total gross liability for unpaid claims and claims adjustment expense $ 1,946,938 $ 1,084,450 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The table below presents all long-term debt outstanding as of December 31, 2022 and 2021: Effective Interest Rate Carrying Value at Maturity December 31, 2022 December 31, 2021 Senior Notes December 15, 2027 7.25% $ 150,000 $ 150,000 Florida State Board of Administration Note July 1, 2026 3.76% 4,118 5,294 Truist Term Note Payable (1) May 26, 2031 N/A — 3,265 Total long-term debt $ 154,118 $ 158,559 |
Schedule of Maturities of Long-term Debt | At December 31, 2022, the annual maturities of our long-term debt were as follows: Amount 2023 $ 1,176 2024 1,176 2025 1,176 2026 590 2027 150,000 Thereafter — Total debt $ 154,118 |
Schedule of Debt | The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1, $ 1,998 $ 2,335 Additions — — Amortization (353) (337) Balance at December 31, $ 1,645 $ 1,998 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Credit Loss Allowance Activity | The following tables summarize our allowance for expected credit losses by pooled asset for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Provision for expected credit losses Write-offs December 31, 2022 Premiums Receivable $ 32 $ (217) $ 254 $ 69 Reinsurance Recoverables 563 40 — 603 Total $ 595 $ (177) $ 254 $ 672 December 31, 2021 December 31, 2020 Provision for expected credit losses Write-offs December 31, 2021 Premiums Receivable $ 140 $ (190) $ 82 $ 32 Reinsurance Recoverables 386 177 — 563 Note Receivable 20 (20) — — Total $ 546 $ (33) $ 82 $ 595 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the provision for income taxes: Year Ended December 31, 2022 2021 2020 Federal: Current $ (171) $ (2,207) $ (27,310) Deferred 18,823 (18,830) (6,611) Provision (benefit) for Federal income tax expense 18,652 (21,037) (33,921) State: Current 1,518 1,033 598 Deferred 5,315 (3,985) (3,282) Provision (benefit) for State income tax expense 6,833 (2,952) (2,684) Provision (benefit) for income taxes $ 25,485 $ (23,989) $ (36,605) |
Tax Expense Reconciliation | The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2022 2021 2020 Expected income tax expense at federal rate $ (93,341) $ (17,610) $ (27,741) State tax expense, net of federal deduction benefit (13,899) (1,176) (3,603) Dividend received deduction (73) (59) (141) Non-Deductible Goodwill 2,848 (2) — Other permanent items 241 127 600 Prior period accrual adjustment 469 (1,053) 2,230 Outside basis in subsidiary 189 (964) 470 Net operating loss carryback rate benefit (1) — — (12,566) Municipal tax-exempt interest (50) (134) (280) Change in valuation allowance 128,993 (1,352) 5,505 Change in enacted tax rate 110 (1,386) (358) Change in tax credit carryforward — (380) (721) Other, net (2) — — Reported income tax benefit $ 25,485 $ (23,989) $ (36,605) |
Schedule of Deferred Tax Assets and Liabilities | The table below summarizes the significant components of our net deferred tax asset (liability): December 31, 2022 2021 Deferred tax assets: Unearned premiums $ 16,115 $ 10,326 Unrealized loss 8,768 1,230 Tax-related discount on loss reserve 5,505 3,121 R&D tax credit carryforward 1,610 1,990 Other-than-temporary impairment 5,500 — Investments 2,620 344 Bad debt expense 1,077 144 Equity compensation 474 405 Dual consolidated loss carryforward 5,958 5,103 Net operating loss carryforward 112,804 25,472 Other 1,541 789 Total pre-allowance deferred tax assets 161,972 48,924 Valuation allowance (140,034) (5,142) Total deferred tax assets 21,938 43,782 Deferred tax liabilities: Deferred acquisitions costs (14,743) (10,356) Intangible assets (2,823) (3,607) Prepaid expenses (744) (837) Investments (62) (77) Fixed assets (3,743) (4,990) Total deferred tax liabilities (22,115) (19,867) Net deferred tax asset (liability) $ (177) $ 23,915 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2022: December 31, 2022 Balance at January 1 $ 834 Decrease based on tax positions related to prior years (168) Balance at December 31 $ 666 |
Commitments and Contingencies L
Commitments and Contingencies Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Assets and Liabilities | The classification of operating and finance lease asset and liability balances within the Consolidated Balance Sheets was as follows: Financial Statement Line December 31, 2022 December 31, 2021 Assets Operating lease assets Other assets $ 1,278 $ 1,689 Financing lease assets Property and equipment, net 51 477 Total lease assets $ 1,329 $ 2,166 Liabilities Operating lease liabilities Operating lease liability $ 1,689 $ 1,934 Financing lease liabilities Other liabilities 2 16 Total lease liabilities $ 1,691 $ 1,950 |
Lease, Cost | The components of lease expenses were as follows: Years ended December 31, 2022 2021 Operating lease expense $ 943 $ 654 Financing lease expense: Amortization of leased assets 358 758 Interest on lease liabilities 1 1 Short-term lease expense — — Net lease expense $ 1,302 $ 1,413 |
Weighted Average Lease Terms | Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: December 31, 2022 December 31, 2021 Weighted average remaining lease term (months) Operating leases 25 51 Financing leases 9 17 Weighted average discount rate Operating leases 3.79 % 3.61 % Financing leases 3.27 % 3.27 % |
Lease Liability Cash Activity | Other cash and non-cash related activities were as follows: Years ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Investing cash flows from financing leases $ — $ 68 Right-of-use assets obtained in exchange for new operating lease liabilities — 14 Right-of-use assets obtained in exchange for new financing lease liabilities — 70 |
Lessee, Operating Lease, Liability, Maturity | At December 31, 2022, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total 2023 $ 927 $ 2 $ 929 2024 590 — 590 2025 220 — 220 2026 10 — 10 2027 — — — Thereafter — — — Total undiscounted future minimum lease payments 1,747 2 1,749 Less: Imputed interest (58) — (58) Present value of lease liabilities $ 1,689 $ 2 $ 1,691 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below details the components of accumulated other comprehensive income (loss) at year end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2019 $ 14,962 $ (3,643) $ 11,319 Changes in net unrealized gain on investments 64,421 (16,101) 48,320 Reclassification adjustment for net realized gains (66,594) 16,648 (49,946) December 31, 2020 12,789 (3,096) 9,693 Changes in net unrealized losses on investments (17,814) 4,266 (13,548) Reclassification adjustment for net realized gains (3,568) 892 (2,676) December 31, 2021 (8,593) 2,062 (6,531) Changes in net unrealized losses on investments (56,530) 8,053 (48,477) Reclassification adjustment for net realized losses 32,082 (8,021) 24,061 December 31, 2022 $ (33,041) $ 2,094 $ (30,947) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared | Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2022 2021 2020 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.06 $ 2,589 $ 0.06 $ 2,582 $ 0.06 $ 2,571 Second Quarter — — 0.06 2,591 0.06 2,578 Third Quarter — — 0.06 2,589 0.06 2,581 Fourth Quarter — — 0.06 2,588 0.06 2,583 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation, Activity | The following table presents our total stock-based compensation expense: Year Ended 2022 2021 2020 Employee stock-based compensation expense Pre-tax (1) $ 1,230 $ 875 $ 876 Post-tax (2) 972 691 692 Director stock-based compensation expense Pre-tax (1) 158 310 506 Post-tax (2) 125 245 400 (1) This table does not include withholding of vested shares for tax liabilities, which totaled $25,000, $39,000, and $112,000 in 2022, 2021, and 2020, respectively. (2) The after tax amounts are determined using the 21% corporate federal tax rate. |
Schedule of Nonvested Share Activity | The following table presents certain information related to the activity of our non-vested common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2019 214,495 $ 17.49 Granted (1) 386,101 9.33 Less: Forfeited 232,323 12.61 Less: Vested (1) 109,267 16.63 Outstanding as of December 31, 2020 259,006 $ 10.06 Granted 292,960 6.01 Less: Forfeited 122,460 8.87 Less: Vested 92,910 9.99 Outstanding as of December 31, 2021 336,596 $ 6.99 Granted 907,907 1.97 Less: Forfeited 383,876 3.43 Less: Vested 146,388 6.00 Outstanding as of December 31, 2022 714,239 $ 2.73 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted-average assumptions were used to value the stock options granted: 2022 2021 Expected annual dividend yield — % 0.65 % Expected volatility 49.66 % 46.63 % Risk-free interest rate 2.92 % 1.16 % Expected term 6 years 6 years |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity | The following table presents certain information related to the activity of our non-vested stock option grants: Number of Stock Options Weighted Average Exercise Prices Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 207,069 $ 18.69 9.00 $ — Granted 221,541 8.77 — — Less: Forfeited 234,472 12.76 — — Less: Exercised — — — — Less: Expired 50,132 18.94 — — Outstanding as of December 31, 2020 144,006 $ 13.00 8.77 $ — Vested as of December 31, 2020 80,728 $ 19.01 7.95 $ — Exercisable as of December 31, 2020 30,596 $ 19.11 7.95 $ — Outstanding as of December 31, 2020 144,006 $ 13.00 8.77 $ — Granted 1,054,707 3.86 — — Less: Forfeited 48,995 8.08 — — Less: Exercised — — — — Less: Expired 2,503 16.25 — — Outstanding as of December 31, 2021 1,147,215 $ 4.80 9.49 $ 792,000 Vested as of December 31, 2021 120,638 $ 15.87 7.39 $ — Exercisable as of December 31, 2021 68,003 $ 15.85 7.39 $ — Outstanding as of December 31, 2021 1,147,215 $ 4.80 9.49 $ 792,000 Granted 635,643 1.70 — — Less: Forfeited 426,480 2.91 — — Less: Exercised — — — — Less: Expired 105,693 6.65 — — Outstanding as of December 31, 2022 1,250,685 $ 3.71 7.66 $ — Vested as of December 31, 2022 (1) 532,797 $ 7.26 8.03 $ — Exercisable as of December 31, 2022 432,786 $ 5.25 5.10 $ — |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||||
ASU 2016-13 Effect on Retained Earnings | $ (262) | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Premium Receivable, Allowance for Credit Loss | $ 69 | $ 32 | 140 | |
Reinsurance Recoverable, Allowance for Credit Loss | 603 | 563 | 386 | |
Financing Receivable, Allowance for Credit Loss | 0 | 0 | 20 | |
Total Credit Loss Allowances | 672 | 595 | 546 | |
Charged to Costs and Expenses | (217) | (190) | ||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 40 | 177 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | |||
Financing Receivable, Credit Loss, Expense (Reversal) | (20) | |||
Total Credit Loss Allowance Writeoffs | 254 | 82 | ||
Change in Credit Loss Allowance | (177) | (33) | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | 254 | 82 | ||
Reinsurance recoverable, allowance for credit loss, writeoff | 0 | 0 | ||
Cash, Uninsured Amount | 197,917 | 254,989 | ||
Marketing and Advertising Expense | 716 | 910 | 1,212 | |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 5,263 | |||
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit) | $ 12,566 | |||
Other than Temporary Impairment Losses, Investments | 22,718 | |||
Deferred Policy Acquisition Costs, Impairment Loss | 20,173 | |||
Goodwill, Impaired, Accumulated Impairment Loss | 13,569 | |||
Deferred Tax Assets, Valuation Allowance | $ 140,034 | $ 5,142 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Gross premiums written | $ 1,124,063 | $ 1,329,445 | $ 1,456,863 |
Change in gross unearned premiums | 99,120 | 78,998 | (49,883) |
Gross Premiums Earned, Property and Casualty | 1,223,183 | 1,408,443 | 1,406,980 |
Ceded Premiums Earned | (760,557) | (818,682) | (641,317) |
Premiums Earned, Net, Property and Casualty | 462,626 | 589,761 | 765,663 |
Investment Income, Net | 14,011 | 13,772 | 24,125 |
Net realized gains (losses) | (32,082) | 3,567 | 66,691 |
Unrealized Gain (Loss) on Investments | (6,585) | 3,237 | (27,562) |
Other revenue | 17,452 | 24,190 | 17,739 |
Revenues | 455,422 | 634,527 | 846,656 |
Losses and loss adjustment expenses | 637,647 | 422,134 | 608,316 |
Policy Acquisition Costs | 156,089 | 173,574 | 236,002 |
Operating Costs and Expenses | 43,632 | 56,257 | 52,876 |
General and Administrative Expense | 63,317 | 57,212 | 72,057 |
Interest Expense | 9,613 | 9,391 | 9,582 |
Costs and Expenses | 910,298 | 718,568 | 978,833 |
Operating Income (Loss) | (454,876) | (84,041) | (132,177) |
Other Income | 10,395 | 184 | 74 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (444,481) | (83,857) | (132,103) |
Income Tax Expense (Benefit) | 25,485 | (23,989) | (36,605) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (469,966) | (59,868) | (95,498) |
Net Income (Loss) Attributable to Noncontrolling Interest | (111) | (1,949) | 956 |
Net Income (Loss) Attributable to Parent | $ (469,855) | $ (57,919) | $ (96,454) |
Underwriting Expense Ratio | 137.80% | 71.60% | 79.40% |
Underwriting Expense Ratio | 56.90% | 48.70% | 47.10% |
Combined Ratio | 194.70% | 120.30% | 126.50% |
Assets | $ 2,837,496 | $ 2,698,573 | $ 2,848,941 |
Personal Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 615,820 | 1,063,600 | |
Change in gross unearned premiums | 143,149 | (46,427) | |
Gross Premiums Earned, Property and Casualty | 758,969 | 1,017,173 | |
Ceded Premiums Earned | (515,264) | (446,840) | |
Premiums Earned, Net, Property and Casualty | 243,705 | 570,333 | |
Investment Income, Net | 8,097 | 15,723 | |
Net realized gains (losses) | (25,571) | 37,960 | |
Unrealized Gain (Loss) on Investments | (4,617) | (15,244) | |
Other revenue | 16,271 | 17,738 | |
Revenues | 237,885 | 626,510 | |
Losses and loss adjustment expenses | 550,504 | 516,219 | |
Policy Acquisition Costs | 75,093 | 137,726 | |
Operating Costs and Expenses | 39,270 | 49,255 | |
General and Administrative Expense | 52,318 | 58,385 | |
Interest Expense | 131 | 89 | |
Costs and Expenses | 717,316 | 761,674 | |
Operating Income (Loss) | (479,431) | (135,164) | |
Other Income | (1,722) | 67 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (481,153) | $ (135,097) | |
Underwriting Expense Ratio | 225.90% | 88.20% | 90.50% |
Underwriting Expense Ratio | 68.40% | 46.20% | 43% |
Combined Ratio | 294.30% | 134.40% | 133.50% |
Assets | $ 1,284,999 | $ 1,234,875 | $ 1,369,797 |
Peronsal Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 508,243 | 393,263 | |
Change in gross unearned premiums | (44,029) | (3,456) | |
Gross Premiums Earned, Property and Casualty | 464,214 | 389,807 | |
Ceded Premiums Earned | (245,293) | (194,477) | |
Premiums Earned, Net, Property and Casualty | 218,921 | 195,330 | |
Investment Income, Net | 5,861 | 7,882 | |
Net realized gains (losses) | (6,511) | 23,760 | |
Unrealized Gain (Loss) on Investments | (1,966) | (9,506) | |
Other revenue | 1,178 | 1 | |
Revenues | 217,483 | 217,467 | |
Losses and loss adjustment expenses | 87,143 | 92,097 | |
Policy Acquisition Costs | 80,996 | 98,276 | |
Operating Costs and Expenses | 3,926 | 3,440 | |
General and Administrative Expense | 9,579 | 7,685 | |
Interest Expense | 0 | 28 | |
Costs and Expenses | 181,644 | 201,526 | |
Operating Income (Loss) | 35,839 | 15,941 | |
Other Income | 2 | 7 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 35,841 | $ 15,948 | |
Underwriting Expense Ratio | 39.80% | 31.60% | 47.10% |
Underwriting Expense Ratio | 43.20% | 53.50% | 56% |
Combined Ratio | 83% | 85.10% | 103.10% |
Assets | $ 1,588,385 | $ 1,011,562 | $ 939,691 |
Adjustments and Reconciling Items | |||
Segment Reporting Information | |||
Gross premiums written | 0 | 0 | |
Change in gross unearned premiums | 0 | 0 | |
Gross Premiums Earned, Property and Casualty | 0 | 0 | |
Ceded Premiums Earned | 0 | 0 | |
Premiums Earned, Net, Property and Casualty | 0 | 0 | |
Investment Income, Net | 53 | 520 | |
Net realized gains (losses) | 0 | 4,971 | |
Unrealized Gain (Loss) on Investments | (2) | (2,812) | |
Other revenue | 3 | 0 | |
Revenues | 54 | 2,679 | |
Losses and loss adjustment expenses | 0 | 0 | |
Policy Acquisition Costs | 0 | 0 | |
Operating Costs and Expenses | 436 | 181 | |
General and Administrative Expense | 1,420 | 5,987 | |
Interest Expense | 9,482 | 9,465 | |
Costs and Expenses | 11,338 | 15,633 | |
Operating Income (Loss) | (11,284) | (12,954) | |
Other Income | 12,115 | 0 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 831 | (12,954) | |
Income Tax Expense (Benefit) | 25,485 | (36,605) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (24,654) | 23,651 | |
Net Income (Loss) Attributable to Noncontrolling Interest | (111) | 956 | |
Net Income (Loss) Attributable to Parent | (24,543) | 22,695 | |
Assets | $ (35,888) | $ 452,136 | $ 539,453 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Total | $ 376,463 | $ 663,602 |
US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 50,373 | |
Total | 34,011 | 49,340 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 293 |
Unrealized loss | 105 | 1,326 |
Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,383 | |
Total | 1,330 | 3,459 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 84 |
Unrealized loss | 9 | 8 |
US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 80,385 | |
Total | 51,779 | 79,896 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 592 |
Unrealized loss | 4,065 | 1,081 |
Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 26,103 | |
Total | 14,688 | 25,457 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 164 |
Unrealized loss | 1,242 | 810 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 246,933 | |
Total | 244,443 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 19 | 2,303 |
Unrealized loss | 15,739 | 4,793 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 190,383 | |
Total | 99,964 | 186,740 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 554 |
Unrealized loss | 9,136 | 4,197 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 70,569 | |
Total | 32,126 | 70,162 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 9 | 116 |
Unrealized loss | 2,788 | 523 |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 4,010 | |
Total | 931 | 4,105 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 106 |
Unrealized loss | 0 | 11 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 409,517 | 672,139 |
Total | 376,463 | 663,602 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 30 | 4,212 |
Unrealized loss | 33,084 | 12,749 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Total | $ 141,634 | $ 244,443 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities | |||
Fair Value at Sale | $ 86,622 | $ 267,198 | $ 811,260 |
Fair Value at Sale | 164,740 | 257,359 | 31,615 |
Net Fair Value at Sale | 251,362 | 524,557 | 842,875 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 725 | 7,681 | 70,785 |
Debt Securities, Available-for-sale, Realized Loss | 32,807 | 4,114 | 4,094 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | (32,082) | 3,567 | 66,691 |
Fixed Maturities | |||
Schedule of Available-for-sale Securities | |||
Fair Value at Sale | 86,532 | 221,597 | 678,736 |
Fair Value at Sale | 163,990 | 220,809 | 16,552 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 725 | 2,112 | 32,460 |
Debt Securities, Available-for-sale, Realized Loss | 32,730 | 4,050 | 478 |
Equity Securities | |||
Schedule of Available-for-sale Securities | |||
Fair Value at Sale | 0 | 12,116 | 131,178 |
Fair Value at Sale | 750 | 575 | 13,805 |
Equity Securities, FV-NI, Realized Gain | 0 | 5,569 | 38,325 |
Equity Securities, FV-NI, Realized Loss | 77 | 18 | 3,602 |
Short-term Investments | |||
Schedule of Available-for-sale Securities | |||
Fair Value at Sale | 90 | 33,485 | 1,346 |
Fair Value at Sale | 0 | 35,975 | 1,258 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | 0 |
Debt Securities, Available-for-sale, Realized Loss | $ 0 | $ 46 | $ 14 |
Investments Classified by Matur
Investments Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Total | $ 376,463 | $ 663,602 |
Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 21,362 | |
Due after one year through five years | 126,685 | |
Due after five years through ten years | 109,016 | |
Due after ten years | 8,449 | |
Asset and mortgage backed securities | 144,005 | |
Cost or adjusted/amortized cost | $ 409,517 | 672,139 |
Percent of Total | ||
Due in one year or less | 5.20% | |
Due after one year through five years | 30.90% | |
Due after five years through ten years | 26.60% | |
Due after ten years | 2.10% | |
Asset and mortgage backed securities | 35.20% | |
Total | 100% | |
Fair Value | ||
Due in one year or less | $ 21,301 | |
Due after one year through five years | 122,337 | |
Due after five years through ten years | 93,142 | |
Due after ten years | 7,593 | |
Asset or mortgage backed securities | 132,090 | |
Total | $ 376,463 | $ 663,602 |
Percent of Total | ||
Due in one year or less | 5.70% | |
Due after one year through five years | 32.50% | |
Due after five years through ten years | 24.70% | |
Due after ten years | 2% | |
Asset and mortgage backed securities | 35.10% | |
Total | 100% |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income | |||
Net investment income | $ 14,766 | $ 14,858 | $ 25,489 |
Investment expenses | (755) | (1,086) | (1,364) |
Net Investment Income | 14,011 | 13,772 | 24,125 |
Fixed Maturities | |||
Net Investment Income | |||
Net investment income | 9,482 | 12,884 | 21,789 |
Equity Securities | |||
Net Investment Income | |||
Net investment income | 914 | 695 | 2,155 |
Cash, Cash Equivalents And Short-Term Investments | |||
Net Investment Income | |||
Net investment income | 3,326 | 280 | 1,329 |
Other Investments | |||
Net Investment Income | |||
Net investment income | 1,018 | 975 | 38 |
Other Assets | |||
Net Investment Income | |||
Net investment income | $ 26 | $ 24 | $ 178 |
Investments Aging of Unrealized
Investments Aging of Unrealized Losses by Class (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
US Government and Government Agencies and Authorities | ||
Less Than Twelve Months | ||
Fair Value | $ 2,385 | $ 32,167 |
Twelve Months or More | ||
Gross unrealized losses | $ 0 | $ 355 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 3 | 39 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 105 | $ 971 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 0 | 15 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 0 | $ 8,126 |
Foreign Government Debt Securities | ||
Less Than Twelve Months | ||
Fair Value | 991 | 41,670 |
Twelve Months or More | ||
Gross unrealized losses | $ 0 | $ 320 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 1 | 63 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 9 | $ 761 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 0 | 8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 0 | $ 11,423 |
US States and Political Subdivisions Debt Securities | ||
Less Than Twelve Months | ||
Fair Value | 7,306 | 12,719 |
Twelve Months or More | ||
Gross unrealized losses | $ 3,525 | $ 464 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 21 | 14 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 540 | $ 346 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 31 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 18,853 | $ 7,708 |
Public Utility, Bonds | ||
Less Than Twelve Months | ||
Fair Value | 2,286 | 158,959 |
Twelve Months or More | ||
Gross unrealized losses | $ 1,049 | $ 204 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 8 | 205 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 193 | $ 4,589 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 4 | 12 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 5,408 | $ 7,896 |
Corporate Debt Securities | ||
Less Than Twelve Months | ||
Fair Value | 24,594 | 111,636 |
Twelve Months or More | ||
Gross unrealized losses | $ 13,460 | $ 1,559 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 78 | 138 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 2,279 | $ 2,638 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 77 | 37 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 57,765 | $ 41,786 |
Mortgage Backed Securities | ||
Less Than Twelve Months | ||
Fair Value | 15,259 | 60,566 |
Twelve Months or More | ||
Gross unrealized losses | $ 7,854 | $ 30 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 48 | 111 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,282 | $ 493 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 80 | 2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 40,856 | $ 1,596 |
Asset-backed Securities | ||
Less Than Twelve Months | ||
Fair Value | 6,397 | 90 |
Twelve Months or More | ||
Gross unrealized losses | $ 1,993 | $ 9 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 16 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 795 | $ 2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 46 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 19,028 | $ 91 |
Redeemable Preferred Stock | ||
Less Than Twelve Months | ||
Fair Value | 419,817 | |
Twelve Months or More | ||
Gross unrealized losses | $ 2,941 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 572 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 9,808 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 82 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 78,626 | |
Fixed Maturities | ||
Less Than Twelve Months | ||
Fair Value | 59,218 | |
Twelve Months or More | ||
Gross unrealized losses | $ 27,881 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 175 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 5,203 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 238 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 141,910 |
Investments by Category and Lev
Investments by Category and Level (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | $ 376,463 | $ 663,602 |
Debt Securities, Trading, and Equity Securities, FV-NI | 415,927 | 701,941 |
Equity Securities, FV-NI | 39,020 | 37,958 |
US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 34,011 | 49,340 |
Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 1,330 | 3,459 |
US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 51,779 | 79,896 |
Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 14,688 | 25,457 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 141,634 | 244,443 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 99,964 | 186,740 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 32,126 | 70,162 |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 931 | 4,105 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 376,463 | 663,602 |
Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 35,485 | 33,064 |
Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 551 | |
Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 2,984 | 4,894 |
Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 39,020 | 37,958 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 444 | 381 |
Level 1 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 24,809 | 30,381 |
Level 1 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 1 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 359 | 535 |
Level 1 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 359 | 535 |
Level 1 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 20,615 | 24,652 |
Level 1 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 551 | |
Level 1 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 2,984 | 4,894 |
Level 1 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 24,150 | 29,546 |
Level 1 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 300 | 300 |
Level 2 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 391,118 | 671,560 |
Level 2 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 34,011 | 49,340 |
Level 2 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 1,330 | 3,459 |
Level 2 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 51,779 | 79,896 |
Level 2 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 14,688 | 25,457 |
Level 2 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 141,634 | 244,443 |
Level 2 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 99,964 | 186,740 |
Level 2 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 32,126 | 70,162 |
Level 2 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 572 | 3,570 |
Level 2 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 376,104 | 663,067 |
Level 2 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 14,870 | 8,412 |
Level 2 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | |
Level 2 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 2 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 14,870 | 8,412 |
Level 2 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 144 | 81 |
Level 3 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 0 | 0 |
Level 3 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | |
Level 3 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 0 | 0 |
Level 3 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | $ 0 | $ 0 |
Investments Fair Value Inputs,
Investments Fair Value Inputs, Assets, Quantitative Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Securities without Readily Determinable Fair Value | ||
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | $ 376,463 | $ 663,602 |
Limited Partner | ||
Equity Securities without Readily Determinable Fair Value | ||
Unrealized gain | 1,590 | 1,401 |
Fair value | 16,184 | 17,625 |
Unrealized loss | 1,539 | 526 |
Debt Securities, Available-for-sale, Amortized Cost | 16,133 | 16,750 |
Certificates of Deposit | ||
Equity Securities without Readily Determinable Fair Value | ||
Unrealized gain | 0 | 0 |
Unrealized loss | 0 | 0 |
Certificates of Deposit, at Carrying Value | 300 | 300 |
Short-term Investments | ||
Equity Securities without Readily Determinable Fair Value | ||
Unrealized gain | 0 | 0 |
Unrealized loss | 1 | 0 |
Fixed maturities, available-for-sale (amortized cost of $409,517 and $672,139, respectively) | 144 | 81 |
Debt Securities, Available-for-sale, Amortized Cost | 145 | 81 |
Other Long-term Investments | ||
Equity Securities without Readily Determinable Fair Value | ||
Unrealized gain | 1,590 | 1,401 |
Unrealized loss | 1,540 | 526 |
Debt Securities, Available-for-sale, Amortized Cost | 16,578 | 17,131 |
Other Investments | $ 16,628 | $ 18,006 |
Investments Restricted Cash (De
Investments Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items | ||
Restricted Cash | $ 53,717 | $ 33,254 |
Assets Held-in-trust | 48,363 | 32,211 |
Regulatory Cash on Deposit | $ 5,354 | $ 1,043 |
Investments Equity Investments,
Investments Equity Investments, by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Investments | ||
Fair Value | $ 39,020 | $ 37,958 |
Percent of Total | 100% | 100% |
Mutual Fund | ||
Schedule of Equity Investments | ||
Fair Value | $ 35,485 | $ 33,064 |
Percent of Total | 91% | 87.10% |
Public Utility, Equities | ||
Schedule of Equity Investments | ||
Fair Value | $ 551 | |
Percent of Total | 1.40% | 0% |
Nonredeemable Preferred Stock | ||
Schedule of Equity Investments | ||
Fair Value | $ 2,984 | $ 4,894 |
Percent of Total | 7.60% | 12.90% |
Securities on deposit (Details)
Securities on deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Security Deposit | $ 3,997 | $ 2,885 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (469,966) | $ (59,868) | $ (95,498) |
Weighted-average shares-basic | 43,052,070 | 42,948,850 | 42,864,166 |
Restricted stock award | 0 | 0 | 0 |
Weighted-average shares-diluted | 43,052,070 | 42,948,850 | 42,864,166 |
Earnings Per Share, Basic | $ (10.91) | $ (1.35) | $ (2.25) |
Earnings Per Share, Diluted | $ (10.91) | $ (1.35) | $ (2.25) |
Net Income (Loss) Attributable to Parent | $ (469,855) | $ (57,919) | $ (96,454) |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Deferred policy acquisition costs, beg. balance | $ 38,520 | $ 74,414 |
Deferred Policy Acquisition Cost, Capitalization | 210,375 | 249,565 |
Amortization | (252,465) | (274,405) |
Deferred Sales Commission | 62,503 | 11,054 |
Deferred policy acquisition costs, end. balance | $ 58,933 | $ 38,520 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment | |||
Depreciation, Depletion and Amortization | $ 6,143 | $ 7,876 | $ 6,441 |
Headquarter Disposal Costs | $ 2,763 | ||
Gain on Sale of Real Estate | 12,164 | ||
Capitalized Software Disposal - Gross | 13,202 | ||
Vehicle Disposals - Gross | 1,222 | ||
Accumulated depreciation on disposed vehicles | 1,114 | ||
Accumulated depreciation on disposed real estate | 5,129 | ||
Disposed real estate - gross | $ 13,369 |
Property and equipment table (D
Property and equipment table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment | ||
Construction in Progress, Gross | $ 0 | $ 0 |
Property, Plant and Equipment, Gross | 33,007 | 57,811 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (13,416) | (26,250) |
Property, Plant and Equipment, Net | 19,591 | 31,561 |
Software in progress | 82 | 990 |
Gain on sale of vehicles | 738 | |
Accumulated Depreciation on disposed software | 12,691 | |
Land | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 0 | 2,114 |
Building | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 0 | 9,211 |
Computer Equipment | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 29,760 | 40,358 |
Office Equipment | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 1,414 | 3,067 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 753 | 753 |
Vehicles | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | $ 1,080 | $ 2,308 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 59,476 | $ 73,045 |
Goodwill, Impairment Loss | 13,569 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 3,246 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,640 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,438 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,438 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 609 |
Goowill and Intangible Assets -
Goowill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 3,247 | $ 3,555 | $ 4,267 |
Goodwill | 59,476 | 73,045 | |
Goodwill, Impairment Loss | 13,569 | ||
Goodwill - Personal Lines | 13,569 | ||
Goodwill - Commercial Lines | $ 59,476 | ||
Gain (Loss) on Disposition of Intangible Assets | $ 2,359 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (72,459) | $ (69,212) |
Finite-Lived Intangible Assets, Net | 11,371 | 14,618 |
Intangible Assets, Gross (Excluding Goodwill) | 83,830 | 83,830 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 1,398 | 3,757 |
Intangible Assets, Net (Excluding Goodwill) | 12,770 | 18,375 |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 42,788 | 42,788 |
Finite-Lived Intangible Assets, Accumulated Amortization | (42,788) | (42,788) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 34,661 | 34,661 |
Finite-Lived Intangible Assets, Accumulated Amortization | (24,301) | (21,863) |
Finite-Lived Intangible Assets, Net | $ 10,360 | $ 12,798 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 4 months | 5 years 4 months |
Trade Names | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 6,381 | $ 6,381 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,370) | (4,561) |
Finite-Lived Intangible Assets, Net | $ 1,011 | $ 1,820 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 1 year 4 months | 2 years 4 months |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Ceded Losses and LAE Incurred | $ 1,758,194 | $ 911,441 | $ 645,204 | |
Commission and Fees on Flood Revenue | 919 | $ 1,501 | $ 1,467 | |
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | $ 2,500,000 | |||
Event Retention Level | 16,400 | |||
Interboro Insurance | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Event Retention Level | 3,000 | |||
Interboro Insurance | Catastrophe Excess of Loss | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | $ 200,000 |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Reinsurance Disclosures [Abstract] | |||
Reinsurance Recoverables on Unpaid Losses | $ 1,431,000 | $ 749,600 | $ 674,746 |
Reinsurance Recoverables on Paid Losses | 200,408 | 247,520 | |
Reinsurance recoverable on paid and unpaid losses | $ 1,631,408 | $ 997,120 |
Effects of Reinsurance on Premi
Effects of Reinsurance on Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
Direct Premiums Written | $ 1,123,537 | $ 1,329,129 | $ 1,411,558 |
Assumed Premiums Written | 526 | 316 | 45,305 |
Ceded Premiums Written | (542,954) | (864,725) | (755,871) |
Premiums Written, Net | 464,720 | 700,992 | |
Increase (Decrease) in Direct Unearned Premiums | 98,478 | 59,547 | (66,483) |
Increase (Decrease) in Assumed Unearned Premiums | 642 | 19,451 | 16,600 |
Increase (Decrease) in Ceded Unearned Premiums | (217,603) | 46,043 | 114,554 |
Increase (Decrease) in Unearned Premiums | (118,483) | 125,041 | 64,671 |
Direct Premiums Earned, Property and Casualty | 1,222,015 | 1,388,676 | 1,345,075 |
Assumed Premiums Earned, Property and Casualty | 1,168 | 19,767 | 61,905 |
Ceded Premiums Earned | (760,557) | (818,682) | (641,317) |
Premiums Earned, Net | 462,626 | 589,761 | 765,663 |
Direct Losses and LAE Incurred | 2,389,152 | 1,319,606 | 1,186,401 |
Assumed Losses and LAE Incurred | 6,689 | 13,969 | 67,119 |
Ceded Losses and LAE Incurred | (1,758,194) | (911,441) | (645,204) |
Net Losses and LAE Incurred | $ 637,647 | $ 422,134 | $ 608,316 |
Effects of Reinsurance on Losse
Effects of Reinsurance on Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||||
Net Direct Unpaid Losses and LAE | $ 1,942,612 | $ 1,062,567 | $ 1,042,994 | |
Net Assumed Unpaid Losses and LAE | 4,326 | 21,883 | 46,972 | |
Unpaid losses and loss adjustment expenses | 1,946,938 | 1,084,450 | 1,089,966 | $ 760,357 |
Net Ceded Unpaid Losses and LAE | (1,431,000) | (749,600) | (674,746) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 515,938 | 334,850 | 415,220 | $ 278,042 |
Direct Unearned Premiums, Net | 545,587 | 644,065 | 703,612 | |
Assumed Unearned Premiums, Net | 233 | 875 | 20,326 | |
Unearned Premiums, Gross | 545,820 | 644,940 | 723,938 | |
Ceded Unearned Premiums, Net | (213,028) | (430,631) | (384,588) | |
Unearned Premiums, Net | $ 332,792 | $ 214,309 | $ 339,350 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Current Year Claims and Claims Adjustment Expense | $ 394,278 | $ 615,102 | ||
Prior Year Claims and Claims Adjustment Expense | 27,856 | (6,786) | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | $ 637,647 | 422,134 | 608,316 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 188,374 | 202,202 | 320,389 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 268,185 | 300,302 | 150,749 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 502,504 | 471,138 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 515,938 | 334,850 | 415,220 | $ 278,042 |
Reinsurance Recoverable on Unpaid Losses and LAE | 482,315 | |||
Unpaid losses and loss adjustment expenses | 1,946,938 | 1,084,450 | 1,089,966 | $ 760,357 |
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | 578,698 | 384,393 | 392,717 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 1,368,240 | 700,057 | 697,249 | |
Reinsurance Recoverables on Unpaid Losses | $ 1,431,000 | $ 749,600 | $ 674,746 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expense - Claims Development (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Claims Development | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 504,782,000 | $ 323,340,000 | ||||||||
Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 477,575,000 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 80,256,000 | 72,390,000 | ||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 397,319,000 | |||||||||
Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,976,312,000 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 424,526,000 | 250,950,000 | ||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 2,551,990,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 0 | |||||||||
Short-duration Insurance Contracts, Accident Year 2013 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 204,000 | |||||||||
Short-duration Insurance Contracts, Accident Year 2014 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 7,326,000 | 7,328,000 | $ 7,262,000 | $ 7,263,000 | $ 7,426,000 | $ 7,573,000 | $ 8,382,000 | $ 11,826,000 | $ 6,420,000 | $ 8,359,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 741 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 7,326,000 | 7,327,000 | 7,261,000 | 7,262,000 | 7,256,000 | 7,254,000 | 7,248,000 | 5,317,000 | 5,127,000 | 2,958,000 |
Short-duration Insurance Contracts, Accident Year 2014 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 99,451,000 | 99,464,000 | 99,338,000 | 99,187,000 | 98,706,000 | 98,649,000 | 98,438,000 | 98,442,000 | 100,572,000 | 105,118,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 11,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 8,893 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 99,040,000 | 99,021,000 | 98,666,000 | 98,424,000 | 97,945,000 | 97,415,000 | 96,193,000 | 93,879,000 | 89,842,000 | $ 66,657,000 |
Short-duration Insurance Contracts, Accident Year 2015 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 15,611,000 | 15,618,000 | 15,604,000 | 15,602,000 | 16,070,000 | 16,816,000 | 16,311,000 | 15,752,000 | 15,845,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 680 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 15,611,000 | 15,606,000 | 15,475,000 | 15,460,000 | 15,336,000 | 14,420,000 | 13,212,000 | 9,452,000 | 6,379,000 | |
Short-duration Insurance Contracts, Accident Year 2015 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 140,712,000 | 140,507,000 | 140,695,000 | 140,354,000 | 139,967,000 | 140,052,000 | 139,418,000 | 138,415,000 | 139,163,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 67,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 13,470 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 140,639,000 | 140,346,000 | 139,812,000 | 139,137,000 | 138,257,000 | 137,534,000 | 133,819,000 | 125,849,000 | $ 92,383,000 | |
Short-duration Insurance Contracts, Accident Year 2016 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 28,680,000 | 28,350,000 | 26,910,000 | 26,332,000 | 26,614,000 | 24,563,000 | 20,379,000 | 16,504,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 275,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 821 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 28,024,000 | 27,303,000 | 25,269,000 | 23,605,000 | 22,978,000 | 20,640,000 | 17,134,000 | 10,188,000 | ||
Short-duration Insurance Contracts, Accident Year 2016 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 217,302,000 | 217,223,000 | 217,198,000 | 216,278,000 | 215,894,000 | 215,221,000 | 215,680,000 | 201,328,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 217,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 20,341 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 216,833,000 | 216,011,000 | 214,817,000 | 213,968,000 | 211,040,000 | 207,021,000 | 193,127,000 | $ 134,992,000 | ||
Short-duration Insurance Contracts, Accident Year 2017 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 38,526,000 | 23,945,000 | 23,397,000 | 23,816,000 | 22,578,000 | 25,043,000 | 37,837,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 392,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,140 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 38,063,000 | 23,506,000 | 22,266,000 | 21,410,000 | 19,114,000 | 16,217,000 | 10,638,000 | |||
Short-duration Insurance Contracts, Accident Year 2017 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 275,316,000 | 275,142,000 | 273,797,000 | 271,795,000 | 271,207,000 | 269,283,000 | 267,124,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 528,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 31,129 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 272,567,000 | 271,536,000 | 268,953,000 | 267,015,000 | 261,089,000 | 248,852,000 | $ 183,238,000 | |||
Short-duration Insurance Contracts, Accident Year 2018 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 91,545,000 | 87,833,000 | 83,286,000 | 78,970,000 | 72,135,000 | 70,650,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,541,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,240 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 84,933,000 | 80,460,000 | 73,683,000 | 64,329,000 | 62,353,000 | 40,467,000 | ||||
Short-duration Insurance Contracts, Accident Year 2018 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 297,468,000 | 295,511,000 | 288,161,000 | 280,048,000 | 273,512,000 | 261,689,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,812,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 83,534 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 293,474,000 | 286,362,000 | 275,698,000 | 263,657,000 | 251,530,000 | $ 177,516,000 | ||||
Short-duration Insurance Contracts, Accident Year 2019 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 84,727,000 | 68,384,000 | 69,203,000 | 64,964,000 | 61,778,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 295,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,669 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 82,443,000 | 66,848,000 | 61,885,000 | 54,551,000 | 27,852,000 | |||||
Short-duration Insurance Contracts, Accident Year 2019 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 344,943,000 | 339,347,000 | 333,763,000 | 324,877,000 | 299,141,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,904,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 53,064 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 335,531,000 | 331,438,000 | 318,619,000 | 297,871,000 | $ 219,513,000 | |||||
Short-duration Insurance Contracts, Accident Year 2020 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 41,424,000 | 68,900,000 | 70,515,000 | 76,515,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,878,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 5,175 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 34,768,000 | 62,133,000 | 57,041,000 | 38,428,000 | ||||||
Short-duration Insurance Contracts, Accident Year 2020 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 350,005,000 | 332,682,000 | 316,649,000 | 344,912,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 14,441,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 44,328 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 326,540,000 | 309,014,000 | 270,923,000 | $ 202,105,000 | ||||||
Short-Duration Insurance Contract, Accident Year 2019 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 66,177,000 | 68,165,000 | 67,573,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ (6,017,000) | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,640 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 69,903,000 | 46,535,000 | 25,068,000 | |||||||
Short-Duration Insurance Contract, Accident Year 2019 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 526,579,000 | 452,090,000 | 484,372,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 28,642,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 57,085 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 479,639,000 | 414,666,000 | $ 244,512,000 | |||||||
Short-Duration Insurance Contract, Accident Year 2020 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 38,304,000 | 53,338,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,154,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,770 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 28,506,000 | 19,754,000 | ||||||||
Short-Duration Insurance Contract, Accident Year 2020 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 326,446,000 | 313,527,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 47,388,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 57,485 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 259,094,000 | $ 146,582,000 | ||||||||
Short-Duration Insurance Contract, Accident Year 2021 | Property and Casualty, Commercial Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 65,255,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 53,640,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,401 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 7,742,000 | |||||||||
Short-Duration Insurance Contract, Accident Year 2021 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 398,090,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 229,083,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 39,597 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 128,633,000 |
Liability for Unpaid Losses a_5
Liability for Unpaid Losses and Loss Adjustment Expenses - Percentage Payout (Details) | Dec. 31, 2022 |
Property and Casualty, Personal Insurance Product Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 58% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 27.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 8.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 3.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 1.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0% |
Property and Casualty, Commercial Insurance Product Line | |
Short-duration Insurance Contracts, Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 40.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 26% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 12% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | (0.30%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 6% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 11.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 1.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0% |
Liability for Unpaid Losses a_6
Liability for Unpaid Losses and Loss Adjustment Expense - Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | $ 1,431,000 | $ 749,600 | $ 674,746 | |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 504,782 | 323,340 | ||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 11,156 | 11,510 | ||
Unpaid losses and loss adjustment expenses | 1,946,938 | 1,084,450 | $ 1,089,966 | $ 760,357 |
Property and Casualty, Commercial Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | 731,580 | 153,256 | ||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 80,256 | 72,390 | ||
Property and Casualty, Personal Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | 699,420 | 596,344 | ||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 424,526 | $ 250,950 |
Long-Term Debt, Fiscal Year Mat
Long-Term Debt, Fiscal Year Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 1,176 | |
2022 | 1,176 | |
2023 | 1,176 | |
2024 | 590 | |
2025 | 150,000 | |
Thereafter | 0 | |
Total debt | $ 154,118 | $ 158,559 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | May 26, 2016 | Sep. 22, 2006 |
Debt Instrument | ||||
Notes Payable, Noncurrent | $ 152,473 | $ 156,561 | ||
BB&T Term Note Payable | ||||
Debt Instrument | ||||
Notes Payable, Noncurrent | $ 5,200 | |||
SBA Note Payable | ||||
Debt Instrument | ||||
Notes Payable, Noncurrent | $ 20,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.76% | |||
150M Senior Notes | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.25% |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | |||
Debt Issuance Costs, Net | $ 1,645 | $ 1,998 | $ 2,335 |
Debt Issuance Costs, Gross | 0 | 0 | |
Accumulated Amortization, Debt Issuance Costs | $ (353) | $ (337) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument | ||
Long-term Debt | $ 154,118 | $ 158,559 |
BB&T Term Note Payable | ||
Debt Instrument | ||
Debt Instrument, Maturity Date | May 26, 2031 | |
Long-term Debt, Fair Value | $ 0 | 3,265 |
SBA Note Payable | ||
Debt Instrument | ||
Debt Instrument, Maturity Date | Jul. 01, 2026 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.76% | |
Long-term Debt, Fair Value | $ 4,118 | 5,294 |
150M Senior Notes | ||
Debt Instrument | ||
Debt Instrument, Maturity Date | Dec. 15, 2027 | |
Debt Instrument, Interest Rate, Effective Percentage | 7.25% | |
Long-term Debt, Fair Value | $ 150,000 | $ 150,000 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss Allowance Activity [Line Items] | |||
Premium Receivable, Allowance for Credit Loss | $ 69 | $ 32 | $ 140 |
Charged to Costs and Expenses | (217) | (190) | |
Premium Receivable, Allowance for Credit Loss, Writeoff | 254 | 82 | |
Reinsurance Recoverable, Allowance for Credit Loss | 603 | 563 | 386 |
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 40 | 177 | |
Reinsurance recoverable, allowance for credit loss, writeoff | 0 | 0 | |
Financing Receivable, Allowance for Credit Loss | 0 | 0 | 20 |
Financing Receivable, Credit Loss, Expense (Reversal) | (20) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Total Credit Loss Allowances | 672 | 595 | $ 546 |
Change in Credit Loss Allowance | (177) | (33) | |
Total Credit Loss Allowance Writeoffs | $ 254 | $ 82 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ (171) | $ (2,207) | $ (27,310) |
Deferred Federal Income Tax Expense (Benefit) | 18,823 | (18,830) | (6,611) |
Federal Income Tax Expense (Benefit), Continuing Operations | 18,652 | (21,037) | (33,921) |
Current State and Local Tax Expense (Benefit) | 1,518 | 1,033 | 598 |
Deferred State and Local Income Tax Expense (Benefit) | 5,315 | (3,985) | (3,282) |
State and Local Income Tax Expense (Benefit), Continuing Operations | 6,833 | (2,952) | (2,684) |
Income Tax Expense (Benefit) | 25,485 | (23,989) | $ (36,605) |
Deferred tax assets: | |||
Deferred Tax Asset, Unearned Premiums | 16,115 | 10,326 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 5,505 | 3,121 | |
Deferred Tax Asset, Bad Debt Expense | 1,077 | 144 | |
Deferred Tax Asset, Other-than-temporary-impairment | 5,500 | 0 | |
Deferred Tax Assets, Other | 1,541 | 789 | |
Deferred Tax Assets, Gross | 21,938 | 43,782 | |
Deferred tax liabilities: | |||
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (14,743) | (10,356) | |
Deferred Tax Liabilities, Intangible Assets | (2,823) | (3,607) | |
Deferred Tax Liabilities, Gross | 22,115 | 19,867 | |
Deferred Tax Liabilities, Property, Plant and Equipment | $ (3,743) | (4,990) | |
Deferred Tax Assets, Net | $ (23,915) |
Tax Expense Reconciliation (Det
Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (93,341) | $ (17,610) | $ (27,741) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (13,899) | (1,176) | (3,603) |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | (73) | (59) | (141) |
Effective income tax rat reconciliation, Non-Deductible Goodwill | 2,848 | (2) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 241 | 127 | 600 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Amount | 469 | 1,053 | 2,230 |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | 0 | 0 | 12,566 |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | 50 | 134 | 280 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 128,993 | (1,352) | 5,505 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | (380) | (721) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 110 | (1,386) | (358) |
Other Tax Expense (Benefit) | (2) | 0 | 0 |
Income Tax Expense (Benefit) | 25,485 | (23,989) | (36,605) |
Investment Company, Distributable Earnings | $ 189 | $ (964) | $ 470 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Asset, Unearned Premiums | $ 16,115 | $ 10,326 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 5,505 | 3,121 |
Deferred Tax Assets, in Process Research and Development | 1,610 | 1,990 |
Deferred Tax Asset, Bad Debt Expense | 1,077 | 144 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 474 | 405 |
Deferred Tax Asset, Other-than-temporary-impairment | 5,500 | 0 |
Deferred Tax Assets, Investments | 2,620 | 344 |
Deferred Tax Assets, Other Loss Carryforwards | 5,958 | 5,103 |
Deferred Tax Assets, Operating Loss Carryforwards | 112,804 | 25,472 |
Deferred Tax Assets, Other | 1,541 | 789 |
Deferred Tax Assets, Gross (Pre Allowance) | 161,972 | 48,924 |
Deferred Tax Assets, Gross | 21,938 | 43,782 |
Deferred Tax Assets, Valuation Allowance | (140,034) | (5,142) |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (14,743) | (10,356) |
Deferred Tax Liabilities, Intangible Assets | (2,823) | (3,607) |
Deferred Tax Liabilities, Property, Plant and Equipment | (3,743) | (4,990) |
Deferred Tax Liabilities, Prepaid Expenses | (744) | (837) |
Deferred Tax Liabilities, Investments | (62) | (77) |
Deferred Tax Liabilities, Property, Plant and Equipment | (3,743) | (4,990) |
Deferred Tax Liabilities, Gross | (22,115) | (19,867) |
Deferred Tax Liabilities, Net | $ (177) | |
Deferred Tax Assets, Net | $ 23,915 |
Unrecognized Tax Benefit (Detai
Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Tax Benefit [Line Items] | ||
Unrecognized Tax Benefits | $ 666 | $ 834 |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ (168) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Unrecognized Tax Benefit [Line Items] | |
Business Tax Credits Subject to Expiration | $ 0 |
Federal | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 1,101 |
Unrecognized Tax Benefit [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 1,101 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ (135,943) | $ 341,630 | |
Statutory Accounting Practices, Statutory Net Income Amount | (455,706) | (83,958) | $ (28,326) |
UPC Insurance | |||
Statutory Accounting Practices | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | (239,606) | 169,244 | |
Statutory Accounting Practices, Statutory Net Income Amount | (469,801) | (45,078) | (19,487) |
American Coastal Insurance Company | |||
Statutory Accounting Practices | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 77,511 | 142,138 | |
Statutory Accounting Practices, Statutory Net Income Amount | 16,516 | (34,588) | (7,429) |
Interboro Insurance | |||
Statutory Accounting Practices | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 26,152 | 30,248 | |
Statutory Accounting Practices, Statutory Net Income Amount | (2,421) | $ (4,292) | $ (1,410) |
UPC, Subsidiary | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 0 | ||
American Coastal Insurance Company | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 19,603 | ||
Interboro Insurance Company | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 20,774 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments, Due in Two Years | $ 927 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 590 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 220 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 0 | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 2 | |
Total Lease Future Payments Year 1 | 929 | |
Finance Lease, Liability, Payments, Due Year Two | 0 | |
Total Lease Future Payments Year 2 | 590 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 0 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Total Lease Future Payments Thereafter | 0 | |
Operating Leases, Future Minimum Payments Due | 1,747 | |
Finance Lease, Liability, Payment, Due | 2 | |
Total Lease Future Payments | 1,749 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (58) | |
Finance Lease, Liability, Undiscounted Excess Amount | 0 | |
Total Lease Liability Undiscounted Excess Amount | (58) | |
Operating Lease, Liability | 1,689 | $ 1,934 |
Finance Lease, Liability | 2 | 16 |
Total Lease Liability | 1,691 | $ 1,950 |
Finance Lease, Liability, Payments, Due Year Three | 0 | |
Total Lease Future Payments Year 3 | 220 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 10 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Total Lease Future Payments Year 4 | 10 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Total Lease Future Payments Year 5 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies Lease, Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Costs [Abstract] | ||
Operating Lease, Expense | $ 943 | $ 654 |
Finance Lease, Right-of-Use Asset, Amortization | 358 | 758 |
Finance Lease, Interest Expense | 1 | 1 |
Short-term Lease, Cost | 0 | 0 |
Lease, Cost | $ 1,302 | $ 1,413 |
Commitments and Contingencies_3
Commitments and Contingencies Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lease Assets and Liabilities [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 1,278 | $ 1,689 |
Finance Lease, Right-of-Use Asset | 51 | 477 |
Total Lease Assets | 1,329 | 2,166 |
Operating Lease, Liability | 1,689 | 1,934 |
Finance Lease, Liability | 2 | 16 |
Total Lease Liability | $ 1,691 | $ 1,950 |
Commitments and Contingencies W
Commitments and Contingencies Weighted Average Lease Terms (Details) | Dec. 31, 2022 Rate | Dec. 31, 2021 Rate |
Weighted Average Lease Terms [Abstract] | ||
Operating Lease, Weighted Average Discount Rate, Percent | 2 years 1 month | |
Finance Lease, Weighted Average Discount Rate, Percent | 3.27% | 3.27% |
Finance Lease, Weighted Average Remaining Lease Term | 9 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.79% | 3.61% |
Commitments and Contingencies_4
Commitments and Contingencies Lease Liability Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Lease Liability Activity [Abstract] | ||
Finance Lease, Principal Payments | $ 0 | $ 68 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 0 | 14 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0 | $ 70 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.79% | 3.61% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.27% | 3.27% |
Employee Benefit Plan - Narrati
Employee Benefit Plan - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plan [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 100% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5% | ||
Defined Contribution Plan, Cost | $ 1,630 | $ 1,229 | $ 1,381 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit | $ (2,094) | $ (2,062) | $ 3,096 | $ 3,643 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (30,947) | (6,531) | 9,693 | 11,319 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | (56,600) | (18,267) | 64,726 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | (32,082) | 3,567 | 66,691 | |
AOCI before Tax, Attributable to Parent | (33,041) | (8,593) | 12,789 | $ 14,962 |
Consolidated Entity Excluding Noncontrolling Interests | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 56,530 | 17,814 | (64,421) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | (32,082) | 3,568 | 66,594 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (8,021) | 892 | 16,648 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (24,061) | 2,676 | 49,946 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 48,477 | 13,548 | (48,320) | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax | $ 8,053 | $ 4,266 | $ (16,101) |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) - 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 | |
Dividend paid to parent | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 | $ 0 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Dividends, Common Stock, Cash | $ 0 | $ 0 | $ 0 | $ 2,589 | $ 2,588 | $ 2,589 | $ 2,591 | $ 2,582 | $ 2,583 | $ 2,581 | $ 2,578 | $ 2,571 | $ 2,589 | $ 10,350 | $ 10,313 |
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 | $ 0 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Dividends, Common Stock, Cash | $ 0 | $ 0 | $ 0 | $ 2,589 | $ 2,588 | $ 2,589 | $ 2,591 | $ 2,582 | $ 2,583 | $ 2,581 | $ 2,578 | $ 2,571 | $ 2,589 | $ 10,350 | $ 10,313 |
Stock Based Compensation Expens
Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 8 months | 9 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years 1 month | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 25 | $ 39 | $ 112 |
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 2,024 | ||
Share-based Payment Arrangement, Expense | 1,230 | 875 | 876 |
Share-based Payment Arrangement, Expense, after Tax | 972 | 691 | 692 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 36 | ||
Share-based Payment Arrangement, Expense | 158 | 310 | 506 |
Share-based Payment Arrangement, Expense, after Tax | $ 125 | $ 245 | $ 400 |
Stock-Based Compensation Non-Ve
Stock-Based Compensation Non-Vested Common Stock Grants (Details) - Restricted Stock - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted shares | 907,907 | 292,960 | 386,101 | |
Granted (fair value | $ 1.97 | $ 6.01 | $ 9.33 | |
Less: Forfeited shares | 383,876 | 122,460 | 232,323 | |
Less: Forfeited (fair value) | $ 3.43 | $ 8.87 | $ 12.61 | |
Less: Vested shares | 146,388 | 92,910 | 109,267 | |
Less: Vested (fair value) | $ 6 | $ 9.99 | $ 16.63 | |
Outstanding shares | 714,239 | 336,596 | 259,006 | 214,495 |
Outstanding (fair value) | $ 2.73 | $ 6.99 | $ 10.06 | $ 17.49 |
Stock-Based Compensation Weight
Stock-Based Compensation Weighted-Average Assumptions - Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2022 Rate | Dec. 31, 2021 Rate | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.79% | 3.61% |
Expected annual dividend yield | 0.65% | |
Expected volatility | 49.66% | 46.63% |
Risk-free interest rate | 2.92% | 1.16% |
Expected term | 6 years | 6 years |
Stock-Based Compensation Non-_2
Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range | ||||
Granted Shares | 635,643 | 1,054,707 | 221,541 | |
Outstanding Shares | 1,250,685 | 1,147,215 | 144,006 | 207,069 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding (Weighted-Average Exercise) | $ 3.71 | $ 4.80 | $ 13 | $ 18.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 792,000 | $ 0 | $ 0 |
Granted (Weighted-Average Exercise) | $ 1.70 | $ 3.86 | $ 8.77 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | 0 | 0 | 0 | |
Less: Vested (Weighted-Average Grant Date) | $ 1.70 | $ 3.86 | $ 2.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 426,480 | 48,995 | 234,472 | |
Less: Forfeited (Weighted-Average Exercise) | $ 2.91 | $ 8.08 | $ 12.76 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 532,797 | 120,638 | 80,728 | |
Less: Vested (Weighted-Average Exercise) | $ 7.26 | $ 15.87 | $ 19.01 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 | |
Exercisable Shares | 432,786 | 68,003 | 30,596 | |
Exercisable (Weighted-Average Exercise) | $ 5.25 | $ 15.85 | $ 19.11 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 105,693 | 2,503 | 50,132 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 6.65 | $ 16.25 | $ 18.94 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event | |||
Number of Policies assumed by Slide Insurance Co. | $ 72,000 | ||
Change in Policy Acquisition Costs from Earnings Release | 1,856,000 | ||
change in | 885,000 | ||
Change in Unpaid Losses from Earnings Release | 971,000 | ||
Earnings Release - Policy Acquisition Costs | 154,233,000 | ||
Policy Acquisition Costs | $ 156,089,000 | $ 173,574,000 | $ 236,002,000 |