Document & Entity Information
Document & Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document and Entity Information [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 800 2nd Avenue S. | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Trading Symbol | ACIC | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Registrant Name | American Coastal Insurance Corporation | |
City Area Code | 727- | |
Local Phone Number | 633-0851 | |
Central Index Key | 0001401521 | |
Filer Category | Accelerated Filer | |
Common Stock, Shares, Outstanding | 47,828,491 | |
Document Transition Report | false | |
Entity File Number | 001-35761 | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Address, City or Town | St. Petersburg, | |
Entity Address, State or Province | FL | |
Entity Tax Identification Number | 75-3241967 | |
Entity Address, Postal Zip Code | 33701 | |
Document Period End Date | Mar. 31, 2024 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, at fair value: | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | $ 178,316 | $ 180,703 |
Equity Securities, FV-NI | 6,214 | 0 |
Other investments (amortized cost of $16,780 and $17,131 | 14,217 | 16,487 |
Total investments | 198,747 | 197,190 |
Cash and Cash Equivalents | 285,400 | 153,762 |
Restricted Cash | 20,309 | 18,070 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 305,709 | 171,832 |
Accrued Investment Income | 2,534 | 2,104 |
Property and equipment, net | 10,351 | 3,658 |
Premiums receivable, net | 53,990 | 47,274 |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 257,090 | 341,102 |
Ceded uneared premiums | 137,760 | 159,147 |
Goodwill | 59,476 | 59,476 |
Deferred policy acquisition costs | 27,290 | 25,041 |
Intangible Assets, Net (Excluding Goodwill) | 8,511 | 9,323 |
Other assets, net | 15,853 | 36,141 |
Total Assets | 1,077,311 | 1,060,383 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 279,556 | 370,221 |
Unearned Premiums | 321,693 | 293,057 |
Reinsurance Payable | 38,387 | 317 |
Payments outstanding | 1,971 | 2,116 |
Accounts Payable | 81,725 | 75,284 |
Operating Lease, Liability | 105 | 776 |
Other Liabilities | 1,111 | 1,159 |
Notes Payable | 148,771 | 148,688 |
Total Liabilities | 873,319 | 891,618 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $0.0001 par value; 1,000,000 shares authorized | 0 | 0 |
Common Stock, $0.0001 par value; 100,000,000 shares authorized | 5 | 5 |
Additional Paid in Capital | 435,543 | 423,717 |
Treasury shares, at cost; 212,083 shares | (431) | (431) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (17,335) | (17,137) |
Retained Earnings | (213,790) | (237,389) |
Total Stockholders' Equity | 203,992 | 168,765 |
Total Liabilities and Stockholders' Equity | 1,077,311 | 1,060,383 |
Disposal Group, Including Discontinued Operation, Assets | 0 | 8,095 |
Disposal Group, Including Discontinued Operation, Liabilities | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 48,011,548 | 46,989,089 |
Common Stock, Shares, Outstanding | 47,799,465 | 46,777,006 |
Treasury stock | 212,000 | 212,083 |
Financing Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Premium Receivable, Allowance for Credit Loss | 53 | 51 |
Reinsurance Recoverable, Allowance for Credit Loss | 65 | 97 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 198,750 | 200,951 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | $ 14,121 | $ 16,118 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE: | ||
Other revenue | $ 16 | $ 16 |
Gain (Loss) on Investments | 0 | (83) |
Investment Income, Net | 4,508 | 2,589 |
Premiums Earned, Net, Property and Casualty | 68,730 | 87,324 |
Ceded Premiums Earned | 100,092 | 57,152 |
Gross premiums earned | 168,822 | 144,476 |
Gross premiums written | 197,458 | 187,123 |
Unearned premiums | (28,636) | (42,647) |
Change in gross unearned premiums | 28,636 | 42,647 |
Gross premiums earned | 168,822 | 144,476 |
Ceded premiums earned | (100,092) | (57,152) |
Net premiums earned | 68,730 | 87,324 |
Total revenue | (73,204) | (90,320) |
EXPENSES: | ||
Costs and Expenses | 42,800 | 57,064 |
General and administrative expenses | 9,573 | 8,793 |
Operating Costs and Expenses | 2,809 | 2,168 |
Policy acquisition costs | 11,793 | 26,972 |
Policyholder Benefits and Claims Incurred, Net | 15,906 | 16,412 |
Interest expense | 2,719 | 2,719 |
Interest expense | (2,719) | (2,719) |
Total expenses | 42,800 | 57,064 |
Income (loss) before other income | 30,404 | 33,256 |
Other income | 810 | 588 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 31,214 | 33,844 |
Provision for income taxes | 7,615 | 3,477 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 23,599 | 30,367 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 0 | 236,913 |
Net income (loss) | 23,599 | 267,280 |
OTHER COMPREHENSIVE INCOME: | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 23,401 | 271,594 |
Reclassification adjustment for net realized investment (gains) losses | 0 | (83) |
Income tax benefit (expense) related to items of other comprehensive income | 0 | 0 |
Change in net unrealized gains (losses) on investments | (198) | 4,231 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 23,401 | $ 271,594 |
Weighted-average shares outstanding | ||
Weighted-average shares outstanding | 47,323,356 | 43,124,825 |
Weighted-average diluted shares | 48,969,550 | 43,574,840 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.50 | $ 0.70 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 5.49 |
Earnings Per Share | ||
Diluted earnings per share | 0.48 | 6.14 |
Basic earnings per share | 0.50 | 6.19 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.48 | 0.70 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 5.44 |
Diluted earnings per share | $ 0.48 | $ 6.14 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock, Common | Comprehensive Income | Retained Earnings |
Common Stock, Shares, Outstanding | 43,280,173 | |||||
Stockholders' Equity Attributable to Parent | $ (182,039) | $ 4 | $ 395,631 | $ (431) | $ (30,947) | $ (546,296) |
Net Income (Loss), Parent | 267,280 | 267,280 | ||||
Other Comprehensive Income (Loss), Parent | 4,314 | 4,314 | ||||
Impact of Deconsolidation on OCI - Discontinued Operations. | 1,004 | (1,004) | ||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | (5,814) | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 335 | 335 | ||||
Proceeds from Issuance of Common Stock | 0 | |||||
Common Stock, Shares, Outstanding | 43,274,359 | |||||
Stockholders' Equity Attributable to Parent | $ 89,890 | $ 4 | 395,966 | (431) | (25,629) | (280,020) |
Common Stock, Shares, Outstanding | 46,777,006 | 46,777,006 | ||||
Stockholders' Equity Attributable to Parent | $ 168,765 | $ 5 | 423,717 | (431) | (17,137) | (237,389) |
Net Income (Loss), Parent | 23,599 | 23,599 | ||||
Other Comprehensive Income (Loss), Parent | (198) | (198) | ||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 22,459 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 428 | 428 | ||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | |||||
Proceeds from Issuance of Common Stock | $ 11,398 | 11,398 | ||||
Common Stock, Shares, Outstanding | 47,799,465 | 47,799,465 | ||||
Stockholders' Equity Attributable to Parent | $ 203,992 | $ 5 | $ 435,543 | $ (431) | $ (17,335) | $ (213,790) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flows Information | ||
Proceeds from Income Tax Refunds | $ (7,170) | |
Interest Paid | 0 | $ 0 |
Income taxes paid | 5,325 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 133,877 | (141,354) |
Cash, Cash Equivalents, Restricted Cash at end of period | 305,709 | |
Cash, Cash Equivalents, Restricted Cash at beginning of period | 171,832 | |
FINANCING ACTIVITIES | ||
Proceeds from Issuance of Common Stock | 11,398 | 0 |
Net Cash Provided by (Used in) Financing Activities | 11,398 | 0 |
INVESTING ACTIVITIES | ||
Proceeds from Divestiture of Businesses, Net of Cash Divested | 0 | (232,582) |
Proceeds from sales and maturities of fixed maturities | 1,956 | 178,211 |
Proceeds from Sale of Equity Securities, FV-NI | 0 | 24,163 |
Proceeds from Sale and Maturity of Other Investments | 2,043 | 227 |
Payments to Acquire Fixed Maturities, Available-for-sale | 0 | (7,439) |
Payments to Acquire Equity Securities, FV-NI | (6,004) | (80) |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 464 |
Cost of property, equipment and capitalized software acquired | 0 | (154) |
Net cash provided by (used in) investing activities | (2,005) | (37,190) |
Changes in operating assets and liabilities: | ||
Accrued investment income | (430) | 369 |
Premiums receivable | (6,714) | 15,178 |
Reinsurance recoverable on paid and unpaid losses | 83,980 | 289,946 |
Ceded unearned premiums | 21,387 | 72,064 |
Deferred policy acquisition costs, net | (2,249) | (875) |
Other assets | 20,548 | (31,630) |
Unpaid losses and loss adjustment expenses | (90,665) | (278,142) |
Unearned premiums | 28,636 | (145,540) |
Reinsurance payable | 38,070 | (13,376) |
Payments outstanding | (145) | (68,493) |
Accounts Payable | 6,441 | 16,440 |
Change in Operating Lease Liability | (671) | (277) |
Other liabilities | (48) | (3,561) |
Net cash provided by operating activities | 124,484 | (104,164) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,168 | 2,155 |
Bond amortization and accretion | 200 | 160 |
Net realized gains (losses) | 0 | (1,260) |
Unrealized Gain (Loss) on Investments | 50 | (2,554) |
Provision for uncollectable premiums/over and short | (2) | 5 |
Reinsurance Recoverable Change in Credit Loss Allowance | 32 | 183 |
Deferred income taxes, net | (260) | 15,767 |
Stock based compensation | 428 | 335 |
Gain on sale of building | 0 | (422) |
Gain (Loss) on Disposition of Assets | 129 | 524 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | (238,440) |
Net Income (Loss), Parent | 23,599 | 267,280 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 305,709 | |
Continuing Operations | ||
Supplemental Cash Flows Information | ||
Cash, Cash Equivalents, Restricted Cash at end of period | 305,709 | 142,257 |
Cash, Cash Equivalents, Restricted Cash at beginning of period | 171,832 | 283,611 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Net Income (Loss), Parent | 23,599 | 30,367 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 305,709 | $ 142,257 |
Organization, Consolidation and
Organization, Consolidation and Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | ORGANIZATION, CONSOLIDATION AND PRESENTATION (a) Business American Coastal Insurance Corporation (referred to in this document as we, our, us, the Company or ACIC) is a property and casualty insurance holding company that sources, writes and services residential commercial and personal property and casualty insurance policies using a network of agents and two wholly-owned insurance subsidiaries. On July 10, 2023, we changed our corporate name from United Insurance Holdings Corp. to American Coastal Insurance Corporation. Our two insurance subsidiaries are Interboro Insurance Company (IIC), acquired via acquisition on April 29, 2016; and American Coastal Insurance Company (AmCoastal), acquired via merger on April 3, 2017. Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent; Skyway Claims Services, LLC (SCS), which provides claims adjusting services to our insurance companies; 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 (SLS), which provides claims litigation services to our insurance companies; and Skyway Underwriters, LLC, a managing general agent that provides technological and distribution services to our insurance companies. Our primary products are commercial and homeowners' residential property insurance. We currently offer commercial residential insurance in Florida and personal residential insurance in New York. We conduct our operations under two reportable segments, commercial residential property and casualty insurance policies (commercial lines) and personal residential property and casualty insurance policies (personal lines). Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at both segment levels, as well as at the corporate level. On February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (DFS), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, are discussed in Note 3 below. (b) Consolidation and Presentation We prepare our unaudited condensed consolidated interim financial statements in conformity with U.S. generally accepted accounting principles (GAAP). We have condensed or omitted certain information and footnote disclosures normally included in the annual consolidated financial statements presented in accordance with GAAP. In management's opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of interim periods. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. As described in Note 3 , our former subsidiary, UPC, and activities related directly to supporting the business conducted by UPC qualified as discontinued operations. Our unaudited condensed consolidated interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2023. While preparing our unaudited condensed 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 unaudited condensed 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 Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Comprehensive Income, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate our results for the remainder of the year or for any other future period. |
Significant Accounting Policies
Significant Accounting Policies Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Changes to Significant Accounting Policies There have been no changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2023. (b) Pending Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segments Disclosures. This update requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. We do not intend to elect to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. This update amends the Codification to enhance the transparency and decision usefulness of income tax disclosures. This ASU requires additional disaggregation of the reconciliation between the statutory and effective tax rate for an entity and of income taxes paid, both of which are disclosures required by current GAAP. The amendments improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We do not intend to elect to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Income Statement Disclosure | 3) DISCONTINUED OPERATIONS On August 25, 2022, we announced that our former subsidiary 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 entailed non-renewing personal lines policies in these states. Additionally, we announced that Demotech, an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the FLOIR issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurricane Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC. In the first quarter of 2023, the assets and liabilities of UPC were divested. In addition, activities provided by our entities, SCS, SLS and UIM, related directly to supporting the business conducted by UPC have been included. The remaining assets for the balance sheet as of December 31, 2023 are presented as held for disposal, and the results of UPC and activities related directly to supporting the business conducted by UPC are presented as discontinued operations for all periods presented. The results from discontinued operations for the three months ended March 31, 2024 and 2023 are presented below. Results From Discontinued Operations Three Months Ended March 31, 2024 2023 REVENUE: Gross premiums written $ — $ (120,608) Change in gross unearned premiums — 198,154 Gross premiums earned — 77,546 Ceded premiums earned — (48,203) Net premiums earned — 29,343 Net investment income — 2,182 Net realized investment gains — 1,343 Net unrealized gains on equity securities — 2,080 Other revenue — 2,717 Total revenue — 37,665 EXPENSES: Losses and loss adjustment expenses — 35,226 Policy acquisition costs — (1,352) Operating expenses — 3,996 General and administrative expenses — 1,284 Interest expense — 22 Total expenses — 39,176 Loss before other income — (1,511) Other income — — Loss before income taxes — (1,511) Provision (benefit) for income taxes — 16 Loss from discontinued operations, net of tax $ — $ (1,527) As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the three months ended March 31, 2023. This gain was driven by the negative equity position of UPC prior to the divestiture. The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer are presented below. Major Classes of Assets and Liabilities Disposed Closing (1) ASSETS Fixed maturities, available-for-sale $ 1,380 Equity securities 272 Other investments 12,882 Cash and cash equivalents 224,824 Restricted cash 7,758 Accrued investment income 875 Premiums receivable, net 22,733 Reinsurance recoverable on paid and unpaid losses, net 548,929 Ceded unearned premiums 75,262 Deferred policy acquisition costs, net (89) Other assets 51,625 Total assets $ 946,451 LIABILITIES Unpaid losses and loss adjustment expenses $ 920,431 Unearned premiums 98,655 Reinsurance payable on premiums 12,612 Payments outstanding 144,238 Accounts payable and accrued expenses 1,361 Other liabilities 3,476 Notes payable, net 4,118 Total Liabilities $ 1,184,891 (1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity. During the first quarter of 2024, due to a change in circumstances, the Company evaluated its capitalized software, previously classified as held for disposal at December 31, 2023. As a result of this evaluation, it was determined that the use case of the software by the Company has shifted. The Company has reclassified this asset and the associated amortization expense in the current period presented within this footnote in accordance with GAAP guidance, resulting in amortization expense for the capitalized software being captured in continuing operations prospectively. Property & equipment of $8,095,000 at December 31, 2023 was also reclassed at March 31, 2024, before current quarter amortization. As a result of the reclassification in the first quarter of 2024, described above, the Company held no assets or liabilities for disposal at March 31, 2024. At December 31, 2023, assets held for disposal consisted of property & equipment totaling $8,095,000. There were no liabilities held for disposal at December 31, 2023. In addition, other than the item related to capitalized software noted above, there were no non-cash transactions during the three months ended March 31, 2024. During the three months ended March 31, 2023, amortization attributed to discontinued operations totaled $252,000. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | ) SEGMENT REPORTING 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 AmCoastal. 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. All of our commercial lines business is administered by an outside managing general underwriter, 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. 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 subsidiary IIC. Personal residential products are offered in New York. 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. Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2024 and 2023: • Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2023; • Neither operating segment experienced significant non-cash transactions outside of depreciation and amortization for the three months ended March 31, 2024 and 2023. The tables below present the information for each of the reportable segment's profit or loss for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 184,601 $ 12,857 $ — $ 197,458 Change in gross unearned premiums (24,331) (4,305) — (28,636) Gross premiums earned 160,270 8,552 — 168,822 Ceded premiums earned (97,639) (2,453) — (100,092) Net premiums earned 62,631 6,099 — 68,730 Net investment income 3,468 772 268 4,508 Net realized investment losses — — — — Net unrealized losses on equity securities (50) — — (50) Other revenue — 16 — 16 Total revenues 66,049 6,887 268 73,204 EXPENSES: Losses and loss adjustment expenses 11,553 4,353 — 15,906 Policy acquisition costs 12,181 (388) — 11,793 Operating expenses 2,187 536 86 2,809 General and administrative expenses 7,333 2,090 150 9,573 Interest expense — — 2,719 2,719 Total expenses 33,254 6,591 2,955 42,800 Income (loss) before other income 32,795 296 (2,687) 30,404 Other income (loss) — 810 — 810 Income (loss) before income taxes $ 32,795 $ 1,106 (2,687) 31,214 Provision for income taxes 7,615 7,615 Net income (loss) $ (10,302) $ 23,599 Loss ratio, net (2) (3) 18.4 % 71.4 % 23.1 % Expense ratio (2) (4) 34.6 % 36.7 % 35.2 % Combined ratio (2) (5) 53.0 % 108.1 % 58.3 % (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) 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. (3) 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. (4) 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. (5) 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. Three Months Ended March 31, 2023 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 176,641 $ 10,482 $ — $ 187,123 Change in gross unearned premiums (44,607) 1,960 — (42,647) Gross premiums earned 132,034 12,442 — 144,476 Ceded premiums earned (53,374) (3,778) — (57,152) Net premiums earned 78,660 8,664 — 87,324 Net investment income 1,786 782 21 2,589 Net realized investment losses (83) — — (83) Net unrealized losses on equity securities 473 — 1 474 Other revenue — 16 — 16 Total revenues 80,836 9,462 22 90,320 EXPENSES: Losses and loss adjustment expenses 13,901 2,511 — 16,412 Policy acquisition costs 25,166 1,806 — 26,972 Operating expenses 96 1,948 124 2,168 General and administrative expenses 2,754 5,907 132 8,793 Interest expense — — 2,719 2,719 Total expenses 41,917 12,172 2,975 57,064 Income (loss) before other income 38,919 (2,710) (2,953) 33,256 Other income — 803 (215) 588 Income (loss) before income taxes $ 38,919 $ (1,907) (3,168) 33,844 Provision for income taxes 3,477 3,477 Net income (loss) $ (6,645) $ 30,367 Loss ratio, net (2) (3) 17.7 % 29.0 % 18.9 % Expense ratio (2) (4) 35.6 % 111.5 % 43.4 % Combined ratio (2) (5) 53.3 % 140.5 % 62.3 % (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) 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. (3) 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 . (4) 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. (5) 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. Depreciation and amortization related to our commercial lines operating segment totaled $812,000 and $812,000 for the three months ended March 31, 2024 and 2023, respectively. Depreciation and amortization related to our personal lines operating segment totaled $1,273,000 and $1,007,000 for the three months ended March 31, 2024 and 2023, respectively. The tables below present the segment assets as of March 31, 2024 and December 31, 2023. Assets by Segment as of Commercial Personal Adjustments Total March 31, 2024 $ 903,446 $ 103,947 $ 69,918 $ 1,077,311 December 31, 2023 896,159 85,099 71,030 1,052,288 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2024 and December 31, 2023: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2024 U.S. government and agency securities $ 27,494 $ — $ 198 $ 27,296 Foreign government — — — — States, municipalities and political subdivisions 25,806 — 2,529 23,277 Public utilities 5,632 — 504 5,128 Corporate securities 70,027 8 8,562 61,473 Mortgage-backed securities 52,627 — 7,187 45,440 Asset-backed securities 17,164 3 1,465 15,702 Total fixed maturities $ 198,750 $ 11 $ 20,445 $ 178,316 December 31, 2023 U.S. government and agency securities $ 27,489 $ 11 $ 68 $ 27,432 States, municipalities and political subdivisions 26,336 9 2,480 23,865 Public utilities 5,645 — 511 5,134 Corporate securities 70,197 20 8,368 61,849 Mortgage-backed securities 53,619 — 7,309 46,310 Asset-backed securities 17,665 9 1,561 16,113 Total fixed maturities $ 200,951 $ 49 $ 20,297 $ 180,703 Equity securities are summarized as follows: March 31, 2024 December 31, 2023 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 6,214 100.0 % $ — — % When the Company sells investments, the Company calculates 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 three months ended March 31, 2024 and 2023, respectively: 2024 2023 Gains Fair Value at Sale (1) Gains Fair Value at Sale (1) Three Months Ended March 31, Fixed maturities $ — $ 1,957 $ 4 $ 5,292 Short-term investments — — — 126 Other investments — 2,000 — — Total realized gains — 3,957 4 5,418 Fixed maturities — — (87) (41) Total realized losses — — (87) (41) Net realized investment gains (losses) $ — $ 3,957 $ (83) $ 5,377 (1) Fair value at sale includes maturities and paydowns executed at par value. The table below summarizes our fixed maturities at March 31, 2024 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. March 31, 2024 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 12,395 6.2 % $ 12,284 6.9 % Due after one year through five years 62,890 31.6 59,194 33.2 Due after five years through ten years 51,157 25.7 43,629 24.5 Due after ten years 2,517 1.3 2,067 1.2 Asset and mortgage-backed securities 69,791 35.2 61,142 34.2 Total $ 198,750 100.0 % $ 178,316 100.0 % The following table summarizes our net investment income by major investment category: Three Months Ended March 31, 2024 2023 Fixed maturities $ 1,281 $ 1,272 Equity securities 13 81 Cash and cash equivalents 3,122 1,304 Other investments 155 6 Investment income 4,571 2,663 Investment expenses (63) (74) Net investment income $ 4,508 $ 2,589 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 three months ended March 31, 2024, 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 March 31, 2024. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the 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 March 31, 2024 U.S. government and agency securities 14 $ 131 $ 25,867 2 $ 67 $ 1,428 States, municipalities and political subdivisions 5 39 2,508 44 2,490 20,519 Public utilities — — — 12 504 5,128 Corporate securities 1 2 598 136 8,560 60,311 Mortgage-backed securities 2 29 783 114 7,158 43,756 Asset-backed securities 3 12 1,136 43 1,453 13,844 Total fixed maturities 25 $ 213 $ 30,892 351 $ 20,232 $ 144,986 December 31, 2023 U.S. government and agency securities 9 $ 14 $ 19,943 2 $ 54 $ 1,430 States, municipalities and political subdivisions 4 12 2,052 44 2,468 20,571 Public utilities — — — 12 511 5,134 Corporate securities 3 27 1,255 133 8,341 59,419 Mortgage-backed securities 2 14 807 117 7,295 45,502 Asset-backed securities 4 6 1,354 43 1,555 14,074 Total fixed maturities 22 $ 73 $ 25,411 351 $ 20,224 $ 146,130 (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 Unaudited Condensed 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 March 31, 2024 and December 31, 2023. Changes in interest rates subsequent to March 31, 2024 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 loss on our Unaudited Condensed Consolidated Balance Sheet as of March 31, 2024. The following table presents the fair value of our financial instruments measured on a recurring basis by level at March 31, 2024 and December 31, 2023: Total Level 1 Level 2 Level 3 March 31, 2024 U.S. government and agency securities $ 27,296 $ — $ 27,296 $ — Foreign government — — — — States, municipalities and political subdivisions 23,277 — 23,277 — Public utilities 5,128 — 5,128 — Corporate securities 61,473 — 61,473 — Mortgage-backed securities 45,440 — 45,440 — Asset-backed securities 15,702 — 15,702 — Total fixed maturities 178,316 — 178,316 — Mutual funds 6,214 6,214 — — Total equity securities 6,214 6,214 — — Other investments (1) 14,037 — 14,037 — Total investments $ 198,567 $ 6,214 $ 192,353 $ — December 31, 2023 U.S. government and agency securities $ 27,432 $ — $ 27,432 $ — States, municipalities and political subdivisions 23,865 — 23,865 — Public utilities 5,134 — 5,134 — Corporate securities 61,849 — 61,849 — Mortgage-backed securities 46,310 — 46,310 — Asset-backed securities 16,113 — 16,113 — Total fixed maturities 180,703 — 180,703 — Mutual Funds — — — — Total equity securities — — — — Other investments (1) 14,004 — 14,004 — Total investments $ 194,707 $ — $ 194,707 $ — (1) Other investments included in the fair value hierarchy exclude these 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 March 31, 2024 and December 31, 2023. The carrying amounts for the following financial instrument categories approximate their fair values at March 31, 2024 and December 31, 2023, 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 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 the quarter ended March 31, 2024, 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 Unaudited Condensed Consolidated Balance Sheets, and these investments are currently being measured at estimated fair value utilizing a net asset value per share (or its equivalent) practical expedient. The information presented in the table below is as of March 31, 2024: Book Value Unrealized Gain Unrealized Loss Fair Value March 31, 2024 Limited partnership investments (1) $ 62 $ 118 $ — $ 180 Short-term investments 14,059 2 24 14,037 Total other investments $ 14,121 $ 120 $ 24 $ 14,217 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of 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: March 31, 2024 December 31, 2023 Trust funds $ 19,677 $ 17,439 Cash on deposit (regulatory deposits) 632 631 Total restricted cash $ 20,309 $ 18,070 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 Unaudited Condensed 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. March 31, 2024 December 31, 2023 Invested assets on deposit (regulatory deposits) $ 1,495 $ 1,495 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE (EPS) 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 three month periods ended March 31, 2024 and 2023, respectively: Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) attributable to ACIC common stockholders $ 23,599 $ 267,280 Denominator: Weighted-average shares outstanding 47,323,356 43,124,825 Effect of dilutive securities 1,646,194 450,015 Weighted-average diluted shares 48,969,550 43,574,840 Earnings available to ACIC common stockholders per share Basic $ 0.50 $ 6.19 Diluted $ 0.48 $ 6.14 See Note 17 of these Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the stock grants related to dilutive securities. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: March 31, December 31, Computer hardware and software $ 15,873 $ 7,925 Office furniture and equipment 705 748 Leasehold improvements — 311 Total, at cost 16,578 8,984 Less: accumulated depreciation and amortization (6,227) (5,326) Property and equipment, net $ 10,351 $ 3,658 Depreciation and amortization expense under property and equipment was $1,273,000 for the three months ended March 31, 2024. During the three months ended March 31, 2024, we moved capitalized software from discontinued operations to continuing operations to align with the Company's use of the system in the current year. Please see Note 3 for more detail. Depreciation and amortization expense under property and equipment was $1,008,000 for the three months ended March 31, 2023. During the three months ended March 31, 2024, we sold or disposed of leasehold improvements totaling $311,000. The accumulated depreciation on these improvements totaled $232,000 at the time of disposal. We disposed of computer hardware and software totaling $147,000. The accumulated depreciation on these systems totaled $98,000 at the time of disposal. In addition, we disposed of office furniture totaling $43,000. The accumulated depreciation on the office furniture totaled $41,000 at the time of disposal. During the year ended December 31, 2023 , we sold or disposed of leased vehicles totaling $1,069,000. The accumulated depreciation on these vehicles totaled $1,038,000 at the time of disposal. We realized a net gain on this disposal of $559,000. We disposed of computer hardware and software totaling $1,061,000. The accumulated depreciation on these systems totaled $379,000 at the time of disposal. In addition, we disposed of office furniture totaling $749,000 during the period. Accumulated depreciation at the time of this disposal totaled $702,000. Our depreciation and amortization expense under property and equipment can be attributed fully to our personal lines operating segment for these periods. These gains (losses) are reflected within "Other income" on the Unaudited Condensed Consolidated Statements of Comprehensive Income. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | ) GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying amount of goodwill at March 31, 2024 and December 31, 2023 was $59,476,000. No impairment in the value of goodwill was recognized during the three month period ended March 31, 2024 . Goodwill allocated to our commercial lines reporting unit was $59,476,000 at March 31, 2024 and December 31, 2023. There was no goodwill allocated to our personal lines reporting unit at March 31, 2024 and December 31, 2023. There was no goodwill acquired or disposed of during the three month periods ended March 31, 2024 and 2023 . Accumulated impairment related to goodwill was $10,156,000 at March 31, 2024 and December 31, 2023. Accumulated impairment can be attributed to our personal lines segment. Intangible Assets The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Intangible assets subject to amortization $ 7,313 $ 8,125 Indefinite-lived intangible assets (1) 1,198 1,198 Total $ 8,511 $ 9,323 (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 March 31, 2024 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 3.0 34,661 (27,348) 7,313 Trade names acquired — 6,381 (6,381) — Total $ 83,830 $ (76,517) $ 7,313 December 31, 2023 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 3.3 34,661 (26,738) 7,923 Trade names acquired 0.3 6,381 (6,179) 202 Total $ 83,830 $ (75,705) $ 8,125 No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2024 and 2023. However, during the three months ended March 31, 2023, we disposed of intangible assets totaling $200,000. Amortization expense of our intangible assets was $812,000 for both the three months ended March 31, 2024 and 2023. Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2024 and over the next five years is as follows: Year ending December 31, Estimated Amortization Expense Remaining in 2024 $ 1,829 2025 2,438 2026 2,438 2027 608 2028 — 2029 — |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | ) REINSURANCE Our catastrophe reinsurance programs are designed primarily by utilizing third-party catastrophe modeling software and consulting with third-party reinsurance experts to project our exposure to catastrophe events. We evaluate modeled expected losses developed by the catastrophe modeling software using our risk portfolio data to estimate probable maximum losses (PML) across multiple return periods and the average annual loss. The Company monitors and manages its catastrophe risk using this model output along with other internal and external data sources, such as our historical loss experience and industry loss experience, to develop our view of catastrophe risk. Our catastrophe reinsurance coverage consists of three separate placements: 1. AmCoastal’s core catastrophe reinsurance program in effect June 1 through May 31, annually, which includes excess of loss and quota share treaties providing coverage for catastrophe losses from named or numbered windstorms and earthquakes; 2. AmCoastal’s all other perils catastrophe excess of loss agreement in effect January 1 through December 31, annually, which provides protection from catastrophe loss events other than named or numbered windstorms and earthquakes; and 3. IIC’s core catastrophe reinsurance program in effect June 1 through May 31, annually, which provides protection from all catastrophe losses. This reinsurance protection is an essential part of our catastrophe risk management strategy. It is intended to provide our stockholders with an acceptable return on the risks assumed by our insurance entities, and to reduce the variability of earnings, while providing surplus protection. 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. In the event one or more of our reinsurers fail to fulfill their obligation, the surplus of our statutory entities may decline, and we may not be able to fulfill our obligation to policyholders, or we may not be able to maintain compliance with various regulatory financial requirements. Additionally, we face the risk that actual losses incurred from one or more catastrophic events may be above the modeled expected loss, resulting in losses exceeding our reinsurance coverage, which may result in a decline in surplus, and as a result we may not be able to fulfill our obligations to policyholders, or we may not be able to maintain compliance with various regulatory financial requirements. The details of our programs and the likelihood of a catastrophic event exceeding these three coverages are outlined below. AmCoastal’s core catastrophe reinsurance program provides occurrence-based coverage up to an exhaustion point of approximately $1,100,000,000 for a first occurrence and $1,300,000,000 in the aggregate. Under this program, our retention on a first and second event is $10,000,000 each, plus $2,250,000 retained separately by our captive. AmCoastal’s program provides sufficient coverage for a 1-in-150-year return period, indicating that the probability of a single occurrence exceeding protection purchased is roughly 0.7% estimated by equally blending the AIR and RMS catastrophe models using long-term catalogs including demand surge. AmCoastal’s program also provides sufficient coverage for a 1-in-100-year event followed by a 1-in-50-year event in the same treaty year, the probability of which is less than 0.1%. While we believe these catastrophe models are very good tools and their output provides reasonable proxies for the probability of exhausting our reinsurance protections, they are imperfect, so actual results could vary dramatically from those expected. AmCoastal’s all other perils catastrophe excess of loss agreement provides protection from catastrophe loss events other than named windstorms and earthquakes up to $172,000,000 in the aggregate. This agreement provides sufficient coverage for a 1-in-450-year return period, indicating that the probability of a single occurrence exceeding protection purchased is no more than 0.2%. IIC’s core catastrophe reinsurance program provides coverage up to an exhaustion point of approximately $82,000,000 in the aggregate, with a retention of $3,000,000 per occurrence. Based on IIC’s PML, the program provides sufficient coverage for a 1-in-130-year return period, indicating the probability of a single occurrence exceeding protection purchased is no more than 0.8%. IIC’s program also provides sufficient coverage for a 1-in-100-year event followed by a 1-in-50-year event in the same treaty year, the probability of which is less than 0.1%. Effective December 15, 2023, we agreed to commute a private reinsurer’s share of core catastrophe reinsurance coverage and replace this gap in coverage with new coverage provided by one of our other private reinsurers. This transaction resulted in additional expense of approximately $6,300,000 for the year ended December 31, 2023, and a reduction in expense of approximately $9,400,000 during the three months ended March 31, 2024. The table below outlines our quota share agreements in effect for the three months ended March 31, 2024 and 2023. The impacts of these quota share agreements on the financial statements of our former subsidiary, UPC, are included in discontinued operations. Reinsurer Companies in Scope Effective Dates Cession Rate States in Scope External third-party AmCoastal 06/01/2023 - 06/01/2024 40% (1) Florida External third-party UPC, FSIC & AmCoastal 06/01/2022 - 06/01/2023 10% (1) Florida, Louisiana, Texas TypTap UPC 06/01/2022 - 06/01/2023 100% (2) Georgia, North Carolina, South Carolina (1) 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. (2) This treaty provided coverage on our in-force, new and renewal policies until these states were transitioned to HCPCI or TypTap upon renewal. Reinsurance recoverable at the balance sheet dates consists of the following: March 31, December 31, 2024 2023 Reinsurance recoverable on unpaid losses and loss adjustment expenses $ 193,949 $ 271,948 Reinsurance recoverable on paid losses and loss adjustment expenses 63,141 69,154 Reinsurance recoverable (1) $ 257,090 $ 341,102 (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 . |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Liability for unpaid losses and loss adjustment expenses | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE) We determine the reserve for unpaid losses on an individual case basis for all incidents reported. The liability also includes amounts for incurred but not reported (IBNR) claims as of the balance sheet date. The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2024 and 2023 on a GAAP basis: March 31, 2024 2023 Balance at January 1 $ 370,221 $ 842,958 Less: reinsurance recoverable on unpaid losses 271,948 732,254 Net balance at January 1 $ 98,273 $ 110,704 Incurred related to: Current year 16,337 19,577 Prior years (432) (3,165) Total incurred $ 15,905 $ 16,412 Paid related to: Current year 10,702 10,654 Prior years 17,869 14,108 Total paid $ 28,571 $ 24,762 Net balance at March 31 $ 85,607 $ 102,354 Plus: reinsurance recoverable on unpaid losses 193,949 646,011 Balance at March 31 $ 279,556 $ 748,365 Composition of reserve for unpaid losses and LAE: Case reserves $ 97,944 $ 284,679 IBNR reserves 181,612 463,686 Balance at March 31 $ 279,556 $ 748,365 Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2023, 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 in the table above, we had favorable development in both 2024 and 2023 related to prior year losses. This favorable development came as a result of re-estimating ultimate losses in 2024 and 2023 based on historical loss trends. The loss payments made by the Company during the three months ended March 31, 2024, were higher than the loss payments made during the three months ended March 31, 2023, due to the settling of prior year catastrophe claims. Current year loss payments remained relatively flat. Case and IBNR reserves and reinsurance recoverable on unpaid losses also decreased when compared to the prior period as a result of the continued settlement of prior year claims with no similar losses in 2023 or the current year. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Senior Notes Payable 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, plus accrued and unpaid interest thereon. On or after that date, we may redeem the Senior Notes at par, plus accrued and unpaid interest thereon. On December 8, 2022, the Kroll Bond Rating Agency, LLC announced a downgrade of our issuer and debt ratings from BBB- to BB+. As a result, pursuant to our agreement, the interest rate of our Senior Notes increased from 6.25% to 7.25%. Financial Covenants 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, 2023, while our leverage ratio was greater than the allowed ratio above, we did not incur any additional indebtedness during the period and as a result, we were in compliance with the covenants in the Senior Notes. Debt Issuance Costs The table below presents the roll forward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2024 and 2023: 2024 2023 Balance at January 1, $ 1,312 $ 1,645 Amortization (83) (83) Balance at March 31, $ 1,229 $ 1,562 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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. On October 20, 2023, we received notice that the DFS filed a notice of claim and demand for tender of insurance policy limits under our director and officer insurance to carriers participating in our director and officer’s insurance program (the “Claim”). The Claim alleges that former officers and directors of UPC were involved in wrongful acts that resulted in UPCs insolvency and demands immediate tender of our director and officer’s policy limit of $40,000,000 where we have a retention of $1,500,000. The former directors and officers of UPC deny the allegations. Although no litigation has arisen from the Claim, litigation is anticipated. The directors and officers plan to vigorously defend against the Claim; however, due to our indemnification obligation, during 2023, we accrued the policy retention amount of $1,500,000. This claim remains open as of March 31, 2024. Commitments to fund partnership investments We have fully funded one limited partnership investment. We have no unfunded commitments at March 31, 2024 and December 31, 2023. 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. The classification of operating and lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows: Financial Statement Line March 31, 2024 December 31, 2023 Assets Operating lease assets Other assets $ 97 $ 593 Total lease assets $ 97 $ 593 Liabilities Operating lease liabilities Operating lease liability $ 105 $ 776 Total lease liabilities $ 105 $ 776 The components of lease expenses were as follows: Three Months Ended March 31, 2024 2023 Operating lease expense $ 97 $ 222 Financing lease expense: Amortization of leased assets — 7 Net lease expense $ 97 $ 229 At March 31, 2024, future minimum gross lease payments relating to these non-cancellable operating lease agreements were as follows: March 31, 2024 Remaining in 2024 $ 59 2025 49 2026 8 2027 — Total undiscounted future minimum lease payments 116 Less: Imputed interest (11) Present value of lease liabilities $ 105 Weighted average remaining lease term and discount rate related to operating leases were as follows: March 31, 2024 December 31, 2023 Weighted average remaining lease term (months) 20 17 Weighted average discount rate 3.47 % 3.30 % There were no other cash or non-cash related activities during the three months ended March 31, 2024 and 2023. Capital lease amortization expenses are included in depreciation expense in our Unaudited Condensed Consolidated Statements of Comprehensive Income. See Note 7 of these Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding depreciation expense, Note 11 for information regarding commitments related to long-term debt, and Note 14 for information regarding commitments related to regulatory actions. Subleases We previously leased and occupied office space in which we no longer operate. Effective October 1, 2022, this office space was subleased to a third-party. The sublease was effective from October 1, 2022 through July 31, 2025, with no option to extend. However, on February 29, 2024, this sublease was cancelled as a part of an agreement to terminate the original lease associated with the office space. During the three months ended March 31, 2024, we recognized $33,000 of income related to this sublease, exclusive of the lease expense associated with the original lease. Employee Retention Credit A series of legislation was enacted in the United States during 2020 and 2021 in response to the COVID-19 pandemic that provided financial relief for businesses impacted by government-mandated shutdowns, work stoppages, or other losses suffered by employers. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided an employee retention credit, which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee. During the second quarter of 2022, we evaluated our eligibility and filed for a $10,161,000 refund in connection with our Employee Retention Tax Credit for the tax year ended December 31, 2021. As of March 31, 2024, we have received $5,718,000 from the IRS related to this refund. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We have not recognized this gain contingency of $10,161,000 within our financial statements except for the $5,718,000 that has already been received. Quota Share Commission Loss Contingency AmCoastal participates in shared quota-share reinsurance agreements with our former subsidiary, UPC, which are subject to a variable ceding commission based on loss experience. With the receivership of UPC in 2023, we have not received data related to UPC losses that could unfavorably shift AmCoastal’s commission related to these contracts. In addition, we cannot reasonably determine how this shift will be allocated between the contracted parties. Until we receive this loss data and provide the updated calculations to both our reinsurance partners and the DFS, as receiver of UPC, we are unable to estimate the impact, however, we believe a loss contingency related to these commissions may exist as of March 31, 2024. We will continue to monitor the matter for further developments that could affect the outcome of these contingencies and will make any appropriate adjustments each quarter. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | 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; and our investment holdings. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, 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 three months ended March 31, 2024 and 2023, respectively: March 31, 2024 December 31, 2023 Provision for expected credit losses Write-offs March 31, 2024 Premiums Receivable $ 51 $ (16) $ 18 $ 53 Reinsurance Recoverables 97 (32) — 65 Total $ 148 $ (48) $ 18 $ 118 March 31, 2023 December 31, 2022 Provision for expected credit losses Write-offs March 31, 2023 Premiums Receivable $ 32 $ (34) $ 29 $ 27 Reinsurance Recoverables 333 (183) — 150 Total $ 365 $ (217) $ 29 $ 177 |
Statutory Accounting and Regula
Statutory Accounting and Regulation | 3 Months Ended |
Mar. 31, 2024 | |
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. AmCoastal is domiciled in Florida, while IIC is domiciled in New York. At March 31, 2024, and during the three months then ended, AmCoastal and IIC met all regulatory requirements of the states in which they operate. During 2023, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 0.7% 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 the 1.3% assessment, described below, and is recoupable from policyholders. During 2022, we received an assessment notice from FIGA. This assessment was 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. The National Association of Insurance Commissioners (NAIC) has Risk-Based Capital (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 our former subsidiary UPC's plan for run off, IIC has agreed not to pay ordinary dividends without prior approval of the New York Department of Financial Services until January 1, 2025. Our insurance subsidiaries must each file with the various insurance regulatory authorities an “Annual Statement” which reports, among other items, statutory net income (loss) and surplus as regards policyholders, which is called stockholders' equity under GAAP. The table below details the statutory net income (loss) for each of our regulated entities for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 2023 AmCoastal 24,929 18,230 IIC (305) (2,203) Total $ 24,624 $ 16,027 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 March 31, 2024, we met these requirements. The table below details the amount of surplus as regards policyholders for each of our regulated entities at March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 AmCoastal 170,607 143,452 IIC 22,423 22,661 Total $ 193,030 $ 166,113 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS We report changes in other comprehensive income (loss) items within comprehensive income (loss) on the Unaudited Condensed Consolidated Statements of Comprehensive Income, and we include accumulated other comprehensive income (loss) as a component of stockholders' equity on our Unaudited Condensed Consolidated Balance Sheets. The table below details the components of accumulated other comprehensive loss at period end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2023 $ (20,238) $ 3,101 $ (17,137) Changes in net unrealized losses on investments (198) — (198) Reclassification adjustment for realized losses — — — March 31, 2024 $ (20,436) $ 3,101 $ (17,335) |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Our Board of Directors declared no dividends on our outstanding shares of common stock to stockholders of record during 2023 or 2024. In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of March 31, 2024, 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 ACIC common stock, and general market conditions. The plan has no expiration date, and the plan may be suspended or discontinued at any time. In September 2023, the Company entered into an equity distribution agreement (the “Agreement”) with Raymond James & Associates, Inc., as agent (the “Agent”), of up to 8,000,000 shares of the Company’s common stock, par value $0.0001 per share (the “Shares”). Sales of the Shares under the Agreement will be made in sales deemed to be “at the market offerings”. The Agent is not required to sell any specific amount of Shares but has agreed to act as the Company’s sales agent for a commission equal to 3.0% of the gross proceeds from the sales of the Shares. As of March 31, 2024, 4,373,000 shares have been sold under the Agreement resulting in commissions paid of approximately $1,181,000 and net proceeds of approximately $38,190,000. The Agreement will terminate upon the issuance and sale of all Shares subject to the Agreement, or the Agreement may be suspended or discontinued at any time. The Company does not plan to sell additional shares under the at-the-market program to which this Agreement relates during the first half of 2024. See Note 17 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | ) STOCK-BASED COMPENSATION We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation . We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation. The following table presents our total stock-based compensation expense: Three Months Ended March 31, 2024 2023 Employee stock-based compensation expense Pre-tax $ 369 $ 309 Post-tax (1) 292 244 Director stock-based compensation expense Pre-tax 59 26 Post-tax (1) 47 21 (1) The after tax amounts are determined using the 21% corporate federal tax rate. We had approximately $1,886,000 of unrecognized stock compensation expense at March 31, 2024 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 1.7 years. We had approximately $41,000 of unrecognized director stock-based compensation expense at March 31, 2024 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.2 years. Restricted stock, restricted stock units and performance stock units Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting. Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2022 and 2021 awards. We granted 30,000 shares of restricted common stock during the three months ended March 31, 2024, which had a weighted-average grant date fair value of $9.46. We did not grant shares of restricted common stock during the three months ended March 31, 2023. The following table presents certain information related to the activity of our non-vested restricted common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2023 (1) 445,646 $ 2.64 Granted 30,000 9.46 Less: Forfeited 856 3.59 Less: Vested 32,233 4.36 Outstanding as of March 31, 2024 442,557 $ 2.98 (1) Contingent shares granted during 2023 have been excluded from the calculations above. Stock options Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted: 2024 2023 Expected annual dividend yield — % — % Expected volatility — % 80.84 % Risk-free interest rate — % 3.44 % Expected term N/A 6 years The expected annual dividend yield for our options granted during 2024 and 2023 is based on no dividends being paid in future quarters. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option. We did not grant any stock options for the three months ended March 31, 2024 and 2023. 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 (3) Outstanding as of December 31, 2023 (1) 1,028,760 $ 3.83 7.80 $ 6,151,000 Granted — — — — Less: Forfeited — — — — Less: Expired — — — — Less: Exercised — — — — Outstanding as of March 31, 2024 1,028,760 $ 3.83 7.55 $ 7,368,000 Vested as of March 31, 2024 (2) 920,818 $ 4.78 7.31 $ 3,736,000 Exercisable as of March 31, 2024 580,568 $ 4.78 7.31 $ 3,736,000 (1) Contingent options granted during 2023 have been excluded from the calculations above. (2) The vested shares are calculated based on all vested shares at March 31, 2024, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2024. (3) Presented in ones. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. Effective April 17, 2024, the Company secured $200 million dollars of excess of loss reinsurance limit related to its AmCoastal core catastrophe reinsurance program for 2024-2025. This limit attaches to AmCoastal's reinsurance coverage at $275 million and was obtained through 10.25% catastrophe bonds issued by Armor Re II Ltd., a Bermuda-domiciled special purpose insurer. On May 9, 2024, the Company signed definitive agreements with Forza Insurance Holdings, LLC ("Forza") in which the Company will sell and Forza will acquire 100% of the issued and outstanding stock of IIC. Closing is subject to the approval of the New York Department of Financial Services. Concurrently, IIC and SageSure entered into a Program Administrator Agreement and Claims Services Agreement on May 9, 2024. Under the terms of these service agreements, SageSure will provide policy administration, underwriting and claims administration services on behalf of IIC. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Pending Accounting Pronouncements | (a) Changes to Significant Accounting Policies There have been no changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2023. (b) Pending Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segments Disclosures. This update requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. We do not intend to elect to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. This update amends the Codification to enhance the transparency and decision usefulness of income tax disclosures. This ASU requires additional disaggregation of the reconciliation between the statutory and effective tax rate for an entity and of income taxes paid, both of which are disclosures required by current GAAP. The amendments improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We do not intend to elect to early adopt and are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Assets & Liabilities | The results from discontinued operations for the three months ended March 31, 2024 and 2023 are presented below. Results From Discontinued Operations Three Months Ended March 31, 2024 2023 REVENUE: Gross premiums written $ — $ (120,608) Change in gross unearned premiums — 198,154 Gross premiums earned — 77,546 Ceded premiums earned — (48,203) Net premiums earned — 29,343 Net investment income — 2,182 Net realized investment gains — 1,343 Net unrealized gains on equity securities — 2,080 Other revenue — 2,717 Total revenue — 37,665 EXPENSES: Losses and loss adjustment expenses — 35,226 Policy acquisition costs — (1,352) Operating expenses — 3,996 General and administrative expenses — 1,284 Interest expense — 22 Total expenses — 39,176 Loss before other income — (1,511) Other income — — Loss before income taxes — (1,511) Provision (benefit) for income taxes — 16 Loss from discontinued operations, net of tax $ — $ (1,527) As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the three months ended March 31, 2023. This gain was driven by the negative equity position of UPC prior to the divestiture. The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer are presented below. Major Classes of Assets and Liabilities Disposed Closing (1) ASSETS Fixed maturities, available-for-sale $ 1,380 Equity securities 272 Other investments 12,882 Cash and cash equivalents 224,824 Restricted cash 7,758 Accrued investment income 875 Premiums receivable, net 22,733 Reinsurance recoverable on paid and unpaid losses, net 548,929 Ceded unearned premiums 75,262 Deferred policy acquisition costs, net (89) Other assets 51,625 Total assets $ 946,451 LIABILITIES Unpaid losses and loss adjustment expenses $ 920,431 Unearned premiums 98,655 Reinsurance payable on premiums 12,612 Payments outstanding 144,238 Accounts payable and accrued expenses 1,361 Other liabilities 3,476 Notes payable, net 4,118 Total Liabilities $ 1,184,891 (1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity. During the first quarter of 2024, due to a change in circumstances, the Company evaluated its capitalized software, previously classified as held for disposal at December 31, 2023. As a result of this evaluation, it was determined that the use case of the software by the Company has shifted. The Company has reclassified this asset and the associated amortization expense in the current period presented within this footnote in accordance with GAAP guidance, resulting in amortization expense for the capitalized software being captured in continuing operations prospectively. Property & equipment of $8,095,000 at December 31, 2023 was also reclassed at March 31, 2024, before current quarter amortization. As a result of the reclassification in the first quarter of 2024, described above, the Company held no assets or liabilities for disposal at March 31, 2024. At December 31, 2023, assets held for disposal consisted of property & equipment totaling $8,095,000. There were no liabilities held for disposal at December 31, 2023. In addition, other than the item related to capitalized software noted above, there were no non-cash transactions during the three months ended March 31, 2024. During the three months ended March 31, 2023, amortization attributed to discontinued operations totaled $252,000. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below present the information for each of the reportable segment's profit or loss for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 184,601 $ 12,857 $ — $ 197,458 Change in gross unearned premiums (24,331) (4,305) — (28,636) Gross premiums earned 160,270 8,552 — 168,822 Ceded premiums earned (97,639) (2,453) — (100,092) Net premiums earned 62,631 6,099 — 68,730 Net investment income 3,468 772 268 4,508 Net realized investment losses — — — — Net unrealized losses on equity securities (50) — — (50) Other revenue — 16 — 16 Total revenues 66,049 6,887 268 73,204 EXPENSES: Losses and loss adjustment expenses 11,553 4,353 — 15,906 Policy acquisition costs 12,181 (388) — 11,793 Operating expenses 2,187 536 86 2,809 General and administrative expenses 7,333 2,090 150 9,573 Interest expense — — 2,719 2,719 Total expenses 33,254 6,591 2,955 42,800 Income (loss) before other income 32,795 296 (2,687) 30,404 Other income (loss) — 810 — 810 Income (loss) before income taxes $ 32,795 $ 1,106 (2,687) 31,214 Provision for income taxes 7,615 7,615 Net income (loss) $ (10,302) $ 23,599 Loss ratio, net (2) (3) 18.4 % 71.4 % 23.1 % Expense ratio (2) (4) 34.6 % 36.7 % 35.2 % Combined ratio (2) (5) 53.0 % 108.1 % 58.3 % (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) 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. (3) 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. (4) 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. (5) 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. Three Months Ended March 31, 2023 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 176,641 $ 10,482 $ — $ 187,123 Change in gross unearned premiums (44,607) 1,960 — (42,647) Gross premiums earned 132,034 12,442 — 144,476 Ceded premiums earned (53,374) (3,778) — (57,152) Net premiums earned 78,660 8,664 — 87,324 Net investment income 1,786 782 21 2,589 Net realized investment losses (83) — — (83) Net unrealized losses on equity securities 473 — 1 474 Other revenue — 16 — 16 Total revenues 80,836 9,462 22 90,320 EXPENSES: Losses and loss adjustment expenses 13,901 2,511 — 16,412 Policy acquisition costs 25,166 1,806 — 26,972 Operating expenses 96 1,948 124 2,168 General and administrative expenses 2,754 5,907 132 8,793 Interest expense — — 2,719 2,719 Total expenses 41,917 12,172 2,975 57,064 Income (loss) before other income 38,919 (2,710) (2,953) 33,256 Other income — 803 (215) 588 Income (loss) before income taxes $ 38,919 $ (1,907) (3,168) 33,844 Provision for income taxes 3,477 3,477 Net income (loss) $ (6,645) $ 30,367 Loss ratio, net (2) (3) 17.7 % 29.0 % 18.9 % Expense ratio (2) (4) 35.6 % 111.5 % 43.4 % Combined ratio (2) (5) 53.3 % 140.5 % 62.3 % (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) 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. (3) 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 . (4) 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. (5) 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. Depreciation and amortization related to our commercial lines operating segment totaled $812,000 and $812,000 for the three months ended March 31, 2024 and 2023, respectively. Depreciation and amortization related to our personal lines operating segment totaled $1,273,000 and $1,007,000 for the three months ended March 31, 2024 and 2023, respectively. The tables below present the segment assets as of March 31, 2024 and December 31, 2023. Assets by Segment as of Commercial Personal Adjustments Total March 31, 2024 $ 903,446 $ 103,947 $ 69,918 $ 1,077,311 December 31, 2023 896,159 85,099 71,030 1,052,288 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt and Equity Securities, FV-NI | |
Schedule of Available-for-sale Securities Reconciliation | The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2024 and December 31, 2023: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2024 U.S. government and agency securities $ 27,494 $ — $ 198 $ 27,296 Foreign government — — — — States, municipalities and political subdivisions 25,806 — 2,529 23,277 Public utilities 5,632 — 504 5,128 Corporate securities 70,027 8 8,562 61,473 Mortgage-backed securities 52,627 — 7,187 45,440 Asset-backed securities 17,164 3 1,465 15,702 Total fixed maturities $ 198,750 $ 11 $ 20,445 $ 178,316 December 31, 2023 U.S. government and agency securities $ 27,489 $ 11 $ 68 $ 27,432 States, municipalities and political subdivisions 26,336 9 2,480 23,865 Public utilities 5,645 — 511 5,134 Corporate securities 70,197 20 8,368 61,849 Mortgage-backed securities 53,619 — 7,309 46,310 Asset-backed securities 17,665 9 1,561 16,113 Total fixed maturities $ 200,951 $ 49 $ 20,297 $ 180,703 |
Equity Securities Fair Value | Equity securities are summarized as follows: March 31, 2024 December 31, 2023 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 6,214 100.0 % $ — — % |
Schedule of Realized Gain (Loss) | The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2024 and 2023, respectively: 2024 2023 Gains Fair Value at Sale (1) Gains Fair Value at Sale (1) Three Months Ended March 31, Fixed maturities $ — $ 1,957 $ 4 $ 5,292 Short-term investments — — — 126 Other investments — 2,000 — — Total realized gains — 3,957 4 5,418 Fixed maturities — — (87) (41) Total realized losses — — (87) (41) Net realized investment gains (losses) $ — $ 3,957 $ (83) $ 5,377 |
Investments Classified by Contractual Maturity Date | The table below summarizes our fixed maturities at March 31, 2024 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. March 31, 2024 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 12,395 6.2 % $ 12,284 6.9 % Due after one year through five years 62,890 31.6 59,194 33.2 Due after five years through ten years 51,157 25.7 43,629 24.5 Due after ten years 2,517 1.3 2,067 1.2 Asset and mortgage-backed securities 69,791 35.2 61,142 34.2 Total $ 198,750 100.0 % $ 178,316 100.0 % |
Investment Income | The following table summarizes our net investment income by major investment category: Three Months Ended March 31, 2024 2023 Fixed maturities $ 1,281 $ 1,272 Equity securities 13 81 Cash and cash equivalents 3,122 1,304 Other investments 155 6 Investment income 4,571 2,663 Investment expenses (63) (74) Net investment income $ 4,508 $ 2,589 |
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 March 31, 2024 U.S. government and agency securities 14 $ 131 $ 25,867 2 $ 67 $ 1,428 States, municipalities and political subdivisions 5 39 2,508 44 2,490 20,519 Public utilities — — — 12 504 5,128 Corporate securities 1 2 598 136 8,560 60,311 Mortgage-backed securities 2 29 783 114 7,158 43,756 Asset-backed securities 3 12 1,136 43 1,453 13,844 Total fixed maturities 25 $ 213 $ 30,892 351 $ 20,232 $ 144,986 December 31, 2023 U.S. government and agency securities 9 $ 14 $ 19,943 2 $ 54 $ 1,430 States, municipalities and political subdivisions 4 12 2,052 44 2,468 20,571 Public utilities — — — 12 511 5,134 Corporate securities 3 27 1,255 133 8,341 59,419 Mortgage-backed securities 2 14 807 117 7,295 45,502 Asset-backed securities 4 6 1,354 43 1,555 14,074 Total fixed maturities 22 $ 73 $ 25,411 351 $ 20,224 $ 146,130 (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 March 31, 2024 and December 31, 2023: Total Level 1 Level 2 Level 3 March 31, 2024 U.S. government and agency securities $ 27,296 $ — $ 27,296 $ — Foreign government — — — — States, municipalities and political subdivisions 23,277 — 23,277 — Public utilities 5,128 — 5,128 — Corporate securities 61,473 — 61,473 — Mortgage-backed securities 45,440 — 45,440 — Asset-backed securities 15,702 — 15,702 — Total fixed maturities 178,316 — 178,316 — Mutual funds 6,214 6,214 — — Total equity securities 6,214 6,214 — — Other investments (1) 14,037 — 14,037 — Total investments $ 198,567 $ 6,214 $ 192,353 $ — December 31, 2023 U.S. government and agency securities $ 27,432 $ — $ 27,432 $ — States, municipalities and political subdivisions 23,865 — 23,865 — Public utilities 5,134 — 5,134 — Corporate securities 61,849 — 61,849 — Mortgage-backed securities 46,310 — 46,310 — Asset-backed securities 16,113 — 16,113 — Total fixed maturities 180,703 — 180,703 — Mutual Funds — — — — Total equity securities — — — — Other investments (1) 14,004 — 14,004 — Total investments $ 194,707 $ — $ 194,707 $ — (1) Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient. |
Schedule of Investments in Limited Partnerships | The information presented in the table below is as of March 31, 2024: Book Value Unrealized Gain Unrealized Loss Fair Value March 31, 2024 Limited partnership investments (1) $ 62 $ 118 $ — $ 180 Short-term investments 14,059 2 24 14,037 Total other investments $ 14,121 $ 120 $ 24 $ 14,217 |
Restrictions on Cash and Cash Equivalents | The following table presents the components of restricted assets: March 31, 2024 December 31, 2023 Trust funds $ 19,677 $ 17,439 Cash on deposit (regulatory deposits) 632 631 Total restricted cash $ 20,309 $ 18,070 |
Securities Owned and Other Investments Not Readily Marketable Disclosure | The table below shows the carrying value of those securities held on deposit with regulators. March 31, 2024 December 31, 2023 Invested assets on deposit (regulatory deposits) $ 1,495 $ 1,495 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table shows the computation of basic and diluted EPS for the three month periods ended March 31, 2024 and 2023, respectively: Three Months Ended March 31, 2024 2023 Numerator: Net income (loss) attributable to ACIC common stockholders $ 23,599 $ 267,280 Denominator: Weighted-average shares outstanding 47,323,356 43,124,825 Effect of dilutive securities 1,646,194 450,015 Weighted-average diluted shares 48,969,550 43,574,840 Earnings available to ACIC common stockholders per share Basic $ 0.50 $ 6.19 Diluted $ 0.48 $ 6.14 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: March 31, December 31, Computer hardware and software $ 15,873 $ 7,925 Office furniture and equipment 705 748 Leasehold improvements — 311 Total, at cost 16,578 8,984 Less: accumulated depreciation and amortization (6,227) (5,326) Property and equipment, net $ 10,351 $ 3,658 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets: March 31, 2024 December 31, 2023 Intangible assets subject to amortization $ 7,313 $ 8,125 Indefinite-lived intangible assets (1) 1,198 1,198 Total $ 8,511 $ 9,323 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. |
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 March 31, 2024 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 3.0 34,661 (27,348) 7,313 Trade names acquired — 6,381 (6,381) — Total $ 83,830 $ (76,517) $ 7,313 December 31, 2023 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 3.3 34,661 (26,738) 7,923 Trade names acquired 0.3 6,381 (6,179) 202 Total $ 83,830 $ (75,705) $ 8,125 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2024 and over the next five years is as follows: Year ending December 31, Estimated Amortization Expense Remaining in 2024 $ 1,829 2025 2,438 2026 2,438 2027 608 2028 — 2029 — |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverables | Reinsurance recoverable at the balance sheet dates consists of the following: March 31, December 31, 2024 2023 Reinsurance recoverable on unpaid losses and loss adjustment expenses $ 193,949 $ 271,948 Reinsurance recoverable on paid losses and loss adjustment expenses 63,141 69,154 Reinsurance recoverable (1) $ 257,090 $ 341,102 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2024 and 2023 on a GAAP basis: March 31, 2024 2023 Balance at January 1 $ 370,221 $ 842,958 Less: reinsurance recoverable on unpaid losses 271,948 732,254 Net balance at January 1 $ 98,273 $ 110,704 Incurred related to: Current year 16,337 19,577 Prior years (432) (3,165) Total incurred $ 15,905 $ 16,412 Paid related to: Current year 10,702 10,654 Prior years 17,869 14,108 Total paid $ 28,571 $ 24,762 Net balance at March 31 $ 85,607 $ 102,354 Plus: reinsurance recoverable on unpaid losses 193,949 646,011 Balance at March 31 $ 279,556 $ 748,365 Composition of reserve for unpaid losses and LAE: Case reserves $ 97,944 $ 284,679 IBNR reserves 181,612 463,686 Balance at March 31 $ 279,556 $ 748,365 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Issuance Cost Rollforward | The table below presents the roll forward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2024 and 2023: 2024 2023 Balance at January 1, $ 1,312 $ 1,645 Amortization (83) (83) Balance at March 31, $ 1,229 $ 1,562 |
Commitments and Contingencies L
Commitments and Contingencies Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expenses were as follows: Three Months Ended March 31, 2024 2023 Operating lease expense $ 97 $ 222 Financing lease expense: Amortization of leased assets — 7 Net lease expense $ 97 $ 229 |
Lease Assets and Liabilities | The classification of operating and lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows: Financial Statement Line March 31, 2024 December 31, 2023 Assets Operating lease assets Other assets $ 97 $ 593 Total lease assets $ 97 $ 593 Liabilities Operating lease liabilities Operating lease liability $ 105 $ 776 Total lease liabilities $ 105 $ 776 |
Weighted Average Lease Terms | Weighted average remaining lease term and discount rate related to operating leases were as follows: March 31, 2024 December 31, 2023 Weighted average remaining lease term (months) 20 17 Weighted average discount rate 3.47 % 3.30 % |
Lessee, Operating Lease, Liability, Maturity | At March 31, 2024, future minimum gross lease payments relating to these non-cancellable operating lease agreements were as follows: March 31, 2024 Remaining in 2024 $ 59 2025 49 2026 8 2027 — Total undiscounted future minimum lease payments 116 Less: Imputed interest (11) Present value of lease liabilities $ 105 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Credit Loss Allowance Activity [Table] | The following tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2024 and 2023, respectively: March 31, 2024 December 31, 2023 Provision for expected credit losses Write-offs March 31, 2024 Premiums Receivable $ 51 $ (16) $ 18 $ 53 Reinsurance Recoverables 97 (32) — 65 Total $ 148 $ (48) $ 18 $ 118 March 31, 2023 December 31, 2022 Provision for expected credit losses Write-offs March 31, 2023 Premiums Receivable $ 32 $ (34) $ 29 $ 27 Reinsurance Recoverables 333 (183) — 150 Total $ 365 $ (217) $ 29 $ 177 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 loss at period end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2023 $ (20,238) $ 3,101 $ (17,137) Changes in net unrealized losses on investments (198) — (198) Reclassification adjustment for realized losses — — — March 31, 2024 $ (20,436) $ 3,101 $ (17,335) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared | Our Board of Directors declared no dividends on our outstanding shares of common stock to stockholders of record during 2023 or 2024. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
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 (3) Outstanding as of December 31, 2023 (1) 1,028,760 $ 3.83 7.80 $ 6,151,000 Granted — — — — Less: Forfeited — — — — Less: Expired — — — — Less: Exercised — — — — Outstanding as of March 31, 2024 1,028,760 $ 3.83 7.55 $ 7,368,000 Vested as of March 31, 2024 (2) 920,818 $ 4.78 7.31 $ 3,736,000 Exercisable as of March 31, 2024 580,568 $ 4.78 7.31 $ 3,736,000 (1) Contingent options granted during 2023 have been excluded from the calculations above. (2) The vested shares are calculated based on all vested shares at March 31, 2024, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2024. (3) Presented in ones. |
Schedule of Nonvested Share Activity | The following table presents certain information related to the activity of our non-vested restricted common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2023 (1) 445,646 $ 2.64 Granted 30,000 9.46 Less: Forfeited 856 3.59 Less: Vested 32,233 4.36 Outstanding as of March 31, 2024 442,557 $ 2.98 |
Share-based Payment Arrangement, Activity | The following table presents our total stock-based compensation expense: Three Months Ended March 31, 2024 2023 Employee stock-based compensation expense Pre-tax $ 369 $ 309 Post-tax (1) 292 244 Director stock-based compensation expense Pre-tax 59 26 Post-tax (1) 47 21 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted-average assumptions were used to value the stock options granted: 2024 2023 Expected annual dividend yield — % — % Expected volatility — % 80.84 % Risk-free interest rate — % 3.44 % Expected term N/A 6 years |
Organization, Consolidation a_2
Organization, Consolidation and Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 subsidiary | |
Number of Wholly-Owned Subsidiaries | |
Number of Wholly Owned Subsidiaries | 2 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Feb. 27, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross premiums written | $ 197,458 | $ 187,123 | |||
Unearned premiums | (28,636) | (42,647) | |||
Gross premiums earned | 168,822 | 144,476 | |||
Ceded premiums earned | (100,092) | (57,152) | |||
Premiums Earned, Net, Property and Casualty | 68,730 | 87,324 | |||
Investment Income, Net | 4,508 | 2,589 | |||
Gain (Loss) on Investments | 0 | (83) | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (50) | 474 | |||
Other revenue | 16 | 16 | |||
Revenues | 73,204 | 90,320 | |||
Policyholder Benefits and Claims Incurred, Net | 15,906 | 16,412 | |||
Policy acquisition costs | 11,793 | 26,972 | |||
Operating Costs and Expenses | 2,809 | 2,168 | |||
General and administrative expenses | 9,573 | 8,793 | |||
Interest expense | 2,719 | 2,719 | |||
Costs and Expenses | 42,800 | 57,064 | |||
Operating Income (Loss) | 30,404 | 33,256 | |||
Other income | 810 | 588 | |||
Provision for income taxes | 7,615 | 3,477 | |||
Fixed maturities (amortized cost of $559,163 and $672,139 | 178,316 | $ 180,703 | |||
Equity Securities, FV-NI | 6,214 | 0 | |||
Other investments (amortized cost of $16,780 and $17,131 | 14,217 | 16,487 | |||
Cash and Cash Equivalents | 285,400 | 153,762 | |||
Restricted Cash | 20,309 | 18,070 | |||
Accrued Investment Income | 2,534 | 2,104 | |||
Property and equipment, net | 10,351 | 3,658 | |||
Premiums receivable, net | 53,990 | 47,274 | |||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 257,090 | 341,102 | |||
Prepaid Reinsurance Premiums | 137,760 | 159,147 | |||
Deferred policy acquisition costs | 27,290 | 25,041 | |||
Assets | 1,077,311 | 1,060,383 | |||
Liabilities | 873,319 | 891,618 | |||
Other assets, net | 15,853 | 36,141 | |||
Disposal Group, Including Discontinued Operation, Assets | 0 | 8,095 | |||
Unpaid losses and loss adjustment expenses | 279,556 | 748,365 | 370,221 | $ 842,958 | |
Unearned Premiums | 321,693 | 293,057 | |||
Reinsurance Payable | 38,387 | 317 | |||
Payments outstanding | 1,971 | 2,116 | |||
Accounts Payable | 81,725 | 75,284 | |||
Other Liabilities | 1,111 | 1,159 | |||
Notes Payable | 148,771 | 148,688 | |||
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 0 | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 238,440 | |||
Continuing Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross premiums written | 197,458 | 187,123 | |||
Unearned premiums | (28,636) | (42,647) | |||
Gross premiums earned | 168,822 | 144,476 | |||
Ceded premiums earned | (100,092) | (57,152) | |||
Premiums Earned, Net, Property and Casualty | 68,730 | 87,324 | |||
Investment Income, Net | 4,508 | 2,589 | |||
Gain (Loss) on Investments | 0 | (83) | |||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (50) | 474 | |||
Other revenue | 16 | 16 | |||
Revenues | 73,204 | 90,320 | |||
Policyholder Benefits and Claims Incurred, Net | 15,906 | 16,412 | |||
Policy acquisition costs | 11,793 | 26,972 | |||
Operating Costs and Expenses | 2,809 | 2,168 | |||
General and administrative expenses | 9,573 | 8,793 | |||
Interest expense | 2,719 | 2,719 | |||
Costs and Expenses | 42,800 | 57,064 | |||
Operating Income (Loss) | 30,404 | 33,256 | |||
Other income | 810 | 588 | |||
Provision for income taxes | 7,615 | 3,477 | |||
Assets | $ 1,077,311 | 1,052,288 | |||
Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gross premiums written | (120,608) | ||||
Unearned premiums | 198,154 | ||||
Gross premiums earned | 77,546 | ||||
Ceded premiums earned | (48,203) | ||||
Premiums Earned, Net, Property and Casualty | 29,343 | ||||
Investment Income, Net | 2,182 | ||||
Gain (Loss) on Investments | 1,343 | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 2,080 | ||||
Other revenue | 2,717 | ||||
Revenues | 37,665 | ||||
Policyholder Benefits and Claims Incurred, Net | 35,226 | ||||
Policy acquisition costs | (1,352) | ||||
Operating Costs and Expenses | 3,996 | ||||
General and administrative expenses | 1,284 | ||||
Interest expense | 22 | ||||
Costs and Expenses | 39,176 | ||||
Operating Income (Loss) | (1,511) | ||||
Other income | 0 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (1,511) | ||||
Provision for income taxes | 16 | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (1,527) | ||||
Property and equipment, net | $ 8,095 | ||||
Amortization | $ 252 | ||||
Discontinued Operations | UPC Insurance | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Fixed maturities (amortized cost of $559,163 and $672,139 | $ 1,380 | ||||
Equity Securities, FV-NI | 272 | ||||
Other investments (amortized cost of $16,780 and $17,131 | 12,882 | ||||
Cash and Cash Equivalents | 224,824 | ||||
Restricted Cash | 7,758 | ||||
Accrued Investment Income | 875 | ||||
Premiums receivable, net | 22,733 | ||||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 548,929 | ||||
Prepaid Reinsurance Premiums | 75,262 | ||||
Deferred policy acquisition costs | (89) | ||||
Other assets, net | 51,625 | ||||
Disposal Group, Including Discontinued Operation, Assets | 946,451 | ||||
Unpaid losses and loss adjustment expenses | 920,431 | ||||
Unearned Premiums | 98,655 | ||||
Reinsurance Payable | 12,612 | ||||
Payments outstanding | 144,238 | ||||
Accounts Payable | 1,361 | ||||
Other Liabilities | 3,476 | ||||
Notes Payable | 4,118 | ||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 1,184,891 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information | |||
Gross premiums written | $ 197,458 | $ 187,123 | |
Gross premiums earned | 168,822 | 144,476 | |
Ceded premiums earned | (100,092) | (57,152) | |
Premiums Earned, Net, Property and Casualty | 68,730 | 87,324 | |
Investment Income, Net | 4,508 | 2,589 | |
Gain (Loss) on Investments | 0 | (83) | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (50) | 474 | |
Other revenue | 16 | 16 | |
Revenues | 73,204 | 90,320 | |
Policyholder Benefits and Claims Incurred, Net | 15,906 | 16,412 | |
Policy acquisition costs | 11,793 | 26,972 | |
Operating Costs and Expenses | 2,809 | 2,168 | |
General and administrative expenses | 9,573 | 8,793 | |
Interest expense | 2,719 | 2,719 | |
Costs and Expenses | 42,800 | 57,064 | |
Operating Income (Loss) | 30,404 | 33,256 | |
Other income | 810 | 588 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 31,214 | 33,844 | |
Provision for income taxes | 7,615 | 3,477 | |
Net Income (Loss), Parent | $ 23,599 | $ 267,280 | |
Loss Ratio | 23.10% | 18.90% | |
Underwriting Expense Ratio | 35.20% | 43.40% | |
Combined Ratio | 58.30% | 62.30% | |
Assets | $ 1,077,311 | $ 1,060,383 | |
Unearned premiums | (28,636) | $ (42,647) | |
Continuing Operations | |||
Segment Reporting Information | |||
Gross premiums written | 197,458 | 187,123 | |
Gross premiums earned | 168,822 | 144,476 | |
Ceded premiums earned | (100,092) | (57,152) | |
Premiums Earned, Net, Property and Casualty | 68,730 | 87,324 | |
Investment Income, Net | 4,508 | 2,589 | |
Gain (Loss) on Investments | 0 | (83) | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (50) | 474 | |
Other revenue | 16 | 16 | |
Revenues | 73,204 | 90,320 | |
Policyholder Benefits and Claims Incurred, Net | 15,906 | 16,412 | |
Policy acquisition costs | 11,793 | 26,972 | |
Operating Costs and Expenses | 2,809 | 2,168 | |
General and administrative expenses | 9,573 | 8,793 | |
Interest expense | 2,719 | 2,719 | |
Costs and Expenses | 42,800 | 57,064 | |
Operating Income (Loss) | 30,404 | 33,256 | |
Other income | 810 | 588 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 31,214 | 33,844 | |
Provision for income taxes | 7,615 | 3,477 | |
Net Income (Loss), Parent | 23,599 | 30,367 | |
Assets | 1,077,311 | 1,052,288 | |
Unearned premiums | (28,636) | (42,647) | |
Commercial Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 184,601 | 176,641 | |
Gross premiums earned | 160,270 | 132,034 | |
Ceded premiums earned | (97,639) | (53,374) | |
Premiums Earned, Net, Property and Casualty | 62,631 | 78,660 | |
Investment Income, Net | 3,468 | 1,786 | |
Gain (Loss) on Investments | 0 | (83) | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | (50) | 473 | |
Other revenue | 0 | 0 | |
Revenues | 66,049 | 80,836 | |
Policyholder Benefits and Claims Incurred, Net | 11,553 | 13,901 | |
Policy acquisition costs | 12,181 | 25,166 | |
Operating Costs and Expenses | 2,187 | 96 | |
General and administrative expenses | 7,333 | 2,754 | |
Interest expense | 0 | 0 | |
Costs and Expenses | 33,254 | 41,917 | |
Operating Income (Loss) | 32,795 | 38,919 | |
Other income | 0 | 0 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 32,795 | $ 38,919 | |
Loss Ratio | 18.40% | 17.70% | |
Underwriting Expense Ratio | 34.60% | 35.60% | |
Combined Ratio | 53% | 53.30% | |
Assets | $ 903,446 | 896,159 | |
Unearned premiums | (24,331) | $ (44,607) | |
Amortization | 812 | 812 | |
Personal Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 12,857 | 10,482 | |
Gross premiums earned | 8,552 | 12,442 | |
Ceded premiums earned | (2,453) | (3,778) | |
Premiums Earned, Net, Property and Casualty | 6,099 | 8,664 | |
Investment Income, Net | 772 | 782 | |
Gain (Loss) on Investments | 0 | 0 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 0 | 0 | |
Other revenue | 16 | 16 | |
Revenues | 6,887 | 9,462 | |
Policyholder Benefits and Claims Incurred, Net | 4,353 | 2,511 | |
Policy acquisition costs | (388) | 1,806 | |
Operating Costs and Expenses | 536 | 1,948 | |
General and administrative expenses | 2,090 | 5,907 | |
Interest expense | 0 | 0 | |
Costs and Expenses | 6,591 | 12,172 | |
Operating Income (Loss) | 296 | (2,710) | |
Other income | 810 | 803 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 1,106 | $ (1,907) | |
Loss Ratio | 71.40% | 29% | |
Underwriting Expense Ratio | 36.70% | 111.50% | |
Combined Ratio | 108.10% | 140.50% | |
Assets | $ 103,947 | 85,099 | |
Unearned premiums | (4,305) | $ 1,960 | |
Amortization | 1,273 | 1,007 | |
Other Operating Segment | |||
Segment Reporting Information | |||
Gross premiums written | 0 | 0 | |
Gross premiums earned | 0 | 0 | |
Ceded premiums earned | 0 | 0 | |
Premiums Earned, Net, Property and Casualty | 0 | 0 | |
Investment Income, Net | 268 | 21 | |
Gain (Loss) on Investments | 0 | 0 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 0 | 1 | |
Other revenue | 0 | 0 | |
Revenues | 268 | 22 | |
Policyholder Benefits and Claims Incurred, Net | 0 | 0 | |
Policy acquisition costs | 0 | 0 | |
Operating Costs and Expenses | 86 | 124 | |
General and administrative expenses | 150 | 132 | |
Interest expense | 2,719 | 2,719 | |
Costs and Expenses | 2,955 | 2,975 | |
Operating Income (Loss) | (2,687) | (2,953) | |
Other income | 0 | (215) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (2,687) | (3,168) | |
Provision for income taxes | 7,615 | 3,477 | |
Net Income (Loss), Parent | (10,302) | (6,645) | |
Assets | 69,918 | $ 71,030 | |
Unearned premiums | $ 0 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Available-for-sale Securities | ||
Credit Loss Change, Available-for-Sale Investments | $ 0 | $ 0 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities | ||
Fair Value | $ 178,316 | $ 180,703 |
U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 27,494 | 27,489 |
Fair Value | 27,296 | 27,432 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 11 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 198 | 68 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 0 | |
Fair Value | 0 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 25,806 | 26,336 |
Fair Value | 23,277 | 23,865 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 9 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 2,529 | 2,480 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 5,632 | 5,645 |
Fair Value | 5,128 | 5,134 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 504 | 511 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 70,027 | 70,197 |
Fair Value | 61,473 | 61,849 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 8 | 20 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 8,562 | 8,368 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 52,627 | 53,619 |
Fair Value | 45,440 | 46,310 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 7,187 | 7,309 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 17,164 | 17,665 |
Fair Value | 15,702 | 16,113 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 3 | 9 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 1,465 | 1,561 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 198,750 | 200,951 |
Fair Value | 178,316 | 180,703 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 11 | 49 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | $ 20,445 | $ 20,297 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value at Sale | ||
Fair value at sale | $ 3,957 | $ 5,418 |
Fair value at sale | 0 | (41) |
Net fair value at sale | 3,957 | 5,377 |
Debt Securities, Available-for-Sale, Realized Gain | 0 | 4 |
Debt Securities, Available-for-Sale, Realized Loss | 0 | (87) |
Debt Securities, Available-for-Sale, Realized Gain (Loss) | 0 | (83) |
Fixed Maturities | ||
Fair Value at Sale | ||
Fair value at sale | 1,957 | 5,292 |
Fair value at sale | 0 | (41) |
Debt Securities, Available-for-Sale, Realized Gain | 0 | 4 |
Debt Securities, Available-for-Sale, Realized Loss | 0 | (87) |
Short-term Investments | ||
Fair Value at Sale | ||
Fair value at sale | 0 | 126 |
Debt Securities, Available-for-Sale, Realized Gain | 0 | 0 |
Limited Partnership | ||
Fair Value at Sale | ||
Fair value at sale | 2,000 | 0 |
Debt Securities, Available-for-Sale, Realized Gain | $ 0 | $ 0 |
Investments - Investments Class
Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Total | $ 178,316 | $ 180,703 |
Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 12,395 | |
Due after one year through five years | 62,890 | |
Due after five years through ten years | 51,157 | |
Due after ten years | 2,517 | |
Asset and mortgage backed securities | 69,791 | |
Cost or adjusted/amortized cost | $ 198,750 | 200,951 |
Percent of Total | ||
Due in one year or less | 6.20% | |
Due after one year through five years | 31.60% | |
Due after five years through ten years | 25.70% | |
Due after ten years | 1.30% | |
Asset and mortgage backed securities | 35.20% | |
Total | 100% | |
Fair Value | ||
Due in one year or less | $ 12,284 | |
Due after one year through five years | 59,194 | |
Due after five years through ten years | 43,629 | |
Due after ten years | 2,067 | |
Asset and mortgage backed securities | 61,142 | |
Total | $ 178,316 | $ 180,703 |
Percent of Total | ||
Due in one year or less | 6.90% | |
Due after one year through five years | 33.20% | |
Due after five years through ten years | 24.50% | |
Due after ten years | 1.20% | |
Asset and mortgage backed securities | 34.20% | |
Total | 100% |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Investment Income | ||
Investment income | $ 4,571 | $ 2,663 |
Investment expenses | (63) | (74) |
Net investment income | 4,508 | 2,589 |
Fixed Maturities | ||
Net Investment Income | ||
Investment income | 1,281 | 1,272 |
Equity Securities | ||
Net Investment Income | ||
Investment income | 13 | 81 |
Cash and cash equivalents | ||
Net Investment Income | ||
Investment income | 3,122 | 1,304 |
Other Investments | ||
Net Investment Income | ||
Investment income | $ 155 | $ 6 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
U.S. Government and Agency Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 14 | 9 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 131 | $ 14 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 25,867 | $ 19,943 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 2 | 2 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 67 | $ 54 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 1,428 | $ 1,430 |
States, Municipalities and Political Subdivisions | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 5 | 4 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 39 | $ 12 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 2,508 | $ 2,052 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 44 | 44 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,490 | $ 2,468 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 20,519 | $ 20,571 |
Public Utilities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 0 | 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 0 | $ 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 12 | 12 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 504 | $ 511 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 5,128 | $ 5,134 |
Corporate Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 1 | 3 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 2 | $ 27 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 598 | $ 1,255 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 136 | 133 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 8,560 | $ 8,341 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 60,311 | $ 59,419 |
Mortgage-backed securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 2 | 2 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 29 | $ 14 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 783 | $ 807 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 114 | 117 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 7,158 | $ 7,295 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 43,756 | $ 45,502 |
Asset-backed Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 3 | 4 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 12 | $ 6 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 1,136 | $ 1,354 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 43 | 43 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,453 | $ 1,555 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 13,844 | $ 14,074 |
Fixed Maturities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 25 | 22 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 213 | $ 73 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 30,892 | $ 25,411 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 351 | 351 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 20,232 | $ 20,224 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 144,986 | $ 146,130 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities | ||
Fair Value | $ 178,316 | $ 180,703 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 178,316 | 180,703 |
Debt Securities, Trading, and Equity Securities, FV-NI | 198,567 | 194,707 |
U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 27,296 | 27,432 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 27,296 | 27,432 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 23,277 | 23,865 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 23,277 | 23,865 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 5,128 | 5,134 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 5,128 | 5,134 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 61,473 | 61,849 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 61,473 | 61,849 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 45,440 | 46,310 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 45,440 | 46,310 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 15,702 | 16,113 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 15,702 | 16,113 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 178,316 | 180,703 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 178,316 | 180,703 |
Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 6,214 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 6,214 | 0 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 14,217 | |
Fixed maturities (amortized cost of $559,163 and $672,139 | 14,217 | |
Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 6,214 | 0 |
Short-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 14,037 | 14,004 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 14,037 | 14,004 |
Level 1 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 6,214 | 0 |
Level 1 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
Level 1 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 6,214 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 6,214 | 0 |
Level 1 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 0 | 0 |
Level 1 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 6,214 | 0 |
Level 2 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 192,353 | 194,707 |
Level 2 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 27,296 | 27,432 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 27,296 | 27,432 |
Level 2 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
Level 2 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 23,277 | 23,865 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 23,277 | 23,865 |
Level 2 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 5,128 | 5,134 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 5,128 | 5,134 |
Level 2 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 61,473 | 61,849 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 61,473 | 61,849 |
Level 2 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 45,440 | 46,310 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 45,440 | 46,310 |
Level 2 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 15,702 | 16,113 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 15,702 | 16,113 |
Level 2 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 178,316 | 180,703 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 178,316 | 180,703 |
Level 2 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 2 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 14,037 | 14,004 |
Level 2 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 0 | 0 |
Level 3 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 0 | 0 |
Level 3 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
Level 3 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value | 0 | 0 |
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 0 | 0 |
Level 3 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | $ 0 | $ 0 |
Investments - Schedule of Other
Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Investments | ||
Fair Value | $ 178,316 | $ 180,703 |
Other Long-term Investments | ||
Other Investments | ||
Unrealized Loss | 24 | |
Unrealized Gain | 120 | |
Fair Value | 14,217 | |
Fixed maturities, cost | 14,121 | 16,118 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 120 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 24 | |
Short-term Investments | ||
Other Investments | ||
Unrealized Loss | 24 | |
Unrealized Gain | 2 | |
Fair Value | 14,037 | $ 14,004 |
Fixed maturities, cost | 14,059 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 2 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 24 | |
Limited Partnership | ||
Other Investments | ||
Unrealized Loss | 0 | |
Unrealized Gain | 118 | |
Fixed maturities, cost | 62 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 118 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Fair Value of Limited Partnership Interest | $ 180 |
Investments - Equity Securities
Investments - Equity Securities, FV-NI (Details) - Mutual Fund - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI | ||
Fair value | $ 6,214 | $ 0 |
Percent of Total | 100% | 0% |
Investments - Restricted Cash (
Investments - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Restricted Cash and Cash Equivalents Items | ||
Assets Held-in-trust | $ 19,677 | $ 17,439 |
Restricted Cash | 20,309 | 18,070 |
Regulatory Assets, Fair Value Disclosure | 632 | 631 |
Security Deposit | $ 1,495 | $ 1,495 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net income attributable to UIHC common stockholders | $ 23,599 | $ 267,280 |
Denominator | ||
Weighted-average shares outstanding | 47,323,356 | 43,124,825 |
Effect of dilutive securities | 1,646,194 | 450,015 |
Weighted-average diluted shares | 48,969,550 | 43,574,840 |
Basic earnings per share | $ 0.50 | $ 6.19 |
Diluted earnings per share | $ 0.48 | $ 6.14 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 1,273 | $ 1,008 | |
Acccumulated Depreciation on disposed systems | 98 | $ 379 | |
Leased Vehicle Disposal | 1,069 | ||
Accumulated Depreciation - Leased Vehicles Disposed of | 1,038 | ||
Gain on Leased Vehicle Disposal | 559 | ||
Leasehold Improvement Disposal | 311 | ||
Accumulated Depreciation - Leasehold improvements | 232 | ||
Capitalized Software Disposal | 147 | 1,061 | |
Furniture Disposal | 43 | 749 | |
Accumulated Depreciation - Disposed Furniture | $ 41 | $ 702 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment | ||
Total, at cost | $ 16,578 | $ 8,984 |
Less: Accumulated Depreciation and Amortization, Property, Plant, and Equipment | (6,227) | (5,326) |
Property, Plant and Equipment, Net | 10,351 | 3,658 |
Office Equipment | ||
Property, Plant and Equipment | ||
Total, at cost | 705 | 748 |
Computer Equipment | ||
Property, Plant and Equipment | ||
Total, at cost | 15,873 | 7,925 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Total, at cost | $ 0 | $ 311 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 812 | ||
Goodwill | 59,476 | $ 59,476 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 10,156 | ||
Gain (Loss) on Disposition of Intangible Assets | $ 200 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Acquired Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 83,830 | $ 83,830 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (76,517) | (75,705) | |
Finite-Lived Intangible Assets, Net | 7,313 | 8,125 | |
Value of Business Acquired | |||
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 | (27,348) | (26,738) | |
Finite-Lived Intangible Assets, Net | $ 7,313 | 7,923 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | 3 years 3 months | |
Trade Names | |||
Acquired Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 6,381 | 6,381 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,381) | (6,179) | |
Finite-Lived Intangible Assets, Net | $ 0 | $ 202 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years | 3 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 1,829 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 2,438 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 2,438 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 608 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 0 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 1,198 | $ 1,198 |
Finite-Lived Intangible Assets, Net | 7,313 | 8,125 |
Intangible Assets, Net (Excluding Goodwill) | $ 8,511 | $ 9,323 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Reinsurance Retention Policy | |||
Document Period End Date | Mar. 31, 2024 | ||
Ceded Premiums Earned | $ 100,092 | $ 57,152 | |
Interboro Insurance | Catastrophe Excess of Loss | |||
Reinsurance Retention Policy | |||
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | 82,000 | ||
Event Retention Level | 3,000 | ||
American Coastal Insurance Company | Catastrophe Excess of Loss | |||
Reinsurance Retention Policy | |||
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | 1,300,000 | ||
Event Retention Level | 10,000 | ||
Reinsurance, Excess Retention, Amount Reinsured, Per Event | 1,100,000 | ||
American Coastal Insurance Company | All Other Perilds Catastrophe Excess of Loss | |||
Reinsurance Retention Policy | |||
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | 172,000 | ||
UPC Re | Catastrophe Excess of Loss | |||
Reinsurance Retention Policy | |||
Event Retention Level | 2,250 | ||
Reinsurance Contract [Axis]: XOL Commutation | |||
Reinsurance Retention Policy | |||
Ceded Premiums Earned | $ 9,400 | $ 6,300 |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Reinsurance Recoverable | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 193,949 | $ 271,948 | $ 646,011 | $ 732,254 |
Reinsurance Recoverable for Paid Claims and Claims Adjustments | 63,141 | 69,154 | ||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | $ 257,090 | $ 341,102 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Unpaid losses and loss adjustment expenses | $ 279,556 | $ 748,365 | $ 370,221 | $ 842,958 |
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 193,949 | 646,011 | 271,948 | 732,254 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 85,607 | 102,354 | $ 98,273 | $ 110,704 |
Current Year Claims and Claims Adjustment Expense | 16,337 | 19,577 | ||
Prior Year Claims and Claims Adjustment Expense | (432) | 3,165 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 15,905 | 16,412 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 10,702 | 10,654 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 17,869 | 14,108 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 28,571 | 24,762 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | 97,944 | 284,679 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 181,612 | $ 463,686 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 13, 2017 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument | |||
Notes Payable | $ 148,771 | $ 148,688 | |
150M Senior Notes | |||
Debt Instrument | |||
Notes Payable | $ 150,000 | ||
Interest rate (percentage) | 6.25% | ||
Debt Instrument, Term | 10 years |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) | Dec. 13, 2017 Rate |
150M Senior Notes | |
Debt Instrument | |
Interest rate (percentage) | 6.25% |
Debt Issuance Cost Rollforward
Debt Issuance Cost Rollforward (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||||
Accumulated Amortization, Debt Issuance Costs | $ (83) | $ (83) | ||
Debt Issuance Costs, Net | $ 1,229 | $ 1,312 | $ 1,562 | $ 1,645 |
Commitments and Contingencies_2
Commitments and Contingencies Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease Costs | ||
Operating Lease, Expense | $ 97 | $ 222 |
Finance Lease, Right-of-Use Asset, Amortization | 0 | 7 |
Lease, Cost | $ 97 | $ 229 |
Commitments and Contingencies_3
Commitments and Contingencies Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Lessee, Lease, Description | ||
Operating Lease, Right-of-Use Asset | $ 97 | $ 593 |
Total Lease Assets | 97 | 593 |
Operating Lease, Liability | 105 | 776 |
Total Lease Liability | $ 105 | $ 776 |
Commitments and Contingencies W
Commitments and Contingencies Weighted Average Lease Terms (Details) | Mar. 31, 2024 Rate | Dec. 31, 2023 Rate |
Weighted Average Terms | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.47% | 3.30% |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 8 months | 1 year 5 months |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Future Minimum Rental Payments | ||
Total Lease Future Payments Year 1 | $ 59 | |
Total Lease Future Payments Year 2 | 49 | |
Total Lease Future Payments Year 3 | 8 | |
Total Lease Future Payments Year 4 | 0 | |
Total Lease Future Payments | 116 | |
Total Lease Liability Undiscounted Excess Amount | (11) | |
Operating Lease, Liability | 105 | $ 776 |
Total Lease Liability | $ 105 | $ 776 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Estimate of Possible Loss | $ 5,718 |
Gain Contingency, Unrecorded Amount | 10,161 |
Sublease Income | 33 |
Director and Office Liability Insurance Limit | 40,000 |
Loss Contingency Accrual | $ 1,500 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Credit Loss Allowance Activity | ||||
Premium Receivable, Allowance for Credit Loss | $ 53 | $ 27 | $ 51 | $ 32 |
Reinsurance Recoverable, Allowance for Credit Loss | 65 | 150 | 97 | 333 |
Financing Receivable, Allowance for Credit Loss | 0 | 0 | ||
Total Credit Loss Allowances | 118 | 177 | $ 148 | $ 365 |
Premium Receivable, Credit Loss Expense (Reversal) | (16) | (34) | ||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | (32) | (183) | ||
Total Credit Loss Allowance Expenses | (48) | (217) | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | 18 | 29 | ||
Reinsurance recoverable, allowance for credit loss, writeoff | 0 | 0 | ||
Total Credit Loss Allowance Writeoffs | $ 18 | $ 29 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Insurance [Abstract] | |||
Statutory capital and surplus balance | $ 193,030 | $ 166,113 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | 24,624 | $ 16,027 | |
Statutory capital and surplus balance | 193,030 | 166,113 | |
Statutory net income (loss) | 24,624 | 16,027 | |
American Coastal Insurance Company | |||
Insurance [Abstract] | |||
Statutory capital and surplus balance | 170,607 | 143,452 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | 24,929 | 18,230 | |
Statutory capital and surplus balance | 170,607 | 143,452 | |
Statutory net income (loss) | 24,929 | 18,230 | |
Interboro Insurance | |||
Insurance [Abstract] | |||
Statutory capital and surplus balance | 22,423 | 22,661 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | (305) | (2,203) | |
Statutory capital and surplus balance | 22,423 | $ 22,661 | |
Statutory net income (loss) | $ (305) | $ (2,203) |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI before Tax, Attributable to Parent | $ (20,436) | $ (20,238) | |
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit | 3,101 | 3,101 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (17,335) | $ (17,137) | |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | 198 | $ (4,231) | |
Reclassification adjustment for net realized investment (gains) losses | 0 | $ 83 | |
Consolidated Entity Excluding Noncontrolling Interests | |||
Accumulated Other Comprehensive Income (Loss) | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | (198) | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (198) | ||
Reclassification adjustment for net realized investment (gains) losses | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ 0 |
Stockholders' Equity Narrative
Stockholders' Equity Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Stockholders' Equity Narrative [Abstract] | |
Stock Repurchase Program, Authorized Amount | $ 25,000,000 |
Shares available for issuance under at the market offering | shares | 8,000,000 |
Payments of Stock Issuance Costs | $ 1,181,000 |
Sale of Stock, Consideration Received on Transaction | $ 38,190,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) year | Mar. 31, 2023 USD ($) | |
Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized Stock Compensation Expense | $ 1,886 | |
Weighted average remaining expense period | year | 1.7 | |
Pre-Tax Expense | $ 369 | $ 309 |
Post-Tax Expense | 292 | 244 |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized Stock Compensation Expense | $ 41 | |
Weighted average remaining expense period | year | 0.2 | |
Pre-Tax Expense | $ 59 | 26 |
Post-Tax Expense | $ 47 | $ 21 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Common Stock Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted shares | 30,000 | |
Less: Forfeited shares | 856 | |
Less: Vested shares | 32,233 | |
Outstanding shares | 442,557 | 445,646 |
Granted (fair value) | $ 9.46 | |
Less: Forfeited (fair value) | 3.59 | |
Less: Vested (fair value) | 4.36 | |
Outstanding (fair value) | $ 2.98 | $ 2.64 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions - Stock Options (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 Rate | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | |
Expected volatility | 80.84% | |
Risk-free interest rate | 3.44% |
Stock-Based Compensation - No_2
Stock-Based Compensation - Non-Vested Stock Options (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Granted shares | 0 | |
Less: Forfeited shares | 0 | |
Outstanding shares | 1,028,760 | 1,028,760 |
Vested Shares | 920,818 | |
Exercisable shares | 580,568 | |
Granted (Weighted-Average Exercise) | $ 0 | |
Less: Forfeited (Weighted-Average Exercise) | 0 | |
Less: Exercised, (Weighted Average Exercise Price) | 0 | |
Outstanding (Weight-Average Exercise) | 3.83 | $ 3.83 |
Vested (Weighted-Average Exercise) | 4.78 | |
Exercisable (Weighted-Average Exercise) | $ 4.78 | |
Outstanding Options, weighted average remaining contractual term | 7 years 6 months | 7 years 10 months |
Vested weighted average remaining contractual term | 7 years 3 months | |
Exercisable weighted average remaining contractual term | 7 years 3 months | |
Granted Options, Intrinsic Value | $ 0 | |
Forfeited Options, Intrinsic Value | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | |
Exercised Options, Intrinsic Value | $ 0 | |
Outstanding Options, Intrinsic Value | 7,368,000 | $ 6,151,000 |
Vested Options, Intrinsic value | 3,736,000 | |
Exercisable Options, Intrinsic Value | $ 3,736,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Subsequent Event | |
Loss Contingency Accrual | $ 1,500 |
Subsequent Events | SUBSEQUENT EVENTS We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. Effective April 17, 2024, the Company secured $200 million dollars of excess of loss reinsurance limit related to its AmCoastal core catastrophe reinsurance program for 2024-2025. This limit attaches to AmCoastal's reinsurance coverage at $275 million and was obtained through 10.25% catastrophe bonds issued by Armor Re II Ltd., a Bermuda-domiciled special purpose insurer. On May 9, 2024, the Company signed definitive agreements with Forza Insurance Holdings, LLC ("Forza") in which the Company will sell and Forza will acquire 100% of the issued and outstanding stock of IIC. Closing is subject to the approval of the New York Department of Financial Services. Concurrently, IIC and SageSure entered into a Program Administrator Agreement and Claims Services Agreement on May 9, 2024. Under the terms of these service agreements, SageSure will provide policy administration, underwriting and claims administration services on behalf of IIC. |