Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2023 | |
Cover [Abstract] | |
Document Type | S-4 |
Amendment Flag | false |
Entity Registrant Name | Conifer Holdings, Inc. |
Entity Central Index Key | 0001502292 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets (Q1
Consolidated Balance Sheets (Q1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investment securities: | ||||||
Debt securities, at fair value | $ 110,633 | $ 110,201 | $ 149,783 | |||
Equity securities, at fair value (cost of $2,369 and $1,905, respectively) | 2,425 | 1,267 | 9,931 | |||
Short-term investments, at fair value | 28,055 | 25,929 | 23,013 | |||
Total investments | 141,113 | 137,397 | 182,727 | |||
Cash and cash equivalents | 21,549 | 28,035 | 9,913 | |||
Premiums and agents' balances receivable, net | 21,713 | 21,802 | 21,197 | |||
Receivable from Affiliate | 1,245 | 1,261 | 5,784 | |||
Reinsurance recoverables on unpaid losses | 61,101 | 82,651 | $ 40,605 | 40,344 | $ 24,218 | $ 22,579 |
Reinsurance recoverables on paid losses | 9,023 | 6,653 | 1,347 | |||
Prepaid reinsurance premiums | 21,929 | 16,399 | 8,301 | |||
Deferred policy acquisition costs | 8,326 | 10,290 | 10,124 | 12,267 | 12,243 | 11,906 |
Other assets | 7,172 | 7,862 | 8,524 | |||
Total assets | 293,171 | 312,350 | 290,404 | |||
Liabilities: | ||||||
Unpaid losses and loss adjustment expenses | 145,362 | 165,539 | $ 140,938 | 139,085 | 111,270 | $ 107,246 |
Unearned premiums | 69,807 | 67,887 | 65,269 | $ 56,224 | ||
Reinsurance premium payable | 7,463 | 6,144 | 5,318 | |||
Debt | 33,954 | 33,876 | 33,564 | |||
Accounts payable and accrued expenses | 14,293 | 19,954 | 6,665 | |||
Total liabilities | 270,879 | 293,400 | 249,901 | |||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Common stock, no par value (100,000,000 shares authorized; 12,215,849 issued and outstanding, respectively) | 97,968 | 97,913 | 92,692 | |||
Accumulated deficit | (59,759) | (60,760) | (50,079) | |||
Accumulated other comprehensive income (loss) | (15,917) | (18,203) | (2,110) | |||
Total shareholders' equity | 22,292 | 18,950 | 40,503 | |||
Total liabilities and shareholders' equity | $ 293,171 | $ 312,350 | $ 290,404 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Q1) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Debt securities, amortized cost | $ 125,274 | $ 127,119 | $ 150,732 |
Equity securities, amortized cost | $ 2,369 | $ 1,905 | $ 10,972 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) (Q1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Revenue and Other Income | |||||||
Gross earned premiums | $ 34,294 | $ 32,764 | $ 135,401 | $ 123,050 | $ 106,614 | ||
Ceded earned premiums | (12,342) | (8,809) | (38,690) | (24,248) | (17,511) | ||
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 | ||
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 | ||
Net realized investment gains (losses) | 0 | (69) | (1,505) | 2,878 | 8,126 | ||
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 | ||
Loss portfolio transfer risk fee | (5,400) | 0 | 0 | ||||
Other gains (losses) | 0 | (5) | 59 | 11,664 | 260 | ||
Other income | 626 | 698 | 2,768 | 2,671 | 2,615 | ||
Total revenue and other income | 24,579 | 25,366 | 104,889 | 115,963 | 103,488 | ||
Expenses | |||||||
Losses and loss adjustment expenses, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 | ||
Policy acquisition costs | 4,721 | 5,464 | 22,179 | 28,451 | 26,105 | ||
Operating expenses | 4,279 | 4,160 | 18,789 | 16,509 | 18,468 | ||
Interest expense | 686 | 711 | 2,971 | 2,852 | 2,925 | ||
Total expenses | 23,399 | 28,353 | 125,379 | 117,673 | 103,726 | ||
Income (loss) before equity earnings in Affiliate and income taxes | 1,180 | (2,987) | (20,490) | (1,710) | (238) | ||
Equity earnings (loss) in Affiliate, net of tax | (179) | 76 | 368 | 824 | 839 | ||
Income tax expense (benefit) | 0 | (41) | (9,441) | 208 | 6 | ||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 | ||
Earnings (loss) per common share, basic | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Earnings (loss) per common share, diluted | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Weighted average common shares outstanding, basic | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Weighted average common shares outstanding, diluted | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
[1]The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Q1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 |
Unrealized investment gains (losses): | |||||
Unrealized investment gains (losses) during the period | 2,286 | (7,287) | (16,024) | (2,937) | 1,589 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net of tax | 2,286 | (7,287) | (16,024) | (2,937) | 1,589 |
Less: reclassification adjustments to: | |||||
Net realized investment gains (losses) included in net income (loss) | 0 | 0 | 69 | 85 | 1,166 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | 0 |
Total reclassifications included in net income (loss), net of tax | 0 | 0 | 69 | 85 | 1,166 |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Total comprehensive income (loss) | $ 3,287 | $ (10,157) | $ (26,774) | $ (4,116) | $ 1,018 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Q1) - USD ($) $ in Thousands | Total | No Par, Common Stock | Retained Earnings (Accumulated deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2019 | $ 42,725 | $ 91,816 | $ (49,580) | $ 489 |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 9,592,861 | |||
Net income (loss) | 595 | 595 | ||
Stock-based compensation expense | 706 | $ 706 | ||
Stock-based compensation expense, Shares | 100,453 | |||
Other comprehensive income (loss) | 423 | 423 | ||
Balance at ending of period at Dec. 31, 2020 | 44,413 | $ 92,486 | (48,985) | 912 |
Balance at ending of period (in shares) at Dec. 31, 2020 | 9,681,728 | |||
Net income (loss) | (1,094) | (1,094) | ||
Stock-based compensation expense | 218 | $ 218 | ||
Stock-based compensation expense, Shares | 29,975 | |||
Other comprehensive income (loss) | (3,022) | (3,022) | ||
Balance at ending of period at Dec. 31, 2021 | 40,503 | $ 92,692 | (50,079) | (2,110) |
Balance at ending of period (in shares) at Dec. 31, 2021 | 9,707,817 | |||
Net income (loss) | (2,870) | (2,870) | ||
Stock-based compensation expense | 38 | $ 38 | ||
Other comprehensive income (loss) | (7,287) | (7,287) | ||
Balance at ending of period at Mar. 31, 2022 | 30,384 | $ 92,730 | (52,949) | (9,397) |
Balance at ending of period (in shares) at Mar. 31, 2022 | 9,707,817 | |||
Balance at beginning of period at Dec. 31, 2021 | 40,503 | $ 92,692 | (50,079) | (2,110) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 9,707,817 | |||
Net income (loss) | (10,681) | (10,681) | ||
Stock-based compensation expense | 211 | $ 211 | ||
Stock-based compensation expense, Shares | 10,000 | |||
Other comprehensive income (loss) | (16,093) | (16,093) | ||
Balance at ending of period at Dec. 31, 2022 | 18,950 | $ 97,913 | (60,760) | (18,203) |
Balance at ending of period (in shares) at Dec. 31, 2022 | 12,215,849 | |||
Net income (loss) | 1,001 | 1,001 | ||
Stock-based compensation expense | 55 | $ 55 | ||
Other comprehensive income (loss) | 2,286 | 2,286 | ||
Balance at ending of period at Mar. 31, 2023 | $ 22,292 | $ 97,968 | $ (59,759) | $ (15,917) |
Balance at ending of period (in shares) at Mar. 31, 2023 | 12,215,849 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) (Q1) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Cash Flows From Operating Activities | |
Net income (loss) | $ 1,001 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |
Depreciation and amortization | 98 |
Amortization of bond premium and discount, net | (97) |
Change in fair value of equity securities | (694) |
Stock-based compensation expenses | 55 |
Equity loss (earnings) in Affiliate, net of tax | 179 |
(Increase) decrease in: | |
Premiums and agents' balances and other receivables | (91) |
Reinsurance recoverables | 19,180 |
Prepaid reinsurance premiums | (5,530) |
Deferred policy acquisition costs | 1,964 |
Other assets | (418) |
Increase (decrease) in: | |
Unpaid losses and loss adjustment expenses | (20,177) |
Unearned premiums | 1,920 |
Reinsurance premiums payable | (1,456) |
Accounts payable and other liabilities | (1,952) |
Net cash provided by (used in) operating activities | (6,018) |
Cash Flows From Investing Activities | |
Purchase of investments | (60,052) |
Proceeds from maturities and redemptions of investments | 2,105 |
Proceeds from sales of investments | 58,413 |
Contribution to SSU | 934 |
Net cash provided by (used in) investing activities | (468) |
Cash Flows From Financing Activities | |
Net increase (decrease) in cash | (6,486) |
Cash at beginning of period | 28,035 |
Cash at end of period | 21,549 |
Supplemental Disclosure of Cash Flow Information: | |
Interest paid | $ 686 |
Consolidated Balance Sheets (FY
Consolidated Balance Sheets (FY) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investment securities: | ||||||
Debt securities, at fair value | $ 110,633 | $ 110,201 | $ 149,783 | |||
Equity securities, at fair value (cost of $1,905 and $10,972, respectively) | 2,425 | 1,267 | 9,931 | |||
Short-term investments, at fair value | 28,055 | 25,929 | 23,013 | |||
Total investments | 141,113 | 137,397 | 182,727 | |||
Cash and cash equivalents | 21,549 | 28,035 | 9,913 | |||
Premiums and agents' balances receivable, net | 21,713 | 21,802 | 21,197 | |||
Receivable from Affiliate | 1,245 | 1,261 | 5,784 | |||
Reinsurance recoverables on unpaid losses | 61,101 | 82,651 | $ 40,605 | 40,344 | $ 24,218 | $ 22,579 |
Reinsurance recoverables on paid losses | 9,023 | 6,653 | 1,347 | |||
Prepaid reinsurance premiums | 21,929 | 16,399 | 8,301 | |||
Deferred policy acquisition costs | 8,326 | 10,290 | 10,124 | 12,267 | 12,243 | 11,906 |
Other assets | 7,172 | 7,862 | 8,524 | |||
Total assets | 293,171 | 312,350 | 290,404 | |||
Liabilities: | ||||||
Unpaid losses and loss adjustment expenses | 145,362 | 165,539 | $ 140,938 | 139,085 | 111,270 | $ 107,246 |
Unearned premiums | 69,807 | 67,887 | 65,269 | $ 56,224 | ||
Reinsurance premiums payable | 7,463 | 6,144 | 5,318 | |||
Debt | 33,954 | 33,876 | 33,564 | |||
Accounts payable and accrued expenses | 14,293 | 19,954 | 6,665 | |||
Total liabilities | 270,879 | 293,400 | 249,901 | |||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Common stock, no par value (100,000,000 shares authorized; 12,215,849 and 9,681,728 issued and outstanding, respectively) | 97,968 | 97,913 | 92,692 | |||
Accumulated deficit | (59,759) | (60,760) | (50,079) | |||
Accumulated other comprehensive income (loss) | (15,917) | (18,203) | (2,110) | |||
Total shareholders' equity | 22,292 | 18,950 | 40,503 | |||
Total liabilities and shareholders' equity | $ 293,171 | $ 312,350 | $ 290,404 |
Consolidated Balance Sheets (_3
Consolidated Balance Sheets (FY) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Debt securities, amortized cost | $ 125,274 | $ 127,119 | $ 150,732 |
Equity securities, amortized cost | $ 2,369 | $ 1,905 | $ 10,972 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (FY) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Revenue and Other Income | |||||||
Gross earned premiums | $ 34,294 | $ 32,764 | $ 135,401 | $ 123,050 | $ 106,614 | ||
Ceded earned premiums | (12,342) | (8,809) | (38,690) | (24,248) | (17,511) | ||
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 | ||
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 | ||
Net realized investment gains (losses) | 0 | (69) | (1,505) | 2,878 | 8,126 | ||
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 | ||
Gain from VSRM Transaction | 8,810 | 0 | 0 | ||||
Loss portfolio transfer risk fee | (5,400) | 0 | 0 | ||||
Other gains (losses) | 0 | (5) | 59 | 11,664 | 260 | ||
Other income | 626 | 698 | 2,768 | 2,671 | 2,615 | ||
Total revenue and other income | 24,579 | 25,366 | 104,889 | 115,963 | 103,488 | ||
Expenses | |||||||
Losses and loss adjustment expenses, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 | ||
Policy acquisition costs | 4,721 | 5,464 | 22,179 | 28,451 | 26,105 | ||
Operating expenses | 4,279 | 4,160 | 18,789 | 16,509 | 18,468 | ||
Interest expense | 686 | 711 | 2,971 | 2,852 | 2,925 | ||
Total expenses | 23,399 | 28,353 | 125,379 | 117,673 | 103,726 | ||
Income (loss) before equity earnings in Affiliate and income taxes | 1,180 | (2,987) | (20,490) | (1,710) | (238) | ||
Equity earnings in Affiliate, net of tax | (179) | 76 | 368 | 824 | 839 | ||
Income tax expense (benefit) | 0 | (41) | (9,441) | 208 | 6 | ||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 | ||
Net income (loss) per share, basic | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Net income (loss) per share, diluted | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Weighted average common shares outstanding, basic | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Weighted average common shares outstanding, diluted | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
[1]The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (FY) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 |
Unrealized investment gains (losses): | |||||
Unrealized investment gains (losses) during the period | 2,286 | (7,287) | (16,024) | (2,937) | 1,589 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net of tax | 2,286 | (7,287) | (16,024) | (2,937) | 1,589 |
Less: reclassification adjustments to: | |||||
Net realized investment gains (losses) included in net income (loss) | 0 | 0 | 69 | 85 | 1,166 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | 0 |
Total reclassifications included in net income (loss), net of tax | 0 | 0 | 69 | 85 | 1,166 |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Total comprehensive income (loss) | $ 3,287 | $ (10,157) | $ (26,774) | $ (4,116) | $ 1,018 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity (FY) - USD ($) $ in Thousands | Total | No Par, Common Stock | Retained Earnings (Accumulated deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2019 | $ 42,725 | $ 91,816 | $ (49,580) | $ 489 |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 9,592,861 | |||
Net income (loss) | 595 | 595 | ||
Repurchase of common stock | (36) | $ (36) | ||
Repurchase of common stock (in shares) | (11,586) | |||
Stock-based compensation expense | 706 | $ 706 | ||
Stock-based compensation expense, Shares | 100,453 | |||
Other comprehensive income (loss) | 423 | 423 | ||
Balance at ending of period at Dec. 31, 2020 | 44,413 | $ 92,486 | (48,985) | 912 |
Balance at ending of period (in shares) at Dec. 31, 2020 | 9,681,728 | |||
Net income (loss) | (1,094) | (1,094) | ||
Repurchase of common stock | (12) | $ (12) | ||
Repurchase of common stock (in shares) | (3,886) | |||
Stock-based compensation expense | 218 | $ 218 | ||
Stock-based compensation expense, Shares | 29,975 | |||
Other comprehensive income (loss) | (3,022) | (3,022) | ||
Balance at ending of period at Dec. 31, 2021 | 40,503 | $ 92,692 | (50,079) | (2,110) |
Balance at ending of period (in shares) at Dec. 31, 2021 | 9,707,817 | |||
Net income (loss) | (2,870) | (2,870) | ||
Stock-based compensation expense | 38 | $ 38 | ||
Other comprehensive income (loss) | (7,287) | (7,287) | ||
Balance at ending of period at Mar. 31, 2022 | 30,384 | $ 92,730 | (52,949) | (9,397) |
Balance at ending of period (in shares) at Mar. 31, 2022 | 9,707,817 | |||
Balance at beginning of period at Dec. 31, 2021 | 40,503 | $ 92,692 | (50,079) | (2,110) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 9,707,817 | |||
Net income (loss) | (10,681) | (10,681) | ||
Repurchase of common stock | 10 | $ 10 | ||
Repurchase of common stock (in shares) | (1,968) | |||
Issuance of common stock private placement | 5,000 | $ 5,000 | ||
Issuance of common stock private placement (in shares) | 2,500,000 | |||
Stock-based compensation expense | 211 | $ 211 | ||
Stock-based compensation expense, Shares | 10,000 | |||
Other comprehensive income (loss) | (16,093) | (16,093) | ||
Balance at ending of period at Dec. 31, 2022 | 18,950 | $ 97,913 | (60,760) | (18,203) |
Balance at ending of period (in shares) at Dec. 31, 2022 | 12,215,849 | |||
Net income (loss) | 1,001 | 1,001 | ||
Stock-based compensation expense | 55 | $ 55 | ||
Other comprehensive income (loss) | 2,286 | 2,286 | ||
Balance at ending of period at Mar. 31, 2023 | $ 22,292 | $ 97,968 | $ (59,759) | $ (15,917) |
Balance at ending of period (in shares) at Mar. 31, 2023 | 12,215,849 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (FY) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash Flows from Operating Activities | |||||
Net income (loss) | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Gain upon consolidation of VSRM and sale of agency business | [1] | (10,052) | |||
Gain on sale of agency business | (8,910) | ||||
Depreciation and amortization | 102 | 417 | 423 | 437 | |
Amortization of bond premium and discount, net | 116 | 320 | 523 | 655 | |
Net realized investment (gains) losses | 69 | 1,505 | (2,878) | (8,126) | |
Change in fair value of equity securities | (280) | (403) | 2,020 | (228) | |
Loss on sale of fixed assets | 33 | ||||
Deferred income tax expense | (9,396) | 0 | 0 | ||
Stock-based compensation expenses | 38 | 211 | 218 | 706 | |
Equity loss (earnings) in Affiliate, net of tax | (76) | (368) | (824) | (839) | |
PPP Loan forgiveness | (2,745) | 0 | |||
Other | 60 | 17 | (262) | ||
(Increase) decrease in: | |||||
Premiums and agents' balances and other receivables | 442 | (594) | (811) | 311 | |
Reinsurance recoverables | (1,201) | (47,613) | (15,335) | 1,378 | |
Prepaid reinsurance premiums | (6,133) | (8,098) | (6,985) | (66) | |
Deferred policy acquisition costs | 2,143 | 1,977 | (24) | (337) | |
Other assets | (719) | (138) | 949 | 908 | |
Increase (decrease) in: | |||||
Unpaid losses and loss adjustment expenses | 1,853 | 26,454 | 27,815 | 4,024 | |
Unearned premiums | 199 | 2,618 | 9,045 | 4,721 | |
Reinsurance premiums payable | (1,976) | 11,926 | 5,318 | ||
Accounts payable and other liabilities | (234) | 1,348 | (1,367) | (895) | |
Net cash provided by (used in) operating activities | (8,527) | (40,474) | 5,355 | 2,982 | |
Cash Flows From Investing Activities | |||||
Purchases of investments | (68,116) | (318,227) | (226,794) | (391,588) | |
Proceeds from maturities and redemptions of investments | 6,609 | 20,324 | 25,834 | 23,403 | |
Proceeds from sales of investments | 62,958 | 324,091 | 198,408 | 360,926 | |
Proceeds from sale of agency business, net of $271 of cash disposed of | [1] | 32,759 | 4,000 | ||
Purchase of VSRM, net of $3,920 cash acquired | [1] | (1,947) | |||
Deconsolidation of SSU | [1] | (497) | |||
Dividends from Affiliate | 1,000 | ||||
Other purchases | (1,071) | (78) | |||
Net cash provided by (used in) investing activities | 1,451 | 56,503 | 1,377 | (7,337) | |
Cash Flows From Financing Activities | |||||
Proceeds received from issuance of shares of common stock | 5,000 | ||||
Repurchase of common stock | 10 | (12) | (36) | ||
Borrowings under lines of credit | 5,000 | 19,500 | 3,000 | 5,745 | |
Repayment of lines of credit | (19,500) | (8,000) | (625) | ||
Paydown of long-term debt | (2,917) | ||||
Net cash provided by (used in) financing activities | 5,000 | 2,093 | (5,012) | 5,084 | |
Net increase (decrease) in cash | (2,076) | 18,122 | 1,720 | 729 | |
Cash at beginning of period | 9,913 | 9,913 | 8,193 | 7,464 | |
Cash at end of period | 7,837 | 28,035 | 9,913 | 8,193 | |
Supplemental Disclosure of Cash Flow Information: | |||||
Interest paid | 699 | 2,979 | 2,883 | 2,586 | |
Income taxes paid (refunded), net | $ (12) | $ (11) | 163 | $ (82) | |
Increase in note receivable from sale of agency business | $ 6,000 | ||||
[1]See Note 2 ~ VSRM Transaction |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows (Unaudited) (FY) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Statement Of Cash Flows [Abstract] | |
Cash used | $ 271 |
Cash acquired | $ 3,920 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries, Conifer Insurance Company (“CIC”), White Pine Insurance Company (“WPIC”), Red Cedar Insurance Company (“RCIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and VSRM, Inc. (“VSRM”). CIC, WPIC, and RCIC are collectively referred to as the “Insurance Company Subsidiaries.” On a stand-alone basis, Conifer Holdings, Inc. is referred to as the “Parent Company.” VSRM owns a 50% non-controlling interest in Sycamore Specialty Underwriters, LLC (“SSU” or “Affiliate”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. The Company has applied the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting and therefore the consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the consolidated interim financial statements, have been included. These consolidated financial statements and the notes thereto should be read in conjunction with the Company's audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the year ended December 31, 2023. Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States of America (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments incurred loss methodology and the concept of Other-than-Temporary Impairment (or “OTTI”) with an expected credit loss methodology that is sometimes referred to as the Current Expected Credit Loss (CECL) methodology. The guidance applies to Conifer's reinsurance recoverables, premium receivable, and debt securities. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The adoption of ASC 326 did not have any impact on the Company's financial statements. Among other updates which management deems to have no material impact, ASC 326 made changes to the accounting for available-for-sale debt securities. At each quarter-end, for available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, 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 is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Recently Issued Accounting Guidance In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) | 1. Summary of Significant Accounting Policies Recent Developments COVID-19 (the “Pandemic”) continues to cause significant disruption to public health, the global economy, financial markets, and commercial, social and community activity in general. As there has been a significant reduction in reported cases and correspondingly a reduction in government restrictions, we see reduced risk to our business. We continue to monitor potential risks the Pandemic may present including a potential resurgence. Our exposure to the Pandemic is manifold. The majority of our employees continue to work remotely however strict “shelter-in-place” or “stay-at-home” orders have been lifted. A significant portion of our revenues are generated from the hospitality sector within the U.S. which remains under stress due to the threats of resurgence and resource shortages that resulted from the Pandemic. We have continued to provide customer service, process new and renewal business, handle claims and otherwise manage all operations even though the vast majority of the staff is working remotely. To date, we have not seen a major disruption in our business as a result of the Pandemic and currently do not expect to see a material negative impact to our financial position or results of operations as a result of the Pandemic. Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company (“CIC”), Red Cedar Insurance Company (“RCIC”), White Pine Insurance Company (“WPIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and, as of October 13, 2022, VSRM, Inc. (“VSRM”). VSRM has substantially no operations following the contribution to SSU as described in Note 2 ~ VSRM Transaction The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In applying these estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including uncertainties associated with the Pandemic. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as short-term investments in the consolidated balance sheets as they relate to the Company’s investment activities. Lease Accounting The Company accounts for leases under FASB Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which required the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value upon initial recognition, for all leases that extend beyond 12 months. For operating leases, the asset and liability are amortized over the lease term with expense recognized on a straight-line basis and all cash flows included in the operating section of the consolidated statement of cash flows. We do not have any financing leases. Our operating leases consist primarily of real estate utilized in the operation of our businesses with lease terms ranging from 5 to 10 years. Management has determined the appropriate discount rate to use in calculating the right-to-use asset and lease liability is 6.75%. The Company records a right-of-use asset and lease liabilities included in Other Assets and Other Liabilities in the Consolidated Balance Sheets. As of December 31, 2022, the Company had a right-of-use asset lease liabilities right-of-use asset lease liabilities Investment Securities Debt securities are classified as available-for-sale and reported at fair value. The Company determines the fair value using the market approach, which uses quoted prices or other relevant data based on market transactions involving identical or comparable assets. The Company purchases available-for-sale debt securities with the expectation that they will be held to maturity, however the Company may sell them if market conditions or credit-related risk warrant earlier sales. The Company does not have any securities classified as held-to-maturity or trading. The change in unrealized gain and loss on debt securities is recorded as a component of accumulated other comprehensive income (loss), net of the related deferred tax effect, until realized. The debt securities portfolio includes structured securities. The Company recognizes income from these securities using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Premiums and discounts on structured securities are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in interest income in the consolidated statements of operations. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis and included in earnings on the trade date. Equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income in the Consolidated Statements of Operations. Investment company limited partnerships are measured at their net asset value, which approximates fair value. Any changes in the net asset value are recognized in net income in the Consolidated Statements of Operations. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. We review these investments for impairment during each reporting period. These investments are a component of Other Assets in the Consolidated Balance Sheets. Other-than-Temporary Impairments The Company reviews its impaired securities for possible other-than-temporary impairment (“OTTI”) at each quarter-end. A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. The Company considers the following factors in performing its review: (i) the amount by which the security’s fair value is less than its cost, (ii) length of time the security has been impaired, (iii) whether management has the intent to sell the security, (iv) if it is more likely than not that management will be required to sell the security before recovery of its amortized cost basis, (v) whether the impairment is due to an issuer-specific event, credit issues or change in market interest rates, (vi) the security’s credit rating and any recent downgrades or (vii) stress testing of expected cash flows under different scenarios. If the Company cannot conclude that declines in fair value below amortized cost are considered temporary, an OTTI loss is recorded through the Consolidated Statements of Operations in the current period. For all other impaired securities, the Company will assess whether the net present value of the cash flows expected to be collected from the security is less than its amortized cost basis. Such a shortfall in cash flows is referred to as a “credit loss.” For any such security, the Company separates the impairment loss into: (i) the credit loss and (ii) the non-credit loss, which is the amount related to all other factors such as interest rate changes, fluctuations in exchange rates and market conditions. The credit loss charge is recorded to the current period statements of operations and the non-credit loss is recorded to accumulated other comprehensive income (loss), within shareholders’ equity, on an after-tax basis. A security’s cost basis is permanently reduced by the amount of a credit loss. Income is accreted over the remaining life of a security based on the interest rate necessary to discount the expected future cash flows to the new basis. If the security is non-income producing, any cash proceeds are applied as a reduction of principal when received. Recognition of Premium Revenues All of the property and casualty policies written by our insurance companies are considered short-duration contracts. These policy premiums are earned on a daily pro-rata basis, net of reinsurance, over the term of the policy, which are primarily twelve months in duration. The portion of premiums written that relate to the unexpired terms of policies in force are deferred and reported as unearned premium at the balance sheet date. Reinsurance Reinsurance premiums, commissions, losses and loss adjustment expenses (“LAE”) on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses and LAE paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverables on unpaid losses and LAE are estimated based upon assumptions consistent with those used in establishing the gross liabilities as they are applied to the underlying reinsured contracts. The Company records an allowance for uncollectible reinsurance recoverables based on an assessment of the reinsurer’s creditworthiness and collectability of the recorded amounts. Management believes an allowance for uncollectible recoverables from its reinsurers was not necessary for the periods presented. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of policy acquisition costs. In 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement. The LPT is a retroactive reinsurance contract. See Note 8 ~ Reinsurance Deferred Policy Acquisition Costs Costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business is deferred. These deferred costs consist of commissions paid to agents (net of ceding commissions), premium taxes, and underwriting costs, including compensation and payroll related benefits. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy term. To the extent that unearned premiums on existing policies are not adequate to cover the sum of expected losses and LAE, unamortized acquisition costs and policy maintenance costs, unamortized deferred policy acquisition costs are charged to expense to the extent required to eliminate the premium deficiency. If the premium deficiency is greater than the unamortized policy acquisition costs, a liability is recorded for any such deficiency. As of December 31, 2022, there was no premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency exists. Management performs this evaluation at each insurance product line level. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and LAE in the Consolidated Balance Sheets represents the Company’s estimate of the amount it expects to pay for the ultimate cost of all losses and LAE incurred that remain unpaid at the balance sheet date. The liability is recorded on an undiscounted basis, except for the liability for unpaid losses and LAE assumed related to any acquired companies which are initially recorded at fair value. The process of estimating the liability for unpaid losses and LAE is a complex process that requires a high degree of judgment. The liability for unpaid losses and LAE represents the accumulation of individual case estimates for reported losses and LAE, and actuarially determined estimates for incurred but not reported losses and LAE and includes a provision for estimated costs to settle all outstanding claims at the balance sheet date. The liability for unpaid losses and LAE is intended to include the ultimate net cost of all losses and LAE incurred but unpaid as of the balance sheet date. The liability is stated net of anticipated deductibles, salvage and subrogation, and gross of reinsurance ceded. The estimate of the unpaid losses and LAE liability is continually reviewed and updated. Although management believes the liability for losses and LAE is reasonable, the ultimate liability may be more or less than the current estimate. The estimation of ultimate liability for unpaid losses and LAE is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The Company utilizes various actuarially-accepted reserving methodologies in deriving the continuum of expected outcomes and ultimately determining its estimated liability amount. These methodologies utilize various inputs, including but not limited to written and earned premiums, paid and reported losses and LAE, expected initial loss and LAE ratio, which is the ratio of incurred losses and LAE to earned premiums, and expected claim reporting and payout patterns (including company-specific and industry data). The liability for unpaid loss and LAE does not represent an exact measurement of liability, but is an estimate that is not directly or precisely quantifiable, particularly on a prospective basis, and is subject to a significant degree of variability over time. In addition, the establishment of the liability for unpaid losses and LAE makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in the Company’s historical experience or which cannot yet be quantified. As a result, an integral component of estimating the liability for unpaid losses and LAE is the use of informed subjective estimates and judgments about the ultimate exposure to unpaid losses and LAE. The effects of changes in the estimated liability are included in the results of operations in the period in which the estimates are revised. The Company allocates the applicable portion of the unpaid losses and LAE to amounts recoverable from reinsurers under reinsurance contracts and reports those amounts separately as assets on the consolidated balance sheets. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification (“ASC”) 740, Income Taxes, As of December 31, 2022 and 2021, the Company did not have any unrecognized tax benefits and had no accrued interest or penalties related to uncertain tax positions. Other Income Other income consists primarily of fees charged to policyholders by the Company for services outside of the premium charge, such as installment billings or policy issuance costs. Commission income is also received by the Company’s insurance agencies for writing policies for third party insurance companies. The Company recognizes commission income on the later of the effective date of the policy, the date when the premium can be reasonably established, or the date when substantially all services related to the insurance placement have been rendered. Operating Expenses Operating expenses consist primarily of other underwriting, compensation and benefits, information technology, facility and other administrative expenses. Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) Risks and Uncertainties The Company is exposed to interest rate risks as it maintains a significant amount of its investment portfolio in debt securities. As a result of changes in interest rates during 2022, the Company reported a $16.0 million net unrealized loss that was reflected in other comprehensive income. As of December 31, 2022, total net unrealized losses in the debt securities was $18.2 million. Management believes it will not need to sell debt securities at significant losses as it has the ability and intention to hold them until their values improve. Management has noted the media has reported a number of recent bank failures. The Company does not have any deposits or investments in any of these banks. Management does not expect any significant impact as a result of these events. |
Investments (Q1)
Investments (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | ||
Investments | 2. Investments Results for reporting periods occurring before January 1, 2023 continue to be reported in accordance with previously applicable U.S. GAAP and note presented under ASC 326, which was adopted by the Company on January 1, 2023. The Company analyzed its investment portfolio in accordance with its credit loss review policy and determined it did not need to record a credit loss for the three months ended March 31, 2023 and 2022. The Company holds only investment grade securities from high credit quality issuers. The gross unrealized losses of $14.6 million as of March 31, 2023, from the Company's available-for-sale securities are due to market conditions and interest rate changes. The cost or amortized cost, gross unrealized gains or losses, and estimated fair value of the investments in securities classified as available for sale at March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,220 $— $ (249) $ 6,971 State and local government 26,063 1 (3,866) 22,198 Corporate debt 35,070 — (4,139) 30,931 Asset-backed securities 21,150 — (1,045) 20,105 March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Mortgage-backed securities 28,524 — (4,739) 23,785 Commercial mortgage-backed securities 3,413 — (125) 3,288 Collateralized mortgage obligations 3,834 — (479) 3,355 Total debt securities available for sale $125,274 $ 1 $(14,642) $110,633 December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): March 31, 2023 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 2 $ 900 $ (6) 10 $ 6,071 $ (243) 12 $ 6,971 $ (249) State and local government 13 3,229 (80) 110 18,267 (3,786) 123 21,496 (3,866) Corporate debt 4 1,509 (41) 64 29,422 (4,098) 68 30,931 (4,139) Asset-backed securities 3 1,085 (28) 22 19,020 (1,017) 25 20,105 (1,045) Mortgage-backed securities 33 279 (12) 35 23,499 (4,727) 68 23,778 (4,739) Commercial mortgage-backed securities 1 209 (20) 3 3,056 (105) 4 3,265 (125) Collateralized mortgage obligations 11 166 (6) 23 3,212 (473) 34 3,378 (479) Total debt securities available for sale 67 $7,377 $(193) 267 $102,547 $(14,449) 334 $109,924 $(14,642) December 31, 2022 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage-backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 $38,757 $(4,857) 133 $71,142 $(12,062) 338 $109,899 $(16,919) The Company’s sources of net investment income and losses are as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities $ 853 $ 582 Equity securities 11 28 Cash, cash equivalents and short-term investments 503 1 Total investment income 1,367 611 Investment expenses (60) (104) Net investment income $1,307 $ 507 The following table summarizes the gross realized gains and losses from sales, calls and maturities of available-for-sale debt and equity securities (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities: Gross realized gains $— $ — Gross realized losses — — Total debt securities — — Equity securities: Gross realized gains $— 19 Gross realized losses — (88) Total equity securities — (69) Total net realized investment gains (losses) $— $(69) Proceeds from available-for-sale debt securities were $23.6 million and $6.7 million for the three months ended March 31, 2023 and 2022, respectively. There were no gross realized gains or losses from the sale of available-for-sale debt securities for the three months ended March 31, 2023 and 2022. As of March 31, 2023 and 2022, there were $0 and $750,000 of payables from securities purchased, respectively. There were $0 and $1.3 million of receivables from securities sold as of March 31, 2023, and 2022, respectively. The Company's gross unrealized gains related to its equity investments were $523,000 and $0 as of March 31, 2023 and December 31, 2022, respectively. The Company’s gross unrealized losses related to its equity investments were $467,000 and $638,000 as of March 31, 2023 and December 31, 2022, respectively. The Company also carries other equity investments that do not have a readily determinable fair value at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There were no impairments or observable changes in price recorded during 2023 related to the Company's equity securities without readily determinable fair value. These investments are included in Other Assets in the Consolidated Balance Sheets and amounted to $1.4 million as of March 31, 2023 and $1.8 million as of December 31, 2022. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at March 31, 2023. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,668 $ 4,592 Due after one year through five years 28,614 26,543 Due after five years through ten years 23,810 20,267 Due after ten years 11,261 8,698 Securities with contractual maturities 68,353 60,100 Asset-backed securities 21,150 20,105 Mortgage-backed securities 28,524 23,785 Commercial mortgage-backed securities 3,413 3,288 Collateralized mortgage obligations 3,834 3,355 Total debt securities $125,274 $110,633 At March 31, 2023 and December 31, 2022, the Insurance Company Subsidiaries had $8.1 million and $8.0 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At March 31, 2023 and December 31, 2022, the Company had $98.1 million and $95.7 million, respectively, held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. | 4. Investments The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2022 and 2021 were as follows (dollars in thousands): December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 December 31, 2021 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 20,723 $ 74 $ (77) $ 20,720 State and local government 30,063 555 (189) 30,429 Corporate debt 30,808 88 (550) 30,346 Asset-backed securities 28,652 10 (224) 28,438 Mortgage-backed securities 33,178 105 (762) 32,521 Commercial mortgage-backed securities 1,659 31 — 1,690 Collateralized mortgage obligations 5,649 35 (45) 5,639 Total debt securities available for sale $150,732 $898 $(1,847) $149,783 The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2022 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage -backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 38,757 (4,857) 133 71,142 (12,062) 338 109,899 (16,919) December 31, 2021 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 6 $10,323 $ (47) 1 $4,728 $(30) 7 $ 15,051 $ (77) State and local government 41 8,875 (172) 4 446 (17) 45 9,321 (189) Corporate debt 41 22,748 (505) 1 705 (45) 42 23,453 (550) Asset-backed securities 24 24,305 (219) 2 1,893 (5) 26 26,198 (224) Mortgage-backed securities 12 27,034 (762) — — — 12 27,034 (762) Commercial mortgage -backed securities 0 — 0 — — — 0 — 0 Collateralized mortgage obligations 10 2,638 (45) 2 29 — 12 2,667 (45) Total debt securities available for sale 134 $95,923 $(1,750) 10 $7,801 $(97) 144 $103,724 $(1,847) The Company analyzed its investment portfolio in accordance with its OTTI review procedures and determined the Company did not need to record a credit-related OTTI loss, nor recognize a non credit-related OTTI loss in other comprehensive income for the years ended December 31, 2022, 2021, and 2020. The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities $2,517 $2,217 $3,213 Equity securities 52 194 220 Cash, cash equivalents, and short-term investments 776 2 138 Total investment income 3,345 2,413 3,571 Investment expenses (302) (445) (415) Net investment income $3,043 $1,968 $3,156 The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities: Gross realized gains $ 6 $ 63 $ 4,646 Gross realized losses (155) (6) (8) Total debt securities (149) 57 4,638 Equity securities: Gross realized gains 375 4,605 4,854 Gross realized losses (1,731) (1,784) (1,366) Total equity securities (1,356) 2,821 3,488 Total net realized investment gains $(1,505) $ 2,878 $ 8,126 Proceeds from the sales of available-for-sale securities were $32.0 million, $31.7 million and $101.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. The gross realized gains from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $5,000, $27,000, and $4.6 million, respectively. The gross realized losses from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $155,000, $6,000, and $0, respectively. As of December 31, 2022, 2021, and 2020 there were $0, $1.0 million, and $1.7 million of payables from securities purchased, respectively. As of December 31, 2022, 2021, and 2020 there were $650,000, $523,000, and $809,000 of receivables from securities sold, respectively. The Company's gross unrealized losses related to its equity investments were $638,000, $1.0 million, and $0 as of December 31, 2022, 2021, and 2020, respectively. The Company had no gross unrealized gains related to its equity investments as of December 31, 2022 and 2021, respectively. The Company's gross unrealized gains related to its equity investments were $1.0 million as of December 31, 2020. The Company also carries other equity investments that do not have a readily determinable fair value and are recorded at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2022 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets. The value of these investments as of December 31, 2022 were $1.8 million. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2022. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,876 $ 4,770 Due after one year through five years 28,396 25,963 Due after five years through ten years 23,974 19,782 Amortized Cost Estimated Fair Value Due after ten years 11,421 8,358 Securities with contractual maturities 68,667 58,873 Asset-backed securities 21,742 20,496 Mortgage-backed securities 29,194 24,037 Commercial mortgage-backed securities 3,414 3,228 Collateralized mortgage obligations 4,102 3,567 Total debt securities $127,119 $110,201 At December 31, 2022 and 2021, the Insurance Companies Subsidiaries had an aggregate of $8.0 million and $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2022 and 2021, the Company had $95.7 million and $76.1 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. |
Fair Value Measurements (Q1)
Fair Value Measurements (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | 3. Fair Value Measurements The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, and are disclosed at fair value in this note. All fair values disclosed in this note are determined on a recurring basis other than the debt which is a non-recurring fair value measure. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows: Level 1 - Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the Company’s best assumption of how market participants would price the assets or liabilities. Net Asset Value (NAV) - The fair values of investment company limited partnership investments and mutual funds are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 6,971 $ — $ 6,971 $ — State and local government 22,198 — 22,198 — Corporate debt 30,931 — 30,931 — Asset-backed securities 20,105 — 20,105 — Mortgage-backed securities 23,785 — 23,785 — Commercial mortgage-backed securities 3,288 — 3,288 — Collateralized mortgage obligations 3,355 — 3,355 — Total debt securities 110,633 — 110,633 — Equity Securities 965 208 757 — Short-term investments 28,055 28,055 — — Total marketable investments measured at fair value $139,653 $28,263 $ 111,390 $ — Investments measured at NAV: Investment in limited partnership 1,460 Total assets measured at fair value $ 141,113 Liabilities: Senior Unsecured Notes* $ 22,567 $ — $ 22,567 $ — Subordinated Notes* 11,685 — — 11,685 Total Liabilities (non-recurring fair value measure) $ 34,252 $ — $ 22,567 $11,685 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $— State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $— December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes* $ 22,430 $— $22,430 $ — Subordinated Notes* 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure) $ 33,730 $— $22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. The fair value measurements that were based on Level 1 inputs comprise 20% and 18% of the fair value of the total marketable investments measured at fair value as of March 31, 2023 and December 31, 2022, respectively. Level 2 investments include debt securities and equity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. The fair value of securities included in the Level 2 category were based on the market values obtained from a third-party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third-party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 80% and 82% of the fair value of the total marketable investments measured at fair value as of March 31, 2023 and December 31, 2022, respectively. The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, such as (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants. As of March 31, 2023 and December 31, 2022, the fair value of the subordinated debt reported at amortized cost was considered a Level 3 liability in the fair value hierarchy and is entirely comprised of the Company's Subordinated Notes. In determining the fair value of the Subordinated Notes outstanding at March 31, 2023 and December 31, 2021, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of the restated and amended agreement which was repriced at that time) were entered into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then entered back into the model along with the March 31, 2023 and December 31, 2022 U.S. Treasury rates, respectively. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. The Company's policy on recognizing transfers between hierarchies is applied at the end of each reporting period. There were no transfers in or out of Level 3 for the three months ended March 31, 2023, and 2022, respectively. | 5. Fair Value Measurements The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, and are disclosed at fair value in this note. All fair values disclosed in this note are determined on a recurring basis other than the debt which is a non-recurring fair value measure. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows: Level 1 —Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 —Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the Company’s best assumption of how market participants would price the assets or liabilities. Net Asset Value (NAV) —The fair values of investment company limited partnership investments and mutual funds are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $ — State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity Securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $ — Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes * $ 22,430 $ — $ 22,430 $ — Subordinated Notes * 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure $ 33,730 $ — $ 22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 20,720 $ — $ 20,720 $— State and local government 30,429 — 30,429 — Corporate debt 30,346 — 30,346 — Asset-backed securities 28,438 — 28,438 — Mortgage-backed securities 32,521 — 32,521 — Commercial mortgage-backed securities 1,690 — 1,690 — Collateralized mortgage obligations 5,639 — 5,639 — Total debt securities 149,783 — 149,783 — Equity Securities 9,437 9,154 283 — Short-term investments 23,013 23,013 — — Total marketable investments measured at fair value $182,233 $32,167 $150,066 $— Investments measured at NAV: Investment in limited partnership 494 Total assets measured at fair value $182,727 December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Liabilities: Senior Unsecured Notes * $24,118 $— $24,118 $ — Subordinated Notes * 11,704 — — 11,704 Total Liabilities measured at fair value $35,822 $— $24,118 $11,704 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. The fair value measurements that were based on Level 1 inputs comprise 18% of the fair value of the total marketable investments measured at fair value as of December 31, 2022. Level 2 investments include debt securities and equity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. The fair value of securities included in the Level 2 category were based on the market values obtained from a third party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 82% of the fair value of the total marketable investments measured at fair value as of December 31, 2022. The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, such as (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants. As of December 31, 2022 and 2021, the fair value of the subordinated debt reported at amortized cost was considered a Level 3 liability in the fair value hierarchy and is entirely comprised of the Company's Subordinated Notes. In determining the fair value of the Subordinated Notes outstanding at December 31, 2022 and 2021, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of the restated and amended agreement which was repriced at that time) were entered into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then entered back into the model along with the December 31, 2022 and 2021, U.S. Treasury rates, respectively. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Deferred Policy Acquisition Costs | 4. Deferred Policy Acquisition Costs The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the three months ended March 31, 2023 and 2022. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $10,290 $12,267 Deferred policy acquisition costs 2,757 3,321 Amortization of policy acquisition costs (4,721) (5,464) Net change (1,964) (2,143) Balance at end of period $ 8,326 $10,124 | 6. Deferred Policy Acquisition Costs The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the years December 31, 2022, 2021, and 2020. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 12,267 $ 12,243 $ 11,906 Deferred policy acquisition costs 20,202 28,475 26,442 Amortization of policy acquisition costs (22,179) (28,451) (26,105) Net change (1,977) 24 337 Balance at end of period $ 10,290 $ 12,267 $ 12,243 |
Unpaid Losses and Loss Adjustme
Unpaid Losses and Loss Adjustment Expenses (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||
Unpaid Losses and Loss Adjustment Expenses | 5. Unpaid Losses and Loss Adjustment Expenses The Company establishes reserves for unpaid losses and loss adjustment expenses (“LAE”) which represent the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e., incurred but not yet reported losses; or “IBNR”) and LAE incurred that remain unpaid at the balance sheet date. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Reserves are estimates of unpaid portions of losses that have occurred, including IBNR losses; therefore, the establishment of appropriate reserves is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in reserve estimates, which may be material, are reported in the results of operations in the period such changes are determined to be needed and recorded. Management believes that the reserve for losses and LAE is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the consolidated financial statements based on available facts and in accordance with applicable laws and regulations. The table below provides the changes in the reserves for losses and LAE, net of reinsurance recoverables, for the periods indicated as follows (dollars in thousands): Three months ended March 31, 2023 2022 Gross reserves - beginning of period $165,539 $139,085 Less: reinsurance recoverables on unpaid losses (82,651) (40,344) Net reserves - beginning of period 82,888 98,741 Add: incurred losses and LAE, net of reinsurance: Current period 14,926 12,497 Prior period (1,213) 5,521 Total net incurred losses and LAE 13,713 18,018 Deduct: loss and LAE payments, net of reinsurance: Current period 1,987 2,512 Prior period 10,353 13,914 Total net loss and LAE payments 12,340 16,426 Net reserves - end of period 84,261 100,333 Plus: reinsurance recoverables on unpaid losses 61,101 40,605 Gross reserves - end of period $145,362 $140,938 Net losses and LAE were $13.7 million during the first quarter of 2023. The Company experienced favorable development of $1.2 million during the first quarter of 2023, of which $817,000 was related to the Company's commercial lines of business, and $396,000 was related to the personal lines of business. The majority of the favorable development occurred in the 2022 and 2021 accident years. For accident year 2022, the redundancy was due in part to less-than-expected commercial property loss emergence during the first quarter of 2023. For accident year 2021, the claim frequency of the quick service restaurant program was less than expected resulting in a reduction in the estimated ultimate loss. There was $1.8 million of adverse development relating to 2019 and prior accident years that was covered under the Loss Portfolio Transfer (“LPT”), resulting in no net development. As of March 31, 2023, the Company was $2.4 million into the $20.0 million adverse development cover provided by the LPT. Net losses and LAE were $18.0 million for the three months ended March 31, 2022. Adverse development contributed $5.5 million to the total incurred losses in the first quarter of 2022, of which $1.5 million was related to 2017 and prior accident years, $1.3 million was related to the 2018 accident year, $1.3 million was related to the 2019 accident year, and $1.5 million was related to the 2020 accident year. In the first quarter of 2022, $5.7 million of the adverse development came from the commercial lines of business, mostly from liability lines, while our personal lines of business had $219,000 favorable development. | 7. Unpaid Losses and Loss Adjustment Expenses The Company establishes reserves for unpaid losses and LAE which represent the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e., incurred but not yet reported losses, or “IBNR”) and LAE incurred as well as a provision for estimated future costs related to claim settlement for all claims that remain unpaid at the balance sheet date. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Reserves are estimates of unpaid portions of losses that have occurred, including IBNR losses, therefore the establishment of appropriate reserves, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in the results of operations in the period such changes are determined to be needed and recorded. Management believes that the reserve for losses and LAE, any related estimates of reinsurance recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the consolidated financial statements based on available facts and in accordance with applicable laws and regulations. The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): December 31, 2022 2021 2020 Gross reserves - beginning of period $ 139,085 $ 111,270 $107,246 Less: reinsurance recoverables on unpaid losses 40,344 24,218 22,579 Net reserves - beginning of period 98,741 87,052 84,667 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 57,156 50,429 40,634 Prior period 24,284 19,432 15,594 Total net incurred losses and loss adjustment expenses 81,440 69,861 56,228 December 31, 2022 2021 2020 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 20,894 18,984 13,599 Prior period 76,399 39,188 40,244 Total net loss and loss adjustment expense payments 97,293 58,172 53,843 Net reserves - end of period 82,888 98,741 87,052 Plus: reinsurance recoverables on unpaid losses 82,651 40,344 24,218 Gross reserves - end of period $165,539 $139,085 $111,270 There was $24.3 million, $19.4 million, and $15.6 million of adverse development on prior accident year reserves in 2022, 2021 and 2020, respectively. There were no significant changes in the key methods utilized in the analysis and calculations of the Company’s reserves during 2022, 2021 or 2020. Of the $24.3 million of adverse development in 2022, $1.8 million was related to the 2021 accident year, $4.0 million was related to the 2020 accident year, $9.6 million was related to the 2019 accident year, $5.2 million was related to the 2018 accident year, and $3.7 million was related to 2017 and prior accident years. The adverse development was mostly related to the Company's commercial liability lines and was driven by multiple factors including significant social inflation generating higher severity than historical experience, and longer tail exposure than anticipated, particularly in certain jurisdictions. In 2021, the adverse development consisted of $18.5 million from commercial lines and $957,000 from personal lines. Of the $18.5 million of adverse development in commercial lines, the Company experienced $12.0 million and $6.5 million of adverse development in its hospitality and small business lines of business, respectively. The Company experienced $2.0 million of catastrophe losses, net of reinsurance recoverables, during the first quarter of 2021 from winter Storm Uri. In 2020, the adverse development consisted of $15.2 million from commercial lines and $352,000 from personal lines. Of the $15.2 million of adverse development in commercial lines, the Company experienced $12.0 million and $3.2 million of adverse development in its hospitality and small business lines of business, respectively. The $352,000 of adverse development in personal lines mostly was related to wind-exposed business. Loss Development Tables The following tables represent cumulative incurred loss and allocated loss adjustment expenses (“ALAE”), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2013 to 2022, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2022, by reportable segment and accident year (dollars in thousands). The tables do not include reinsurance recoverables from the LPT. Commercial Lines Accident Year Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 10,018 9,435 9,893 10,237 11,252 11,218 11,624 11,804 11,867 12,046 — 613 2014 19,709 19,907 22,711 26,367 28,145 28,766 29,045 29,175 29,011 — 1,754 2015 22,442 26,633 31,861 34,478 36,372 37,795 38,824 39,093 26 2,361 2016 32,396 34,935 40,440 44,355 46,089 46,993 48,677 201 3,557 2017 44,251 44,495 49,749 51,883 55,589 56,649 671 5,832 2018 42,624 42,432 49,741 55,261 60,102 1,637 6,124 2019 41,286 42,129 46,329 55,263 4,529 6,320 2020 33,867 35,328 39,193 3,787 3,830 2021 40,388 42,266 8,744 2,861 2022 41,708 16,067 1,965 Total $424,008 $35,662 F-48 Commercial lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 3,979 6,211 7,643 8,622 10,147 10,650 11,137 11,620 11,702 11,935 2014 8,715 13,977 17,458 22,446 25,609 27,544 28,389 28,648 28,608 2015 10,470 17,817 22,549 30,475 34,497 35,833 37,563 38,685 2016 10,255 19,135 27,785 37,967 41,945 43,644 46,957 2017 12,448 23,020 34,205 42,308 47,148 52,800 2018 10,375 19,799 31,633 41,577 50,508 2019 10,078 20,462 28,958 39,893 2020 10,217 17,332 24,225 2021 12,870 21,313 2022 12,839 Total $327,763 Net Unpaid losses and ALAE, years 2013 through 2022 $ 96,245 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid Losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 70,509 * Presented as unaudited required supplementary information. Personal Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 18,034 17,996 18,925 19,138 19,167 19,202 19,222 19,226 19,227 19,365 — 5,208 2014 17,951 17,471 17,735 17,880 17,929 18,082 18,095 18,097 18,052 — 3,737 2015 10,877 13,445 14,721 15,285 15,364 15,427 15,427 15,448 — 2,152 2016 11,619 13,418 14,949 15,550 15,655 15,634 15,679 — 1,814 2017 14,058 13,550 14,493 14,793 14,911 14,957 — 2,917 2018 5,893 6,378 6,283 6,382 6,298 — 803 2019 3,099 2,712 2,898 2,862 — 342 2020 2,339 2,590 2,636 — 366 2021 4,409 4,332 116 580 2022 9,404 1,427 652 Total $109,033 $1,543 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 9,955 15,883 18,052 18,600 19,014 19,174 19,214 19,222 19,227 19,365 2014 12,819 16,515 17,260 17,746 17,855 18,047 18,068 18,070 18,025 2015 7,771 11,873 13,844 15,159 15,250 15,290 15,416 15,444 2016 7,119 11,238 14,442 15,110 15,351 15,452 15,679 2017 8,320 12,944 14,004 14,526 14,866 14,957 2018 4,296 5,618 6,100 6,242 6,244 2019 2,119 2,604 2,692 2,850 2020 1,307 2,455 2,605 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2021 3,022 3,980 2022 5,397 Total $104,546 Net Unpaid losses and ALAE, years 2013 through 2022 $ 4,487 Unpaid losses and ALAE, prior to 2013 * — Unpaid losses and ALAE, net of reinsurance $ 4,487 * Presented as unaudited required supplementary information. Total Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 28,052 27,431 28,817 29,375 30,419 30,420 30,846 31,030 31,094 31,411 — 5,821 2014 37,660 37,378 40,446 44,247 46,074 46,848 47,140 47,272 47,063 — 5,491 2015 33,319 40,078 46,581 49,763 51,736 53,222 54,251 54,541 26 4,513 2016 44,015 48,353 55,389 59,905 61,744 62,627 64,356 201 5,371 2017 58,309 58,045 64,242 66,676 70,500 71,606 671 8,749 2018 48,517 48,810 56,024 61,643 66,400 1,637 6,927 2019 44,385 44,841 49,227 58,125 4,529 6,662 2020 36,206 37,918 41,829 3,787 4,196 2021 44,797 46,598 8,860 3,441 2022 51,112 17,494 2,617 Total 533,041 37,205 Total lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 13,934 22,094 25,695 27,223 29,162 29,824 30,351 30,842 30,929 31,300 2014 21,534 30,492 34,718 40,192 43,464 45,591 46,457 46,718 46,633 2015 18,241 29,690 36,393 45,634 49,747 51,123 52,979 54,129 2016 17,374 30,373 42,227 53,077 57,296 59,096 62,636 2017 20,768 35,964 48,209 56,834 62,014 67,757 2018 14,671 25,417 37,733 47,819 56,752 2019 12,197 23,066 31,650 42,743 2020 11,524 19,787 26,830 2021 15,892 25,293 2022 18,236 Total $432,309 Net Unpaid losses and ALAE, years 2013 through 2022 $100,732 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 74,996 * Presented as unaudited required supplementary information. The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2022, by reportable segment (dollars in thousands). December 31, 2022 Net unpaid losses claims and ALAE Commercial Lines $ 70,509 Personal Lines 4,487 Total unpaid losses and LAE, net of reinsurance 74,996 Reinsurance recoverable on losses and LAE Commercial Lines 81,301 Personal Lines 1,350 Total reinsurance recoverable on unpaid losses and LAE 82,651 ULAE expense 7,892 Total gross unpaid losses and LAE $165,539 Loss Duration Disclosure (unaudited) The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment. Average annual percentage payout of incurred losses by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10+ Commercial Lines 34.4% 23.0% 17.7% 10.0% 8.0% 3.6% 1.8% 0.8% 0.4% 0.3% Personal Lines 69.4% 16.6% 10.1% 2.6% 0.9% 0.2% 0.1% 0.1% 0.0% 0.0% Total Lines 35.7% 22.8% 17.5% 9.7% 7.7% 3.5% 1.7% 0.8% 0.4% 0.2% |
Reinsurance (Q1)
Reinsurance (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Reinsurance | 6. Reinsurance In the normal course of business, the Company participates in reinsurance agreements in order to limit losses that may arise from catastrophes or other individually severe events. The Company ceded primarily all specific commercial liability risks in excess of $400,000 in 2023, and $340,000 in 2022. The Company ceded specific commercial property risks in excess of $400,000 in 2023, and $300,000 in 2022. The Company ceded homeowners specific risks in excess of $300,000 in both 2023 and 2022. A “treaty” is a reinsurance agreement in which coverage is provided for a class of risks and does not require policy by policy underwriting of the reinsurer. “Facultative” reinsurance is where a reinsurer negotiates an individual reinsurance agreement for every policy it will reinsure on a policy by policy basis. A loss is covered under a reinsurance contract if the loss occurs within the effective dates of the agreement notwithstanding when the loss is reported. Reinsurance does not discharge the direct insurer from liability to its policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. To date, the Company has not experienced any significant difficulties in collecting reinsurance recoverables. The Company assumes written premiums under a few fronting arrangements. The fronting arrangements are with unaffiliated insurers who write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s current rating, where the policies are written in a state where the Company is not licensed or for other strategic reasons. On November 1, 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement with Fleming Reinsurance Ltd (“Fleming Re”). Under the agreement, Fleming Re will cover an aggregate limit of $66.3 million of paid losses on $40.8 million of stated net reserves as of June 30, 2022, relating to accident years 2019 and prior. This covers substantially all of the commercial liability lines underwritten by the Company. Within the aggregate limit, there is a $5.5 million loss corridor in which the Company retains losses in excess of $40.8 million. Fleming Re is then responsible to cover paid losses in excess of $46.3 million up to $66.3 million. Accordingly, there is $20.0 million of adverse development cover for accident years 2019 and prior. Under the agreement, Fleming Re was compensated with $40.8 million for stated net reserves as of June 30, 2022, plus a one-time risk fee of $5.4 million. Recoverables due to the Company under this agreement are recorded as reinsurance recoverables. The agreement is between CIC and WPIC and Fleming Re. As of March 31, 2023, the Company has recorded losses through the $5.5 million corridor and $2.4 million into the $20.0 million layer. As of December 31, 2022, the Company recorded losses through the $5.5 million corridor and $644,000 into the $20.0 million layer. As of March 31, 2023, the Consolidated Balance Sheet included $3.0 million of reinsurance recoverables on paid losses related to the LPT, and $22.0 million of reinsurance recoverables on unpaid losses related to the LPT. As of December 31, 2022, the Consolidated Balance Sheet included $3.8 million of reinsurance recoverables on paid losses related to the LPT, and $25.9 million of reinsurance recoverables on unpaid losses related to the LPT. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands): Three Months Ended March 31, 2023 2022 Written premiums: Direct $ 24,341 $ 24,796 Assumed 11,873 8,168 Ceded (17,872) (14,943) Net written premiums $ 18,342 $ 18,021 Earned premiums: Direct $ 23,315 $ 24,123 Assumed 10,979 8,641 Ceded (12,342) (8,809) Net earned premiums $ 21,952 $ 23,955 Losses and LAE: Direct $ 1,969 $ 13,066 Assumed 1,497 7,408 Ceded 10,247 (2,456) Net Losses and LAE $ 13,713 $ 18,018 | 8. Reinsurance In the normal course of business, the Company participates in reinsurance agreements in order to limit losses that may arise from catastrophes or other individually severe events. The Company primarily ceded all specific loss commercial liability risks in excess of $340,000 in 2022, and $400,000 in 2021 and 2020. The Company ceded specific loss commercial property risks in excess of $300,000 in 2022 and $200,000 in 2021. The Company ceded 40% of specific loss commercial property risks in excess of $400,000 and 60% in excess of $300,000 in 2020. The Company ceded homeowners specific risks in excess of $300,000 in 2022, 2021, and 2020. A “treaty” is a reinsurance agreement in which coverage is provided for a class of risks and does not require policy by policy underwriting of the reinsurer. “Facultative” reinsurance is where a reinsurer negotiates an individual reinsurance agreement for every policy it will reinsure on a policy-by-policy basis. A loss is covered under a reinsurance contract if the loss occurs within the effective dates of the agreement notwithstanding when the loss is reported. The Company entered into new specific loss reinsurance treaties on December 31, 2021 and January 1, 2022 which included a 40% ceding commission. The reinsurance premiums related to these treaties increased by the same amount as the ceding commission. Reinsurance does not discharge the Company, as the direct insurer, from liability to its policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. To date, the Company has not experienced any significant difficulties in collecting reinsurance recoverables. The Company's current reinsurance structure includes the following primary categories: Casualty Clash • Clash coverage is a type of reinsurance that provides additional coverage in the event that one casualty loss event results in two or more claims and recovery under the reinsurance treaties may otherwise be limited due to the amount, type or number of claims. Clash reinsurance further protects the balance sheet as it reduces the potential maximum loss on either a single risk or a large number of risks. • Effective January 1, 2022 through December 31, 2022, the company was party to a workers’ compensation and casualty clash reinsurance treaty with a limit of $29.0 million in excess of $1.0 million. • Effective January 1, 2019 through December 31, 2021, the Company was party to a workers' compensation and casualty clash reinsurance treaty with a limit of $19.0 million in excess of a $1.0 million retention. Effective January 1, 2021 through December 31, 2021, the Company ceded 87.0% of its casualty clash risks with a limit of $10.0 million in excess of a $20.0 million retention. Facultative • The Company was party to a facultative reinsurance agreement with a large reinsurer for commercial auto physical damage risks primarily in excess of $400,000. • The Company was party to a facultative reinsurance agreement with a large reinsurer for property risks with total insured values above the other reinsurance treaty limits. Liability • Effective January 1, 2019 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for commercial liability coverage with a limit of $600,000 in excess of $400,000. Property • Effective January 1, 2020 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for personal property coverage with a limit of $1.7 million in excess of $300,000, for homeowners' and dwelling fire business. • Effective January 1, 2022 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.7 million in excess of $300,000. • Effective January 1, 2021 through December 31, 2021, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.8 million in excess of $200,000. • Effective January 1, 2020 through December 31, 2020, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.7 million in excess of $300,000. • At December 31, 2022, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminates on June 1, 2023. • At December 31, 2021, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminates on June 1, 2022. • At December 31, 2020, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminated on June 1, 2021. Multiple Line • Effective January 1, 2019 through December 31, 2021, the Company was party to a multi-line excess of loss treaty that covers commercial property and casualty losses up to $600,000 in excess of a $400,000 retention. Quota Share • The Company cedes 90% to 100% of its commercial umbrella coverages under quota share treaties. Under a quota share agreement, the reinsurer pays a percentage of all losses the insurer sustains in return for a similar percent of the premiums written on that risk. A ceding commission is paid by the reinsurer to the insurer to cover acquisition and operating expenses. Loss Portfolio Transfe r • On November 1, 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement with Fleming Reinsurance Ltd (“Fleming Re”). Under the agreement, Fleming Re will cover an aggregate limit of $66.3 million of paid losses on $40.8 million of stated net reserves as of June 30, 2022, relating to accident years 2019 and prior. This covers substantially all of the commercial liability lines underwritten by the Company. Within the aggregate limit, there is a $5.5 million loss corridor in which the Company retains losses in excess of $40.8 million. Fleming Re is then responsible to cover paid losses in excess of $46.3 million up to $66.3 million. Accordingly, there is $20.0 million of adverse development cover for accident years 2019 and prior. Under the agreement, Fleming Re was compensated with $40.8 million for stated net reserves as of June 30, 2022, plus a one-time risk fee of $5.4 million. Recoverables due to the Company under this agreement are recorded as reinsurance recoverables. The agreement is between CIC and WPIC and Fleming Re. As of December 31, 2022, the Company has recorded losses through the $5.5 million corridor and $644,000 into the $20.0 million layer. As of December 31, 2022, the Consolidated Balance Sheet included $3.8 million of reinsurance recoverables on paid losses related to the LPT, and $25.9 million of reinsurance recoverables on unpaid losses related to the LPT. Equipment Breakdown, Employment Practice Liability, and Data Compromise and Identity Recovery • The Company ceded 100% of a small number of equipment breakdown, employment practices liability, and data compromise coverages that are occasionally bundled with other products under a quota share agreement with a reinsurer. The Company assumes written premiums under a few fronting arrangements. The fronting arrangements are with unaffiliated insurers who write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s rating, or where the policies are written in a state where the Company is not licensed or for other strategic reasons. The Company assumed $42.2 million, $34.3 million, and $28.9 million of written premiums under the insurance fronting arrangements for the years ended December 31, 2022, 2021 and 2020, respectively. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). In 2022, ceded written and earned premium amounts included $1.6 million of reinsurance reinstatement costs relating to Hurricane Ian. In 2021, ceded written and earned amounts included $340,000 of reinsurance reinstatement costs relating to Winter Storm Uri. In 2021 and 2020, the ceded written and earned premium amounts include $86,000 and $195,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2022 2021 2020 Written premiums: Direct $ 95,832 $ 97,801 $ 82,430 Assumed 42,187 34,294 28,905 Ceded (46,787) (30,666) (18,395) Net written premiums $ 91,232 $101,429 $ 92,940 Earned premiums: Direct $ 97,843 $ 91,943 $ 75,130 Assumed 37,558 31,107 31,484 Ceded (38,690) (24,248) (17,511) Net earned premiums $ 96,711 $ 98,802 $ 89,103 Loss and loss adjustment expenses: Direct $ 73,000 $ 71,021 $ 48,780 Assumed 43,487 25,740 24,429 Ceded (35,047) (26,900) (16,981) Net loss and LAE $ 81,440 $ 69,861 $ 56,228 |
Debt (Q1)
Debt (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Debt | 7. Debt As of March 31, 2023, the Company's debt is comprised of two instruments: $24.3 million of publicly traded senior unsecured notes (the “Notes”) which were issued in 2018 and $10.5 million of privately placed subordinated notes (the “Subordinated Notes”). A summary of the Company's outstanding debt is as follows (dollars in thousands): March 31, 2023 December 31, 2022 Senior unsecured notes $24,251 $24,186 Subordinated notes 9,703 9,690 Total $33,954 $33,876 Senior unsecured notes The Company issued $25.3 million of public senior unsecured notes (the “Notes”) in 2018. The Notes bear an interest rate of 6.75% per annum, payable quarterly at the end of March, June, September and December and mature on September 30, 2023. The Company may redeem the Notes, in whole or in part, at face value at any time after September 30, 2021. Management plans to issue new public debt or sell assets to provide sufficient cash flow to pay off the senior unsecured notes that are coming due within the next twelve months. Management believes it is probable that it will be able to issue new public debt and/or sell assets as necessary to repay the senior unsecured notes by September 30, 2023. The Company did not repurchase any of the Notes for the three months ended March 31, 2023 and 2022. Subordinated notes The Company also has outstanding $10.5 million of Subordinated Notes maturing on September 30, 2038. The Subordinated Notes bear an interest rate of 7.5% per annum until September 30, 2023, and 12.5% thereafter, and allow for four quarterly interest payment deferrals. Interest is payable quarterly at the end of March, June, September and December. Beginning September 30, 2021, the Company may redeem the Subordinated Notes, in whole or in part, for a call premium of $1.1 million. The call premium escalates each quarter to ultimately $1.75 million on September 30, 2023, then steps up to $3.05 million on December 31, 2023, and increases quarterly at a 12.5% per annum rate thereafter. As of March 31, 2023, the carrying value of the Notes and Subordinated Notes are offset by $130,000 and $797,000 of debt issuance costs, respectively. The debt issuance costs are being amortized through interest expense over the life of the loans. The Subordinated Notes contain various restrictive financial debt covenants that relate to the Company’s minimum tangible net worth, minimum fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. As of March 31, 2023, the Company was in compliance with all of its financial covenants. Line of credit The Company maintained a $10.0 million line of credit with a national bank (the “Lender”) during 2022. The line of credit carried an interest rate at LIBOR plus 2.75% per annum, payable monthly. The line of credit agreement matured on December 1, 2022, and was not renewed. | 9. Debt As of December 31, 2022, the Company’s debt is comprised of two instruments: $24.4 million of publicly traded senior unsecured notes which were issued in 2018 and $10.5 million of privately placed Subordinated Notes. A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2022 2021 Senior unsecured notes $24,186 $23,926 Subordinated notes 9,690 9,638 Total $33,876 $33,564 Senior unsecured notes The Company issued $25.3 million of Notes in 2018. The Notes bear an interest rate of 6.75% per annum, payable quarterly at the end of March, June, September and December and mature on September 30, 2023. The Company may redeem the Notes, in whole or in part, at face value at any time after September 30, 2021. The Company did not repurchase any of the Notes during 2022 or 2021. Management plans to issue new public debt or sell assets to provide sufficient cash flow to pay off the senior unsecured notes that are coming due within the next twelve months. Management believes it is probable that it will be able to issue new public debt and/or sell assets as necessary to repay the senior unsecured notes by September 30, 2023. Subordinated Notes The Company also has outstanding $10.5 million of Subordinated Notes maturing on September 30, 2038. The Subordinated Notes bear an interest rate of 7.5% per annum until September 30, 2023, and 12.5% thereafter, and allow for four quarterly interest payment deferrals. Interest is payable quarterly at the end of March, June, September and December. Beginning September 30, 2021, the Company may redeem the Subordinated Notes, in whole or in part, for a call premium of $1.1 million. The call premium escalates each quarter to ultimately $1.75 million on September 30, 2023, then steps up to $3.05 million on December 31, 2023, and increases quarterly at a 12.5% per annum rate thereafter. As of December 31, 2022, the carrying value of the Notes and Subordinated Notes are offset by $195,000 and $810,000 of debt issuance costs, respectively. The debt issuance costs are amortized through interest expense over the life of the loans. The Subordinated Notes contain various restrictive financial debt covenants that relate to the Company’s minimum tangible net worth, minimum fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. As of December 31, 2022, the Company was in compliance with all of its financial covenants. Line of credit The Company maintained a $10.0 million line of credit with a national bank (the “Lender”) during 2022. The line of credit carried an interest rate at LIBOR plus 2.75% per annum, payable monthly. The line of credit agreement matured on December 1, 2022, and was not renewed. Paycheck Protection Program loan On April 24, 2020, the Company received a $2.7 million loan from the line of credit Lender pursuant to the Paycheck Protection Program of the CARES Act administered by the U.S. Small Business Administration (“SBA”). The Company received notice from the SBA that the loan was 100% forgiven, including accrued interest, on |
Shareholder's Equity (Q1)
Shareholder's Equity (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Stockholders Equity Note [Abstract] | ||
Shareholder's Equity | 8. Shareholder’s Equity On August 10, 2022, the Company issued $5.0 million of equity through a private placement for 2,500,000 shares priced at $2.00 per share. The participants in the private placement consisted of members of the Company's Board of Directors. The Company used the proceeds for growth capital in the Company's specialty core business segments. As of March 31, 2023 and December 31, 2022, the Company had 12,215,849 issued and outstanding shares of common stock, respectively. Holders of common stock are entitled to one vote per share and to receive dividends only when and if declared by the board of directors. The holders have no preemptive, conversion or subscription rights. | 12. Shareholders’ Equity Common Stock On August 10, 2022, the Company issued $5.0 million of common equity through a private placement of 2,500,000 shares priced at $2.00 per share. The participants in the private placement consisted of members of the Company's Board of Directors. The Company used the proceeds for growth capital in the Company's specialty core business segments. For the year ended December 31, 2022, the Company repurchased 1,968 shares of stock valued at approximately $4,000 related to the vesting of the Company’s restricted stock units. The Company's additional paid-in capital relating to the Company's stock repurchases was $10,000 for the year ended December 31, 2022. The capital increase was due to a $14,000 adjustment for cash returned related to the Company's stock repurchase program. For the year ended December 31, 2021, the Company repurchased 3,886 shares of stock valued at approximately $12,000 related to the vesting of the Company’s restricted stock units. Upon the repurchase of the Company’s shares, the shares remain authorized, but not issued or outstanding. As of December 31, 2022 and 2021, the Company had 12,215,849 and 9,707,817 issued and outstanding shares of common stock, respectively. Holders of common stock are entitled to one vote per share and to receive dividends only when and if declared by the board of directors. The holders have no preemptive, conversion or subscription rights. |
Earnings Per Share (Q1)
Earnings Per Share (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Earnings Per Share | 10. Earnings Per Share Basic and diluted earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except per share and share amounts): Three Months Ended March 31, 2023 2022 Net income (loss) $ 1,001 $ (2,870) Weighted average common shares, basic and diluted* 12,215,849 9,707,817 Earnings (loss) per common share, basic and diluted $ 0.08 $ (0.30) * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. | 14. Earnings Per Share Basic and diluted earnings (loss) per share are computed by dividing net income by the weighted average number of common shares outstanding during the period. The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net income (loss) $ (10,681) $ (1,094) $ 595 Weighted average common shares, basic and diluted* 10,692,090 9,691,998 9,625,059 Earnings (loss) per share, basic and diluted ( 1.00 $ (0.11) $ 0.06 * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of December 31, 2022, 2021, and 2020. Therefore, the non-vested shares are excluded from earnings (loss) per share for the years ended December 31, 2022, 2021, and 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Three months ended March 31, 2023 2022 Balance at beginning of period $(18,203) $(2,110) Other comprehensive income (loss) before reclassifications, net of tax 2,286 (7,287) Less: amounts reclassified from accumulated other comprehensive income (loss), net of tax — — Net other comprehensive income (loss) 2,286 (7,287) Balance at end of period $(15,917) $(9,397) | 13. Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Year Ended December 31, 2022 2021 Balance at beginning of period $ (2,110) $ 912 Other comprehensive income (loss) before reclassifications (16,024) (2,937) Less: amounts reclassified from accumulated other comprehensive income (loss) 69 85 Net current period other comprehensive income (loss) (16,093) (3,022) Balance at end of period $(18,203) $(2,110) |
Stock-based Compensation (Q1)
Stock-based Compensation (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock-based Compensation | 11. Stock-based Compensation On March 8, 2022, the Company issued options to purchase 630,000 shares of the Company’s common stock to two named executive officers. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $4.53 per share and will expire on March 8, 2032. The estimated value of these options is $612,000, which is being expensed ratably over the vesting period. A Black Scholes model was used to determine the fair value of the options at the time the options were issued, using the Company’s historical 5-year market price of its stock to determine volatility (equating to 65.04%), an estimated 5-year term to exercise the options, a 5-year risk-free rate of return of 1.8%, and the market price for the Company’s stock of $2.40 per share. On June 30, 2020, the Company issued options to purchase 280,000 shares of the Company’s common stock, to certain executive officers and other employees. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $3.81 per share and expire on June 30, 2030. The estimated value of these options is $290,000, which is being expensed ratably over the vesting period. In 2016 and 2018, the Company issued 111,281 and 70,000, respectively, of restricted stock units (“RSUs”) to various employees to be settled in shares of common stock, which were valued at $909,000 and $404,000, respectively, on the dates of grant. The Company recorded $12,000 and $14,000 of compensation expense related to the RSUs for the three months ended March 31, 2023 and 2022, respectively. There were 9,000 unvested RSUs as of March 31, 2023, which will generate an estimated future expense of $4,000. The Company recorded $43,000 and $24,000 of compensation expense related to the stock options for the three months ended March 31, 2023 and 2022, respectively. There were 654,000 unvested options as of March 31, 2023, which will generate an estimated future expense of $595,000 through February of 2027. | 15. Stock-based Compensation On March 8, 2022 the Company issued options to purchase 630,000 shares of the Company's common stock to two named executive officers. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $4.53 per share and will expire on March 8, 2032. The estimated fair value of these options is $612,000, which is being expensed ratably over the vesting period. A Black Scholes model was used to determine the fair value of the options at the time the options were issued, using the Company’s historical 5-year market price of its stock to determine volatility (equating to 65.04%), an estimated 5-year term to exercise the options, a 5-year risk-free rate of return of 1.8%, and the market price for the Company’s stock of $2.40 per share. On June 30, 2020, the Company issued options to purchase 280,000 shares of the Company’s common stock to certain executive officers and other employees. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $3.81 per share and expire on June 30, 2030. The estimated value of these options is $290,000, which will be expensed ratably over the vesting period. In 2016 and 2018, the Company issued 111,281 and 70,000, respectively, of restricted stock units (“RSUs”) to various employees to be settled in shares of common stock, which were valued at $909,000, and $404,000, respectively, on the dates of grant. The Company recorded $56,000, $166,000, and $677,000 of compensation expense related to the RSUs for the years ended December 31, 2022, 2021, and 2020, respectively. There were 9,000 unvested RSUs as of December 31, 2022, which will generate an estimated future expense of $17,000. The Company recorded $53,000, $52,000, and $29,000 of compensation expense for the year ended December 31, 2022, 2021, and 2020, respectively, related to the stock options granted on June 30, 2020. There were 153,000 options outstanding and unvested as of December 31, 2022, which will generate an estimated future expense of $132,000. The Company recorded $102,000 of compensation expense for the year ended December 31, 2022, related to the stock options granted on March 8, 2022. There were 630,000 options outstanding and unvested as of December 31, 2022, which will generate an estimated future expense of $510,000. |
Commitments and Contingencies (
Commitments and Contingencies (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 12. Commitments and Contingencies Legal proceedings The Company and its subsidiaries are subject at times to various claims, lawsuits and proceedings relating principally to alleged errors or omissions in the placement of insurance, claims administration, and other business transactions arising in the ordinary course of business. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Most of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the insurance policy at issue. We account for such activity through the establishment of unpaid losses and LAE reserves. In accordance with accounting guidance, if it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss is reasonably estimable; then an accrual for the costs to resolve these claims is recorded by the Company in the accompanying consolidated financial statements. Periodic expenses related to the defense of such claims are included in the accompanying consolidated statements of operations. On the basis of current information, the Company does not believe that there is a reasonable possibility that any material loss exceeding amounts already accrued, if any, will result from any of the claims, lawsuits and proceedings to which the Company is subject to, either individually or in the aggregate. | 18. Commitments and Contingencies Legal proceedings The Company and its subsidiaries are subject at times to various claims, lawsuits and proceedings relating principally to alleged errors or omissions in the placement of insurance, claims administration, and other business transactions arising in the ordinary course of business. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Most of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the insurance policy at issue. We account for such activity through the establishment of unpaid losses and LAE reserves. In accordance with accounting guidance, if it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss is reasonably estimable; then an accrual for the costs to resolve these claims is recorded by the Company in the accompanying consolidated balance sheets. Periodic expenses related to the defense of such claims are included in the accompanying consolidated statements of operations. On the basis of current information, the Company does not believe that there is a reasonable possibility that any material loss exceeding amounts already accrued, if any, will result from any of the claims, lawsuits and proceedings to which the Company is subject to, either individually, or in the aggregate. Commitments The Company is party to an agreement with an unaffiliated company to provide a policy administration, billing, and claims system for the Company. The scope of work and fee structure has changed over time. Currently, the agreement requires a minimum monthly payment of $30,000 with a fee schedule that is scalable with the premium volume, and expires on November 1, 2026. |
Segment Information (Q1)
Segment Information (Q1) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting [Abstract] | ||
Segment Information | 13. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company views the commercial and personal lines segments as underwriting business (business that takes on insurance underwriting risk). The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. The wholesale agency business increases the product options to the Company’s independent retail agents by offering both insurance products from the Insurance Company Subsidiaries as well as products offered by other insurers. The Company defines its operating segments as components of the business where separate financial information is available and used by the co-chief operating decision makers in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s co-chief operating decision makers, the Co-Chief Executive Officers, review a number of financial measures including gross written premiums, net earned premiums, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for personnel, policy issuance and claims systems, rent and utilities. The Company markets, distributes and sells its insurance products through its own insurance agencies and a network of independent agents. All of the Company’s insurance activities are conducted in the United States with a concentration of activity in Michigan, Texas, Oklahoma and California. For the three months ended March 31, 2023 and 2022, gross written premiums attributable to these four states were 56.2% and 55.7%, respectively, of the Company’s total gross written premiums. The Wholesale Agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the Wholesale Agency business and are eliminated in the Eliminations category. In addition to the reportable operating segments, the Company maintains a Corporate category to reconcile segment results to the consolidated totals. The Corporate category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team and finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable operating segment (dollars in thousands): Three months ended March 31, 2023 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,975 $7,239 $36,214 $ — $ — $ — $36,214 Net written premiums $12,241 $6,101 $18,342 $ — $ — $ — $18,342 Net earned premiums $17,123 $4,829 $21,952 $ — $ — $ — $21,952 Other income 52 23 75 879 72 (400) 626 Segment revenue 17,175 4,852 22,027 879 72 (400) 22,578 Losses and LAE, net 10,547 3,166 13,713 — — — 13,713 Policy acquisition costs 3,196 1,389 4,585 548 — (412) 4,721 Operating expenses 3,028 592 3,620 352 307 — 4,279 Segment expenses 16,771 5,147 21,918 900 307 (412) 22,713 Segment gain (loss) $ 404 $ (295) $ 109 $ (21) $ (235) $ 12 $ (135) Investment income 1,307 1,307 Net realized investment gains (losses) — — Change in fair value of equity securities 694 694 Other gains (losses) — — Interest expense (686) (686) Income (loss) before equity earnings in Affiliate and income taxes $ 404 $ (295) $ 109 $ (21) $1,080 $ 12 $ 1,180 Three months ended March 31, 2022 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,586 $4,378 $32,964 $ — $ — $ — $32,964 Net written premiums $14,340 $3,681 $18,021 $ — $ — $ — $18,021 Net earned premiums $20,524 $3,431 $23,955 $ — $ — $ — $23,955 Other income 71 6 77 1,112 147 (638) 698 Segment revenue 20,595 3,437 24,032 1,112 147 (638) 24,653 Losses and LAE, net 16,610 1,408 18,018 — — — 18,018 Policy acquisition costs 4,357 1,093 5,450 758 — (744) 5,464 Operating expenses 3,161 402 3,563 292 305 — 4,160 Segment expenses 24,128 2,903 27,031 1,050 305 (744) 27,642 Segment gain (loss) $ (3,533) $ 534 $ (2,999) $ 62 $(158) $ 106 $ (2,989) Investment income 507 507 Net realized investment gains (losses) (69) (69) Change in fair value of equity securities 280 280 Other gains (5) (5) Interest expense (711) (711) Income (loss) before equity earnings in Affiliate and income taxes $ (3,533) $ 534 $ (2,999) $ 62 $(156) $ 106 $ (2,987) | 19. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company views the commercial and personal lines segments as underwriting business (business that takes on insurance underwriting risk). The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. The wholesale agency business increases the product options to the Company’s independent retail agents by offering both insurance products from the Insurance Company Subsidiaries as well as products offered by other insurers. The Company defines its operating segments as components of the business where separate financial information is available and used by the co-chief operating decision makers in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s co-chief operating decision makers, the Co-Chief Executive Officers, review a number of financial measures including gross written premiums, net earned premiums, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for personnel, policy issuance and claims systems, rent and utilities. The Company markets, distributes and sells its insurance products through its own insurance agencies and a network of independent agents. All of the Company’s insurance activities are conducted in the United States with a concentration of activity in Michigan, Florida, Texas and California. For the years ended December 31, 2022, 2021, and 2020, gross written premiums attributable to these four states were 54.1%, 50.6%, and 49.6% respectively, of the Company’s total gross written premiums. The following table summarizes our net earned premiums: Net Earned Premium 2022 2021 2020 Commercial 84% 89% 92% Personal 16% 11% 8% Total 100% 100% 100% The wholesale agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the wholesale agency business and are eliminated in the Eliminations category. In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team, some finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $ 116,868 $21,151 $138,019 $ — $ — $ — $138,019 Net written premiums $ 72,318 $18,914 $ 91,232 $ — $ — $ — $ 91,232 Net earned premiums $ 80,823 $15,888 $ 96,711 $ — $ — $ — $ 96,711 Other income 245 82 327 5,712 271 (3,542) 2,768 Segment revenue 81,068 15,970 97,038 5,712 271 (3,542) 99,479 Loss and loss adjustment expenses, net 70,762 10,678 81,440 — — — 81,440 Policy acquisition costs 17,682 4,604 22,286 3,653 — (3,760) 22,179 Operating expenses 13,069 1,936 15,005 2,612 1,192 (20) 18,789 Loss portfolio transfer risk fee 5,400 — — — — — 5,400 Segment expenses 106,913 17,218 118,731 6,265 1,192 (3,780) 127,808 Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Segment underwriting gain (loss) (25,845) ( 1,248 (21,693) (553) (921) 238 (28,329) Net investment income 32 3,011 3,043 Net realized investment gains (losses) (1,505) (1,505) Change in fair value of equity securities 403 403 Gain from VSRM Transaction 8,810 8,810 Other gains (1) 60 59 Interest expense (42) (2,929) (2,971) Income (loss) before income taxes $ (25,845) $(1,248) $(21,693) $(564) $ 6,929 $ 238 $ (20,490) Selected Balance Sheet Data: Deferred policy acquisition costs $ 7,683 $ 2,796 $(189) $ 10,290 Unearned premiums 56,565 11,322 67,887 Unpaid losses and loss adjustment expenses 159,558 5,981 165,539 Year Ended December 31, 2021 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $117,075 $15,020 $132,095 $ — $ — $ — $132,095 Net written premiums $ 87,307 $14,122 $101,429 $ — $ — $ — $101,429 Net earned premiums $ 87,759 $11,043 $ 98,802 $ — $ — $ — $ 98,802 Other income 215 143 358 5,848 365 (3,900) 2,671 Segment revenue 87,974 11,186 99,160 5,848 365 (3,900) 101,473 Loss and loss adjustment expenses, net 63,868 5,993 69,861 — — — 69,861 Policy acquisition costs 25,687 3,307 28,994 3,727 — (4,270) 28,451 Operating expenses 11,648 1,357 13,005 2,382 1,122 — 16,509 Segment expenses 101,203 10,657 111,860 6,109 1,122 (4,270) 114,821 Segment underwriting gain (loss) (13,229) 529 (12,700) (261) (757) $ 370 (13,348) Net investment income 1,968 1,968 Net realized investment gains 2,878 2,878 Change in fair value of equity securities (2,020) (2,020) Other gains 11,664 11,664 Interest expense (2,852) (2,852) Income (loss) before income taxes $ (13,229) $ 529 $ (12,700) $ (261) $10,881 $ 370 $ (1,710) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,619 $ 2,075 $ (427) $ 12,267 Unearned premiums 57,491 7,778 65,269 Unpaid losses and loss adjustment expenses 135,084 4,001 139,085 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $102,763 $8,572 $111,335 $— $— $— $111,335 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Net written premiums $ 85,385 $7,555 $92,940 $ — $ — $ — $ 92,940 Net earned premiums $ 82,409 $6,694 $89,103 $ — $ — $ — $ 89,103 Other income 242 150 392 7,571 245 (5,593) 2,615 Segment revenue 82,651 6,844 89,495 7,571 245 (5,593) 91,718 Loss and loss adjustment expenses, net 53,263 2,965 56,228 — — — 56,228 Policy acquisition costs 25,051 2,044 27,095 4,938 — (5,928) 26,105 Operating expenses 12,644 1,069 13,713 3,107 1,648 — 18,468 Segment expenses 90,958 6,078 97,036 8,045 1,648 (5,928) 100,801 Segment underwriting gain (loss) (8,307) 766 (7,541) (474) (1,403) $ 335 (9,083) Net investment income 3,156 3,156 Net realized investment gains 8,126 8,126 Change in fair value of equity securities 228 228 Other gains 260 260 Interest expense (2,925) (2,925) Income (loss) before income taxes $ (8,307) $ 766 $(7,541) $ (474) $ 7,442 $ 335 $ (238) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,858 $1,183 $ (798) $ 12,243 Unearned premiums 51,535 4,689 56,224 Unpaid losses and loss adjustment expenses 106,662 4,608 111,270 |
Subsequent Events (Q1)
Subsequent Events (Q1) | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the condensed consolidated financial statements as of March 31, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries, Conifer Insurance Company (“CIC”), White Pine Insurance Company (“WPIC”), Red Cedar Insurance Company (“RCIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and VSRM, Inc. (“VSRM”). CIC, WPIC, and RCIC are collectively referred to as the “Insurance Company Subsidiaries.” On a stand-alone basis, Conifer Holdings, Inc. is referred to as the “Parent Company.” VSRM owns a 50% non-controlling interest in Sycamore Specialty Underwriters, LLC (“SSU” or “Affiliate”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. The Company has applied the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting and therefore the consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the consolidated interim financial statements, have been included. These consolidated financial statements and the notes thereto should be read in conjunction with the Company's audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the year ended December 31, 2023. Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States of America (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments incurred loss methodology and the concept of Other-than-Temporary Impairment (or “OTTI”) with an expected credit loss methodology that is sometimes referred to as the Current Expected Credit Loss (CECL) methodology. The guidance applies to Conifer's reinsurance recoverables, premium receivable, and debt securities. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The adoption of ASC 326 did not have any impact on the Company's financial statements. Among other updates which management deems to have no material impact, ASC 326 made changes to the accounting for available-for-sale debt securities. At each quarter-end, for available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, 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 is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Recently Issued Accounting Guidance In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) | 1. Summary of Significant Accounting Policies Recent Developments COVID-19 (the “Pandemic”) continues to cause significant disruption to public health, the global economy, financial markets, and commercial, social and community activity in general. As there has been a significant reduction in reported cases and correspondingly a reduction in government restrictions, we see reduced risk to our business. We continue to monitor potential risks the Pandemic may present including a potential resurgence. Our exposure to the Pandemic is manifold. The majority of our employees continue to work remotely however strict “shelter-in-place” or “stay-at-home” orders have been lifted. A significant portion of our revenues are generated from the hospitality sector within the U.S. which remains under stress due to the threats of resurgence and resource shortages that resulted from the Pandemic. We have continued to provide customer service, process new and renewal business, handle claims and otherwise manage all operations even though the vast majority of the staff is working remotely. To date, we have not seen a major disruption in our business as a result of the Pandemic and currently do not expect to see a material negative impact to our financial position or results of operations as a result of the Pandemic. Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company (“CIC”), Red Cedar Insurance Company (“RCIC”), White Pine Insurance Company (“WPIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and, as of October 13, 2022, VSRM, Inc. (“VSRM”). VSRM has substantially no operations following the contribution to SSU as described in Note 2 ~ VSRM Transaction The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In applying these estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including uncertainties associated with the Pandemic. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as short-term investments in the consolidated balance sheets as they relate to the Company’s investment activities. Lease Accounting The Company accounts for leases under FASB Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which required the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value upon initial recognition, for all leases that extend beyond 12 months. For operating leases, the asset and liability are amortized over the lease term with expense recognized on a straight-line basis and all cash flows included in the operating section of the consolidated statement of cash flows. We do not have any financing leases. Our operating leases consist primarily of real estate utilized in the operation of our businesses with lease terms ranging from 5 to 10 years. Management has determined the appropriate discount rate to use in calculating the right-to-use asset and lease liability is 6.75%. The Company records a right-of-use asset and lease liabilities included in Other Assets and Other Liabilities in the Consolidated Balance Sheets. As of December 31, 2022, the Company had a right-of-use asset lease liabilities right-of-use asset lease liabilities Investment Securities Debt securities are classified as available-for-sale and reported at fair value. The Company determines the fair value using the market approach, which uses quoted prices or other relevant data based on market transactions involving identical or comparable assets. The Company purchases available-for-sale debt securities with the expectation that they will be held to maturity, however the Company may sell them if market conditions or credit-related risk warrant earlier sales. The Company does not have any securities classified as held-to-maturity or trading. The change in unrealized gain and loss on debt securities is recorded as a component of accumulated other comprehensive income (loss), net of the related deferred tax effect, until realized. The debt securities portfolio includes structured securities. The Company recognizes income from these securities using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Premiums and discounts on structured securities are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in interest income in the consolidated statements of operations. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis and included in earnings on the trade date. Equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income in the Consolidated Statements of Operations. Investment company limited partnerships are measured at their net asset value, which approximates fair value. Any changes in the net asset value are recognized in net income in the Consolidated Statements of Operations. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. We review these investments for impairment during each reporting period. These investments are a component of Other Assets in the Consolidated Balance Sheets. Other-than-Temporary Impairments The Company reviews its impaired securities for possible other-than-temporary impairment (“OTTI”) at each quarter-end. A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. The Company considers the following factors in performing its review: (i) the amount by which the security’s fair value is less than its cost, (ii) length of time the security has been impaired, (iii) whether management has the intent to sell the security, (iv) if it is more likely than not that management will be required to sell the security before recovery of its amortized cost basis, (v) whether the impairment is due to an issuer-specific event, credit issues or change in market interest rates, (vi) the security’s credit rating and any recent downgrades or (vii) stress testing of expected cash flows under different scenarios. If the Company cannot conclude that declines in fair value below amortized cost are considered temporary, an OTTI loss is recorded through the Consolidated Statements of Operations in the current period. For all other impaired securities, the Company will assess whether the net present value of the cash flows expected to be collected from the security is less than its amortized cost basis. Such a shortfall in cash flows is referred to as a “credit loss.” For any such security, the Company separates the impairment loss into: (i) the credit loss and (ii) the non-credit loss, which is the amount related to all other factors such as interest rate changes, fluctuations in exchange rates and market conditions. The credit loss charge is recorded to the current period statements of operations and the non-credit loss is recorded to accumulated other comprehensive income (loss), within shareholders’ equity, on an after-tax basis. A security’s cost basis is permanently reduced by the amount of a credit loss. Income is accreted over the remaining life of a security based on the interest rate necessary to discount the expected future cash flows to the new basis. If the security is non-income producing, any cash proceeds are applied as a reduction of principal when received. Recognition of Premium Revenues All of the property and casualty policies written by our insurance companies are considered short-duration contracts. These policy premiums are earned on a daily pro-rata basis, net of reinsurance, over the term of the policy, which are primarily twelve months in duration. The portion of premiums written that relate to the unexpired terms of policies in force are deferred and reported as unearned premium at the balance sheet date. Reinsurance Reinsurance premiums, commissions, losses and loss adjustment expenses (“LAE”) on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses and LAE paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverables on unpaid losses and LAE are estimated based upon assumptions consistent with those used in establishing the gross liabilities as they are applied to the underlying reinsured contracts. The Company records an allowance for uncollectible reinsurance recoverables based on an assessment of the reinsurer’s creditworthiness and collectability of the recorded amounts. Management believes an allowance for uncollectible recoverables from its reinsurers was not necessary for the periods presented. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of policy acquisition costs. In 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement. The LPT is a retroactive reinsurance contract. See Note 8 ~ Reinsurance Deferred Policy Acquisition Costs Costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business is deferred. These deferred costs consist of commissions paid to agents (net of ceding commissions), premium taxes, and underwriting costs, including compensation and payroll related benefits. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy term. To the extent that unearned premiums on existing policies are not adequate to cover the sum of expected losses and LAE, unamortized acquisition costs and policy maintenance costs, unamortized deferred policy acquisition costs are charged to expense to the extent required to eliminate the premium deficiency. If the premium deficiency is greater than the unamortized policy acquisition costs, a liability is recorded for any such deficiency. As of December 31, 2022, there was no premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency exists. Management performs this evaluation at each insurance product line level. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and LAE in the Consolidated Balance Sheets represents the Company’s estimate of the amount it expects to pay for the ultimate cost of all losses and LAE incurred that remain unpaid at the balance sheet date. The liability is recorded on an undiscounted basis, except for the liability for unpaid losses and LAE assumed related to any acquired companies which are initially recorded at fair value. The process of estimating the liability for unpaid losses and LAE is a complex process that requires a high degree of judgment. The liability for unpaid losses and LAE represents the accumulation of individual case estimates for reported losses and LAE, and actuarially determined estimates for incurred but not reported losses and LAE and includes a provision for estimated costs to settle all outstanding claims at the balance sheet date. The liability for unpaid losses and LAE is intended to include the ultimate net cost of all losses and LAE incurred but unpaid as of the balance sheet date. The liability is stated net of anticipated deductibles, salvage and subrogation, and gross of reinsurance ceded. The estimate of the unpaid losses and LAE liability is continually reviewed and updated. Although management believes the liability for losses and LAE is reasonable, the ultimate liability may be more or less than the current estimate. The estimation of ultimate liability for unpaid losses and LAE is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The Company utilizes various actuarially-accepted reserving methodologies in deriving the continuum of expected outcomes and ultimately determining its estimated liability amount. These methodologies utilize various inputs, including but not limited to written and earned premiums, paid and reported losses and LAE, expected initial loss and LAE ratio, which is the ratio of incurred losses and LAE to earned premiums, and expected claim reporting and payout patterns (including company-specific and industry data). The liability for unpaid loss and LAE does not represent an exact measurement of liability, but is an estimate that is not directly or precisely quantifiable, particularly on a prospective basis, and is subject to a significant degree of variability over time. In addition, the establishment of the liability for unpaid losses and LAE makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in the Company’s historical experience or which cannot yet be quantified. As a result, an integral component of estimating the liability for unpaid losses and LAE is the use of informed subjective estimates and judgments about the ultimate exposure to unpaid losses and LAE. The effects of changes in the estimated liability are included in the results of operations in the period in which the estimates are revised. The Company allocates the applicable portion of the unpaid losses and LAE to amounts recoverable from reinsurers under reinsurance contracts and reports those amounts separately as assets on the consolidated balance sheets. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification (“ASC”) 740, Income Taxes, As of December 31, 2022 and 2021, the Company did not have any unrecognized tax benefits and had no accrued interest or penalties related to uncertain tax positions. Other Income Other income consists primarily of fees charged to policyholders by the Company for services outside of the premium charge, such as installment billings or policy issuance costs. Commission income is also received by the Company’s insurance agencies for writing policies for third party insurance companies. The Company recognizes commission income on the later of the effective date of the policy, the date when the premium can be reasonably established, or the date when substantially all services related to the insurance placement have been rendered. Operating Expenses Operating expenses consist primarily of other underwriting, compensation and benefits, information technology, facility and other administrative expenses. Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) Risks and Uncertainties The Company is exposed to interest rate risks as it maintains a significant amount of its investment portfolio in debt securities. As a result of changes in interest rates during 2022, the Company reported a $16.0 million net unrealized loss that was reflected in other comprehensive income. As of December 31, 2022, total net unrealized losses in the debt securities was $18.2 million. Management believes it will not need to sell debt securities at significant losses as it has the ability and intention to hold them until their values improve. Management has noted the media has reported a number of recent bank failures. The Company does not have any deposits or investments in any of these banks. Management does not expect any significant impact as a result of these events. |
VSRM Transaction (FY)
VSRM Transaction (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
VSRM Transaction | 2. VSRM Transaction Prior to October 13, 2022, Sycamore owned 50% of Venture Agency Holdings, Inc. (“Venture”) and has accounted for its ownership under the equity method of accounting. On October 13, 2022, Sycamore purchased the other 50% of Venture from an individual for $9.7 million. Following this purchase, Sycamore obtained control and owned 100% of Venture, which was then renamed to VSRM, Inc. (“VSRM”). VRSM and its two wholly owned subsidiaries, The Roots Insurance Agency, Inc. (“Roots”) and Mitzel Insurance Agency, Inc. (“Mitzel”) were incorporated into the Company's consolidated financial statements as of the date of the acquisition. Sycamore initially purchased the Venture shares with a promissory note for $9.7 million and ultimately settled the note with $5.9 million of cash received from the Security & Alarm Business sale, described below, and $3.8 million in the form of stock from the buyer of the Security & Alarm Business. The Company acquired the remaining outstanding shares of VSRM, in order to take advantage of net operating tax losses as part of a tax planning strategy to apply to the Security and Alarm Business sale described below, in addition to the strategic focus of getting out of the Security and Alarm line of business. The Company recognized Sycamore's purchase of the individual's shares of VSRM as a step acquisition and revalued all assets and liabilities upon the acquisition date. This resulted in the recognition of an $8.8 million non-operating gain reported in the Consolidated Statement of Operations as Gain from VSRM Transaction in the fourth quarter of 2022. The Company also utilized $12.5 million of federal income tax net operating losses carried forward and $14.8 million state income tax net operating losses carried forward, for a total net-of-tax benefit of $9.4 million. VSRM retained $8.9 million of debt, and $9.4 million of tax liabilities, as well as other smaller assets and liabilities that did not go with the transaction. A condensed schedule of assets and liabilities incorporated into the consolidated balance sheet from the VSRM acquisition is provided below: Cash $ 3,921 Trade receivables 4,604 Customer relationship intangible assets 37,122 Other assets 574 Total assets $46,221 Trade and other payables 7,624 Deferred tax liability 9,407 Note payable to Affiliate 6,000 Senior debt 2,917 Total Liabilities $25,948 Fair value of net assets acquired $20,273 The following table presents the calculation of the $8.8 million revaluation gain related to the Company's equity method investment in VSRM as a result of the VSRM Transaction: Carrying value of equity method investment in VSRM $ 1,773 Fair value of investment in VSRM 10,583 Gain on step acquisition $ 8,810 The fair value of the equity interest of VSRM immediately prior to the acquisition was $10.6 million. The fair value techniques used to measure the fair value of VSRM included using the recent valuations performed by third party valuation experts and the net realized proceeds received upon the sale of the Security & Alarm Business sold the following day. There were no material transaction costs incurred in the acquisition of VSRM. Additionally, no results of operations for the Security and Alarm business have been included the consolidated financial statements as that business was immediately disposed of. Results of operations for the retained business have been included from the date of acquisition through December 31, 2022. On October 14, 2022, VSRM sold all of its security guard and alarm installation insurance brokerage business (the “Security & Alarm Business”) to a third party insurance brokerage firm for $38.2 million, of which $32.8 million was paid in cash and $3.8 million was in the form of the buyer's stock. The $3.8 million of buyer's stock was immediately used to settle a portion of the $9.7 million promissory note that was issued to buy the 50% of Venture and the remainder of the promissory note was settled with cash from the sale of business. As part of the transaction, the individual who previously owned 50% of VSRM transitioned employment to the buyer, along with a team of approximately eight other employees of VSRM. Also, the Company transferred to the buyer, $4.3 million of accounts receivable, $5.8 million of current liabilities, $271,000 in cash as well as all books and records of the business being purchased. The buyer held back $75,000 of cash for a future true up of the trade balances which the Company reflected as a current receivable. The Company recognized this transaction as the sale of a business. Because all assets and liabilities were just adjusted to fair value from the step acquisition described above, the basis of the net assets sold equaled the net proceeds from the sale, thus there was no gain recognized upon the sale of the Security & Alarm Business. The following table reconciles the net assets disposed of from this transaction: Cash at closing $32,759 Net liabilities transferred 1,499 Hold back 75 Stock of acquirer 3,822 Total purchase price $38,155 Cash $ 271 Premiums transferred to buyer 4,326 Intangible assets 38,154 Trade payables and accrued liabilities assumed by buyer (5,838) Net assets disposed of 36,913 Net gain 1,242 Broker fee transaction costs (1,242) Net gain $ — The net gain on revaluation of the investment in VSRM and the disposal of the Security and Alarm Business line are summarized below: Gross gains $10,052 Broker fee (1,242) Net gain $ 8,810 On December 30, 2022, VSRM contributed its remaining business, including its two wholly owned subsidiaries (Mitzel and Roots) to a new wholly owned subsidiary, Sycamore Specialty Underwriters, LLC (“SSU”). The business contributed to SSU consisted of customer accounts of substantially all of the personal lines business and a small subset of the commercial lines business underwritten by the Insurance Company Subsidiaries, and all of the customer accounts VSRM produced for third-party insurers, other than the security guard and alarm installation brokerage business previously sold. On December 31, 2022, Sycamore Financial Group, LLC (“SFG”), wholly owned by Andrew D. Petcoff purchased 50% of SSU from VSRM, Inc. for $1,000. As a result, SSU and its two wholly owned subsidiaries, Roots and Mitzel, are no longer consolidated in the Company's consolidated financial statements as of December 31, 2022, and VSRM's investment in SSU is accounted for using the equity method. The net assets transferred to SSU had a fair value of $0 at the time of the contribution. There was no gain or loss recognized upon the sale of half of SSU to SFG. Included in the net assets transferred to SSU was a $1.0 million promissory note obligation of VSRM that originated as part of the Venture Transaction described below, and is payable to CIC. The following table provides the assets and liabilities deconsolidated as a result of this transaction: Cash $ 497 Receivable from VSRM 934 Trade receivables 239 Intangible asset 196 Other assets 514 Total assets $2,380 Payable to Affiliates 286 Trade payables 193 Note payable 1,000 Other liabilities 901 Total Liabilities $2,380 In order to determine the value of the business contributed to SSU, the Company obtained a third party valuation based on a weighting of discounted cash flows and earnings before interest, taxes, depreciation and amortization (EBITDA) multiple valuation methods. The valuation included significant estimates and assumptions related to (i) forecasted revenue and EBITDA and (ii) the selection of the EBITDA multiple and discount rate. |
Sale of Certain Agency Business
Sale of Certain Agency Business (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income, Nonoperating [Abstract] | |
Sale of Certain Agency Business | 3. Sale of Certain Agency Business On June 30, 2021, Sycamore Insurance Agency sold to Venture Agency Holdings, Inc. the customer accounts and other related assets of some of its personal and commercial lines of business, hereby referred to as the (“Venture Transaction”). The customer accounts consist substantially of new and renewal rights and customer lists of the agency. Sycamore will continue to produce various personal and commercial lines that it did not sell to Venture, which is substantially all produced for, and underwritten by, the Insurance Company Subsidiaries. The Company recognized an $8.9 million gain on the sale which is reflected in Other Gains on the Consolidated Statements of Operations. The purchase price was $10.0 million of which $1.0 million was paid in cash on June 30, 2021, and $9.0 million was in the form of two promissory notes (one for $6.0 million and one for $3.0 million). Both notes require interest-only quarterly payments at a per annum rate of 7.0%, with a five-year maturity. There are no prepayment penalties. On December 14, 2021, Venture paid off the $3.0 million note. On October 20, 2022, Venture paid down $5.0 million of the $6.0 million note. The remaining $1.0 million promissory note was assumed by SSU as part of the contribution of business to SSU described in Note 2 ~ Acquisition of Joint Venture and Subsequent Sale of Business. The assets sold included the customer accounts of substantially all of the personal lines business and a small subset of the commercial lines business underwritten by the Insurance Company Subsidiaries, and all of the customer accounts Sycamore produced for third-party insurers. The transaction included the transition of 21 employees from Conifer to Venture as well as necessary systems and office functions to operate the business. Venture is not assuming any in-force business or liabilities. |
Investments (FY)
Investments (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | ||
Investments | 2. Investments Results for reporting periods occurring before January 1, 2023 continue to be reported in accordance with previously applicable U.S. GAAP and note presented under ASC 326, which was adopted by the Company on January 1, 2023. The Company analyzed its investment portfolio in accordance with its credit loss review policy and determined it did not need to record a credit loss for the three months ended March 31, 2023 and 2022. The Company holds only investment grade securities from high credit quality issuers. The gross unrealized losses of $14.6 million as of March 31, 2023, from the Company's available-for-sale securities are due to market conditions and interest rate changes. The cost or amortized cost, gross unrealized gains or losses, and estimated fair value of the investments in securities classified as available for sale at March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,220 $— $ (249) $ 6,971 State and local government 26,063 1 (3,866) 22,198 Corporate debt 35,070 — (4,139) 30,931 Asset-backed securities 21,150 — (1,045) 20,105 March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Mortgage-backed securities 28,524 — (4,739) 23,785 Commercial mortgage-backed securities 3,413 — (125) 3,288 Collateralized mortgage obligations 3,834 — (479) 3,355 Total debt securities available for sale $125,274 $ 1 $(14,642) $110,633 December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): March 31, 2023 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 2 $ 900 $ (6) 10 $ 6,071 $ (243) 12 $ 6,971 $ (249) State and local government 13 3,229 (80) 110 18,267 (3,786) 123 21,496 (3,866) Corporate debt 4 1,509 (41) 64 29,422 (4,098) 68 30,931 (4,139) Asset-backed securities 3 1,085 (28) 22 19,020 (1,017) 25 20,105 (1,045) Mortgage-backed securities 33 279 (12) 35 23,499 (4,727) 68 23,778 (4,739) Commercial mortgage-backed securities 1 209 (20) 3 3,056 (105) 4 3,265 (125) Collateralized mortgage obligations 11 166 (6) 23 3,212 (473) 34 3,378 (479) Total debt securities available for sale 67 $7,377 $(193) 267 $102,547 $(14,449) 334 $109,924 $(14,642) December 31, 2022 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage-backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 $38,757 $(4,857) 133 $71,142 $(12,062) 338 $109,899 $(16,919) The Company’s sources of net investment income and losses are as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities $ 853 $ 582 Equity securities 11 28 Cash, cash equivalents and short-term investments 503 1 Total investment income 1,367 611 Investment expenses (60) (104) Net investment income $1,307 $ 507 The following table summarizes the gross realized gains and losses from sales, calls and maturities of available-for-sale debt and equity securities (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities: Gross realized gains $— $ — Gross realized losses — — Total debt securities — — Equity securities: Gross realized gains $— 19 Gross realized losses — (88) Total equity securities — (69) Total net realized investment gains (losses) $— $(69) Proceeds from available-for-sale debt securities were $23.6 million and $6.7 million for the three months ended March 31, 2023 and 2022, respectively. There were no gross realized gains or losses from the sale of available-for-sale debt securities for the three months ended March 31, 2023 and 2022. As of March 31, 2023 and 2022, there were $0 and $750,000 of payables from securities purchased, respectively. There were $0 and $1.3 million of receivables from securities sold as of March 31, 2023, and 2022, respectively. The Company's gross unrealized gains related to its equity investments were $523,000 and $0 as of March 31, 2023 and December 31, 2022, respectively. The Company’s gross unrealized losses related to its equity investments were $467,000 and $638,000 as of March 31, 2023 and December 31, 2022, respectively. The Company also carries other equity investments that do not have a readily determinable fair value at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There were no impairments or observable changes in price recorded during 2023 related to the Company's equity securities without readily determinable fair value. These investments are included in Other Assets in the Consolidated Balance Sheets and amounted to $1.4 million as of March 31, 2023 and $1.8 million as of December 31, 2022. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at March 31, 2023. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,668 $ 4,592 Due after one year through five years 28,614 26,543 Due after five years through ten years 23,810 20,267 Due after ten years 11,261 8,698 Securities with contractual maturities 68,353 60,100 Asset-backed securities 21,150 20,105 Mortgage-backed securities 28,524 23,785 Commercial mortgage-backed securities 3,413 3,288 Collateralized mortgage obligations 3,834 3,355 Total debt securities $125,274 $110,633 At March 31, 2023 and December 31, 2022, the Insurance Company Subsidiaries had $8.1 million and $8.0 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At March 31, 2023 and December 31, 2022, the Company had $98.1 million and $95.7 million, respectively, held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. | 4. Investments The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2022 and 2021 were as follows (dollars in thousands): December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 December 31, 2021 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 20,723 $ 74 $ (77) $ 20,720 State and local government 30,063 555 (189) 30,429 Corporate debt 30,808 88 (550) 30,346 Asset-backed securities 28,652 10 (224) 28,438 Mortgage-backed securities 33,178 105 (762) 32,521 Commercial mortgage-backed securities 1,659 31 — 1,690 Collateralized mortgage obligations 5,649 35 (45) 5,639 Total debt securities available for sale $150,732 $898 $(1,847) $149,783 The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2022 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage -backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 38,757 (4,857) 133 71,142 (12,062) 338 109,899 (16,919) December 31, 2021 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 6 $10,323 $ (47) 1 $4,728 $(30) 7 $ 15,051 $ (77) State and local government 41 8,875 (172) 4 446 (17) 45 9,321 (189) Corporate debt 41 22,748 (505) 1 705 (45) 42 23,453 (550) Asset-backed securities 24 24,305 (219) 2 1,893 (5) 26 26,198 (224) Mortgage-backed securities 12 27,034 (762) — — — 12 27,034 (762) Commercial mortgage -backed securities 0 — 0 — — — 0 — 0 Collateralized mortgage obligations 10 2,638 (45) 2 29 — 12 2,667 (45) Total debt securities available for sale 134 $95,923 $(1,750) 10 $7,801 $(97) 144 $103,724 $(1,847) The Company analyzed its investment portfolio in accordance with its OTTI review procedures and determined the Company did not need to record a credit-related OTTI loss, nor recognize a non credit-related OTTI loss in other comprehensive income for the years ended December 31, 2022, 2021, and 2020. The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities $2,517 $2,217 $3,213 Equity securities 52 194 220 Cash, cash equivalents, and short-term investments 776 2 138 Total investment income 3,345 2,413 3,571 Investment expenses (302) (445) (415) Net investment income $3,043 $1,968 $3,156 The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities: Gross realized gains $ 6 $ 63 $ 4,646 Gross realized losses (155) (6) (8) Total debt securities (149) 57 4,638 Equity securities: Gross realized gains 375 4,605 4,854 Gross realized losses (1,731) (1,784) (1,366) Total equity securities (1,356) 2,821 3,488 Total net realized investment gains $(1,505) $ 2,878 $ 8,126 Proceeds from the sales of available-for-sale securities were $32.0 million, $31.7 million and $101.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. The gross realized gains from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $5,000, $27,000, and $4.6 million, respectively. The gross realized losses from sales of available-for-sale securities for the years ended December 31, 2022, 2021, and 2020 were $155,000, $6,000, and $0, respectively. As of December 31, 2022, 2021, and 2020 there were $0, $1.0 million, and $1.7 million of payables from securities purchased, respectively. As of December 31, 2022, 2021, and 2020 there were $650,000, $523,000, and $809,000 of receivables from securities sold, respectively. The Company's gross unrealized losses related to its equity investments were $638,000, $1.0 million, and $0 as of December 31, 2022, 2021, and 2020, respectively. The Company had no gross unrealized gains related to its equity investments as of December 31, 2022 and 2021, respectively. The Company's gross unrealized gains related to its equity investments were $1.0 million as of December 31, 2020. The Company also carries other equity investments that do not have a readily determinable fair value and are recorded at cost, less impairment or observable changes in price. We review these investments for impairment during each reporting period. There was no impairment or observable changes in price recorded during 2022 related to the Company's equity securities without readily determinable fair value. These investments are a component of Other Assets in the Consolidated Balance Sheets. The value of these investments as of December 31, 2022 were $1.8 million. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2022. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,876 $ 4,770 Due after one year through five years 28,396 25,963 Due after five years through ten years 23,974 19,782 Amortized Cost Estimated Fair Value Due after ten years 11,421 8,358 Securities with contractual maturities 68,667 58,873 Asset-backed securities 21,742 20,496 Mortgage-backed securities 29,194 24,037 Commercial mortgage-backed securities 3,414 3,228 Collateralized mortgage obligations 4,102 3,567 Total debt securities $127,119 $110,201 At December 31, 2022 and 2021, the Insurance Companies Subsidiaries had an aggregate of $8.0 million and $8.5 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At December 31, 2022 and 2021, the Company had $95.7 million and $76.1 million held in trust accounts to meet collateral requirements with other third-party insurers, relating to various fronting arrangements. There are withdrawal and other restrictions on these deposits, including the type of investments that may be held, however, the Company may generally invest in high-grade bonds and short-term investments and earn interest on the funds. |
Fair Value Measurements (FY)
Fair Value Measurements (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | 3. Fair Value Measurements The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, and are disclosed at fair value in this note. All fair values disclosed in this note are determined on a recurring basis other than the debt which is a non-recurring fair value measure. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows: Level 1 - Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the Company’s best assumption of how market participants would price the assets or liabilities. Net Asset Value (NAV) - The fair values of investment company limited partnership investments and mutual funds are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 6,971 $ — $ 6,971 $ — State and local government 22,198 — 22,198 — Corporate debt 30,931 — 30,931 — Asset-backed securities 20,105 — 20,105 — Mortgage-backed securities 23,785 — 23,785 — Commercial mortgage-backed securities 3,288 — 3,288 — Collateralized mortgage obligations 3,355 — 3,355 — Total debt securities 110,633 — 110,633 — Equity Securities 965 208 757 — Short-term investments 28,055 28,055 — — Total marketable investments measured at fair value $139,653 $28,263 $ 111,390 $ — Investments measured at NAV: Investment in limited partnership 1,460 Total assets measured at fair value $ 141,113 Liabilities: Senior Unsecured Notes* $ 22,567 $ — $ 22,567 $ — Subordinated Notes* 11,685 — — 11,685 Total Liabilities (non-recurring fair value measure) $ 34,252 $ — $ 22,567 $11,685 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $— State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $— December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes* $ 22,430 $— $22,430 $ — Subordinated Notes* 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure) $ 33,730 $— $22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. The fair value measurements that were based on Level 1 inputs comprise 20% and 18% of the fair value of the total marketable investments measured at fair value as of March 31, 2023 and December 31, 2022, respectively. Level 2 investments include debt securities and equity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. The fair value of securities included in the Level 2 category were based on the market values obtained from a third-party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third-party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 80% and 82% of the fair value of the total marketable investments measured at fair value as of March 31, 2023 and December 31, 2022, respectively. The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, such as (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants. As of March 31, 2023 and December 31, 2022, the fair value of the subordinated debt reported at amortized cost was considered a Level 3 liability in the fair value hierarchy and is entirely comprised of the Company's Subordinated Notes. In determining the fair value of the Subordinated Notes outstanding at March 31, 2023 and December 31, 2021, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of the restated and amended agreement which was repriced at that time) were entered into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then entered back into the model along with the March 31, 2023 and December 31, 2022 U.S. Treasury rates, respectively. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. The Company's policy on recognizing transfers between hierarchies is applied at the end of each reporting period. There were no transfers in or out of Level 3 for the three months ended March 31, 2023, and 2022, respectively. | 5. Fair Value Measurements The Company’s financial instruments include assets carried at fair value, as well as debt carried at face value, net of unamortized debt issuance costs, and are disclosed at fair value in this note. All fair values disclosed in this note are determined on a recurring basis other than the debt which is a non-recurring fair value measure. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal most advantageous market for the asset or liability in an orderly transaction between market participants. In determining fair value, the Company applies the market approach, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices from sources independent of the reporting entity (“observable inputs”) and the lowest priority to prices determined by the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”). The fair value hierarchy is as follows: Level 1 —Valuations that are based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Valuations that are based on observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 —Unobservable inputs that are supported by little or no market activity. The unobservable inputs represent the Company’s best assumption of how market participants would price the assets or liabilities. Net Asset Value (NAV) —The fair values of investment company limited partnership investments and mutual funds are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $ — State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity Securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $ — Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes * $ 22,430 $ — $ 22,430 $ — Subordinated Notes * 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure $ 33,730 $ — $ 22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 20,720 $ — $ 20,720 $— State and local government 30,429 — 30,429 — Corporate debt 30,346 — 30,346 — Asset-backed securities 28,438 — 28,438 — Mortgage-backed securities 32,521 — 32,521 — Commercial mortgage-backed securities 1,690 — 1,690 — Collateralized mortgage obligations 5,639 — 5,639 — Total debt securities 149,783 — 149,783 — Equity Securities 9,437 9,154 283 — Short-term investments 23,013 23,013 — — Total marketable investments measured at fair value $182,233 $32,167 $150,066 $— Investments measured at NAV: Investment in limited partnership 494 Total assets measured at fair value $182,727 December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Liabilities: Senior Unsecured Notes * $24,118 $— $24,118 $ — Subordinated Notes * 11,704 — — 11,704 Total Liabilities measured at fair value $35,822 $— $24,118 $11,704 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet Level 1 investments consist of equity securities traded in an active exchange market. The Company uses unadjusted quoted prices for identical instruments to measure fair value. Level 1 also includes money market funds and other interest-bearing deposits at banks, which are reported as short-term investments. The fair value measurements that were based on Level 1 inputs comprise 18% of the fair value of the total marketable investments measured at fair value as of December 31, 2022. Level 2 investments include debt securities and equity securities, which consist of U.S. government agency securities, state and local municipal bonds (including those held as restricted securities), corporate debt securities, mortgage-backed and asset-backed securities. The fair value of securities included in the Level 2 category were based on the market values obtained from a third party pricing service that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other observable market information. The third party pricing service monitors market indicators, as well as industry and economic events. The fair value measurements that were based on Level 2 inputs comprise 82% of the fair value of the total marketable investments measured at fair value as of December 31, 2022. The Company obtains pricing for each security from independent pricing services, investment managers or consultants to assist in determining fair value for its Level 2 investments. To validate that these quoted prices are reasonable estimates of fair value, the Company performs various quantitative and qualitative procedures, such as (i) evaluation of the underlying methodologies, (ii) analysis of recent sales activity, (iii) analytical review of our fair values against current market prices and (iv) comparison of the pricing services’ fair value to other pricing services’ fair value for the same investment. No markets for the investments were determined to be inactive at period-ends. Based on these procedures, the Company did not adjust the prices or quotes provided from independent pricing services, investment managers or consultants. As of December 31, 2022 and 2021, the fair value of the subordinated debt reported at amortized cost was considered a Level 3 liability in the fair value hierarchy and is entirely comprised of the Company's Subordinated Notes. In determining the fair value of the Subordinated Notes outstanding at December 31, 2022 and 2021, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of the restated and amended agreement which was repriced at that time) were entered into a valuation model. A lognormal trinomial interest rate lattice was created within the model to compute the option adjusted spread (“OAS”) which is the amount, in basis points, of interest rate required to be paid under the debt agreement over the risk-free U.S. Treasury rates. The OAS was then entered back into the model along with the December 31, 2022 and 2021, U.S. Treasury rates, respectively. A new lattice was generated and the fair value was computed from the OAS. There were no changes in assumptions of credit risk from the issuance date. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Deferred Policy Acquisition Costs | 4. Deferred Policy Acquisition Costs The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the three months ended March 31, 2023 and 2022. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $10,290 $12,267 Deferred policy acquisition costs 2,757 3,321 Amortization of policy acquisition costs (4,721) (5,464) Net change (1,964) (2,143) Balance at end of period $ 8,326 $10,124 | 6. Deferred Policy Acquisition Costs The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the years December 31, 2022, 2021, and 2020. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 12,267 $ 12,243 $ 11,906 Deferred policy acquisition costs 20,202 28,475 26,442 Amortization of policy acquisition costs (22,179) (28,451) (26,105) Net change (1,977) 24 337 Balance at end of period $ 10,290 $ 12,267 $ 12,243 |
Unpaid Losses and Loss Adjust_2
Unpaid Losses and Loss Adjustment Expenses (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||
Unpaid Losses and Loss Adjustment Expenses | 5. Unpaid Losses and Loss Adjustment Expenses The Company establishes reserves for unpaid losses and loss adjustment expenses (“LAE”) which represent the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e., incurred but not yet reported losses; or “IBNR”) and LAE incurred that remain unpaid at the balance sheet date. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Reserves are estimates of unpaid portions of losses that have occurred, including IBNR losses; therefore, the establishment of appropriate reserves is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in reserve estimates, which may be material, are reported in the results of operations in the period such changes are determined to be needed and recorded. Management believes that the reserve for losses and LAE is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the consolidated financial statements based on available facts and in accordance with applicable laws and regulations. The table below provides the changes in the reserves for losses and LAE, net of reinsurance recoverables, for the periods indicated as follows (dollars in thousands): Three months ended March 31, 2023 2022 Gross reserves - beginning of period $165,539 $139,085 Less: reinsurance recoverables on unpaid losses (82,651) (40,344) Net reserves - beginning of period 82,888 98,741 Add: incurred losses and LAE, net of reinsurance: Current period 14,926 12,497 Prior period (1,213) 5,521 Total net incurred losses and LAE 13,713 18,018 Deduct: loss and LAE payments, net of reinsurance: Current period 1,987 2,512 Prior period 10,353 13,914 Total net loss and LAE payments 12,340 16,426 Net reserves - end of period 84,261 100,333 Plus: reinsurance recoverables on unpaid losses 61,101 40,605 Gross reserves - end of period $145,362 $140,938 Net losses and LAE were $13.7 million during the first quarter of 2023. The Company experienced favorable development of $1.2 million during the first quarter of 2023, of which $817,000 was related to the Company's commercial lines of business, and $396,000 was related to the personal lines of business. The majority of the favorable development occurred in the 2022 and 2021 accident years. For accident year 2022, the redundancy was due in part to less-than-expected commercial property loss emergence during the first quarter of 2023. For accident year 2021, the claim frequency of the quick service restaurant program was less than expected resulting in a reduction in the estimated ultimate loss. There was $1.8 million of adverse development relating to 2019 and prior accident years that was covered under the Loss Portfolio Transfer (“LPT”), resulting in no net development. As of March 31, 2023, the Company was $2.4 million into the $20.0 million adverse development cover provided by the LPT. Net losses and LAE were $18.0 million for the three months ended March 31, 2022. Adverse development contributed $5.5 million to the total incurred losses in the first quarter of 2022, of which $1.5 million was related to 2017 and prior accident years, $1.3 million was related to the 2018 accident year, $1.3 million was related to the 2019 accident year, and $1.5 million was related to the 2020 accident year. In the first quarter of 2022, $5.7 million of the adverse development came from the commercial lines of business, mostly from liability lines, while our personal lines of business had $219,000 favorable development. | 7. Unpaid Losses and Loss Adjustment Expenses The Company establishes reserves for unpaid losses and LAE which represent the estimated ultimate cost of all losses incurred that were both reported and unreported (i.e., incurred but not yet reported losses, or “IBNR”) and LAE incurred as well as a provision for estimated future costs related to claim settlement for all claims that remain unpaid at the balance sheet date. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Reserves are estimates of unpaid portions of losses that have occurred, including IBNR losses, therefore the establishment of appropriate reserves, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in the results of operations in the period such changes are determined to be needed and recorded. Management believes that the reserve for losses and LAE, any related estimates of reinsurance recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the consolidated financial statements based on available facts and in accordance with applicable laws and regulations. The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): December 31, 2022 2021 2020 Gross reserves - beginning of period $ 139,085 $ 111,270 $107,246 Less: reinsurance recoverables on unpaid losses 40,344 24,218 22,579 Net reserves - beginning of period 98,741 87,052 84,667 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 57,156 50,429 40,634 Prior period 24,284 19,432 15,594 Total net incurred losses and loss adjustment expenses 81,440 69,861 56,228 December 31, 2022 2021 2020 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 20,894 18,984 13,599 Prior period 76,399 39,188 40,244 Total net loss and loss adjustment expense payments 97,293 58,172 53,843 Net reserves - end of period 82,888 98,741 87,052 Plus: reinsurance recoverables on unpaid losses 82,651 40,344 24,218 Gross reserves - end of period $165,539 $139,085 $111,270 There was $24.3 million, $19.4 million, and $15.6 million of adverse development on prior accident year reserves in 2022, 2021 and 2020, respectively. There were no significant changes in the key methods utilized in the analysis and calculations of the Company’s reserves during 2022, 2021 or 2020. Of the $24.3 million of adverse development in 2022, $1.8 million was related to the 2021 accident year, $4.0 million was related to the 2020 accident year, $9.6 million was related to the 2019 accident year, $5.2 million was related to the 2018 accident year, and $3.7 million was related to 2017 and prior accident years. The adverse development was mostly related to the Company's commercial liability lines and was driven by multiple factors including significant social inflation generating higher severity than historical experience, and longer tail exposure than anticipated, particularly in certain jurisdictions. In 2021, the adverse development consisted of $18.5 million from commercial lines and $957,000 from personal lines. Of the $18.5 million of adverse development in commercial lines, the Company experienced $12.0 million and $6.5 million of adverse development in its hospitality and small business lines of business, respectively. The Company experienced $2.0 million of catastrophe losses, net of reinsurance recoverables, during the first quarter of 2021 from winter Storm Uri. In 2020, the adverse development consisted of $15.2 million from commercial lines and $352,000 from personal lines. Of the $15.2 million of adverse development in commercial lines, the Company experienced $12.0 million and $3.2 million of adverse development in its hospitality and small business lines of business, respectively. The $352,000 of adverse development in personal lines mostly was related to wind-exposed business. Loss Development Tables The following tables represent cumulative incurred loss and allocated loss adjustment expenses (“ALAE”), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2013 to 2022, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2022, by reportable segment and accident year (dollars in thousands). The tables do not include reinsurance recoverables from the LPT. Commercial Lines Accident Year Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 10,018 9,435 9,893 10,237 11,252 11,218 11,624 11,804 11,867 12,046 — 613 2014 19,709 19,907 22,711 26,367 28,145 28,766 29,045 29,175 29,011 — 1,754 2015 22,442 26,633 31,861 34,478 36,372 37,795 38,824 39,093 26 2,361 2016 32,396 34,935 40,440 44,355 46,089 46,993 48,677 201 3,557 2017 44,251 44,495 49,749 51,883 55,589 56,649 671 5,832 2018 42,624 42,432 49,741 55,261 60,102 1,637 6,124 2019 41,286 42,129 46,329 55,263 4,529 6,320 2020 33,867 35,328 39,193 3,787 3,830 2021 40,388 42,266 8,744 2,861 2022 41,708 16,067 1,965 Total $424,008 $35,662 F-48 Commercial lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 3,979 6,211 7,643 8,622 10,147 10,650 11,137 11,620 11,702 11,935 2014 8,715 13,977 17,458 22,446 25,609 27,544 28,389 28,648 28,608 2015 10,470 17,817 22,549 30,475 34,497 35,833 37,563 38,685 2016 10,255 19,135 27,785 37,967 41,945 43,644 46,957 2017 12,448 23,020 34,205 42,308 47,148 52,800 2018 10,375 19,799 31,633 41,577 50,508 2019 10,078 20,462 28,958 39,893 2020 10,217 17,332 24,225 2021 12,870 21,313 2022 12,839 Total $327,763 Net Unpaid losses and ALAE, years 2013 through 2022 $ 96,245 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid Losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 70,509 * Presented as unaudited required supplementary information. Personal Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 18,034 17,996 18,925 19,138 19,167 19,202 19,222 19,226 19,227 19,365 — 5,208 2014 17,951 17,471 17,735 17,880 17,929 18,082 18,095 18,097 18,052 — 3,737 2015 10,877 13,445 14,721 15,285 15,364 15,427 15,427 15,448 — 2,152 2016 11,619 13,418 14,949 15,550 15,655 15,634 15,679 — 1,814 2017 14,058 13,550 14,493 14,793 14,911 14,957 — 2,917 2018 5,893 6,378 6,283 6,382 6,298 — 803 2019 3,099 2,712 2,898 2,862 — 342 2020 2,339 2,590 2,636 — 366 2021 4,409 4,332 116 580 2022 9,404 1,427 652 Total $109,033 $1,543 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 9,955 15,883 18,052 18,600 19,014 19,174 19,214 19,222 19,227 19,365 2014 12,819 16,515 17,260 17,746 17,855 18,047 18,068 18,070 18,025 2015 7,771 11,873 13,844 15,159 15,250 15,290 15,416 15,444 2016 7,119 11,238 14,442 15,110 15,351 15,452 15,679 2017 8,320 12,944 14,004 14,526 14,866 14,957 2018 4,296 5,618 6,100 6,242 6,244 2019 2,119 2,604 2,692 2,850 2020 1,307 2,455 2,605 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2021 3,022 3,980 2022 5,397 Total $104,546 Net Unpaid losses and ALAE, years 2013 through 2022 $ 4,487 Unpaid losses and ALAE, prior to 2013 * — Unpaid losses and ALAE, net of reinsurance $ 4,487 * Presented as unaudited required supplementary information. Total Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 28,052 27,431 28,817 29,375 30,419 30,420 30,846 31,030 31,094 31,411 — 5,821 2014 37,660 37,378 40,446 44,247 46,074 46,848 47,140 47,272 47,063 — 5,491 2015 33,319 40,078 46,581 49,763 51,736 53,222 54,251 54,541 26 4,513 2016 44,015 48,353 55,389 59,905 61,744 62,627 64,356 201 5,371 2017 58,309 58,045 64,242 66,676 70,500 71,606 671 8,749 2018 48,517 48,810 56,024 61,643 66,400 1,637 6,927 2019 44,385 44,841 49,227 58,125 4,529 6,662 2020 36,206 37,918 41,829 3,787 4,196 2021 44,797 46,598 8,860 3,441 2022 51,112 17,494 2,617 Total 533,041 37,205 Total lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 13,934 22,094 25,695 27,223 29,162 29,824 30,351 30,842 30,929 31,300 2014 21,534 30,492 34,718 40,192 43,464 45,591 46,457 46,718 46,633 2015 18,241 29,690 36,393 45,634 49,747 51,123 52,979 54,129 2016 17,374 30,373 42,227 53,077 57,296 59,096 62,636 2017 20,768 35,964 48,209 56,834 62,014 67,757 2018 14,671 25,417 37,733 47,819 56,752 2019 12,197 23,066 31,650 42,743 2020 11,524 19,787 26,830 2021 15,892 25,293 2022 18,236 Total $432,309 Net Unpaid losses and ALAE, years 2013 through 2022 $100,732 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 74,996 * Presented as unaudited required supplementary information. The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2022, by reportable segment (dollars in thousands). December 31, 2022 Net unpaid losses claims and ALAE Commercial Lines $ 70,509 Personal Lines 4,487 Total unpaid losses and LAE, net of reinsurance 74,996 Reinsurance recoverable on losses and LAE Commercial Lines 81,301 Personal Lines 1,350 Total reinsurance recoverable on unpaid losses and LAE 82,651 ULAE expense 7,892 Total gross unpaid losses and LAE $165,539 Loss Duration Disclosure (unaudited) The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment. Average annual percentage payout of incurred losses by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10+ Commercial Lines 34.4% 23.0% 17.7% 10.0% 8.0% 3.6% 1.8% 0.8% 0.4% 0.3% Personal Lines 69.4% 16.6% 10.1% 2.6% 0.9% 0.2% 0.1% 0.1% 0.0% 0.0% Total Lines 35.7% 22.8% 17.5% 9.7% 7.7% 3.5% 1.7% 0.8% 0.4% 0.2% |
Reinsurance (FY)
Reinsurance (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Reinsurance | 6. Reinsurance In the normal course of business, the Company participates in reinsurance agreements in order to limit losses that may arise from catastrophes or other individually severe events. The Company ceded primarily all specific commercial liability risks in excess of $400,000 in 2023, and $340,000 in 2022. The Company ceded specific commercial property risks in excess of $400,000 in 2023, and $300,000 in 2022. The Company ceded homeowners specific risks in excess of $300,000 in both 2023 and 2022. A “treaty” is a reinsurance agreement in which coverage is provided for a class of risks and does not require policy by policy underwriting of the reinsurer. “Facultative” reinsurance is where a reinsurer negotiates an individual reinsurance agreement for every policy it will reinsure on a policy by policy basis. A loss is covered under a reinsurance contract if the loss occurs within the effective dates of the agreement notwithstanding when the loss is reported. Reinsurance does not discharge the direct insurer from liability to its policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. To date, the Company has not experienced any significant difficulties in collecting reinsurance recoverables. The Company assumes written premiums under a few fronting arrangements. The fronting arrangements are with unaffiliated insurers who write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s current rating, where the policies are written in a state where the Company is not licensed or for other strategic reasons. On November 1, 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement with Fleming Reinsurance Ltd (“Fleming Re”). Under the agreement, Fleming Re will cover an aggregate limit of $66.3 million of paid losses on $40.8 million of stated net reserves as of June 30, 2022, relating to accident years 2019 and prior. This covers substantially all of the commercial liability lines underwritten by the Company. Within the aggregate limit, there is a $5.5 million loss corridor in which the Company retains losses in excess of $40.8 million. Fleming Re is then responsible to cover paid losses in excess of $46.3 million up to $66.3 million. Accordingly, there is $20.0 million of adverse development cover for accident years 2019 and prior. Under the agreement, Fleming Re was compensated with $40.8 million for stated net reserves as of June 30, 2022, plus a one-time risk fee of $5.4 million. Recoverables due to the Company under this agreement are recorded as reinsurance recoverables. The agreement is between CIC and WPIC and Fleming Re. As of March 31, 2023, the Company has recorded losses through the $5.5 million corridor and $2.4 million into the $20.0 million layer. As of December 31, 2022, the Company recorded losses through the $5.5 million corridor and $644,000 into the $20.0 million layer. As of March 31, 2023, the Consolidated Balance Sheet included $3.0 million of reinsurance recoverables on paid losses related to the LPT, and $22.0 million of reinsurance recoverables on unpaid losses related to the LPT. As of December 31, 2022, the Consolidated Balance Sheet included $3.8 million of reinsurance recoverables on paid losses related to the LPT, and $25.9 million of reinsurance recoverables on unpaid losses related to the LPT. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands): Three Months Ended March 31, 2023 2022 Written premiums: Direct $ 24,341 $ 24,796 Assumed 11,873 8,168 Ceded (17,872) (14,943) Net written premiums $ 18,342 $ 18,021 Earned premiums: Direct $ 23,315 $ 24,123 Assumed 10,979 8,641 Ceded (12,342) (8,809) Net earned premiums $ 21,952 $ 23,955 Losses and LAE: Direct $ 1,969 $ 13,066 Assumed 1,497 7,408 Ceded 10,247 (2,456) Net Losses and LAE $ 13,713 $ 18,018 | 8. Reinsurance In the normal course of business, the Company participates in reinsurance agreements in order to limit losses that may arise from catastrophes or other individually severe events. The Company primarily ceded all specific loss commercial liability risks in excess of $340,000 in 2022, and $400,000 in 2021 and 2020. The Company ceded specific loss commercial property risks in excess of $300,000 in 2022 and $200,000 in 2021. The Company ceded 40% of specific loss commercial property risks in excess of $400,000 and 60% in excess of $300,000 in 2020. The Company ceded homeowners specific risks in excess of $300,000 in 2022, 2021, and 2020. A “treaty” is a reinsurance agreement in which coverage is provided for a class of risks and does not require policy by policy underwriting of the reinsurer. “Facultative” reinsurance is where a reinsurer negotiates an individual reinsurance agreement for every policy it will reinsure on a policy-by-policy basis. A loss is covered under a reinsurance contract if the loss occurs within the effective dates of the agreement notwithstanding when the loss is reported. The Company entered into new specific loss reinsurance treaties on December 31, 2021 and January 1, 2022 which included a 40% ceding commission. The reinsurance premiums related to these treaties increased by the same amount as the ceding commission. Reinsurance does not discharge the Company, as the direct insurer, from liability to its policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors the concentration of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. To date, the Company has not experienced any significant difficulties in collecting reinsurance recoverables. The Company's current reinsurance structure includes the following primary categories: Casualty Clash • Clash coverage is a type of reinsurance that provides additional coverage in the event that one casualty loss event results in two or more claims and recovery under the reinsurance treaties may otherwise be limited due to the amount, type or number of claims. Clash reinsurance further protects the balance sheet as it reduces the potential maximum loss on either a single risk or a large number of risks. • Effective January 1, 2022 through December 31, 2022, the company was party to a workers’ compensation and casualty clash reinsurance treaty with a limit of $29.0 million in excess of $1.0 million. • Effective January 1, 2019 through December 31, 2021, the Company was party to a workers' compensation and casualty clash reinsurance treaty with a limit of $19.0 million in excess of a $1.0 million retention. Effective January 1, 2021 through December 31, 2021, the Company ceded 87.0% of its casualty clash risks with a limit of $10.0 million in excess of a $20.0 million retention. Facultative • The Company was party to a facultative reinsurance agreement with a large reinsurer for commercial auto physical damage risks primarily in excess of $400,000. • The Company was party to a facultative reinsurance agreement with a large reinsurer for property risks with total insured values above the other reinsurance treaty limits. Liability • Effective January 1, 2019 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for commercial liability coverage with a limit of $600,000 in excess of $400,000. Property • Effective January 1, 2020 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for personal property coverage with a limit of $1.7 million in excess of $300,000, for homeowners' and dwelling fire business. • Effective January 1, 2022 through December 31, 2022, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.7 million in excess of $300,000. • Effective January 1, 2021 through December 31, 2021, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.8 million in excess of $200,000. • Effective January 1, 2020 through December 31, 2020, the Company was party to an excess of loss reinsurance treaty for commercial property coverage with a limit of $7.7 million in excess of $300,000. • At December 31, 2022, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminates on June 1, 2023. • At December 31, 2021, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminates on June 1, 2022. • At December 31, 2020, the Company was covered for property catastrophe losses up to $28.0 million in excess of a $2.0 million retention for the first event. This treaty terminated on June 1, 2021. Multiple Line • Effective January 1, 2019 through December 31, 2021, the Company was party to a multi-line excess of loss treaty that covers commercial property and casualty losses up to $600,000 in excess of a $400,000 retention. Quota Share • The Company cedes 90% to 100% of its commercial umbrella coverages under quota share treaties. Under a quota share agreement, the reinsurer pays a percentage of all losses the insurer sustains in return for a similar percent of the premiums written on that risk. A ceding commission is paid by the reinsurer to the insurer to cover acquisition and operating expenses. Loss Portfolio Transfe r • On November 1, 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement with Fleming Reinsurance Ltd (“Fleming Re”). Under the agreement, Fleming Re will cover an aggregate limit of $66.3 million of paid losses on $40.8 million of stated net reserves as of June 30, 2022, relating to accident years 2019 and prior. This covers substantially all of the commercial liability lines underwritten by the Company. Within the aggregate limit, there is a $5.5 million loss corridor in which the Company retains losses in excess of $40.8 million. Fleming Re is then responsible to cover paid losses in excess of $46.3 million up to $66.3 million. Accordingly, there is $20.0 million of adverse development cover for accident years 2019 and prior. Under the agreement, Fleming Re was compensated with $40.8 million for stated net reserves as of June 30, 2022, plus a one-time risk fee of $5.4 million. Recoverables due to the Company under this agreement are recorded as reinsurance recoverables. The agreement is between CIC and WPIC and Fleming Re. As of December 31, 2022, the Company has recorded losses through the $5.5 million corridor and $644,000 into the $20.0 million layer. As of December 31, 2022, the Consolidated Balance Sheet included $3.8 million of reinsurance recoverables on paid losses related to the LPT, and $25.9 million of reinsurance recoverables on unpaid losses related to the LPT. Equipment Breakdown, Employment Practice Liability, and Data Compromise and Identity Recovery • The Company ceded 100% of a small number of equipment breakdown, employment practices liability, and data compromise coverages that are occasionally bundled with other products under a quota share agreement with a reinsurer. The Company assumes written premiums under a few fronting arrangements. The fronting arrangements are with unaffiliated insurers who write on behalf of the Company in markets that require a higher A.M. Best rating than the Company’s rating, or where the policies are written in a state where the Company is not licensed or for other strategic reasons. The Company assumed $42.2 million, $34.3 million, and $28.9 million of written premiums under the insurance fronting arrangements for the years ended December 31, 2022, 2021 and 2020, respectively. The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). In 2022, ceded written and earned premium amounts included $1.6 million of reinsurance reinstatement costs relating to Hurricane Ian. In 2021, ceded written and earned amounts included $340,000 of reinsurance reinstatement costs relating to Winter Storm Uri. In 2021 and 2020, the ceded written and earned premium amounts include $86,000 and $195,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2022 2021 2020 Written premiums: Direct $ 95,832 $ 97,801 $ 82,430 Assumed 42,187 34,294 28,905 Ceded (46,787) (30,666) (18,395) Net written premiums $ 91,232 $101,429 $ 92,940 Earned premiums: Direct $ 97,843 $ 91,943 $ 75,130 Assumed 37,558 31,107 31,484 Ceded (38,690) (24,248) (17,511) Net earned premiums $ 96,711 $ 98,802 $ 89,103 Loss and loss adjustment expenses: Direct $ 73,000 $ 71,021 $ 48,780 Assumed 43,487 25,740 24,429 Ceded (35,047) (26,900) (16,981) Net loss and LAE $ 81,440 $ 69,861 $ 56,228 |
Debt (FY)
Debt (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Debt | 7. Debt As of March 31, 2023, the Company's debt is comprised of two instruments: $24.3 million of publicly traded senior unsecured notes (the “Notes”) which were issued in 2018 and $10.5 million of privately placed subordinated notes (the “Subordinated Notes”). A summary of the Company's outstanding debt is as follows (dollars in thousands): March 31, 2023 December 31, 2022 Senior unsecured notes $24,251 $24,186 Subordinated notes 9,703 9,690 Total $33,954 $33,876 Senior unsecured notes The Company issued $25.3 million of public senior unsecured notes (the “Notes”) in 2018. The Notes bear an interest rate of 6.75% per annum, payable quarterly at the end of March, June, September and December and mature on September 30, 2023. The Company may redeem the Notes, in whole or in part, at face value at any time after September 30, 2021. Management plans to issue new public debt or sell assets to provide sufficient cash flow to pay off the senior unsecured notes that are coming due within the next twelve months. Management believes it is probable that it will be able to issue new public debt and/or sell assets as necessary to repay the senior unsecured notes by September 30, 2023. The Company did not repurchase any of the Notes for the three months ended March 31, 2023 and 2022. Subordinated notes The Company also has outstanding $10.5 million of Subordinated Notes maturing on September 30, 2038. The Subordinated Notes bear an interest rate of 7.5% per annum until September 30, 2023, and 12.5% thereafter, and allow for four quarterly interest payment deferrals. Interest is payable quarterly at the end of March, June, September and December. Beginning September 30, 2021, the Company may redeem the Subordinated Notes, in whole or in part, for a call premium of $1.1 million. The call premium escalates each quarter to ultimately $1.75 million on September 30, 2023, then steps up to $3.05 million on December 31, 2023, and increases quarterly at a 12.5% per annum rate thereafter. As of March 31, 2023, the carrying value of the Notes and Subordinated Notes are offset by $130,000 and $797,000 of debt issuance costs, respectively. The debt issuance costs are being amortized through interest expense over the life of the loans. The Subordinated Notes contain various restrictive financial debt covenants that relate to the Company’s minimum tangible net worth, minimum fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. As of March 31, 2023, the Company was in compliance with all of its financial covenants. Line of credit The Company maintained a $10.0 million line of credit with a national bank (the “Lender”) during 2022. The line of credit carried an interest rate at LIBOR plus 2.75% per annum, payable monthly. The line of credit agreement matured on December 1, 2022, and was not renewed. | 9. Debt As of December 31, 2022, the Company’s debt is comprised of two instruments: $24.4 million of publicly traded senior unsecured notes which were issued in 2018 and $10.5 million of privately placed Subordinated Notes. A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2022 2021 Senior unsecured notes $24,186 $23,926 Subordinated notes 9,690 9,638 Total $33,876 $33,564 Senior unsecured notes The Company issued $25.3 million of Notes in 2018. The Notes bear an interest rate of 6.75% per annum, payable quarterly at the end of March, June, September and December and mature on September 30, 2023. The Company may redeem the Notes, in whole or in part, at face value at any time after September 30, 2021. The Company did not repurchase any of the Notes during 2022 or 2021. Management plans to issue new public debt or sell assets to provide sufficient cash flow to pay off the senior unsecured notes that are coming due within the next twelve months. Management believes it is probable that it will be able to issue new public debt and/or sell assets as necessary to repay the senior unsecured notes by September 30, 2023. Subordinated Notes The Company also has outstanding $10.5 million of Subordinated Notes maturing on September 30, 2038. The Subordinated Notes bear an interest rate of 7.5% per annum until September 30, 2023, and 12.5% thereafter, and allow for four quarterly interest payment deferrals. Interest is payable quarterly at the end of March, June, September and December. Beginning September 30, 2021, the Company may redeem the Subordinated Notes, in whole or in part, for a call premium of $1.1 million. The call premium escalates each quarter to ultimately $1.75 million on September 30, 2023, then steps up to $3.05 million on December 31, 2023, and increases quarterly at a 12.5% per annum rate thereafter. As of December 31, 2022, the carrying value of the Notes and Subordinated Notes are offset by $195,000 and $810,000 of debt issuance costs, respectively. The debt issuance costs are amortized through interest expense over the life of the loans. The Subordinated Notes contain various restrictive financial debt covenants that relate to the Company’s minimum tangible net worth, minimum fixed-charge coverage ratios, dividend paying capacity, reinsurance retentions, and risk-based capital ratios. As of December 31, 2022, the Company was in compliance with all of its financial covenants. Line of credit The Company maintained a $10.0 million line of credit with a national bank (the “Lender”) during 2022. The line of credit carried an interest rate at LIBOR plus 2.75% per annum, payable monthly. The line of credit agreement matured on December 1, 2022, and was not renewed. Paycheck Protection Program loan On April 24, 2020, the Company received a $2.7 million loan from the line of credit Lender pursuant to the Paycheck Protection Program of the CARES Act administered by the U.S. Small Business Administration (“SBA”). The Company received notice from the SBA that the loan was 100% forgiven, including accrued interest, on |
Income Taxes (FY)
Income Taxes (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes At December 31, 2022, the Company had current income tax receivable of $58,000 included in other assets in the consolidated balance sheets. At December 31, 2021, the Company had current income tax payable of $34,000 included in other assets in the consolidated balance sheets. The income tax expense (benefit) is comprised of the following (dollars in thousands): Year Ended December 31, 2022 2021 2020 Current tax expense (benefit) $ (45) $208 $ 6 Deferred tax expense (benefit) (9,396) — — Total income tax expense (benefit) $(9,441) $208 $ 6 The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2022, 2021 and 2020 to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2022 2021 2020 Income (loss) before income taxes $(20,490) $(1,710) $(238) Statutory U.S. federal income tax rate (4,303) (359) (50) State income taxes, net of federal benefit (5,984) 174 44 Tax-exempt investment income and dividend received deduction (22) (40) (50) Nondeductible meals and entertainment 79 33 23 Valuation allowance on deferred tax assets 3,715 676 (205) Equity-earnings from Affiliate 195 170 88 Net gain from sale of agency assets (2,848) — — Utilization of state NOLs (386) — — PPP Loan forgiveness — (578) — Other 113 132 156 Income tax expense (benefit) $ (9,441) $ 208 $ 6 Effective tax rate 46.1% (12.2)% (2.6)% The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands): December 31, 2022 2021 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 1,217 $ 1,555 Unearned premiums 2,324 2,561 Net operating loss carryforwards 12,152 12,544 Net unrealized losses on investments 3,687 418 State net operating loss carryforwards 5,097 822 Other 403 102 Gross deferred tax assets 24,880 18,002 Less valuation allowance (21,663) (14,594) Total deferred tax assets, net of allowance 3,217 3,408 Deferred tax liabilities: Investment basis difference 23 15 Tax rate change transition discounting 137 183 Equity investment in Affiliate 691 470 Net unrealized gains on investments — — Deferred policy acquisition costs 2,161 2,576 Intangible assets 115 115 Property and equipment 41 47 Other 49 2 Total deferred tax liabilities 3,217 3,408 Net deferred tax liability $ — $ — The net deferred tax liability is recorded in accounts payable and accrued expenses in the consolidated balance sheets. As of December 31, 2022, the Company has NOL carryforwards for federal income tax purposes of $65.6 million, of which $50.4 million expire in tax years 2030 through 2042 and $15.2 million never expire. Of this amount, $7.6 million are limited in the amount that can be utilized in any one year and may expire before they are realized under Section 382 of the Internal Revenue Code. The Company has state net operating loss carryforwards of $107.2 million, which expire in tax years 2023 through 2042. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets under the guidance of ASC 740. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2022. Such objective evidence limits the Company's ability to consider other subjective evidence, such as management's projections for future growth. Based on its evaluation, the Company has recorded a valuation allowance of $21.7 million and $14.6 million at December 31, 2022 and 2021, respectively, to reduce the deferred tax assets to an amount that is more likely than not to be realized based on the provisions in ASC 740. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or if objective negative evidence in the form of cumulative losses is no longer present, and additional weight may be given to subjective evidence, such as the Company’s projections for growth. The Company files consolidated federal income tax returns. For the years before 2019, the Company is no longer subject to U.S. federal examinations; however, the Internal Revenue Service has the ability to review years prior to 2019 to the extent the Company utilized tax attributes carried forward from those prior years. The statute of limitations on state filings is generally three |
Statutory Financial Data, Risk-
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions | 11. Statutory Financial Data, Risk-Based Capital and Dividend Restrictions U.S. state insurance laws and regulations prescribe accounting practices for determining statutory net income and capital and surplus for insurance companies. In addition, state regulators may permit statutory accounting practices that differ from prescribed practices. Statutory accounting practices prescribed or permitted by regulatory authorities for the Company’s Insurance Company Subsidiaries differ from GAAP. The principal differences between statutory accounting practices (“SAP”) and GAAP as they relate to the financial statements of the Company’s Insurance Company Subsidiaries are (i) policy acquisition costs are expensed as incurred under SAP, whereas they are deferred and amortized under GAAP, (ii) deferred tax assets are subject to more limitations regarding what amounts can be recorded under SAP and (iii) bonds are recorded at amortized cost under SAP and fair value under GAAP. Risk-Based Capital (“RBC”) requirements as promulgated by the National Association of Insurance Commissioners (“NAIC”) require property and casualty insurers to maintain minimum capitalization levels determined based on formulas incorporating various business risks (e.g., investment risk, underwriting profitability, etc.) of the Insurance Company Subsidiaries. As of December 31, 2022, 2021 and 2020, the Insurance Company Subsidiaries’ adjusted capital and surplus exceeded their authorized control level as determined by the NAIC’s risk-based capital models. Summarized 2022, 2021 and 2020 statutory basis information for the non-captive Insurance Company Subsidiaries, which differs from generally accepted accounting principles, is as follows (dollars in thousands). CIC WPIC 2022 Statutory capital and surplus $47,827 $20,651 RBC authorized control level 15,541 5,098 Statutory net income (loss) (6,846) (4,171) RBC % 308% 405% CIC WPIC 2021 Statutory capital and surplus $50,194 $23,603 RBC authorized control level 15,868 5,331 Statutory net income (loss) (9,161) (614) RBC % 316% 443% CIC WPIC 2020 Statutory capital and surplus $49,271 $24,723 RBC authorized control level 14,221 4,547 Statutory net income (loss) 2,059 1,024 RBC % 346% 544% Dividend Restrictions The state insurance statutes in which the Insurance Company Subsidiaries are domiciled limit the amount of dividends that they may pay annually without first obtaining regulatory approval. Generally, the limitations are based on the greater of statutory net income for the preceding year or 10% of statutory surplus at the end of the preceding year. The Insurance Company Subsidiaries must receive regulatory approval in order to pay dividends to the Parent Company from its Insurance Company Subsidiaries. |
Shareholders' Equity (FY)
Shareholders' Equity (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Stockholders Equity Note [Abstract] | ||
Shareholder's Equity | 8. Shareholder’s Equity On August 10, 2022, the Company issued $5.0 million of equity through a private placement for 2,500,000 shares priced at $2.00 per share. The participants in the private placement consisted of members of the Company's Board of Directors. The Company used the proceeds for growth capital in the Company's specialty core business segments. As of March 31, 2023 and December 31, 2022, the Company had 12,215,849 issued and outstanding shares of common stock, respectively. Holders of common stock are entitled to one vote per share and to receive dividends only when and if declared by the board of directors. The holders have no preemptive, conversion or subscription rights. | 12. Shareholders’ Equity Common Stock On August 10, 2022, the Company issued $5.0 million of common equity through a private placement of 2,500,000 shares priced at $2.00 per share. The participants in the private placement consisted of members of the Company's Board of Directors. The Company used the proceeds for growth capital in the Company's specialty core business segments. For the year ended December 31, 2022, the Company repurchased 1,968 shares of stock valued at approximately $4,000 related to the vesting of the Company’s restricted stock units. The Company's additional paid-in capital relating to the Company's stock repurchases was $10,000 for the year ended December 31, 2022. The capital increase was due to a $14,000 adjustment for cash returned related to the Company's stock repurchase program. For the year ended December 31, 2021, the Company repurchased 3,886 shares of stock valued at approximately $12,000 related to the vesting of the Company’s restricted stock units. Upon the repurchase of the Company’s shares, the shares remain authorized, but not issued or outstanding. As of December 31, 2022 and 2021, the Company had 12,215,849 and 9,707,817 issued and outstanding shares of common stock, respectively. Holders of common stock are entitled to one vote per share and to receive dividends only when and if declared by the board of directors. The holders have no preemptive, conversion or subscription rights. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Three months ended March 31, 2023 2022 Balance at beginning of period $(18,203) $(2,110) Other comprehensive income (loss) before reclassifications, net of tax 2,286 (7,287) Less: amounts reclassified from accumulated other comprehensive income (loss), net of tax — — Net other comprehensive income (loss) 2,286 (7,287) Balance at end of period $(15,917) $(9,397) | 13. Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Year Ended December 31, 2022 2021 Balance at beginning of period $ (2,110) $ 912 Other comprehensive income (loss) before reclassifications (16,024) (2,937) Less: amounts reclassified from accumulated other comprehensive income (loss) 69 85 Net current period other comprehensive income (loss) (16,093) (3,022) Balance at end of period $(18,203) $(2,110) |
Earnings Per Share (FY)
Earnings Per Share (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Earnings Per Share | 10. Earnings Per Share Basic and diluted earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except per share and share amounts): Three Months Ended March 31, 2023 2022 Net income (loss) $ 1,001 $ (2,870) Weighted average common shares, basic and diluted* 12,215,849 9,707,817 Earnings (loss) per common share, basic and diluted $ 0.08 $ (0.30) * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. | 14. Earnings Per Share Basic and diluted earnings (loss) per share are computed by dividing net income by the weighted average number of common shares outstanding during the period. The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net income (loss) $ (10,681) $ (1,094) $ 595 Weighted average common shares, basic and diluted* 10,692,090 9,691,998 9,625,059 Earnings (loss) per share, basic and diluted ( 1.00 $ (0.11) $ 0.06 * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of December 31, 2022, 2021, and 2020. Therefore, the non-vested shares are excluded from earnings (loss) per share for the years ended December 31, 2022, 2021, and 2020. |
Stock-based Compensation (FY)
Stock-based Compensation (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock-based Compensation | 11. Stock-based Compensation On March 8, 2022, the Company issued options to purchase 630,000 shares of the Company’s common stock to two named executive officers. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $4.53 per share and will expire on March 8, 2032. The estimated value of these options is $612,000, which is being expensed ratably over the vesting period. A Black Scholes model was used to determine the fair value of the options at the time the options were issued, using the Company’s historical 5-year market price of its stock to determine volatility (equating to 65.04%), an estimated 5-year term to exercise the options, a 5-year risk-free rate of return of 1.8%, and the market price for the Company’s stock of $2.40 per share. On June 30, 2020, the Company issued options to purchase 280,000 shares of the Company’s common stock, to certain executive officers and other employees. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $3.81 per share and expire on June 30, 2030. The estimated value of these options is $290,000, which is being expensed ratably over the vesting period. In 2016 and 2018, the Company issued 111,281 and 70,000, respectively, of restricted stock units (“RSUs”) to various employees to be settled in shares of common stock, which were valued at $909,000 and $404,000, respectively, on the dates of grant. The Company recorded $12,000 and $14,000 of compensation expense related to the RSUs for the three months ended March 31, 2023 and 2022, respectively. There were 9,000 unvested RSUs as of March 31, 2023, which will generate an estimated future expense of $4,000. The Company recorded $43,000 and $24,000 of compensation expense related to the stock options for the three months ended March 31, 2023 and 2022, respectively. There were 654,000 unvested options as of March 31, 2023, which will generate an estimated future expense of $595,000 through February of 2027. | 15. Stock-based Compensation On March 8, 2022 the Company issued options to purchase 630,000 shares of the Company's common stock to two named executive officers. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $4.53 per share and will expire on March 8, 2032. The estimated fair value of these options is $612,000, which is being expensed ratably over the vesting period. A Black Scholes model was used to determine the fair value of the options at the time the options were issued, using the Company’s historical 5-year market price of its stock to determine volatility (equating to 65.04%), an estimated 5-year term to exercise the options, a 5-year risk-free rate of return of 1.8%, and the market price for the Company’s stock of $2.40 per share. On June 30, 2020, the Company issued options to purchase 280,000 shares of the Company’s common stock to certain executive officers and other employees. The right to exercise the options will vest over a five-year period on a straight-line basis. The options have a strike price of $3.81 per share and expire on June 30, 2030. The estimated value of these options is $290,000, which will be expensed ratably over the vesting period. In 2016 and 2018, the Company issued 111,281 and 70,000, respectively, of restricted stock units (“RSUs”) to various employees to be settled in shares of common stock, which were valued at $909,000, and $404,000, respectively, on the dates of grant. The Company recorded $56,000, $166,000, and $677,000 of compensation expense related to the RSUs for the years ended December 31, 2022, 2021, and 2020, respectively. There were 9,000 unvested RSUs as of December 31, 2022, which will generate an estimated future expense of $17,000. The Company recorded $53,000, $52,000, and $29,000 of compensation expense for the year ended December 31, 2022, 2021, and 2020, respectively, related to the stock options granted on June 30, 2020. There were 153,000 options outstanding and unvested as of December 31, 2022, which will generate an estimated future expense of $132,000. The Company recorded $102,000 of compensation expense for the year ended December 31, 2022, related to the stock options granted on March 8, 2022. There were 630,000 options outstanding and unvested as of December 31, 2022, which will generate an estimated future expense of $510,000. |
Related Party Transactions (FY)
Related Party Transactions (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions The Company employs Nicholas J. Petcoff as its Co-Chief Executive Officer and a Director of the Company's Board of Directors. The Company employed Andrew D. Petcoff as its Senior Vice President of Personal Lines and as President of Sycamore, until June 30, 2021. The Company’s employment of Andrew D. Petcoff ended as the result of the Venture Transaction. See Note 3 ~ Sale of Certain Agency Business VSRM Transaction Nicholas J. Petcoff has been employed with the Company since 2009. Andrew D. Petcoff had formerly been employed with the Company since 2009. They are the sons of the Company's Executive Chairman and Co-Chief Executive Officer, James G. Petcoff. The Company employed B. Matthew Petcoff as Vice President of Sycamore until June 30, 2021. B. Matthew Petcoff is the brother of the Executive Chairman and Co-Chief Executive Officer, James G. Petcoff. The Company also employed Hilary Petcoff as its Vice President of Enterprise Risk Management until June 30, 2021. Ms. Petcoff is the daughter of the Company’s Executive Chairman and Co-Chief Executive Officer, James G. Petcoff. As a result of the transaction in Note 2 ~ VSRM Transaction In October 2022, the Company acquired control over Venture (a previous equity method investee) for total consideration of $9.7 million as further described in Note 2 ~ VRSM Transaction. See Note 12 ~ Shareholders' Equity |
Employee Benefit Plans (FY)
Employee Benefit Plans (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 17. Employee Benefit Plans The Company maintains a retirement savings plan under section 401(k) of the Internal Revenue Code (the “Plan”) for certain eligible employees. Eligible employees electing to participate in the 401(k) plan may defer and contribute from 1% to 100% of their compensation on a pre-tax or post-tax basis, subject to statutory limits. The Company will match the employees’ contributions up to the first 4% of their compensation. The Company’s Plan expense amounted to $457,000, $508,000 and $508,000 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Commitments and Contingencies_2
Commitments and Contingencies (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 12. Commitments and Contingencies Legal proceedings The Company and its subsidiaries are subject at times to various claims, lawsuits and proceedings relating principally to alleged errors or omissions in the placement of insurance, claims administration, and other business transactions arising in the ordinary course of business. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Most of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the insurance policy at issue. We account for such activity through the establishment of unpaid losses and LAE reserves. In accordance with accounting guidance, if it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss is reasonably estimable; then an accrual for the costs to resolve these claims is recorded by the Company in the accompanying consolidated financial statements. Periodic expenses related to the defense of such claims are included in the accompanying consolidated statements of operations. On the basis of current information, the Company does not believe that there is a reasonable possibility that any material loss exceeding amounts already accrued, if any, will result from any of the claims, lawsuits and proceedings to which the Company is subject to, either individually or in the aggregate. | 18. Commitments and Contingencies Legal proceedings The Company and its subsidiaries are subject at times to various claims, lawsuits and proceedings relating principally to alleged errors or omissions in the placement of insurance, claims administration, and other business transactions arising in the ordinary course of business. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Most of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the insurance policy at issue. We account for such activity through the establishment of unpaid losses and LAE reserves. In accordance with accounting guidance, if it is probable that a liability has been incurred as of the date of the financial statements and the amount of loss is reasonably estimable; then an accrual for the costs to resolve these claims is recorded by the Company in the accompanying consolidated balance sheets. Periodic expenses related to the defense of such claims are included in the accompanying consolidated statements of operations. On the basis of current information, the Company does not believe that there is a reasonable possibility that any material loss exceeding amounts already accrued, if any, will result from any of the claims, lawsuits and proceedings to which the Company is subject to, either individually, or in the aggregate. Commitments The Company is party to an agreement with an unaffiliated company to provide a policy administration, billing, and claims system for the Company. The scope of work and fee structure has changed over time. Currently, the agreement requires a minimum monthly payment of $30,000 with a fee schedule that is scalable with the premium volume, and expires on November 1, 2026. |
Segment Information (FY)
Segment Information (FY) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting [Abstract] | ||
Segment Information | 13. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company views the commercial and personal lines segments as underwriting business (business that takes on insurance underwriting risk). The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. The wholesale agency business increases the product options to the Company’s independent retail agents by offering both insurance products from the Insurance Company Subsidiaries as well as products offered by other insurers. The Company defines its operating segments as components of the business where separate financial information is available and used by the co-chief operating decision makers in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s co-chief operating decision makers, the Co-Chief Executive Officers, review a number of financial measures including gross written premiums, net earned premiums, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for personnel, policy issuance and claims systems, rent and utilities. The Company markets, distributes and sells its insurance products through its own insurance agencies and a network of independent agents. All of the Company’s insurance activities are conducted in the United States with a concentration of activity in Michigan, Texas, Oklahoma and California. For the three months ended March 31, 2023 and 2022, gross written premiums attributable to these four states were 56.2% and 55.7%, respectively, of the Company’s total gross written premiums. The Wholesale Agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the Wholesale Agency business and are eliminated in the Eliminations category. In addition to the reportable operating segments, the Company maintains a Corporate category to reconcile segment results to the consolidated totals. The Corporate category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team and finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable operating segment (dollars in thousands): Three months ended March 31, 2023 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,975 $7,239 $36,214 $ — $ — $ — $36,214 Net written premiums $12,241 $6,101 $18,342 $ — $ — $ — $18,342 Net earned premiums $17,123 $4,829 $21,952 $ — $ — $ — $21,952 Other income 52 23 75 879 72 (400) 626 Segment revenue 17,175 4,852 22,027 879 72 (400) 22,578 Losses and LAE, net 10,547 3,166 13,713 — — — 13,713 Policy acquisition costs 3,196 1,389 4,585 548 — (412) 4,721 Operating expenses 3,028 592 3,620 352 307 — 4,279 Segment expenses 16,771 5,147 21,918 900 307 (412) 22,713 Segment gain (loss) $ 404 $ (295) $ 109 $ (21) $ (235) $ 12 $ (135) Investment income 1,307 1,307 Net realized investment gains (losses) — — Change in fair value of equity securities 694 694 Other gains (losses) — — Interest expense (686) (686) Income (loss) before equity earnings in Affiliate and income taxes $ 404 $ (295) $ 109 $ (21) $1,080 $ 12 $ 1,180 Three months ended March 31, 2022 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,586 $4,378 $32,964 $ — $ — $ — $32,964 Net written premiums $14,340 $3,681 $18,021 $ — $ — $ — $18,021 Net earned premiums $20,524 $3,431 $23,955 $ — $ — $ — $23,955 Other income 71 6 77 1,112 147 (638) 698 Segment revenue 20,595 3,437 24,032 1,112 147 (638) 24,653 Losses and LAE, net 16,610 1,408 18,018 — — — 18,018 Policy acquisition costs 4,357 1,093 5,450 758 — (744) 5,464 Operating expenses 3,161 402 3,563 292 305 — 4,160 Segment expenses 24,128 2,903 27,031 1,050 305 (744) 27,642 Segment gain (loss) $ (3,533) $ 534 $ (2,999) $ 62 $(158) $ 106 $ (2,989) Investment income 507 507 Net realized investment gains (losses) (69) (69) Change in fair value of equity securities 280 280 Other gains (5) (5) Interest expense (711) (711) Income (loss) before equity earnings in Affiliate and income taxes $ (3,533) $ 534 $ (2,999) $ 62 $(156) $ 106 $ (2,987) | 19. Segment Information The Company is engaged in the sale of property and casualty insurance products and has organized its business model around three classes of insurance businesses: commercial lines, personal lines, and wholesale agency business. Within these three businesses, the Company offers various insurance products and insurance agency services. Such insurance businesses are engaged in underwriting and marketing insurance coverages, and administering claims processing for such policies. The Company views the commercial and personal lines segments as underwriting business (business that takes on insurance underwriting risk). The wholesale agency business provides non-risk bearing revenue through commissions and policy fees. The wholesale agency business increases the product options to the Company’s independent retail agents by offering both insurance products from the Insurance Company Subsidiaries as well as products offered by other insurers. The Company defines its operating segments as components of the business where separate financial information is available and used by the co-chief operating decision makers in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s co-chief operating decision makers, the Co-Chief Executive Officers, review a number of financial measures including gross written premiums, net earned premiums, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for personnel, policy issuance and claims systems, rent and utilities. The Company markets, distributes and sells its insurance products through its own insurance agencies and a network of independent agents. All of the Company’s insurance activities are conducted in the United States with a concentration of activity in Michigan, Florida, Texas and California. For the years ended December 31, 2022, 2021, and 2020, gross written premiums attributable to these four states were 54.1%, 50.6%, and 49.6% respectively, of the Company’s total gross written premiums. The following table summarizes our net earned premiums: Net Earned Premium 2022 2021 2020 Commercial 84% 89% 92% Personal 16% 11% 8% Total 100% 100% 100% The wholesale agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the wholesale agency business and are eliminated in the Eliminations category. In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team, some finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $ 116,868 $21,151 $138,019 $ — $ — $ — $138,019 Net written premiums $ 72,318 $18,914 $ 91,232 $ — $ — $ — $ 91,232 Net earned premiums $ 80,823 $15,888 $ 96,711 $ — $ — $ — $ 96,711 Other income 245 82 327 5,712 271 (3,542) 2,768 Segment revenue 81,068 15,970 97,038 5,712 271 (3,542) 99,479 Loss and loss adjustment expenses, net 70,762 10,678 81,440 — — — 81,440 Policy acquisition costs 17,682 4,604 22,286 3,653 — (3,760) 22,179 Operating expenses 13,069 1,936 15,005 2,612 1,192 (20) 18,789 Loss portfolio transfer risk fee 5,400 — — — — — 5,400 Segment expenses 106,913 17,218 118,731 6,265 1,192 (3,780) 127,808 Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Segment underwriting gain (loss) (25,845) ( 1,248 (21,693) (553) (921) 238 (28,329) Net investment income 32 3,011 3,043 Net realized investment gains (losses) (1,505) (1,505) Change in fair value of equity securities 403 403 Gain from VSRM Transaction 8,810 8,810 Other gains (1) 60 59 Interest expense (42) (2,929) (2,971) Income (loss) before income taxes $ (25,845) $(1,248) $(21,693) $(564) $ 6,929 $ 238 $ (20,490) Selected Balance Sheet Data: Deferred policy acquisition costs $ 7,683 $ 2,796 $(189) $ 10,290 Unearned premiums 56,565 11,322 67,887 Unpaid losses and loss adjustment expenses 159,558 5,981 165,539 Year Ended December 31, 2021 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $117,075 $15,020 $132,095 $ — $ — $ — $132,095 Net written premiums $ 87,307 $14,122 $101,429 $ — $ — $ — $101,429 Net earned premiums $ 87,759 $11,043 $ 98,802 $ — $ — $ — $ 98,802 Other income 215 143 358 5,848 365 (3,900) 2,671 Segment revenue 87,974 11,186 99,160 5,848 365 (3,900) 101,473 Loss and loss adjustment expenses, net 63,868 5,993 69,861 — — — 69,861 Policy acquisition costs 25,687 3,307 28,994 3,727 — (4,270) 28,451 Operating expenses 11,648 1,357 13,005 2,382 1,122 — 16,509 Segment expenses 101,203 10,657 111,860 6,109 1,122 (4,270) 114,821 Segment underwriting gain (loss) (13,229) 529 (12,700) (261) (757) $ 370 (13,348) Net investment income 1,968 1,968 Net realized investment gains 2,878 2,878 Change in fair value of equity securities (2,020) (2,020) Other gains 11,664 11,664 Interest expense (2,852) (2,852) Income (loss) before income taxes $ (13,229) $ 529 $ (12,700) $ (261) $10,881 $ 370 $ (1,710) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,619 $ 2,075 $ (427) $ 12,267 Unearned premiums 57,491 7,778 65,269 Unpaid losses and loss adjustment expenses 135,084 4,001 139,085 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $102,763 $8,572 $111,335 $— $— $— $111,335 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Net written premiums $ 85,385 $7,555 $92,940 $ — $ — $ — $ 92,940 Net earned premiums $ 82,409 $6,694 $89,103 $ — $ — $ — $ 89,103 Other income 242 150 392 7,571 245 (5,593) 2,615 Segment revenue 82,651 6,844 89,495 7,571 245 (5,593) 91,718 Loss and loss adjustment expenses, net 53,263 2,965 56,228 — — — 56,228 Policy acquisition costs 25,051 2,044 27,095 4,938 — (5,928) 26,105 Operating expenses 12,644 1,069 13,713 3,107 1,648 — 18,468 Segment expenses 90,958 6,078 97,036 8,045 1,648 (5,928) 100,801 Segment underwriting gain (loss) (8,307) 766 (7,541) (474) (1,403) $ 335 (9,083) Net investment income 3,156 3,156 Net realized investment gains 8,126 8,126 Change in fair value of equity securities 228 228 Other gains 260 260 Interest expense (2,925) (2,925) Income (loss) before income taxes $ (8,307) $ 766 $(7,541) $ (474) $ 7,442 $ 335 $ (238) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,858 $1,183 $ (798) $ 12,243 Unearned premiums 51,535 4,689 56,224 Unpaid losses and loss adjustment expenses 106,662 4,608 111,270 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant (FY) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Balance Sheets – Parent Company Only (dollars in thousands) December 31, 2022 2021 Assets Investment in subsidiaries $ 56,670 $ 79,511 Cash 9,022 750 Due from subsidiaries (9,754) (7,055) Due from Affiliate 113 220 Other assets 2,434 2,522 Total assets $ 58,485 $ 75,948 Liabilities and Shareholders' Equity Liabilities: Debt $ 33,876 $ 33,564 Other liabilities 5,659 1,881 Total liabilities 39,535 35,445 Shareholders' equity: Common stock, no 100,000,000 12,215,849 9,707,817 97,913 92,692 Accumulated deficit (60,760) (50,079) Accumulated other comprehensive income (loss) (18,203) (2,110) Total shareholders' equity 18,950 40,503 Total liabilities and shareholders' equity $ 58,485 $ 75,948 The accompanying notes are an integral part of the Condensed Financial Information of Registrant. Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statements of Comprehensive Income (Loss) – Parent Company Only (dollars in thousands) Year Ended December 31, 2022 2021 2020 Revenue Management fees from subsidiaries $ 4,980 $15,952 $12,527 Other income 190 2,900 483 Total revenue 5,170 18,852 13,010 Expenses Operating expenses 14,365 12,736 14,459 Interest expense 2,816 2,852 2,925 Total expenses 17,181 15,588 17,384 Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) (12,011) 3,264 (4,374) Income tax expense (benefit) (4,078) 156 (813) Income (loss) before equity earnings (losses) of subsidiaries (7,933) 3,108 (3,561) Equity earnings (losses) in subsidiaries (2,748) (4,202) 4,156 Net income (loss) (10,681) (1,094) 595 Other Comprehensive Income Equity in other comprehensive income (loss) of subsidiaries (16,093) (3,022) 423 Total Comprehensive income (loss) $(26,774) $ (4,116) $ 1,018 The accompanying notes are an integral part of the Condensed Financial Information of Registrant. Schedule II Conifer Holdings, Inc. Condensed Financial Information of Registrant Statement of Cash Flows – Parent Company Only (dollars in thousands) Year Ended December 31, 2022 2021 2020 Cash Flows from Operating Activities Net income (loss) $(10,681) $(1,094) $ 595 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 436 415 421 Equity in undistributed (income) loss of subsidiaries 2,748 4,202 (4,156) Stock-based compensation expense 211 218 706 Deferred income tax expense 3,884 — — Other (gain) loss — (2,593) (260) Changes in operating assets and liabilities: Due from subsidiaries 2,699 8,800 (852) Due from Affiliate 107 (220) 214 Current income tax recoverable — — 539 Other assets 62 890 625 Other liabilities (203) (915) (715) Net cash provided by (used in) operating activities (737) 9,703 (2,883) Cash Flows From Investing Activities Contributions to subsidiaries 4,000 (5,400) (1,150) Dividends received from subsidiaries — — — Purchases of investments — — (79) Purchases of property and equipment — (20) — Net cash provided by (used in) investing activities 4,000 (5,420) (1,229) Cash Flows From Financing Activities Proceeds received from issuance of shares of common stock 5,000 — — Repurchase of common stock 10 (12) (36) Borrowings under debt arrangements 5,000 3,000 5,745 Repayment of borrowings under debt arrangements (5,000) (8,000) (625) Stock and debt issuance costs — — — Net cash provided by financing activities 5,010 (5,012) 5,084 Net increase (decrease) in cash 8,273 (729) 972 Cash at beginning of period 749 1,478 506 Cash at end of period $ 9,022 $ 749 $ 1,478 Supplemental Disclosure of Cash Flow Information: Interest paid $ 2,979 $ 2,883 $ 2,586 The accompanying notes are an integral part of the Condensed Financial Information of Registrant. Conifer Holding, Inc. Condensed Financial Information of Registrant Parent Company Only Notes to Condensed Financial Statements 1. Accounting Policies Organization Conifer Holdings, Inc. (the “Parent”) is a Michigan-domiciled holding company organized for the purpose of managing its insurance entities. The Parent conducts its principal operations through these entities. Basis of Presentation The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and related Notes of Conifer Holdings, Inc. and Subsidiaries. Investments in subsidiaries are accounted for using the equity method. Under the equity method, the investment in subsidiaries is stated at cost plus contributions and equity in undistributed income (loss) of consolidated subsidiaries less dividends received since the date of acquisition. The Parent’s operations consist of income earned from management and administrative services performed for the insurance entities pursuant to intercompany services agreements. These management and administrative services include providing management, marketing, offices and equipment, and premium collection, for which the insurance companies pay fees based on a percentage of gross premiums written. Also, the Parent receives commission income for performing agency services. The primary operating costs of the Parent are salaries and related costs of personnel, information technology, administrative expenses, and professional fees. The income received from the management and administrative services is used to cover operating costs, meet debt service requirements and cover other holding company obligations. Estimates and Assumptions Preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Dividends The Parent received a $10.8 million dividend from Sycamore during the fourth quarter of 2022. The Parent received no cash dividends from its subsidiaries in 2021 and 2020. In 2021, the Parent received a $6.0 million non-cash dividend from one of its subsidiaries in the form of a promissory note from Affiliate, which the Parent subsequently contributed to one of the insurance subsidiaries. 2. Guarantees The Parent has guaranteed the principal and interest obligations of a $10.0 million surplus note issued by Conifer Insurance Company to White Pine Insurance Company (both wholly owned subsidiaries). The note pays interest annually at a per annum rate of 4% and has no maturity. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts (FY) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Schedule V Conifer Holdings, Inc. and Subsidiaries Valuation and Qualifying Accounts For the Years Ended December 31, 2022, 2021, and 2020 (dollars in thousands) Balance at Beginning of Period Charged to Expense Decrease to Other Comprehensive Income Deductions from Allowance Account Balance at End of Period Valuation for Deferred Tax Assets 2022 14,594 3,715 3,354 — 21,663 2021 13,292 676 626 — 14,594 2020 13,572 (205) (75) — 13,292 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Q1) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Management Representation | Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries, Conifer Insurance Company (“CIC”), White Pine Insurance Company (“WPIC”), Red Cedar Insurance Company (“RCIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and VSRM, Inc. (“VSRM”). CIC, WPIC, and RCIC are collectively referred to as the “Insurance Company Subsidiaries.” On a stand-alone basis, Conifer Holdings, Inc. is referred to as the “Parent Company.” VSRM owns a 50% non-controlling interest in Sycamore Specialty Underwriters, LLC (“SSU” or “Affiliate”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. The Company has applied the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting and therefore the consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the consolidated interim financial statements, have been included. These consolidated financial statements and the notes thereto should be read in conjunction with the Company's audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the year ended December 31, 2023. | Recent Developments COVID-19 (the “Pandemic”) continues to cause significant disruption to public health, the global economy, financial markets, and commercial, social and community activity in general. As there has been a significant reduction in reported cases and correspondingly a reduction in government restrictions, we see reduced risk to our business. We continue to monitor potential risks the Pandemic may present including a potential resurgence. Our exposure to the Pandemic is manifold. The majority of our employees continue to work remotely however strict “shelter-in-place” or “stay-at-home” orders have been lifted. A significant portion of our revenues are generated from the hospitality sector within the U.S. which remains under stress due to the threats of resurgence and resource shortages that resulted from the Pandemic. We have continued to provide customer service, process new and renewal business, handle claims and otherwise manage all operations even though the vast majority of the staff is working remotely. To date, we have not seen a major disruption in our business as a result of the Pandemic and currently do not expect to see a material negative impact to our financial position or results of operations as a result of the Pandemic. Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company (“CIC”), Red Cedar Insurance Company (“RCIC”), White Pine Insurance Company (“WPIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and, as of October 13, 2022, VSRM, Inc. (“VSRM”). VSRM has substantially no operations following the contribution to SSU as described in Note 2 ~ VSRM Transaction The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. |
Business | Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States of America (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. | Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In applying these estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including uncertainties associated with the Pandemic. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. |
Cash, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. | Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as short-term investments in the consolidated balance sheets as they relate to the Company’s investment activities. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments incurred loss methodology and the concept of Other-than-Temporary Impairment (or “OTTI”) with an expected credit loss methodology that is sometimes referred to as the Current Expected Credit Loss (CECL) methodology. The guidance applies to Conifer's reinsurance recoverables, premium receivable, and debt securities. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The adoption of ASC 326 did not have any impact on the Company's financial statements. Among other updates which management deems to have no material impact, ASC 326 made changes to the accounting for available-for-sale debt securities. At each quarter-end, for available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, 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 is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Recently Issued Accounting Guidance In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) | Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (FY) (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Management Representation | Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries, Conifer Insurance Company (“CIC”), White Pine Insurance Company (“WPIC”), Red Cedar Insurance Company (“RCIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and VSRM, Inc. (“VSRM”). CIC, WPIC, and RCIC are collectively referred to as the “Insurance Company Subsidiaries.” On a stand-alone basis, Conifer Holdings, Inc. is referred to as the “Parent Company.” VSRM owns a 50% non-controlling interest in Sycamore Specialty Underwriters, LLC (“SSU” or “Affiliate”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. The Company has applied the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting and therefore the consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting of items of a normal recurring nature, necessary for a fair presentation of the consolidated interim financial statements, have been included. These consolidated financial statements and the notes thereto should be read in conjunction with the Company's audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results expected for the year ended December 31, 2023. | Recent Developments COVID-19 (the “Pandemic”) continues to cause significant disruption to public health, the global economy, financial markets, and commercial, social and community activity in general. As there has been a significant reduction in reported cases and correspondingly a reduction in government restrictions, we see reduced risk to our business. We continue to monitor potential risks the Pandemic may present including a potential resurgence. Our exposure to the Pandemic is manifold. The majority of our employees continue to work remotely however strict “shelter-in-place” or “stay-at-home” orders have been lifted. A significant portion of our revenues are generated from the hospitality sector within the U.S. which remains under stress due to the threats of resurgence and resource shortages that resulted from the Pandemic. We have continued to provide customer service, process new and renewal business, handle claims and otherwise manage all operations even though the vast majority of the staff is working remotely. To date, we have not seen a major disruption in our business as a result of the Pandemic and currently do not expect to see a material negative impact to our financial position or results of operations as a result of the Pandemic. Basis of Presentation and Management Representation The consolidated financial statements include accounts, after elimination of intercompany accounts and transactions, of Conifer Holdings, Inc. (the “Company” or “Conifer”), its wholly owned subsidiaries Conifer Insurance Company (“CIC”), Red Cedar Insurance Company (“RCIC”), White Pine Insurance Company (“WPIC”), Sycamore Insurance Agency, Inc. (“Sycamore”), and, as of October 13, 2022, VSRM, Inc. (“VSRM”). VSRM has substantially no operations following the contribution to SSU as described in Note 2 ~ VSRM Transaction The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which differ from statutory accounting practices prescribed or permitted for insurance companies by regulatory authorities. |
Business | Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States of America (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. | Business The Company is engaged in the sale of property and casualty insurance products and has organized its principal operations into three types of insurance businesses: commercial lines, personal lines, and agency business. The Company underwrites a variety of specialty insurance products, including property, general liability, liquor liability, automobile, and homeowners and dwelling policies. The Company markets and sells its insurance products through a network of independent agents, including managing general agents, whereby policies are written in all 50 states in the United States (“U.S.”). The Company’s corporate headquarters are located in Troy, Michigan with additional office facilities in Florida and Michigan. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In applying these estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain, including uncertainties associated with the Pandemic. While management believes the amounts included in the consolidated financial statements reflect management's best estimates and assumptions, actual results may differ from these estimates. |
Cash, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money market funds, are classified as investments in the consolidated balance sheets as they relate to the Company’s investment activities. | Cash, Cash Equivalents, and Short-term Investments Cash consists of cash deposits in banks, generally in operating accounts. Cash equivalents consist of money-market funds that are specifically used as overnight investments tied to cash deposit accounts. Short-term investments, consisting of money-market funds, are classified as short-term investments in the consolidated balance sheets as they relate to the Company’s investment activities. |
Lease Accounting | Lease Accounting The Company accounts for leases under FASB Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which required the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value upon initial recognition, for all leases that extend beyond 12 months. For operating leases, the asset and liability are amortized over the lease term with expense recognized on a straight-line basis and all cash flows included in the operating section of the consolidated statement of cash flows. We do not have any financing leases. Our operating leases consist primarily of real estate utilized in the operation of our businesses with lease terms ranging from 5 to 10 years. Management has determined the appropriate discount rate to use in calculating the right-to-use asset and lease liability is 6.75%. The Company records a right-of-use asset and lease liabilities included in Other Assets and Other Liabilities in the Consolidated Balance Sheets. As of December 31, 2022, the Company had a right-of-use asset lease liabilities right-of-use asset lease liabilities | |
Investment Securities and Other-than-temporary Impairments | Investment Securities Debt securities are classified as available-for-sale and reported at fair value. The Company determines the fair value using the market approach, which uses quoted prices or other relevant data based on market transactions involving identical or comparable assets. The Company purchases available-for-sale debt securities with the expectation that they will be held to maturity, however the Company may sell them if market conditions or credit-related risk warrant earlier sales. The Company does not have any securities classified as held-to-maturity or trading. The change in unrealized gain and loss on debt securities is recorded as a component of accumulated other comprehensive income (loss), net of the related deferred tax effect, until realized. The debt securities portfolio includes structured securities. The Company recognizes income from these securities using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. Premiums and discounts on structured securities are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in interest income in the consolidated statements of operations. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis and included in earnings on the trade date. Equity securities that do not result in consolidation and are not accounted for under the equity method are measured at fair value and any changes in fair value are recognized in net income in the Consolidated Statements of Operations. Investment company limited partnerships are measured at their net asset value, which approximates fair value. Any changes in the net asset value are recognized in net income in the Consolidated Statements of Operations. The Company carries other equity investments that do not have a readily determinable fair value at cost, less impairment and adjusted for observable price changes under the measurement alternative provided under GAAP. We review these investments for impairment during each reporting period. These investments are a component of Other Assets in the Consolidated Balance Sheets. Other-than-Temporary Impairments The Company reviews its impaired securities for possible other-than-temporary impairment (“OTTI”) at each quarter-end. A security has an impairment loss when its fair value is less than its cost or amortized cost at the balance sheet date. The Company considers the following factors in performing its review: (i) the amount by which the security’s fair value is less than its cost, (ii) length of time the security has been impaired, (iii) whether management has the intent to sell the security, (iv) if it is more likely than not that management will be required to sell the security before recovery of its amortized cost basis, (v) whether the impairment is due to an issuer-specific event, credit issues or change in market interest rates, (vi) the security’s credit rating and any recent downgrades or (vii) stress testing of expected cash flows under different scenarios. If the Company cannot conclude that declines in fair value below amortized cost are considered temporary, an OTTI loss is recorded through the Consolidated Statements of Operations in the current period. For all other impaired securities, the Company will assess whether the net present value of the cash flows expected to be collected from the security is less than its amortized cost basis. Such a shortfall in cash flows is referred to as a “credit loss.” For any such security, the Company separates the impairment loss into: (i) the credit loss and (ii) the non-credit loss, which is the amount related to all other factors such as interest rate changes, fluctuations in exchange rates and market conditions. The credit loss charge is recorded to the current period statements of operations and the non-credit loss is recorded to accumulated other comprehensive income (loss), within shareholders’ equity, on an after-tax basis. A security’s cost basis is permanently reduced by the amount of a credit loss. Income is accreted over the remaining life of a security based on the interest rate necessary to discount the expected future cash flows to the new basis. If the security is non-income producing, any cash proceeds are applied as a reduction of principal when received. | |
Recognition of Premium Revenues | Recognition of Premium Revenues All of the property and casualty policies written by our insurance companies are considered short-duration contracts. These policy premiums are earned on a daily pro-rata basis, net of reinsurance, over the term of the policy, which are primarily twelve months in duration. The portion of premiums written that relate to the unexpired terms of policies in force are deferred and reported as unearned premium at the balance sheet date. | |
Reinsurance | Reinsurance Reinsurance premiums, commissions, losses and loss adjustment expenses (“LAE”) on reinsured business are accounted for on a basis consistent with that used in accounting for the original policies issued and the terms of the reinsurance contracts. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses and LAE paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverables on unpaid losses and LAE are estimated based upon assumptions consistent with those used in establishing the gross liabilities as they are applied to the underlying reinsured contracts. The Company records an allowance for uncollectible reinsurance recoverables based on an assessment of the reinsurer’s creditworthiness and collectability of the recorded amounts. Management believes an allowance for uncollectible recoverables from its reinsurers was not necessary for the periods presented. The Company receives ceding commissions in connection with certain ceded reinsurance. The ceding commissions are recorded as a reduction of policy acquisition costs. In 2022, the Company entered into a loss portfolio transfer (“LPT”) reinsurance agreement. The LPT is a retroactive reinsurance contract. See Note 8 ~ Reinsurance | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business is deferred. These deferred costs consist of commissions paid to agents (net of ceding commissions), premium taxes, and underwriting costs, including compensation and payroll related benefits. Proceeds from reinsurance transactions that represent recovery of acquisition costs reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense. Amortization of such policy acquisition costs is charged to expense in proportion to premium earned over the estimated policy term. To the extent that unearned premiums on existing policies are not adequate to cover the sum of expected losses and LAE, unamortized acquisition costs and policy maintenance costs, unamortized deferred policy acquisition costs are charged to expense to the extent required to eliminate the premium deficiency. If the premium deficiency is greater than the unamortized policy acquisition costs, a liability is recorded for any such deficiency. As of December 31, 2022, there was no premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency exists. Management performs this evaluation at each insurance product line level. | |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and LAE in the Consolidated Balance Sheets represents the Company’s estimate of the amount it expects to pay for the ultimate cost of all losses and LAE incurred that remain unpaid at the balance sheet date. The liability is recorded on an undiscounted basis, except for the liability for unpaid losses and LAE assumed related to any acquired companies which are initially recorded at fair value. The process of estimating the liability for unpaid losses and LAE is a complex process that requires a high degree of judgment. The liability for unpaid losses and LAE represents the accumulation of individual case estimates for reported losses and LAE, and actuarially determined estimates for incurred but not reported losses and LAE and includes a provision for estimated costs to settle all outstanding claims at the balance sheet date. The liability for unpaid losses and LAE is intended to include the ultimate net cost of all losses and LAE incurred but unpaid as of the balance sheet date. The liability is stated net of anticipated deductibles, salvage and subrogation, and gross of reinsurance ceded. The estimate of the unpaid losses and LAE liability is continually reviewed and updated. Although management believes the liability for losses and LAE is reasonable, the ultimate liability may be more or less than the current estimate. The estimation of ultimate liability for unpaid losses and LAE is a complex, imprecise and inherently uncertain process, and therefore involves a considerable degree of judgment and expertise. The Company utilizes various actuarially-accepted reserving methodologies in deriving the continuum of expected outcomes and ultimately determining its estimated liability amount. These methodologies utilize various inputs, including but not limited to written and earned premiums, paid and reported losses and LAE, expected initial loss and LAE ratio, which is the ratio of incurred losses and LAE to earned premiums, and expected claim reporting and payout patterns (including company-specific and industry data). The liability for unpaid loss and LAE does not represent an exact measurement of liability, but is an estimate that is not directly or precisely quantifiable, particularly on a prospective basis, and is subject to a significant degree of variability over time. In addition, the establishment of the liability for unpaid losses and LAE makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in the Company’s historical experience or which cannot yet be quantified. As a result, an integral component of estimating the liability for unpaid losses and LAE is the use of informed subjective estimates and judgments about the ultimate exposure to unpaid losses and LAE. The effects of changes in the estimated liability are included in the results of operations in the period in which the estimates are revised. The Company allocates the applicable portion of the unpaid losses and LAE to amounts recoverable from reinsurers under reinsurance contracts and reports those amounts separately as assets on the consolidated balance sheets. | |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized to the extent that there is sufficient positive evidence, as allowed under the Accounting Standard Codification (“ASC”) 740, Income Taxes, As of December 31, 2022 and 2021, the Company did not have any unrecognized tax benefits and had no accrued interest or penalties related to uncertain tax positions. | |
Other Income | Other Income Other income consists primarily of fees charged to policyholders by the Company for services outside of the premium charge, such as installment billings or policy issuance costs. Commission income is also received by the Company’s insurance agencies for writing policies for third party insurance companies. The Company recognizes commission income on the later of the effective date of the policy, the date when the premium can be reasonably established, or the date when substantially all services related to the insurance placement have been rendered. | |
Operating Expenses | Operating Expenses Operating expenses consist primarily of other underwriting, compensation and benefits, information technology, facility and other administrative expenses. | |
Accounting Guidance Not Yet Adopted | Recently Adopted Accounting Pronouncements Effective January 1, 2023, the Company adopted ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments incurred loss methodology and the concept of Other-than-Temporary Impairment (or “OTTI”) with an expected credit loss methodology that is sometimes referred to as the Current Expected Credit Loss (CECL) methodology. The guidance applies to Conifer's reinsurance recoverables, premium receivable, and debt securities. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The adoption of ASC 326 did not have any impact on the Company's financial statements. Among other updates which management deems to have no material impact, ASC 326 made changes to the accounting for available-for-sale debt securities. At each quarter-end, for available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, 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 is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Recently Issued Accounting Guidance In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) | Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), In January 2021, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) |
Risks and Uncertainties | Risks and Uncertainties The Company is exposed to interest rate risks as it maintains a significant amount of its investment portfolio in debt securities. As a result of changes in interest rates during 2022, the Company reported a $16.0 million net unrealized loss that was reflected in other comprehensive income. As of December 31, 2022, total net unrealized losses in the debt securities was $18.2 million. Management believes it will not need to sell debt securities at significant losses as it has the ability and intention to hold them until their values improve. Management has noted the media has reported a number of recent bank failures. The Company does not have any deposits or investments in any of these banks. Management does not expect any significant impact as a result of these events. |
Investments (Q1) (Tables)
Investments (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | ||
Schedule of Available-for-sale Securities | The cost or amortized cost, gross unrealized gains or losses, and estimated fair value of the investments in securities classified as available for sale at March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,220 $— $ (249) $ 6,971 State and local government 26,063 1 (3,866) 22,198 Corporate debt 35,070 — (4,139) 30,931 Asset-backed securities 21,150 — (1,045) 20,105 March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Mortgage-backed securities 28,524 — (4,739) 23,785 Commercial mortgage-backed securities 3,413 — (125) 3,288 Collateralized mortgage obligations 3,834 — (479) 3,355 Total debt securities available for sale $125,274 $ 1 $(14,642) $110,633 December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 | The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2022 and 2021 were as follows (dollars in thousands): December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 December 31, 2021 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 20,723 $ 74 $ (77) $ 20,720 State and local government 30,063 555 (189) 30,429 Corporate debt 30,808 88 (550) 30,346 Asset-backed securities 28,652 10 (224) 28,438 Mortgage-backed securities 33,178 105 (762) 32,521 Commercial mortgage-backed securities 1,659 31 — 1,690 Collateralized mortgage obligations 5,649 35 (45) 5,639 Total debt securities available for sale $150,732 $898 $(1,847) $149,783 |
Schedule Of Unrealized Loss On Investments | The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): March 31, 2023 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 2 $ 900 $ (6) 10 $ 6,071 $ (243) 12 $ 6,971 $ (249) State and local government 13 3,229 (80) 110 18,267 (3,786) 123 21,496 (3,866) Corporate debt 4 1,509 (41) 64 29,422 (4,098) 68 30,931 (4,139) Asset-backed securities 3 1,085 (28) 22 19,020 (1,017) 25 20,105 (1,045) Mortgage-backed securities 33 279 (12) 35 23,499 (4,727) 68 23,778 (4,739) Commercial mortgage-backed securities 1 209 (20) 3 3,056 (105) 4 3,265 (125) Collateralized mortgage obligations 11 166 (6) 23 3,212 (473) 34 3,378 (479) Total debt securities available for sale 67 $7,377 $(193) 267 $102,547 $(14,449) 334 $109,924 $(14,642) December 31, 2022 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage-backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 $38,757 $(4,857) 133 $71,142 $(12,062) 338 $109,899 $(16,919) | The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2022 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage -backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 38,757 (4,857) 133 71,142 (12,062) 338 109,899 (16,919) December 31, 2021 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 6 $10,323 $ (47) 1 $4,728 $(30) 7 $ 15,051 $ (77) State and local government 41 8,875 (172) 4 446 (17) 45 9,321 (189) Corporate debt 41 22,748 (505) 1 705 (45) 42 23,453 (550) Asset-backed securities 24 24,305 (219) 2 1,893 (5) 26 26,198 (224) Mortgage-backed securities 12 27,034 (762) — — — 12 27,034 (762) Commercial mortgage -backed securities 0 — 0 — — — 0 — 0 Collateralized mortgage obligations 10 2,638 (45) 2 29 — 12 2,667 (45) Total debt securities available for sale 134 $95,923 $(1,750) 10 $7,801 $(97) 144 $103,724 $(1,847) |
Schedule of Investment Income and Losses | The Company’s sources of net investment income and losses are as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities $ 853 $ 582 Equity securities 11 28 Cash, cash equivalents and short-term investments 503 1 Total investment income 1,367 611 Investment expenses (60) (104) Net investment income $1,307 $ 507 | The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities $2,517 $2,217 $3,213 Equity securities 52 194 220 Cash, cash equivalents, and short-term investments 776 2 138 Total investment income 3,345 2,413 3,571 Investment expenses (302) (445) (415) Net investment income $3,043 $1,968 $3,156 |
Schedule of Gross Realized Gains and Losses on Securities | The following table summarizes the gross realized gains and losses from sales, calls and maturities of available-for-sale debt and equity securities (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities: Gross realized gains $— $ — Gross realized losses — — Total debt securities — — Equity securities: Gross realized gains $— 19 Gross realized losses — (88) Total equity securities — (69) Total net realized investment gains (losses) $— $(69) | The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities: Gross realized gains $ 6 $ 63 $ 4,646 Gross realized losses (155) (6) (8) Total debt securities (149) 57 4,638 Equity securities: Gross realized gains 375 4,605 4,854 Gross realized losses (1,731) (1,784) (1,366) Total equity securities (1,356) 2,821 3,488 Total net realized investment gains $(1,505) $ 2,878 $ 8,126 |
Summary of Amortized Cost and Fair Value of Securities | The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at March 31, 2023. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,668 $ 4,592 Due after one year through five years 28,614 26,543 Due after five years through ten years 23,810 20,267 Due after ten years 11,261 8,698 Securities with contractual maturities 68,353 60,100 Asset-backed securities 21,150 20,105 Mortgage-backed securities 28,524 23,785 Commercial mortgage-backed securities 3,413 3,288 Collateralized mortgage obligations 3,834 3,355 Total debt securities $125,274 $110,633 | The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2022. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,876 $ 4,770 Due after one year through five years 28,396 25,963 Due after five years through ten years 23,974 19,782 Amortized Cost Estimated Fair Value Due after ten years 11,421 8,358 Securities with contractual maturities 68,667 58,873 Asset-backed securities 21,742 20,496 Mortgage-backed securities 29,194 24,037 Commercial mortgage-backed securities 3,414 3,228 Collateralized mortgage obligations 4,102 3,567 Total debt securities $127,119 $110,201 |
Fair Value Measurements (Q1) (T
Fair Value Measurements (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Summary of Assets and Liabilities Measured at Fair Value | The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 6,971 $ — $ 6,971 $ — State and local government 22,198 — 22,198 — Corporate debt 30,931 — 30,931 — Asset-backed securities 20,105 — 20,105 — Mortgage-backed securities 23,785 — 23,785 — Commercial mortgage-backed securities 3,288 — 3,288 — Collateralized mortgage obligations 3,355 — 3,355 — Total debt securities 110,633 — 110,633 — Equity Securities 965 208 757 — Short-term investments 28,055 28,055 — — Total marketable investments measured at fair value $139,653 $28,263 $ 111,390 $ — Investments measured at NAV: Investment in limited partnership 1,460 Total assets measured at fair value $ 141,113 Liabilities: Senior Unsecured Notes* $ 22,567 $ — $ 22,567 $ — Subordinated Notes* 11,685 — — 11,685 Total Liabilities (non-recurring fair value measure) $ 34,252 $ — $ 22,567 $11,685 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $— State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $— December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes* $ 22,430 $— $22,430 $ — Subordinated Notes* 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure) $ 33,730 $— $22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets | The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $ — State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity Securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $ — Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes * $ 22,430 $ — $ 22,430 $ — Subordinated Notes * 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure $ 33,730 $ — $ 22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 20,720 $ — $ 20,720 $— State and local government 30,429 — 30,429 — Corporate debt 30,346 — 30,346 — Asset-backed securities 28,438 — 28,438 — Mortgage-backed securities 32,521 — 32,521 — Commercial mortgage-backed securities 1,690 — 1,690 — Collateralized mortgage obligations 5,639 — 5,639 — Total debt securities 149,783 — 149,783 — Equity Securities 9,437 9,154 283 — Short-term investments 23,013 23,013 — — Total marketable investments measured at fair value $182,233 $32,167 $150,066 $— Investments measured at NAV: Investment in limited partnership 494 Total assets measured at fair value $182,727 December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Liabilities: Senior Unsecured Notes * $24,118 $— $24,118 $ — Subordinated Notes * 11,704 — — 11,704 Total Liabilities measured at fair value $35,822 $— $24,118 $11,704 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Summary of Deferred Policy Acquisition Costs | The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $10,290 $12,267 Deferred policy acquisition costs 2,757 3,321 Amortization of policy acquisition costs (4,721) (5,464) Net change (1,964) (2,143) Balance at end of period $ 8,326 $10,124 | The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 12,267 $ 12,243 $ 11,906 Deferred policy acquisition costs 20,202 28,475 26,442 Amortization of policy acquisition costs (22,179) (28,451) (26,105) Net change (1,977) 24 337 Balance at end of period $ 10,290 $ 12,267 $ 12,243 |
Unpaid Losses and Loss Adjust_3
Unpaid Losses and Loss Adjustment Expenses (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||
Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense | The table below provides the changes in the reserves for losses and LAE, net of reinsurance recoverables, for the periods indicated as follows (dollars in thousands): Three months ended March 31, 2023 2022 Gross reserves - beginning of period $165,539 $139,085 Less: reinsurance recoverables on unpaid losses (82,651) (40,344) Net reserves - beginning of period 82,888 98,741 Add: incurred losses and LAE, net of reinsurance: Current period 14,926 12,497 Prior period (1,213) 5,521 Total net incurred losses and LAE 13,713 18,018 Deduct: loss and LAE payments, net of reinsurance: Current period 1,987 2,512 Prior period 10,353 13,914 Total net loss and LAE payments 12,340 16,426 Net reserves - end of period 84,261 100,333 Plus: reinsurance recoverables on unpaid losses 61,101 40,605 Gross reserves - end of period $145,362 $140,938 | The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): December 31, 2022 2021 2020 Gross reserves - beginning of period $ 139,085 $ 111,270 $107,246 Less: reinsurance recoverables on unpaid losses 40,344 24,218 22,579 Net reserves - beginning of period 98,741 87,052 84,667 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 57,156 50,429 40,634 Prior period 24,284 19,432 15,594 Total net incurred losses and loss adjustment expenses 81,440 69,861 56,228 December 31, 2022 2021 2020 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 20,894 18,984 13,599 Prior period 76,399 39,188 40,244 Total net loss and loss adjustment expense payments 97,293 58,172 53,843 Net reserves - end of period 82,888 98,741 87,052 Plus: reinsurance recoverables on unpaid losses 82,651 40,344 24,218 Gross reserves - end of period $165,539 $139,085 $111,270 |
Reinsurance (Q1) (Tables)
Reinsurance (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Summary of the Effects of Reinsurance | The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands): Three Months Ended March 31, 2023 2022 Written premiums: Direct $ 24,341 $ 24,796 Assumed 11,873 8,168 Ceded (17,872) (14,943) Net written premiums $ 18,342 $ 18,021 Earned premiums: Direct $ 23,315 $ 24,123 Assumed 10,979 8,641 Ceded (12,342) (8,809) Net earned premiums $ 21,952 $ 23,955 Losses and LAE: Direct $ 1,969 $ 13,066 Assumed 1,497 7,408 Ceded 10,247 (2,456) Net Losses and LAE $ 13,713 $ 18,018 | The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). In 2022, ceded written and earned premium amounts included $1.6 million of reinsurance reinstatement costs relating to Hurricane Ian. In 2021, ceded written and earned amounts included $340,000 of reinsurance reinstatement costs relating to Winter Storm Uri. In 2021 and 2020, the ceded written and earned premium amounts include $86,000 and $195,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2022 2021 2020 Written premiums: Direct $ 95,832 $ 97,801 $ 82,430 Assumed 42,187 34,294 28,905 Ceded (46,787) (30,666) (18,395) Net written premiums $ 91,232 $101,429 $ 92,940 Earned premiums: Direct $ 97,843 $ 91,943 $ 75,130 Assumed 37,558 31,107 31,484 Ceded (38,690) (24,248) (17,511) Net earned premiums $ 96,711 $ 98,802 $ 89,103 Loss and loss adjustment expenses: Direct $ 73,000 $ 71,021 $ 48,780 Assumed 43,487 25,740 24,429 Ceded (35,047) (26,900) (16,981) Net loss and LAE $ 81,440 $ 69,861 $ 56,228 |
Debt (Q1) (Tables)
Debt (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Schedule of Outstanding Senior Debt | A summary of the Company's outstanding debt is as follows (dollars in thousands): March 31, 2023 December 31, 2022 Senior unsecured notes $24,251 $24,186 Subordinated notes 9,703 9,690 Total $33,954 $33,876 | A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2022 2021 Senior unsecured notes $24,186 $23,926 Subordinated notes 9,690 9,638 Total $33,876 $33,564 |
Earnings Per Share (Q1) (Tables
Earnings Per Share (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share | The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except per share and share amounts): Three Months Ended March 31, 2023 2022 Net income (loss) $ 1,001 $ (2,870) Weighted average common shares, basic and diluted* 12,215,849 9,707,817 Earnings (loss) per common share, basic and diluted $ 0.08 $ (0.30) * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. | The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net income (loss) $ (10,681) $ (1,094) $ 595 Weighted average common shares, basic and diluted* 10,692,090 9,691,998 9,625,059 Earnings (loss) per share, basic and diluted ( 1.00 $ (0.11) $ 0.06 * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of December 31, 2022, 2021, and 2020. Therefore, the non-vested shares are excluded from earnings (loss) per share for the years ended December 31, 2022, 2021, and 2020. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Three months ended March 31, 2023 2022 Balance at beginning of period $(18,203) $(2,110) Other comprehensive income (loss) before reclassifications, net of tax 2,286 (7,287) Less: amounts reclassified from accumulated other comprehensive income (loss), net of tax — — Net other comprehensive income (loss) 2,286 (7,287) Balance at end of period $(15,917) $(9,397) | The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Year Ended December 31, 2022 2021 Balance at beginning of period $ (2,110) $ 912 Other comprehensive income (loss) before reclassifications (16,024) (2,937) Less: amounts reclassified from accumulated other comprehensive income (loss) 69 85 Net current period other comprehensive income (loss) (16,093) (3,022) Balance at end of period $(18,203) $(2,110) |
Segment Information (Q1) (Table
Segment Information (Q1) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting [Abstract] | ||
Schedule of Information by Reportable Segment | The following tables present information by reportable operating segment (dollars in thousands): Three months ended March 31, 2023 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,975 $7,239 $36,214 $ — $ — $ — $36,214 Net written premiums $12,241 $6,101 $18,342 $ — $ — $ — $18,342 Net earned premiums $17,123 $4,829 $21,952 $ — $ — $ — $21,952 Other income 52 23 75 879 72 (400) 626 Segment revenue 17,175 4,852 22,027 879 72 (400) 22,578 Losses and LAE, net 10,547 3,166 13,713 — — — 13,713 Policy acquisition costs 3,196 1,389 4,585 548 — (412) 4,721 Operating expenses 3,028 592 3,620 352 307 — 4,279 Segment expenses 16,771 5,147 21,918 900 307 (412) 22,713 Segment gain (loss) $ 404 $ (295) $ 109 $ (21) $ (235) $ 12 $ (135) Investment income 1,307 1,307 Net realized investment gains (losses) — — Change in fair value of equity securities 694 694 Other gains (losses) — — Interest expense (686) (686) Income (loss) before equity earnings in Affiliate and income taxes $ 404 $ (295) $ 109 $ (21) $1,080 $ 12 $ 1,180 Three months ended March 31, 2022 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,586 $4,378 $32,964 $ — $ — $ — $32,964 Net written premiums $14,340 $3,681 $18,021 $ — $ — $ — $18,021 Net earned premiums $20,524 $3,431 $23,955 $ — $ — $ — $23,955 Other income 71 6 77 1,112 147 (638) 698 Segment revenue 20,595 3,437 24,032 1,112 147 (638) 24,653 Losses and LAE, net 16,610 1,408 18,018 — — — 18,018 Policy acquisition costs 4,357 1,093 5,450 758 — (744) 5,464 Operating expenses 3,161 402 3,563 292 305 — 4,160 Segment expenses 24,128 2,903 27,031 1,050 305 (744) 27,642 Segment gain (loss) $ (3,533) $ 534 $ (2,999) $ 62 $(158) $ 106 $ (2,989) Investment income 507 507 Net realized investment gains (losses) (69) (69) Change in fair value of equity securities 280 280 Other gains (5) (5) Interest expense (711) (711) Income (loss) before equity earnings in Affiliate and income taxes $ (3,533) $ 534 $ (2,999) $ 62 $(156) $ 106 $ (2,987) | The following table summarizes our net earned premiums: Net Earned Premium 2022 2021 2020 Commercial 84% 89% 92% Personal 16% 11% 8% Total 100% 100% 100% The wholesale agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the wholesale agency business and are eliminated in the Eliminations category. In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team, some finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $ 116,868 $21,151 $138,019 $ — $ — $ — $138,019 Net written premiums $ 72,318 $18,914 $ 91,232 $ — $ — $ — $ 91,232 Net earned premiums $ 80,823 $15,888 $ 96,711 $ — $ — $ — $ 96,711 Other income 245 82 327 5,712 271 (3,542) 2,768 Segment revenue 81,068 15,970 97,038 5,712 271 (3,542) 99,479 Loss and loss adjustment expenses, net 70,762 10,678 81,440 — — — 81,440 Policy acquisition costs 17,682 4,604 22,286 3,653 — (3,760) 22,179 Operating expenses 13,069 1,936 15,005 2,612 1,192 (20) 18,789 Loss portfolio transfer risk fee 5,400 — — — — — 5,400 Segment expenses 106,913 17,218 118,731 6,265 1,192 (3,780) 127,808 Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Segment underwriting gain (loss) (25,845) ( 1,248 (21,693) (553) (921) 238 (28,329) Net investment income 32 3,011 3,043 Net realized investment gains (losses) (1,505) (1,505) Change in fair value of equity securities 403 403 Gain from VSRM Transaction 8,810 8,810 Other gains (1) 60 59 Interest expense (42) (2,929) (2,971) Income (loss) before income taxes $ (25,845) $(1,248) $(21,693) $(564) $ 6,929 $ 238 $ (20,490) Selected Balance Sheet Data: Deferred policy acquisition costs $ 7,683 $ 2,796 $(189) $ 10,290 Unearned premiums 56,565 11,322 67,887 Unpaid losses and loss adjustment expenses 159,558 5,981 165,539 Year Ended December 31, 2021 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $117,075 $15,020 $132,095 $ — $ — $ — $132,095 Net written premiums $ 87,307 $14,122 $101,429 $ — $ — $ — $101,429 Net earned premiums $ 87,759 $11,043 $ 98,802 $ — $ — $ — $ 98,802 Other income 215 143 358 5,848 365 (3,900) 2,671 Segment revenue 87,974 11,186 99,160 5,848 365 (3,900) 101,473 Loss and loss adjustment expenses, net 63,868 5,993 69,861 — — — 69,861 Policy acquisition costs 25,687 3,307 28,994 3,727 — (4,270) 28,451 Operating expenses 11,648 1,357 13,005 2,382 1,122 — 16,509 Segment expenses 101,203 10,657 111,860 6,109 1,122 (4,270) 114,821 Segment underwriting gain (loss) (13,229) 529 (12,700) (261) (757) $ 370 (13,348) Net investment income 1,968 1,968 Net realized investment gains 2,878 2,878 Change in fair value of equity securities (2,020) (2,020) Other gains 11,664 11,664 Interest expense (2,852) (2,852) Income (loss) before income taxes $ (13,229) $ 529 $ (12,700) $ (261) $10,881 $ 370 $ (1,710) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,619 $ 2,075 $ (427) $ 12,267 Unearned premiums 57,491 7,778 65,269 Unpaid losses and loss adjustment expenses 135,084 4,001 139,085 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $102,763 $8,572 $111,335 $— $— $— $111,335 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Net written premiums $ 85,385 $7,555 $92,940 $ — $ — $ — $ 92,940 Net earned premiums $ 82,409 $6,694 $89,103 $ — $ — $ — $ 89,103 Other income 242 150 392 7,571 245 (5,593) 2,615 Segment revenue 82,651 6,844 89,495 7,571 245 (5,593) 91,718 Loss and loss adjustment expenses, net 53,263 2,965 56,228 — — — 56,228 Policy acquisition costs 25,051 2,044 27,095 4,938 — (5,928) 26,105 Operating expenses 12,644 1,069 13,713 3,107 1,648 — 18,468 Segment expenses 90,958 6,078 97,036 8,045 1,648 (5,928) 100,801 Segment underwriting gain (loss) (8,307) 766 (7,541) (474) (1,403) $ 335 (9,083) Net investment income 3,156 3,156 Net realized investment gains 8,126 8,126 Change in fair value of equity securities 228 228 Other gains 260 260 Interest expense (2,925) (2,925) Income (loss) before income taxes $ (8,307) $ 766 $(7,541) $ (474) $ 7,442 $ 335 $ (238) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,858 $1,183 $ (798) $ 12,243 Unearned premiums 51,535 4,689 56,224 Unpaid losses and loss adjustment expenses 106,662 4,608 111,270 |
VSRM Transaction (FY) (Tables)
VSRM Transaction (FY) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Condensed Assets and Liabilities Incorporated Into Consolidated Balance Sheet from VSRM Acquisition | A condensed schedule of assets and liabilities incorporated into the consolidated balance sheet from the VSRM acquisition is provided below: Cash $ 3,921 Trade receivables 4,604 Customer relationship intangible assets 37,122 Other assets 574 Total assets $46,221 Trade and other payables 7,624 Deferred tax liability 9,407 Note payable to Affiliate 6,000 Senior debt 2,917 Total Liabilities $25,948 Fair value of net assets acquired $20,273 |
Schedule of Calculation of Revaluation Gain Related to Company's Equity Method Investment in VSRM as a Result of VSRM Transaction | The following table presents the calculation of the $8.8 million revaluation gain related to the Company's equity method investment in VSRM as a result of the VSRM Transaction: Carrying value of equity method investment in VSRM $ 1,773 Fair value of investment in VSRM 10,583 Gain on step acquisition $ 8,810 |
Schedule of Reconciles the Net Assets Disposed | The following table reconciles the net assets disposed of from this transaction: Cash at closing $32,759 Net liabilities transferred 1,499 Hold back 75 Stock of acquirer 3,822 Total purchase price $38,155 Cash $ 271 Premiums transferred to buyer 4,326 Intangible assets 38,154 Trade payables and accrued liabilities assumed by buyer (5,838) Net assets disposed of 36,913 Net gain 1,242 Broker fee transaction costs (1,242) Net gain $ — The net gain on revaluation of the investment in VSRM and the disposal of the Security and Alarm Business line are summarized below: Gross gains $10,052 Broker fee (1,242) Net gain $ 8,810 |
Schedule of Assets And Liabilites Deconsolidated as a Result of This Transaction | The following table provides the assets and liabilities deconsolidated as a result of this transaction: Cash $ 497 Receivable from VSRM 934 Trade receivables 239 Intangible asset 196 Other assets 514 Total assets $2,380 Payable to Affiliates 286 Trade payables 193 Note payable 1,000 Other liabilities 901 Total Liabilities $2,380 |
Investments (FY) (Tables)
Investments (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | ||
Schedule of Available-for-sale Securities | The cost or amortized cost, gross unrealized gains or losses, and estimated fair value of the investments in securities classified as available for sale at March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,220 $— $ (249) $ 6,971 State and local government 26,063 1 (3,866) 22,198 Corporate debt 35,070 — (4,139) 30,931 Asset-backed securities 21,150 — (1,045) 20,105 March 31, 2023 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Mortgage-backed securities 28,524 — (4,739) 23,785 Commercial mortgage-backed securities 3,413 — (125) 3,288 Collateralized mortgage obligations 3,834 — (479) 3,355 Total debt securities available for sale $125,274 $ 1 $(14,642) $110,633 December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt Securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 | The cost or amortized cost, gross unrealized gain or loss, and estimated fair value of the investments in securities classified as available-for-sale at December 31, 2022 and 2021 were as follows (dollars in thousands): December 31, 2022 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 7,833 $— $ (335) $ 7,498 State and local government 25,487 1 (4,672) 20,816 Corporate debt 35,347 — (4,788) 30,559 Asset-backed securities 21,742 — (1,246) 20,496 Mortgage-backed securities 29,194 — (5,157) 24,037 Commercial mortgage-backed securities 3,414 — (186) 3,228 Collateralized mortgage obligations 4,102 — (535) 3,567 Total debt securities available for sale $127,119 $ 1 $(16,919) $110,201 December 31, 2021 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Debt securities: U.S. Government $ 20,723 $ 74 $ (77) $ 20,720 State and local government 30,063 555 (189) 30,429 Corporate debt 30,808 88 (550) 30,346 Asset-backed securities 28,652 10 (224) 28,438 Mortgage-backed securities 33,178 105 (762) 32,521 Commercial mortgage-backed securities 1,659 31 — 1,690 Collateralized mortgage obligations 5,649 35 (45) 5,639 Total debt securities available for sale $150,732 $898 $(1,847) $149,783 |
Schedule Of Unrealized Loss On Investments | The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): March 31, 2023 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 2 $ 900 $ (6) 10 $ 6,071 $ (243) 12 $ 6,971 $ (249) State and local government 13 3,229 (80) 110 18,267 (3,786) 123 21,496 (3,866) Corporate debt 4 1,509 (41) 64 29,422 (4,098) 68 30,931 (4,139) Asset-backed securities 3 1,085 (28) 22 19,020 (1,017) 25 20,105 (1,045) Mortgage-backed securities 33 279 (12) 35 23,499 (4,727) 68 23,778 (4,739) Commercial mortgage-backed securities 1 209 (20) 3 3,056 (105) 4 3,265 (125) Collateralized mortgage obligations 11 166 (6) 23 3,212 (473) 34 3,378 (479) Total debt securities available for sale 67 $7,377 $(193) 267 $102,547 $(14,449) 334 $109,924 $(14,642) December 31, 2022 Less than 12 months Greater than 12 months Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt Securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage-backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 $38,757 $(4,857) 133 $71,142 $(12,062) 338 $109,899 $(16,919) | The following table summarizes the aggregate fair value and gross unrealized losses, by security type, of the available-for-sale securities in unrealized loss positions. The table segregates the holdings based on the length of time that individual securities have been in a continuous unrealized loss position (dollars in thousands): December 31, 2022 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 8 $ 3,534 $ (135) 5 $ 3,964 $ (200) 13 $ 7,498 $ (335) State and local government 77 12,966 (2,318) 45 7,147 (2,354) 122 20,113 (4,672) Corporate debt 27 10,069 (1,373) 42 20,890 (3,415) 69 30,959 (4,788) Asset-backed securities 6 3,188 (76) 20 17,308 (1,170) 26 20,496 (1,246) Mortgage-backed securities 57 4,006 (573) 12 20,031 (4,584) 69 24,037 (5,157) Commercial mortgage -backed securities 4 3,205 (186) — — — 4 3,205 (186) Collateralized mortgage obligations 26 1,789 (196) 9 1,802 (339) 35 3,591 (535) Total debt securities available for sale 205 38,757 (4,857) 133 71,142 (12,062) 338 109,899 (16,919) December 31, 2021 Less than 12 months 12 months or More Total No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses No. of Issues Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Debt securities: U.S. Government 6 $10,323 $ (47) 1 $4,728 $(30) 7 $ 15,051 $ (77) State and local government 41 8,875 (172) 4 446 (17) 45 9,321 (189) Corporate debt 41 22,748 (505) 1 705 (45) 42 23,453 (550) Asset-backed securities 24 24,305 (219) 2 1,893 (5) 26 26,198 (224) Mortgage-backed securities 12 27,034 (762) — — — 12 27,034 (762) Commercial mortgage -backed securities 0 — 0 — — — 0 — 0 Collateralized mortgage obligations 10 2,638 (45) 2 29 — 12 2,667 (45) Total debt securities available for sale 134 $95,923 $(1,750) 10 $7,801 $(97) 144 $103,724 $(1,847) |
Schedule of Investment Income | The Company’s sources of net investment income and losses are as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities $ 853 $ 582 Equity securities 11 28 Cash, cash equivalents and short-term investments 503 1 Total investment income 1,367 611 Investment expenses (60) (104) Net investment income $1,307 $ 507 | The Company’s sources of net investment income are as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities $2,517 $2,217 $3,213 Equity securities 52 194 220 Cash, cash equivalents, and short-term investments 776 2 138 Total investment income 3,345 2,413 3,571 Investment expenses (302) (445) (415) Net investment income $3,043 $1,968 $3,156 |
Schedule of Gross Realized Gains and Losses on Securities | The following table summarizes the gross realized gains and losses from sales, calls and maturities of available-for-sale debt and equity securities (dollars in thousands): Three Months Ended March 31, 2023 2022 Debt securities: Gross realized gains $— $ — Gross realized losses — — Total debt securities — — Equity securities: Gross realized gains $— 19 Gross realized losses — (88) Total equity securities — (69) Total net realized investment gains (losses) $— $(69) | The following table summarizes the gross realized gains and losses from sales or maturities of available-for-sale debt securities and equity securities, as follows (dollars in thousands): December 31, 2022 2021 2020 Debt securities: Gross realized gains $ 6 $ 63 $ 4,646 Gross realized losses (155) (6) (8) Total debt securities (149) 57 4,638 Equity securities: Gross realized gains 375 4,605 4,854 Gross realized losses (1,731) (1,784) (1,366) Total equity securities (1,356) 2,821 3,488 Total net realized investment gains $(1,505) $ 2,878 $ 8,126 |
Summary of Amortized Cost and Fair Value of Securities | The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at March 31, 2023. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,668 $ 4,592 Due after one year through five years 28,614 26,543 Due after five years through ten years 23,810 20,267 Due after ten years 11,261 8,698 Securities with contractual maturities 68,353 60,100 Asset-backed securities 21,150 20,105 Mortgage-backed securities 28,524 23,785 Commercial mortgage-backed securities 3,413 3,288 Collateralized mortgage obligations 3,834 3,355 Total debt securities $125,274 $110,633 | The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at December 31, 2022. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 4,876 $ 4,770 Due after one year through five years 28,396 25,963 Due after five years through ten years 23,974 19,782 Amortized Cost Estimated Fair Value Due after ten years 11,421 8,358 Securities with contractual maturities 68,667 58,873 Asset-backed securities 21,742 20,496 Mortgage-backed securities 29,194 24,037 Commercial mortgage-backed securities 3,414 3,228 Collateralized mortgage obligations 4,102 3,567 Total debt securities $127,119 $110,201 |
Fair Value Measurements (FY) (T
Fair Value Measurements (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Summary of Assets and Liabilities Measured at Fair Value | The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 6,971 $ — $ 6,971 $ — State and local government 22,198 — 22,198 — Corporate debt 30,931 — 30,931 — Asset-backed securities 20,105 — 20,105 — Mortgage-backed securities 23,785 — 23,785 — Commercial mortgage-backed securities 3,288 — 3,288 — Collateralized mortgage obligations 3,355 — 3,355 — Total debt securities 110,633 — 110,633 — Equity Securities 965 208 757 — Short-term investments 28,055 28,055 — — Total marketable investments measured at fair value $139,653 $28,263 $ 111,390 $ — Investments measured at NAV: Investment in limited partnership 1,460 Total assets measured at fair value $ 141,113 Liabilities: Senior Unsecured Notes* $ 22,567 $ — $ 22,567 $ — Subordinated Notes* 11,685 — — 11,685 Total Liabilities (non-recurring fair value measure) $ 34,252 $ — $ 22,567 $11,685 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $— State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $— December 31, 2022 Fair Value Measurements Total Level 1 Level 2 Level 3 Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes* $ 22,430 $— $22,430 $ — Subordinated Notes* 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure) $ 33,730 $— $22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets | The following tables present the Company’s assets and liabilities measured at fair value, classified by the valuation hierarchy as of December 31, 2022 and 2021 (dollars in thousands): December 31, 2022 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 7,498 $ — $ 7,498 $ — State and local government 20,816 — 20,816 — Corporate debt 30,559 — 30,559 — Asset-backed securities 20,496 — 20,496 — Mortgage-backed securities 24,037 — 24,037 — Commercial mortgage-backed securities 3,228 — 3,228 — Collateralized mortgage obligations 3,567 — 3,567 — Total debt securities 110,201 — 110,201 — Equity Securities 917 160 757 — Short-term investments 25,929 25,929 — — Total marketable investments measured at fair value $137,047 $26,089 $110,958 $ — Investments measured at NAV: Investment in limited partnership 350 Total assets measured at fair value $137,397 Liabilities: Senior Unsecured Notes * $ 22,430 $ — $ 22,430 $ — Subordinated Notes * 11,300 — — 11,300 Total Liabilities (non-recurring fair value measure $ 33,730 $ — $ 22,430 $11,300 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 20,720 $ — $ 20,720 $— State and local government 30,429 — 30,429 — Corporate debt 30,346 — 30,346 — Asset-backed securities 28,438 — 28,438 — Mortgage-backed securities 32,521 — 32,521 — Commercial mortgage-backed securities 1,690 — 1,690 — Collateralized mortgage obligations 5,639 — 5,639 — Total debt securities 149,783 — 149,783 — Equity Securities 9,437 9,154 283 — Short-term investments 23,013 23,013 — — Total marketable investments measured at fair value $182,233 $32,167 $150,066 $— Investments measured at NAV: Investment in limited partnership 494 Total assets measured at fair value $182,727 December 31, 2021 Fair Value Measurements Using Total Level 1 Level 2 Level 3 Liabilities: Senior Unsecured Notes * $24,118 $— $24,118 $ — Subordinated Notes * 11,704 — — 11,704 Total Liabilities measured at fair value $35,822 $— $24,118 $11,704 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheet |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Summary of Deferred Policy Acquisition Costs | The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Balance at beginning of period $10,290 $12,267 Deferred policy acquisition costs 2,757 3,321 Amortization of policy acquisition costs (4,721) (5,464) Net change (1,964) (2,143) Balance at end of period $ 8,326 $10,124 | The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): December 31, 2022 2021 2020 Balance at beginning of period $ 12,267 $ 12,243 $ 11,906 Deferred policy acquisition costs 20,202 28,475 26,442 Amortization of policy acquisition costs (22,179) (28,451) (26,105) Net change (1,977) 24 337 Balance at end of period $ 10,290 $ 12,267 $ 12,243 |
Unpaid Losses and Loss Adjust_4
Unpaid Losses and Loss Adjustment Expenses (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||
Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense | The table below provides the changes in the reserves for losses and LAE, net of reinsurance recoverables, for the periods indicated as follows (dollars in thousands): Three months ended March 31, 2023 2022 Gross reserves - beginning of period $165,539 $139,085 Less: reinsurance recoverables on unpaid losses (82,651) (40,344) Net reserves - beginning of period 82,888 98,741 Add: incurred losses and LAE, net of reinsurance: Current period 14,926 12,497 Prior period (1,213) 5,521 Total net incurred losses and LAE 13,713 18,018 Deduct: loss and LAE payments, net of reinsurance: Current period 1,987 2,512 Prior period 10,353 13,914 Total net loss and LAE payments 12,340 16,426 Net reserves - end of period 84,261 100,333 Plus: reinsurance recoverables on unpaid losses 61,101 40,605 Gross reserves - end of period $145,362 $140,938 | The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands): December 31, 2022 2021 2020 Gross reserves - beginning of period $ 139,085 $ 111,270 $107,246 Less: reinsurance recoverables on unpaid losses 40,344 24,218 22,579 Net reserves - beginning of period 98,741 87,052 84,667 Add: incurred losses and loss adjustment expenses, net of reinsurance Current period 57,156 50,429 40,634 Prior period 24,284 19,432 15,594 Total net incurred losses and loss adjustment expenses 81,440 69,861 56,228 December 31, 2022 2021 2020 Deduct: loss and loss adjustment expense payments, net of reinsurance Current period 20,894 18,984 13,599 Prior period 76,399 39,188 40,244 Total net loss and loss adjustment expense payments 97,293 58,172 53,843 Net reserves - end of period 82,888 98,741 87,052 Plus: reinsurance recoverables on unpaid losses 82,651 40,344 24,218 Gross reserves - end of period $165,539 $139,085 $111,270 |
Short-duration Insurance Contracts, Claims Development | The following tables represent cumulative incurred loss and allocated loss adjustment expenses (“ALAE”), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2013 to 2022, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2022, by reportable segment and accident year (dollars in thousands). The tables do not include reinsurance recoverables from the LPT. Commercial Lines Accident Year Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 10,018 9,435 9,893 10,237 11,252 11,218 11,624 11,804 11,867 12,046 — 613 2014 19,709 19,907 22,711 26,367 28,145 28,766 29,045 29,175 29,011 — 1,754 2015 22,442 26,633 31,861 34,478 36,372 37,795 38,824 39,093 26 2,361 2016 32,396 34,935 40,440 44,355 46,089 46,993 48,677 201 3,557 2017 44,251 44,495 49,749 51,883 55,589 56,649 671 5,832 2018 42,624 42,432 49,741 55,261 60,102 1,637 6,124 2019 41,286 42,129 46,329 55,263 4,529 6,320 2020 33,867 35,328 39,193 3,787 3,830 2021 40,388 42,266 8,744 2,861 2022 41,708 16,067 1,965 Total $424,008 $35,662 Commercial lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 3,979 6,211 7,643 8,622 10,147 10,650 11,137 11,620 11,702 11,935 2014 8,715 13,977 17,458 22,446 25,609 27,544 28,389 28,648 28,608 2015 10,470 17,817 22,549 30,475 34,497 35,833 37,563 38,685 2016 10,255 19,135 27,785 37,967 41,945 43,644 46,957 2017 12,448 23,020 34,205 42,308 47,148 52,800 2018 10,375 19,799 31,633 41,577 50,508 2019 10,078 20,462 28,958 39,893 2020 10,217 17,332 24,225 2021 12,870 21,313 2022 12,839 Total $327,763 Net Unpaid losses and ALAE, years 2013 through 2022 $ 96,245 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid Losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 70,509 * Presented as unaudited required supplementary information. Personal Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 18,034 17,996 18,925 19,138 19,167 19,202 19,222 19,226 19,227 19,365 — 5,208 2014 17,951 17,471 17,735 17,880 17,929 18,082 18,095 18,097 18,052 — 3,737 2015 10,877 13,445 14,721 15,285 15,364 15,427 15,427 15,448 — 2,152 2016 11,619 13,418 14,949 15,550 15,655 15,634 15,679 — 1,814 2017 14,058 13,550 14,493 14,793 14,911 14,957 — 2,917 2018 5,893 6,378 6,283 6,382 6,298 — 803 2019 3,099 2,712 2,898 2,862 — 342 2020 2,339 2,590 2,636 — 366 2021 4,409 4,332 116 580 2022 9,404 1,427 652 Total $109,033 $1,543 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 9,955 15,883 18,052 18,600 19,014 19,174 19,214 19,222 19,227 19,365 2014 12,819 16,515 17,260 17,746 17,855 18,047 18,068 18,070 18,025 2015 7,771 11,873 13,844 15,159 15,250 15,290 15,416 15,444 2016 7,119 11,238 14,442 15,110 15,351 15,452 15,679 2017 8,320 12,944 14,004 14,526 14,866 14,957 2018 4,296 5,618 6,100 6,242 6,244 2019 2,119 2,604 2,692 2,850 2020 1,307 2,455 2,605 Personal lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2021 3,022 3,980 2022 5,397 Total $104,546 Net Unpaid losses and ALAE, years 2013 through 2022 $ 4,487 Unpaid losses and ALAE, prior to 2013 * — Unpaid losses and ALAE, net of reinsurance $ 4,487 * Presented as unaudited required supplementary information. Total Lines Incurred loss and allocated loss adjustment expenses, net of reinsurance Total IBNR Cumulative number of reported claims Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2022 2022 2013 28,052 27,431 28,817 29,375 30,419 30,420 30,846 31,030 31,094 31,411 — 5,821 2014 37,660 37,378 40,446 44,247 46,074 46,848 47,140 47,272 47,063 — 5,491 2015 33,319 40,078 46,581 49,763 51,736 53,222 54,251 54,541 26 4,513 2016 44,015 48,353 55,389 59,905 61,744 62,627 64,356 201 5,371 2017 58,309 58,045 64,242 66,676 70,500 71,606 671 8,749 2018 48,517 48,810 56,024 61,643 66,400 1,637 6,927 2019 44,385 44,841 49,227 58,125 4,529 6,662 2020 36,206 37,918 41,829 3,787 4,196 2021 44,797 46,598 8,860 3,441 2022 51,112 17,494 2,617 Total 533,041 37,205 Total lines Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance Accident Year For the years ended December 31, 2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020 * 2021 * 2022 2013 13,934 22,094 25,695 27,223 29,162 29,824 30,351 30,842 30,929 31,300 2014 21,534 30,492 34,718 40,192 43,464 45,591 46,457 46,718 46,633 2015 18,241 29,690 36,393 45,634 49,747 51,123 52,979 54,129 2016 17,374 30,373 42,227 53,077 57,296 59,096 62,636 2017 20,768 35,964 48,209 56,834 62,014 67,757 2018 14,671 25,417 37,733 47,819 56,752 2019 12,197 23,066 31,650 42,743 2020 11,524 19,787 26,830 2021 15,892 25,293 2022 18,236 Total $432,309 Net Unpaid losses and ALAE, years 2013 through 2022 $100,732 Unpaid losses and ALAE, prior to 2013 * 177 Unpaid losses, LPT (25,913) Unpaid losses and ALAE, net of reinsurance $ 74,996 * Presented as unaudited required supplementary information. | |
Short-duration Insurance Contracts, Reconciliation of Loss Development to Liability | The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2022, by reportable segment (dollars in thousands). December 31, 2022 Net unpaid losses claims and ALAE Commercial Lines $ 70,509 Personal Lines 4,487 Total unpaid losses and LAE, net of reinsurance 74,996 Reinsurance recoverable on losses and LAE Commercial Lines 81,301 Personal Lines 1,350 Total reinsurance recoverable on unpaid losses and LAE 82,651 ULAE expense 7,892 Total gross unpaid losses and LAE $165,539 | |
Loss Duration Schedule | The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment. Average annual percentage payout of incurred losses by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10+ Commercial Lines 34.4% 23.0% 17.7% 10.0% 8.0% 3.6% 1.8% 0.8% 0.4% 0.3% Personal Lines 69.4% 16.6% 10.1% 2.6% 0.9% 0.2% 0.1% 0.1% 0.0% 0.0% Total Lines 35.7% 22.8% 17.5% 9.7% 7.7% 3.5% 1.7% 0.8% 0.4% 0.2% |
Reinsurance (FY) (Tables)
Reinsurance (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Summary of the Effects of Reinsurance | The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands): Three Months Ended March 31, 2023 2022 Written premiums: Direct $ 24,341 $ 24,796 Assumed 11,873 8,168 Ceded (17,872) (14,943) Net written premiums $ 18,342 $ 18,021 Earned premiums: Direct $ 23,315 $ 24,123 Assumed 10,979 8,641 Ceded (12,342) (8,809) Net earned premiums $ 21,952 $ 23,955 Losses and LAE: Direct $ 1,969 $ 13,066 Assumed 1,497 7,408 Ceded 10,247 (2,456) Net Losses and LAE $ 13,713 $ 18,018 | The following table presents the effects of reinsurance and assumption transactions on written premiums, earned premiums and losses and LAE (dollars in thousands). In 2022, ceded written and earned premium amounts included $1.6 million of reinsurance reinstatement costs relating to Hurricane Ian. In 2021, ceded written and earned amounts included $340,000 of reinsurance reinstatement costs relating to Winter Storm Uri. In 2021 and 2020, the ceded written and earned premium amounts include $86,000 and $195,000 of reinsurance reinstatement costs relating to Hurricane Irma, respectively. Year Ended December 31, 2022 2021 2020 Written premiums: Direct $ 95,832 $ 97,801 $ 82,430 Assumed 42,187 34,294 28,905 Ceded (46,787) (30,666) (18,395) Net written premiums $ 91,232 $101,429 $ 92,940 Earned premiums: Direct $ 97,843 $ 91,943 $ 75,130 Assumed 37,558 31,107 31,484 Ceded (38,690) (24,248) (17,511) Net earned premiums $ 96,711 $ 98,802 $ 89,103 Loss and loss adjustment expenses: Direct $ 73,000 $ 71,021 $ 48,780 Assumed 43,487 25,740 24,429 Ceded (35,047) (26,900) (16,981) Net loss and LAE $ 81,440 $ 69,861 $ 56,228 |
Debt (FY) (Tables)
Debt (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Schedule of Outstanding Senior Debt | A summary of the Company's outstanding debt is as follows (dollars in thousands): March 31, 2023 December 31, 2022 Senior unsecured notes $24,251 $24,186 Subordinated notes 9,703 9,690 Total $33,954 $33,876 | A summary of the Company's outstanding debt is as follows (dollars in thousands): December 31, 2022 2021 Senior unsecured notes $24,186 $23,926 Subordinated notes 9,690 9,638 Total $33,876 $33,564 |
Income Taxes (FY) (Tables)
Income Taxes (FY) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The income tax expense (benefit) is comprised of the following (dollars in thousands): Year Ended December 31, 2022 2021 2020 Current tax expense (benefit) $ (45) $208 $ 6 Deferred tax expense (benefit) (9,396) — — Total income tax expense (benefit) $(9,441) $208 $ 6 |
Summary of Income Tax Expense (Benefit) Reconciliation | The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2022, 2021 and 2020 to pretax income as a result of the following (dollars in thousands): Year Ended December 31, 2022 2021 2020 Income (loss) before income taxes $(20,490) $(1,710) $(238) Statutory U.S. federal income tax rate (4,303) (359) (50) State income taxes, net of federal benefit (5,984) 174 44 Tax-exempt investment income and dividend received deduction (22) (40) (50) Nondeductible meals and entertainment 79 33 23 Valuation allowance on deferred tax assets 3,715 676 (205) Equity-earnings from Affiliate 195 170 88 Net gain from sale of agency assets (2,848) — — Utilization of state NOLs (386) — — PPP Loan forgiveness — (578) — Other 113 132 156 Income tax expense (benefit) $ (9,441) $ 208 $ 6 Effective tax rate 46.1% (12.2)% (2.6)% |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands): December 31, 2022 2021 Deferred tax assets: Discounted unpaid losses and loss adjustment expenses $ 1,217 $ 1,555 Unearned premiums 2,324 2,561 Net operating loss carryforwards 12,152 12,544 Net unrealized losses on investments 3,687 418 State net operating loss carryforwards 5,097 822 Other 403 102 Gross deferred tax assets 24,880 18,002 Less valuation allowance (21,663) (14,594) Total deferred tax assets, net of allowance 3,217 3,408 Deferred tax liabilities: Investment basis difference 23 15 Tax rate change transition discounting 137 183 Equity investment in Affiliate 691 470 Net unrealized gains on investments — — Deferred policy acquisition costs 2,161 2,576 Intangible assets 115 115 Property and equipment 41 47 Other 49 2 Total deferred tax liabilities 3,217 3,408 Net deferred tax liability $ — $ — |
Statutory Financial Data, Ris_2
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions (FY) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Summary of Statutory Basis Information | Summarized 2022, 2021 and 2020 statutory basis information for the non-captive Insurance Company Subsidiaries, which differs from generally accepted accounting principles, is as follows (dollars in thousands). CIC WPIC 2022 Statutory capital and surplus $47,827 $20,651 RBC authorized control level 15,541 5,098 Statutory net income (loss) (6,846) (4,171) RBC % 308% 405% CIC WPIC 2021 Statutory capital and surplus $50,194 $23,603 RBC authorized control level 15,868 5,331 Statutory net income (loss) (9,161) (614) RBC % 316% 443% CIC WPIC 2020 Statutory capital and surplus $49,271 $24,723 RBC authorized control level 14,221 4,547 Statutory net income (loss) 2,059 1,024 RBC % 346% 544% |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Three months ended March 31, 2023 2022 Balance at beginning of period $(18,203) $(2,110) Other comprehensive income (loss) before reclassifications, net of tax 2,286 (7,287) Less: amounts reclassified from accumulated other comprehensive income (loss), net of tax — — Net other comprehensive income (loss) 2,286 (7,287) Balance at end of period $(15,917) $(9,397) | The following table presents changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities (dollars in thousands): Year Ended December 31, 2022 2021 Balance at beginning of period $ (2,110) $ 912 Other comprehensive income (loss) before reclassifications (16,024) (2,937) Less: amounts reclassified from accumulated other comprehensive income (loss) 69 85 Net current period other comprehensive income (loss) (16,093) (3,022) Balance at end of period $(18,203) $(2,110) |
Earnings Per Share (FY) (Tables
Earnings Per Share (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share | The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except per share and share amounts): Three Months Ended March 31, 2023 2022 Net income (loss) $ 1,001 $ (2,870) Weighted average common shares, basic and diluted* 12,215,849 9,707,817 Earnings (loss) per common share, basic and diluted $ 0.08 $ (0.30) * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. | The following table presents the calculation of basic and diluted earnings (loss) per common share, as follows (dollars in thousands, except share and per share amounts): Year Ended December 31, 2022 2021 2020 Net income (loss) $ (10,681) $ (1,094) $ 595 Weighted average common shares, basic and diluted* 10,692,090 9,691,998 9,625,059 Earnings (loss) per share, basic and diluted ( 1.00 $ (0.11) $ 0.06 * The non-vested shares of the restricted stock units and stock options were anti-dilutive as of December 31, 2022, 2021, and 2020. Therefore, the non-vested shares are excluded from earnings (loss) per share for the years ended December 31, 2022, 2021, and 2020. |
Segment Information (FY) (Table
Segment Information (FY) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting [Abstract] | ||
Schedule of Information by Reportable Segment | The following tables present information by reportable operating segment (dollars in thousands): Three months ended March 31, 2023 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,975 $7,239 $36,214 $ — $ — $ — $36,214 Net written premiums $12,241 $6,101 $18,342 $ — $ — $ — $18,342 Net earned premiums $17,123 $4,829 $21,952 $ — $ — $ — $21,952 Other income 52 23 75 879 72 (400) 626 Segment revenue 17,175 4,852 22,027 879 72 (400) 22,578 Losses and LAE, net 10,547 3,166 13,713 — — — 13,713 Policy acquisition costs 3,196 1,389 4,585 548 — (412) 4,721 Operating expenses 3,028 592 3,620 352 307 — 4,279 Segment expenses 16,771 5,147 21,918 900 307 (412) 22,713 Segment gain (loss) $ 404 $ (295) $ 109 $ (21) $ (235) $ 12 $ (135) Investment income 1,307 1,307 Net realized investment gains (losses) — — Change in fair value of equity securities 694 694 Other gains (losses) — — Interest expense (686) (686) Income (loss) before equity earnings in Affiliate and income taxes $ 404 $ (295) $ 109 $ (21) $1,080 $ 12 $ 1,180 Three months ended March 31, 2022 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $28,586 $4,378 $32,964 $ — $ — $ — $32,964 Net written premiums $14,340 $3,681 $18,021 $ — $ — $ — $18,021 Net earned premiums $20,524 $3,431 $23,955 $ — $ — $ — $23,955 Other income 71 6 77 1,112 147 (638) 698 Segment revenue 20,595 3,437 24,032 1,112 147 (638) 24,653 Losses and LAE, net 16,610 1,408 18,018 — — — 18,018 Policy acquisition costs 4,357 1,093 5,450 758 — (744) 5,464 Operating expenses 3,161 402 3,563 292 305 — 4,160 Segment expenses 24,128 2,903 27,031 1,050 305 (744) 27,642 Segment gain (loss) $ (3,533) $ 534 $ (2,999) $ 62 $(158) $ 106 $ (2,989) Investment income 507 507 Net realized investment gains (losses) (69) (69) Change in fair value of equity securities 280 280 Other gains (5) (5) Interest expense (711) (711) Income (loss) before equity earnings in Affiliate and income taxes $ (3,533) $ 534 $ (2,999) $ 62 $(156) $ 106 $ (2,987) | The following table summarizes our net earned premiums: Net Earned Premium 2022 2021 2020 Commercial 84% 89% 92% Personal 16% 11% 8% Total 100% 100% 100% The wholesale agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the wholesale agency business and are eliminated in the Eliminations category. In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team, some finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments. The following tables present information by reportable segment (dollars in thousands): Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $ 116,868 $21,151 $138,019 $ — $ — $ — $138,019 Net written premiums $ 72,318 $18,914 $ 91,232 $ — $ — $ — $ 91,232 Net earned premiums $ 80,823 $15,888 $ 96,711 $ — $ — $ — $ 96,711 Other income 245 82 327 5,712 271 (3,542) 2,768 Segment revenue 81,068 15,970 97,038 5,712 271 (3,542) 99,479 Loss and loss adjustment expenses, net 70,762 10,678 81,440 — — — 81,440 Policy acquisition costs 17,682 4,604 22,286 3,653 — (3,760) 22,179 Operating expenses 13,069 1,936 15,005 2,612 1,192 (20) 18,789 Loss portfolio transfer risk fee 5,400 — — — — — 5,400 Segment expenses 106,913 17,218 118,731 6,265 1,192 (3,780) 127,808 Year Ended December 31, 2022 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Segment underwriting gain (loss) (25,845) ( 1,248 (21,693) (553) (921) 238 (28,329) Net investment income 32 3,011 3,043 Net realized investment gains (losses) (1,505) (1,505) Change in fair value of equity securities 403 403 Gain from VSRM Transaction 8,810 8,810 Other gains (1) 60 59 Interest expense (42) (2,929) (2,971) Income (loss) before income taxes $ (25,845) $(1,248) $(21,693) $(564) $ 6,929 $ 238 $ (20,490) Selected Balance Sheet Data: Deferred policy acquisition costs $ 7,683 $ 2,796 $(189) $ 10,290 Unearned premiums 56,565 11,322 67,887 Unpaid losses and loss adjustment expenses 159,558 5,981 165,539 Year Ended December 31, 2021 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $117,075 $15,020 $132,095 $ — $ — $ — $132,095 Net written premiums $ 87,307 $14,122 $101,429 $ — $ — $ — $101,429 Net earned premiums $ 87,759 $11,043 $ 98,802 $ — $ — $ — $ 98,802 Other income 215 143 358 5,848 365 (3,900) 2,671 Segment revenue 87,974 11,186 99,160 5,848 365 (3,900) 101,473 Loss and loss adjustment expenses, net 63,868 5,993 69,861 — — — 69,861 Policy acquisition costs 25,687 3,307 28,994 3,727 — (4,270) 28,451 Operating expenses 11,648 1,357 13,005 2,382 1,122 — 16,509 Segment expenses 101,203 10,657 111,860 6,109 1,122 (4,270) 114,821 Segment underwriting gain (loss) (13,229) 529 (12,700) (261) (757) $ 370 (13,348) Net investment income 1,968 1,968 Net realized investment gains 2,878 2,878 Change in fair value of equity securities (2,020) (2,020) Other gains 11,664 11,664 Interest expense (2,852) (2,852) Income (loss) before income taxes $ (13,229) $ 529 $ (12,700) $ (261) $10,881 $ 370 $ (1,710) Selected Balance Sheet Data: Deferred policy acquisition costs $ 10,619 $ 2,075 $ (427) $ 12,267 Unearned premiums 57,491 7,778 65,269 Unpaid losses and loss adjustment expenses 135,084 4,001 139,085 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Gross written premiums $102,763 $8,572 $111,335 $— $— $— $111,335 Year Ended December 31, 2020 Commercial Lines Personal Lines Under- writing Wholesale Agency Corp- orate Elim- inations Total Net written premiums $ 85,385 $7,555 $92,940 $ — $ — $ — $ 92,940 Net earned premiums $ 82,409 $6,694 $89,103 $ — $ — $ — $ 89,103 Other income 242 150 392 7,571 245 (5,593) 2,615 Segment revenue 82,651 6,844 89,495 7,571 245 (5,593) 91,718 Loss and loss adjustment expenses, net 53,263 2,965 56,228 — — — 56,228 Policy acquisition costs 25,051 2,044 27,095 4,938 — (5,928) 26,105 Operating expenses 12,644 1,069 13,713 3,107 1,648 — 18,468 Segment expenses 90,958 6,078 97,036 8,045 1,648 (5,928) 100,801 Segment underwriting gain (loss) (8,307) 766 (7,541) (474) (1,403) $ 335 (9,083) Net investment income 3,156 3,156 Net realized investment gains 8,126 8,126 Change in fair value of equity securities 228 228 Other gains 260 260 Interest expense (2,925) (2,925) Income (loss) before income taxes $ (8,307) $ 766 $(7,541) $ (474) $ 7,442 $ 335 $ (238) Selected Balance Sheet Data: Deferred policy acquisition costs $ 11,858 $1,183 $ (798) $ 12,243 Unearned premiums 51,535 4,689 56,224 Unpaid losses and loss adjustment expenses 106,662 4,608 111,270 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Q1) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 State Class_business | Dec. 31, 2022 State Class_business | |
Accounting Policies [Abstract] | ||
Non Controlling Interest | 50% | |
Number of types of business | Class_business | 3 | 3 |
Number of states in which entity operates | State | 50 | 50 |
Investments - Narrative (Q1) (D
Investments - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||||||
Gross unrealized gain (loss) on available for sale securities | $ 14,600,000 | |||||
Proceeds from available-for-sale debt securities | 23,600,000 | $ 6,700,000 | $ 32,000,000 | $ 31,700,000 | $ 101,200,000 | |
Gross realized gains from sales of available-for-sale debt securities | 5,000 | 27,000 | $ 4,600,000 | |||
Gross realized losses from sales of available-for-sale debt securities | 155,000 | 6,000 | 0 | |||
Gross realized gains or losses from sale of available-for-sale debt securities | 0 | 0 | (149,000) | 57,000 | 4,638,000 | |
Amount payable for securities purchased | 0 | 750,000 | 0 | 1,000,000 | 700,000 | |
Amount receivable for securities sold | 0 | $ 1,300,000 | 650,000 | 523,000 | 809,000 | |
Gross unrealized gains | 523,000 | 0 | 0 | 1,000,000 | ||
Gross unrealized losses | 467,000 | 638,000 | 1,000,000 | $ 0 | ||
Other than temporary impairments losses, investments | 0 | 0 | ||||
Investments | 1,400,000 | 1,800,000 | ||||
Deposits held in trust accounts | 8,100,000 | 8,000,000 | 8,500,000 | |||
Deposits, held in trust for collateral requirements | $ 98,100,000 | $ 95,700,000 | $ 76,100,000 |
Investments - Available-for-sal
Investments - Available-for-sale Securities (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | $ 125,274 | $ 127,119 | $ 150,732 |
Debt securities, Gross Unrealized Gain | 1 | 1 | 898 |
Debt securities, Gross Unrealized Losses | (14,642) | (16,919) | (1,847) |
Debt securities, Estimated Fair Value | 110,633 | 110,201 | 149,783 |
U.S. Government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 7,220 | 7,833 | 20,723 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 74 |
Debt securities, Gross Unrealized Losses | (249) | (335) | (77) |
Debt securities, Estimated Fair Value | 6,971 | 7,498 | 20,720 |
State and local government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 26,063 | 25,487 | 30,063 |
Debt securities, Gross Unrealized Gain | 1 | 1 | 555 |
Debt securities, Gross Unrealized Losses | (3,866) | (4,672) | (189) |
Debt securities, Estimated Fair Value | 22,198 | 20,816 | 30,429 |
Corporate debt | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 35,070 | 35,347 | 30,808 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 88 |
Debt securities, Gross Unrealized Losses | (4,139) | (4,788) | (550) |
Debt securities, Estimated Fair Value | 30,931 | 30,559 | 30,346 |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 21,150 | 21,742 | 28,652 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 10 |
Debt securities, Gross Unrealized Losses | (1,045) | (1,246) | (224) |
Debt securities, Estimated Fair Value | 20,105 | 20,496 | 28,438 |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 28,524 | 29,194 | 33,178 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 105 |
Debt securities, Gross Unrealized Losses | (4,739) | (5,157) | (762) |
Debt securities, Estimated Fair Value | 23,785 | 24,037 | 32,521 |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 3,413 | 3,414 | 1,659 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 31 |
Debt securities, Gross Unrealized Losses | (125) | (186) | 0 |
Debt securities, Estimated Fair Value | 3,288 | 3,228 | 1,690 |
Collateralized mortgage obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 3,834 | 4,102 | 5,649 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 35 |
Debt securities, Gross Unrealized Losses | (479) | (535) | (45) |
Debt securities, Estimated Fair Value | $ 3,355 | $ 3,567 | $ 5,639 |
Investments - Available-for-s_2
Investments - Available-for-sale Securities in Unrealized Loss Positions (Q1) (Details) $ in Thousands | Mar. 31, 2023 USD ($) Security | Dec. 31, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 67 | 205 | 134 |
Debt securities, greater than 12 months, number of issues | Security | 267 | 133 | 10 |
Debt securities, number of issues | Security | 334 | 338 | 144 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 7,377 | $ 38,757 | $ 95,923 |
Debt securities, greater than 12 months, fair value | 102,547 | 71,142 | 7,801 |
Debt securities, fair value | 109,924 | 109,899 | 103,724 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (193) | (4,857) | (1,750) |
Debt securities, greater than 12 months, unrealized losses | (14,449) | (12,062) | (97) |
Debt securities, total unrealized losses | $ (14,642) | $ (16,919) | $ (1,847) |
U.S. Government | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 2 | 8 | 6 |
Debt securities, greater than 12 months, number of issues | Security | 10 | 5 | 1 |
Debt securities, number of issues | Security | 12 | 13 | 7 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 900 | $ 3,534 | $ 10,323 |
Debt securities, greater than 12 months, fair value | 6,071 | 3,964 | 4,728 |
Debt securities, fair value | 6,971 | 7,498 | 15,051 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (6) | (135) | (47) |
Debt securities, greater than 12 months, unrealized losses | (243) | (200) | (30) |
Debt securities, total unrealized losses | $ (249) | $ (335) | $ (77) |
State and local government | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 13 | 77 | 41 |
Debt securities, greater than 12 months, number of issues | Security | 110 | 45 | 4 |
Debt securities, number of issues | Security | 123 | 122 | 45 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 3,229 | $ 12,966 | $ 8,875 |
Debt securities, greater than 12 months, fair value | 18,267 | 7,147 | 446 |
Debt securities, fair value | 21,496 | 20,113 | 9,321 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (80) | (2,318) | (172) |
Debt securities, greater than 12 months, unrealized losses | (3,786) | (2,354) | (17) |
Debt securities, total unrealized losses | $ (3,866) | $ (4,672) | $ (189) |
Corporate debt | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 4 | 27 | 41 |
Debt securities, greater than 12 months, number of issues | Security | 64 | 42 | 1 |
Debt securities, number of issues | Security | 68 | 69 | 42 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 1,509 | $ 10,069 | $ 22,748 |
Debt securities, greater than 12 months, fair value | 29,422 | 20,890 | 705 |
Debt securities, fair value | 30,931 | 30,959 | 23,453 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (41) | (1,373) | (505) |
Debt securities, greater than 12 months, unrealized losses | (4,098) | (3,415) | (45) |
Debt securities, total unrealized losses | $ (4,139) | $ (4,788) | $ (550) |
Asset-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 3 | 6 | 24 |
Debt securities, greater than 12 months, number of issues | Security | 22 | 20 | 2 |
Debt securities, number of issues | Security | 25 | 26 | 26 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 1,085 | $ 3,188 | $ 24,305 |
Debt securities, greater than 12 months, fair value | 19,020 | 17,308 | 1,893 |
Debt securities, fair value | 20,105 | 20,496 | 26,198 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (28) | (76) | (219) |
Debt securities, greater than 12 months, unrealized losses | (1,017) | (1,170) | (5) |
Debt securities, total unrealized losses | $ (1,045) | $ (1,246) | $ (224) |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 33 | 57 | 12 |
Debt securities, greater than 12 months, number of issues | Security | 35 | 12 | 0 |
Debt securities, number of issues | Security | 68 | 69 | 12 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 279 | $ 4,006 | $ 27,034 |
Debt securities, greater than 12 months, fair value | 23,499 | 20,031 | 0 |
Debt securities, fair value | 23,778 | 24,037 | 27,034 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (12) | (573) | (762) |
Debt securities, greater than 12 months, unrealized losses | (4,727) | (4,584) | 0 |
Debt securities, total unrealized losses | $ (4,739) | $ (5,157) | $ (762) |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 1 | 4 | 0 |
Debt securities, greater than 12 months, number of issues | Security | 3 | 0 | 0 |
Debt securities, number of issues | Security | 4 | 4 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 209 | $ 3,205 | $ 0 |
Debt securities, greater than 12 months, fair value | 3,056 | 0 | 0 |
Debt securities, fair value | 3,265 | 3,205 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (20) | (186) | 0 |
Debt securities, greater than 12 months, unrealized losses | (105) | 0 | 0 |
Debt securities, total unrealized losses | $ (125) | $ (186) | $ 0 |
Collateralized mortgage obligations | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 11 | 26 | 10 |
Debt securities, greater than 12 months, number of issues | Security | 23 | 9 | 2 |
Debt securities, number of issues | Security | 34 | 35 | 12 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 166 | $ 1,789 | $ 2,638 |
Debt securities, greater than 12 months, fair value | 3,212 | 1,802 | 29 |
Debt securities, fair value | 3,378 | 3,591 | 2,667 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (6) | (196) | (45) |
Debt securities, greater than 12 months, unrealized losses | (473) | (339) | 0 |
Debt securities, total unrealized losses | $ (479) | $ (535) | $ (45) |
Investments - Net Investment In
Investments - Net Investment Income and Losses (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||||
Investment income | $ 1,367 | $ 611 | $ 3,345 | $ 2,413 | $ 3,571 |
Investment expenses | (60) | (104) | (302) | (445) | (415) |
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 |
Debt securities | |||||
Net Investment Income [Line Items] | |||||
Investment income | 853 | 582 | 2,517 | 2,217 | 3,213 |
Equity securities | |||||
Net Investment Income [Line Items] | |||||
Investment income | 11 | 28 | 52 | 194 | 220 |
Cash, cash equivalents and short-term investments | |||||
Net Investment Income [Line Items] | |||||
Investment income | $ 503 | $ 1 | $ 776 | $ 2 | $ 138 |
Investments - Gross Realized Ga
Investments - Gross Realized Gains and Losses (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt securities: | |||||
Gross realized gains | $ 0 | $ 0 | $ 6,000 | $ 63,000 | $ 4,646,000 |
Gross realized losses | 0 | 0 | (155,000) | (6,000) | (8,000) |
Total debt securities | 0 | 0 | (149,000) | 57,000 | 4,638,000 |
Equity securities: | |||||
Gross realized gains | 0 | 19,000 | 375,000 | 4,605,000 | 4,854,000 |
Gross realized losses | 0 | (88,000) | (1,731,000) | (1,784,000) | (1,366,000) |
Total equity securities | 0 | (69,000) | (1,356,000) | 2,821,000 | 3,488,000 |
Total net realized investment gains (losses) | $ 0 | $ (69,000) | $ (1,505,000) | $ 2,878,000 | $ 8,126,000 |
Investments - Available-for-s_3
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | |||
Due in one year or less | $ 4,668 | $ 4,876 | |
Due after one year through five years | 28,614 | 28,396 | |
Due after five years through ten years | 23,810 | 23,974 | |
Due after ten years | 11,261 | 11,421 | |
Securities with contractual maturities | 68,353 | 68,667 | |
Total debt securities | 125,274 | 127,119 | $ 150,732 |
Estimated Fair Value | |||
Due in one year or less | 4,592 | 4,770 | |
Due after one year through five years | 26,543 | 25,963 | |
Due after five years through ten years | 20,267 | 19,782 | |
Due after ten years | 8,698 | 8,358 | |
Securities with contractual maturities | 60,100 | 58,873 | |
Total debt securities | 110,633 | 110,201 | 149,783 |
Asset-backed securities | |||
Amortized Cost | |||
Total debt securities | 21,150 | 21,742 | 28,652 |
Estimated Fair Value | |||
Total debt securities | 20,105 | 20,496 | 28,438 |
Mortgage-backed securities | |||
Amortized Cost | |||
Total debt securities | 28,524 | 29,194 | 33,178 |
Estimated Fair Value | |||
Total debt securities | 23,785 | 24,037 | 32,521 |
Commercial mortgage-backed securities | |||
Amortized Cost | |||
Total debt securities | 3,413 | 3,414 | 1,659 |
Estimated Fair Value | |||
Total debt securities | 3,288 | 3,228 | 1,690 |
Collateralized mortgage obligations | |||
Amortized Cost | |||
Total debt securities | 3,834 | 4,102 | 5,649 |
Estimated Fair Value | |||
Total debt securities | $ 3,355 | $ 3,567 | $ 5,639 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Total debt securities | $ 110,633 | $ 110,201 | $ 149,783 |
Equity Securities | 965 | 917 | 9,437 |
Short-term investments | 28,055 | 25,929 | 23,013 |
Total marketable investments measured at fair value | 139,653 | 137,047 | 182,233 |
Total assets measured at fair value | 141,113 | 137,397 | 182,727 |
Liabilities: | |||
Total Liabilities (non-recurring fair value measure) | 34,252 | 33,730 | |
U.S. Government | |||
Assets: | |||
Total debt securities | 6,971 | 7,498 | 20,720 |
State and local government | |||
Assets: | |||
Total debt securities | 22,198 | 20,816 | 30,429 |
Corporate debt | |||
Assets: | |||
Total debt securities | 30,931 | 30,559 | 30,346 |
Asset-backed securities | |||
Assets: | |||
Total debt securities | 20,105 | 20,496 | 28,438 |
Mortgage-backed securities | |||
Assets: | |||
Total debt securities | 23,785 | 24,037 | 32,521 |
Commercial mortgage-backed securities | |||
Assets: | |||
Total debt securities | 3,288 | 3,228 | 1,690 |
Collateralized mortgage obligations | |||
Assets: | |||
Total debt securities | 3,355 | 3,567 | 5,639 |
Senior Unsecured Notes | |||
Liabilities: | |||
Debt | 22,567 | 22,430 | 24,118 |
Subordinated notes | |||
Liabilities: | |||
Debt | 11,685 | 11,300 | 11,704 |
Partnership interest | |||
Assets: | |||
Investments measured at NAV | 1,460 | 350 | 494 |
Level 1 | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Equity Securities | 208 | 160 | 9,154 |
Short-term investments | 28,055 | 25,929 | 23,013 |
Total marketable investments measured at fair value | 28,263 | 26,089 | 32,167 |
Liabilities: | |||
Total Liabilities (non-recurring fair value measure) | 0 | 0 | |
Level 1 | U.S. Government | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | State and local government | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Corporate debt | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Asset-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Mortgage-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Collateralized mortgage obligations | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 1 | Senior Unsecured Notes | |||
Liabilities: | |||
Debt | 0 | 0 | 0 |
Level 1 | Subordinated notes | |||
Liabilities: | |||
Debt | 0 | 0 | 0 |
Level 2 | |||
Assets: | |||
Total debt securities | 110,633 | 110,201 | 149,783 |
Equity Securities | 757 | 757 | 283 |
Short-term investments | 0 | 0 | |
Total marketable investments measured at fair value | 111,390 | 110,958 | 150,066 |
Liabilities: | |||
Total Liabilities (non-recurring fair value measure) | 22,567 | 22,430 | |
Level 2 | U.S. Government | |||
Assets: | |||
Total debt securities | 6,971 | 7,498 | 20,720 |
Level 2 | State and local government | |||
Assets: | |||
Total debt securities | 22,198 | 20,816 | 30,429 |
Level 2 | Corporate debt | |||
Assets: | |||
Total debt securities | 30,931 | 30,559 | 30,346 |
Level 2 | Asset-backed securities | |||
Assets: | |||
Total debt securities | 20,105 | 20,496 | 28,438 |
Level 2 | Mortgage-backed securities | |||
Assets: | |||
Total debt securities | 23,785 | 24,037 | 32,521 |
Level 2 | Commercial mortgage-backed securities | |||
Assets: | |||
Total debt securities | 3,288 | 3,228 | 1,690 |
Level 2 | Collateralized mortgage obligations | |||
Assets: | |||
Total debt securities | 3,355 | 3,567 | 5,639 |
Level 2 | Senior Unsecured Notes | |||
Liabilities: | |||
Debt | 22,567 | 22,430 | 24,118 |
Level 2 | Subordinated notes | |||
Liabilities: | |||
Debt | 0 | 0 | 0 |
Level 3 | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Equity Securities | 0 | 0 | 0 |
Short-term investments | 0 | 0 | 0 |
Total marketable investments measured at fair value | 0 | 0 | 0 |
Liabilities: | |||
Total Liabilities (non-recurring fair value measure) | 11,685 | 11,300 | |
Level 3 | U.S. Government | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | State and local government | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Corporate debt | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Asset-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Mortgage-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Collateralized mortgage obligations | |||
Assets: | |||
Total debt securities | 0 | 0 | 0 |
Level 3 | Senior Unsecured Notes | |||
Liabilities: | |||
Debt | 0 | 0 | 0 |
Level 3 | Subordinated notes | |||
Liabilities: | |||
Debt | $ 11,685 | $ 11,300 | $ 11,704 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Transfers into level 3 | $ 0 | $ 0 | |
Transfers out of level 3 | $ 0 | $ 0 | |
Level 1 | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Marketable investment percentage | 20% | 18% | |
Level 2 | |||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |||
Marketable investment percentage | 80% | 82% |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs - Activity in Deferred Policy Acquisition Costs (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
Balance at beginning of period | $ 10,290 | $ 12,267 | $ 12,267 | $ 12,243 | $ 11,906 |
Deferred policy acquisition costs | 2,757 | 3,321 | 20,202 | 28,475 | 26,442 |
Amortization of policy acquisition costs | (4,721) | (5,464) | (22,179) | (28,451) | (26,105) |
Net change | (1,964) | (2,143) | (1,977) | 24 | 337 |
Balance at end of period | $ 8,326 | $ 10,124 | $ 10,290 | $ 12,267 | $ 12,243 |
Unpaid Losses and Loss Adjust_5
Unpaid Losses and Loss Adjustment Expenses - Changes in the Liability for Unpaid Losses and Loss Adjustment Expenses (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross reserves - beginning of period | $ 165,539 | $ 139,085 | $ 139,085 | $ 111,270 | $ 107,246 |
Less: reinsurance recoverables on unpaid losses | (82,651) | (40,344) | (40,344) | (24,218) | (22,579) |
Net reserves - beginning of period | 82,888 | 98,741 | 98,741 | 87,052 | 84,667 |
Add: incurred losses and loss adjustment expenses, net of reinsurance | |||||
Current period | 14,926 | 12,497 | 57,156 | 50,429 | 40,634 |
Prior period | 1,213 | 5,521 | 24,284 | 19,432 | 15,594 |
Total net incurred losses and LAE | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 |
Deduct: loss and LAE payments, net of reinsurance: | |||||
Current period | 1,987 | 2,512 | 20,894 | 18,984 | 13,599 |
Prior period | 10,353 | 13,914 | 76,399 | 39,188 | 40,244 |
Total net loss and loss adjustment expense payments | 12,340 | 16,426 | 97,293 | 58,172 | 53,843 |
Net reserves - end of period | 84,261 | 100,333 | 82,888 | 98,741 | 87,052 |
Plus: reinsurance recoverables on unpaid losses | 61,101 | 40,605 | 82,651 | 40,344 | 24,218 |
Gross reserves - end of period | $ 145,362 | $ 140,938 | $ 165,539 | $ 139,085 | $ 111,270 |
Unpaid Losses and Loss Adjust_6
Unpaid Losses and Loss Adjustment Expenses - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Losses and loss adjustment expenses, net | $ 13,713,000 | $ 18,018,000 | $ 81,440,000 | $ 69,861,000 | $ 56,228,000 | |
Prior year adjustments | 1,213,000 | 5,521,000 | 24,284,000 | 19,432,000 | 15,594,000 | |
Loss Portfolio Transfer (LPT) | Minimum | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 2,400,000 | |||||
Loss Portfolio Transfer (LPT) | Maximum | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 20,000,000 | |||||
Winter Storm Uri | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Losses and loss adjustment expenses, net | $ 2,000,000 | |||||
Commercial Line | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 817,000 | 5,700,000 | 18,500,000 | 15,200,000 | ||
Personal Line | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 396,000 | 219,000 | $ 957,000 | $ 352,000 | ||
Accident Year 2019 | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 1,300,000 | 9,600,000 | ||||
Accident Year 2019 | Loss Portfolio Transfer (LPT) | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | $ 1,800,000 | |||||
2021 Accident Year | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 1,800,000 | |||||
Accident Year 2020 | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 1,500,000 | 4,000,000 | ||||
Accident Year 2017 | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | 1,500,000 | 3,700,000 | ||||
Accident Year 2018 | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior year adjustments | $ 1,300,000 | $ 5,200,000 |
Reinsurance - Narrative (Q1) (D
Reinsurance - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Nov. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Dec. 31, 2019 | |
Effects Of Reinsurance [Line Items] | ||||||||
Ceded premium written | $ 17,872,000 | $ 14,943,000 | $ 46,787,000 | $ 30,666,000 | $ 18,395,000 | |||
Ceded premiums earned | 12,342,000 | 8,809,000 | 38,690,000 | 24,248,000 | 17,511,000 | |||
Reinsurance recoverables on paid losses | 9,023,000 | 6,653,000 | 1,347,000 | |||||
Stated net reserves retained | 84,261,000 | 100,333,000 | 82,888,000 | 98,741,000 | 87,052,000 | $ 84,667,000 | ||
Losses and loss adjustment expenses, net | 13,713,000 | 18,018,000 | 81,440,000 | 69,861,000 | 56,228,000 | |||
Prior period | 1,213,000 | 5,521,000 | 24,284,000 | 19,432,000 | 15,594,000 | |||
Reinsurance recoverables on unpaid losses | 61,101,000 | 40,605,000 | 82,651,000 | 40,344,000 | 24,218,000 | $ 22,579,000 | ||
Accident Year 2019 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Prior period | $ 1,300,000 | 9,600,000 | ||||||
Loss Portfolio Transfer ("LPT") Reinsurance Agreement | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables on paid losses | 3,000,000 | 3,800,000 | ||||||
Reinsurance recoverables on unpaid losses | 22,000,000 | 25,900,000 | ||||||
Loss Portfolio Transfer ("LPT") Reinsurance Agreement | Minimum | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables on paid losses | $ 46,300,000 | |||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Stated net reserves retained | $ 40,800,000 | |||||||
Losses and loss adjustment expenses, net | 5,500,000 | |||||||
Amount reinsured | 40,800,000 | |||||||
One-time risk fee retained | 5,400,000 | |||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | Maximum | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables on paid losses | 66,300,000 | |||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | Minimum | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables on paid losses | 46,300,000 | |||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | Accident Year 2019 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables on paid losses | 66,300,000 | |||||||
Stated net reserves retained | $ 40,800,000 | |||||||
Prior period | $ 20,000,000 | |||||||
100% Cede of Commercial Liability Risks In Excess of $400,000 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | 340,000 | 400,000 | 400,000 | ||||
Corridor | Agreement Between Cic And Wpic And Fleming Re | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Losses and loss adjustment expenses, net | 5,500,000 | 5,500,000 | ||||||
Layer | Agreement Between Cic And Wpic And Fleming Re | Maximum | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Losses and loss adjustment expenses, net | 20,000,000 | 20,000,000 | ||||||
Layer | Agreement Between Cic And Wpic And Fleming Re | Minimum | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Losses and loss adjustment expenses, net | 2,400,000 | 644,000 | ||||||
Ceded Commercial Property Risks In Excess of $200,000 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 400,000 | 300,000 | ||||||
Ceded Homeowners Specific Risks In Excess of $300,000 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | $ 300,000 | 300,000 | 300,000 | 300,000 | ||||
Ceded Commercial Property Risks In Excess of $400,000 | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Amount retained (excess of) | 300,000 | 200,000 | ||||||
Hurricane | ||||||||
Effects Of Reinsurance [Line Items] | ||||||||
Ceded premium written | 1,600,000 | 86,000 | 195,000 | |||||
Ceded premiums earned | $ 1,600,000 | $ 86,000 | $ 195,000 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance and Assumption Transactions (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Written premiums: | |||||
Direct | $ 24,341 | $ 24,796 | $ 95,832 | $ 97,801 | $ 82,430 |
Assumed | 11,873 | 8,168 | 42,187 | 34,294 | 28,905 |
Ceded | (17,872) | (14,943) | (46,787) | (30,666) | (18,395) |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 |
Earned premiums: | |||||
Direct | 23,315 | 24,123 | 97,843 | 91,943 | 75,130 |
Assumed | 10,979 | 8,641 | 37,558 | 31,107 | 31,484 |
Ceded | (12,342) | (8,809) | (38,690) | (24,248) | (17,511) |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 |
Losses and LAE: | |||||
Direct | 1,969 | 13,066 | 73,000 | 71,021 | 48,780 |
Assumed | 1,497 | 7,408 | 43,487 | 25,740 | 24,429 |
Ceded | 10,247 | (2,456) | (35,047) | (26,900) | (16,981) |
Total net incurred losses and LAE | $ 13,713 | $ 18,018 | $ 81,440 | $ 69,861 | $ 56,228 |
Debt - Narrative (Q1) (Details)
Debt - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 24, 2020 | Sep. 24, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Paycheck Protection Program | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 2,700,000 | ||||
Debt instrument, description | The Company received notice from the SBA that the loan was 100% forgiven, including accrued interest, on July 8, 2021. This resulted in a $2.8 million gain that is included in Other Gains on the Consolidated Statement of Operations in 2021 | ||||
Loan forgiven date | Jul. 08, 2021 | ||||
Paycheck Protection Program | Other Gains | |||||
Debt Instrument [Line Items] | |||||
Gain on forgiven loan | $ 2,800,000 | ||||
Senior Unsecured Notes | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 25,300,000 | $ 24,300,000 | $ 24,400,000 | ||
Maturity date | Sep. 30, 2023 | ||||
Interest rate | 6.75% | ||||
Number of units repurchased | 0 | 0 | 0 | ||
Debt issuance costs | $ 130,000 | $ 195,000 | |||
Subordinated notes | Subordinated notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 10,500,000 | $ 10,500,000 | $ 10,500,000 | ||
Maturity date | Sep. 30, 2038 | ||||
Interest rate, payment terms | Interest is payable quarterly at the end of March, June, September and December. | Interest is payable quarterly at the end of March, June, September and December | |||
Call premium percentage | 12.50% | ||||
Debt issuance costs | $ 797,000 | $ 810,000 | |||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.50% | ||||
Call premium | $ 1,100,000 | ||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 12.50% | ||||
Call premium | $ 1,750,000 | ||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument [Line Items] | |||||
Call premium | $ 3,050,000 | ||||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 10,000,000 | ||||
Line of credit | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.75% |
Debt - Outstanding Senior Debt
Debt - Outstanding Senior Debt (Q1) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Debt | $ 33,954 | $ 33,876 | $ 33,564 |
Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt | 24,251 | 24,186 | 23,926 |
Subordinated notes | |||
Debt Instrument [Line Items] | |||
Debt | $ 9,703 | $ 9,690 | $ 9,638 |
Shareholder's Equity - Narrativ
Shareholder's Equity - Narrative (Q1) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 10, 2022 USD ($) $ / shares shares | Mar. 31, 2023 Vote shares | Dec. 31, 2022 Vote shares | Dec. 31, 2021 shares | |
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock voting rights, number of votes per share | Vote | 1 | 1 | ||
Common stocks | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Private placement | Common stocks | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common equity issued | $ | $ 5 | |||
Common equity issued (in shares) | 2,500,000 | |||
Offering price per share (in dollars per share) | $ / shares | $ 2 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Income (Loss) Per Common Share (Q1) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 | ||
Weighted average common shares outstanding, basic | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Weighted average common shares outstanding, diluted | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Earnings (loss) per common share, basic | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Earnings (loss) per common share, diluted | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
[1]The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 18,950 | $ 40,503 | $ 40,503 | $ 44,413 | $ 42,725 |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Balance at ending of period | 22,292 | 30,384 | 18,950 | 40,503 | 44,413 |
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (18,203) | (2,110) | (2,110) | 912 | 489 |
Other comprehensive income (loss) before reclassifications, net of tax | 2,286 | (7,287) | (16,024) | (2,937) | |
Less: amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 69 | 85 | |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Balance at ending of period | $ (15,917) | $ (9,397) | $ (18,203) | $ (2,110) | $ 912 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Q1) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 08, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | |
Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options issued to purchase shares of common stock | 630,000 | 280,000 | |||||||
Vesting period | 5 years | 5 years | |||||||
Strike price | $ 4.53 | $ 3.81 | |||||||
Expiration date | Mar. 08, 2032 | Jun. 30, 2030 | |||||||
Estimated value of options issued to purchase shares of common stock | $ 612,000 | $ 290,000 | |||||||
Share-based compensation expense | $ 43,000 | $ 24,000 | |||||||
Share-based compensation expense not yet recognized | $ 595,000 | ||||||||
Share-based compensation nonvested shares | 654,000 | ||||||||
Stock options volatility rate | 65.04% | ||||||||
Options exercisable term | 5 years | ||||||||
Risk free interest rate term of options | 5 years | ||||||||
Risk free interest rate of options | 1.80% | ||||||||
Market value of stock | $ 2.4 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 12,000 | $ 14,000 | $ 56,000 | $ 166,000 | $ 677,000 | ||||
Share-based compensation expense not yet recognized | $ 4,000 | $ 17,000 | |||||||
Restricted Stock Units (RSUs) | 2015 Omnibus Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 70,000 | 111,281 | |||||||
Shares granted in period | $ 404,000 | $ 909,000 | |||||||
Share-based compensation nonvested shares | 9,000 | 9,000 |
Segment Information - Narrative
Segment Information - Narrative (Q1) (Details) - Business | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Number of businesses | 3 | 3 | |||
Gross Written Premiums | Geographic Concentration Risk | Michigan, Florida, Texas and Pennsylvania | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk | 54.10% | 50.60% | 49.60% | ||
Gross Written Premiums | Geographic Concentration Risk | Michigan, Texas, Oklahoma and California | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk | 56.20% | 55.70% |
Segment Information - Informati
Segment Information - Information by Reportable Operating Segment (Q1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Gross written premiums | $ 36,214 | $ 32,964 | $ 138,019 | $ 132,095 | $ 111,335 |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 |
Other income | 626 | 698 | 2,768 | 2,671 | 2,615 |
Segment revenue | 22,578 | 24,653 | 99,479 | 101,473 | 91,718 |
Losses and LAE, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 |
Policy acquisition costs | 4,721 | 5,464 | 22,179 | 28,451 | 26,105 |
Operating expenses | 4,279 | 4,160 | 18,789 | 16,509 | 18,468 |
Segment expenses | 22,713 | 27,642 | 127,808 | 114,821 | 100,801 |
Segment underwriting gain (loss) | (135) | (2,989) | (28,329) | (13,348) | (9,083) |
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 |
Net realized investment gains (losses) | 0 | (69) | (1,505) | 2,878 | 8,126 |
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 |
Other gains (losses) | 0 | (5) | 59 | 11,664 | 260 |
Interest expense | (686) | (711) | (2,971) | (2,852) | (2,925) |
Income (loss) before equity earnings in Affiliate and income taxes | 1,180 | (2,987) | (20,490) | (1,710) | (238) |
Operating Segments | Commercial Lines | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 28,975 | 28,586 | 116,868 | 117,075 | 102,763 |
Net written premiums | 12,241 | 14,340 | 72,318 | 87,307 | 85,385 |
Net earned premiums | 17,123 | 20,524 | 80,823 | 87,759 | 82,409 |
Other income | 52 | 71 | 245 | 215 | 242 |
Segment revenue | 17,175 | 20,595 | 81,068 | 87,974 | 82,651 |
Losses and LAE, net | 10,547 | 16,610 | 70,762 | 63,868 | 53,263 |
Policy acquisition costs | 3,196 | 4,357 | 17,682 | 25,687 | 25,051 |
Operating expenses | 3,028 | 3,161 | 13,069 | 11,648 | 12,644 |
Segment expenses | 16,771 | 24,128 | 106,913 | 101,203 | 90,958 |
Segment underwriting gain (loss) | 404 | (3,533) | (25,845) | (13,229) | (8,307) |
Income (loss) before equity earnings in Affiliate and income taxes | 404 | (3,533) | (25,845) | (13,229) | (8,307) |
Operating Segments | Personal Lines | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 7,239 | 4,378 | 21,151 | 15,020 | 8,572 |
Net written premiums | 6,101 | 3,681 | 18,914 | 14,122 | 7,555 |
Net earned premiums | 4,829 | 3,431 | 15,888 | 11,043 | 6,694 |
Other income | 23 | 6 | 82 | 143 | 150 |
Segment revenue | 4,852 | 3,437 | 15,970 | 11,186 | 6,844 |
Losses and LAE, net | 3,166 | 1,408 | 10,678 | 5,993 | 2,965 |
Policy acquisition costs | 1,389 | 1,093 | 4,604 | 3,307 | 2,044 |
Operating expenses | 592 | 402 | 1,936 | 1,357 | 1,069 |
Segment expenses | 5,147 | 2,903 | 17,218 | 10,657 | 6,078 |
Segment underwriting gain (loss) | (295) | 534 | (1,248) | 529 | 766 |
Income (loss) before equity earnings in Affiliate and income taxes | (295) | 534 | (1,248) | 529 | 766 |
Operating Segments | Total Underwriting | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 36,214 | 32,964 | 138,019 | 132,095 | 111,335 |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 |
Other income | 75 | 77 | 327 | 358 | 392 |
Segment revenue | 22,027 | 24,032 | 97,038 | 99,160 | 89,495 |
Losses and LAE, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 |
Policy acquisition costs | 4,585 | 5,450 | 22,286 | 28,994 | 27,095 |
Operating expenses | 3,620 | 3,563 | 15,005 | 13,005 | 13,713 |
Segment expenses | 21,918 | 27,031 | 118,731 | 111,860 | 97,036 |
Segment underwriting gain (loss) | 109 | (2,999) | (21,693) | (12,700) | (7,541) |
Income (loss) before equity earnings in Affiliate and income taxes | 109 | (2,999) | (21,693) | (12,700) | (7,541) |
Operating Segments | Wholesale Agency | |||||
Segment Reporting Information [Line Items] | |||||
Other income | 879 | 1,112 | 5,712 | 5,848 | 7,571 |
Segment revenue | 879 | 1,112 | 5,712 | 5,848 | 7,571 |
Policy acquisition costs | 548 | 758 | 3,653 | 3,727 | 4,938 |
Operating expenses | 352 | 292 | 2,612 | 2,382 | 3,107 |
Segment expenses | 900 | 1,050 | 6,265 | 6,109 | 8,045 |
Segment underwriting gain (loss) | (21) | 62 | (553) | (261) | (474) |
Net investment income | 32 | ||||
Other gains (losses) | (1) | ||||
Interest expense | (42) | ||||
Income (loss) before equity earnings in Affiliate and income taxes | (21) | 62 | (564) | (261) | (474) |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Other income | 72 | 147 | 271 | 365 | 245 |
Segment revenue | 72 | 147 | 271 | 365 | 245 |
Operating expenses | 307 | 305 | 1,192 | 1,122 | 1,648 |
Segment expenses | 307 | 305 | 1,192 | 1,122 | 1,648 |
Segment underwriting gain (loss) | (235) | (158) | (921) | (757) | (1,403) |
Net investment income | 1,307 | 507 | 3,011 | 1,968 | 3,156 |
Net realized investment gains (losses) | (69) | (1,505) | 2,878 | 8,126 | |
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 |
Other gains (losses) | (5) | 60 | 11,664 | 260 | |
Interest expense | (686) | (711) | (2,929) | (2,852) | (2,925) |
Income (loss) before equity earnings in Affiliate and income taxes | 1,080 | (156) | 6,929 | 10,881 | 7,442 |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Other income | (400) | (638) | (3,542) | (3,900) | (5,593) |
Segment revenue | (400) | (638) | (3,542) | (3,900) | (5,593) |
Policy acquisition costs | (412) | (744) | (3,760) | (4,270) | (5,928) |
Operating expenses | (20) | ||||
Segment expenses | (412) | (744) | (3,780) | (4,270) | (5,928) |
Segment underwriting gain (loss) | 12 | 106 | 238 | 370 | 335 |
Income (loss) before equity earnings in Affiliate and income taxes | $ 12 | $ 106 | $ 238 | $ 370 | $ 335 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative (FY) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 State Class_business | Dec. 31, 2022 USD ($) State Class_business | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of types of business | Class_business | 3 | 3 | |
Number of states in which entity operates | State | 50 | 50 | |
Discount rate | 6.75% | ||
Unrecognized tax benefits | $ 0 | $ 0 | |
Income tax penalties and interest accrued | 0 | 0 | |
Net unrealized losses | 16,000,000 | ||
Net unrealized losses in debt securities | 18,200,000 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset | $ 1,300,000 | $ 1,400,000 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Lease liability | $ 1,300,000 | $ 1,500,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease term | 5 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease term | 10 years |
VSRM Transaction - Narrative (F
VSRM Transaction - Narrative (FY) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 14, 2022 | Oct. 13, 2022 | Oct. 12, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Asset acquisition debt not transferred | $ 8,900,000 | |||||
Asset acquisition tax liability not transferred | 9,400,000 | |||||
Asset purchase agreement purchase price | $ 38,200,000 | |||||
Operating loss carry forwards, net of tax | 9,400,000 | |||||
Gain or loss on sale of business | $ 8,910,000 | |||||
VSRM | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 50% | |||||
Accounts receivable | $ 4,300,000 | |||||
Current liabilities | 5,800,000 | |||||
Cash | 271,000 | |||||
Asset purchase agreement purchase price paid in cash | 32,800,000 | |||||
Asset purchase agreement purchase price paid in the form of the buyer's stock | 3,800,000 | |||||
Cash held back by buyer | (75,000) | |||||
Fair value of equity interest prior to acquisition | $ 10,600,000 | |||||
VSRM | Promissory Note | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire interest in venture | $ 9,700,000 | |||||
Domestic | ||||||
Business Acquisition [Line Items] | ||||||
Net operating loss carryforwards | 12,500,000 | |||||
State | ||||||
Business Acquisition [Line Items] | ||||||
Net operating loss carryforwards | $ 14,800,000 | $ 107,200,000 | $ 107,200,000 | |||
Sycamore Specialty Underwriters | VSRM | ||||||
Business Acquisition [Line Items] | ||||||
Net asset transferred, fair value | 0 | |||||
Promissory note assumed as part of contribution of business | 1,000,000 | |||||
Sycamore Specialty Underwriters | VSRM | Vice President [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price amount | 1,000 | 1,000 | ||||
Gain or loss on sale of business | $ 0 | |||||
Venture | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of ownership interest purchased | 50% | 50% | 50% | |||
Payments to acquire interest in venture | $ 9,700,000 | |||||
Settled the note with cash received from sale of Security & Alarm Business | 5,900,000 | |||||
Form of stock from the buyer of the Security & Alarm Business | 3,800,000 | |||||
Revaluation gain on step acquisition | $ 8,810,000 | |||||
Ownership percentage | 100% | |||||
Accounts receivable | $ 4,604,000 | |||||
Cash | 3,921,000 | |||||
Venture | Promissory Note | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire interest in venture | $ 9,700,000 | |||||
Venture | Asset Purchase Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Non-operating gains, net of taxes generated | $ 8,800,000 | |||||
Sycamore Specialty Underwriters | VSRM | Vice President [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of ownership interest purchased | 50% | 50% |
VSRM Transaction - Schedule of
VSRM Transaction - Schedule of Condensed Assets and Liabilities Incorporated Into The Consolidated Balance Sheet from The VSRM Acquisition (FY) (Details) - Venture $ in Thousands | Oct. 13, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 3,921 |
Trade receivables | 4,604 |
Customer relationship intangible assets | 37,122 |
Other assets | 574 |
Total assets | 46,221 |
Trade and other payables | 7,624 |
Deferred tax liability | 9,407 |
Note payable to Affiliate | 6,000 |
Senior debt | 2,917 |
Total Liabilities | 25,948 |
Fair value of net assets acquired | $ 20,273 |
VSRM Transaction - Schedule o_2
VSRM Transaction - Schedule of Calculation of Revaluation Gain Related to Company's Equity Method Investment in VSRM as a Result of VSRM Transaction (FY) (Details) - Venture $ in Thousands | Oct. 13, 2022 USD ($) |
Business Acquisition [Line Items] | |
Carrying value of equity method investment in VSRM | $ 1,773 |
Fair value of investment in VSRM | 10,583 |
Gain on step acquisition | $ 8,810 |
VSRM Transaction - Schedule o_3
VSRM Transaction - Schedule of Calculation of Gain on VSRM Transaction (Parenthetical) (FY) (Details) | Oct. 14, 2022 | Oct. 13, 2022 | Oct. 12, 2022 |
Venture | |||
Business Acquisition [Line Items] | |||
Percentage of ownership interest purchased | 50% | 50% | 50% |
VSRM Transaction - Schedule o_4
VSRM Transaction - Schedule of Reconciles the Net Assets Disposed (FY) (Details) $ in Thousands | Oct. 14, 2022 USD ($) |
Business Acquisition [Line Items] | |
Purchase price | $ 38,200 |
Venture | |
Business Acquisition [Line Items] | |
Cash at closing | 32,759 |
Net liabilities transferred | 1,499 |
Hold back | 75 |
Stock of acquirer | 3,822 |
Purchase price | 38,155 |
Cash | 271 |
Premiums transferred to buyer | 4,326 |
Intangible assets | 38,154 |
Trade payables and accrued liabilities assumed by buyer | (5,838) |
Net assets disposed of | 36,913 |
Net gain | 1,242 |
Broker fee transaction costs | $ (1,242) |
VSRM Transaction - Net Gain on
VSRM Transaction - Net Gain on Revaluation of the Investment in VSRM and the Disposal of the Security and Alarm Business Line (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 14, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Net gain | $ 8,810 | $ 0 | $ 0 | |
Venture | ||||
Business Acquisition [Line Items] | ||||
Gross gains | $ 10,052 | |||
Broker fee | (1,242) | |||
Net gain | $ 8,810 |
VSRM Transaction - Schedule o_5
VSRM Transaction - Schedule of Assets And Liabilities Deconsolidated as a Result of This Transaction (FY) (Details) - VSRM - Sycamore Specialty Underwriters $ in Thousands | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 497 |
Receivable from VSRM | 934 |
Trade receivables | 239 |
Intangible asset | 196 |
Other assets | 514 |
Total assets | 2,380 |
Payable to Affiliates | 286 |
Trade payables | 193 |
Note payable | 1,000 |
Other liabilities | 901 |
Total Liabilities | $ 2,380 |
Sale of Certain Agency Busine_2
Sale of Certain Agency Business - Narrative (FY) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Oct. 20, 2022 USD ($) | Dec. 14, 2021 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) Interger | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Other gains (losses) | $ 0 | $ (5,000) | $ 59,000 | $ 11,664,000 | $ 260,000 | |||
Venture Holdings, Inc | ||||||||
Other gains (losses) | $ 8,900,000 | |||||||
Purchase price | 10,000,000 | |||||||
Paid in cash | $ 1,000,000 | |||||||
Number of promissory notes | Interger | 2 | |||||||
Payment annum rate | 7% | |||||||
Payment maturity period | 5 years | |||||||
Repayments of Debt | $ 5,000,000 | $ 3,000,000 | ||||||
Venture Holdings, Inc | Prepayment Penalty | ||||||||
Repayments of Debt | $ 0 | |||||||
Venture Holdings, Inc | Promissory Notes | ||||||||
Remaining balance paid by promissory note | 9,000,000 | |||||||
Venture Holdings, Inc | Promissory Notes One | ||||||||
Remaining balance paid by promissory note | $ 6,000,000 | 6,000,000 | ||||||
Venture Holdings, Inc | Promissory Notes Two | ||||||||
Remaining balance paid by promissory note | 3,000,000 | |||||||
Sycamore Specialty Underwriters | Promissory Notes One | ||||||||
Promissory note assumed as part of contribution of business | $ 1,000,000 |
Investments - Available-for-s_4
Investments - Available-for-sale Securities (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | $ 125,274 | $ 127,119 | $ 150,732 |
Debt securities, Gross Unrealized Gain | 1 | 1 | 898 |
Debt securities, Gross Unrealized Losses | (14,642) | (16,919) | (1,847) |
Debt securities, Estimated Fair Value | 110,633 | 110,201 | 149,783 |
U.S. Government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 7,220 | 7,833 | 20,723 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 74 |
Debt securities, Gross Unrealized Losses | (249) | (335) | (77) |
Debt securities, Estimated Fair Value | 6,971 | 7,498 | 20,720 |
State and local government | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 26,063 | 25,487 | 30,063 |
Debt securities, Gross Unrealized Gain | 1 | 1 | 555 |
Debt securities, Gross Unrealized Losses | (3,866) | (4,672) | (189) |
Debt securities, Estimated Fair Value | 22,198 | 20,816 | 30,429 |
Corporate debt | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 35,070 | 35,347 | 30,808 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 88 |
Debt securities, Gross Unrealized Losses | (4,139) | (4,788) | (550) |
Debt securities, Estimated Fair Value | 30,931 | 30,559 | 30,346 |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 21,150 | 21,742 | 28,652 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 10 |
Debt securities, Gross Unrealized Losses | (1,045) | (1,246) | (224) |
Debt securities, Estimated Fair Value | 20,105 | 20,496 | 28,438 |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 28,524 | 29,194 | 33,178 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 105 |
Debt securities, Gross Unrealized Losses | (4,739) | (5,157) | (762) |
Debt securities, Estimated Fair Value | 23,785 | 24,037 | 32,521 |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 3,413 | 3,414 | 1,659 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 31 |
Debt securities, Gross Unrealized Losses | (125) | (186) | 0 |
Debt securities, Estimated Fair Value | 3,288 | 3,228 | 1,690 |
Collateralized mortgage obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, Cost or Amortized Cost | 3,834 | 4,102 | 5,649 |
Debt securities, Gross Unrealized Gain | 0 | 0 | 35 |
Debt securities, Gross Unrealized Losses | (479) | (535) | (45) |
Debt securities, Estimated Fair Value | $ 3,355 | $ 3,567 | $ 5,639 |
Investments - Available-for-s_5
Investments - Available-for-sale Securities in Unrealized Loss Positions (FY) (Details) $ in Thousands | Mar. 31, 2023 USD ($) Security | Dec. 31, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 67 | 205 | 134 |
Debt securities, 12 months or More, number of issues | Security | 267 | 133 | 10 |
Debt securities, number of issues | Security | 334 | 338 | 144 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 7,377 | $ 38,757 | $ 95,923 |
Debt securities, 12 months or More, fair value | 102,547 | 71,142 | 7,801 |
Debt securities, fair value | 109,924 | 109,899 | 103,724 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (193) | (4,857) | (1,750) |
Debt securities, 12 months or More, unrealized losses | (14,449) | (12,062) | (97) |
Debt securities, total unrealized losses | $ (14,642) | $ (16,919) | $ (1,847) |
U.S. Government | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 2 | 8 | 6 |
Debt securities, 12 months or More, number of issues | Security | 10 | 5 | 1 |
Debt securities, number of issues | Security | 12 | 13 | 7 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 900 | $ 3,534 | $ 10,323 |
Debt securities, 12 months or More, fair value | 6,071 | 3,964 | 4,728 |
Debt securities, fair value | 6,971 | 7,498 | 15,051 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (6) | (135) | (47) |
Debt securities, 12 months or More, unrealized losses | (243) | (200) | (30) |
Debt securities, total unrealized losses | $ (249) | $ (335) | $ (77) |
State and local government | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 13 | 77 | 41 |
Debt securities, 12 months or More, number of issues | Security | 110 | 45 | 4 |
Debt securities, number of issues | Security | 123 | 122 | 45 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 3,229 | $ 12,966 | $ 8,875 |
Debt securities, 12 months or More, fair value | 18,267 | 7,147 | 446 |
Debt securities, fair value | 21,496 | 20,113 | 9,321 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (80) | (2,318) | (172) |
Debt securities, 12 months or More, unrealized losses | (3,786) | (2,354) | (17) |
Debt securities, total unrealized losses | $ (3,866) | $ (4,672) | $ (189) |
Corporate debt | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 4 | 27 | 41 |
Debt securities, 12 months or More, number of issues | Security | 64 | 42 | 1 |
Debt securities, number of issues | Security | 68 | 69 | 42 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 1,509 | $ 10,069 | $ 22,748 |
Debt securities, 12 months or More, fair value | 29,422 | 20,890 | 705 |
Debt securities, fair value | 30,931 | 30,959 | 23,453 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (41) | (1,373) | (505) |
Debt securities, 12 months or More, unrealized losses | (4,098) | (3,415) | (45) |
Debt securities, total unrealized losses | $ (4,139) | $ (4,788) | $ (550) |
Asset-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 3 | 6 | 24 |
Debt securities, 12 months or More, number of issues | Security | 22 | 20 | 2 |
Debt securities, number of issues | Security | 25 | 26 | 26 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 1,085 | $ 3,188 | $ 24,305 |
Debt securities, 12 months or More, fair value | 19,020 | 17,308 | 1,893 |
Debt securities, fair value | 20,105 | 20,496 | 26,198 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (28) | (76) | (219) |
Debt securities, 12 months or More, unrealized losses | (1,017) | (1,170) | (5) |
Debt securities, total unrealized losses | $ (1,045) | $ (1,246) | $ (224) |
Mortgage-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 33 | 57 | 12 |
Debt securities, 12 months or More, number of issues | Security | 35 | 12 | 0 |
Debt securities, number of issues | Security | 68 | 69 | 12 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 279 | $ 4,006 | $ 27,034 |
Debt securities, 12 months or More, fair value | 23,499 | 20,031 | 0 |
Debt securities, fair value | 23,778 | 24,037 | 27,034 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (12) | (573) | (762) |
Debt securities, 12 months or More, unrealized losses | (4,727) | (4,584) | 0 |
Debt securities, total unrealized losses | $ (4,739) | $ (5,157) | $ (762) |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 1 | 4 | 0 |
Debt securities, 12 months or More, number of issues | Security | 3 | 0 | 0 |
Debt securities, number of issues | Security | 4 | 4 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 209 | $ 3,205 | $ 0 |
Debt securities, 12 months or More, fair value | 3,056 | 0 | 0 |
Debt securities, fair value | 3,265 | 3,205 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (20) | (186) | 0 |
Debt securities, 12 months or More, unrealized losses | (105) | 0 | 0 |
Debt securities, total unrealized losses | $ (125) | $ (186) | $ 0 |
Collateralized mortgage obligations | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||
Debt securities, less than 12 months, number of issues | Security | 11 | 26 | 10 |
Debt securities, 12 months or More, number of issues | Security | 23 | 9 | 2 |
Debt securities, number of issues | Security | 34 | 35 | 12 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | |||
Debt securities, less than 12 months, fair value | $ 166 | $ 1,789 | $ 2,638 |
Debt securities, 12 months or More, fair value | 3,212 | 1,802 | 29 |
Debt securities, fair value | 3,378 | 3,591 | 2,667 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |||
Debt securities, less than 12 months, unrealized losses | (6) | (196) | (45) |
Debt securities, 12 months or More, unrealized losses | (473) | (339) | 0 |
Debt securities, total unrealized losses | $ (479) | $ (535) | $ (45) |
Investments - Net Investment _2
Investments - Net Investment Income (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||||
Investment income | $ 1,367 | $ 611 | $ 3,345 | $ 2,413 | $ 3,571 |
Investment expenses | (60) | (104) | (302) | (445) | (415) |
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 |
Debt securities | |||||
Net Investment Income [Line Items] | |||||
Investment income | 853 | 582 | 2,517 | 2,217 | 3,213 |
Equity securities | |||||
Net Investment Income [Line Items] | |||||
Investment income | 11 | 28 | 52 | 194 | 220 |
Cash, cash equivalents and short-term investments | |||||
Net Investment Income [Line Items] | |||||
Investment income | $ 503 | $ 1 | $ 776 | $ 2 | $ 138 |
Investments - Gross Realized _2
Investments - Gross Realized Gains and Losses (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt securities: | |||||
Gross realized gains | $ 0 | $ 0 | $ 6,000 | $ 63,000 | $ 4,646,000 |
Gross realized losses | 0 | 0 | (155,000) | (6,000) | (8,000) |
Total debt securities | 0 | 0 | (149,000) | 57,000 | 4,638,000 |
Equity securities: | |||||
Gross realized gains | 0 | 19,000 | 375,000 | 4,605,000 | 4,854,000 |
Gross realized losses | 0 | (88,000) | (1,731,000) | (1,784,000) | (1,366,000) |
Total equity securities | 0 | (69,000) | (1,356,000) | 2,821,000 | 3,488,000 |
Total net realized investment gains (losses) | $ 0 | $ (69,000) | $ (1,505,000) | $ 2,878,000 | $ 8,126,000 |
Investments - Narrative (FY) (D
Investments - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||||||
Proceeds from sale of available-for-sale debt securities | $ 23,600,000 | $ 6,700,000 | $ 32,000,000 | $ 31,700,000 | $ 101,200,000 | |
Gross realized gains from sales of available-for-sale debt securities | 5,000 | 27,000 | $ 4,600,000 | |||
Gross realized losses from sales of available-for-sale debt securities | 155,000 | 6,000 | 0 | |||
Gross unrealized gains | 523,000 | 0 | 0 | 1,000,000 | ||
Gross unrealized losses | 467,000 | 638,000 | 1,000,000 | 0 | ||
Amount payable for securities purchased | 0 | 750,000 | 0 | 1,000,000 | 700,000 | |
Amount receivable for securities sold | 0 | $ 1,300,000 | 650,000 | 523,000 | $ 809,000 | |
Other than temporary impairments losses, investments | 0 | 0 | ||||
Investments | 1,400,000 | 1,800,000 | ||||
Deposits held in trust accounts | 8,100,000 | 8,000,000 | 8,500,000 | |||
Deposits, held in trust for collateral requirements | $ 98,100,000 | $ 95,700,000 | $ 76,100,000 |
Investments - Available-for-s_6
Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | |||
Due in one year or less | $ 4,668 | $ 4,876 | |
Due after one year through five years | 28,614 | 28,396 | |
Due after five years through ten years | 23,810 | 23,974 | |
Due after ten years | 11,261 | 11,421 | |
Securities with contractual maturities | 68,353 | 68,667 | |
Total debt securities | 125,274 | 127,119 | $ 150,732 |
Estimated Fair Value | |||
Due in one year or less | 4,592 | 4,770 | |
Due after one year through five years | 26,543 | 25,963 | |
Due after five years through ten years | 20,267 | 19,782 | |
Due after ten years | 8,698 | 8,358 | |
Securities with contractual maturities | 60,100 | 58,873 | |
Total debt securities | 110,633 | 110,201 | 149,783 |
Asset-backed securities | |||
Amortized Cost | |||
Total debt securities | 21,150 | 21,742 | 28,652 |
Estimated Fair Value | |||
Total debt securities | 20,105 | 20,496 | 28,438 |
Mortgage-backed securities | |||
Amortized Cost | |||
Total debt securities | 28,524 | 29,194 | 33,178 |
Estimated Fair Value | |||
Total debt securities | 23,785 | 24,037 | 32,521 |
Commercial mortgage-backed securities | |||
Amortized Cost | |||
Total debt securities | 3,413 | 3,414 | 1,659 |
Estimated Fair Value | |||
Total debt securities | 3,288 | 3,228 | 1,690 |
Collateralized mortgage obligations | |||
Amortized Cost | |||
Total debt securities | 3,834 | 4,102 | 5,649 |
Estimated Fair Value | |||
Total debt securities | $ 3,355 | $ 3,567 | $ 5,639 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Instruments (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 24, 2020 |
Assets: | ||||
Debt securities, Estimated Fair Value | $ 110,633 | $ 110,201 | $ 149,783 | |
Equity Securities | 965 | 917 | 9,437 | |
Short-term investments | 28,055 | 25,929 | 23,013 | |
Total marketable investments measured at fair value | 139,653 | 137,047 | 182,233 | |
Total assets measured at fair value | 141,113 | 137,397 | 182,727 | |
Liabilities: | ||||
Total Liabilities (non-recurring fair value measure) | 33,730 | 35,822 | ||
Debt | 33,954 | 33,876 | 33,564 | |
Paycheck Protection Program | ||||
Liabilities: | ||||
Debt | $ 2,700 | |||
U.S. Government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 6,971 | 7,498 | 20,720 | |
State and local government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 22,198 | 20,816 | 30,429 | |
Corporate debt | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 30,931 | 30,559 | 30,346 | |
Asset-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 20,105 | 20,496 | 28,438 | |
Mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 23,785 | 24,037 | 32,521 | |
Commercial mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 3,288 | 3,228 | 1,690 | |
Collateralized mortgage obligations | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 3,355 | 3,567 | 5,639 | |
Senior Unsecured Notes | ||||
Liabilities: | ||||
Debt | 22,567 | 22,430 | 24,118 | |
Subordinated notes | ||||
Liabilities: | ||||
Debt | 11,685 | 11,300 | 11,704 | |
Partnership interest | ||||
Assets: | ||||
Investments measured at NAV | 1,460 | 350 | 494 | |
Level 1 | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Equity Securities | 208 | 160 | 9,154 | |
Short-term investments | 28,055 | 25,929 | 23,013 | |
Total marketable investments measured at fair value | 28,263 | 26,089 | 32,167 | |
Liabilities: | ||||
Total Liabilities (non-recurring fair value measure) | 0 | 0 | ||
Level 1 | U.S. Government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | State and local government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Corporate debt | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Asset-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Commercial mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Collateralized mortgage obligations | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 1 | Senior Unsecured Notes | ||||
Liabilities: | ||||
Debt | 0 | 0 | 0 | |
Level 1 | Subordinated notes | ||||
Liabilities: | ||||
Debt | 0 | 0 | 0 | |
Level 2 | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 110,633 | 110,201 | 149,783 | |
Equity Securities | 757 | 757 | 283 | |
Short-term investments | 0 | 0 | ||
Total marketable investments measured at fair value | 111,390 | 110,958 | 150,066 | |
Liabilities: | ||||
Total Liabilities (non-recurring fair value measure) | 22,430 | 24,118 | ||
Level 2 | U.S. Government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 6,971 | 7,498 | 20,720 | |
Level 2 | State and local government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 22,198 | 20,816 | 30,429 | |
Level 2 | Corporate debt | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 30,931 | 30,559 | 30,346 | |
Level 2 | Asset-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 20,105 | 20,496 | 28,438 | |
Level 2 | Mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 23,785 | 24,037 | 32,521 | |
Level 2 | Commercial mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 3,288 | 3,228 | 1,690 | |
Level 2 | Collateralized mortgage obligations | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 3,355 | 3,567 | 5,639 | |
Level 2 | Senior Unsecured Notes | ||||
Liabilities: | ||||
Debt | 22,567 | 22,430 | 24,118 | |
Level 2 | Subordinated notes | ||||
Liabilities: | ||||
Debt | 0 | 0 | 0 | |
Level 3 | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Equity Securities | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Total marketable investments measured at fair value | 0 | 0 | 0 | |
Liabilities: | ||||
Total Liabilities (non-recurring fair value measure) | 11,300 | 11,704 | ||
Level 3 | U.S. Government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | State and local government | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Corporate debt | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Asset-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Commercial mortgage-backed securities | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Collateralized mortgage obligations | ||||
Assets: | ||||
Debt securities, Estimated Fair Value | 0 | 0 | 0 | |
Level 3 | Senior Unsecured Notes | ||||
Liabilities: | ||||
Debt | 0 | 0 | 0 | |
Level 3 | Subordinated notes | ||||
Liabilities: | ||||
Debt | $ 11,685 | $ 11,300 | $ 11,704 |
Fair Value Measurements - Nar_2
Fair Value Measurements - Narrative (FY) (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Marketable investment percentage | 20% | 18% |
Level 2 | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Marketable investment percentage | 80% | 82% |
Deferred Policy Acquisition C_6
Deferred Policy Acquisition Costs - Activity in Deferred Policy Acquisition Costs (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||
Balance at beginning of period | $ 10,290 | $ 12,267 | $ 12,267 | $ 12,243 | $ 11,906 |
Deferred policy acquisition costs | 2,757 | 3,321 | 20,202 | 28,475 | 26,442 |
Amortization of policy acquisition costs | (4,721) | (5,464) | (22,179) | (28,451) | (26,105) |
Net change | (1,964) | (2,143) | (1,977) | 24 | 337 |
Balance at end of period | $ 8,326 | $ 10,124 | $ 10,290 | $ 12,267 | $ 12,243 |
Unpaid Losses and Loss Adjust_7
Unpaid Losses and Loss Adjustment Expenses - Changes in the Liability for Unpaid Losses and Loss Adjustment Expenses (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross reserves - beginning of period | $ 165,539 | $ 139,085 | $ 139,085 | $ 111,270 | $ 107,246 |
Less: reinsurance recoverables on unpaid losses | 82,651 | 40,344 | 40,344 | 24,218 | 22,579 |
Net reserves - beginning of period | 82,888 | 98,741 | 98,741 | 87,052 | 84,667 |
Add: incurred losses and loss adjustment expenses, net of reinsurance | |||||
Current period | 14,926 | 12,497 | 57,156 | 50,429 | 40,634 |
Prior period | 1,213 | 5,521 | 24,284 | 19,432 | 15,594 |
Total net incurred losses and LAE | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 |
Deduct: loss and loss adjustment expense payments, net of reinsurance | |||||
Current period | 1,987 | 2,512 | 20,894 | 18,984 | 13,599 |
Prior period | 10,353 | 13,914 | 76,399 | 39,188 | 40,244 |
Total net loss and loss adjustment expense payments | 12,340 | 16,426 | 97,293 | 58,172 | 53,843 |
Net reserves - end of period | 84,261 | 100,333 | 82,888 | 98,741 | 87,052 |
Plus: reinsurance recoverables on unpaid losses | 61,101 | 40,605 | 82,651 | 40,344 | 24,218 |
Gross reserves - end of period | $ 145,362 | $ 140,938 | $ 165,539 | $ 139,085 | $ 111,270 |
Unpaid Losses and Loss Adjust_8
Unpaid Losses and Loss Adjustment Expenses - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | $ 1,213,000 | $ 5,521,000 | $ 24,284,000 | $ 19,432,000 | $ 15,594,000 | ||
Losses and loss adjustment expenses, net | 13,713,000 | 18,018,000 | 81,440,000 | 69,861,000 | 56,228,000 | ||
Unpaid losses and loss adjustment expenses | 145,362,000 | 140,938,000 | 165,539,000 | 139,085,000 | 111,270,000 | $ 107,246,000 | |
Short-Duration Insurance Contract, Accident Year 2021 [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 1,800,000 | ||||||
Short-Duration Insurance Contract, Accident Year 2020 [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 1,500,000 | 4,000,000 | |||||
Short-Duration Insurance Contract, Accident Year 2019 [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 1,300,000 | 9,600,000 | |||||
Short-Duration Insurance Contracts, Accident Year 2018 [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 1,300,000 | 5,200,000 | |||||
Short-Duration Insurance Contracts, Accident Year 2017 [Member] | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 1,500,000 | $ 3,700,000 | |||||
Winter Storm Uri | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Losses and loss adjustment expenses, net | $ 2,000,000 | ||||||
Commercial Line | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 817,000 | 5,700,000 | 18,500,000 | 15,200,000 | |||
Personal Line | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | $ 396,000 | $ 219,000 | 957,000 | 352,000 | |||
Hospitality | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | 12,000,000 | 12,000,000 | |||||
Small Business Lines | |||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||||
Prior year adjustments | $ 6,500,000 | $ 3,200,000 |
Unpaid Losses and Loss Adjust_9
Unpaid Losses and Loss Adjustment Expenses - Loss Development (FY) (Details) $ in Thousands | Dec. 31, 2022 USD ($) Claim | Dec. 31, 2021 USD ($) Claim | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) | Dec. 31, 2013 USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred | $ 533,041 | |||||||||
Total IBNR | 37,205 | |||||||||
Cumulative Paid | 432,309 | |||||||||
Net Unpaid losses and ALAE, years 2013 through 2022 | 100,732 | |||||||||
Unpaid losses and ALAE, prior to 2013 | 177 | |||||||||
Unpaid Losses, LPT | (25,913) | |||||||||
Unpaid losses and ALAE, net of reinsurance | 74,996 | |||||||||
Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 424,008 | $ 10,018 | ||||||||
Total IBNR | 35,662 | |||||||||
Cumulative Paid | $ 327,763 | |||||||||
Net Unpaid losses and ALAE, years 2013 through 2022 | 96,245 | |||||||||
Unpaid losses and ALAE, prior to 2013 | 177 | |||||||||
Unpaid Losses, LPT | (25,913) | |||||||||
Unpaid losses and ALAE, net of reinsurance | 70,509 | |||||||||
Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 109,033 | |||||||||
Total IBNR | 1,543 | |||||||||
Cumulative Paid | 104,546 | |||||||||
Net Unpaid losses and ALAE, years 2013 through 2022 | 4,487 | |||||||||
Unpaid losses and ALAE, net of reinsurance | 4,487 | |||||||||
Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 31,411 | 31,094 | $ 31,030 | $ 30,846 | $ 30,420 | $ 30,419 | $ 29,375 | $ 28,817 | $ 27,431 | 28,052 |
Total IBNR | ||||||||||
Cumulative number of reported claims | Claim | 5,821 | |||||||||
Cumulative Paid | $ 31,300 | 30,929 | 30,842 | 30,351 | 29,824 | 29,162 | 27,223 | 25,695 | 22,094 | 13,934 |
Accident Year 2013 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 12,046 | 11,867 | 11,804 | 11,624 | 11,218 | 11,252 | 10,237 | 9,893 | 9,435 | |
Total IBNR | ||||||||||
Cumulative number of reported claims | Claim | 613 | |||||||||
Cumulative Paid | $ 11,935 | 11,702 | 11,620 | 11,137 | 10,650 | 10,147 | 8,622 | 7,643 | 6,211 | 3,979 |
Accident Year 2013 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 19,365 | 19,227 | 19,226 | 19,222 | 19,202 | 19,167 | 19,138 | 18,925 | 17,996 | 18,034 |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 5,208 | |||||||||
Cumulative Paid | $ 19,365 | 19,227 | 19,222 | 19,214 | 19,174 | 19,014 | 18,600 | 18,052 | 15,883 | $ 9,955 |
Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 47,063 | 47,272 | 47,140 | 46,848 | 46,074 | 44,247 | 40,446 | 37,378 | 37,660 | |
Total IBNR | ||||||||||
Cumulative number of reported claims | Claim | 5,491 | |||||||||
Cumulative Paid | $ 46,633 | 46,718 | 46,457 | 45,591 | 43,464 | 40,192 | 34,718 | 30,492 | 21,534 | |
Accident Year 2014 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 29,011 | 29,175 | 29,045 | 28,766 | 28,145 | 26,367 | 22,711 | 19,907 | 19,709 | |
Total IBNR | ||||||||||
Cumulative number of reported claims | Claim | 1,754 | |||||||||
Cumulative Paid | $ 28,608 | 28,648 | 28,389 | 27,544 | 25,609 | 22,446 | 17,458 | 13,977 | 8,715 | |
Accident Year 2014 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 18,052 | 18,097 | 18,095 | 18,082 | 17,929 | 17,880 | 17,735 | 17,471 | 17,951 | |
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 3,737 | |||||||||
Cumulative Paid | $ 18,025 | 18,070 | 18,068 | 18,047 | 17,855 | 17,746 | 17,260 | 16,515 | $ 12,819 | |
Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 54,541 | 54,251 | 53,222 | 51,736 | 49,763 | 46,581 | 40,078 | 33,319 | ||
Total IBNR | $ 26 | |||||||||
Cumulative number of reported claims | Claim | 4,513 | |||||||||
Cumulative Paid | $ 54,129 | 52,979 | 51,123 | 49,747 | 45,634 | 36,393 | 29,690 | 18,241 | ||
Accident Year 2015 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 39,093 | 38,824 | 37,795 | 36,372 | 34,478 | 31,861 | 26,633 | 22,442 | ||
Total IBNR | $ 26 | |||||||||
Cumulative number of reported claims | Claim | 2,361 | |||||||||
Cumulative Paid | $ 38,685 | 37,563 | 35,833 | 34,497 | 30,475 | 22,549 | 17,817 | 10,470 | ||
Accident Year 2015 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 15,448 | 15,427 | 15,427 | 15,364 | 15,285 | 14,721 | 13,445 | 10,877 | ||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 2,152 | |||||||||
Cumulative Paid | $ 15,444 | 15,416 | 15,290 | 15,250 | 15,159 | 13,844 | 11,873 | $ 7,771 | ||
Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 64,356 | 62,627 | 61,744 | 59,905 | 55,389 | 48,353 | 44,015 | |||
Total IBNR | $ 201 | |||||||||
Cumulative number of reported claims | Claim | 5,371 | |||||||||
Cumulative Paid | $ 62,636 | 59,096 | 57,296 | 53,077 | 42,227 | 30,373 | 17,374 | |||
Accident Year 2016 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 48,677 | 46,993 | 46,089 | 44,355 | 40,440 | 34,935 | 32,396 | |||
Total IBNR | $ 201 | |||||||||
Cumulative number of reported claims | Claim | 3,557,000 | |||||||||
Cumulative Paid | $ 46,957 | 43,644 | 41,945 | 37,967 | 27,785 | 19,135 | 10,255 | |||
Accident Year 2016 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 15,679 | 15,634 | 15,655 | 15,550 | 14,949 | 13,418 | 11,619 | |||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,814 | |||||||||
Cumulative Paid | $ 15,679 | 15,452 | 15,351 | 15,110 | 14,442 | 11,238 | $ 7,119 | |||
Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 71,606 | 70,500 | 66,676 | 64,242 | 58,045 | 58,309 | ||||
Total IBNR | $ 671 | |||||||||
Cumulative number of reported claims | Claim | 8,749 | |||||||||
Cumulative Paid | $ 67,757 | 62,014 | 56,834 | 48,209 | 35,964 | 20,768 | ||||
Accident Year 2017 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 56,649 | 55,589 | 51,883 | 49,749 | 44,495 | 44,251 | ||||
Total IBNR | $ 671 | |||||||||
Cumulative number of reported claims | Claim | 5,832 | |||||||||
Cumulative Paid | $ 52,800 | 47,148 | 42,308 | 34,205 | 23,020 | 12,448 | ||||
Accident Year 2017 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 14,957 | 14,911 | 14,793 | 14,493 | 13,550 | 14,058 | ||||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 2,917 | |||||||||
Cumulative Paid | $ 14,957 | 14,866 | 14,526 | 14,004 | 12,944 | $ 8,320 | ||||
Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 66,400 | 61,643 | 56,024 | 48,810 | 48,517 | |||||
Total IBNR | $ 1,637 | |||||||||
Cumulative number of reported claims | Claim | 6,927 | |||||||||
Cumulative Paid | $ 56,752 | 47,819 | 37,733 | 25,417 | 14,671 | |||||
Accident Year 2018 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 60,102 | 55,261 | 49,741 | 42,432 | 42,624 | |||||
Total IBNR | $ 1,637 | |||||||||
Cumulative number of reported claims | Claim | 6,124 | |||||||||
Cumulative Paid | $ 50,508 | 41,577 | 31,633 | 19,799 | 10,375 | |||||
Accident Year 2018 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 6,298 | 6,382 | 6,283 | 6,378 | 5,893 | |||||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 803 | |||||||||
Cumulative Paid | $ 6,244 | 6,242 | 6,100 | 5,618 | $ 4,296 | |||||
Accident Year 2019 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 58,125 | 49,227 | 44,841 | 44,385 | ||||||
Total IBNR | $ 4,529 | |||||||||
Cumulative number of reported claims | Claim | 6,662 | |||||||||
Cumulative Paid | $ 42,743 | 31,650 | 23,066 | 12,197 | ||||||
Accident Year 2019 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 55,263 | 46,329 | 42,129 | 41,286 | ||||||
Total IBNR | $ 4,529 | |||||||||
Cumulative number of reported claims | Claim | 6,320,000 | |||||||||
Cumulative Paid | $ 39,893 | 28,958 | 20,462 | 10,078 | ||||||
Accident Year 2019 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 2,862 | 2,898 | 2,712 | 3,099 | ||||||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 342 | |||||||||
Cumulative Paid | $ 2,850 | 2,692 | 2,604 | $ 2,119 | ||||||
Accident Year 2020 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 41,829 | 37,918 | 36,206 | |||||||
Total IBNR | $ 3,787 | |||||||||
Cumulative number of reported claims | Claim | 4,196 | |||||||||
Cumulative Paid | $ 26,830 | 19,787 | 11,524 | |||||||
Accident Year 2020 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 39,193 | 35,328 | 33,867 | |||||||
Total IBNR | $ 3,787 | |||||||||
Cumulative number of reported claims | Claim | 3,830 | |||||||||
Cumulative Paid | $ 24,225 | 17,332 | 10,217 | |||||||
Accident Year 2020 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 2,636 | 2,590 | 2,339 | |||||||
Total IBNR | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 366 | |||||||||
Cumulative Paid | $ 2,605 | 2,455 | $ 1,307 | |||||||
Accident Year 2021 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 46,598 | 44,797 | ||||||||
Total IBNR | $ 8,860 | |||||||||
Cumulative number of reported claims | Claim | 3,441 | |||||||||
Cumulative Paid | $ 25,293 | 15,892 | ||||||||
Accident Year 2021 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 42,266 | 40,388 | ||||||||
Total IBNR | $ 8,744 | |||||||||
Cumulative number of reported claims | Claim | 2,861 | |||||||||
Cumulative Paid | $ 21,313 | 12,870 | ||||||||
Accident Year 2021 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 4,332 | 4,409 | ||||||||
Total IBNR | $ 116 | |||||||||
Cumulative number of reported claims | Claim | 580 | |||||||||
Cumulative Paid | $ 3,980 | $ 3,022 | ||||||||
Accident Year 2022 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 51,112 | |||||||||
Total IBNR | $ 17,494 | |||||||||
Cumulative number of reported claims | Claim | 2,617 | |||||||||
Cumulative Paid | $ 18,236 | |||||||||
Accident Year 2022 | Commercial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 41,708 | |||||||||
Total IBNR | 16,067 | |||||||||
Cumulative number of reported claims | Claim | 1,965 | |||||||||
Cumulative Paid | 12,839 | |||||||||
Accident Year 2022 | Personal Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred | 9,404 | |||||||||
Total IBNR | $ 1,427 | |||||||||
Cumulative number of reported claims | Claim | 652 | |||||||||
Cumulative Paid | $ 5,397 |
Unpaid Losses and Loss Adjus_10
Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss to the Liability for Claims (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Unpaid losses and ALAE, net of reinsurance | $ 74,996 | |||||
Reinsurance recoverables on unpaid losses | $ 61,101 | 82,651 | $ 40,605 | $ 40,344 | $ 24,218 | $ 22,579 |
ULAE expense | 7,892 | |||||
Total gross unpaid losses and LAE | $ 145,362 | 165,539 | $ 140,938 | $ 139,085 | $ 111,270 | $ 107,246 |
Commercial Lines | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Unpaid losses and ALAE, net of reinsurance | 70,509 | |||||
Reinsurance recoverables on unpaid losses | 81,301 | |||||
Personal Lines | ||||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||||
Unpaid losses and ALAE, net of reinsurance | 4,487 | |||||
Reinsurance recoverables on unpaid losses | $ 1,350 |
Unpaid Losses and Loss Adjus_11
Unpaid Losses and Loss Adjustment Expenses - Loss Duration (FY) (Details) | Dec. 31, 2022 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 35.70% |
Year 2 | 22.80% |
Year 3 | 17.50% |
Year 4 | 9.70% |
Year 5 | 7.70% |
Year 6 | 3.50% |
Year 7 | 1.70% |
Year 8 | 0.80% |
Year 9 | 0.40% |
Year 10, and onwards | 0.20% |
Commercial Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 34.40% |
Year 2 | 23% |
Year 3 | 17.70% |
Year 4 | 10% |
Year 5 | 8% |
Year 6 | 3.60% |
Year 7 | 1.80% |
Year 8 | 0.80% |
Year 9 | 0.40% |
Year 10, and onwards | 0.30% |
Personal Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 69.40% |
Year 2 | 16.60% |
Year 3 | 10.10% |
Year 4 | 2.60% |
Year 5 | 0.90% |
Year 6 | 0.20% |
Year 7 | 0.10% |
Year 8 | 0.10% |
Year 9 | 0% |
Year 10, and onwards | 0% |
Reinsurance - Narrative (FY) (D
Reinsurance - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 36 Months Ended | 48 Months Ended | |||||||||
Nov. 01, 2022 | Jan. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2019 | |
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | $ 9,023,000 | $ 6,653,000 | $ 1,347,000 | $ 6,653,000 | $ 1,347,000 | $ 6,653,000 | |||||||
Stated net reserves retained | 84,261,000 | $ 100,333,000 | 82,888,000 | 98,741,000 | $ 87,052,000 | 82,888,000 | 98,741,000 | 82,888,000 | $ 84,667,000 | ||||
Losses and loss adjustment expenses, net | 13,713,000 | 18,018,000 | 81,440,000 | 69,861,000 | 56,228,000 | ||||||||
Reinsurance recoverables on unpaid losses | 61,101,000 | 40,605,000 | 82,651,000 | 40,344,000 | 24,218,000 | 82,651,000 | 40,344,000 | 82,651,000 | $ 22,579,000 | ||||
Prior period | 1,213,000 | 5,521,000 | 24,284,000 | 19,432,000 | 15,594,000 | ||||||||
Prepaid reinsurance premiums | 21,929,000 | 16,399,000 | 8,301,000 | 16,399,000 | 8,301,000 | 16,399,000 | |||||||
Assumed premiums written | 11,873,000 | 8,168,000 | 42,187,000 | 34,294,000 | 28,905,000 | ||||||||
Ceded premium written | 17,872,000 | 14,943,000 | 46,787,000 | 30,666,000 | 18,395,000 | ||||||||
Ceded premiums earned | 12,342,000 | 8,809,000 | 38,690,000 | 24,248,000 | 17,511,000 | ||||||||
Winter Storm Uri | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Losses and loss adjustment expenses, net | $ 2,000,000 | ||||||||||||
Ceded premium written | 340,000 | ||||||||||||
Ceded premiums earned | 340,000 | ||||||||||||
Hurricane | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Ceded premium written | 1,600,000 | 86,000 | 195,000 | ||||||||||
Ceded premiums earned | 1,600,000 | 86,000 | 195,000 | ||||||||||
Accident Year 2019 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Prior period | $ 1,300,000 | 9,600,000 | |||||||||||
Loss Portfolio Transfer ("LPT") Reinsurance Agreement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | 3,000,000 | 3,800,000 | 3,800,000 | 3,800,000 | |||||||||
Reinsurance recoverables on unpaid losses | 22,000,000 | 25,900,000 | 25,900,000 | 25,900,000 | |||||||||
Minimum | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | $ 46,300,000 | ||||||||||||
100% Cede of Commercial Liability Risks In Excess of $400,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 400,000 | 340,000 | 400,000 | 400,000 | |||||||||
Ceded Commercial Property Risks In Excess of $200,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 400,000 | 300,000 | |||||||||||
Ceded Commercial Property Risks In Excess of $400,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 300,000 | 200,000 | |||||||||||
40% Cede of Commercial Liability Risks In Excess of $400,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | $ 400,000 | ||||||||||||
Reinsurance retention policy, reinsured percentage | 40% | ||||||||||||
60% Cede of Commercial Liability Risks In Excess of $300,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | $ 300,000 | ||||||||||||
Reinsurance retention policy, reinsured percentage | 60% | ||||||||||||
Ceded Homeowners Specific Risks In Excess of $300,000 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 300,000 | 300,000 | $ 300,000 | $ 300,000 | |||||||||
Property Risk | Property, Liability and Casualty Insurance Product Line | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 300,000 | ||||||||||||
Amount reinsured | 7,700,000 | ||||||||||||
Liability Risk | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Percentage of ceding commission | 40% | 40% | |||||||||||
Workers Compensation and Casualty Clash | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 1,000,000 | 1,000,000 | |||||||||||
Amount reinsured | 29,000,000 | 19,000,000 | |||||||||||
Casualty Clash | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | $ 20,000,000 | ||||||||||||
Reinsurance retention policy, reinsured percentage | 87% | ||||||||||||
Amount reinsured | $ 10,000,000 | ||||||||||||
Commercial Auto Physical Damage Risk | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 400,000 | ||||||||||||
Liability Reinsurance Policy | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 400,000 | ||||||||||||
Amount reinsured | $ 600,000 | ||||||||||||
Property Reinsurance Policy | Homeowners Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount reinsured | 1,700,000 | ||||||||||||
Property Reinsurance Policy | Commercial Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 200,000 | 300,000 | |||||||||||
Amount reinsured | 7,800,000 | 7,700,000 | |||||||||||
Property Reinsurance Policy | Property, Liability and Casualty Insurance Product Line | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||
Insured property value | $ 28,000,000 | $ 28,000,000 | $ 28,000,000 | ||||||||||
Termination date | Jun. 01, 2023 | Jun. 01, 2022 | Jun. 01, 2021 | ||||||||||
Property Reinsurance Policy | Maximum | Homeowners Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | $ 300,000 | ||||||||||||
Multiple Line Reinsurance Policy | Commercial Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Amount retained (excess of) | 400,000 | ||||||||||||
Amount reinsured | $ 600,000 | ||||||||||||
Quota Share Reinsurance Agreement | Minimum | Commercial Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance retention policy, reinsured percentage | 90% | ||||||||||||
Quota Share Reinsurance Agreement | Maximum | Commercial Lines | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance retention policy, reinsured percentage | 100% | ||||||||||||
Quota Share Reinsurance Agreement, Other Arrangements | Maximum | Other insurance product line | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance retention policy, reinsured percentage | 100% | ||||||||||||
Insurance Fronting Arrangement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Assumed premiums written | $ 42,200,000 | $ 34,300,000 | $ 28,900,000 | ||||||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Stated net reserves retained | $ 40,800,000 | ||||||||||||
Losses and loss adjustment expenses, net | 5,500,000 | ||||||||||||
One-time risk fee retained | 5,400,000 | ||||||||||||
Amount reinsured | 40,800,000 | ||||||||||||
Fleming Reinsurance Ltd | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | Accident Year 2019 | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | 66,300,000 | ||||||||||||
Stated net reserves retained | $ 40,800,000 | ||||||||||||
Prior period | 20,000,000 | ||||||||||||
Fleming Reinsurance Ltd | Minimum | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | 46,300,000 | ||||||||||||
Fleming Reinsurance Ltd | Maximum | Loss Portfolio Transfer ("LPT") Reinsurance Agreement | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Reinsurance recoverables on paid losses | $ 66,300,000 | ||||||||||||
Corridor | Agreement between CIC and WPIC and Fleming Re | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Losses and loss adjustment expenses, net | 5,500,000 | 5,500,000 | |||||||||||
Layer | Minimum | Agreement between CIC and WPIC and Fleming Re | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Losses and loss adjustment expenses, net | 2,400,000 | 644,000 | |||||||||||
Layer | Maximum | Agreement between CIC and WPIC and Fleming Re | |||||||||||||
Effects Of Reinsurance [Line Items] | |||||||||||||
Losses and loss adjustment expenses, net | $ 20,000,000 | $ 20,000,000 |
Reinsurance - Effects of Rein_2
Reinsurance - Effects of Reinsurance and Assumption Transactions (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Written premiums: | |||||
Direct | $ 24,341 | $ 24,796 | $ 95,832 | $ 97,801 | $ 82,430 |
Assumed | 11,873 | 8,168 | 42,187 | 34,294 | 28,905 |
Ceded | (17,872) | (14,943) | (46,787) | (30,666) | (18,395) |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 |
Earned premiums: | |||||
Direct | 23,315 | 24,123 | 97,843 | 91,943 | 75,130 |
Assumed | 10,979 | 8,641 | 37,558 | 31,107 | 31,484 |
Ceded | (12,342) | (8,809) | (38,690) | (24,248) | (17,511) |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 |
Losses and loss adjustment expenses: | |||||
Direct | 1,969 | 13,066 | 73,000 | 71,021 | 48,780 |
Assumed | 1,497 | 7,408 | 43,487 | 25,740 | 24,429 |
Ceded | 10,247 | (2,456) | (35,047) | (26,900) | (16,981) |
Total net incurred losses and LAE | $ 13,713 | $ 18,018 | $ 81,440 | $ 69,861 | $ 56,228 |
Debt - Narrative (FY) (Details)
Debt - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 24, 2020 | Sep. 24, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Paycheck Protection Program | |||||
Debt Instrument [Line Items] | |||||
Debt | $ 2,700,000 | ||||
Debt instrument, description | The Company received notice from the SBA that the loan was 100% forgiven, including accrued interest, on July 8, 2021. This resulted in a $2.8 million gain that is included in Other Gains on the Consolidated Statement of Operations in 2021 | ||||
Loan forgiven date | Jul. 08, 2021 | ||||
Paycheck Protection Program | Other Gains | |||||
Debt Instrument [Line Items] | |||||
Gain on forgiven loan | $ 2,800,000 | ||||
Senior Unsecured Notes | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 25,300,000 | $ 24,300,000 | $ 24,400,000 | ||
Maturity date | Sep. 30, 2023 | ||||
Interest rate | 6.75% | ||||
Number of units repurchased | 0 | 0 | 0 | ||
Debt issuance costs | $ 130,000 | $ 195,000 | |||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 10,000,000 | ||||
Line of credit | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.75% | ||||
Subordinated notes | Subordinated notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | $ 10,500,000 | $ 10,500,000 | $ 10,500,000 | ||
Maturity date | Sep. 30, 2038 | ||||
Interest rate, payment terms | Interest is payable quarterly at the end of March, June, September and December. | Interest is payable quarterly at the end of March, June, September and December | |||
Call premium percentage | 12.50% | ||||
Debt issuance costs | $ 797,000 | $ 810,000 | |||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.50% | ||||
Call premium | $ 1,100,000 | ||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 12.50% | ||||
Call premium | $ 1,750,000 | ||||
Subordinated notes | Subordinated notes | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument [Line Items] | |||||
Call premium | $ 3,050,000 |
Debt - Outstanding Senior Deb_2
Debt - Outstanding Senior Debt (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 24, 2020 |
Debt Instrument [Line Items] | ||||
Debt | $ 33,954 | $ 33,876 | $ 33,564 | |
Paycheck Protection Program | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 2,700 | |||
Senior Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt | 24,251 | 24,186 | 23,926 | |
Subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 9,703 | $ 9,690 | $ 9,638 |
Income Taxes - Narrative (FY) (
Income Taxes - Narrative (FY) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 13, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||
Current income tax payable | $ 34,000 | |||
Current income tax receivable | $ 58,000 | |||
Effective income tax rate | 21% | 21% | 21% | |
Valuation allowance | $ 21,663,000 | $ 14,594,000 | ||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 65,600,000 | |||
Net operating loss carryforwards, subject to expiration | 50,400,000 | |||
Net operating loss carryforwards, not subject to expiration | 15,200,000 | |||
Net operating loss carryforwards subject to limitations | 7,600,000 | |||
State Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 107,200,000 | $ 14,800,000 | ||
State Tax Authority | Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax statute of limitations period | 3 years | |||
State Tax Authority | Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax statute of limitations period | 4 years |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Current tax expense (benefit) | $ (45) | $ 208 | $ 6 | ||
Deferred tax expense (benefit) | (9,396) | 0 | 0 | ||
Total income tax expense (benefit) | $ 0 | $ (41) | $ (9,441) | $ 208 | $ 6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income (loss) before income taxes | $ 1,180 | $ (2,987) | $ (20,490) | $ (1,710) | $ (238) |
Statutory U.S. federal income tax rate | (4,303) | (359) | (50) | ||
State income taxes, net of federal benefit | (5,984) | 174 | 44 | ||
Tax exempt investment income and dividend received deduction | (22) | (40) | (50) | ||
Nondeductible meals and entertainment | 79 | 33 | 23 | ||
Valuation allowance on deferred tax assets | 3,715 | 676 | (205) | ||
Equity-earnings from Affiliate | 195 | 170 | 88 | ||
Net gain from sale of agency assets | (2,848) | 0 | 0 | ||
Utilization of state NOLs | (386) | 0 | 0 | ||
PPP Loan forgiveness | 0 | (578) | 0 | ||
Other | 113 | 132 | 156 | ||
Total income tax expense (benefit) | $ 0 | $ (41) | $ (9,441) | $ 208 | $ 6 |
Effective tax rate | 46.10% | (12.20%) | (2.60%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (FY) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Discounted unpaid losses and loss adjustment expenses | $ 1,217,000 | $ 1,555,000 |
Unearned premiums | 2,324,000 | 2,561,000 |
Net operating loss carryforwards | 12,152,000 | 12,544,000 |
Net unrealized losses on investments | 3,687,000 | 418,000 |
State net operating loss carryforwards | 5,097,000 | 822,000 |
Other | 403,000 | 102,000 |
Gross deferred tax assets | 24,880,000 | 18,002,000 |
Less valuation allowance | (21,663,000) | (14,594,000) |
Total deferred tax assets, net of allowance | 3,217,000 | 3,408,000 |
Deferred tax liabilities: | ||
Investment basis difference | 23,000 | 15,000 |
Tax rate change transition discounting | 137,000 | 183,000 |
Equity investment in Affiliate | 691,000 | 470,000 |
Net unrealized gains on investments | 0 | 0 |
Deferred policy acquisition costs | 2,161,000 | 2,576,000 |
Intangible assets | 115,000 | 115,000 |
Property and equipment | 41,000 | 47,000 |
Other | 49,000 | 2,000 |
Total deferred tax liabilities | 3,217,000 | 3,408,000 |
Net deferred tax liability | $ 0 | $ 0 |
Statutory Financial Data, Ris_3
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions - Summary of Statutory Basis Information (FY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 47,827 | $ 50,194 | $ 49,271 |
RBC authorized control level | 15,541 | 15,868 | 14,221 |
Statutory net income (loss) | $ (6,846) | $ (9,161) | $ 2,059 |
RBC % | 308% | 316% | 346% |
WPIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 20,651 | $ 23,603 | $ 24,723 |
RBC authorized control level | 5,098 | 5,331 | 4,547 |
Statutory net income (loss) | $ (4,171) | $ (614) | $ 1,024 |
RBC % | 405% | 443% | 544% |
Statutory Financial Data, Ris_4
Statutory Financial Data, Risk-Based Capital and Dividend Restrictions - Narrative (FY) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Dividend restriction percentage of statutory surplus of preceding year | 10% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (FY) (Details) | 3 Months Ended | 12 Months Ended | ||
Aug. 10, 2022 USD ($) $ / shares shares | Mar. 31, 2023 Vote shares | Dec. 31, 2022 USD ($) Vote shares | Dec. 31, 2021 USD ($) shares | |
Equity Class Of Treasury Stock [Line Items] | ||||
Additional paid in capital due to stock repurchase | $ | $ 10,000 | |||
Cash returned from stock repurchase program | $ | $ 14,000 | |||
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock voting rights, number of votes per share | Vote | 1 | 1 | ||
Restricted Stock Units (RSUs) | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 1,968 | 3,886 | ||
Shares repurchased | $ | $ 4,000 | $ 12,000 | ||
Common stocks | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 | |
Private placement | Common stocks | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common equity issued | $ | $ 5,000,000 | |||
Common equity issued (in shares) | 2,500,000 | |||
Offering price per share (in dollars per share) | $ / shares | $ 2 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 18,950 | $ 40,503 | $ 40,503 | $ 44,413 | $ 42,725 |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Balance at ending of period | 22,292 | 30,384 | 18,950 | 40,503 | 44,413 |
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (18,203) | (2,110) | (2,110) | 912 | 489 |
Other comprehensive income (loss) before reclassifications | 2,286 | (7,287) | (16,024) | (2,937) | |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 69 | 85 | |
Net other comprehensive income (loss) | 2,286 | (7,287) | (16,093) | (3,022) | 423 |
Balance at ending of period | $ (15,917) | $ (9,397) | $ (18,203) | $ (2,110) | $ 912 |
Earnings Per Share - Basic an_2
Earnings Per Share - Basic and Diluted Income (Loss) Per Common Share (FY) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 1,001 | $ (2,870) | $ (10,681) | $ (1,094) | $ 595 | ||
Weighted average common shares outstanding, basic | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Weighted average common shares outstanding, diluted | 12,215,849 | [1] | 9,707,817 | [1] | 10,692,090 | 9,691,998 | 9,625,059 |
Earnings (loss) per common share, basic | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
Earnings (loss) per common share, diluted | $ 0.08 | $ (0.3) | $ (1) | $ (0.11) | $ 0.06 | ||
[1]The non-vested shares of the restricted stock units and stock options were anti-dilutive as of March 31, 2023 and 2022. Therefore, the basic and diluted weighted average common shares are equal for the three months ended March 31, 2023 and 2022. |
Stock-based Compensation - Na_2
Stock-based Compensation - Narrative (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 08, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | |
Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options issued to purchase shares of common stock | 630,000 | 280,000 | |||||||
Vesting period | 5 years | 5 years | |||||||
Strike price | $ 4.53 | $ 3.81 | |||||||
Expiration date | Mar. 08, 2032 | Jun. 30, 2030 | |||||||
Estimated fair value of options issued to purchase shares of common stock | $ 612,000 | ||||||||
Estimated value of options issued to purchase shares of common stock | $ 612,000 | $ 290,000 | |||||||
Stock options volatility rate | 65.04% | ||||||||
Options exercisable term | 5 years | ||||||||
Risk free interest rate of options | 1.80% | ||||||||
Risk free interest rate term of options | 5 years | ||||||||
Market value of stock | $ 2.4 | ||||||||
Share-based compensation expense | $ 43,000 | $ 24,000 | |||||||
Share-based compensation expense not yet recognized | $ 595,000 | ||||||||
Share-based compensation nonvested shares | 654,000 | ||||||||
Stock Option | Stock Options Granted on June 30, 2020 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 29,000 | $ 52,000 | $ 53,000 | ||||||
Share-based compensation expense not yet recognized | $ 132,000 | ||||||||
Share-based compensation nonvested shares | 153,000 | ||||||||
Stock Option | Stock Options Granted on March 8, 2022 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 102,000 | ||||||||
Share-based compensation expense not yet recognized | $ 510,000 | ||||||||
Share-based compensation nonvested shares | 630,000 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 12,000 | $ 14,000 | $ 56,000 | $ 166,000 | $ 677,000 | ||||
Share-based compensation expense not yet recognized | $ 4,000 | $ 17,000 | |||||||
Restricted Stock Units (RSUs) | 2015 Omnibus Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 70,000 | 111,281 | |||||||
Shares granted in period | $ 404,000 | $ 909,000 | |||||||
Share-based compensation nonvested shares | 9,000 | 9,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (FY) (Details) $ in Millions | Oct. 13, 2022 USD ($) |
Venture | |
Related Party Transaction [Line Items] | |
Total consideration | $ 9.7 |
Employee Benefit Plans (FY) (De
Employee Benefit Plans (FY) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Minimum employee contribution amount, percentage of gross compensation | 1% | ||
Maximum employee contribution amount, percentage of gross compensation | 100% | ||
Employee matching contribution, percentage of employee gross compensation | 4% | ||
Plan expense | $ 457,000 | $ 508,000 | $ 508,000 |
Commitments and Contingencies_3
Commitments and Contingencies (FY) (Details) | Dec. 31, 2022 USD ($) |
Agreement to Design and Implement New Systems | |
Other Commitments [Line Items] | |
Minimum monthly payment | $ 30,000 |
Segment Information - Narrati_2
Segment Information - Narrative (FY) (Details) - Business | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Number of businesses | 3 | 3 | ||
Gross Written Premiums | Geographic Concentration Risk | Michigan, Florida, Texas and Pennsylvania | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 54.10% | 50.60% | 49.60% |
Segment Information - Summary o
Segment Information - Summary of Net Earned Premiums by Segment (FY) (Details) - Net Earned Premium - Operating Segments - Product Concentration | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net Earned Premium | 100% | 100% | 100% |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Net Earned Premium | 84% | 89% | 92% |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Net Earned Premium | 16% | 11% | 8% |
Segment Information - Informa_2
Segment Information - Information by Reportable Segment (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | $ 36,214 | $ 32,964 | $ 138,019 | $ 132,095 | $ 111,335 | |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 | |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 | |
Other income | 626 | 698 | 2,768 | 2,671 | 2,615 | |
Segment revenue | 22,578 | 24,653 | 99,479 | 101,473 | 91,718 | |
Loss and loss adjustment expenses, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 | |
Policy acquisition costs | 4,721 | 5,464 | 22,179 | 28,451 | 26,105 | |
Operating expenses | 4,279 | 4,160 | 18,789 | 16,509 | 18,468 | |
Loss portfolio transfer risk fee | 5,400 | 0 | 0 | |||
Segment expenses | 22,713 | 27,642 | 127,808 | 114,821 | 100,801 | |
Segment underwriting gain (loss) | (135) | (2,989) | (28,329) | (13,348) | (9,083) | |
Net investment income | 1,307 | 507 | 3,043 | 1,968 | 3,156 | |
Net realized investment gains (losses) | 0 | (69) | (1,505) | 2,878 | 8,126 | |
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 | |
Gain from VSRM Transaction | 8,810 | 0 | 0 | |||
Other gains (losses) | 0 | (5) | 59 | 11,664 | 260 | |
Interest expense | (686) | (711) | (2,971) | (2,852) | (2,925) | |
Income (loss) before equity earnings in Affiliate and income taxes | 1,180 | (2,987) | (20,490) | (1,710) | (238) | |
Deferred policy acquisition costs | 8,326 | 10,124 | 10,290 | 12,267 | 12,243 | $ 11,906 |
Unearned premiums | 69,807 | 67,887 | 65,269 | 56,224 | ||
Unpaid losses and loss adjustment expenses | 145,362 | 140,938 | 165,539 | 139,085 | 111,270 | $ 107,246 |
Operating Segments | Commercial Lines | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | 28,975 | 28,586 | 116,868 | 117,075 | 102,763 | |
Net written premiums | 12,241 | 14,340 | 72,318 | 87,307 | 85,385 | |
Net earned premiums | 17,123 | 20,524 | 80,823 | 87,759 | 82,409 | |
Other income | 52 | 71 | 245 | 215 | 242 | |
Segment revenue | 17,175 | 20,595 | 81,068 | 87,974 | 82,651 | |
Loss and loss adjustment expenses, net | 10,547 | 16,610 | 70,762 | 63,868 | 53,263 | |
Policy acquisition costs | 3,196 | 4,357 | 17,682 | 25,687 | 25,051 | |
Operating expenses | 3,028 | 3,161 | 13,069 | 11,648 | 12,644 | |
Loss portfolio transfer risk fee | 5,400 | |||||
Segment expenses | 16,771 | 24,128 | 106,913 | 101,203 | 90,958 | |
Segment underwriting gain (loss) | 404 | (3,533) | (25,845) | (13,229) | (8,307) | |
Income (loss) before equity earnings in Affiliate and income taxes | 404 | (3,533) | (25,845) | (13,229) | (8,307) | |
Deferred policy acquisition costs | 7,683 | 10,619 | 11,858 | |||
Unearned premiums | 56,565 | 57,491 | 51,535 | |||
Unpaid losses and loss adjustment expenses | 159,558 | 135,084 | 106,662 | |||
Operating Segments | Personal Lines | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | 7,239 | 4,378 | 21,151 | 15,020 | 8,572 | |
Net written premiums | 6,101 | 3,681 | 18,914 | 14,122 | 7,555 | |
Net earned premiums | 4,829 | 3,431 | 15,888 | 11,043 | 6,694 | |
Other income | 23 | 6 | 82 | 143 | 150 | |
Segment revenue | 4,852 | 3,437 | 15,970 | 11,186 | 6,844 | |
Loss and loss adjustment expenses, net | 3,166 | 1,408 | 10,678 | 5,993 | 2,965 | |
Policy acquisition costs | 1,389 | 1,093 | 4,604 | 3,307 | 2,044 | |
Operating expenses | 592 | 402 | 1,936 | 1,357 | 1,069 | |
Segment expenses | 5,147 | 2,903 | 17,218 | 10,657 | 6,078 | |
Segment underwriting gain (loss) | (295) | 534 | (1,248) | 529 | 766 | |
Income (loss) before equity earnings in Affiliate and income taxes | (295) | 534 | (1,248) | 529 | 766 | |
Deferred policy acquisition costs | 2,796 | 2,075 | 1,183 | |||
Unearned premiums | 11,322 | 7,778 | 4,689 | |||
Unpaid losses and loss adjustment expenses | 5,981 | 4,001 | 4,608 | |||
Operating Segments | Underwriting | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross written premiums | 36,214 | 32,964 | 138,019 | 132,095 | 111,335 | |
Net written premiums | 18,342 | 18,021 | 91,232 | 101,429 | 92,940 | |
Net earned premiums | 21,952 | 23,955 | 96,711 | 98,802 | 89,103 | |
Other income | 75 | 77 | 327 | 358 | 392 | |
Segment revenue | 22,027 | 24,032 | 97,038 | 99,160 | 89,495 | |
Loss and loss adjustment expenses, net | 13,713 | 18,018 | 81,440 | 69,861 | 56,228 | |
Policy acquisition costs | 4,585 | 5,450 | 22,286 | 28,994 | 27,095 | |
Operating expenses | 3,620 | 3,563 | 15,005 | 13,005 | 13,713 | |
Segment expenses | 21,918 | 27,031 | 118,731 | 111,860 | 97,036 | |
Segment underwriting gain (loss) | 109 | (2,999) | (21,693) | (12,700) | (7,541) | |
Income (loss) before equity earnings in Affiliate and income taxes | 109 | (2,999) | (21,693) | (12,700) | (7,541) | |
Operating Segments | Wholesale Agency | ||||||
Segment Reporting Information [Line Items] | ||||||
Other income | 879 | 1,112 | 5,712 | 5,848 | 7,571 | |
Segment revenue | 879 | 1,112 | 5,712 | 5,848 | 7,571 | |
Policy acquisition costs | 548 | 758 | 3,653 | 3,727 | 4,938 | |
Operating expenses | 352 | 292 | 2,612 | 2,382 | 3,107 | |
Segment expenses | 900 | 1,050 | 6,265 | 6,109 | 8,045 | |
Segment underwriting gain (loss) | (21) | 62 | (553) | (261) | (474) | |
Net investment income | 32 | |||||
Other gains (losses) | (1) | |||||
Interest expense | (42) | |||||
Income (loss) before equity earnings in Affiliate and income taxes | (21) | 62 | (564) | (261) | (474) | |
Corp-orate | ||||||
Segment Reporting Information [Line Items] | ||||||
Other income | 72 | 147 | 271 | 365 | 245 | |
Segment revenue | 72 | 147 | 271 | 365 | 245 | |
Operating expenses | 307 | 305 | 1,192 | 1,122 | 1,648 | |
Segment expenses | 307 | 305 | 1,192 | 1,122 | 1,648 | |
Segment underwriting gain (loss) | (235) | (158) | (921) | (757) | (1,403) | |
Net investment income | 1,307 | 507 | 3,011 | 1,968 | 3,156 | |
Net realized investment gains (losses) | (69) | (1,505) | 2,878 | 8,126 | ||
Change in fair value of equity securities | 694 | 280 | 403 | (2,020) | 228 | |
Gain from VSRM Transaction | 8,810 | |||||
Other gains (losses) | (5) | 60 | 11,664 | 260 | ||
Interest expense | (686) | (711) | (2,929) | (2,852) | (2,925) | |
Income (loss) before equity earnings in Affiliate and income taxes | 1,080 | (156) | 6,929 | 10,881 | 7,442 | |
Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Other income | (400) | (638) | (3,542) | (3,900) | (5,593) | |
Segment revenue | (400) | (638) | (3,542) | (3,900) | (5,593) | |
Policy acquisition costs | (412) | (744) | (3,760) | (4,270) | (5,928) | |
Operating expenses | (20) | |||||
Segment expenses | (412) | (744) | (3,780) | (4,270) | (5,928) | |
Segment underwriting gain (loss) | 12 | 106 | 238 | 370 | 335 | |
Income (loss) before equity earnings in Affiliate and income taxes | $ 12 | $ 106 | 238 | 370 | 335 | |
Deferred policy acquisition costs | $ (189) | $ (427) | $ (798) |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Balance Sheets (FY) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||||
Due from Affiliate | $ 1,245 | $ 1,261 | $ 5,784 | |||
Other assets | 7,172 | 7,862 | 8,524 | |||
Total assets | 293,171 | 312,350 | 290,404 | |||
Liabilities: | ||||||
Debt | 33,954 | 33,876 | 33,564 | |||
Total liabilities | 270,879 | 293,400 | 249,901 | |||
Shareholders' equity: | ||||||
Common stock, no par value (100,000,000 shares authorized; 12,215,849 and 9,707,817 issued and outstanding, respectively) | 97,968 | 97,913 | 92,692 | |||
Accumulated deficit | (59,759) | (60,760) | (50,079) | |||
Accumulated other comprehensive income (loss) | (15,917) | (18,203) | (2,110) | |||
Total shareholders' equity | 22,292 | 18,950 | $ 30,384 | 40,503 | $ 44,413 | $ 42,725 |
Total liabilities and shareholders' equity | $ 293,171 | 312,350 | 290,404 | |||
Parent Company | ||||||
Assets | ||||||
Investment in subsidiaries | 56,670 | 79,511 | ||||
Cash | 9,022 | 750 | ||||
Due from subsidiaries | (9,754) | (7,055) | ||||
Due from Affiliate | 113 | 220 | ||||
Other assets | 2,434 | 2,522 | ||||
Total assets | 58,485 | 75,948 | ||||
Liabilities: | ||||||
Debt | 33,876 | 33,564 | ||||
Other liabilities | 5,659 | 1,881 | ||||
Total liabilities | 39,535 | 35,445 | ||||
Shareholders' equity: | ||||||
Common stock, no par value (100,000,000 shares authorized; 12,215,849 and 9,707,817 issued and outstanding, respectively) | 97,913 | 92,692 | ||||
Accumulated deficit | (60,760) | (50,079) | ||||
Accumulated other comprehensive income (loss) | (18,203) | (2,110) | ||||
Total shareholders' equity | 18,950 | 40,503 | ||||
Total liabilities and shareholders' equity | $ 58,485 | $ 75,948 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Balance Sheets Stock Information (FY) (Details) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Common stock, shares outstanding (in shares) | 12,215,849 | 12,215,849 | 9,707,817 |
Parent Company | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, shares issued (in shares) | 12,215,849 | 9,707,817 | |
Common stock, shares outstanding (in shares) | 12,215,849 | 9,707,817 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Statements of Comprehensive Income (Loss) (FY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue and Other Income | |||||
Revenue | $ 24,579 | $ 25,366 | $ 104,889 | $ 115,963 | $ 103,488 |
Other income | 626 | 698 | 2,768 | 2,671 | 2,615 |
Expenses | |||||
Operating expenses | 4,279 | 4,160 | 18,789 | 16,509 | 18,468 |
Interest expense | 686 | 711 | 2,971 | 2,852 | 2,925 |
Total expenses | 23,399 | 28,353 | 125,379 | 117,673 | 103,726 |
Income tax expense (benefit) | 0 | (41) | (9,441) | 208 | 6 |
Net income (loss) | 1,001 | (2,870) | (10,681) | (1,094) | 595 |
Other Comprehensive Income | |||||
Other comprehensive income (loss) | $ 2,286 | $ (7,287) | (16,093) | (3,022) | 423 |
Parent Company | |||||
Revenue and Other Income | |||||
Revenue | 5,170 | 18,852 | 13,010 | ||
Other income | 190 | 2,900 | 483 | ||
Expenses | |||||
Operating expenses | 14,365 | 12,736 | 14,459 | ||
Interest expense | 2,816 | 2,852 | 2,925 | ||
Total expenses | 17,181 | 15,588 | 17,384 | ||
Income (loss) before equity in earnings (losses) of subsidiaries and income tax expense (benefit) | (12,011) | 3,264 | (4,374) | ||
Income tax expense (benefit) | (4,078) | 156 | (813) | ||
Income (loss) before equity earnings (losses) of subsidiaries | (7,933) | 3,108 | (3,561) | ||
Equity earnings (losses) in subsidiaries | (2,748) | (4,202) | 4,156 | ||
Net income (loss) | (10,681) | (1,094) | 595 | ||
Other Comprehensive Income | |||||
Other comprehensive income (loss) | (16,093) | (3,022) | 423 | ||
Total Comprehensive income (loss) | (26,774) | (4,116) | 1,018 | ||
Parent Company | Management fees from subsidiaries | |||||
Revenue and Other Income | |||||
Revenue | $ 4,980 | $ 15,952 | $ 12,527 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Statement of Cash Flows (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash Flows from Operating Activities | ||||||
Net income (loss) | $ 1,001,000 | $ (2,870,000) | $ (10,681,000) | $ (1,094,000) | $ 595,000 | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization | 98,000 | 102,000 | 417,000 | 423,000 | 437,000 | |
Stock-based compensation expense | 179,000 | (76,000) | (368,000) | (824,000) | (839,000) | |
Deferred income tax expense | (9,396,000) | 0 | 0 | |||
Other (gain) loss | 0 | 5,000 | (59,000) | (11,664,000) | (260,000) | |
Changes in operating assets and liabilities: | ||||||
Other assets | (418,000) | (719,000) | (138,000) | 949,000 | 908,000 | |
Net cash provided by (used in) operating activities | (6,018,000) | (8,527,000) | (40,474,000) | 5,355,000 | 2,982,000 | |
Cash Flows From Investing Activities | ||||||
Contributions to subsidiaries | [1] | (1,947,000) | ||||
Purchases of investments | (60,052,000) | (68,116,000) | (318,227,000) | (226,794,000) | (391,588,000) | |
Net cash provided by (used in) investing activities | (468,000) | 1,451,000 | 56,503,000 | 1,377,000 | (7,337,000) | |
Cash Flows From Financing Activities | ||||||
Proceeds received from issuance of shares of common stock | 5,000,000 | |||||
Repurchase of common stock | 10,000 | (12,000) | (36,000) | |||
Net cash provided by (used in) financing activities | 5,000,000 | 2,093,000 | (5,012,000) | 5,084,000 | ||
Net increase (decrease) in cash | (6,486,000) | (2,076,000) | 18,122,000 | 1,720,000 | 729,000 | |
Cash at beginning of period | 28,035,000 | 9,913,000 | 9,913,000 | 8,193,000 | 7,464,000 | |
Cash at end of period | 21,549,000 | 7,837,000 | 28,035,000 | 9,913,000 | 8,193,000 | |
Supplemental Disclosure of Cash Flow Information: | ||||||
Interest paid | 686,000 | 699,000 | 2,979,000 | 2,883,000 | 2,586,000 | |
Parent Company | ||||||
Cash Flows from Operating Activities | ||||||
Net income (loss) | (10,681,000) | (1,094,000) | 595,000 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization | 436,000 | 415,000 | 421,000 | |||
Equity in undistributed (income) loss of subsidiaries | 2,748,000 | 4,202,000 | (4,156,000) | |||
Stock-based compensation expense | 211,000 | 218,000 | 706,000 | |||
Deferred income tax expense | 3,884,000 | |||||
Other (gain) loss | (2,593,000) | (260,000) | ||||
Changes in operating assets and liabilities: | ||||||
Due from subsidiaries | 2,699,000 | 8,800,000 | (852,000) | |||
Due from Affiliate | 107,000 | (220,000) | 214,000 | |||
Current income tax recoverable | 0 | 0 | 539,000 | |||
Other assets | 62,000 | 890,000 | 625,000 | |||
Other liabilities | (203,000) | (915,000) | (715,000) | |||
Net cash provided by (used in) operating activities | (737,000) | 9,703,000 | (2,883,000) | |||
Cash Flows From Investing Activities | ||||||
Contributions to subsidiaries | 4,000,000 | (5,400,000) | (1,150,000) | |||
Dividends received from subsidiaries | 0 | 0 | 0 | |||
Purchases of investments | 0 | 0 | (79,000) | |||
Purchases of property and equipment | 0 | (20,000) | 0 | |||
Net cash provided by (used in) investing activities | 4,000,000 | (5,420,000) | (1,229,000) | |||
Cash Flows From Financing Activities | ||||||
Proceeds received from issuance of shares of common stock | 5,000,000 | 0 | 0 | |||
Repurchase of common stock | 10,000 | (12,000) | (36,000) | |||
Borrowings under debt arrangements | 5,000,000 | 3,000,000 | 5,745,000 | |||
Repayment of lines of credit | (5,000,000) | (8,000,000) | (625,000) | |||
Stock and debt issuance costs | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | 5,010,000 | (5,012,000) | 5,084,000 | |||
Net increase (decrease) in cash | 8,273,000 | (729,000) | 972,000 | |||
Cash at beginning of period | $ 9,022,000 | $ 749,000 | 749,000 | 1,478,000 | 506,000 | |
Cash at end of period | 9,022,000 | 749,000 | 1,478,000 | |||
Supplemental Disclosure of Cash Flow Information: | ||||||
Interest paid | $ 2,979,000 | $ 2,883,000 | $ 2,586,000 | |||
[1]See Note 2 ~ VSRM Transaction |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - Additional Information (FY) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantee of debt | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Guarantee obligation | $ 10,000,000 | $ 10,000,000 | ||
Interest rate | 4% | 4% | ||
Parent Company | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Dividends received from subsidiaries during period | $ 0 | $ 0 | $ 0 | |
Non-cash dividend received from subsidiary | $ 6,000,000 | |||
Parent Company | Sycamore | ||||
Condensed Cash Flow Statements Captions [Line Items] | ||||
Dividends received from subsidiaries during period | $ 10,800,000 |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (FY) (Details) - Valuation for Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 14,594 | $ 13,292 | $ 13,572 |
Charged to Expense | 3,715 | 676 | (205) |
Decrease to Other Comprehensive Income | 3,354 | 626 | (75) |
Deductions from Allowance Account | 0 | 0 | 0 |
Balance at End of Period | $ 21,663 | $ 14,594 | $ 13,292 |