Conifer (CNFR) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
Cover [Abstract]
Entity Registrant Name	Conifer Holdings, Inc.
Entity Central Index Key	0001502292
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,678,463
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	CNFR
Security Exchange Name	NASDAQ
Entity File Number	001-37536
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	27-1298795
Entity Address, Address Line One	550 West Merrill Street
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Birmingham
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48009
City Area Code	248
Local Phone Number	559-0840
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment securities:
Debt securities, at fair value (amortized cost of $135,883 and $129,313, respectively)	$ 139,441	$ 131,000
Equity securities, at fair value (cost of $17,027 and $6,554, respectively)	15,913	7,306
Short-term investments, at fair value	24,898	31,426
Total investments	180,252	169,732
Cash and cash equivalents	7,550	7,464
Premiums and agents' balances receivable, net	20,137	20,168
Receivable from Affiliate	12	313
Reinsurance recoverables on unpaid losses	18,564	22,579
Reinsurance recoverables on paid losses	3,496	5,155
Prepaid reinsurance premiums	4,543	1,250
Deferred policy acquisition costs	12,277	11,906
Other assets	13,062	8,698
Total assets	259,893	247,265
Liabilities:
Unpaid losses and loss adjustment expenses	103,684	107,246
Unearned premiums	55,089	51,503
Debt	40,920	35,824
Accounts payable and accrued expenses	17,614	9,967
Total liabilities	217,307	204,540
Commitments and contingencies	0	0
Shareholders' equity:
Common stock, no par value (100,000,000 shares authorized; 9,678,463 and 9,592,861 issued and outstanding, respectively)	92,417	91,816
Accumulated deficit	(52,259)	(49,580)
Accumulated other comprehensive income (loss)	2,428	489
Total shareholders' equity	42,586	42,725
Total liabilities and shareholders' equity	$ 259,893	$ 247,265

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Debt securities, amortized cost	$ 135,883	$ 129,313
Equity securities, amortized cost	$ 17,027	$ 6,554
Common stock, no par value (in dollars per share)
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	9,678,463	9,592,861
Common stock, shares outstanding (in shares)	9,678,463	9,592,861

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Gross earned premiums	$ 26,872	$ 25,962	$ 78,884	$ 76,594
Ceded earned premiums	(4,645)	(3,187)	(12,882)	(10,783)
Net earned premiums	22,227	22,775	66,002	65,811
Net investment income	776	1,210	2,593	3,171
Net realized investment gains	3,316	390	4,489	1,124
Change in fair value of equity securities	(356)	(1,065)	(1,866)	(715)
Other gains			260
Other income	642	564	2,013	1,567
Total revenue	26,605	23,874	73,491	70,958
Expenses
Losses and loss adjustment expenses, net	14,553	14,857	40,767	43,695
Policy acquisition costs	6,483	6,153	19,181	17,952
Operating expenses	4,537	4,297	14,441	12,960
Interest expense	723	720	2,185	2,155
Total expenses	26,296	26,027	76,574	76,762
Income (loss) before equity earnings in Affiliate and income taxes	309	(2,153)	(3,083)	(5,804)
Equity earnings (losses) in Affiliate, net of tax	188	121	417	219
Income tax expense (benefit)	(44)	(802)	13	(791)
Net income (loss)	$ 541	$ (1,230)	$ (2,679)	$ (4,794)
Earnings (loss) per common share, basic and diluted	$ 0.06	$ (0.13)	$ (0.28)	$ (0.55)
Weighted average common shares outstanding, basic and diluted	9,630,600	9,543,535	9,606,436	8,640,409

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 541	$ (1,230)	$ (2,679)	$ (4,794)
Unrealized investment gains (losses):
Unrealized investment gains (losses) during the period	(1,085)	812	2,617	3,735
Income tax (benefit) expense	0	818	0	818
Unrealized investment gains (losses), net of tax	(1,085)	(6)	2,617	2,917
Less: reclassification adjustments to:
Net realized investment gains (losses) included in net income (loss)	292	(41)	678	(151)
Income tax (benefit) expense	0	0	0	0
Total reclassifications included in net income (loss), net of tax	292	(41)	678	(151)
Other comprehensive income (loss)	(1,377)	35	1,939	3,068
Total comprehensive income (loss)	$ (836)	$ (1,195)	$ (740)	$ (1,726)

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	No Par, Common Stock	Retained Earnings (Accumulated)	Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period at Dec. 31, 2018	$ 42,163	$ 86,533	$ (41,758)	$ (2,612)
Balance at beginning of period (in shares) at Dec. 31, 2018		8,478,202
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,794)		(4,794)
Repurchase of common stock	(674)	$ (674)
Repurchase of common stock (in shares)		(162,875)
Issuance of common stock private placement	5,000	$ 5,000
Issuance of common stock in private placement (in shares)		1,176,471
Other comprehensive income (loss)	3,068			3,068
Restricted stock unit expense, net	719	$ 719
Restricted stock unit expense, net (in shares)		97,075
Balance at end of period at Sep. 30, 2019	45,482	$ 91,578	(46,552)	456
Balance at ending of period (in shares) at Sep. 30, 2019		9,588,873
Balance at beginning of period at Jun. 30, 2019	46,509	$ 91,410	(45,322)	421
Balance at beginning of period (in shares) at Jun. 30, 2019		9,519,550
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,230)		(1,230)
Repurchase of common stock	(66)	$ (66)
Repurchase of common stock (in shares)		(17,752)
Other comprehensive income (loss)	35			35
Restricted stock unit expense, net	234	$ 234
Restricted stock unit expense, net (in shares)		87,075
Balance at end of period at Sep. 30, 2019	45,482	$ 91,578	(46,552)	456
Balance at ending of period (in shares) at Sep. 30, 2019		9,588,873
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2,679)		(2,679)
Repurchase of common stock	(35)	$ (35)
Repurchase of common stock (in shares)		(11,211)
Other comprehensive income (loss)	1,939			1,939
Stock-based compensation expense	636	$ 636
Stock-based compensation expense, Shares		96,813
Balance at end of period at Sep. 30, 2020	42,586	$ 92,417	(52,259)	2,428
Balance at ending of period (in shares) at Sep. 30, 2020		9,678,463
Balance at beginning of period at Jun. 30, 2020	43,280	$ 92,275	(52,800)	3,805
Balance at beginning of period (in shares) at Jun. 30, 2020		9,598,155
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	541		541
Repurchase of common stock	(19)	$ (19)
Repurchase of common stock (in shares)		(6,505)
Other comprehensive income (loss)	(1,377)			(1,377)
Stock-based compensation expense	161	$ 161
Stock-based compensation expense, Shares		86,813
Balance at end of period at Sep. 30, 2020	$ 42,586	$ 92,417	$ (52,259)	$ 2,428
Balance at ending of period (in shares) at Sep. 30, 2020		9,678,463

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities
Net income (loss)	$ (2,679)	$ (4,794)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	330	342
Amortization of bond premium and discount, net	469	342
Net realized investment (gains) losses	(4,489)	(1,124)
Change in fair value of equity securities	1,866	715
Stock based compensation expenses	636	719
Other	(678)	(1,038)
(Increase) decrease in:
Premiums and agents' balances and other receivables	332	5,667
Reinsurance recoverables	5,674	10,224
Prepaid reinsurance premiums	(3,293)	(1,692)
Deferred policy acquisition costs	(371)	(868)
Other assets	281	(3,326)
Increase (decrease) in:
Unpaid losses and loss adjustment expenses	(3,562)	4,530
Unearned premiums	3,586	(131)
Accounts payable and other liabilities	(1,097)	(2,222)
Net cash provided by (used in) operating activities	(2,995)	7,344
Cash Flows From Investing Activities
Purchase of investments	(245,583)	(74,466)
Proceeds from maturities and redemptions of investments	16,648	13,122
Proceeds from sales of investments	226,993	69,760
Purchases of property and equipment	(62)	(24)
Net cash provided by (used in) investing activities	(2,004)	8,392
Cash Flows From Financing Activities
Proceeds received from issuance of shares of common stock	0	5,000
Repurchase of common stock	(35)	(674)
Repurchase of senior unsecured notes	(625)	0
Borrowings under debt arrangements	5,745	1,000
Repayment of borrowings under debt arrangements	0	(1,000)
Net cash provided by financing activities	5,085	4,326
Net increase (decrease) in cash	86	20,062
Cash at beginning of period	7,464	10,792
Cash at end of period	7,550	30,854
Supplemental Disclosure of Cash Flow Information:
Interest paid	$ 1,938	$ 1,907

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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"), and Sycamore Insurance Agency, Inc. ("SIA"). 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." 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, 2019, as filed with the SEC. The results of operations for the nine months ended September 30, 2020, are not necessarily indicative of the results expected for the year ended December 31, 2020. Results for interim periods are not necessarily indicative of the results that may be expected for a full year, especially when considering the risks and uncertainties associated with the novel coronavirus ("COVID-19") and the impact it may have on our business, results of operations and financial condition. The COVID-19 pandemic has negatively impacted the U.S. and global economies, lowered equity market valuations, created significant volatility and disruption in the capital markets, dramatically increased unemployment levels and has fueled concerns that it will lead to a global recession. Depending on the duration and severity of the pandemic, we foresee the potential for adverse impacts related to, among other things: (i) sales results; (ii) insurance product margin; (iii) net investment income; (iv) invested assets; (v) regulatory capital; (vi) liabilities for insurance products; (vii) access to capital markets; and (viii) the present value of future profits. The full extent to which COVID-19 will impact our business, results of operations and financial condition remains uncertain. 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 Birmingham, Michigan with additional office facilities in Florida, Michigan and Pennsylvania. 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 Issued Accounting Guidance In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) Early Adoption of ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]
Investments	2. 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 September 30, 2020 and December 31, 2019, were as follows (dollars in thousands): September 30, 2020 Cost or Gross Unrealized Estimated Amortized Cost Gains Losses Fair Value Debt Securities: U.S. Government $ 9,777 $ 257 $ — $ 10,034 State and local government 27,925 926 (50 ) 28,801 Corporate debt 30,857 1,425 (137 ) 32,145 Asset-backed securities 18,756 195 (136 ) 18,815 Mortgage-backed securities 37,148 592 (5 ) 37,735 Commercial mortgage-backed securities 5,441 382 (23 ) 5,800 Collateralized mortgage obligations 5,979 141 (9 ) 6,111 Total debt securities available for sale $ 135,883 $ 3,918 $ (360 ) $ 139,441 December 31, 2019 Cost or Gross Unrealized Estimated Amortized Cost Gains Losses Fair Value Debt Securities: U.S. Government $ 9,392 $ 66 $ (6 ) $ 9,452 State and local government 14,388 545 — 14,933 Corporate debt 39,550 865 (21 ) 40,394 Asset-backed securities 19,549 81 (55 ) 19,575 Mortgage-backed securities 31,389 238 (112 ) 31,515 Commercial mortgage-backed securities 9,972 116 (45 ) 10,043 Collateralized mortgage obligations 5,073 29 (14 ) 5,088 Total debt securities available for sale $ 129,313 $ 1,940 $ (253 ) $ 131,000 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): September 30, 2020 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 — $ — $ — — $ — $ — — $ — $ — State and local government 22 4,423 (50 ) — — — 22 4,423 (50 ) Corporate debt 4 2,683 (137 ) — — — 4 2,683 (137 ) Asset-backed securities 8 5,602 (53 ) 11 6,507 (83 ) 19 12,109 (136 ) Mortgage-backed securities 2 2,869 (5 ) — — — 2 2,869 (5 ) Commercial mortgage-backed securities 1 900 (23 ) — — — 1 900 (23 ) Collateralized mortgage obligations 3 687 (9 ) — — — 3 687 (9 ) Total debt securities available for sale 40 $ 17,164 $ (277 ) 11 $ 6,507 $ (83 ) 51 $ 23,671 $ (360 ) December 31, 2019 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 — $ — $ — 4 $ 1,047 $ (6 ) 4 $ 1,047 $ (6 ) State and local government — — — — — — — — — Corporate debt 7 3,720 (17 ) 3 1,697 (4 ) 10 5,417 (21 ) Asset-backed securities 3 2,596 (1 ) 18 11,836 (54 ) 21 14,432 (55 ) Mortgage-backed securities 3 715 (1 ) 13 7,812 (111 ) 16 8,527 (112 ) Commercial mortgage-backed securities 6 6,837 (45 ) — — — 6 6,837 (45 ) Collateralized mortgage obligations 8 2,081 (14 ) — — — 8 2,081 (14 ) Total debt securities available for sale 27 $ 15,949 $ (78 ) 38 $ 22,392 $ (175 ) 65 $ 38,341 $ (253 ) The Company analyzed its investment portfolio in accordance with its other-than-temporary impairment ("OTTI") review procedures and determined the Company did not need to record a credit-related OTTI loss in net income, nor recognize a non-credit related OTTI loss in other comprehensive income for the three and nine months ended September 30, 2020 and 2019. The Company’s sources of net investment income and losses are as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Debt securities $ 794 $ 861 $ 2,590 $ 2,716 Equity securities 60 247 168 322 Cash, cash equivalents and short-term investments — 156 143 342 Total investment income 854 1,264 2,901 3,380 Investment expenses (78 ) (54 ) (308 ) (209 ) Net investment income $ 776 $ 1,210 $ 2,593 $ 3,171 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Debt securities: Gross realized gains $ 2,037 $ 8 $ 2,757 $ 231 Gross realized losses (2 ) (1 ) (6 ) (53 ) Total debt securities 2,035 7 2,751 178 Equity securities: Gross realized gains 1,905 397 2,853 985 Gross realized losses (624 ) (14 ) (1,115 ) (39 ) Total equity securities 1,281 383 1,738 946 Total net realized investment gains (losses) $ 3,316 $ 390 $ 4,489 $ 1,124 Proceeds from the sales of available-for-sale debt securities were $58.3 million and $24.0 million for the nine months ended September 30, 2020 and 2019, respectively. The gross realized gains and losses from the sales of available-for-sale debt securities for the three months ended September 30, 2020, were $2.0 million and $0, respectively. The gross realized gains and losses from the sales of available-for-sale debt securities for the nine months ended September 30, 2020 were $2.8 million and $0, respectively. The gross realized gains and losses from the sales of available-for-sale debt securities for the three months ended September 30, 2019 were $7,000 and $2,000. The gross realized gains and losses from the sales of available-for-sale debt securities for the nine months ended September 30, 2019, were $236,000 and $53,000, respectively. As of September 30, 2020 and 2019, there were $10.8 million and $0 of payables from securities purchased, respectively. There were $3.5 million and $0 of receivables from securities sold as of September 30, 2020 and 2019, respectively. The Company 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 2020 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 $665,000 and $1.2 million as of September 30, 2020 and December 31, 2019, respectively. The table below summarizes the amortized cost and fair value of available-for-sale debt securities by contractual maturity at September 30, 2020. 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 $ 7,796 $ 7,852 Due after one year through five years 35,457 37,150 Due after five years through ten years 10,036 10,470 Due after ten years 15,270 15,508 Securities with contractual maturities 68,559 70,980 Asset-backed securities 18,756 18,815 Mortgage-backed securities 37,148 37,735 Commercial mortgage-backed securities 5,441 5,800 Collateralized mortgage obligations 5,979 6,111 Total debt securities $ 135,883 $ 139,441 At September 30, 2020 and December 31, 2019, the Insurance Company Subsidiaries had $8.8 million and $8.0 million, respectively, on deposit in trust accounts to meet the deposit requirements of various state insurance departments. At September 30, 2020 and December 31, 2019, the Company had $63.2 million and $58.4 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.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. The Company’s financial instruments include assets and liabilities carried at fair value, as well as assets and liabilities carried at cost or amortized cost but disclosed at fair value in these consolidated financial statements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principally 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. The Level 2 financial instruments also include our line of credit and our Paycheck Protection Program loan. 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 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 on a recurring basis, classified by the valuation hierarchy as of September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 10,034 $ — $ 10,034 $ — State and local government 28,801 — 28,801 — Corporate debt 32,145 — 32,145 — Asset-backed securities 18,815 — 18,815 — Mortgage-backed securities 37,735 — 37,735 — Commercial mortgage-backed securities 5,800 — 5,800 — Collateralized mortgage obligations 6,111 — 6,111 — Total debt securities 139,441 — 139,441 — Equity Securities 15,239 14,956 283 — Short-term investments 24,898 24,898 — — Total marketable investments measured at fair value $ 179,578 $ 39,854 $ 139,724 $ — Investments measured at NAV: Investment in limited partnership 674 Total assets measured at fair value $ 180,252 Liabilities: Senior Unsecured Notes * $ 21,192 $ — $ 21,192 $ — Subordinated Notes * 11,589 — — 11,589 Line of credit * 5,000 — 5,000 — Paycheck Protection Program loan * 2,745 — 2,745 — Total Liabilities measured at fair value $ 40,526 $ — $ 28,937 $ 11,589 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2019 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 9,452 $ — $ 9,452 $ — State and local government 14,933 — 14,933 — Corporate debt 40,394 — 40,394 — Asset-backed securities 19,575 — 19,575 — Mortgage-backed securities 31,515 — 31,515 — Commercial mortgage-backed securities 10,043 — 10,043 — Collateralized mortgage obligations 5,088 — 5,088 — Total debt securities 131,000 — 131,000 — Equity securities 6,599 6,335 264 — Short-term investments 31,426 31,426 — — Total marketable investments measured at fair value $ 169,025 $ 37,761 $ 131,264 $ — Investments measured at NAV: Investment in limited partnership 707 Total assets measured at fair value $ 169,732 Liabilities: Senior Unsecured Notes * $ 22,669 $ — $ 22,669 $ — Subordinated Notes * 11,222 — — 11,222 Line of Credit * 2,000 — 2,000 — Total Liabilities measured at fair value $ 35,891 $ — $ 24,669 $ 11,222 * 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 22.1% of the fair value of the total investment portfolio as of September 30, 2020. Level 2 investments include debt 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 77.5% of the fair value of the total investment portfolio as of September 30, 2020. 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. The Level 2 financial instruments also include the Company's senior debt. The fair value of the borrowings under the senior revolving credit facility approximates its carrying amount because interest is based on a short-term, variable, market-based rate. As of September 30, 2020 and December 31, 2019, Level 3 is entirely comprised of the Company's subordinated debt. In determining the fair value of the subordinated debt outstanding at September 30, 2020, the security attributes (issue date, maturity, coupon, calls, etc.) and market rates on September 24, 2018 (the date of issuance) were fed 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 fed back into the model along with the September 30, 2020 and December 31, 2019 U.S. Treasury rates. 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	9 Months Ended
	Sep. 30, 2020
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 nine months ended September 30, 2020 and 2019. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 11,693 $ 12,302 $ 11,906 $ 12,011 Deferred policy acquisition costs 7,067 6,730 19,552 18,820 Amortization of policy acquisition costs (6,483 ) (6,153 ) (19,181 ) (17,952 ) Net change 584 577 371 868 Balance at end of period $ 12,277 $ 12,879 $ 12,277 $ 12,879

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 2020
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, net 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 reinsurance recoverables, for the periods indicated as follows (dollars in thousands): Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Gross reserves - beginning of period $ 106,734 $ 97,981 $ 107,246 $ 92,807 Less: reinsurance recoverables on unpaid losses (20,892 ) (21,396 ) (22,579 ) (29,685 ) Plus: deferred gain on ADC 481 5,677 Net reserves - beginning of period 85,842 77,066 84,667 68,799 Add: incurred losses and LAE, net of reinsurance: Current period 9,858 12,154 29,286 36,619 Prior period 4,695 2,703 11,481 7,076 Total net incurred losses and LAE 14,553 14,857 40,767 43,695 Deduct: loss and LAE payments, net of reinsurance: Current period 5,149 4,933 9,067 8,675 Prior period 10,126 6,515 31,247 23,344 Total net loss and LAE payments 15,275 11,448 40,314 32,019 Net reserves - end of period 85,120 80,475 85,120 80,475 Plus: reinsurance recoverables on unpaid losses 18,564 16,862 18,564 16,862 Less: deferred gain on ADC — — — — Gross reserves - end of period $ 103,684 $ 97,337 $ 103,684 $ 97,337 In September 2017, the Company entered into an adverse development cover reinsurance agreement (the "ADC") to cover loss development of up to $17.5 million in excess of stated reserves as of June 30, 2017. The agreement provided up to $17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. The Company had ceded to the limit of the ADC and the deferred gain from the ADC had been fully utilized during 2019, thus there was no impact from the ADC in 2020. The Company’s incurred losses during the three and nine months ended September 30, 2020 include prior-year adverse reserve development of $4.7 million and $11.5 million, respectively. The adverse development mostly came from commercial liability lines within the hospitality businesses. The Company’s incurred losses during the three and nine months ended September 30, 2019 included prior-year adverse reserve development of $2.7 million and $7.1 million, respectively. The reported reserve development was net of the amortization of the deferred gain on the ADC of $481,000 and $5.7 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2019, the deferred gain on the ADC was fully recognized. The adverse development mainly stemmed from commercial liability and Florida homeowners lines of business.

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Reinsurance	6. 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 40% of specific commercial property risks in excess of $400,000 and 60% in excess of $300,000 in both 2020 and 2019 and primarily ceded all specific commercial liability risks in excess of $400,000 in 2020 and 2019. The Company ceded homeowners specific risks in excess of $300,000 in both 2020 and 2019. 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. 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Written premiums: Direct $ 21,434 $ 16,973 $ 60,659 $ 50,390 Assumed 8,407 10,104 21,811 26,072 Ceded (4,798 ) (3,271 ) (13,311 ) (10,900 ) Net written premiums $ 25,043 $ 23,806 $ 69,159 $ 65,562 Earned premiums: Direct $ 19,281 $ 17,606 $ 54,652 $ 52,864 Assumed 7,591 8,356 24,232 23,730 Ceded (4,645 ) (3,187 ) (12,882 ) (10,783 ) Net earned premiums $ 22,227 $ 22,775 $ 66,002 $ 65,811 Losses and LAE: Direct $ 11,249 $ 13,232 $ 34,314 $ 47,464 Assumed 5,841 5,667 15,810 15,922 Ceded (2,537 ) (4,042 ) (9,357 ) (19,691 ) Net Losses and LAE $ 14,553 $ 14,857 $ 40,767 $ 43,695

Debt

Debt	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Debt	7. The Company's debt is comprised of four instruments: $24.4 million of publicly traded senior unsecured notes which were issued in September and October of 2018, a $10.0 million line of credit which commenced in June 2018, $10.5 million of privately placed subordinated notes (the “Subordinated Notes”), and a $2.7 million Paycheck Protection Program (the “PPP loan”) issued as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A summary of the Company's outstanding debt is as follows (dollars in thousands): September 30, 2020 December 31, 2019 Senior unsecured notes $ 23,601 $ 24,288 Subordinated notes 9,574 9,536 Line of credit 5,000 2,000 PPP loan * 2,745 — Total $ 40,920 $ 35,824 * The PPP loan was embedded into the line of credit facility. See below 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. The Company did not repurchase any of the Notes for the three months ended September 30, 2020. For the nine months ended September 30, 2020, the Company repurchased 36,761 units in the public market with a face value of $919,000. The Notes were repurchased at a discount to face value, which resulted in a $260,000 gain on extinguishment for the nine months ended September 30, 2020. This gain is reflected in the Consolidated Statement of Operations as Other gains. 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 September 30, 2020, the carrying value of the Notes and Subordinated Notes are offset by $780,000 and $926,000 of debt issuance costs, respectively. The debt issuance costs will be 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. At September 30, 2020, the Company was in compliance with all of its financial debt financial covenants. Line of credit The Company maintains a $10.0 million line of credit with a national bank (the “Lender”). The line of credit bears interest at the London Interbank rate ("LIBOR") plus 2.75% per annum, payable monthly. The agreement includes several financial debt covenants, including a minimum tangible net worth, a minimum fixed-charge coverage ratio, and minimum statutory risk-based capital levels. As of September 30, 2020, the Company had $7.75 million outstanding on the line of credit (including the PPP loan described below), and was in compliance with all of its financial debt covenants. On June 19, 2020, the line of credit was renewed with a maturity of June 18, 2021. Paycheck Protection Program loan On April 24, 2020, the Company received a $2,745,000 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 PPP loan was incorporated into the existing line of credit facility and utilizes a portion of the line of credit’s limit. However, the PPP loan has a different maturity date (April 24, 2022) in accordance with the SBA requirements and bears interest at a rate of 1.0% per annum. The Company amended its $10.0 million line of credit facility with the Lender to incorporate this loan as a reduction of the available line of credit. Beginning November 24, 2020, the Company is required to pay the Lender equal monthly payments of principal and interest as necessary to fully amortize by April 24, 2022. The loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. This loan may be subject to forgiveness under the CARES Act provisions. The Company plans to apply for forgiveness of the loan before November 24, 2020. At which point, principal and interest payments will be deferred until the SBA remits the loan forgiveness amount to the Lender. No assumptions were made relative to potential forgiveness as of September 30, 2020.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders Equity Note [Abstract]
Shareholders' Equity	8. Shareholders’ Equity In June 2019, the Company issued $5.0 million of common equity through a private placement for 1,176,471 shares priced at $4.25 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. On December 5, 2018, the Company's Board of Directors authorized a stock repurchase program, under which the Company may repurchase up to one million shares of the Company's common stock. Shares may be purchased in the open market or through negotiated transactions. The program may be terminated or suspended at any time, at the discretion of the Company. The Company may in the future enter into a Rule 10b5-1 trading plan to effect a portion of the authorized purchases, if criteria set forth in the plan are met. Such a plan would enable the Company to repurchase its shares during periods outside of its normal trading windows, when the Company typically would not be active in the market. The timing of purchases, and the exact number of any shares to be purchased, will depend on market conditions. The repurchase program does not include specific price targets or timetables. The Company did not repurchase any shares of stock for the three months ended September 30, 2020. The Company repurchased 11,393 shares of stock valued at approximately $41,000 for the three months ended September 30, 2019. For the nine months ended September 30, 2020 and 2019, the Company repurchased 2,398 and 154,208 shares of stock valued at $8,000 and $638,000, respectively, related to the stock repurchase program. For the three months ended September 30, 2020 and 2019, the Company repurchased 6,505 and 6,359 shares of stock valued at approximately $19,000 and $25,000, respectively, related to the vesting of the Company’s restricted stock units. For the nine months ended September 30, 2020 and 2019, the Company repurchased 8,813 and 8,667 shares of stock valued at approximately $27,000 and $36,000, respectively. Upon the repurchase of the Company’s shares, the shares remain authorized, but not issued or outstanding. As of September 30, 2020 and December 31, 2019, the Company had 9,678,463 and 9,592,861 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 Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2020
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 3,805 $ 421 $ 489 $ (2,612 ) Other comprehensive income (loss) before reclassifications (1,085 ) (6 ) 2,617 2,917 Less: amounts reclassified from accumulated other comprehensive income (loss) 292 (41 ) 678 (151 ) Net other comprehensive income (loss) (1,377 ) 35 1,939 3,068 Balance at end of period $ 2,428 $ 456 $ 2,428 $ 456

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	10. Earnings 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 amounts): Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss) $ 541 $ (1,230 ) $ (2,679 ) $ (4,794 ) Weighted average common shares, basic and diluted * 9,630,600 9,543,535 9,606,436 8,640,409 Earnings (loss) per common share, basic and diluted $ 0.06 $ (0.13 ) $ (0.28 ) $ (0.55 ) * The nonvested shares of the restricted stock units and stock options were anti-dilutive as of September 30, 2020 and 2019. Therefore, the basic and diluted weighted average common shares are equal for the three and nine months ended September 30, 2020 and 2019.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	11. Stock-based Compensation 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 2015, 2016, and 2018, the Company issued 390,352, 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 $4.1 million, $909,000, and $404,000, respectively, on the dates of grant. The Company recorded $622,000 and $719,000 of compensation expense related to the RSUs for the nine months ended September 30, 2020 and 2019, respectively. There were 47,330 unvested RSUs as of September 30, 2020, which will generate an estimated future expense of $313,000. The Company recorded $14,000 of compensation expense for the nine months ended September 30, 2020 related to the stock options granted on June 30, 2020. There were 280,000 unvested options as of September 30, 2020, which will generate an estimated future expense of $276,000.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. 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.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Segment Information	13. 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 chief operating decision maker in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s chief operating decision maker, the Chief Executive Officer, reviews 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 nine months ended September 30, 2020 and 2019 gross written premiums attributable to these four states were 49.9% and 51.1%, respectively, of the Company’s total gross written premiums. The 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 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 September 30, 2020 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 27,297 $ 2,544 $ 29,841 $ — $ — $ — $ 29,841 Net written premiums $ 22,763 $ 2,280 $ 25,043 $ — $ — $ — $ 25,043 Net earned premiums $ 20,586 $ 1,641 $ 22,227 $ — $ — $ — $ 22,227 Other income 44 42 86 2,036 43 (1,523 ) 642 Segment revenue 20,630 1,683 22,313 2,036 43 (1,523 ) 22,869 Losses and LAE, net 14,195 358 14,553 — — — 14,553 Policy acquisition costs 6,180 537 6,717 1,328 — (1,562 ) 6,483 Operating expenses 3,187 251 3,438 779 320 — 4,537 Segment expenses 23,562 1,146 24,708 2,107 320 (1,562 ) 25,573 Segment gain (loss) $ (2,932 ) $ 537 $ (2,395 ) $ (71 ) $ (277 ) $ 39 $ (2,704 ) Investment income 776 776 Net realized investment gains 3,316 3,316 Change in fair value of equity securities (356 ) (356 ) Other gains — — Interest expense (723 ) (723 ) Income (loss) before equity earnings in Affiliate and income taxes $ (2,932 ) $ 537 $ (2,395 ) $ (71 ) $ 2,736 $ 39 $ 309 Three months ended September 30, 2019 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 25,018 $ 2,059 $ 27,077 $ — $ — $ — $ 27,077 Net written premiums $ 22,095 $ 1,711 $ 23,806 $ — $ — $ — $ 23,806 Net earned premiums $ 21,439 $ 1,336 $ 22,775 $ — $ — $ — $ 22,775 Other income 70 33 103 2,619 47 (2,205 ) 564 Segment revenue 21,509 1,369 22,878 2,619 47 (2,205 ) 23,339 Losses and LAE, net 13,517 1,340 14,857 — — — 14,857 Policy acquisition costs 6,114 447 6,561 1,825 — (2,233 ) 6,153 Operating expenses 3,239 327 3,566 434 297 — 4,297 Segment expenses 22,870 2,114 24,984 2,259 297 (2,233 ) 25,307 Segment gain (loss) $ (1,361 ) $ (745 ) $ (2,106 ) $ 360 $ (250 ) $ 28 $ (1,968 ) Investment income 1,210 1,210 Net realized investment gains 390 390 Change in fair value of equity securities (1,065 ) (1,065 ) Other gains — — Interest expense (720 ) (720 ) Income (loss) before equity earnings in Affiliate and income taxes $ (1,361 ) $ (745 ) $ (2,106 ) $ 360 $ (435 ) $ 28 $ (2,153 ) Nine months ended September 30, 2020 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 76,341 $ 6,129 $ 82,470 $ — $ — $ — $ 82,470 Net written premiums $ 63,827 $ 5,332 $ 69,159 $ — $ — $ — $ 69,159 Net earned premiums $ 61,122 $ 4,880 $ 66,002 $ — $ — $ — $ 66,002 Other income 200 114 314 6,051 206 (4,558 ) 2,013 Segment revenue 61,322 4,994 66,316 6,051 206 (4,558 ) 68,015 Losses and LAE, net 38,931 1,836 40,767 — — — 40,767 Policy acquisition costs 18,463 1,532 19,995 3,984 — (4,798 ) 19,181 Operating expenses 9,835 798 10,633 2,420 1,388 — 14,441 Segment expenses 67,229 4,166 71,395 6,404 1,388 (4,798 ) 74,389 Segment gain (loss) $ (5,907 ) $ 828 $ (5,079 ) $ (353 ) $ (1,182 ) $ 240 $ (6,374 ) Investment income 2,593 2,593 Net realized investment gains 4,489 4,489 Change in fair value of equity securities (1,866 ) (1,866 ) Other gains 260 260 Interest expense (2,185 ) (2,185 ) Income (loss) before equity earnings in Affiliate and income taxes $ (5,907 ) $ 828 $ (5,079 ) $ (353 ) $ 2,109 $ 240 $ (3,083 ) Nine months ended September 30, 2019 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 71,061 $ 5,401 $ 76,462 $ — $ — $ — $ 76,462 Net written premiums $ 61,579 $ 3,983 $ 65,562 $ — $ — $ — $ 65,562 Net earned premiums $ 62,291 $ 3,520 $ 65,811 $ — $ — $ — $ 65,811 Other income 144 108 252 7,099 179 (5,963 ) 1,567 Segment revenue 62,435 3,628 66,063 7,099 179 (5,963 ) 67,378 Losses and LAE, net 38,611 5,084 43,695 — — — 43,695 Policy acquisition costs 17,335 1,202 18,537 4,787 — (5,372 ) 17,952 Operating expenses 9,614 867 10,481 1,572 907 — 12,960 Segment expenses 65,560 7,153 72,713 6,359 907 (5,372 ) 74,607 Segment gain (loss) $ (3,125 ) $ (3,525 ) $ (6,650 ) $ 740 $ (728 ) $ (591 ) $ (7,229 ) Investment income 3,171 3,171 Net realized investment gains 1,124 1,124 Change in fair value of equity securities (715 ) (715 ) Other gains — — Interest expense (2,155 ) (2,155 ) Income (loss) before equity earnings in Affiliate and income taxes $ (3,125 ) $ (3,525 ) $ (6,650 ) $ 740 $ 697 $ (591 ) $ (5,804 )

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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"), and Sycamore Insurance Agency, Inc. ("SIA"). 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." 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, 2019, as filed with the SEC. The results of operations for the nine months ended September 30, 2020, are not necessarily indicative of the results expected for the year ended December 31, 2020. Results for interim periods are not necessarily indicative of the results that may be expected for a full year, especially when considering the risks and uncertainties associated with the novel coronavirus ("COVID-19") and the impact it may have on our business, results of operations and financial condition. The COVID-19 pandemic has negatively impacted the U.S. and global economies, lowered equity market valuations, created significant volatility and disruption in the capital markets, dramatically increased unemployment levels and has fueled concerns that it will lead to a global recession. Depending on the duration and severity of the pandemic, we foresee the potential for adverse impacts related to, among other things: (i) sales results; (ii) insurance product margin; (iii) net investment income; (iv) invested assets; (v) regulatory capital; (vi) liabilities for insurance products; (vii) access to capital markets; and (viii) the present value of future profits. The full extent to which COVID-19 will impact our business, results of operations and financial condition remains uncertain.
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 Birmingham, Michigan with additional office facilities in Florida, Michigan and Pennsylvania.
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.
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.
Recently Issued Accounting Guidance	Recently Issued Accounting Guidance In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)
Early Adoption of ASU No. 2019-12	Early Adoption of ASU No. 2019-12 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]
Schedule of Available-for-sale Securities	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 September 30, 2020 and December 31, 2019, were as follows (dollars in thousands): September 30, 2020 Cost or Gross Unrealized Estimated Amortized Cost Gains Losses Fair Value Debt Securities: U.S. Government $ 9,777 $ 257 $ — $ 10,034 State and local government 27,925 926 (50 ) 28,801 Corporate debt 30,857 1,425 (137 ) 32,145 Asset-backed securities 18,756 195 (136 ) 18,815 Mortgage-backed securities 37,148 592 (5 ) 37,735 Commercial mortgage-backed securities 5,441 382 (23 ) 5,800 Collateralized mortgage obligations 5,979 141 (9 ) 6,111 Total debt securities available for sale $ 135,883 $ 3,918 $ (360 ) $ 139,441 December 31, 2019 Cost or Gross Unrealized Estimated Amortized Cost Gains Losses Fair Value Debt Securities: U.S. Government $ 9,392 $ 66 $ (6 ) $ 9,452 State and local government 14,388 545 — 14,933 Corporate debt 39,550 865 (21 ) 40,394 Asset-backed securities 19,549 81 (55 ) 19,575 Mortgage-backed securities 31,389 238 (112 ) 31,515 Commercial mortgage-backed securities 9,972 116 (45 ) 10,043 Collateralized mortgage obligations 5,073 29 (14 ) 5,088 Total debt securities available for sale $ 129,313 $ 1,940 $ (253 ) $ 131,000
Schedule of Unrealized Loss Positions	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): September 30, 2020 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 — $ — $ — — $ — $ — — $ — $ — State and local government 22 4,423 (50 ) — — — 22 4,423 (50 ) Corporate debt 4 2,683 (137 ) — — — 4 2,683 (137 ) Asset-backed securities 8 5,602 (53 ) 11 6,507 (83 ) 19 12,109 (136 ) Mortgage-backed securities 2 2,869 (5 ) — — — 2 2,869 (5 ) Commercial mortgage-backed securities 1 900 (23 ) — — — 1 900 (23 ) Collateralized mortgage obligations 3 687 (9 ) — — — 3 687 (9 ) Total debt securities available for sale 40 $ 17,164 $ (277 ) 11 $ 6,507 $ (83 ) 51 $ 23,671 $ (360 ) December 31, 2019 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 — $ — $ — 4 $ 1,047 $ (6 ) 4 $ 1,047 $ (6 ) State and local government — — — — — — — — — Corporate debt 7 3,720 (17 ) 3 1,697 (4 ) 10 5,417 (21 ) Asset-backed securities 3 2,596 (1 ) 18 11,836 (54 ) 21 14,432 (55 ) Mortgage-backed securities 3 715 (1 ) 13 7,812 (111 ) 16 8,527 (112 ) Commercial mortgage-backed securities 6 6,837 (45 ) — — — 6 6,837 (45 ) Collateralized mortgage obligations 8 2,081 (14 ) — — — 8 2,081 (14 ) Total debt securities available for sale 27 $ 15,949 $ (78 ) 38 $ 22,392 $ (175 ) 65 $ 38,341 $ (253 )
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Debt securities $ 794 $ 861 $ 2,590 $ 2,716 Equity securities 60 247 168 322 Cash, cash equivalents and short-term investments — 156 143 342 Total investment income 854 1,264 2,901 3,380 Investment expenses (78 ) (54 ) (308 ) (209 ) Net investment income $ 776 $ 1,210 $ 2,593 $ 3,171
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Debt securities: Gross realized gains $ 2,037 $ 8 $ 2,757 $ 231 Gross realized losses (2 ) (1 ) (6 ) (53 ) Total debt securities 2,035 7 2,751 178 Equity securities: Gross realized gains 1,905 397 2,853 985 Gross realized losses (624 ) (14 ) (1,115 ) (39 ) Total equity securities 1,281 383 1,738 946 Total net realized investment gains (losses) $ 3,316 $ 390 $ 4,489 $ 1,124
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 September 30, 2020. 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 $ 7,796 $ 7,852 Due after one year through five years 35,457 37,150 Due after five years through ten years 10,036 10,470 Due after ten years 15,270 15,508 Securities with contractual maturities 68,559 70,980 Asset-backed securities 18,756 18,815 Mortgage-backed securities 37,148 37,735 Commercial mortgage-backed securities 5,441 5,800 Collateralized mortgage obligations 5,979 6,111 Total debt securities $ 135,883 $ 139,441

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
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 on a recurring basis, classified by the valuation hierarchy as of September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 10,034 $ — $ 10,034 $ — State and local government 28,801 — 28,801 — Corporate debt 32,145 — 32,145 — Asset-backed securities 18,815 — 18,815 — Mortgage-backed securities 37,735 — 37,735 — Commercial mortgage-backed securities 5,800 — 5,800 — Collateralized mortgage obligations 6,111 — 6,111 — Total debt securities 139,441 — 139,441 — Equity Securities 15,239 14,956 283 — Short-term investments 24,898 24,898 — — Total marketable investments measured at fair value $ 179,578 $ 39,854 $ 139,724 $ — Investments measured at NAV: Investment in limited partnership 674 Total assets measured at fair value $ 180,252 Liabilities: Senior Unsecured Notes * $ 21,192 $ — $ 21,192 $ — Subordinated Notes * 11,589 — — 11,589 Line of credit * 5,000 — 5,000 — Paycheck Protection Program loan * 2,745 — 2,745 — Total Liabilities measured at fair value $ 40,526 $ — $ 28,937 $ 11,589 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets December 31, 2019 Fair Value Measurements Total Level 1 Level 2 Level 3 Assets: Debt Securities: U.S. Government $ 9,452 $ — $ 9,452 $ — State and local government 14,933 — 14,933 — Corporate debt 40,394 — 40,394 — Asset-backed securities 19,575 — 19,575 — Mortgage-backed securities 31,515 — 31,515 — Commercial mortgage-backed securities 10,043 — 10,043 — Collateralized mortgage obligations 5,088 — 5,088 — Total debt securities 131,000 — 131,000 — Equity securities 6,599 6,335 264 — Short-term investments 31,426 31,426 — — Total marketable investments measured at fair value $ 169,025 $ 37,761 $ 131,264 $ — Investments measured at NAV: Investment in limited partnership 707 Total assets measured at fair value $ 169,732 Liabilities: Senior Unsecured Notes * $ 22,669 $ — $ 22,669 $ — Subordinated Notes * 11,222 — — 11,222 Line of Credit * 2,000 — 2,000 — Total Liabilities measured at fair value $ 35,891 $ — $ 24,669 $ 11,222 * Carried at face value of debt net of unamortized debt issuance costs on the consolidated balance sheets

Deferred Policy Acquisition C_2

Deferred Policy Acquisition Costs (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 11,693 $ 12,302 $ 11,906 $ 12,011 Deferred policy acquisition costs 7,067 6,730 19,552 18,820 Amortization of policy acquisition costs (6,483 ) (6,153 ) (19,181 ) (17,952 ) Net change 584 577 371 868 Balance at end of period $ 12,277 $ 12,879 $ 12,277 $ 12,879

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Gross reserves - beginning of period $ 106,734 $ 97,981 $ 107,246 $ 92,807 Less: reinsurance recoverables on unpaid losses (20,892 ) (21,396 ) (22,579 ) (29,685 ) Plus: deferred gain on ADC 481 5,677 Net reserves - beginning of period 85,842 77,066 84,667 68,799 Add: incurred losses and LAE, net of reinsurance: Current period 9,858 12,154 29,286 36,619 Prior period 4,695 2,703 11,481 7,076 Total net incurred losses and LAE 14,553 14,857 40,767 43,695 Deduct: loss and LAE payments, net of reinsurance: Current period 5,149 4,933 9,067 8,675 Prior period 10,126 6,515 31,247 23,344 Total net loss and LAE payments 15,275 11,448 40,314 32,019 Net reserves - end of period 85,120 80,475 85,120 80,475 Plus: reinsurance recoverables on unpaid losses 18,564 16,862 18,564 16,862 Less: deferred gain on ADC — — — — Gross reserves - end of period $ 103,684 $ 97,337 $ 103,684 $ 97,337

Reinsurance (Tables)

Reinsurance (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Written premiums: Direct $ 21,434 $ 16,973 $ 60,659 $ 50,390 Assumed 8,407 10,104 21,811 26,072 Ceded (4,798 ) (3,271 ) (13,311 ) (10,900 ) Net written premiums $ 25,043 $ 23,806 $ 69,159 $ 65,562 Earned premiums: Direct $ 19,281 $ 17,606 $ 54,652 $ 52,864 Assumed 7,591 8,356 24,232 23,730 Ceded (4,645 ) (3,187 ) (12,882 ) (10,783 ) Net earned premiums $ 22,227 $ 22,775 $ 66,002 $ 65,811 Losses and LAE: Direct $ 11,249 $ 13,232 $ 34,314 $ 47,464 Assumed 5,841 5,667 15,810 15,922 Ceded (2,537 ) (4,042 ) (9,357 ) (19,691 ) Net Losses and LAE $ 14,553 $ 14,857 $ 40,767 $ 43,695

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding Senior Debt	A summary of the Company's outstanding debt is as follows (dollars in thousands): September 30, 2020 December 31, 2019 Senior unsecured notes $ 23,601 $ 24,288 Subordinated notes 9,574 9,536 Line of credit 5,000 2,000 PPP loan * 2,745 — Total $ 40,920 $ 35,824 * The PPP loan was embedded into the line of credit facility. See below

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Balance at beginning of period $ 3,805 $ 421 $ 489 $ (2,612 ) Other comprehensive income (loss) before reclassifications (1,085 ) (6 ) 2,617 2,917 Less: amounts reclassified from accumulated other comprehensive income (loss) 292 (41 ) 678 (151 ) Net other comprehensive income (loss) (1,377 ) 35 1,939 3,068 Balance at end of period $ 2,428 $ 456 $ 2,428 $ 456

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
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 amounts): Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss) $ 541 $ (1,230 ) $ (2,679 ) $ (4,794 ) Weighted average common shares, basic and diluted * 9,630,600 9,543,535 9,606,436 8,640,409 Earnings (loss) per common share, basic and diluted $ 0.06 $ (0.13 ) $ (0.28 ) $ (0.55 ) * The nonvested shares of the restricted stock units and stock options were anti-dilutive as of September 30, 2020 and 2019. Therefore, the basic and diluted weighted average common shares are equal for the three and nine months ended September 30, 2020 and 2019.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of Information by Reportable Segment	The following tables present information by reportable operating segment (dollars in thousands): Three months ended September 30, 2020 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 27,297 $ 2,544 $ 29,841 $ — $ — $ — $ 29,841 Net written premiums $ 22,763 $ 2,280 $ 25,043 $ — $ — $ — $ 25,043 Net earned premiums $ 20,586 $ 1,641 $ 22,227 $ — $ — $ — $ 22,227 Other income 44 42 86 2,036 43 (1,523 ) 642 Segment revenue 20,630 1,683 22,313 2,036 43 (1,523 ) 22,869 Losses and LAE, net 14,195 358 14,553 — — — 14,553 Policy acquisition costs 6,180 537 6,717 1,328 — (1,562 ) 6,483 Operating expenses 3,187 251 3,438 779 320 — 4,537 Segment expenses 23,562 1,146 24,708 2,107 320 (1,562 ) 25,573 Segment gain (loss) $ (2,932 ) $ 537 $ (2,395 ) $ (71 ) $ (277 ) $ 39 $ (2,704 ) Investment income 776 776 Net realized investment gains 3,316 3,316 Change in fair value of equity securities (356 ) (356 ) Other gains — — Interest expense (723 ) (723 ) Income (loss) before equity earnings in Affiliate and income taxes $ (2,932 ) $ 537 $ (2,395 ) $ (71 ) $ 2,736 $ 39 $ 309 Three months ended September 30, 2019 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 25,018 $ 2,059 $ 27,077 $ — $ — $ — $ 27,077 Net written premiums $ 22,095 $ 1,711 $ 23,806 $ — $ — $ — $ 23,806 Net earned premiums $ 21,439 $ 1,336 $ 22,775 $ — $ — $ — $ 22,775 Other income 70 33 103 2,619 47 (2,205 ) 564 Segment revenue 21,509 1,369 22,878 2,619 47 (2,205 ) 23,339 Losses and LAE, net 13,517 1,340 14,857 — — — 14,857 Policy acquisition costs 6,114 447 6,561 1,825 — (2,233 ) 6,153 Operating expenses 3,239 327 3,566 434 297 — 4,297 Segment expenses 22,870 2,114 24,984 2,259 297 (2,233 ) 25,307 Segment gain (loss) $ (1,361 ) $ (745 ) $ (2,106 ) $ 360 $ (250 ) $ 28 $ (1,968 ) Investment income 1,210 1,210 Net realized investment gains 390 390 Change in fair value of equity securities (1,065 ) (1,065 ) Other gains — — Interest expense (720 ) (720 ) Income (loss) before equity earnings in Affiliate and income taxes $ (1,361 ) $ (745 ) $ (2,106 ) $ 360 $ (435 ) $ 28 $ (2,153 ) Nine months ended September 30, 2020 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 76,341 $ 6,129 $ 82,470 $ — $ — $ — $ 82,470 Net written premiums $ 63,827 $ 5,332 $ 69,159 $ — $ — $ — $ 69,159 Net earned premiums $ 61,122 $ 4,880 $ 66,002 $ — $ — $ — $ 66,002 Other income 200 114 314 6,051 206 (4,558 ) 2,013 Segment revenue 61,322 4,994 66,316 6,051 206 (4,558 ) 68,015 Losses and LAE, net 38,931 1,836 40,767 — — — 40,767 Policy acquisition costs 18,463 1,532 19,995 3,984 — (4,798 ) 19,181 Operating expenses 9,835 798 10,633 2,420 1,388 — 14,441 Segment expenses 67,229 4,166 71,395 6,404 1,388 (4,798 ) 74,389 Segment gain (loss) $ (5,907 ) $ 828 $ (5,079 ) $ (353 ) $ (1,182 ) $ 240 $ (6,374 ) Investment income 2,593 2,593 Net realized investment gains 4,489 4,489 Change in fair value of equity securities (1,866 ) (1,866 ) Other gains 260 260 Interest expense (2,185 ) (2,185 ) Income (loss) before equity earnings in Affiliate and income taxes $ (5,907 ) $ 828 $ (5,079 ) $ (353 ) $ 2,109 $ 240 $ (3,083 ) Nine months ended September 30, 2019 Commercial Lines Personal Lines Total Underwriting Wholesale Agency Corporate Eliminations Total Gross written premiums $ 71,061 $ 5,401 $ 76,462 $ — $ — $ — $ 76,462 Net written premiums $ 61,579 $ 3,983 $ 65,562 $ — $ — $ — $ 65,562 Net earned premiums $ 62,291 $ 3,520 $ 65,811 $ — $ — $ — $ 65,811 Other income 144 108 252 7,099 179 (5,963 ) 1,567 Segment revenue 62,435 3,628 66,063 7,099 179 (5,963 ) 67,378 Losses and LAE, net 38,611 5,084 43,695 — — — 43,695 Policy acquisition costs 17,335 1,202 18,537 4,787 — (5,372 ) 17,952 Operating expenses 9,614 867 10,481 1,572 907 — 12,960 Segment expenses 65,560 7,153 72,713 6,359 907 (5,372 ) 74,607 Segment gain (loss) $ (3,125 ) $ (3,525 ) $ (6,650 ) $ 740 $ (728 ) $ (591 ) $ (7,229 ) Investment income 3,171 3,171 Net realized investment gains 1,124 1,124 Change in fair value of equity securities (715 ) (715 ) Other gains — — Interest expense (2,155 ) (2,155 ) Income (loss) before equity earnings in Affiliate and income taxes $ (3,125 ) $ (3,525 ) $ (6,650 ) $ 740 $ 697 $ (591 ) $ (5,804 )

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details)	9 Months Ended
	Sep. 30, 2020class_businessstate
Accounting Policies [Abstract]
Number of types of business | class_business	3
Number of states in which entity operates | state	50

Investments - Available-for-sal

Investments - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	$ 135,883	$ 129,313
Debt securities, Gross Unrealized Gain	3,918	1,940
Debt securities, Gross Unrealized Losses	(360)	(253)
Debt securities, Estimated Fair Value	139,441	131,000
U.S. Government
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	9,777	9,392
Debt securities, Gross Unrealized Gain	257	66
Debt securities, Gross Unrealized Losses	0	(6)
Debt securities, Estimated Fair Value	10,034	9,452
State and local government
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	27,925	14,388
Debt securities, Gross Unrealized Gain	926	545
Debt securities, Gross Unrealized Losses	(50)	0
Debt securities, Estimated Fair Value	28,801	14,933
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	30,857	39,550
Debt securities, Gross Unrealized Gain	1,425	865
Debt securities, Gross Unrealized Losses	(137)	(21)
Debt securities, Estimated Fair Value	32,145	40,394
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	18,756	19,549
Debt securities, Gross Unrealized Gain	195	81
Debt securities, Gross Unrealized Losses	(136)	(55)
Debt securities, Estimated Fair Value	18,815	19,575
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	37,148	31,389
Debt securities, Gross Unrealized Gain	592	238
Debt securities, Gross Unrealized Losses	(5)	(112)
Debt securities, Estimated Fair Value	37,735	31,515
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	5,441	9,972
Debt securities, Gross Unrealized Gain	382	116
Debt securities, Gross Unrealized Losses	(23)	(45)
Debt securities, Estimated Fair Value	5,800	10,043
Collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Debt securities, Cost or Amortized Cost	5,979	5,073
Debt securities, Gross Unrealized Gain	141	29
Debt securities, Gross Unrealized Losses	(9)	(14)
Debt securities, Estimated Fair Value	$ 6,111	$ 5,088

Investments - Available-for-s_2

Investments - Available-for-sale Securities in Unrealized Loss Positions (Details) $ in Thousands	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Debt securities, less than 12 months, number of issues | security	40	27
Debt securities, greater than 12 months, number of issues | security	11	38
Debt securities, number of issues | security	51	65
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 17,164	$ 15,949
Debt securities, greater than 12 months, fair value	6,507	22,392
Debt securities, fair value	23,671	38,341
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(277)	(78)
Debt securities, greater than 12 months, unrealized losses	(83)	(175)
Debt securities, total unrealized losses	$ (360)	$ (253)
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	0	0
Debt securities, greater than 12 months, number of issues | security	0	4
Debt securities, number of issues | security	0	4
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 0	$ 0
Debt securities, greater than 12 months, fair value	0	1,047
Debt securities, fair value	0	1,047
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	0	0
Debt securities, greater than 12 months, unrealized losses	0	(6)
Debt securities, total unrealized losses	$ 0	$ (6)
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	22	0
Debt securities, greater than 12 months, number of issues | security	0	0
Debt securities, number of issues | security	22	0
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 4,423	$ 0
Debt securities, greater than 12 months, fair value	0	0
Debt securities, fair value	4,423	0
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(50)	0
Debt securities, greater than 12 months, unrealized losses	0	0
Debt securities, total unrealized losses	$ (50)	$ 0
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	7
Debt securities, greater than 12 months, number of issues | security	0	3
Debt securities, number of issues | security	4	10
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 2,683	$ 3,720
Debt securities, greater than 12 months, fair value	0	1,697
Debt securities, fair value	2,683	5,417
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(137)	(17)
Debt securities, greater than 12 months, unrealized losses	0	(4)
Debt securities, total unrealized losses	$ (137)	$ (21)
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	8	3
Debt securities, greater than 12 months, number of issues | security	11	18
Debt securities, number of issues | security	19	21
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 5,602	$ 2,596
Debt securities, greater than 12 months, fair value	6,507	11,836
Debt securities, fair value	12,109	14,432
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(53)	(1)
Debt securities, greater than 12 months, unrealized losses	(83)	(54)
Debt securities, total unrealized losses	$ (136)	$ (55)
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	2	3
Debt securities, greater than 12 months, number of issues | security	0	13
Debt securities, number of issues | security	2	16
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 2,869	$ 715
Debt securities, greater than 12 months, fair value	0	7,812
Debt securities, fair value	2,869	8,527
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(5)	(1)
Debt securities, greater than 12 months, unrealized losses	0	(111)
Debt securities, total unrealized losses	$ (5)	$ (112)
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	6
Debt securities, greater than 12 months, number of issues | security	0	0
Debt securities, number of issues | security	1	6
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 900	$ 6,837
Debt securities, greater than 12 months, fair value	0	0
Debt securities, fair value	900	6,837
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(23)	(45)
Debt securities, greater than 12 months, unrealized losses	0	0
Debt securities, total unrealized losses	$ (23)	$ (45)
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	3	8
Debt securities, greater than 12 months, number of issues | security	0	0
Debt securities, number of issues | security	3	8
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract]
Debt securities, less than 12 months, fair value	$ 687	$ 2,081
Debt securities, greater than 12 months, fair value	0	0
Debt securities, fair value	687	2,081
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Debt securities, less than 12 months, unrealized losses	(9)	(14)
Debt securities, greater than 12 months, unrealized losses	0	0
Debt securities, total unrealized losses	$ (9)	$ (14)

Investments - Net Investment In

Investments - Net Investment Income and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Investment Income [Line Items]
Investment income	$ 854	$ 1,264	$ 2,901	$ 3,380
Investment expenses	(78)	(54)	(308)	(209)
Net investment income	776	1,210	2,593	3,171
Debt securities
Net Investment Income [Line Items]
Investment income	794	861	2,590	2,716
Equity securities
Net Investment Income [Line Items]
Investment income	$ 60	247	168	322
Cash, cash equivalents and short-term investments
Net Investment Income [Line Items]
Investment income		$ 156	$ 143	$ 342

Investments - Gross Realized Ga

Investments - Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt securities:
Gross realized gains	$ 2,037	$ 8	$ 2,757	$ 231
Gross realized losses	(2)	(1)	(6)	(53)
Total debt securities	2,035	7	2,751	178
Equity securities:
Gross realized gains	1,905	397	2,853	985
Gross realized losses	(624)	(14)	(1,115)	(39)
Total equity securities	1,281	383	1,738	946
Total net realized investment gains (losses)	$ 3,316	$ 390	$ 4,489	$ 1,124

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
Proceeds from sale of available-for-sale debt securities			$ 58,300,000	$ 24,000,000
Gross realized gains from sales of available-for-sale debt securities	$ 2	$ 7,000
Gross realized losses from sales of available-for-sale debt securities	0	2,000
Gross realized gains	2.8	236,000,000,000	2.8	236,000,000,000
Gross realized losses	0	53,000	0	53,000
Amount payable for securities purchased	10,800,000	0	10,800,000	0
Amount receivable for securities sold	3,500,000	$ 0	3,500,000	$ 0
Other than temporary impairments losses, investments			0
Investments	665,000,000		665,000,000		$ 1,200,000
Deposits held in trust accounts	8,800,000		8,800,000		8,000,000
Deposits, held in trust for collateral requirements	$ 63,200,000		$ 63,200,000		$ 58,400,000

Investments - Available-for-s_3

Investments - Available-for-sale Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Due in one year or less	$ 7,796
Due after one year through five years	35,457
Due after five years through ten years	10,036
Due after ten years	15,270
Securities with contractual maturities	68,559
Total debt securities	135,883	$ 129,313
Estimated Fair Value
Due in one year or less	7,852
Due after one year through five years	37,150
Due after five years through ten years	10,470
Due after ten years	15,508
Securities with contractual maturities	70,980
Total debt securities	139,441	131,000
Asset-backed securities
Amortized Cost
Total debt securities	18,756	19,549
Estimated Fair Value
Total debt securities	18,815	19,575
Mortgage-backed securities
Amortized Cost
Total debt securities	37,148	31,389
Estimated Fair Value
Total debt securities	37,735	31,515
Commercial mortgage-backed securities
Amortized Cost
Total debt securities	5,441	9,972
Estimated Fair Value
Total debt securities	5,800	10,043
Collateralized mortgage obligations
Amortized Cost
Total debt securities	5,979	5,073
Estimated Fair Value
Total debt securities	$ 6,111	$ 5,088

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments (Details) - USD ($)	Sep. 30, 2020	Apr. 24, 2020	Dec. 31, 2019
Assets:
Total debt securities	$ 139,441,000		$ 131,000,000
Equity Securities	15,239,000		6,599,000
Short-term investments	24,898,000		31,426,000
Total marketable investments measured at fair value	179,578,000		169,025,000
Total assets measured at fair value	180,252,000		169,732,000
Liabilities:
Debt	40,920,000		35,824,000
Total Liabilities measured at fair value	40,526,000		35,891,000
Paycheck Protection Program
Liabilities:
Debt	2,745,000	$ 2,745,000
Line of credit
Liabilities:
Debt	5,000,000		2,000,000
U.S. Government
Assets:
Total debt securities	10,034,000		9,452,000
State and local government
Assets:
Total debt securities	28,801,000		14,933,000
Corporate debt
Assets:
Total debt securities	32,145,000		40,394,000
Asset-backed securities
Assets:
Total debt securities	18,815,000		19,575,000
Mortgage-backed securities
Assets:
Total debt securities	37,735,000		31,515,000
Commercial mortgage-backed securities
Assets:
Total debt securities	5,800,000		10,043,000
Collateralized mortgage obligations
Assets:
Total debt securities	6,111,000		5,088,000
Senior Unsecured Notes
Liabilities:
Debt	21,192,000		22,669,000
Subordinated notes
Liabilities:
Debt	11,589,000		11,222,000
Level 1
Assets:
Total debt securities	0		0
Equity Securities	14,956,000		6,335,000
Short-term investments	24,898,000		31,426,000
Total marketable investments measured at fair value	39,854,000		37,761,000
Liabilities:
Total Liabilities measured at fair value	0		0
Level 1 | U.S. Government
Assets:
Total debt securities	0		0
Level 1 | State and local government
Assets:
Total debt securities	0		0
Level 1 | Corporate debt
Assets:
Total debt securities	0		0
Level 1 | Asset-backed securities
Assets:
Total debt securities	0		0
Level 1 | Mortgage-backed securities
Assets:
Total debt securities	0		0
Level 1 | Commercial mortgage-backed securities
Assets:
Total debt securities	0		0
Level 1 | Collateralized mortgage obligations
Assets:
Total debt securities	0		0
Level 1 | Senior Unsecured Notes
Liabilities:
Debt	0		0
Level 1 | Subordinated notes
Liabilities:
Debt	0		0
Level 2
Assets:
Total debt securities	139,441,000		131,000,000
Equity Securities	283,000		264,000
Short-term investments	0		0
Total marketable investments measured at fair value	139,724,000		131,264,000
Liabilities:
Total Liabilities measured at fair value	28,937,000		24,669,000
Level 2 | Paycheck Protection Program
Liabilities:
Debt	2,745,000
Level 2 | Line of credit
Liabilities:
Debt	5,000,000		2,000,000
Level 2 | U.S. Government
Assets:
Total debt securities	10,034,000		9,452,000
Level 2 | State and local government
Assets:
Total debt securities	28,801,000		14,933,000
Level 2 | Corporate debt
Assets:
Total debt securities	32,145,000		40,394,000
Level 2 | Asset-backed securities
Assets:
Total debt securities	18,815,000		19,575,000
Level 2 | Mortgage-backed securities
Assets:
Total debt securities	37,735,000		31,515,000
Level 2 | Commercial mortgage-backed securities
Assets:
Total debt securities	5,800,000		10,043,000
Level 2 | Collateralized mortgage obligations
Assets:
Total debt securities	6,111,000		5,088,000
Level 2 | Senior Unsecured Notes
Liabilities:
Debt	21,192,000		22,669,000
Level 2 | Subordinated notes
Liabilities:
Debt			0
Level 3
Assets:
Total debt securities	0		0
Equity Securities	0		0
Short-term investments	0		0
Total marketable investments measured at fair value	0		0
Liabilities:
Total Liabilities measured at fair value	11,589,000		11,222,000
Level 3 | U.S. Government
Assets:
Total debt securities	0		0
Level 3 | State and local government
Assets:
Total debt securities	0		0
Level 3 | Corporate debt
Assets:
Total debt securities	0		0
Level 3 | Asset-backed securities
Assets:
Total debt securities	0		0
Level 3 | Mortgage-backed securities
Assets:
Total debt securities	0		0
Level 3 | Commercial mortgage-backed securities
Assets:
Total debt securities	0		0
Level 3 | Collateralized mortgage obligations
Assets:
Total debt securities	0		0
Level 3 | Senior Unsecured Notes
Liabilities:
Debt	0		0
Level 3 | Subordinated notes
Liabilities:
Debt	11,589,000		11,222,000
Partnership interest
Assets:
Investments measured at NAV	$ 674,000		$ 707,000

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	Sep. 30, 2020
Level 1
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Investment portfolio percentage	22.10%
Level 2
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Investment portfolio percentage	77.50%

Deferred Policy Acquisition C_3

Deferred Policy Acquisition Costs - Activity in Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Balance at beginning of period	$ 11,693	$ 12,302	$ 11,906	$ 12,011
Deferred policy acquisition costs	7,067	6,730	19,552	18,820
Amortization of policy acquisition costs	(6,483)	(6,153)	(19,181)	(17,952)
Net change	584	577	371	868
Balance at end of period	$ 12,277	$ 12,879	$ 12,277	$ 12,879

Unpaid Losses and Loss Adjust_3

Unpaid Losses and Loss Adjustment Expenses - Changes in the Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Gross reserves - beginning of period	$ 106,734	$ 97,981	$ 107,246	$ 92,807
Less: reinsurance recoverables on unpaid losses	(20,892)	(21,396)	(22,579)	(29,685)
Plus: deferred gain on ADC		481		5,677
Net reserves - beginning of period	85,842	77,066	84,667	68,799
Add: incurred losses and LAE, net of reinsurance:
Current period	9,858	12,154	29,286	36,619
Prior period	4,695	2,703	11,481	7,076
Total net incurred losses and LAE	14,553	14,857	40,767	43,695
Deduct: loss and LAE payments, net of reinsurance:
Current period	5,149	4,933	9,067	8,675
Prior period	10,126	6,515	31,247	23,344
Total net loss and LAE payments	15,275	11,448	40,314	32,019
Net reserves - end of period	85,120	80,475	85,120	80,475
Plus: reinsurance recoverables on unpaid losses	18,564	16,862	18,564	16,862
Gross reserves - end of period	$ 103,684	$ 97,337	$ 103,684	$ 97,337

Unpaid Losses and Loss Adjust_4

Unpaid Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year adjustments		$ 4,695,000	$ 2,703,000	$ 11,481,000	$ 7,076,000
Commercial Lines
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year adjustments		$ 4,700,000	2,700,000	$ 11,500,000
Amortization of deferred gain on ADC			$ 481,000,000,000
Personal Lines
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior year adjustments					7,100,000
Amortization of deferred gain on ADC					$ 5,700,000
Maximum | Adverse Development Cover Reinsurance Agreement [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Amount reinsured	$ 17,500,000

Reinsurance - Narrative (Detail

Reinsurance - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Effects Of Reinsurance [Line Items]
Ceded premium written	$ 4,798,000	$ 3,271,000	$ 13,311,000	$ 10,900,000
Ceded premiums earned	$ 4,645,000	$ 3,187,000	$ 12,882,000	10,783,000
Minimum
Effects Of Reinsurance [Line Items]
Reinsurance retention policy, reinsured percentage			40.00%
Maximum
Effects Of Reinsurance [Line Items]
Reinsurance retention policy, reinsured percentage			60.00%
Maximum | Homeowners Lines
Effects Of Reinsurance [Line Items]
Amount retained (excess of)			$ 300,000	300,000
Property Risk | Maximum
Effects Of Reinsurance [Line Items]
Amount retained (excess of)			400,000	300,000
Liability Risk | Maximum
Effects Of Reinsurance [Line Items]
Amount retained (excess of)			$ 400,000	$ 400,000

Reinsurance - Effects of Reinsu

Reinsurance - Effects of Reinsurance and Assumption Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Written premiums:
Direct	$ 21,434	$ 16,973	$ 60,659	$ 50,390
Assumed	8,407	10,104	21,811	26,072
Ceded	(4,798)	(3,271)	(13,311)	(10,900)
Net written premiums	25,043	23,806	69,159	65,562
Earned premiums:
Direct	19,281	17,606	54,652	52,864
Assumed	7,591	8,356	24,232	23,730
Ceded	(4,645)	(3,187)	(12,882)	(10,783)
Net earned premiums	22,227	22,775	66,002	65,811
Losses and LAE:
Direct	11,249	13,232	34,314	47,464
Assumed	5,841	5,667	15,810	15,922
Ceded	(2,537)	(4,042)	(9,357)	(19,691)
Total net incurred losses and LAE	$ 14,553	$ 14,857	$ 40,767	$ 43,695

Debt - Narrative (Details)

Debt - Narrative (Details)	Jun. 18, 2021USD ($)	Apr. 24, 2020USD ($)	Sep. 24, 2018USD ($)	Sep. 30, 2020USD ($)debt_instrumentshares	Sep. 30, 2020USD ($)debt_instrumentshares	Oct. 31, 2018USD ($)
Debt Instrument [Line Items]
Number of debt instruments | debt_instrument				4	4
Paycheck Protection Program
Debt Instrument [Line Items]
Face amount of debt				$ 2,700,000	$ 2,700,000
Interest rate		1.00%
Debt		$ 2,745,000		2,745,000	2,745,000
Maturity of loan		Apr. 24, 2022
Debt instrument, description		The Company amended its $10.0 million line of credit facility with the Lender to incorporate this loan as a reduction of the available line of credit. Beginning November 24, 2020, the Company is required to pay the Lender equal monthly payments of principal and interest as necessary to fully amortize by April 24, 2022. The loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. This loan may be subject to forgiveness under the CARES Act provisions. The Company plans to apply for forgiveness of the loan before November 24, 2020. At which point, principal and interest payments will be deferred until the SBA remits the loan forgiveness amount to the Lender. No assumptions were made relative to potential forgiveness as of September 30, 2020.
Senior Unsecured Notes | Senior Unsecured Notes
Debt Instrument [Line Items]
Face amount of debt				$ 24,400,000	$ 24,400,000	$ 25,300,000
Maturity date						Sep. 30, 2023
Interest rate						6.75%
Number of units repurchased | shares				0	36,761
Repurchased face value amount					$ 919,000
Gain on extinguishment of debt					260,000
Debt issuance costs				$ 780,000	780,000
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.
Call premium percentage			12.50%
Debt issuance costs				926,000	$ 926,000
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			10,000,000	10,000,000
Debt including PPP loan				$ 7,750,000	$ 7,750,000
Line of credit | LIBOR
Debt Instrument [Line Items]
Variable interest rate	2.75%

Debt - Outstanding Senior Debt

Debt - Outstanding Senior Debt (Details) - USD ($)	Sep. 30, 2020	Apr. 24, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt	$ 40,920,000		$ 35,824,000
Paycheck Protection Program
Debt Instrument [Line Items]
Debt	2,745,000	$ 2,745,000
Senior Unsecured Notes
Debt Instrument [Line Items]
Debt	23,601,000		24,288,000
Subordinated notes
Debt Instrument [Line Items]
Debt	9,574,000		9,536,000
Line of credit
Debt Instrument [Line Items]
Debt	$ 5,000,000		$ 2,000,000

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Sep. 30, 2020USD ($)voteshares	Sep. 30, 2019USD ($)shares	Dec. 31, 2019shares	Dec. 05, 2018shares
Equity Class Of Treasury Stock [Line Items]
Common stock, shares issued (in shares)		9,678,463		9,678,463		9,592,861
Common stock, shares outstanding (in shares)		9,678,463		9,678,463		9,592,861
Common stock voting rights, number of votes per share | vote				1
Common stocks
Equity Class Of Treasury Stock [Line Items]
Common stock, shares issued (in shares)		9,678,463		9,678,463		9,592,861
Common stock, shares outstanding (in shares)		9,678,463		9,678,463		9,592,861
Private placement | Common stocks
Equity Class Of Treasury Stock [Line Items]
Common equity issued | $	$ 5,000,000
Common equity issued (in shares)	1,176,471
Offering price per share (in dollars per share) | $ / shares	$ 4.25
Restricted Stock Units (RSUs)
Equity Class Of Treasury Stock [Line Items]
Shares repurchased (in shares)		6,359	6,505	8,667	8,813
Shares repurchased | $		$ 25,000	$ 19,000	$ 36,000	$ 27,000
Stock Repurchase Program, December 2018
Equity Class Of Treasury Stock [Line Items]
Number of shares authorized for repurchase (in shares)							1,000,000
Shares repurchased (in shares)		0	11,393	2,398	154,208
Shares repurchased | $			$ 41,000	$ 8,000	$ 638,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 43,280	$ 46,509	$ 42,725	$ 42,163
Other comprehensive income (loss)	(1,377)	35	1,939	3,068
Balance at end of period	42,586	45,482	42,586	45,482
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	3,805	421	489	(2,612)
Other comprehensive income (loss) before reclassifications	(1,085)	(6)	2,617	2,917
Less: amounts reclassified from accumulated other comprehensive income (loss)	292	(41)	678	(151)
Other comprehensive income (loss)	(1,377)	35	1,939	3,068
Balance at end of period	$ 2,428	$ 456	$ 2,428	$ 456

Earnings Per Share - Basic and

Earnings Per Share - Basic and Diluted Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ 541	$ (1,230)	$ (2,679)	$ (4,794)
Weighted average common shares outstanding, basic and diluted	9,630,600	9,543,535	9,606,436	8,640,409
Earnings (loss) per common share, basic and diluted	$ 0.06	$ (0.13)	$ (0.28)	$ (0.55)

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($)	6 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2015
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued to purchase shares of common stock	280,000
Vesting period	5 years
Strike price	$ 3.81
Expiration date	Jun. 30, 2030
Estimated value of options issued to purchase shares of common stock	$ 290,000
Share-based compensation expense		$ 14,000
Share-based compensation expense not yet recognized		$ 276,000
Share-based compensation nonvested shares		280,000
2015 Omnibus Incentive Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)				70,000	111,281	390,352
Shares granted in period				$ 404,000	$ 909,000	$ 4,100,000
Share-based compensation expense		$ 622,000	$ 719,000
Share-based compensation expense not yet recognized		$ 313,000
Share-based compensation nonvested shares		47,330

Segment Information - Narrative

Segment Information - Narrative (Details) - business	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Number of businesses	3
Gross Written Premiums | Geographic Concentration Risk | Michigan, Florida, Texas and Pennsylvania
Segment Reporting Information [Line Items]
Concentration risk	49.90%	51.10%

Segment Information - Informati

Segment Information - Information by Reportable Operating Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Gross written premiums	$ 29,841	$ 27,077	$ 82,470	$ 76,462
Net written premiums	25,043	23,806	69,159	65,562
Net earned premiums	22,227	22,775	66,002	65,811
Other income	642	564	2,013	1,567
Segment revenue	22,869	23,339	68,015	67,378
Losses and loss adjustment expenses, net	14,553	14,857	40,767	43,695
Policy acquisition costs	6,483	6,153	19,181	17,952
Operating expenses	4,537	4,297	14,441	12,960
Segment expenses	25,573	25,307	74,389	74,607
Segment gain (loss)	(2,704)	(1,968)	(6,374)	(7,229)
Net investment income	776	1,210	2,593	3,171
Net realized investment gains	3,316	390	4,489	1,124
Change in fair value of equity securities	(356)	(1,065)	(1,866)	(715)
Other gains			260
Interest expense	(723)	(720)	(2,185)	(2,155)
Income (loss) before equity earnings in Affiliate and income taxes	309	(2,153)	(3,083)	(5,804)
Operating Segments | Commercial Lines
Segment Reporting Information [Line Items]
Gross written premiums	27,297	25,018	76,341	71,061
Net written premiums	22,763	22,095	63,827	61,579
Net earned premiums	20,586	21,439	61,122	62,291
Other income	44	70	200	144
Segment revenue	20,630	21,509	61,322	62,435
Losses and loss adjustment expenses, net	14,195	13,517	38,931	38,611
Policy acquisition costs	6,180	6,114	18,463	17,335
Operating expenses	3,187	3,239	9,835	9,614
Segment expenses	23,562	22,870	67,229	65,560
Segment gain (loss)	(2,932)	(1,361)	(5,907)	(3,125)
Income (loss) before equity earnings in Affiliate and income taxes	(2,932)	(1,361)	(5,907)	(3,125)
Operating Segments | Personal Lines
Segment Reporting Information [Line Items]
Gross written premiums	2,544	2,059	6,129	5,401
Net written premiums	2,280	1,711	5,332	3,983
Net earned premiums	1,641	1,336	4,880	3,520
Other income	42	33	114	108
Segment revenue	1,683	1,369	4,994	3,628
Losses and loss adjustment expenses, net	358	1,340	1,836	5,084
Policy acquisition costs	537	447	1,532	1,202
Operating expenses	251	327	798	867
Segment expenses	1,146	2,114	4,166	7,153
Segment gain (loss)	537	(745)	828	(3,525)
Income (loss) before equity earnings in Affiliate and income taxes	537	(745)	828	(3,525)
Operating Segments | Total Underwriting
Segment Reporting Information [Line Items]
Gross written premiums	29,841	27,077	82,470	76,462
Net written premiums	25,043	23,806	69,159	65,562
Net earned premiums	22,227	22,775	66,002	65,811
Other income	86	103	314	252
Segment revenue	22,313	22,878	66,316	66,063
Losses and loss adjustment expenses, net	14,553	14,857	40,767	43,695
Policy acquisition costs	6,717	6,561	19,995	18,537
Operating expenses	3,438	3,566	10,633	10,481
Segment expenses	24,708	24,984	71,395	72,713
Segment gain (loss)	(2,395)	(2,106)	(5,079)	(6,650)
Income (loss) before equity earnings in Affiliate and income taxes	(2,395)	(2,106)	(5,079)	(6,650)
Operating Segments | Wholesale Agency
Segment Reporting Information [Line Items]
Other income	2,036	2,619	6,051	7,099
Segment revenue	2,036	2,619	6,051	7,099
Policy acquisition costs	1,328	1,825	3,984	4,787
Operating expenses	779	434	2,420	1,572
Segment expenses	2,107	2,259	6,404	6,359
Segment gain (loss)	(71)	360	(353)	740
Income (loss) before equity earnings in Affiliate and income taxes	(71)	360	(353)	740
Corporate
Segment Reporting Information [Line Items]
Other income	43	47	206	179
Segment revenue	43	47	206	179
Operating expenses	320	297	1,388	907
Segment expenses	320	297	1,388	907
Segment gain (loss)	(277)	(250)	(1,182)	(728)
Net investment income	776	1,210	2,593	3,171
Net realized investment gains	3,316	390	4,489	1,124
Change in fair value of equity securities	(356)	(1,065)	(1,866)	(715)
Other gains			260
Interest expense	(723)	(720)	(2,185)	(2,155)
Income (loss) before equity earnings in Affiliate and income taxes	2,736	(435)	2,109	697
Eliminations
Segment Reporting Information [Line Items]
Other income	(1,523)	(2,205)	(4,558)	(5,963)
Segment revenue	(1,523)	(2,205)	(4,558)	(5,963)
Policy acquisition costs	(1,562)	(2,233)	(4,798)	(5,372)
Segment expenses	(1,562)	(2,233)	(4,798)	(5,372)
Segment gain (loss)	39	28	240	(591)
Income (loss) before equity earnings in Affiliate and income taxes	$ 39	$ 28	$ 240	$ (591)