Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 01, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Heritage Insurance Holdings, Inc. | ||
Entity Central Index Key | 0001598665 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 219,084,320 | ||
Entity Common Stock, Shares Outstanding | 26,815,430 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of each class | Common Stock, par value $0.0001 per share | ||
Trading Symbol(s) | HRTG | ||
Name of each exchange on which registered | NYSE | ||
Entity File Number | 001-36462 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-5338504 | ||
Entity Address, Address Line One | 1401 N. Westshore Blvd. | ||
Entity Address, City or Town | Tampa | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33607 | ||
City Area Code | 727 | ||
Local Phone Number | 362-7200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Location | East Lansing, Michigan | ||
Auditor Firm ID | 166 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement for its Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K, provided that if such Proxy Statement is not filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K, an amendment to this Form 10-K shall be filed no later than the end of such 120-day period. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $675,245 and $553,172) | $ 669,354 | $ 561,011 |
Equity securities, at fair value, (cost $1,415 and $1,618) | 1,415 | 1,599 |
Other investments | 23,929 | 26,409 |
Total investments | 694,698 | 589,019 |
Cash and cash equivalents | 359,337 | 440,956 |
Restricted cash | 5,415 | 5,427 |
Accrued investment income | 3,167 | 2,737 |
Premiums receivable, net | 71,925 | 77,471 |
Reinsurance recoverable on paid and unpaid claims, net of allowance for credit losses of $45 | 269,391 | 355,037 |
Prepaid reinsurance premiums | 265,873 | 245,818 |
Income taxes receivable | 11,739 | 32,224 |
Deferred policy acquisition costs, net | 93,881 | 89,265 |
Property and equipment, net | 17,426 | 18,685 |
Right-of-use lease asset, net | 27,753 | 6,461 |
Intangibles, net | 55,926 | 62,277 |
Goodwill | 91,959 | 152,459 |
Other assets | 12,272 | 11,543 |
Total Assets | 1,980,762 | 2,089,379 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 590,166 | 659,341 |
Unearned premiums | 590,419 | 569,618 |
Reinsurance payable | 191,728 | 161,918 |
Long-term debt, net | 120,757 | 120,998 |
Deferred income tax liability, net | 9,426 | 18,477 |
Advance premiums | 24,504 | 18,268 |
Accrued compensation | 8,014 | 9,325 |
Lease liability | 31,172 | 8,155 |
Accounts payable and other liabilities | 71,525 | 80,935 |
Total Liabilities | 1,637,711 | 1,647,035 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 26,803,511 shares issued and 26,753,511 outstanding at December 31, 2021 and 27,833,873 shares issued and 27,748,606 outstanding at December 31, 2020 | 3 | 3 |
Additional paid-in capital | 332,797 | 331,867 |
Accumulated other comprehensive income, net of taxes | (4,573) | 6,057 |
Treasury stock, at cost, 10,536,737 shares and 9,279,839 shares at December 31, 2021 and December 31, 2020 | (123,557) | (115,365) |
Retained earnings | 138,381 | 219,782 |
Total Stockholders' Equity | 343,051 | 442,344 |
Total Liabilities and Stockholders' Equity | $ 1,980,762 | $ 2,089,379 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 675,245 | $ 553,172 |
Equity securities, cost | 1,415 | 1,599 |
Reinsurance recoverable net of allowance for credit losses | $ 45 | $ 45 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,803,511 | 27,833,873 |
Common stock, shares outstanding | 26,753,511 | 27,748,606 |
Treasury stock, shares | 10,536,737 | 9,279,839 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
REVENUES: | ||||
Gross premiums written | $ 1,164,879 | $ 1,080,100 | $ 937,937 | |
Change in gross unearned premiums | (20,717) | (83,258) | (13,690) | |
Gross premiums earned | 1,144,162 | 996,842 | 924,247 | |
Ceded premiums | (533,091) | (452,120) | (445,534) | |
Net premiums earned | 611,071 | 544,722 | 478,713 | |
Net investment income | 5,652 | 12,302 | 14,432 | |
Net realized and unrealized (losses) gains | (16) | 22,395 | 4,163 | |
Other revenue | 14,854 | 13,966 | 13,997 | |
Total revenues | 631,561 | 593,385 | 511,305 | |
EXPENSES: | ||||
Losses and loss adjustment expenses | 427,370 | 373,387 | 273,288 | |
Policy acquisition costs, net of ceding commission income | [1] | 145,968 | 128,276 | 107,906 |
General and administrative expenses, net of ceding commission income | [2] | 65,787 | 81,537 | 80,544 |
Goodwill impairment | 60,500 | 0 | 0 | |
Total expenses | 699,625 | 583,200 | 461,738 | |
Operating (loss) income | (68,064) | 10,185 | 49,567 | |
Interest expense, net | 7,970 | 7,972 | 8,523 | |
Other non-operating loss, net | 48 | |||
(Loss) income before income taxes | (76,034) | 2,213 | 40,996 | |
(Benefit) provision for income taxes | (1,307) | (7,113) | 12,360 | |
Net (loss) income | (74,727) | 9,326 | 28,636 | |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Change in net unrealized gains (losses) on investments | (13,661) | 20,738 | 19,765 | |
Reclassification adjustment for net realized investment gains | (64) | (22,395) | (1,734) | |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 3,095 | 384 | (4,174) | |
Total comprehensive (loss) income | $ (85,357) | $ 8,053 | $ 42,493 | |
Weighted average shares outstanding | ||||
Basic | 27,804,355 | 27,978,519 | 29,213,910 | |
Diluted | 27,804,355 | 27,988,966 | 29,232,981 | |
(Loss) earnings per share | ||||
Basic | $ (2.69) | $ 0.33 | $ 0.98 | |
Diluted | $ (2.69) | $ 0.33 | $ 0.98 | |
[1] | Policy acquisition costs includes $ 47.1 million, $ 43.0 million and $ 47.0 million of ceding commission income for the reporting years 2021, 2020 and 2019, respectively . | |||
[2] | General and administration includes $ 15.6 million, $ 14.1 million and $ 15.4 million of ceding commission income for the reporting years 2021, 2020 and 2019, respectively . |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Ceding commission income | $ 62,721 | $ 57,134 | $ 62,450 |
Policy Acquisition Costs [Member] | |||
Ceding commission income | 47,100 | 43,000 | 47,000 |
General and Administrative Expenses [Member] | |||
Ceding commission income | $ 15,600 | $ 14,100 | $ 15,400 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Shares [Member] | Common Shares [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-In-Capital [Member] | Additional Paid-In-Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Deficit) [Member] | Accumulated Other Comprehensive Income (Deficit) [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
Beginning Balance at Dec. 31, 2018 | $ 425,333 | $ 3 | $ 325,292 | $ 195,750 | $ (89,185) | $ (6,527) | ||||||||
Beginning Balance, Shares at Dec. 31, 2018 | 29,477,756 | |||||||||||||
Net unrealized change in investments, net of tax | 13,857 | 13,857 | ||||||||||||
Repurchase of common stock/Stock buy-back | (16,183) | (16,183) | ||||||||||||
Repurchase of common stock/Stock buy-back, Shares | (1,134,686) | |||||||||||||
Restricted stock award withholdings | (3,521) | (3,521) | ||||||||||||
Restricted stock award withholdings, Shares | 22,647 | |||||||||||||
Convertible Option debt extinguishment, net of tax | (1,792) | (1,792) | ||||||||||||
Stock-based compensation on restricted stock | 5,379 | 5,379 | ||||||||||||
Convertible notes converted into common stock | 4,210 | 4,210 | ||||||||||||
Convertible notes converted into common stock, Shares | 285,201 | |||||||||||||
Cash dividends declared | (7,120) | (7,120) | ||||||||||||
Net (loss) income | 28,636 | 28,636 | ||||||||||||
Ending balance at Dec. 31, 2019 | 448,799 | $ 448,765 | $ 3 | $ 3 | 329,568 | $ 329,568 | 217,266 | $ 217,232 | (105,368) | $ (105,368) | 7,330 | $ 7,330 | ||
Ending balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ (34) | $ (34) | ||||||||||||
Ending balance, Shares at Dec. 31, 2019 | 28,650,918 | 28,650,918 | ||||||||||||
Net unrealized change in investments, net of tax | (1,273) | (1,273) | ||||||||||||
Surrendered shares for tax withholding | (2,384) | (2,384) | ||||||||||||
Shares tendered for income taxes withholding, Shares | (247,223) | |||||||||||||
Restricted stock vested | 260,267 | |||||||||||||
Issued restricted stock, Shares | 15,000 | |||||||||||||
Repurchase of common stock/Stock buy-back | (9,997) | (9,997) | ||||||||||||
Repurchase of common stock/Stock buy-back, Shares | (930,356) | |||||||||||||
Stock-based compensation on restricted stock | 4,683 | 4,683 | ||||||||||||
Deferred tax adjustment for credit expected losses | (4) | (4) | ||||||||||||
Cash dividends declared | (6,772) | (6,772) | ||||||||||||
Net (loss) income | 9,326 | 9,326 | ||||||||||||
Ending balance at Dec. 31, 2020 | 442,344 | $ 3 | 331,867 | 219,782 | (115,365) | 6,057 | ||||||||
Ending balance, Shares at Dec. 31, 2020 | 27,748,606 | |||||||||||||
Net unrealized change in investments, net of tax | (10,630) | (10,630) | ||||||||||||
Surrendered shares for tax withholding | (231) | (231) | ||||||||||||
Shares tendered for income taxes withholding, Shares | (28,257) | |||||||||||||
Restricted stock vested | 35,267 | |||||||||||||
Issued restricted stock, Shares | 254,793 | |||||||||||||
Repurchase of common stock/Stock buy-back | $ (8,192) | 8,192 | ||||||||||||
Repurchase of common stock/Stock buy-back, Shares | (1,256,898) | (1,256,898) | ||||||||||||
Stock-based compensation on restricted stock | $ 1,161 | 1,161 | ||||||||||||
Cash dividends declared | (6,674) | (6,674) | ||||||||||||
Net (loss) income | (74,727) | (74,727) | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 343,051 | $ 3 | $ 332,797 | $ 138,381 | $ (123,557) | $ (4,573) | ||||||||
Ending balance, Shares at Dec. 31, 2021 | 26,753,511 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Common stock, dividends, per share, declared | $ 0.24 | $ 0.24 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (74,727) | $ 9,326 | $ 28,636 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 1,161 | 4,683 | 5,379 |
Bond amortization and accretion | 4,054 | 5,229 | 5,087 |
Amortization of original issuance discount on debt | 1,784 | 1,415 | 1,419 |
Depreciation and amortization | 8,449 | 8,101 | 10,436 |
Allowance for bad debt | 161 | 290 | |
Net realized gains | (64) | (22,395) | (1,734) |
Net change for unrealized gains in other investments | 80 | 0 | (2,429) |
Net loss from sale of asset | 168 | 9 | 0 |
Net loss on repurchase of debt | 0 | 0 | 48 |
Deferred income taxes, net of acquired | (5,956) | 6,238 | (898) |
Goodwill impairment | 60,500 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accrued investment income | (430) | 1,640 | 91 |
Premiums receivable, net | 5,547 | (13,948) | (6,685) |
Prepaid reinsurance premiums | (20,055) | (21,716) | 8,969 |
Reinsurance premiums receivable and recoverable | 85,646 | 73,823 | (110,973) |
Income taxes receivable | 20,485 | (29,053) | 32,415 |
Deferred policy acquisition costs, net | (4,616) | (12,054) | (4,156) |
Right-of-use asset, net | (21,292) | (185) | (6,645) |
Other assets | (729) | 291 | (1,728) |
Unpaid losses and loss adjustment expenses | (69,175) | 45,808 | 181,174 |
Unearned premiums | 20,801 | 83,398 | 13,863 |
Reinsurance payable | 29,810 | 5,567 | (10,624) |
Accrued interest | 26 | (214) | 175 |
Income taxes payable | 0 | 0 | 12,624 |
Advance premiums | 6,236 | 1,764 | (3,496) |
Accrued compensation | (1,311) | 3,978 | (3,879) |
Lease liability | 23,017 | 214 | 8,369 |
Other liabilities | (9,278) | 18,131 | (36,071) |
Net cash provided by operating activities | 60,130 | 170,211 | 119,657 |
INVESTING ACTIVITIES | |||
Fixed maturity securities sales, maturities and paydowns | 208,527 | 492,216 | 161,160 |
Fixed maturity securities purchases | (334,584) | (450,463) | (228,047) |
Equity securities sales | 184 | 26 | 26,766 |
Equity securities purchases | 0 | (6) | (4,583) |
Return on other investments | 2,400 | 0 | 0 |
Other investment purchases | 0 | (20,034) | (24,250) |
Proceeds from other investments sold | 0 | 1,078 | 19,995 |
Collection of promissory note receivable | 0 | 0 | 358 |
Cost of property and equipment acquired | (1,007) | (755) | (4,984) |
Net cash (used in) provided by investing activities | (124,480) | 22,062 | (53,585) |
FINANCING ACTIVITIES | |||
Proceeds from term loan facility | 2,782 | 0 | 0 |
Repurchase of convertible notes | 0 | 0 | (2,869) |
Mortgage loan payments | (306) | (290) | (277) |
Principal payments on term loan facility | (4,625) | (9,375) | (15,625) |
Tax withholding on share-based compensation awards | (231) | (2,384) | (3,521) |
Purchase of treasury stock | (8,192) | (9,997) | (16,183) |
Dividends | (6,709) | (6,852) | (6,959) |
Net cash used in financing activities | (17,281) | (28,898) | (45,434) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (81,631) | 163,375 | 20,638 |
Cash, cash equivalents and restricted cash, beginning of period | 446,383 | 283,008 | 262,370 |
Cash, cash equivalents and restricted cash, end of period | 364,752 | 446,383 | 283,008 |
Supplemental Cash Flows Information: | |||
Income taxes paid, net | 528 | 15,691 | 14,165 |
Interest paid | 5,282 | 6,206 | 7,298 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Conversion of promissory notes into Class A Preferred Units | 7,500 | ||
Non-cash acquisition of shares of common stock | 2,100 | ||
Issuance of shares on conversion of convertible notes | $ 53,044 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 359,337 | $ 440,956 | ||
Restricted cash | 5,415 | 5,427 | ||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 364,752 | $ 446,383 | $ 283,008 | $ 262,370 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices | Note 1. Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices Business Description Heritage Insurance Holdings, Inc. is an insurance holding company. Our insurance subsidiaries are Heritage Property & Casualty Insurance Company (“Heritage P&C”), Zephyr Insurance Company (“Zephyr”), Narragansett Bay Insurance Company (“NBIC”) and Pawtucket Insurance Company (“PIC”). PIC is currently inactive and has no policies in force or outstanding claims. Our other subsidiaries include: Heritage MGA, LLC (“MGA”), the managing general agent that manages substantially all aspects of our insurance subsidiaries’ business; Contractors’ Alliance Network, LLC, our vendor network manager; Skye Lane Properties, LLC, our property management subsidiary; Osprey Re Ltd., our reinsurance subsidiary that may provide a portion of the reinsurance protection purchased by our insurance subsidiaries; Heritage Insurance Claims, LLC, an inactive subsidiary reserved for future development; Zephyr Acquisition Company (“ZAC”); NBIC Holdings, Inc., NBIC Service Company which provides services to NBIC and Westwind Underwriters, Inc., an inactive subsidiary of NBIC Holdings, Inc. Our primary products are personal and commercial residential insurance, which we currently offer in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia. We conduct our operations under a single reporting segment. Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid financial instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these financial instruments. To the extent there are negative cash balances with any individual financial institution, the Company excludes the negative amount from cash and cash equivalents neg ative cash balances and reports as accounts payable and other liabilities Restricted Cash Restricted cash related to individual state regulatory deposits, was $ 5.4 million for each of the respective years ended December 31, 2021 and 2020. The Company earned interest income of $ 11,918 and $ 33,400 on its restricted cash deposits. Investments Fixed-Maturity Securities The Company classifies all of its investments in debt securities as available-for-sale and reports them at fair value. Subsequent to its acquisition of debt securities available-for-sale, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. Refer to Note 2 “Investments” to our consolidated statements included in this Annual Report on Form 10-K, for further information. Short-term Securities Short-terms securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Accumulated Other Comprehensive Income Accumulated other comprehensive income consists solely of unrealized gains and losses on debt securities available-for-sale, net of tax. Investment Gains and Losses Net realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized and unrealized gains (losses) are credit impairment losses on invested assets other than those investments accounted for using the equity method of accounting described in the “Allowance for Credit Losses” and “Impairment of Other Investments” section discussed below. Allowance for Credit Losses (Available-for-Sale-Debt Securities) The impairment model for available-for-sale (“AFS”) debt securities differs from the current expected credit loss (“CECL”) methodology applied for held to maturity debt securities because AFS debt securities are measured at fair value rather than amortized cost. Although ASC 326 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Under the new guidance, an entity may no longer consider the length of time fair value has been less than amortized cost. As of December 31, 2021 and 2020, management evaluated and determined a credit allowance was not significant to the financial statements. Other Investments Non-Consolidating Variable Interest Entities (“VIEs”) The Company makes passive investments in limited partnerships (“LPs”), corporations, and a Real Estate Investment Trust (“REIT”). The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which it has other variable interests is considered a variable interest entity ("VIE"). The Company consolidates VIEs when it is determined to be the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and has the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, it will account for the investment or other variable interests in a VIE in accordance with applicable GAAP. For the year ended December 31, 2021 and 2020, the Company was not the primary beneficiary to any of its other investments and therefore considered the other investments as non-consolidated VIEs. Equity securities that do not result in consolidation and are not accounted for under the equity method, are measured at fair value. Equity securities without a readily determinable fair value are reported at cost, less impairment, unless we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer (measurement alternative). Change in fair value are reflected in the Company’s consolidated statements of operations. Certain other investments provide the Company with monthly or quarterly return on capital on a regular schedule. Impairment of Other Investments The Company maintains various interests in other investments which are without a readily determinable fair value and are measured at cost less impairment for observable changes in price or impairments or at net asset value. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. When such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a change in fair value are included in net realized gains and unrealized gains and losses in the Company’s consolidated statement of operations. For the year ended December 31, 2021, the Company recorded impairment charges totaling $ 2.2 million on its other investments compared to having no impairment in 2020. Fair Value Major categories of financial assets and liabilities, including short-term investments, other assets and derivatives are measured at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis when impaired, which include long-lived assets, goodwill, asset retirement obligations and other investments that the Company cannot significantly influence. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the principal or most advantageous market in which we would transact is analyzed. Assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance, are considered. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE and NASDAQ. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2021. Changes in interest rates after December 31, 2021 may affect the fair value of the Company’s investments. The Company’s non-financial assets, such as goodwill and intangible assets, are carried at cost until there are indicators of impairment and are recorded at fair value only when an impairment charge is recognized. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. Long term debt is recorded at carrying value, Refer to Note 14 “ Long-Term Debt” to our consolidated statements included in this Annual Report on Form 10-K, for further information. Premiums The Company records direct and assumed premiums written as revenue net of ceded amounts on a daily pro rata basis over the contract period of the related in force policies or reinsurance contract. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded $ 451,000 and $ 451,600 allowance for the year ended December 31, 2021 and 2020. Bad debt expense related to uncollectible premiums was $ 0 , $ 161,300 and $ 290,300 for the years ended December 31, 2021, 2020 and 2019, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. We earn ceding commission on our gross and net quota share reinsurance contracts. Our accounting policy is to allocate ceding commission between policy acquisition costs and general and administrative expenses for financial reporting purposes. Ceding commission is allocated between policy acquisition costs and general and administrative expenses based upon the proportion these costs bear to production of new business. For the years ended December 31, 2021 and 2020, we earned ceding commission income of $ 62.7 million and $ 57.1 million of which $ 47.1 million and $ 43.0 million was allocable to policy acquisition costs. Ceding commission income is deferred and recognized over the quota share contract period. The amount and rate of ceding reinsurance commissions earned on the net quota share contract can slide within a prescribed minimum and maximum, depending on loss performance and how future losses develop. Premium Deficiency Reserve At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. As a result, a reasonable possibility exists that an estimated recovery may change significantly in the near term from the amounts included in the Company’s consolidated financial statements. The Company’s reinsurance agreements are generally short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. When the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Given that an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. . The Company remains liable for claims payments if any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar geographic regions, activities or economics characteristics of the reinsurers to minimize its exposure to significant loses from reinsurers insolvencies. The Company contracts with a diverse population of reinsurers to secure its annual reinsurance coverage, for which the excess of loss treaties generally become effective June 1st each year. Allowance for Credit Losses for Reinsurance Recoverables The allowance for credit losses for reinsurance recoverable is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The Company monitors the credit quality of its reinsurance recoverables through the use of A.M. Best’s Financial Strength rating ("FSR"), or in the absence of an FSR consideration of credit ratings issued by approved rating agencies such as S&P, Moody’s, or Fitch. At December 31, 2021, the determination of the allowance for credit losses on reinsurance recoverables included analysis of (i) reinsurance recoverable balances by reinsurer FSR, (ii) estimated payment patterns associated with the claims underlying the reinsurance balances and (iii) historical default rates by reinsurer FSR as published by A.M. Best. In addition to the quantitative analysis, qualitative factors considered include but are not limited to (i) global reinsurer capital level, (ii) reinsurance market trends, (iii) the low interest rate environment and (iv) the stressed global economy, including the impact of COVID-19. Reinsurance recoverables are reported on the consolidated balance sheets net of the CECL allowance, if any. Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building— 40 years ; computer hardware and software 3-years ; office and furniture equipment— 3 to 7 years . Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. Leases We lease office space under finance and operating leases with expiration dates through 2031 . We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We primarily use our incremental borrowing rates for our operating leases (rates are not readily determinable) and implicit rates for our financing leases in determining the present value of lease payments. The Company used the implicit rates within the finance leases. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Goodw ill and Intangible Assets On January 1, 2020, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASC 350) ("ASU 2017-04"), which changed the guidance on goodwill impairment. Under the new guidance, the qualitative assessment of the recoverability of goodwill remains the same, but the second step of the two-step quantitative test, which required calculation of the implied fair value of goodwill, has been eliminated. Instead, an impairment charge is recognized when the carrying value of a reporting unit exceeds its fair value. Any excess of carrying value over fair value is written down as an impairment. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. " Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The reserve for unpaid losses is the estimate of amounts necessary to settle all reported and unreported incurred claims for the ultimate cost of insured losses, based upon the facts of each case and the Company’s experience with similar cases. Salvage and subrogation are deducted from the reserve for claims and claims expense on a cash basis. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting re-estimates are reflected in current results of operations. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports loss and loss adjustment expenses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. Other Revenue Our insurance affiliates may charge policyholders a policy fee on each policy written; to the extent these fees are not subject to refund, and the Company recognizes the income immediately when collected, which coincide with related service obligations. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and records the fees as income when collected. Other income also includes rental income due under non-cancelable leases for space at the Company’s commercial property. Assessments Guaranty fund and other insurance-related assessments imposed upon the Company’s insurance company affiliates are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover guaranty or other insurance-related assessments, the Company recoups such assessments from our policyholders in the form of a policy surcharge. Once the recoupment period begins, the entire recoupment amount is recorded as an asset on our balance sheet. There were no assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. Convertible Notes In August 2017 and September 2017, the Company issued collectively $ 136.8 million of 5.875 % Convertible Senior Notes (the “Convertible Notes”) due August 1, 2037 . The Convertible notes are accounted for in accordance with ASC 470-20. At the time of issuance and until December 1, 2017, the Company recorded the fair value of the derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statement of operations. As of December 31, 2021, the Company has $ 23.4 million of the Convertible Notes outstanding. This amount is net of $ 21.1 million of Convertible Notes reacquired and held by an insurance company subsidiary. Refer to the paragraph below under Debt Extinguishmen t for accompanying information regarding the repurchases, and Note 14 “ Long-Term Debt” to our consolidated statements included in this Annual Report on Form 10-K, for further information . Debt Extinguishment The Company has reacquired Convertible Notes over a series of transactions in 2019, 2018 and most recently in January 2022. In accordance with ASC 470 “ Debt ”, the Company evaluated the accounting treatment to determine if the repurchase of the Convertible Notes constituted a debt extinguishment. ASC 405-20-40-1 provides implementation guidance in order to determine if the Company is legally released from being the primary obligor under the liability, either judicially or by the creditor. Based on the reacquisition of the Convertible Notes, the Company derecognized the related debt and conversion option liability. Upon extinguishment, the Company performed a discounted cash flow (“DCF”) analysis for each transaction based on its date and principal amount, leveraging market debt yield data as of each trade date to estimate the costs of the debt. Debt Issuance and Discount Costs In connection with the issuance of debt, any debt issuance and discount costs are reflected on the balance sheet as an offset to long-term debt and amortized using the effective interest method over the life of the underlying debt instrument. Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period in accordance with ASC Topic 718, Compensation—Stock Compensation . Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. For awards with performance-based vesting conditions expense is not recognized until it is determined that it is probable the performance-based conditions will be met. When achievement of a performance-based condition is probable, a catch-up of expense will be recorded as if the award had been vesting on a straight line basis from the award date. The award will continue to be expensed on a straight-line basis until probability of achieving the performance-based conditions changes, if applicable. Earnings Per Share Basic net earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net earnings per share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the reported period. Common equivalent shares include incremental shares from diluted vested and unvested restricted shares and convertible notes outstanding during the period using the treasury stock method. Income tax Income taxes are accounted for under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both estimated federal and state income taxes. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. The Company has reclassed from other assets and accounts payable, the right-of-use lease asset and lease liability, respectively on the balance sheet for the year 2020 to conform to the current year's presentation. This also changed presentation only on the Statement of Cashflows for 2020 and 2019. No presentation changes impacted the Changes in Stockholders' Equity or the Statement of Operations. Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In August 2020, the FASB issued ASU 2020-06 related to the measurement and disclosure requirements for convertible instruments and contracts in an entity’s own equity. The pronouncement simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s in own equity. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The Company expects that its adoption of ASU 2020-06 will not have an impact on its senior convertible notes. The Company expects that in the periods in which the Company reports a net income, the number of shares outstanding for the diluted earnings per share calculation will include approximately 2.8 million additional shares under the if-converted method, impacting the Company's consolidated EPS results. The Company intends to adopt the ASU 2020-06 during the first quarter of 2022. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective for contract modifications made between March 12, 2020 and December 31, 2022. The new guidance reduces the operational and financial impacts of contract modifications that replace a reference rate, such as London Interbank Offered Rate (LIBOR), affected by reference rate reform. The adoption of the new guidance provides relief from curre |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 2. Investments The amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities available-for-sale are as follows: December 31, 2021 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 73,923 $ 184 $ 282 $ 73,825 States, municipalities and political subdivisions 106,727 242 1,270 105,699 Special revenue 291,005 1,084 3,520 288,569 Hybrid securities 99 — — 99 Industrial and miscellaneous 203,491 636 2,965 201,162 Total $ 675,245 $ 2,146 $ 8,037 $ 669,354 (1) Includes securities at December 31, 2021 with a carrying amount of $ 22.5 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2020 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 29,985 $ 609 $ 1 $ 30,593 States, municipalities and political subdivisions 84,597 1,077 4 85,670 Special revenue 271,194 3,154 27 274,321 Hybrid securities 100 — — 100 Industrial and miscellaneous 167,296 3,070 39 170,327 Total $ 553,172 $ 7,910 $ 71 $ 561,011 (1) Includes securities at December 31, 2020 with a carrying amount of $ 21.6 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. The table below summarizes the Company’s fixed maturity securities at December 31, 2021 and 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. December 31, 2021 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 42,200 6 % $ 42,323 6 % Due after one year through five years 311,799 46 % 309,744 46 % Due after five years through ten years 224,654 34 % 220,777 34 % Due after ten years 96,592 14 % 96,510 14 % Total $ 675,245 100 % $ 669,354 100 % December 31, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 68,587 12 % $ 69,027 12 % Due after one year through five years 142,969 26 % 145,675 26 % Due after five years through ten years 166,240 30 % 168,979 30 % Due after ten years 175,376 32 % 177,330 32 % Total $ 553,172 100 % $ 561,011 100 % Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. Net Realized and Unrealized (Losses) Gains The proceeds from the sale of debt securities were $ 30.4 million, $ 381.3 million and $ 171.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents net realized gains (losses) on the Company’s debt securities available-for-sale for the years ended December 31, 2021, 2020 and 2019, respectively: For the Years ended December 31, 2021 2020 2019 Realized Gains (Losses) Fair Value at Sale Realized Gains (Losses) Fair Value at Sale Realized Gains (Losses) Fair Value at Sale (in thousands) Debt Securities Available-for-sale Realized gains $ 716 $ 26,029 $ 22,466 $ 374,863 $ 2,119 $ 157,125 Realized losses ( 652 ) 4,359 ( 71 ) 6,368 ( 211 ) 14,580 Net realized gains $ 64 $ 30,388 $ 22,395 $ 381,231 $ 1,908 $ 171,705 The following table presents the reconciliation of net realized and unrealized (losses) gains on the Company’s investments reported for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 (in thousands) Gross realized gains on sales of available-for-sale securities $ 716 $ 22,466 $ 2,119 Gross realized losses on sales of available-for-sale securities ( 652 ) ( 71 ) ( 211 ) Gross realized and unrealized on equity securities — — 2,703 Gross realized and unrealized losses on equity securities — — ( 1,441 ) Gross realized and unrealized gains in other investments 2,100 — 1,050 Gross realized and unrealized losses in other investments — — ( 57 ) Impairment charge in other investments ( 2,180 ) — — Net realized and unrealized (losses) gains $ ( 16 ) $ 22,395 $ 4,163 Equity Investments For the years ended December 31, 2021 and 2020, the Company had no net realized and unrealized gains or (losses) reported. For the year ended December 31, 2019, the Company net realized gains were $ 3.8 million and net realized losses were $ 1.5 million, respectively. The following table presents the Company's equity investments as of December 31, 2021 and 2020, respectively. For the Year Ended December 31, 2021 2020 Common stock $ — $ — Membership Shares 1,415 1,599 Total equity investments, at cost $ 1,415 $ 1,599 Net Investment Income The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 (in thousands) Debt securities available-for-sale $ 7,220 $ 12,067 $ 13,761 Equity securities — — 1,436 Cash and cash equivalents 71 223 1,470 Other investments 1,435 1,100 505 Net investment income 8,726 13,390 17,172 Investment expenses 3,074 1,088 2,740 Net investment income, less investment expenses $ 5,652 $ 12,302 $ 14,432 The following tables present, for all debt securities available-for-sale in an unrealized loss position, for which no allowance for credit loss is established (including securities pledged), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: Less Than Twelve Months Twelve Months or More December 31, 2021 Number of Gross Fair Value Number of Gross Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 43 $ 282 $ 57,420 — $ — $ — States, municipalities and political subdivisions 98 1,270 80,972 — — — Special revenue 253 3,485 195,450 14 35 1,214 Industrial and miscellaneous 191 2,387 146,746 18 578 11,598 Total 585 $ 7,424 $ 480,588 32 $ 613 $ 12,812 Less Than Twelve Months Twelve Months or More December 31, 2020 Number of Gross Fair Value Number of Gross Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 3 $ 1 $ 73 1 $ — $ 7 States, municipalities and political subdivisions 6 4 5,158 — — — Special revenue 27 24 16,439 9 3 73 Industrial and miscellaneous 26 39 16,025 — — — Total 62 $ 68 $ 37,694 10 $ 3 $ 80 The Company’s unrealized losses on corporate bonds have not been recognized because the bonds are of high credit quality with investment grade ratings. The Company does not intend to sell and it is unlikely the Company will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is deemed due to changes in interest rates and other market conditions. The debt issuers continue to make timely principal and interest payments on the bonds. After taking into account these and other factors previously described, the Company believes these unrealized losses generally were caused by a decrease in market interest rates since the time the securities were purchased and not as a result of credit losses. Other Investments Non-Consolidated Variable Interest Entities (“VIEs”) The Company makes passive investments in limited partnerships (“LPs”), which is accounted for using the equity method, with income reported in net realized and unrealized gains and losses. The Company also makes passive investments in a Real Estate Investment Trust (“REIT”) and Insuretech company, which are accounted for using the measurement alternative method, which is reported at cost less impairment (if any), plus or minus changes from observable price changes, as described in the table below. The following table summarizes the Company’s non-consolidated VIEs by category at December 31, 2021 and 2020 (in thousands): Carrying Value For the Year Ended December 31, Balance Sheet Method 2021 2020 Other Real Estate LLC (1) Other Investments Equity Method $ 1,843 $ 3,000 Real Estate Corporation (2) Other Investments Measure Alternative 2,977 4,000 Class A Preferred Units (3) Other Investments Amortized Cost 15,000 17,400 Non-real estate related (4) Other Investments Equity Method 2,009 2,009 Insurtech Stock (5) Other Investments Measure Alternative 2,100 — Total non-consolidated VIEs $ 23,929 $ 26,409 (1) For the year ended December 31, 2021, a $ 1.2 million loss using the equity method of valuation was recognized in net realized and unrealized gains (losses) on the Statement of Operations. (2) For the year ended December 31, 2021, a $ 1.0 million impairment was recognized in net realized and unrealized gains (losses) on the Statement of Operations. (3) The Class A preferred units issued originally at $ 7.5 million and $ 9.9 million were measured at amortized cost under the guidance of ASC 320 and are subject to a fixed principal and interest payment schedule with maturity dates of February 1, 2023 and April 1, 2024 , respectively. (4) Certain underlying assets of the funds are expected to be liquidated over the period of approximately 3 to 5 years from December 31, 2021. In addition, the Company does not have the ability to redeem or withdraw from the funds, or to sell, assign, or transfer its investment, without the consent of the General Partner or Managers of each fund, but will receive distributions based on the liquidation of the underlying assets and interest processed from the underlying assets. (5) For the year ended December 31, 2021, the Company acquired common shares and warrants of an Insurtech company and this investment is reported using the measurement alternative method. The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at December 31, 2021 and 2020: As of December 31, 2021 As of December 31, 2020 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure (in thousands) Investments in non-consolidated VIEs $ 23,929 $ 23,929 $ 26,409 $ 26,409 The Company’s maximum exposure to loss with respect to these investments is limited to the investments carrying amounts reported as “other investments” in the Company’s consolidated balance sheet. For the year ended December 31, 2021, the Company recognized $ 1.0 million for other investment impairment on its Real Estate Corporation investment and $ 1.2 million loss on its Other Real Estate investment as a result of changes in its equity method valuation. No agreements exist requiring the Company to provide additional funding to any of the non-consolidated VIEs in excess of the Company’s initial investment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 3. Goodwill and Other Intangible Assets For the years ended December 31, 2021 and 2020, goodwill was $ 92.0 million and $ 152.5 million, respectively, and intangible assets were $ 55.9 million and $ 62.3 million, respectively. The Company has recorded $ 1.3 million relating to insurance licenses classified as an indefinite lived intangible. Goodwill Amount Balance as of December 31, 2019 $ 152,459 Goodwill acquired — Impairment — Balance as of December 31, 2020 $ 152,459 Goodwill acquired — Impairment ( 60,500 ) Balance as of December 31, 2021 $ 91,959 The Company utilizes a combination of approaches to value the Company’s single reporting unit. The estimate of fair value was derived from the weighting of the income approach (discounted cash flow model) in conjunction with the market approach (guideline public company method and guideline transaction method) to determine the fair value of the single reporting unit. The estimate of fair value from the income approach was based on significant estimates and assumptions related to forecasts of future income and losses and LAE expenses, which are sensitive to changes in expectations about future market or economic conditions. The determination of the fair value using the guideline public company method requires management to make significant assumptions related to the price to tangible book value multiples and price to earnings multiples as well significant assumptions related to control premiums. The determination of the fair value using the guideline transaction method requires management to review the value of the business based on pricing multiples derived from the sale of companies that are similar to the Company. As a result of the analysis, we impaired a portion of our goodwill, reducing our carrying value of goodwill from $ 152.5 million to $ 92 million based on the following factors: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, largely due to recent weather-related catastrophe events; (ii) elevated loss ratios for property insurers in our markets; and (iii) our market cap was below book value. These factors reduced our previously modeled fair value of the Company and resulted in a $ 60.5 million goodwill impairment charge, which is not tax deductible . Other Intangible Assets Our intangible assets resulted primarily from the acquisitions of Zephyr Acquisition Company and NBIC Holdings, Inc. and consist of brand, agent relationships, renewal rights, customer relations, trade names, non-competes and insurance licenses. Finite-lived intangibles assets are amortized over their useful lives from one to fifteen years . The tables below detail the finite-lived intangible assets, net as of December 31, 2021 and 2020, respectively (amounts in thousands): For the Year Ended December 31, 2021 2020 Amortizing intangible assets (in thousands) Brand $ 1,210 $ 1,210 Agent relationships 15,500 15,500 Renewal rights 57,200 57,200 Customer relations 870 870 Trade names 9,000 9,000 Non-compete 4,790 4,790 88,570 88,570 Accumulated amortization ( 33,959 ) ( 27,608 ) Total infinite-lived intangible assets, net 54,611 60,962 Indefinite-lived intangible assets: License acquired 1,315 1,315 Total intangible assets, net $ 55,926 $ 62,277 Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2022 $ 6,351 2023 6,351 2024 6,351 2025 6,315 2026 6,078 Thereafter 23,165 $ 54,611 Amortization expense of intangible assets was $ 6.4 million, $ 6.4 million and $ 8.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 4. Earnings (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: For the Year Ended December 31, 2021 2020 2019 Basic (loss) earnings per share: Net (loss) income attributable to common stockholders (000's) $ ( 74,727 ) $ 9,326 $ 28,636 Weighted average shares outstanding 27,804,355 27,978,519 29,213,910 Basic (loss) earnings per share: $ ( 2.69 ) $ 0.33 $ 0.98 Diluted (loss) earnings per share: Net (loss) income attributable to common stockholders (000's) $ ( 74,727 ) $ 9,326 $ 28,636 Weighted average shares outstanding 27,804,355 27,978,519 29,213,910 Add: Effect of dilutive securities Impact of unvested equity awards — 10,447 19,071 Diluted weighted average common shares outstanding 27,804,355 27,988,966 29,232,981 Diluted (loss) earnings per share: $ ( 2.69 ) $ 0.33 $ 0.98 The Company had 2,809,453 , 2,029,162 and 1,914,770 antidilutive shares for the years ended December 31, 2021, 2020 and 2019, respectively. The convertible notes were excluded from the computations because the conversion price on these notes were greater than the average market price of our common shares during each of the respective periods, and therefore, would be anti-dilutive to earnings per share under the treasury method. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5. Fair Value Measurements Certain of the Company’s assets are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Accordingly, when market observable data are not readily available, the Company’s own assumptions are set to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: Level 1 – Unadjusted quoted prices are available in active markets for identical assets/liabilities as of the reporting date. Level 2 – Valuations based on observable inputs, such as quoted prices similar assets or liabilities at the measurement date; quoted prices in the markets that are not active; or other inputs that are observable, either directly or indirectly. Level 3 – Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. For the Company’s investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair values from its third-party valuation service and evaluates the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs. The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. For the years ended December 31, 2021 and 2020, there were no transfers in or out of Level 1, 2, and 3. December 31, 2021 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 73,825 $ 364 $ 73,461 $ — States, municipalities and political subdivisions 105,699 — 105,699 — Special revenue 288,569 — 288,569 — Hybrid securities 99 — 99 — Industrial and miscellaneous 201,162 — 201,162 — Total debt securities $ 669,354 $ 364 $ 668,990 $ — December 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 30,593 $ 371 $ 30,222 $ — States, municipalities and political subdivisions 85,670 — 85,670 — Special revenue 274,321 — 274,321 — Hybrid securities 100 — 100 — Industrial and miscellaneous 170,327 — 170,327 — Total debt securities $ 561,011 $ 371 $ 560,640 $ — Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. To evaluate such assets for a potential impairment, we determine the fair value of the goodwill and intangible assets using a combination of a discounted cash flow approach and market approaches, which contain significant unobservable inputs and therefore are considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. Certain of our investments in accordance with GAAP for the type of investment, are measured using methodologies other than fair value. The following table presents information for assets measured at an estimated fair value on a nonrecurring basis as of December 31, 2021: Other Investments Carrying Value Balance, January 1, 2021 Amounts impaired Carrying Value Balance, December 31, 2021 (in thousands) Goodwill (1) $ 152,459 $ ( 60,500 ) 91,959 Real Estate Corporation, measurement alternative (2) 4,000 ( 1,023 ) 2,977 Total $ 156,459 $ ( 61,523 ) $ 94,936 (1) Non-cash impairment charge recorded in operating expenses in the consolidated statement of operations by the insurance companies and non-insurance companies. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. (2) Impairment on these investments were recognized in the second quarter of 2021 based on the estimated fair value of the Company’s ownership interest. For the December 31, 2021, the goodwill impairment charge was recorded following the Company's annual valuation review and principally stemmed from its common stock valuation and prevailing valuation multiples in the property insurance market. The Company used a weighting of the income and market approaches to determine the fair value of the reporting unit. The impairment was based on the following factors: (i) the fair value of our stock trading significantly below book value, (ii) market capitalization control premium; and (iii) financial performance such as a negative or declining cash flows due to recent weather related catastrophes. There were no non-recurring fair value adjustments during 2020 and 2019. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Comprehensive Income Net Of Tax [Abstract] | |
Other Comprehensive Income | Note 6. Other Comprehensive Income The following table is a summary of other comprehensive (loss) income and discloses the tax impact of each component of other comprehensive (loss) income for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 Pre-tax Tax After- Pre- Tax After- Pre-tax Tax After- (in thousands) Other comprehensive (loss) income Change in unrealized gains on investments, net $ ( 13,661 ) 3,081 $ ( 10,580 ) $ 20,738 $ ( 4,807 ) $ 15,931 $ 19,765 $ ( 4,575 ) $ 15,190 Reclassification adjustment of realized (gains) losses included in net (loss) income ( 64 ) 14 ( 50 ) ( 22,395 ) 5,191 $ ( 17,204 ) ( 1,734 ) 401 $ ( 1,333 ) Effect on other comprehensive (loss) income $ ( 13,725 ) $ 3,095 $ ( 10,630 ) $ ( 1,657 ) $ 384 $ ( 1,273 ) $ 18,031 $ ( 4,174 ) $ 13,857 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 7. Other Assets The following table summarizes the Company’s other assets for the years ended December 31, 2021 and 2020: Description December 31, 2021 December 31, 2020 (in thousands) Other amounts receivable $ 1,934 $ 1,816 State underwriting pooling & assoc. 3,956 4,753 Prepaid expense 6,382 4,726 Premium taxes — 248 Total other assets $ 12,272 $ 11,543 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 8. Leases The Company has entered into operating and financing leases primarily for real estate and vehicles. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to ten years , and often include one or more options to renew . These renewal terms can extend the lease term from two to ten years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing our right-of-use assets and lease obligations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Because the rate implicit in each operating lease is not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments. The Company used the implicit rates within the finance leases. The components of lease costs were as follows (in thousands): For the Year Ended For the Year Ended Amortization of ROU assets - Finance leases $ 1,969 $ 98 Interest on lease liabilities - Finance leases 785 25 Variable lease cost (cost excluded from lease payments) 557 538 Operating lease cost (cost resulting from lease payments) 1,359 1,362 Total lease cost $ 4,670 $ 2,023 Right-of-use lease asset and Lease Liability was as follows (in thousands): Balance Sheet Classification December 31, 2021 December 31, 2020 Right-of-use assets - operating Right-of-use lease asset, net $ 5,035 $ 5,955 Right-of-use assets - finance Right-of-use lease asset, net $ 22,718 $ 506 Lease Liability - operating Lease liability $ 6,551 $ 7,610 Lease Liability - finance Lease liability $ 24,621 $ 545 Weighted-average remaining lease term and discount rate for our operating and financing leases was as follows: December 31, 2021 December 31, 2020 Weighted average lease term - Finance leases 9.1 3.76 Weighted average lease term - Operating leases 6.23 6.99 Weighted average discount rate - Finance leases 4.18 % 6.92 % Weighted average discount rate - Operating leases 5.33 % 5.30 % Supplemental disclosure of cash flow information related to leases were as follows: For the Year Ended For the Year Ended Cash payments for: (in thousands) Finance lease - Operating cash flows $ 291 $ 25 Finance lease - Financing cash flows $ 599 $ 82 Operating lease - Operating cash flows (fixed payments) $ 1,505 $ 1,452 Operating lease - Operating cash flows (liability reduction) $ 1,133 $ 1,031 Maturities of lease liabilities were as follows as of December 31, 2021 (in thousands): December 31, 2021 2022 $ 4,566 2023 4,500 2024 4,194 2025 3,970 2026 3,990 2027 and thereafter 16,224 Total lease payments 37,444 Less: imputed interest ( 6,272 ) Present value of lease liabilities $ 31,172 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 9. Property and Equipment Property and equipment, net consists of the following at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 (in thousands) Land $ 2,582 $ 2,582 Building 10,141 10,141 Computer hardware and software 7,204 6,358 Office furniture and equipment 1,355 2,027 Tenant and leasehold improvements 8,255 8,133 Vehicle fleet 720 850 Total, at cost 30,257 30,091 Less: accumulated depreciation and amortization ( 12,831 ) ( 11,406 ) Property and equipment, net $ 17,426 $ 18,685 Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $ 2.1 million, $ 1.6 million, $ 2.2 million, respectively. The Company’s own real estate consists of 15 acres of land, two buildings with a gross area of 88,378 square feet and a parking garage. Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount 2022 $ 2,763 2023 2,905 2024 2,801 2025 2,473 2026 2,525 2027 and Thereafter 17,140 Total $ 30,607 |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | Note 10. Deferred Reinsurance Ceding Commission The Company defers certain income in connection with its quota share treaties, the ceded reinsurance commissions income, called deferred reinsurance ceding commissions (“DRCC”), which are deferred and earned over the terms of the reinsurance agreements. Ceding commission on quota share agreements call for provisional ceding rate, subject sliding scale adjustments based on the loss experience of the reinsurers. Adjustments are reflected in current operations. The Company allocates 75 % of total ceding commission income to policy acquisition costs and 25 % of total ceding commission income to general and administrative expense. The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the year ended December 31, 2021, 2020 and 2019 the Company allocated ceding commission income of $ 47.1 million and $ 43.0 million and $ 47.0 million to policy acquisition costs and $ 15.6 million and $ 14.1 million and $ 15.4 million to general and administrative expense, respectively. The table below depicts the activity with regard to deferred reinsurance ceding commission during the years ended December 31, 2021, 2020 and 2019. For the Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance of deferred ceding commission income $ 39,995 $ 37,464 $ 44,819 Ceding commission deferred $ 63,131 59,664 55,095 Less: ceding commission earned $ ( 62,721 ) ( 57,134 ) ( 62,450 ) Ending balance of deferred ceding commission income $ 40,405 $ 39,995 $ 37,464 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Note 11. Deferred Policy Acquisition Costs The Company defers certain costs in connection with written policies, called deferred policy acquisition costs (“DPAC”), which are amortized over the effective period of the related insurance policies. The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC for the years ended December 31, 2021, 2020 and 2019: For the Year Ended December 31, 2021 2020 2019 (in thousands) Beginning Balance $ 89,265 $ 77,211 $ 73,055 Policy acquisition costs deferred $ 193,106 171,275 149,095 Amortization $ ( 188,490 ) ( 159,220 ) ( 144,939 ) Ending Balance $ 93,881 $ 89,265 $ 77,211 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Reinsurance | Note 12. Reinsurance Overview Reinsurance In order to limit the Company’s potential exposure to individual risks and catastrophic events, the Company purchases significant reinsurance from third party reinsurers. Purchasing reinsurance is an important part of the Company’s risk strategy, and premiums ceded to reinsurers is one of the Company’s largest costs. The Company has strong relationships with reinsurers, which it attributes to its management’s industry experience, disciplined underwriting, and claims management capabilities. For each of the twelve months beginning June 1, 2020 and 2021, the Company purchased reinsurance from the following sources: (i) the Florida Hurricane Catastrophe Fund, a state-mandated catastrophe fund (“FHCF”) for Florida policies only, (ii) private reinsurers, all of which were rated “A-” or higher by A.M. Best Company, Inc. (“A.M. Best”) or Standard & Poor’s Financial Services LLC (“S&P”) or were fully collateralized, and (iii) the Company’s wholly-owned reinsurance subsidiary, Osprey Re Ltd. (“Osprey”). In addition to purchasing excess of loss catastrophe reinsurance, the Company also purchased quota share, property per risk and facultative reinsurance. The Company’s quota share program limits its exposure on catastrophe and non-catastrophe losses and provides ceding commission income. The Company’s per risk programs limit its net exposure in the event of a severe non-catastrophe loss impacting a single location or risk. The Company also utilizes facultative reinsurance to supplement its per risk reinsurance program where the Company capacity needs dictate. Purchasing a sufficient amount of reinsurance to cover catastrophic losses from single or multiple events or significant non-catastrophe losses is an important part of the Company’s risk strategy. Reinsurance involves transferring, or “ceding”, a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. The Company’s insurance regulators require all insurance companies, like us, to have a certain amount of capital and reinsurance coverage in order to cover losses and loss adjustment expenses upon the occurrence of a catastrophic event. The Company’s reinsurance program provides reinsurance in excess of its state regulator requirements, which are based on the probable maximum loss that it would incur from an individual catastrophic event estimated to occur once in every 100 years based on its portfolio of insured risks. The nature, severity and location of the event giving rise to such a probable maximum loss differs for each insurer depending on the insurer’s portfolio of insured risks, including, among other things, the geographic concentration of insured value within such portfolio. As a result, a particular catastrophic event could be a one-in-100-year loss event for one insurance company while having a greater or lesser probability of occurrence for another insurance company. The Company also purchases reinsurance coverage to protect against the potential for multiple catastrophic events occurring in the same year. The Company shares portions of its reinsurance program coverage among its insurance company affiliates. 2021-2022 Reinsurance Towers Millions $ 1,432.3 $ 1,332.3 Layer 4 FL - SE Only 100 % of $ 100 M xs $ 40 M Nil Reinst. Layer 3 100 % of $ 160 M xs $ 40 M Nil Reinst. $ 1,224.2 $ 1,194.0 FHCF Layer 90 % of 869.3 M 354.9 M 782.4 M) $ 705.7 $ 354.9 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention FL 1st Event Millions $ 1,062.0 $ 1,061.6 Northeast Only 100 % of $ 222 M xs $ 40 M Nil Reinst. $ 840.0 Multi-Zonal 100 % of 290 M xs $ 40 M 100 % w/ RPP $ 550.0 Layer 3 100 % of $ 160 M xs $ 40 M Nil Reinst. $ 390.0 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention $ 20.0 Net Quota Share 56.5 % of $ 20 M ($ 11.3 M) NE 1st Event Millions $ 680.0 Multi-Zonal 100 % of 290 M xs $ 40 M 100 % w/ RPP $ 390.0 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention HI 1st Event * xs = in excess 2021-2022 Reinsurance Program Catastrophe Excess of Loss Reinsurance E ffective June 1, 2021, the Company entered into catastrophe excess of loss reinsurance agreements covering Heritage Property & Casualty Insurance Company (“Heritage P&C”), Zephyr Insurance Company (“Zephyr”) and Narragansett Bay Insurance Company (“NBIC”). The catastrophe reinsurance programs are allocated among traditional reinsurers, the Florida Hurricane Catastrophe Fund (“FHCF”) and Osprey Re Ltd (“Osprey”), the Company’s captive reinsurer. The FHCF covers Florida risks only and the Company elected to participate at 90 %. For the 2021 hurricane season, Osprey Re will provide reinsurance only for a portion of the Heritage P&C program, covering the southeastern region. T he Company’s third-party reinsurers are either rated “A-” or higher by A.M. Best or S&P or are fully collateralized, to reduce credit risk. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2021-2022 reinsurance program provides first event coverage up to $ 1.43 billion for Heritage P&C, first event coverage up to $ 1.1 billion for NBIC, and first event coverage up to $ 680.0 million for Zephyr. The Company’s first event retention in a 1 in 100 year event would include retention for the respective insurance company as well as any retention by Osprey. The first event maximum retention up to a 1 in 100 year event for each insurance company subsidiary is as follows: Heritage P&C – $ 32.0 million, which would be 100 % ceded to Osprey; Zephyr – $ 32 million; and NBIC – $ 20.7 million. The majority of the Company’s program was placed on a cascading basis which provides greater horizontal protection in a multiple small events scenario and features additional coverage enhancements. The Company is responsible for all losses and loss adjustment expenses in excess of our reinsurance program. For second or subsequent catastrophic events, the Company’s total available coverage depends on the magnitude of the first event, as the Company may have coverage remaining from layers that were not previously fully exhausted. An aggregate of $ 2.8 billion of limit purchased in 2021 includes reinstatement through the purchase of reinstatement premium protection. The amount of coverage, however, will be subject to the severity and frequency of such events. The Company's estimated net cost for the 2021-2022 catastrophe reinsurance programs is approximately $ 312.0 mill ion. Additionally, the Company placed 100 % of an occurrence contract for business underwritten by NBIC which covers all catastrophe losses excluding named storms, on December 31, 2021, expiring December 31, 2022 . The limit on the contract is $ 20.0 million with a retention of $ 20.0 million and has one reinstatement available. The Company placed 50 % of an aggregate contract for the Company’s business underwritten by NBIC which covers all catastrophe losses excluding named storms, on December 1, 2021, expiring March 31, 2022 . The limit on the contract is $ 20.0 million with an aggregate retention of $ 21.0 million, with a $ 21.0 million per occurrence cap, and a $ 1.0 million franchise deductible . Net Quota Share Reinsurance The Company’s Net Quota Share coverage is proportional reinsurance, which applies to business underwritten by NBIC, for which certain of the Company’s other reinsurance (property catastrophe excess of loss and the second layer of the general excess of loss) inures to the quota share program. An occurrence limit of $ 20.0 million for catastrophe losses is in effect on the quota share program, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of ceding commissions slide, within a prescribed minimum and maximum, depending on loss performance. The Net Quota Share program was renewed on December 31, 2021 ceding 50.0 % of the net premiums and losses and 5 % of the prior year quota share is in run off. Per Risk Coverage For losses arising from business underwritten by Heritage P&C and losses arising from commercial residential business underwritten by NBIC, excluding losses from named storms, the Company purchased property per risk coverage for losses and loss adjustment expenses in excess of $ 1.0 million per claim. The limit recovered for an individual loss is $ 9.0 million and total limit for all losses is $ 27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. For losses arising from commercial residential business underwritten by NBIC, the Company purchased property per risk coverage for losses and loss adjustments expenses in excess of $ 750,000 per claim. The limit recovered for an individual loss is $ 250,000 and total limit for all losses is $ 750,000 . There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance for losses in excess of $ 10.0 million for any properties it insured where the total insured value exceeded $ 10.0 million. This coverage applies to losses arising from business underwritten by Heritage P&C and losses arising commercial residential business underwritten by NBIC, excluding losses from named storms. General Excess of Loss The Company’s general excess of loss reinsurance protects business underwritten by NBIC and Zephyr multi-peril policies from single risk losses. For the contract period of July 1, 2021 through June 30, 2022, the coverage is in two layers in excess of the Company’s retention of the first $ 500,000 of loss. The first layer is $ 250,000 excess $ 500,000 for property and casualty losses and the second layer for property losses is $ 2.75 million excess $ 750,000 . The second layer for casualty losses is $ 1.25 million excess $ 750,000 . In addition, the Company purchased facultative reinsurance for losses underwritten by NBIC in excess of $ 3.5 million . For a discussion of 2020-2021 Reinsurance Program please Refer to Part II, Item 8, “Financial Statements and Supplementary Data” further “ Note 12. Reinsurance ” in our Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on March 9, 2021. Effect of Reinsurance The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statement of Income for the year ended December 31, 2021, 2020 and 2019: For the Year Ended December 31, 2021 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 1,164,879 $ 1,144,162 $ 625,748 Ceded ( 553,147 ) ( 533,091 ) ( 198,378 ) Net $ 611,732 $ 611,071 $ 427,370 For the Year Ended December 31, 2020 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 1,080,100 $ 996,842 $ 609,593 Ceded ( 473,836 ) ( 452,120 ) ( 236,206 ) Net $ 606,264 $ 544,722 $ 373,387 For the Year Ended December 31, 2019 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 937,937 $ 924,247 $ 696,289 Ceded ( 436,564 ) ( 445,534 ) ( 423,001 ) Net $ 501,373 $ 478,713 $ 273,288 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses | Note 13. Reserve For Unpaid Losses The Company determines the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. We estimate our IBNR reserves by projecting our ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses. The table below summarizes the activity related to the Company’s reserve for unpaid losses: For the Year Ended December 31, 2021 2020 2019 (in thousands) Balance, beginning of period $ 659,341 $ 613,533 $ 432,359 Less: reinsurance recoverable on unpaid losses 397,688 393,630 250,507 Net balance, beginning of period 261,653 219,903 181,852 Incurred related to: Current year 430,907 392,976 276,985 Prior years ( 3,537 ) ( 19,589 ) ( 3,696 ) Total incurred 427,370 373,387 273,289 Paid related to: Current year 247,903 228,394 137,764 Prior years 152,711 103,243 97,474 Total paid 400,614 331,637 235,238 Net balance, end of period 288,409 261,653 219,903 Plus: reinsurance recoverable on unpaid losses 301,757 397,688 393,630 Balance, end of period $ 590,166 $ 659,341 $ 613,533 The Company believes that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. The Company’s losses incurred for the years ended December 31, 2021, 2020 and 2019 reflect prior year favorable development of $ 3.5 million, $ 19.6 million and $ 3.7 million, respectively, associated with management’s best estimate of actuarial loss and LAE reserves with consideration given to Company specific historical loss experience. The following is information about incurred and paid claims development as of December 31, 2021, net of reinsurance, as well as cumulative claim payments and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts The information by accident year is presented as required supplementary information and are unaudited. Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (in thousands, except number of claims) Unaudited Accident year 2012 & 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net IBNR Reported 2012 & prior $ 102,723 $ 105,765 $ 107,842 $ 106,493 $ 106,331 $ 106,654 $ 106,446 $ 106,628 $ 106,437 $ 106,506 $ 22 53,356 2013 61,157 61,483 62,969 62,166 62,354 62,378 62,564 62,829 62,812 48 13,098 2014 118,991 114,899 113,847 114,984 115,838 115,234 115,409 115,708 321 18,493 2015 179,255 197,744 203,792 205,164 206,011 205,437 204,961 1,154 26,120 2016 237,207 242,611 250,990 250,235 250,067 250,482 3,226 27,606 2017 189,163 195,240 192,749 194,618 195,602 3,226 73,260 2018 199,565 193,672 192,474 198,064 2,688 34,281 2019 258,876 231,545 228,419 12,599 26,007 2020 370,058 364,380 36,620 34,948 2021 388,949 144,245 — Total $ 2,115,883 $ 204,149 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited Accident year 2012 & 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 & prior $ 92,909 $ 101,323 $ 102,750 $ 104,093 $ 104,362 $ 105,053 $ 105,875 $ 106,475 $ 106,689 $ 106,747 2013 35,771 50,716 55,589 57,647 59,395 60,581 61,191 62,235 62,337 2014 68,732 95,076 101,456 108,509 112,518 113,609 113,975 114,898 2015 103,918 162,654 181,672 192,967 197,524 199,600 201,495 2016 132,679 211,512 233,540 238,868 241,875 244,820 2017 103,148 169,743 178,622 184,313 188,928 2018 84,552 152,592 170,301 187,386 2019 124,664 185,667 205,442 2020 210,548 313,811 2021 213,830 Total $ 1,839,694 Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance $ 276,197 Reinsurance recoverable on unpaid losses 301,757 Unpaid Unallocated Loss Adjustment Expense 12,212 Unpaid losses and loss adjustment expenses $ 590,166 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance as of December 31, 2021 (Unaudited) Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Thereafter Percentage 56 % 29 % 6 % 9 % 0 % 0 % |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 14. Long-Term Debt Convertible Senior Notes In August 2017 and September 2017, the Company issued in aggregate $ 136.8 million of 5.875 % Convertible Senior Notes (“Convertible Notes”) maturing on August 1, 2037 , unless earlier repurchased, redeemed or converted. Interest is payable semi-annually in arrears, on February 1 and August 1 of each year. Holders may convert their Convertible Notes at any time prior to the close of business on the business day immediately preceding February 1, 2037. On or after August 5, 2022 but prior to February 1, 2037, the Company may redeem for cash all or any portion of the Convertible Notes, at the Company’s option, at a redemption price equal to 100 % of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Holders of the Convertible Notes will be able to cause the Company to repurchase their Convertible Notes for cash on any of August 1, 2022, August 1, 2027 and Aug ust 1, 2032, in each case at 100 % of their principal amount, plus accrued unpaid interest to, but excluding, the relevant repurchase date. A s of December 31, 2021, the Company had $ 22.9 million of the Convertible Notes outstanding, net of issuance and debt discount costs in aggregate of approximately $ 506,000 and net of $ 21.1 million of Convertible Notes held by an insurance company subsidiary. For the year ended December 31, 2021, the Company made interest payments, net of affiliated Convertible Notes of approximately $ 1.4 million, on the outstanding Convertible Notes. At December 31, 2020, the Company had $ 22.1 million of the Convertible Notes outstanding, net of issuance and debt discount costs in aggregate of approximately $ 1.3 million and net of $ 21.1 million of Convertible Notes held by an insurance company subsidiary. For the year ended December 31, 2020, the Company made interest payments, net of affiliated Convertible Notes of approximately $ 1.4 million, on the outstanding Convertible Notes. As of December 31, 2019, the Company had $ 21.3 million of the Convertible Notes outstanding, net of debt issuance and debt discount costs which totaled approximately $ 2.1 million and net of $ 21.1 million of Convertible Notes held by an insurance company subsidiary. For the year ended December 31, 2019, the Company made interest payments, net of affiliated Convertible Notes of approximately $ 1.5 million on the Convertible Notes. Debt Extinguishment The Company reacquired convertible senior notes over a series of transactions in 2019, 2018 and 2017. In accordance with ASC 470 “ Debt ”, the Company evaluated the accounting treatment to determine if the repurchase of the Convertible Notes constituted a debt extinguishment. ASC 405-20-40-1 provides implementation guidance in order to determine if the Company is legally released from being the primary obligor under the liability, either judicially or by the creditor. Based on the reacquisition of the Convertible Notes, the Company should derecognize the related debt and conversion option liability. Upon extinguishment, the Company performed a discounted cash flow (“DCF”) analysis for each transaction based on its date and principal amount, leveraging market debt yield data as of each trade date to estimate the costs of the debt. On February 19, 2019, the Company reacquired $ 5.8 million of its outstanding Convertible Notes, payment was made in cash of approximately $ 2.9 million and issuance of 285,201 shares of the Company’s common stock valued at $ 4.2 million. The repurchase resulted in a $ 48,000 non-operating loss. For 2019 debt repurchases, the Company removed the respective net debt amount and the related portion of the derivative that was included in shareholders’ equity. The extinguishment of debt was measured at the then-current fair value at the time of purchase, with any difference recorded as a gain or loss on the extinguishment. In accordance with the purchase agreement governing the Company’s offer and sale of convertible debt, the Company or its affiliates are prohibited from reselling the notes once acquired. The repurchased Convertible Notes hold no registration rights. Mortgage Loan In October 2017, the Company and its subsidiary, Skye Lane Properties LLC, jointly obtained a commercial real estate mortgage loan in the amount of $ 12.7 million, bearing interest of 4.95 % per annum and maturing on October 30, 2027 . On October 30, 2022, the interest rate shall adjust to an interest rate equal to the annualized interest rate of the United States 5-year Treasury Notes as reported by Federal Reserve on a weekly average basis plus 3.10 %. The Company makes monthly principal and interest payments against the loan. For each of the respective years ended December 31, 2021 and 2020, the Company made principal and interest payments of $ 892,850 on the mortgage loan. Senior Secured Credit Facility The Company is party to a five-year , $ 125.0 million credit agreement (as amended from time to time, the “Credit Agreement”) with a syndicate of lenders consisting of $ 75.0 million senior secured term loan facility (the “Term Loan Facility”) and a $ 50.0 million senior secured revolving credit facility (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). The Credit Agreement, as amended, provides for (1) a five-year senior secured term loan facility in an aggregate principal amount of $ 75 m illion (the “Term Loan Facility”) and (2) a five-year senior secured revolving credit facility in an aggregate principal amount of $ 75 million (inclusive of a $ 5 million sublimit for the issuance of letters of credit and a $ 10 million sublimit for swingline loans) (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). Term Loan Facility: The principal amount of the Term Loan Facility amortizes in quarterly installments, which began with the close of the fiscal quarter ending March 31, 2019, in an amount equal to $ 1.9 million per quarter, payable quarterly, decreasing to $ 875,000 per quarter commencing with the quarter ending December 31, 2021 and increasing to $ 1.3 million per quarter commencing with the quarter ending December 31, 2024, with the remaining balance payable at maturity. The Term Loan Facility matures on July 27, 2026 . As of December 31, 2021, there was $ 70.0 million in aggregate principal outstanding on the Term Loan Facility. On July 28, 2021, the principal amount of the term loan outstanding under the Term Loan Facility was increased by $ 13.75 million to a total of $ 70.0 million from $ 56.25 million prior to the advance. For the period January 1, 2021 to July 28, 2021, the Company made principal and interest payments of approximately $ 3.8 million and $ 1.2 million, respectively against the Term Loan Facility. For the period July 29, 2021 to December 31, 2021, the Company made principal and interest payments of approximately $ 875,000 and $ 846,270 million, respectively on Term Loan Facility, as amended. For the year ended December 31, 2020, the Company made interest payments of approximately $ 2.6 million on the term loan. Revolving Credit Facility : The Revolving Credit Facility allows for borrowings of up to $ 75 million inclusive of a $ 5 million sublimit for the issuance of letters of credit and a $ 10 million sublimit for swingline loans. As of December 31, 2021, and December 31, 2020, we had no borrowings and no letters of credit outstanding under the Revolving Credit Facility. For the years ended December 31, 2021 and 2020, the Company made interest payments of $ 196,500 and $ 403,000 under the Revolving Credit Facility, respectively. At our option, borrowings under the Credit Facilities bear interest at rates equal to either (1) a rate determined by reference to LIBOR (based on one, two, three or six-month interest periods), adjusted for statutory reserve requirements, plus an applicable margin or (2) a base rate determined by reference to the greatest of (a) the “prime rate” of Regions Bank, (b) the federal funds rate plus 0.50 %, and (c) the LIBOR index rate applicable for an interest period of one month plus 1.00 %, plus an applicable margin. At December 31, 2021, the effective interest rate on for the Term Loan Credit Facility was 2.9375 %. The Company monitors the rates prior to the reset date which allows it to establish if the payment is monthly or quarterly payment based on the most beneficial rate used to calculate the interest payment. On March 31, 2021, the Company closed the July 1, 2020 standby letter of credit in the amount of $ 31.5 million that was issued by Regions Bank. On June 1, 2020, the Company amended the Credit Agreement by entering into the Third Amendment to Credit Agreement (the “Third Amendment”) with the lenders from time to time party to the Credit Agreement, and Regions Bank, as administrative agent and collateral agent. The Third Amendment modified the Credit Agreement to increase the letter of credit sublimit from $ 5 million to $ 40 million and to make related modifications to certain of the negative covenants in the Credit Agreement. On April 27, 2020, the Company amended the Credit Agreement by entering into the Second Amendment to Credit Agreement (the “Second Amendment”) with the lenders from time to time party to the Credit Agreement, and Regions Bank, as administrative agent and collateral agent. The Second Amendment modified the negative covenants in the Credit Agreement to permit the Company to make acquisitions and investments if, after giving effect to the acquisition or investment, either (1) the Company has an aggregate of $ 25.0 million in cash and availability under the revolving credit facility or (2) the consolidated leverage ratio under the Credit Agreement is at least a quarter turn less than the required ratio for the trailing four quarters. The amendment gives the Company more flexibility to make acquisitions and investments in the future. All other material terms of the Credit Agreement remain unchanged. FHLB Loan Agreements In December 2018, a subsidiary of the Company received a fixed interest rate 3.094 % cash loan of $ 19.2 million from the Federal Home Loan Bank (“FHLB”) Atlanta, with a maturity date of December 13, 2023 . In connection with the agreement, the subsidiary became a member of FHLB. Membership in the FHLB required an investment in FHLB’s common stock which was purchased in December 2018 and valued at $ 1.4 million. Additionally, the transaction required securities be pledged as collateral. As of December 31, 2021, the fair value of the collateralized securities was $ 22.5 million and the equity investment in FHLB common stock was $ 1.4 million. As of December 31, 2021 and 2020, the Company made quarterly interest payments of approximately $ 601,000 and $ 604,000 per the terms of the agreement, respectively. As of December 31, 2021, and December 31, 2020, the Company also holds other common stock from FHLB Des Moines, and FHLB Boston carried at $ 215,900 and $ 222,900 , respectively. The following table summarizes the Company’s long-term debt: December 31, 2021 December 31, 2020 (in thousands) Convertible debt $ 23,413 $ 23,413 Mortgage loan 11,521 11,827 Credit loan facility 69,125 60,000 Revolving credit facility — 10,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 123,259 $ 124,440 Deferred finance costs $ 2,502 $ 3,442 Total long-term debt $ 120,757 $ 120,998 As of the date of this report, we were in compliance with the applicable terms of all our covenants and other requirements under the Revolving agreement, Term Note, Convertible Debt, cash borrowings and other loans. Our ability to secure future debt financing depend, in part, on our ability to remain in such compliance. As long as there is no default or an event of default exist, we are allowed to payout dividends in an aggregate amount not to exceed $ 10.0 million in any fiscal year. The covenants and other requirements under the revolving agreement represent the most restrictive provisions that we are subject to with respect to our long-term debt. The schedule of principal payments on long-term debt is as follows: December 31, Amount 2022 $ 3,822 2023 23,039 2024 4,292 2025 5,624 2026 53,331 Thereafter 33,151 Total principal payments $ 123,259 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes The following table summarizes the provision for income taxes: For the Year Ended December 31, 2021 2020 2019 (in thousands) Federal: Current $ 3,015 $ ( 14,863 ) $ 9,674 Deferred ( 5,872 ) 6,859 584 (Benefit)/provision for Federal income tax ( 2,857 ) ( 8,004 ) 10,258 State: Current 1,634 1,501 1,785 Deferred ( 84 ) ( 610 ) 317 Provision for State income tax expense 1,550 891 2,102 (Benefit)/provision for income taxes $ ( 1,307 ) $ ( 7,113 ) $ 12,360 The income tax (benefit) expense differs from the amounts computed by applying the U.S. federal income tax rate of as indicated below to pretax income as a result of the following (in thousands): For the Year Ended December 31, 2021 2020 2019 Expected income tax expense at federal rate 21.0 % 21.0 % 21.0 % State tax expense ( 1.0 )% 25.9 % 3.6 % Permanent items ( 0.5 )% 16.0 % 0.9 % Goodwill impairment ( 16.7 )% — — Non-deductible stock compensation ( 0.2 )% 22.4 % ( 0.4 )% Tax exempt interest 0.1 % ( 18.4 )% ( 1.6 )% Executive compensation 162(m) ( 0.2 )% 20.3 % 6.1 % Political contributions ( 0.2 )% 6.2 % 0.3 % Tax rate change ( 0.5 )% ( 409.1 )% 0.6 % Other 0.0 % ( 5.6 )% ( 0.4 )% Reported income tax expense 1.7 % ( 321.3 )% 30.1 % The effective tax rates for 2021, 2020 and 2019 were affected by various permanent tax differences, including disallowed executive compensation deductions which were further limited in 2017 and future years upon the enactment of H.R.1, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The effective tax rate for 2020 benefitted from a tax rate change related to a carryback of a tax net operating loss, which was carried back five years under The CARES Act. The effective tax rate can fluctuate throughout the year as estimates used in the tax provision for each quarter are updated as more information becomes available throughout the year. On March 27, 2020, former President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. The CARES Act amended the law for net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021. Net operating losses generated by a corporation during these taxable years are allowed a five-year carryback period. As the Company had a 2020 tax net operating loss, the Company’s 2020 rate reconciliation reflects the favorable $ 7.1 million tax benefit from carrying back tax losses to years for which the statutory rate was 35%. The significant components of deferred tax assets and liabilities included in the consolidated balance sheets as December 31 were as follows: For the Year Ended December 31, 2021 2020 Deferred tax assets: (in thousands) Unearned premiums $ 15,805 $ 15,303 Unearned commission 9,459 9,272 Net operating loss 1,222 1,885 Tax-related discount on loss reserve 3,872 3,322 Stock-based compensation 84 113 Accrued expenses 1,182 982 Leases 792 394 Unrealized losses 1,913 — Other 472 343 Total deferred tax asset 34,801 31,614 Deferred tax liabilities: Deferred acquisition costs $ 21,977 $ 20,694 Prepaid expenses 177 236 Unrealized gain — 1,814 Property and equipment 1,504 1,669 Note discount 187 326 Basis in purchased investments 34 53 Basis in purchased intangibles 14,550 15,693 Internal revenue code 481(a) 4,416 8,577 Other 1,382 1,029 Total deferred tax liabilities 44,227 50,091 Net deferred tax liability $ ( 9,426 ) $ ( 18,477 ) The Company had no capital loss carryforward as of December 31, 2021. In assessing the net carrying amount of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. We had non-deductible goodwill of $ 87.3 million and $ 144.4 million for the years ended December 31, 2021 and 2020, respectively. Of the goodwill that may be amortized for income tax purposes, the remaining tax basis to amortize is $ 4.4 million for the year ended December 31, 2021 and $ 4.9 million for the year ended December 31, 2020. The statute of limitations related to our federal and state income tax returns remains open from our filings for 2018 through 2020. For the 2014 tax year, the federal income tax return was examined by the tax authority resulting in no material adjustments. In April 2019, the Company was notified by the tax authority that the federal income tax returns for the years 2015, 2016 and 2017 would be examined. In August 2020, the Company received a notice from the tax authority for the examined tax years, reporting that the returns were accepted as final. No further action will be required and no other tax years are under examination. Our reinsurance affiliate, Osprey Re, Ltd., which is based in Bermuda, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiary is subject to United States income tax as if it were a U.S. corporation. As of December 31, 2021, the Company had no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Statutory Accounting and Regulations | Note 16. Statutory Accounting and Regulations State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital; restrict insurers’ ability to pay dividends; restrict the allowable investment types and investment mixes and subject the Company’s insurers to assessments. The Company’s insurance subsidiaries are required to file with state insurance regulatory authorities an “Annual Statement” which report under the statutory-basis of accounting which differs from GAAP, among other items, net income and surplus as regards policyholders, which is called stockholder’s equity under GAAP. Combined results of the Company’s insurance subsidiaries reported statutory-basis net loss of $ 38.3 million a nd $ 24.3 million for the years ended December 31, 2021 and 2020, respectively. The Company’s insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. Heritage P&C is required to maintain statutory-basis capital and surplus equal to the greater of $ 15 million or 10 % of their respective liabilities. Zephyr is required to maintain a deposit of $ 750,000 in a federally insured financial institution. NBIC is required to maintain statutory-basis capital and surplus of $ 3.0 million. The combined statutory surplus for Heritage P&C, NBIC, and Zephyr w as $ 302.1 million at December 31, 2021. The combined statutory-basis surplus for Heritage P&C, NBIC, and Zephyr was $ 333.3 million at December 31, 2020. State laws also require the Company’s insurance subsidiaries to adhere to prescribed premium-to-capital surplus ratios, with which the Company’s insurance affiliates are complying. At December 31, 2021, our insurance subsidiaries met the financial and regulatory requirements of the states in which they do business. The legislatures of the states of domicile of our insurance affiliates have adopted the National Association of Insurance Commissioners (“NAIC”) recommendations with regard to expansion of the regulation of insurers to include non-insurance entity affiliates. Specifically, the new law permits the state insurance regulators to examine affiliated entities within an insurance holding company system in order to ascertain the financial condition of the insurer. The law also provides for certain disclosures regarding enterprise risk, which are satisfied by the provision of related information filed with the SEC. The NAIC published risk-based capital guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory-basis surplus provides for policy holders. Most states, including Florida, Hawaii, and Rhode Island, have enacted the NAIC guidelines as statutory requirements, and insurers having less statutory-basis surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital. State laws for Florida, Hawaii, and Rhode Island permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The applicable laws pertain to the state of domicile of each insurance company affiliate and provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authority and the amount of dividends or distributions that would require prior approval of the insurance regulatory authority. In the state of Florida, a dividend may be taken without regulatory approval if the dividend is equal to or less than the greater of 10 % of the insurer’s surplus or the insurer’s net income. In the state of Rhode Island, a dividend may be taken without regulatory approval if the dividend is equal to or less than the lesser of 10 % of the insurer’s surplus or the insurer’s net income excluding realized capital gains. The state of Hawaii restricts dividends without regulatory approval to the smaller of prior years’ net income or 10 % of prior year’s surplus. Heritage P&C and NBIC have no t paid dividends in any of the last three years. Zephyr paid dividends of $ 6.8 mil lion and $ 13.7 million for the years ended December 31, 2021 and 2020. Statutory risk-based capital requirements may further restrict our insurance subsidiaries ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory-basis surplus to fall below minimum risk-based capital requirements. State insurance laws limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. The Company’s insurance affiliates were in compliance with all investment restrictions at December 31, 2021 and 2020. Governmental agencies or certain quasi-governmental entities can levy assessments upon the Company in the states in which the Company writes policies. Refer to Note 1 “ Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices” to our consolidated statements included in this Annual report on Form 10-K, for further information for a description of how the Company recovers assessments imposed upon it. Governmental agencies or certain quasi-governmental entities can also levy assessments upon policyholders, and the Company collects the amount of the assessments from policyholders as surcharges for the benefit of the assessing agency. There are currently no assessments to be collected from policyholders and remitted to any governmental or quasi-governmental entities. If an assessment becomes levied the Company would multiply the premium written on each policy by these assessment percentages to determine the additional amount that it will collect from the policyholder and remit to the assessing agencies. The Company reported its insurance subsidiaries’ assets, liabilities and results of operations in accordance with GAAP, which varies from statutory-basis accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The Company’s reinsurance subsidiary, Osprey, which was incorporated on April 23, 2013 , is licensed as a Class 3A Insurer under The Bermuda Insurance Act 1978 and related regulations. Osprey is required to meet and maintain certain minimum levels of solvency and liquidity. Each year Osprey is required to file with the Bermuda Monetary Authority (the “Authority”) a Capital and Solvency Return, Statutory Financial Return and Audited Financial Statements within four months of its relevant financial year end. Osprey maintains sufficient collateral to comply with regulatory requirements as of December 31, 2021. Bermuda’s standard for financial statement reporting is U.S. GAAP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17. Commitments and Contingencies The Company is involved in claims-related legal actions arising in the ordinary course of business. The Company accrues amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that it determines an unfavorable outcome becomes probable and it can estimate the amounts. Management makes revisions to its estimates based on its analysis of subsequent information that the Company receives regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation. |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | Note 18. Accounts Payable and Other Liabilities Other liabilities consist of the following as of December 31, 2021 and 2020: Description December 31, 2021 December 31, 2020 (in thousands) Deferred ceding commission 40,406 $ 39,995 Outstanding claim checks — 10,864 Accounts payable and other payables 10,086 9,248 Accrued dividends 1,634 1,670 Accrued interest and issuance costs 735 833 Other liabilities 195 80 Premium tax 871 — Commission payables 17,598 18,245 Total other liabilities $ 71,525 $ 80,935 |
Accrued Bonus Compensation
Accrued Bonus Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Compensation Related Costs [Abstract] | |
Accrued Bonus Compensation | Note 19. Accrued Bonus Compensation At December 31, 2021, the Company recognized bonus compensation expense of $ 3.4 million, of which $ 3.0 million was unpaid. At December 31, 2020, the Company recognized employee bonus compensation expense in aggregate of $ 6.4 million, of which $ 2.1 million related to the consolidated severance payment due, as disclosed in Part IV, Item 6. Exhibit 10.5 Separation agreement dated December 1, 2020, and of which $ 2.9 million was unpai d as of December 31, 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20. Related Party Transactions In July 2020, the Board of Directors appointed Mark Berset to the Board of Directors of the Company. Mr. Berset is also the Chief Executive Officer of Comegys Insurance Agency, Inc. (“Comegys”), an independent insurance agency that writes policies for Company. The Company pays commission to Comegys based upon standard industry rates consistent with those provided to the Company’s other insurance agencies. There are no arrangements or understandings between Mr. Berset and any other persons with respect to his appointment as a director. For the years ended December 31, 2021 and 2020, the Company paid agency commission to Comegys of approximately $ 843,180 and $ 1.0 million, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 21. Employee Benefit Plan . The Company provides a 401(k) plan for substantially all employees. The Company provides a matching contribution of 100 % on the first 3% of employees’ contribution and 50 % on the next 2% of the employees’ contribution to the plan. The maximum match is 4 %. For the years ended December 31, 2021 and 2020, the contributions made to the plan on behalf of the participating employees were approximately $ 1.3 million and $ 1.2 million, respectively. Effective September 1, 2021, the Company terminated its self-insured healthcare plan and enrolled in a flex healthcare plan which allows employees the choice of three medical plans with a range of coverage levels and costs. For the years ended December 31, 2021 and 2020, the Company incurred medical premium costs of $ 3.5 million and $ 4.1 million, respectively. An additional liability from the Company's legacy self-insured healthcare plan was accrued for approximately $ 422,800 and $ 1.4 million for unpaid claims as of December 31, 2021 and December 31, 2020, respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Note 22. Equity The total amount of authorized capital stock consists of 50,000,000 shares of common stock and 5,000,000 shares of preferred stock. As of December 31, 2021, the Company had 26,753,511 shares of common stock outstanding, 10,536,737 , treasury shares of common stock and 283,092 shares of unvested restricted common stock issued reflecting total paid-in capital of $ 332.8 million as of such date. Common Stock Holders of common stock are entitled to one vote for each share held on all matters subject to a vote of stockholders, subject to the rights of holders of any outstanding preferred stock. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election, subject to the rights of holders of any outstanding preferred stock. Holders of common stock will be entitled to receive ratably any dividends that the board of directors may declare out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred stock. Upon the Company’s liquidation, dissolution or winding up, the holders of common stock will be entitled to receive ratably its net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There is no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock (excluding restricted stock) are fully paid and nonassessable. Stock Repurchase Program On August 1, 2019, the Company announced that its Board of Directors ratified a stock repurchase program authorizing the Company to repurchase up to $ 50.0 million of its common stock which had expired on December 31, 2020 . As of December 31, 2020, the Company repurchased in aggregate 2,065,042 shares of its common stock since authorizing the stock repurchase program for $ 26.2 million. On November 2, 2020, the Board of Directors extended the Company’s existing share repurchase program from December 31, 2020 to December 31, 2021 and increased the authorization under the program from the $ 23.8 million remaining to $ 50.0 million, which repurchases may be made under the Company’s current Rule 10b5-1 trading plan, which allows the Company to purchase shares below a predetermined price per share, or otherwise. As of December 31, 2021, the Company repurchased in aggregate 1,256,898 shares of its common stock under its repurchase program for $ 8.2 million. The stock purchase program expired on December 31, 2021 . On December 19, 2021, the Board of Directors established a new share repurchase program plan to commence upon December 31, 2021, for the purpose or repurchasing up to an aggregate of $ 25.0 million of Common Stock, through the open market or in such other manner as will comply with the terms of applicable federal and state securities laws and regulations, including without limitation, Rule 10b-18 under the Securities Act at any time or from time to time on or prior to December 31, 2022 (the "New Share Repurchase Plan"). Dividends The declaration and payment of any future dividends will be subject to the discretion of the Board of Directors and will depend on a variety of factors including the Company’s financial condition and results of operations. Dividends For the year ended December 31, 2021, we recorded quarterly cash dividends totaling approximately $ 6.7 million as follows: Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Cash dividend per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 Total cash dividends paid $ 1,670,032 $ 1,677,911 $ 1,680,432 $ 1,680,149 Record date December 15, 2020 March 15, 2021 June 15, 2021 September 15, 2021 Payment date January 15, 2021 April 6, 2021 July 6, 2021 October 6, 2021 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 23. Stock-Based Compensation Common Stock The Company has adopted the Heritage Insurance Holdings, Inc., Omnibus Incentive Plan (the “Plan”) effective on May 22, 2014. The Plan authorized 2,981,737 shares of common stock for issuance under the Plan for future grants. At December 31, 2021, there were 870,733 shares available for grant under the Plan. The Company recognizes compensation expense under ASC 718 for its stock-based payments based on the fair value of the awards. During the quarter ended March 31, 2021, the Company issued to its Chief Executive Officer 95,878 shares of performance-based restricted stock with a fair value at the time of grant of $ 10.43 per share. The performance-based restricted stock has a three-year performance period beginning on January 1, 2021 and ending on December 31, 2023 and will vest following the end of the performance period but no later than March 5, 2024. The number of shares that will be earned at the end of the performance period is subject to decrease based on the results of the performance condition. In addition, the Company issued this executive 47,939 shares of time-based restricted stock with a market value at the time of grant of $ 10.43 per share. The time-based restricted stock will vest in three equal installments of 15,979 on December 27, 2021, and 15,980 on December 27, 2022 and 2023, respectively. During the second quarter ended June 30, 2021, the Company issued to its Chief Financial Officer 28,012 shares of performance-based restricted stock with a fair value at the time of grant of $ 10.71 per share. The performance-based restricted stock has a three-year performance period beginning on January 1, 2021 and ending December 31, 2023 and will vest following the end of the performance period but no later than March 5, 2024. The number of shares that will be earned at the end of the performance period is subject to decrease based on the results of the performance condition. In addition, the Company issued this executive 14,006 shares of time-based restricted stock with a fair value at the time of grant of $ 10.71 per share. The time-based restricted stock will vest in three equal installments 4,668 on December 27, 2021 and 4,669 on December 27, 2022 and 2023, respectively. During the fourth quarter ended December 31, 2021, the Company issued to certain executives in aggregate 18,159 shares of restricted stock with a grant date fair value of $ 6.89 per share. Each of the restricted stock grants vest in three equal installments on December 27, 2021, 2022 and 2023. The Company also awarded 50,799 shares of performance-based restricted stock with a fair value at the time of grant of $ 6.89 per share. The performance-based restricted stock has a three-year performance period beginning on January 1 , 2021 and ending on December 31, 2023 and will vest following the end of the performance period but no later than March 5, 2024. The number of shares that will be earned at the end of the performance period is subject to decrease based on the results of the performance condition. In 2020, the Company awarded 10,000 and 5,000 shares of restricted stock with at the time of grant a fair value of $ 10.60 per share and $ 10.83 per share, respectively. The 2020 restricted stock grants vest over a 2 year and 12 month , period commencing from the date of grant, respectively. No restricted stock was granted during the year ended December 31, 2019. The Plan authorizes the Company to grant stock options at exercise prices equal to the fair market value of the Company’s stock on the dates the options are granted. Any options granted would typically have a maximum term of ten years from the date of grant and vest primarily in equal annual installments over a range of one to five-year periods following the date of grant for employee options. The Company has not granted any stock options since 2015 and all unexercised stock options have since been forfeited. Restricted Stock The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employee’s vest in equal installments generally over a three to five year period from the grant date subject to the recipient’s continued employment. The fair value of restricted stock awards is estimated by the market price at the date of grant and amortized on a straight-line basis to expense over the period of vesting. Recipients of restricted stock awards granted prior to 2021 have the right to receive dividends; dividends accrue but are not paid until vesting for recipients of restricted stock awards granted 2021 and thereafter. Restricted stock activity for the three years ended December 31, 2021, 2020 and 2019 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested ( 22,647 ) 14.28 Canceled and surrendered ( 237,620 ) 14.82 Non-vested, at December 31, 2019 345,534 $ 19.56 Granted 15,000 10.68 Vested ( 13,044 ) 13.17 Canceled and surrendered ( 247,223 ) 9.49 Non-vested, at December 31, 2020 100,267 $ 15.37 Granted - Performance-based restricted stock 174,689 9.45 Granted - Time-based restricted stock 80,104 9.68 Vested ( 43,711 ) 9.61 Canceled and surrendered ( 28,257 ) 10.69 Non-vested, at December 31, 2021 283,092 $ 9.32 Awards are being amortized to expense over a one to five year vesting period. The Company recognized $ 1.2 million, $ 4.7 million and $ 5.4 million of compensation expense for the years ended December 31, 2021, 2020 and 2019, respectively. During the year ended December 31, 2021, the Company granted in aggregate 254,793 shares of time-based and performance-based restricted stock. During the year ended December 31, 2021, 71,968 shares of restricted stock were vested and released. Of the stock released to employees, 28,257 shares were withheld to cover withholding taxes of $ 231,000 . During the year ended December 31, 2020, 260,267 shares of restricted stock were vested and released. Of the stock released to employees, 247,223 shares were withheld by the Company to cover withholding taxes of $ 2.4 million. During 2019, 237,620 shares were withheld to cover withholding taxes of $ 3.5 million arising from the vesting of restricted stock. We recognized no tax benefit from the restricted stock awards and related paid dividends for the years 2021, 2020 and 2019, respectively. At December 31, 2021, there was approximately $ 1.0 million unrecognized expense related to time-based unvested restricted stock and an additional $ 1.0 million for performance-based restricted stock, which is expected to be recognized over the remaining restriction periods as described in the table below. For the comparable period in 2020, there was $ 1.1 million of unrecognized expense. Additional information regarding our outstanding unvested restricted stock at December 31, 2021 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) February 12, 2018 50,000 16.35 1.00 April 24, 2020 5,000 10.60 0.25 January 4, 2021 127,837 10.43 2.00 April 13, 2021 37,349 10.71 2.00 October 18, 2021 62,906 6.89 2.00 283,092 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Note 24. Selected Quarterly Financial Data (unaudited) The following table provides a summary of unaudited quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 142,199 $ 146,499 $ 162,445 $ 159,928 Investment income $ 1,293 $ 956 $ 1,548 $ 1,855 Total revenues $ 147,243 $ 150,197 $ 167,408 $ 166,712 Total operating expenses (1) $ 153,075 $ 154,187 $ 182,785 $ 209,578 Operating (loss) income $ ( 5,832 ) $ ( 3,990 ) $ ( 15,377 ) $ ( 42,865 ) Net (loss) income $ ( 5,148 ) $ ( 3,950 ) $ ( 16,410 ) $ ( 49,218 ) Basic net (loss) income per share $ ( 0.19 ) $ ( 0.14 ) $ ( 0.59 ) $ ( 1.79 ) Diluted net (loss) income per share $ ( 0.19 ) $ ( 0.14 ) $ ( 0.59 ) $ ( 1.79 ) For the year ended December 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 126,006 $ 129,057 $ 138,230 $ 151,430 Investment income $ 3,670 $ 3,296 $ 2,817 $ 2,519 Total revenues $ 132,706 $ 136,012 $ 165,119 $ 159,548 Total operating expenses $ 119,946 $ 129,049 $ 169,601 $ 164,604 Operating income (loss) $ 12,760 $ 6,963 $ ( 4,482 ) $ ( 5,056 ) Net income (loss) $ 7,620 $ 4,132 $ ( 5,233 ) $ 2,808 Basic net income (loss) per share $ 0.27 $ 0.15 $ ( 0.19 ) $ 0.10 Diluted net income (loss) per share $ 0.27 $ 0.15 $ ( 0.19 ) $ 0.10 The sum of quarterly amounts, including per share amounts, may not equal amounts reported for year-to-date periods. This is due to the effects of rounding and changes in the number of weighted-average shares outstanding for each period. (1) The fourth quarter results include a $ 60.5 million impairment of goodwill. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 25. Subsequent Events On March 4, 2022, the Company announced that its Board of Directors declared a $ 0.06 per share quarterly dividend payable on April 6, 2022 to stockholders of record as of March 17, 2022 . In January 2022, the Company reacquired $ 11.7 million of its outstanding Convertible Senior Notes. Payment was made in cash. The Convertible Notes were retired at the time of repurchase. In January 2022, the Company withdrew $ 15 million from the Revolving Credit Facility to reacquire a part of the outstanding Convertible Senior Notes. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Financial Information of Registrant | SCHEDULE II – CONDENSED FINAN CIAL INFORMATION OF REGISTRANT Condensed Balance Sheet The following summarizes the major categorizes of Heritage Insurance Holdings, Inc.’s financial statements (in thousands): As of December 31, 2021 2020 (in thousands) ASSETS Cash and cash equivalents $ 6,404 $ 5,865 Investment in and advances to subsidiaries 484,096 574,548 Other assets 4,728 4,944 Total Assets $ 495,227 $ 585,357 LIABILITIES Other liabilities $ 152,177 $ 143,013 Total Liabilities $ 152,177 $ 143,013 STOCKHOLDERS' EQUITY Common stock $ 3 $ 3 Paid-in-capital 332,797 331,867 Treasury ( 123,557 ) ( 115,365 ) Accumulated other comprehensive income ( 4,573 ) 6,057 Retained earnings 138,381 219,782 Total Stockholders' Equity $ 343,051 $ 442,344 Total Liabilities and Stockholders' Equity $ 495,227 $ 585,357 Condensed Statement of Operations For the Years Ended December 31, 2021 2020 2019 (In thousands, except share and per share amounts) Revenue: Other revenue $ 1,511 $ 5,717 $ 6,180 Total revenue 1,511 5,717 6,180 Expenses: General and administrative expense 10,498 13,021 11,699 Amortization of debt issuance cost 2,500 2,128 2,190 Interest expense, net 5,895 7,769 7,609 Other non-operating expense, net — — 48 Total expenses $ 18,893 $ 22,918 $ 21,546 Loss before income taxes and equity in net income of subsidiaries ( 17,382 ) ( 17,201 ) ( 15,366 ) Benefit from income taxes ( 3,526 ) ( 3,425 ) ( 511 ) Loss before equity in net income of subsidiaries ( 13,856 ) ( 13,776 ) ( 14,855 ) Equity in net income of subsidiaries ( 60,871 ) 23,102 43,491 Consolidated net (loss) income $ ( 74,727 ) $ 9,326 $ 28,636 See notes to condensed financial statements. SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Statement of Cash Flows For the Years Ended December 31, Cash flows from operating activities: 2021 2020 2019 (in thousands) Net loss $ ( 13,856 ) $ ( 13,776 ) $ ( 14,855 ) Adjustments to reconcile net loss to net cash provided by (used in) operating Stock-based compensation 1,161 4,683 5,379 Net realized gains — — 49 Amortization of debt issuance cost 1,657 — — Impairment on other investments 1,157 — — Deferred income taxes ( 69 ) ( 343 ) 334 Changes in operating assets and liabilities Prepaid 1,160 317 ( 659 ) Income taxes payable 10,764 ( 8,585 ) 351 Accrued interest on debt 306 400 444 Other assets ( 2,100 ) ( 2,448 ) 2,182 Dividends payable ( 36 ) ( 80 ) — Other liabilities ( 416 ) 460 ( 4,094 ) Net cash used in operating activities $ ( 271 ) $ ( 19,372 ) $ ( 10,869 ) Investing Activities: Dividends received from subsidiaries 41,138 47,256 70,590 Collection of principle note receivable — — 358 Investments and advances to subsidiaries ( 22,189 ) ( 5,872 ) ( 15,865 ) Net cash provided by investing activities 18,949 41,385 55,083 Financing Activities: Mortgage loan payments ( 613 ) ( 290 ) ( 277 ) Repurchase of convertible notes — — ( 2,869 ) Repayment of long-term debt ( 2,430 ) ( 9,375 ) ( 15,625 ) Shares tendered for income tax withholdings ( 231 ) ( 2,384 ) ( 3,521 ) Purchase of treasury stock ( 8,192 ) ( 9,997 ) ( 16,183 ) Dividends paid ( 6,673 ) ( 6,772 ) ( 6,959 ) Net cash used in financing activities ( 18,139 ) ( 28,818 ) ( 45,434 ) Increase (decrease) in cash and cash equivalents 539 ( 6,806 ) ( 1,221 ) Cash and cash equivalents, beginning of period 5,865 12,671 13,892 Cash and cash equivalents, end of year $ 6,404 $ 5,865 $ 12,671 See notes to condensed financial statements. SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Notes to Condensed Financial Statements (1) Organization and Basis of Presentation Heritage Insurance Holdings, Inc., (“we”, “our”, “us” and “Heritage Insurance”), established in 2012 and incorporated in the state of Delaware in 2014, is a property and casualty insurance holding company that provides personal and commercial residential property insurance. We are headquartered in Clearwater, Florida and, through our insurance company subsidiaries, Heritage Property & Casualty Insurance Company (“Heritage P&C”), Narragansett Bay Insurance Company (“NBIC”) and Zephyr Insurance Company (“Zephyr”), we write personal residential property insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia. We also provide commercial residential insurance for properties in Florida, New Jersey, and New York and are also licensed in the state of Pennsylvania. In order to limit our potential exposure to catastrophic events, we purchase significant reinsurance from third party reinsurers and may sponsor catastrophe bonds issued by Citrus Re. The accompanying condensed financial statements included the activity of Heritage Insurance and the equity basis of its consolidated subsidiaries. Accordingly, these condensed financial statements have been presented for the parent company only. These condensed financial statements should be read in conjunction with the consolidated financial statements and related notes of Heritage Insurance and subsidiaries set forth in Part II, Item 8 Financial Statements and Supplemental Data of this Annual Report. In applying the equity method to our consolidated subsidiaries, we record the investment at cost and subsequently adjust for additional capital contributions, distributions and proportionate share of earnings or losses. |
Schedule V - Valuation Allowanc
Schedule V - Valuation Allowances and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation Allowances and Qualifying Accounts | SCHEDULE V – VALUATION ALLOW ANCES AND QUALIFYING ACCOUNTS The following table summarizes activity in the Company’s allowance for doubtful accounts for the year ended December 31, 2021 and 2020. Description Beginning balance Charges in earnings Charges to other accounts Deductions Ending balance (in thousands) Year ended December 31, 2021 Allowance for doubtful accounts $ 451 — — — $ 451 Year ended December 31, 2020 Allowance for doubtful accounts $ 290 161 — — $ 451 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Causality Insurance Operations | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Supplemental Information Concerning Consolidated Property and Causality Insurance Operations | SCHEDULE VI – SUPPLEMENTAL INFORMATION CONCERNING CO NSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of For the Year Ended December 31, Year Reserves for Incurred Incurred Paid losses Net (in thousands) 2021 $ 590,166 $ 430,907 $ ( 3,537 ) $ 400,614 $ 5,652 2020 $ 659,341 $ 392,976 $ ( 19,589 ) $ 331,637 $ 12,302 2019 $ 613,533 $ 276,985 $ ( 3,696 ) $ 235,238 $ 14,432 As of For the Year Ended December 31, Year Deferred Amortization Net Premiums Net Premiums Unearned (in thousands) 2021 $ 93,881 $ 188,490 $ 611,732 $ 611,071 $ 590,419 2020 $ 89,265 $ 159,220 $ 606,264 $ 544,722 $ 569,618 2019 $ 77,211 $ 144,939 $ 501,373 $ 478,713 $ 486,220 |
Basis of Presentation, Nature_2
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. and its wholly-owned subsidiaries. The accompanying consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest (none of which are variable interest entities). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“U.S. GAAP”) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We evaluate our estimates on an ongoing basis when updated information related to such estimates becomes available. We base our estimates on historical experience and information available to us at the time these estimates are made. Actual results could differ materially from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash and cash equivalents include demand deposits with financial institutions and short-term, highly-liquid financial instruments with original maturities of three months or less when purchased. The carrying amounts reported in the consolidated balance sheets for interest bearing deposits approximate their fair value because of the short maturity of these financial instruments. To the extent there are negative cash balances with any individual financial institution, the Company excludes the negative amount from cash and cash equivalents neg ative cash balances and reports as accounts payable and other liabilities |
Restricted Cash | Restricted Cash Restricted cash related to individual state regulatory deposits, was $ 5.4 million for each of the respective years ended December 31, 2021 and 2020. The Company earned interest income of $ 11,918 and $ 33,400 on its restricted cash deposits. |
Investments | Investments Fixed-Maturity Securities The Company classifies all of its investments in debt securities as available-for-sale and reports them at fair value. Subsequent to its acquisition of debt securities available-for-sale, the Company records changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and includes them as a component of other comprehensive income. Refer to Note 2 “Investments” to our consolidated statements included in this Annual Report on Form 10-K, for further information. Short-term Securities Short-terms securities have an original maturity of less than one year and are carried at amortized cost, which approximates fair value. Accumulated Other Comprehensive Income Accumulated other comprehensive income consists solely of unrealized gains and losses on debt securities available-for-sale, net of tax. Investment Gains and Losses Net realized investment gains and losses are included as a component of pre-tax revenues based upon specific identification of the investments sold on the trade date. Included in net realized and unrealized gains (losses) are credit impairment losses on invested assets other than those investments accounted for using the equity method of accounting described in the “Allowance for Credit Losses” and “Impairment of Other Investments” section discussed below. Allowance for Credit Losses (Available-for-Sale-Debt Securities) The impairment model for available-for-sale (“AFS”) debt securities differs from the current expected credit loss (“CECL”) methodology applied for held to maturity debt securities because AFS debt securities are measured at fair value rather than amortized cost. Although ASC 326 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Under the new guidance, an entity may no longer consider the length of time fair value has been less than amortized cost. As of December 31, 2021 and 2020, management evaluated and determined a credit allowance was not significant to the financial statements. Other Investments Non-Consolidating Variable Interest Entities (“VIEs”) The Company makes passive investments in limited partnerships (“LPs”), corporations, and a Real Estate Investment Trust (“REIT”). The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which it has other variable interests is considered a variable interest entity ("VIE"). The Company consolidates VIEs when it is determined to be the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and has the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, it will account for the investment or other variable interests in a VIE in accordance with applicable GAAP. For the year ended December 31, 2021 and 2020, the Company was not the primary beneficiary to any of its other investments and therefore considered the other investments as non-consolidated VIEs. Equity securities that do not result in consolidation and are not accounted for under the equity method, are measured at fair value. Equity securities without a readily determinable fair value are reported at cost, less impairment, unless we identify observable price changes in orderly transactions for the identical or a similar investment of the same issuer (measurement alternative). Change in fair value are reflected in the Company’s consolidated statements of operations. Certain other investments provide the Company with monthly or quarterly return on capital on a regular schedule. Impairment of Other Investments The Company maintains various interests in other investments which are without a readily determinable fair value and are measured at cost less impairment for observable changes in price or impairments or at net asset value. The Company reviews these investments each reporting period to determine whether an impairment or observable price change for the investment has occurred. When such events or changes occur, the Company evaluates the fair value compared to its cost basis in the investment. Gains or losses from a change in fair value are included in net realized gains and unrealized gains and losses in the Company’s consolidated statement of operations. For the year ended December 31, 2021, the Company recorded impairment charges totaling $ 2.2 million on its other investments compared to having no impairment in 2020. |
Fair Value | Fair Value Major categories of financial assets and liabilities, including short-term investments, other assets and derivatives are measured at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis when impaired, which include long-lived assets, goodwill, asset retirement obligations and other investments that the Company cannot significantly influence. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the principal or most advantageous market in which we would transact is analyzed. Assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance, are considered. The Company estimates the fair value of its investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE and NASDAQ. For securities for which quoted prices in active markets are unavailable, the Company uses observable inputs such as quoted prices in inactive markets, quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs. The Company does not have any investments in its portfolio which require the use of unobservable inputs. The Company’s estimate of fair value reflects the interest rate environment that existed as of the close of business on December 31, 2021. Changes in interest rates after December 31, 2021 may affect the fair value of the Company’s investments. The Company’s non-financial assets, such as goodwill and intangible assets, are carried at cost until there are indicators of impairment and are recorded at fair value only when an impairment charge is recognized. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. Long term debt is recorded at carrying value, Refer to Note 14 “ Long-Term Debt” to our consolidated statements included in this Annual Report on Form 10-K, for further information. |
Premiums | Premiums The Company records direct and assumed premiums written as revenue net of ceded amounts on a daily pro rata basis over the contract period of the related in force policies or reinsurance contract. For any portion of premiums not earned at the end of the reporting period, the Company records an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premiums receivable exceeds the balance of unearned premiums. When we receive payments on amounts previously charged off, we reduce bad debt expense in the period we receive the payment. Balances in premiums receivable and the associated allowance account are removed upon cancellation of the policy due to non-payment. We recorded $ 451,000 and $ 451,600 allowance for the year ended December 31, 2021 and 2020. Bad debt expense related to uncollectible premiums was $ 0 , $ 161,300 and $ 290,300 for the years ended December 31, 2021, 2020 and 2019, respectively. When the Company receives premium payments from policyholders prior to the effective date of the related policy, the Company records an advance premiums liability. On the policy effective date, the Company reduces the advance premium liability and records the premiums as described above. |
Policy Acquisition Costs | Policy Acquisition Costs The Company incurs policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes policy acquisition costs to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. We earn ceding commission on our gross and net quota share reinsurance contracts. Our accounting policy is to allocate ceding commission between policy acquisition costs and general and administrative expenses for financial reporting purposes. Ceding commission is allocated between policy acquisition costs and general and administrative expenses based upon the proportion these costs bear to production of new business. For the years ended December 31, 2021 and 2020, we earned ceding commission income of $ 62.7 million and $ 57.1 million of which $ 47.1 million and $ 43.0 million was allocable to policy acquisition costs. Ceding commission income is deferred and recognized over the quota share contract period. The amount and rate of ceding reinsurance commissions earned on the net quota share contract can slide within a prescribed minimum and maximum, depending on loss performance and how future losses develop. |
Premium Deficiency Reserve | Premium Deficiency Reserve At each reporting date, the Company determines whether it has a premium deficiency. A premium deficiency would result if the sum of the Company’s expected losses, deferred policy acquisition costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded the Company’s related unearned premiums plus investment income. Should the Company determine that a premium deficiency exists, the Company would write off the unrecoverable portion of deferred policy acquisition cost. |
Reinsurance | Reinsurance The Company follows industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies the Company writes to another insurer, known as a reinsurer. To the extent that the Company’s reinsurers are unable to meet the obligations they assume under the Company’s reinsurance agreements, the Company remains liable for the entire insured loss. As a result, a reasonable possibility exists that an estimated recovery may change significantly in the near term from the amounts included in the Company’s consolidated financial statements. The Company’s reinsurance agreements are generally short-term, prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of new reinsurance agreements. The Company amortizes its prepaid reinsurance premiums over the 12-month contract period. When the Company incurs losses recoverable under its reinsurance program, the Company records amounts recoverable from its reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of the Company’s liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to the estimate of unpaid losses. Given that an estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to the Company’s reserves for unpaid losses, a reasonable possibility exists that an estimated recovery may change significantly from initial estimates. . The Company remains liable for claims payments if any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar geographic regions, activities or economics characteristics of the reinsurers to minimize its exposure to significant loses from reinsurers insolvencies. The Company contracts with a diverse population of reinsurers to secure its annual reinsurance coverage, for which the excess of loss treaties generally become effective June 1st each year. Allowance for Credit Losses for Reinsurance Recoverables The allowance for credit losses for reinsurance recoverable is evaluated based on historical loss experience adjusted for current events and reasonable and supportable forecasts from both internal and external sources. The Company monitors the credit quality of its reinsurance recoverables through the use of A.M. Best’s Financial Strength rating ("FSR"), or in the absence of an FSR consideration of credit ratings issued by approved rating agencies such as S&P, Moody’s, or Fitch. At December 31, 2021, the determination of the allowance for credit losses on reinsurance recoverables included analysis of (i) reinsurance recoverable balances by reinsurer FSR, (ii) estimated payment patterns associated with the claims underlying the reinsurance balances and (iii) historical default rates by reinsurer FSR as published by A.M. Best. In addition to the quantitative analysis, qualitative factors considered include but are not limited to (i) global reinsurer capital level, (ii) reinsurance market trends, (iii) the low interest rate environment and (iv) the stressed global economy, including the impact of COVID-19. Reinsurance recoverables are reported on the consolidated balance sheets net of the CECL allowance, if any. |
Long-Lived Assets-Property and Equipment | Long-Lived Assets—Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building— 40 years ; computer hardware and software 3-years ; office and furniture equipment— 3 to 7 years . Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. |
Leases | Leases We lease office space under finance and operating leases with expiration dates through 2031 . We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We primarily use our incremental borrowing rates for our operating leases (rates are not readily determinable) and implicit rates for our financing leases in determining the present value of lease payments. The Company used the implicit rates within the finance leases. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Goodwill and Intangible Assets | Goodw ill and Intangible Assets On January 1, 2020, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASC 350) ("ASU 2017-04"), which changed the guidance on goodwill impairment. Under the new guidance, the qualitative assessment of the recoverability of goodwill remains the same, but the second step of the two-step quantitative test, which required calculation of the implied fair value of goodwill, has been eliminated. Instead, an impairment charge is recognized when the carrying value of a reporting unit exceeds its fair value. Any excess of carrying value over fair value is written down as an impairment. This evaluation is performed annually, during the fourth quarter or more frequently if facts and circumstances warrant. An impairment loss would be recognized if, and to the extent that, the carrying value of goodwill exceeded the implied value. The Company reviews amortizable intangible assets for impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. If the Company concludes that impairment exists, the carrying amount is reduced to fair value. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. " |
Unpaid Losses and Loss Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses The Company’s reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to the Company (incurred but not reported, or “IBNR”). The reserve for unpaid losses is the estimate of amounts necessary to settle all reported and unreported incurred claims for the ultimate cost of insured losses, based upon the facts of each case and the Company’s experience with similar cases. Salvage and subrogation are deducted from the reserve for claims and claims expense on a cash basis. The establishment of appropriate reserves, including reserves for catastrophe losses, is an inherently uncertain and complex process. Reserve estimates are primarily derived using an actuarial estimation process in which historical loss patterns are applied to actual paid losses and reported losses (paid losses plus individual case reserves established by claim adjusters) for an accident or report year to create an estimate of how losses are likely to develop over time. Development factors are calculated quarterly and periodically throughout the year for data elements such as claims reported and settled, paid losses, and paid losses combined with case reserves. The historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting re-estimates are reflected in current results of operations. The Company reports its reserves for unpaid losses and loss adjustment expenses gross of the amounts related to unpaid losses recoverable from reinsurers and reports loss and loss adjustment expenses net of amounts ceded to reinsurers. The Company does not discount its loss reserves for financial statement purposes. |
Other Revenue | Other Revenue Our insurance affiliates may charge policyholders a policy fee on each policy written; to the extent these fees are not subject to refund, and the Company recognizes the income immediately when collected, which coincide with related service obligations. The Company also charges pay-plan fees to policyholders that pay its premiums in more than one installment and records the fees as income when collected. Other income also includes rental income due under non-cancelable leases for space at the Company’s commercial property. |
Assessments | Assessments Guaranty fund and other insurance-related assessments imposed upon the Company’s insurance company affiliates are recorded as policy acquisition costs in the period the regulatory agency imposes the assessment. To recover guaranty or other insurance-related assessments, the Company recoups such assessments from our policyholders in the form of a policy surcharge. Once the recoupment period begins, the entire recoupment amount is recorded as an asset on our balance sheet. There were no assessments during the periods presented. The Company collects other assessments imposed upon policyholders as a policy surcharge and records the amounts collected as a liability until the Company remits the amounts to the regulatory agency that imposed the assessment. |
Convertible Notes | Convertible Notes In August 2017 and September 2017, the Company issued collectively $ 136.8 million of 5.875 % Convertible Senior Notes (the “Convertible Notes”) due August 1, 2037 . The Convertible notes are accounted for in accordance with ASC 470-20. At the time of issuance and until December 1, 2017, the Company recorded the fair value of the derivatives on its balance sheet at fair value with changes in the values of these derivatives reflected in the consolidated statement of operations. As of December 31, 2021, the Company has $ 23.4 million of the Convertible Notes outstanding. This amount is net of $ 21.1 million of Convertible Notes reacquired and held by an insurance company subsidiary. Refer to the paragraph below under Debt Extinguishmen t for accompanying information regarding the repurchases, and Note 14 “ Long-Term Debt” to our consolidated statements included in this Annual Report on Form 10-K, for further information . |
Debt Extinguishment | Debt Extinguishment The Company has reacquired Convertible Notes over a series of transactions in 2019, 2018 and most recently in January 2022. In accordance with ASC 470 “ Debt ”, the Company evaluated the accounting treatment to determine if the repurchase of the Convertible Notes constituted a debt extinguishment. ASC 405-20-40-1 provides implementation guidance in order to determine if the Company is legally released from being the primary obligor under the liability, either judicially or by the creditor. Based on the reacquisition of the Convertible Notes, the Company derecognized the related debt and conversion option liability. Upon extinguishment, the Company performed a discounted cash flow (“DCF”) analysis for each transaction based on its date and principal amount, leveraging market debt yield data as of each trade date to estimate the costs of the debt. |
Debt Issuance and Discount Costs | Debt Issuance and Discount Costs In connection with the issuance of debt, any debt issuance and discount costs are reflected on the balance sheet as an offset to long-term debt and amortized using the effective interest method over the life of the underlying debt instrument. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite vesting period in accordance with ASC Topic 718, Compensation—Stock Compensation . Restricted stock awards are valued based on the fair value of the stock on the grant date and the related compensation expense is recognized over the vesting period. For awards with performance-based vesting conditions expense is not recognized until it is determined that it is probable the performance-based conditions will be met. When achievement of a performance-based condition is probable, a catch-up of expense will be recorded as if the award had been vesting on a straight line basis from the award date. The award will continue to be expensed on a straight-line basis until probability of achieving the performance-based conditions changes, if applicable. |
Earnings Per Share | Earnings Per Share Basic net earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted net earnings per share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the reported period. Common equivalent shares include incremental shares from diluted vested and unvested restricted shares and convertible notes outstanding during the period using the treasury stock method. |
Income Tax | Income tax Income taxes are accounted for under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both estimated federal and state income taxes. |
Reclassifications | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. The Company has reclassed from other assets and accounts payable, the right-of-use lease asset and lease liability, respectively on the balance sheet for the year 2020 to conform to the current year's presentation. This also changed presentation only on the Statement of Cashflows for 2020 and 2019. No presentation changes impacted the Changes in Stockholders' Equity or the Statement of Operations. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted The Company describes below recent pronouncements that may have a significant effect on its consolidated financial statements or on its disclosures upon future adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on, or are unrelated to, its financial condition, results of operations, or related disclosures. In August 2020, the FASB issued ASU 2020-06 related to the measurement and disclosure requirements for convertible instruments and contracts in an entity’s own equity. The pronouncement simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s in own equity. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The Company expects that its adoption of ASU 2020-06 will not have an impact on its senior convertible notes. The Company expects that in the periods in which the Company reports a net income, the number of shares outstanding for the diluted earnings per share calculation will include approximately 2.8 million additional shares under the if-converted method, impacting the Company's consolidated EPS results. The Company intends to adopt the ASU 2020-06 during the first quarter of 2022. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective for contract modifications made between March 12, 2020 and December 31, 2022. The new guidance reduces the operational and financial impacts of contract modifications that replace a reference rate, such as London Interbank Offered Rate (LIBOR), affected by reference rate reform. The adoption of the new guidance provides relief from current GAAP and is not anticipated to have a material impact on the Company’s consolidated financial statements. The Company has concluded that the ASU 2020-04 will have no material impact on the Company's consolidated financial statements. For additional information refer to Note 14 “ Long-Term Debt” to our consolidated statements included in this Annual Report on Form 10-K, for further information . Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of these accounting pronouncements had or will have a material impact on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale | The amortized cost, gross unrealized gains and losses, and fair value of the Company’s debt securities available-for-sale are as follows: December 31, 2021 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 73,923 $ 184 $ 282 $ 73,825 States, municipalities and political subdivisions 106,727 242 1,270 105,699 Special revenue 291,005 1,084 3,520 288,569 Hybrid securities 99 — — 99 Industrial and miscellaneous 203,491 636 2,965 201,162 Total $ 675,245 $ 2,146 $ 8,037 $ 669,354 (1) Includes securities at December 31, 2021 with a carrying amount of $ 22.5 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2020 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities (1) $ 29,985 $ 609 $ 1 $ 30,593 States, municipalities and political subdivisions 84,597 1,077 4 85,670 Special revenue 271,194 3,154 27 274,321 Hybrid securities 100 — — 100 Industrial and miscellaneous 167,296 3,070 39 170,327 Total $ 553,172 $ 7,910 $ 71 $ 561,011 (1) Includes securities at December 31, 2020 with a carrying amount of $ 21.6 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. |
Summary of Fixed Maturity Securities by Contractual Maturity Periods | The table below summarizes the Company’s fixed maturity securities at December 31, 2021 and 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. December 31, 2021 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 42,200 6 % $ 42,323 6 % Due after one year through five years 311,799 46 % 309,744 46 % Due after five years through ten years 224,654 34 % 220,777 34 % Due after ten years 96,592 14 % 96,510 14 % Total $ 675,245 100 % $ 669,354 100 % December 31, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Debt Securities Available-for-sale (in thousands) (in thousands) Due in one year or less $ 68,587 12 % $ 69,027 12 % Due after one year through five years 142,969 26 % 145,675 26 % Due after five years through ten years 166,240 30 % 168,979 30 % Due after ten years 175,376 32 % 177,330 32 % Total $ 553,172 100 % $ 561,011 100 % |
Schedule of Net Realized Gains (Losses) on Debt Securities Available-for-sale | The following table presents net realized gains (losses) on the Company’s debt securities available-for-sale for the years ended December 31, 2021, 2020 and 2019, respectively: For the Years ended December 31, 2021 2020 2019 Realized Gains (Losses) Fair Value at Sale Realized Gains (Losses) Fair Value at Sale Realized Gains (Losses) Fair Value at Sale (in thousands) Debt Securities Available-for-sale Realized gains $ 716 $ 26,029 $ 22,466 $ 374,863 $ 2,119 $ 157,125 Realized losses ( 652 ) 4,359 ( 71 ) 6,368 ( 211 ) 14,580 Net realized gains $ 64 $ 30,388 $ 22,395 $ 381,231 $ 1,908 $ 171,705 |
Schedule of Reconciliation of Net Realized and Unrealized (Losses) Gains on Investments | The following table presents the reconciliation of net realized and unrealized (losses) gains on the Company’s investments reported for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 (in thousands) Gross realized gains on sales of available-for-sale securities $ 716 $ 22,466 $ 2,119 Gross realized losses on sales of available-for-sale securities ( 652 ) ( 71 ) ( 211 ) Gross realized and unrealized on equity securities — — 2,703 Gross realized and unrealized losses on equity securities — — ( 1,441 ) Gross realized and unrealized gains in other investments 2,100 — 1,050 Gross realized and unrealized losses in other investments — — ( 57 ) Impairment charge in other investments ( 2,180 ) — — Net realized and unrealized (losses) gains $ ( 16 ) $ 22,395 $ 4,163 |
Schedule of Equity Investments | The following table presents the Company's equity investments as of December 31, 2021 and 2020, respectively. For the Year Ended December 31, 2021 2020 Common stock $ — $ — Membership Shares 1,415 1,599 Total equity investments, at cost $ 1,415 $ 1,599 |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 (in thousands) Debt securities available-for-sale $ 7,220 $ 12,067 $ 13,761 Equity securities — — 1,436 Cash and cash equivalents 71 223 1,470 Other investments 1,435 1,100 505 Net investment income 8,726 13,390 17,172 Investment expenses 3,074 1,088 2,740 Net investment income, less investment expenses $ 5,652 $ 12,302 $ 14,432 |
Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value | The following tables present, for all debt securities available-for-sale in an unrealized loss position, for which no allowance for credit loss is established (including securities pledged), the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: Less Than Twelve Months Twelve Months or More December 31, 2021 Number of Gross Fair Value Number of Gross Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 43 $ 282 $ 57,420 — $ — $ — States, municipalities and political subdivisions 98 1,270 80,972 — — — Special revenue 253 3,485 195,450 14 35 1,214 Industrial and miscellaneous 191 2,387 146,746 18 578 11,598 Total 585 $ 7,424 $ 480,588 32 $ 613 $ 12,812 Less Than Twelve Months Twelve Months or More December 31, 2020 Number of Gross Fair Value Number of Gross Fair Value (in thousands) Debt Securities Available-for-sale U.S. government and agency securities 3 $ 1 $ 73 1 $ — $ 7 States, municipalities and political subdivisions 6 4 5,158 — — — Special revenue 27 24 16,439 9 3 73 Industrial and miscellaneous 26 39 16,025 — — — Total 62 $ 68 $ 37,694 10 $ 3 $ 80 |
Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs by Category | The following table summarizes the Company’s non-consolidated VIEs by category at December 31, 2021 and 2020 (in thousands): Carrying Value For the Year Ended December 31, Balance Sheet Method 2021 2020 Other Real Estate LLC (1) Other Investments Equity Method $ 1,843 $ 3,000 Real Estate Corporation (2) Other Investments Measure Alternative 2,977 4,000 Class A Preferred Units (3) Other Investments Amortized Cost 15,000 17,400 Non-real estate related (4) Other Investments Equity Method 2,009 2,009 Insurtech Stock (5) Other Investments Measure Alternative 2,100 — Total non-consolidated VIEs $ 23,929 $ 26,409 (1) For the year ended December 31, 2021, a $ 1.2 million loss using the equity method of valuation was recognized in net realized and unrealized gains (losses) on the Statement of Operations. (2) For the year ended December 31, 2021, a $ 1.0 million impairment was recognized in net realized and unrealized gains (losses) on the Statement of Operations. (3) The Class A preferred units issued originally at $ 7.5 million and $ 9.9 million were measured at amortized cost under the guidance of ASC 320 and are subject to a fixed principal and interest payment schedule with maturity dates of February 1, 2023 and April 1, 2024 , respectively. (4) Certain underlying assets of the funds are expected to be liquidated over the period of approximately 3 to 5 years from December 31, 2021. In addition, the Company does not have the ability to redeem or withdraw from the funds, or to sell, assign, or transfer its investment, without the consent of the General Partner or Managers of each fund, but will receive distributions based on the liquidation of the underlying assets and interest processed from the underlying assets. (5) For the year ended December 31, 2021, the Company acquired common shares and warrants of an Insurtech company and this investment is reported using the measurement alternative method. The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at December 31, 2021 and 2020: As of December 31, 2021 As of December 31, 2020 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure (in thousands) Investments in non-consolidated VIEs $ 23,929 $ 23,929 $ 26,409 $ 26,409 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Amount Balance as of December 31, 2019 $ 152,459 Goodwill acquired — Impairment — Balance as of December 31, 2020 $ 152,459 Goodwill acquired — Impairment ( 60,500 ) Balance as of December 31, 2021 $ 91,959 |
Schedule of Finite-lived Intangible Assets | The tables below detail the finite-lived intangible assets, net as of December 31, 2021 and 2020, respectively (amounts in thousands): For the Year Ended December 31, 2021 2020 Amortizing intangible assets (in thousands) Brand $ 1,210 $ 1,210 Agent relationships 15,500 15,500 Renewal rights 57,200 57,200 Customer relations 870 870 Trade names 9,000 9,000 Non-compete 4,790 4,790 88,570 88,570 Accumulated amortization ( 33,959 ) ( 27,608 ) Total infinite-lived intangible assets, net 54,611 60,962 Indefinite-lived intangible assets: License acquired 1,315 1,315 Total intangible assets, net $ 55,926 $ 62,277 |
Schedule of Estimated Amortization of Intangible Assets | Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2022 $ 6,351 2023 6,351 2024 6,351 2025 6,315 2026 6,078 Thereafter 23,165 $ 54,611 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: For the Year Ended December 31, 2021 2020 2019 Basic (loss) earnings per share: Net (loss) income attributable to common stockholders (000's) $ ( 74,727 ) $ 9,326 $ 28,636 Weighted average shares outstanding 27,804,355 27,978,519 29,213,910 Basic (loss) earnings per share: $ ( 2.69 ) $ 0.33 $ 0.98 Diluted (loss) earnings per share: Net (loss) income attributable to common stockholders (000's) $ ( 74,727 ) $ 9,326 $ 28,636 Weighted average shares outstanding 27,804,355 27,978,519 29,213,910 Add: Effect of dilutive securities Impact of unvested equity awards — 10,447 19,071 Diluted weighted average common shares outstanding 27,804,355 27,988,966 29,232,981 Diluted (loss) earnings per share: $ ( 2.69 ) $ 0.33 $ 0.98 The Company had 2,809,453 , 2,029,162 and 1,914,770 antidilutive shares for the years ended December 31, 2021, 2020 and 2019, respectively. The convertible notes were excluded from the computations because the conversion price on these notes were greater than the average market price of our common shares during each of the respective periods, and therefore, would be anti-dilutive to earnings per share under the treasury method. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. For the years ended December 31, 2021 and 2020, there were no transfers in or out of Level 1, 2, and 3. December 31, 2021 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 73,825 $ 364 $ 73,461 $ — States, municipalities and political subdivisions 105,699 — 105,699 — Special revenue 288,569 — 288,569 — Hybrid securities 99 — 99 — Industrial and miscellaneous 201,162 — 201,162 — Total debt securities $ 669,354 $ 364 $ 668,990 $ — December 31, 2020 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 30,593 $ 371 $ 30,222 $ — States, municipalities and political subdivisions 85,670 — 85,670 — Special revenue 274,321 — 274,321 — Hybrid securities 100 — 100 — Industrial and miscellaneous 170,327 — 170,327 — Total debt securities $ 561,011 $ 371 $ 560,640 $ — |
Schedule of Assets Measured at Estimated Fair Value on Nonrecurring Basis | The following table presents information for assets measured at an estimated fair value on a nonrecurring basis as of December 31, 2021: Other Investments Carrying Value Balance, January 1, 2021 Amounts impaired Carrying Value Balance, December 31, 2021 (in thousands) Goodwill (1) $ 152,459 $ ( 60,500 ) 91,959 Real Estate Corporation, measurement alternative (2) 4,000 ( 1,023 ) 2,977 Total $ 156,459 $ ( 61,523 ) $ 94,936 (1) Non-cash impairment charge recorded in operating expenses in the consolidated statement of operations by the insurance companies and non-insurance companies. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. (2) Impairment on these investments were recognized in the second quarter of 2021 based on the estimated fair value of the Company’s ownership interest. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Comprehensive Income Net Of Tax [Abstract] | |
Summary of Other Comprehensive (loss) income and Tax Impact of Each Component of Other Comprehensive (loss) income | The following table is a summary of other comprehensive (loss) income and discloses the tax impact of each component of other comprehensive (loss) income for the years ended December 31, 2021, 2020 and 2019, respectively: For the Year Ended December 31, 2021 2020 2019 Pre-tax Tax After- Pre- Tax After- Pre-tax Tax After- (in thousands) Other comprehensive (loss) income Change in unrealized gains on investments, net $ ( 13,661 ) 3,081 $ ( 10,580 ) $ 20,738 $ ( 4,807 ) $ 15,931 $ 19,765 $ ( 4,575 ) $ 15,190 Reclassification adjustment of realized (gains) losses included in net (loss) income ( 64 ) 14 ( 50 ) ( 22,395 ) 5,191 $ ( 17,204 ) ( 1,734 ) 401 $ ( 1,333 ) Effect on other comprehensive (loss) income $ ( 13,725 ) $ 3,095 $ ( 10,630 ) $ ( 1,657 ) $ 384 $ ( 1,273 ) $ 18,031 $ ( 4,174 ) $ 13,857 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table summarizes the Company’s other assets for the years ended December 31, 2021 and 2020: Description December 31, 2021 December 31, 2020 (in thousands) Other amounts receivable $ 1,934 $ 1,816 State underwriting pooling & assoc. 3,956 4,753 Prepaid expense 6,382 4,726 Premium taxes — 248 Total other assets $ 12,272 $ 11,543 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs were as follows (in thousands): For the Year Ended For the Year Ended Amortization of ROU assets - Finance leases $ 1,969 $ 98 Interest on lease liabilities - Finance leases 785 25 Variable lease cost (cost excluded from lease payments) 557 538 Operating lease cost (cost resulting from lease payments) 1,359 1,362 Total lease cost $ 4,670 $ 2,023 |
Right-of-Use Lease Asset and Lease Liability | Right-of-use lease asset and Lease Liability was as follows (in thousands): Balance Sheet Classification December 31, 2021 December 31, 2020 Right-of-use assets - operating Right-of-use lease asset, net $ 5,035 $ 5,955 Right-of-use assets - finance Right-of-use lease asset, net $ 22,718 $ 506 Lease Liability - operating Lease liability $ 6,551 $ 7,610 Lease Liability - finance Lease liability $ 24,621 $ 545 |
Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases | Weighted-average remaining lease term and discount rate for our operating and financing leases was as follows: December 31, 2021 December 31, 2020 Weighted average lease term - Finance leases 9.1 3.76 Weighted average lease term - Operating leases 6.23 6.99 Weighted average discount rate - Finance leases 4.18 % 6.92 % Weighted average discount rate - Operating leases 5.33 % 5.30 % |
Supplemental Disclosure of Cash Flow Information Related to Leases | Supplemental disclosure of cash flow information related to leases were as follows: For the Year Ended For the Year Ended Cash payments for: (in thousands) Finance lease - Operating cash flows $ 291 $ 25 Finance lease - Financing cash flows $ 599 $ 82 Operating lease - Operating cash flows (fixed payments) $ 1,505 $ 1,452 Operating lease - Operating cash flows (liability reduction) $ 1,133 $ 1,031 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows as of December 31, 2021 (in thousands): December 31, 2021 2022 $ 4,566 2023 4,500 2024 4,194 2025 3,970 2026 3,990 2027 and thereafter 16,224 Total lease payments 37,444 Less: imputed interest ( 6,272 ) Present value of lease liabilities $ 31,172 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 (in thousands) Land $ 2,582 $ 2,582 Building 10,141 10,141 Computer hardware and software 7,204 6,358 Office furniture and equipment 1,355 2,027 Tenant and leasehold improvements 8,255 8,133 Vehicle fleet 720 850 Total, at cost 30,257 30,091 Less: accumulated depreciation and amortization ( 12,831 ) ( 11,406 ) Property and equipment, net $ 17,426 $ 18,685 |
Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties | Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands): Year Amount 2022 $ 2,763 2023 2,905 2024 2,801 2025 2,473 2026 2,525 2027 and Thereafter 17,140 Total $ 30,607 |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission | The table below depicts the activity with regard to deferred reinsurance ceding commission during the years ended December 31, 2021, 2020 and 2019. For the Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance of deferred ceding commission income $ 39,995 $ 37,464 $ 44,819 Ceding commission deferred $ 63,131 59,664 55,095 Less: ceding commission earned $ ( 62,721 ) ( 57,134 ) ( 62,450 ) Ending balance of deferred ceding commission income $ 40,405 $ 39,995 $ 37,464 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The Company defers certain costs in connection with written policies, called deferred policy acquisition costs (“DPAC”), which are amortized over the effective period of the related insurance policies. The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC for the years ended December 31, 2021, 2020 and 2019: For the Year Ended December 31, 2021 2020 2019 (in thousands) Beginning Balance $ 89,265 $ 77,211 $ 73,055 Policy acquisition costs deferred $ 193,106 171,275 149,095 Amortization $ ( 188,490 ) ( 159,220 ) ( 144,939 ) Ending Balance $ 93,881 $ 89,265 $ 77,211 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of 2021-2022 Reinsurance Towers | 2021-2022 Reinsurance Towers Millions $ 1,432.3 $ 1,332.3 Layer 4 FL - SE Only 100 % of $ 100 M xs $ 40 M Nil Reinst. Layer 3 100 % of $ 160 M xs $ 40 M Nil Reinst. $ 1,224.2 $ 1,194.0 FHCF Layer 90 % of 869.3 M 354.9 M 782.4 M) $ 705.7 $ 354.9 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention FL 1st Event Millions $ 1,062.0 $ 1,061.6 Northeast Only 100 % of $ 222 M xs $ 40 M Nil Reinst. $ 840.0 Multi-Zonal 100 % of 290 M xs $ 40 M 100 % w/ RPP $ 550.0 Layer 3 100 % of $ 160 M xs $ 40 M Nil Reinst. $ 390.0 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention $ 20.0 Net Quota Share 56.5 % of $ 20 M ($ 11.3 M) NE 1st Event Millions $ 680.0 Multi-Zonal 100 % of 290 M xs $ 40 M 100 % w/ RPP $ 390.0 Layer 2 100 % of $ 250 M xs $ 40 M 100 % w/ RPP $ 140.0 Layer 1 94 % of $ 100 M xs $ 40 M 100 % w/ RPP 94 M) 6 % of $ 50 M xs $ 40 M, 1 100 % 3 M) Cat 43 6 % of $ 50 M xs $ 40 M ($ 3 M) $ 40.0 20 % Co-Par Top and Agg 80 % of 20 M xs $ 20 M xs $ 10 M AAD ($ 8 M) $ 30.0 Retention HI 1st Event * xs = in excess |
Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income | The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statement of Income for the year ended December 31, 2021, 2020 and 2019: For the Year Ended December 31, 2021 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 1,164,879 $ 1,144,162 $ 625,748 Ceded ( 553,147 ) ( 533,091 ) ( 198,378 ) Net $ 611,732 $ 611,071 $ 427,370 For the Year Ended December 31, 2020 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 1,080,100 $ 996,842 $ 609,593 Ceded ( 473,836 ) ( 452,120 ) ( 236,206 ) Net $ 606,264 $ 544,722 $ 373,387 For the Year Ended December 31, 2019 Premiums Written Premiums Earned Losses and Loss (in thousands) Direct $ 937,937 $ 924,247 $ 696,289 Ceded ( 436,564 ) ( 445,534 ) ( 423,001 ) Net $ 501,373 $ 478,713 $ 273,288 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of Reserve for Unpaid Losses | The table below summarizes the activity related to the Company’s reserve for unpaid losses: For the Year Ended December 31, 2021 2020 2019 (in thousands) Balance, beginning of period $ 659,341 $ 613,533 $ 432,359 Less: reinsurance recoverable on unpaid losses 397,688 393,630 250,507 Net balance, beginning of period 261,653 219,903 181,852 Incurred related to: Current year 430,907 392,976 276,985 Prior years ( 3,537 ) ( 19,589 ) ( 3,696 ) Total incurred 427,370 373,387 273,289 Paid related to: Current year 247,903 228,394 137,764 Prior years 152,711 103,243 97,474 Total paid 400,614 331,637 235,238 Net balance, end of period 288,409 261,653 219,903 Plus: reinsurance recoverable on unpaid losses 301,757 397,688 393,630 Balance, end of period $ 590,166 $ 659,341 $ 613,533 |
Summary of Incurred, Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | The following is information about incurred and paid claims development as of December 31, 2021, net of reinsurance, as well as cumulative claim payments and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts The information by accident year is presented as required supplementary information and are unaudited. Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (in thousands, except number of claims) Unaudited Accident year 2012 & 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net IBNR Reported 2012 & prior $ 102,723 $ 105,765 $ 107,842 $ 106,493 $ 106,331 $ 106,654 $ 106,446 $ 106,628 $ 106,437 $ 106,506 $ 22 53,356 2013 61,157 61,483 62,969 62,166 62,354 62,378 62,564 62,829 62,812 48 13,098 2014 118,991 114,899 113,847 114,984 115,838 115,234 115,409 115,708 321 18,493 2015 179,255 197,744 203,792 205,164 206,011 205,437 204,961 1,154 26,120 2016 237,207 242,611 250,990 250,235 250,067 250,482 3,226 27,606 2017 189,163 195,240 192,749 194,618 195,602 3,226 73,260 2018 199,565 193,672 192,474 198,064 2,688 34,281 2019 258,876 231,545 228,419 12,599 26,007 2020 370,058 364,380 36,620 34,948 2021 388,949 144,245 — Total $ 2,115,883 $ 204,149 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Unaudited Accident year 2012 & 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 & prior $ 92,909 $ 101,323 $ 102,750 $ 104,093 $ 104,362 $ 105,053 $ 105,875 $ 106,475 $ 106,689 $ 106,747 2013 35,771 50,716 55,589 57,647 59,395 60,581 61,191 62,235 62,337 2014 68,732 95,076 101,456 108,509 112,518 113,609 113,975 114,898 2015 103,918 162,654 181,672 192,967 197,524 199,600 201,495 2016 132,679 211,512 233,540 238,868 241,875 244,820 2017 103,148 169,743 178,622 184,313 188,928 2018 84,552 152,592 170,301 187,386 2019 124,664 185,667 205,442 2020 210,548 313,811 2021 213,830 Total $ 1,839,694 |
Summary of Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses | Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance $ 276,197 Reinsurance recoverable on unpaid losses 301,757 Unpaid Unallocated Loss Adjustment Expense 12,212 Unpaid losses and loss adjustment expenses $ 590,166 |
Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance as of December 31, 2021 (Unaudited) Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Thereafter Percentage 56 % 29 % 6 % 9 % 0 % 0 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long-Term Debt | The following table summarizes the Company’s long-term debt: December 31, 2021 December 31, 2020 (in thousands) Convertible debt $ 23,413 $ 23,413 Mortgage loan 11,521 11,827 Credit loan facility 69,125 60,000 Revolving credit facility — 10,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 123,259 $ 124,440 Deferred finance costs $ 2,502 $ 3,442 Total long-term debt $ 120,757 $ 120,998 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt is as follows: December 31, Amount 2022 $ 3,822 2023 23,039 2024 4,292 2025 5,624 2026 53,331 Thereafter 33,151 Total principal payments $ 123,259 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | The following table summarizes the provision for income taxes: For the Year Ended December 31, 2021 2020 2019 (in thousands) Federal: Current $ 3,015 $ ( 14,863 ) $ 9,674 Deferred ( 5,872 ) 6,859 584 (Benefit)/provision for Federal income tax ( 2,857 ) ( 8,004 ) 10,258 State: Current 1,634 1,501 1,785 Deferred ( 84 ) ( 610 ) 317 Provision for State income tax expense 1,550 891 2,102 (Benefit)/provision for income taxes $ ( 1,307 ) $ ( 7,113 ) $ 12,360 |
Summary of U.S. Federal Income Tax Rate to Pretax Income | The income tax (benefit) expense differs from the amounts computed by applying the U.S. federal income tax rate of as indicated below to pretax income as a result of the following (in thousands): For the Year Ended December 31, 2021 2020 2019 Expected income tax expense at federal rate 21.0 % 21.0 % 21.0 % State tax expense ( 1.0 )% 25.9 % 3.6 % Permanent items ( 0.5 )% 16.0 % 0.9 % Goodwill impairment ( 16.7 )% — — Non-deductible stock compensation ( 0.2 )% 22.4 % ( 0.4 )% Tax exempt interest 0.1 % ( 18.4 )% ( 1.6 )% Executive compensation 162(m) ( 0.2 )% 20.3 % 6.1 % Political contributions ( 0.2 )% 6.2 % 0.3 % Tax rate change ( 0.5 )% ( 409.1 )% 0.6 % Other 0.0 % ( 5.6 )% ( 0.4 )% Reported income tax expense 1.7 % ( 321.3 )% 30.1 % |
Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities included in the consolidated balance sheets as December 31 were as follows: For the Year Ended December 31, 2021 2020 Deferred tax assets: (in thousands) Unearned premiums $ 15,805 $ 15,303 Unearned commission 9,459 9,272 Net operating loss 1,222 1,885 Tax-related discount on loss reserve 3,872 3,322 Stock-based compensation 84 113 Accrued expenses 1,182 982 Leases 792 394 Unrealized losses 1,913 — Other 472 343 Total deferred tax asset 34,801 31,614 Deferred tax liabilities: Deferred acquisition costs $ 21,977 $ 20,694 Prepaid expenses 177 236 Unrealized gain — 1,814 Property and equipment 1,504 1,669 Note discount 187 326 Basis in purchased investments 34 53 Basis in purchased intangibles 14,550 15,693 Internal revenue code 481(a) 4,416 8,577 Other 1,382 1,029 Total deferred tax liabilities 44,227 50,091 Net deferred tax liability $ ( 9,426 ) $ ( 18,477 ) |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Other liabilities consist of the following as of December 31, 2021 and 2020: Description December 31, 2021 December 31, 2020 (in thousands) Deferred ceding commission 40,406 $ 39,995 Outstanding claim checks — 10,864 Accounts payable and other payables 10,086 9,248 Accrued dividends 1,634 1,670 Accrued interest and issuance costs 735 833 Other liabilities 195 80 Premium tax 871 — Commission payables 17,598 18,245 Total other liabilities $ 71,525 $ 80,935 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Cash Dividends | For the year ended December 31, 2021, we recorded quarterly cash dividends totaling approximately $ 6.7 million as follows: Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Cash dividend per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 Total cash dividends paid $ 1,670,032 $ 1,677,911 $ 1,680,432 $ 1,680,149 Record date December 15, 2020 March 15, 2021 June 15, 2021 September 15, 2021 Payment date January 15, 2021 April 6, 2021 July 6, 2021 October 6, 2021 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the three years ended December 31, 2021, 2020 and 2019 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2018 605,801 $ 20.41 Granted — — Vested ( 22,647 ) 14.28 Canceled and surrendered ( 237,620 ) 14.82 Non-vested, at December 31, 2019 345,534 $ 19.56 Granted 15,000 10.68 Vested ( 13,044 ) 13.17 Canceled and surrendered ( 247,223 ) 9.49 Non-vested, at December 31, 2020 100,267 $ 15.37 Granted - Performance-based restricted stock 174,689 9.45 Granted - Time-based restricted stock 80,104 9.68 Vested ( 43,711 ) 9.61 Canceled and surrendered ( 28,257 ) 10.69 Non-vested, at December 31, 2021 283,092 $ 9.32 |
Additional Information Regarding Outstanding Unvested Restricted Stock | Additional information regarding our outstanding unvested restricted stock at December 31, 2021 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) February 12, 2018 50,000 16.35 1.00 April 24, 2020 5,000 10.60 0.25 January 4, 2021 127,837 10.43 2.00 April 13, 2021 37,349 10.71 2.00 October 18, 2021 62,906 6.89 2.00 283,092 |
Summary of Quarterly Results (T
Summary of Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results | The following table provides a summary of unaudited quarterly results for the periods presented (in thousands, except per share data): For the year ended December 31, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 142,199 $ 146,499 $ 162,445 $ 159,928 Investment income $ 1,293 $ 956 $ 1,548 $ 1,855 Total revenues $ 147,243 $ 150,197 $ 167,408 $ 166,712 Total operating expenses (1) $ 153,075 $ 154,187 $ 182,785 $ 209,578 Operating (loss) income $ ( 5,832 ) $ ( 3,990 ) $ ( 15,377 ) $ ( 42,865 ) Net (loss) income $ ( 5,148 ) $ ( 3,950 ) $ ( 16,410 ) $ ( 49,218 ) Basic net (loss) income per share $ ( 0.19 ) $ ( 0.14 ) $ ( 0.59 ) $ ( 1.79 ) Diluted net (loss) income per share $ ( 0.19 ) $ ( 0.14 ) $ ( 0.59 ) $ ( 1.79 ) For the year ended December 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Net premiums earned $ 126,006 $ 129,057 $ 138,230 $ 151,430 Investment income $ 3,670 $ 3,296 $ 2,817 $ 2,519 Total revenues $ 132,706 $ 136,012 $ 165,119 $ 159,548 Total operating expenses $ 119,946 $ 129,049 $ 169,601 $ 164,604 Operating income (loss) $ 12,760 $ 6,963 $ ( 4,482 ) $ ( 5,056 ) Net income (loss) $ 7,620 $ 4,132 $ ( 5,233 ) $ 2,808 Basic net income (loss) per share $ 0.27 $ 0.15 $ ( 0.19 ) $ 0.10 Diluted net income (loss) per share $ 0.27 $ 0.15 $ ( 0.19 ) $ 0.10 (1) The fourth quarter results include a $ 60.5 million impairment of goodwill. Refer to Note 3 “ Goodwill and Other Intangible Assets ” to our consolidated statements included in this Annual Report on Form 10-K, for further information on our 2021 goodwill impairment charge. |
Basis of Presentation, Nature_3
Basis of Presentation, Nature of Business and Significant Accounting Policies and Practices - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)Segmentshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Sep. 30, 2017USD ($) | Aug. 31, 2017 | |
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Number of reporting Segment | Segment | 1 | |||||
Highly liquid investments with original maturity | 3 months | |||||
Restricted cash | $ 5,415,000 | $ 5,415,000 | $ 5,427,000 | |||
Interest income on restricted cash deposits | 11,918 | 33,400 | ||||
Impairment charges on other investments | 2,200,000 | 0 | ||||
Allowance for uncollectible premiums | 451,000 | 451,000 | 451,600 | |||
Bad debt expense, uncollectible premiums | 0 | 161,300 | $ 290,300 | |||
Ceding commission income | $ 62,721,000 | $ 57,134,000 | $ 62,450,000 | |||
Operating lease expiration year | 2031 | |||||
Convertible notes outstanding net of reacquired | 21,100 | $ 21,100 | ||||
Number of shares outstanding for diluted earnings per share | shares | 27,804,355 | 27,988,966 | 29,232,981 | |||
Accounting Standards Update 2020-06 [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Number of shares outstanding for diluted earnings per share | shares | 2,800,000 | |||||
New accounting pronouncement or change in accounting principle, description | The Company expects that its adoption of ASU 2020-06 will not have an impact on its senior convertible notes. The Company expects that in the periods in which the Company reports a net income, the number of shares outstanding for the diluted earnings per share calculation will include approximately 2.8 million additional shares under the if-converted method, impacting the Company's consolidated EPS results. The Company intends to adopt the ASU 2020-06 during the first quarter of 2022. | |||||
Convertible Senior Notes [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Aggregate principal amount | $ 136,800,000 | |||||
Interest rate | 5.875% | 5.875% | ||||
Notes maturity date | Aug. 1, 2037 | |||||
Convertible Notes outstanding | 23,400,000 | $ 23,400,000 | ||||
Building [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 40 years | |||||
Computer Hardware and Software [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 3 years | |||||
NBIC [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Ceding commission income | $ 62,700,000 | $ 57,100,000 | ||||
Policy Acquisition Costs [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Ceding commission income | $ 47,100,000 | $ 47,100,000 | $ 43,000,000 | $ 47,000,000 | ||
Minimum [Member] | Office and Furniture Equipment [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 3 years | |||||
Maximum [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Short-term investment securities with original maturity | 1 year | |||||
Maximum [Member] | Office and Furniture Equipment [Member] | ||||||
Basis Of Presentation Nature Of Business And Significant Accounting Policies And Practices [Line Items] | ||||||
Property plant and equipment useful life | 7 years |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 675,245 | $ 553,172 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 2,146 | 7,910 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 8,037 | 71 |
Debt Securities Available-for-sale, Fair Value | 669,354 | 561,011 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 73,923 | 29,985 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 184 | 609 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 282 | 1 |
Debt Securities Available-for-sale, Fair Value | 73,825 | 30,593 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 106,727 | 84,597 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 242 | 1,077 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 1,270 | 4 |
Debt Securities Available-for-sale, Fair Value | 105,699 | 85,670 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 291,005 | 271,194 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 1,084 | 3,154 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 3,520 | 27 |
Debt Securities Available-for-sale, Fair Value | 288,569 | 274,321 |
Hybrid Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 99 | 100 |
Debt Securities Available-for-sale, Fair Value | 99 | 100 |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 203,491 | 167,296 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 636 | 3,070 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 2,965 | 39 |
Debt Securities Available-for-sale, Fair Value | $ 201,162 | $ 170,327 |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Debt Securities Available-for-Sale (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Carrying amount | $ 22.5 | $ 21.6 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities by Contractual Maturity Periods (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||
Debt Securities Available-for-sale Due in one year or less, Cost or Amortized Cost | $ 42,200 | $ 68,587 |
Debt Securities Available-for-sale Due after one year through five years, Cost or Amortized Cost | 311,799 | 142,969 |
Debt Securities Available-for-sale Due after five years through ten years, Cost or Amortized Cost | 224,654 | 166,240 |
Debt Securities Available-for-sale Due after ten years, Cost or Amortized Cost | 96,592 | 175,376 |
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 675,245 | $ 553,172 |
Debt Securities Available-for-sale Due in one year or less, Percentage of Total | 6.00% | 12.00% |
Debt Securities Available-for-sale Due after one year through five years, Percentage of Total | 46.00% | 26.00% |
Debt Securities Available-for-sale Due after five years through ten years, Percentage of Total | 34.00% | 30.00% |
Debt Securities Available-for-sale Due after ten years, Percentage of Total | 14.00% | 32.00% |
Debt Securities Available-for-sale Total, Percentage | 100.00% | 100.00% |
Debt Securities Available-for-sale Due in one year or less, Fair Value | $ 42,323 | $ 69,027 |
Debt Securities Available-for-sale Due after one year through five years, Fair Value | 309,744 | 145,675 |
Debt Securities Available-for-sale Due after five years through ten years, Fair Value | 220,777 | 168,979 |
Debt Securities Available-for-sale Due after ten years, Fair Value | 96,510 | 177,330 |
Debt Securities Available-for-sale Total, Fair Value | $ 669,354 | $ 561,011 |
Debt Securities Available-for-sale Due in one year or less, Percentage of Total | 6.00% | 12.00% |
Debt Securities Available-for-sale Due after one year through five years, Percentage of Total | 46.00% | 26.00% |
Debt Securities Available-for-sale Due after five years through ten years, Percentage of Total | 34.00% | 30.00% |
Debt Securities Available-for-sale Due after ten years, Percentage of Total | 14.00% | 32.00% |
Debt Securities Available-for-sale Total, Percentage | 100.00% | 100.00% |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Apr. 01, 2024 | Feb. 01, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Line Items] | |||||
Proceeds from the sale of debt securities | $ 30,400,000 | $ 381,300,000 | $ 171,700,000 | ||
Allowance for credit loss | 0 | ||||
Net realized gains or (losses) on equity investments | 0 | 0 | |||
Net unrealized gains or (losses) on equity investments | 0 | 0 | |||
Net realized gains on equity investments | 3,800,000 | ||||
Net realized losses on equity investments | 1,500,000 | ||||
Impairment charge in other investments | (2,180,000) | ||||
Other Investment [Member] | Real Estate Corporation [Member] | |||||
Investments [Line Items] | |||||
Impairment charge in other investments | 1,000,000 | ||||
Other Investment [Member] | Other Real Estate LLC [Member] | |||||
Investments [Line Items] | |||||
Impairment charge in other investments | $ 1,200,000 | ||||
REIT and LLCs [Member] | Redeemable Class A Preferred Units [Member] | Scenario Forecast [Member] | |||||
Investments [Line Items] | |||||
Preferred Units Maturity Date | Apr. 1, 2024 | Feb. 1, 2023 | |||
Amortized cost | $ 9,900,000 | $ 7,500,000 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Gains (Losses) on Debt Securities Available-for-sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities Available-for-sale | |||
Realized gains | $ 716 | $ 22,466 | $ 2,119 |
Realized losses | (652) | (71) | (211) |
Net realized gains | 64 | 22,395 | 1,908 |
Debt Securities Available-for-sale, Fair Value at Sale | |||
Realized gains, Fair Value at Sale | 26,029 | 374,863 | 157,125 |
Realized losses, Fair Value at Sale | 4,359 | 6,368 | 14,580 |
Net realized gains, Fair Value at Sale | $ 30,388 | $ 381,231 | $ 171,705 |
Investments - Schedule of Recon
Investments - Schedule of Reconciliation of Net Realized and Unrealized (Losses) Gains on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |||
Gross realized gains on sales of available-for-sale securities | $ 716 | $ 22,466 | $ 2,119 |
Gross realized losses on sales of available-for-sale securities | (652) | (71) | (211) |
Gross realized and unrealized on equity securities | 2,703 | ||
Gross realized and unrealized losses on equity securities | (1,441) | ||
Gross realized and unrealized gains in other investments | 2,100 | 1,050 | |
Gross realized and unrealized losses in other investments | (57) | ||
Impairment charge in other investments | (2,180) | ||
Net realized and unrealized (losses) gains | $ (16) | $ 22,395 | $ 4,163 |
Investments - Schedule of Compo
Investments - Schedule of Components of Realized and Unrealized Gains (Losses) on Equity Investment and Other Non-Marketable Equity Securities (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |
Total realized gains | $ 3.8 |
Total realized losses | $ (1.5) |
Investments - Schedule of Equit
Investments - Schedule of Equity Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Total equity investments, at cost | $ 1,415 | $ 1,599 |
Common Stock [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total equity investments, at cost | ||
Membership Shares [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total equity investments, at cost | $ 1,415 | $ 1,599 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | $ 8,726 | $ 13,390 | $ 17,172 |
Investment expenses | 3,074 | 1,088 | 2,740 |
Net investment income, less investment expenses | 5,652 | 12,302 | 14,432 |
Debt Securities Available-for-Sale [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 7,220 | 12,067 | 13,761 |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 1,436 | ||
Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | 71 | 223 | 1,470 |
Other Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross investment income (loss) | $ 1,435 | $ 1,100 | $ 505 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value (Detail) $ in Thousands | Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 585 | 62 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 7,424 | $ 68 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 480,588 | $ 37,694 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 32 | 10 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 613 | $ 3 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 12,812 | $ 80 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 43 | 3 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 282 | $ 1 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 57,420 | $ 73 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 1 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 7 | |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 98 | 6 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 1,270 | $ 4 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 80,972 | $ 5,158 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 253 | 27 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 3,485 | $ 24 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 195,450 | $ 16,439 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 14 | 9 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 35 | $ 3 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 1,214 | $ 73 |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 191 | 26 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 2,387 | $ 39 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 146,746 | $ 16,025 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 18 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 578 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 11,598 |
Investments - Summary of Non-co
Investments - Summary of Non-consolidated VIEs by Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Other investments | $ 23,929 | $ 26,409 |
Non-consolidated Variable Interest Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | 23,929 | 26,409 |
Non-consolidated Variable Interest Entities [Member] | Other Real Estate LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | 1,843 | 3,000 |
Non-consolidated Variable Interest Entities [Member] | Real Estate Corporation [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | 2,977 | 4,000 |
Non-consolidated Variable Interest Entities [Member] | Class A Preferred Units [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | 15,000 | 17,400 |
Non-consolidated Variable Interest Entities [Member] | Non-real estate Related [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | 2,009 | $ 2,009 |
Non-consolidated Variable Interest Entities [Member] | Insurtech Stock [Member] | ||
Variable Interest Entity [Line Items] | ||
Other investments | $ 2,100 |
Investments - Summary of Non-_2
Investments - Summary of Non-consolidated VIEs by Category (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 01, 2024 | Feb. 01, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | |||||
Net realized and unrealized gains (losses) | $ (16) | $ 22,395 | $ 4,163 | ||
Other Real Estate LLC [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Loss using equity method of valuation | 1,200 | ||||
Real Estate Corporation [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Net realized and unrealized gains (losses) | $ 1,000 | ||||
Minimum [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Assets of fund expected to be liquidated period | 3 years | ||||
Maximum [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Assets of fund expected to be liquidated period | 5 years | ||||
REIT and LLCs [Member] | Redeemable Class A Preferred Units [Member] | Forecast | |||||
Variable Interest Entity [Line Items] | |||||
Amortized cost | $ 9,900 | $ 7,500 | |||
Preferred Units Maturity Date | Apr. 1, 2024 | Feb. 1, 2023 |
Investments - Summary of Carryi
Investments - Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Carrying Value | $ 23,929 | $ 26,409 |
Non-consolidated Variable Interest Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 23,929 | 26,409 |
Maximum Loss Exposure | $ 23,929 | $ 26,409 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 91,959 | $ 91,959 | $ 152,459 | $ 152,459 |
Intangibles, net | 55,926 | 55,926 | 62,277 | |
Indefinite lived intangible, insurance licenses | 1,315 | 1,315 | 1,315 | |
Goodwill impairment | $ 60,500 | 60,500 | 0 | 0 |
Amortization of intangible assets | $ 6,400 | $ 6,400 | $ 8,200 | |
Minimum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Useful life of intangible asset | 1 year | |||
Maximum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Useful life of intangible asset | 15 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Beginning balance | $ 152,459 | $ 152,459 | ||
Impairment | $ (60,500) | (60,500) | 0 | $ 0 |
Ending balance | $ 91,959 | $ 91,959 | $ 152,459 | $ 152,459 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 88,570 | $ 88,570 |
Accumulated amortization | (33,959) | (27,608) |
Total infinite-lived intangible assets, net | 54,611 | 60,962 |
Indefinite lived intangible, license acquired | 1,315 | 1,315 |
Total intangible assets, net | 55,926 | 62,277 |
Brand [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,210 | 1,210 |
Agent Relationships [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | 15,500 | 15,500 |
Renewal Rights [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | 57,200 | 57,200 |
Customer Relations [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | 870 | 870 |
Trade Names [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | 9,000 | 9,000 |
Non-compete [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 4,790 | $ 4,790 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 6,351 | |
2023 | 6,351 | |
2024 | 6,351 | |
2025 | 6,315 | |
2026 | 6,078 | |
Thereafter | 23,165 | |
Total infinite-lived intangible assets, net | $ 54,611 | $ 60,962 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic (loss) earnings per share: | |||||||||||
Net (loss) income attributable to common stockholders (000's) | $ (74,727) | $ 9,326 | $ 28,636 | ||||||||
Weighted average shares outstanding | 27,804,355 | 27,978,519 | 29,213,910 | ||||||||
Basic (loss) earnings per share: | $ (1.79) | $ (0.59) | $ (0.14) | $ (0.19) | $ 0.10 | $ (0.19) | $ 0.15 | $ 0.27 | $ (2.69) | $ 0.33 | $ 0.98 |
Diluted (loss) earnings per share: | |||||||||||
Net (loss) income attributable to common stockholders (000's) | $ (74,727) | $ 9,326 | $ 28,636 | ||||||||
Weighted average shares outstanding | 27,804,355 | 27,978,519 | 29,213,910 | ||||||||
Add: Effect of dilutive securities | |||||||||||
Impact of unvested equity awards | 10,447 | 19,071 | |||||||||
Diluted weighted average common shares outstanding | 27,804,355 | 27,988,966 | 29,232,981 | ||||||||
Diluted (loss) earnings per share: | $ (1.79) | $ (0.59) | $ (0.14) | $ (0.19) | $ 0.10 | $ (0.19) | $ 0.15 | $ 0.27 | $ (2.69) | $ 0.33 | $ 0.98 |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Number of antidilutive shares | 2,809,453 | 2,029,162 | 1,914,770 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of assets transfer between levels | $ 0 | $ 0 |
Fair Value of Financial Measure
Fair Value of Financial Measurements - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 669,354 | $ 561,011 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 364 | 371 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 668,990 | 560,640 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
U.S. government and agency securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 73,825 | 30,593 |
U.S. government and agency securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 364 | 371 |
U.S. government and agency securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 73,461 | 30,222 |
U.S. government and agency securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
States, Municipalities and Political Subdivisions [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 105,699 | 85,670 |
States, Municipalities and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
States, Municipalities and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 105,699 | 85,670 |
States, Municipalities and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Special Revenue [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 288,569 | 274,321 |
Special Revenue [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Special Revenue [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 288,569 | 274,321 |
Special Revenue [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Hybrid Securities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 99 | 100 |
Hybrid Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Hybrid Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 99 | 100 |
Hybrid Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Industrial and Miscellaneous [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 201,162 | 170,327 |
Industrial and Miscellaneous [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Industrial and Miscellaneous [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 201,162 | 170,327 |
Industrial and Miscellaneous [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Estimated Fair Value on Nonrecurring Basis (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments, Carrying Value Balance | $ 26,409,000 | |
Other Investments, Amounts impaired | 2,200,000 | $ 0 |
Other Investments, Carrying Value Balance | 23,929,000 | 26,409,000 |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments, Carrying Value Balance | 156,459,000 | |
Other Investments, Amounts impaired | (61,523,000) | |
Other Investments, Carrying Value Balance | 94,936,000 | 156,459,000 |
Nonrecurring [Member] | Goodwill [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments, Carrying Value Balance | 152,459,000 | |
Other Investments, Amounts impaired | (60,500,000) | |
Other Investments, Carrying Value Balance | 91,959,000 | 152,459,000 |
Nonrecurring [Member] | Real Estate Corporation, Measurement Alternative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments, Carrying Value Balance | 4,000,000 | |
Other Investments, Amounts impaired | (1,023,000) | |
Other Investments, Carrying Value Balance | $ 2,977,000 | $ 4,000,000 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive (loss) income and Tax Impact of Each Component of Other Comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other comprehensive (loss) income | |||
Change in unrealized gains on investments, net, Pre-tax | $ (13,661) | $ 20,738 | $ 19,765 |
Reclassification adjustment of realized (gains) losses included in net (loss) income, Pre-tax | (64) | (22,395) | (1,734) |
Effect on other comprehensive (loss) income, Pre-tax | (13,725) | (1,657) | 18,031 |
Change in unrealized gains on investments, net, Tax | 3,081 | (4,807) | (4,575) |
Reclassification adjustment of realized (gains) losses included in net (loss) income, Tax | 14 | 5,191 | 401 |
Effect on other comprehensive (loss) income, Tax | 3,095 | 384 | (4,174) |
Change in unrealized gains on investments, net, After-tax | (10,580) | 15,931 | 15,190 |
Reclassification adjustment of realized (gains) losses included in net (loss) income | (50) | (17,204) | (1,333) |
Effect on other comprehensive (loss) income, After-tax | $ (10,630) | $ (1,273) | $ 13,857 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Other amounts receivable | $ 1,934 | $ 1,816 |
State underwriting pooling and associations | 3,956 | 4,753 |
Prepaid expense | 6,382 | 4,726 |
Premium taxes | 248 | |
Total other assets | $ 12,272 | $ 11,543 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |
Lease renewal, Description | one or more options to renew |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 1 year |
Renewal terms of lease | 2 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 10 years |
Renewal terms of lease | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Amortization of ROU assets - Finance leases | $ 1,969 | $ 98 |
Interest on lease liabilities - Finance leases | 785 | 25 |
Variable lease cost (cost excluded from lease payments) | 557 | 538 |
Operating lease cost (cost resulting from lease payments) | 1,359 | 1,362 |
Total lease cost | $ 4,670 | $ 2,023 |
Leases - Right-of-Use Lease Ass
Leases - Right-of-Use Lease Asset and Lease Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Right-of-use assets - operating | $ 5,035 | $ 5,955 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use lease asset, net | Right-of-use lease asset, net |
Right-of-use assets - finance | $ 22,718 | $ 506 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use lease asset, net | Right-of-use lease asset, net |
Lease Liability - operating | $ 6,551 | $ 7,610 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability - operating | Lease Liability - operating |
Lease Liability - finance | $ 24,621 | $ 545 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability - finance | Lease Liability - finance |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average lease term - Finance leases | 9 years 1 month 6 days | 3 years 9 months 3 days |
Weighted average lease term - Operating leases | 6 years 2 months 23 days | 6 years 11 months 26 days |
Weighted average discount rate - Finance leases | 4.18% | 6.92% |
Weighted average discount rate - Operating leases | 5.33% | 5.30% |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosure of Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Finance lease - Operating cash flows | $ 291 | $ 25 |
Finance lease - Financing cash flows | 599 | 82 |
Operating lease - Operating cash flows (fixed payments) | 1,505 | 1,452 |
Operating lease - Operating cash flows (liability reduction) | $ 1,133 | $ 1,031 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 4,566 | |
2023 | 4,500 | |
2024 | 4,194 | |
2025 | 3,970 | |
2026 | 3,990 | |
2027 and thereafter | 16,224 | |
Total lease payments | 37,444 | |
Less: imputed interest | (6,272) | |
Present value of lease liabilities | $ 31,172 | $ 8,155 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 30,257 | $ 30,091 |
Less: accumulated depreciation and amortization | (12,831) | (11,406) |
Property and equipment, net | 17,426 | 18,685 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,582 | 2,582 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 10,141 | 10,141 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 7,204 | 6,358 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,355 | 2,027 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 8,255 | 8,133 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 720 | $ 850 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)ft²aBuilding | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation and amortization expense | $ | $ 2.1 | $ 1.6 | $ 2.2 |
Number of acres of land purchased | a | 15 | ||
Number of buildings | Building | 2 | ||
Gross area of acquired property | ft² | 88,378 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Expected Annual Rental Income Due Under Non-Cancellable Operating Leases for Real Estate Properties (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Property Plant And Equipment [Abstract] | |
2022 | $ 2,763 |
2023 | 2,905 |
2024 | 2,801 |
2025 | 2,473 |
2026 | 2,525 |
2027 and Thereafter | 17,140 |
Total | $ 30,607 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Policy Acquisition Costs [Member] | |||
Deferred Reinsurance Ceding Commission [Line Items] | |||
Deferred reinsurance ceding commissions, percentage | 75.00% | ||
Ceding commission income | $ 47.1 | $ 43 | $ 47 |
General and Administrative Expenses [Member] | |||
Deferred Reinsurance Ceding Commission [Line Items] | |||
Deferred reinsurance ceding commissions, percentage | 25.00% | ||
Ceding commission income | $ 15.6 | $ 14.1 | $ 15.4 |
Deferred Reinsurance Ceding C_4
Deferred Reinsurance Ceding Commission - Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Beginning balance of deferred ceding commission income | $ 39,995 | $ 37,464 | $ 44,819 |
Ceding commission deferred | 63,131 | 59,664 | 55,095 |
Less: ceding commission earned | (62,721) | (57,134) | (62,450) |
Ending balance of deferred ceding commission income | $ 40,405 | $ 39,995 | $ 37,464 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Beginning Balance | $ 89,265 | $ 77,211 | $ 73,055 |
Policy acquisition costs deferred | 193,106 | 171,275 | 149,095 |
Amortization | (188,490) | (159,220) | (144,939) |
Ending Balance | $ 93,881 | $ 89,265 | $ 77,211 |
Reinsurance - 2021-2022 Reinsur
Reinsurance - 2021-2022 Reinsurance Tower - Catastrophe Excess of Loss Reinsurance - Segmented into Layers of Coverage - FL 1st Event - (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50 |
Excess retention amount reinsured | 40 |
Additional excess retention amount reinsured | $ 3 |
Heritage P&C [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50 |
Excess retention amount reinsured | 40 |
Additional excess retention amount reinsured | $ 3 |
Excess retention percentage | 100.00% |
Heritage P&C [Member] | Layer 4 FL - SE Only 100% of $100M xs $40M Nil Reinst. [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 100 |
Excess retention amount reinsured | $ 40 |
Reinsurance retention policy, description | Nil Reinst. |
Heritage P&C [Member] | Layer 4 FL - SE Only 100% of $100M xs $40M Nil Reinst. [Member] | First Catastrophe | Maximum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 1,432.3 |
Heritage P&C [Member] | Layer 4 FL - SE Only 100% of $100M xs $40M Nil Reinst. [Member] | First Catastrophe | Minimum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | 1,332.3 |
Heritage P&C [Member] | Layer 3 100% of $160M xs $40M [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 1,224.2 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 160 |
Excess retention amount reinsured | $ 40 |
Reinsurance retention policy, description | Nil Reinst. |
Heritage P&C [Member] | FHCF Layer 90% of $869.3M xs $354.9M ($782.4M) [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 90.00% |
Retention amount reinsured | $ 869.3 |
Excess retention amount reinsured | 354.9 |
Additional excess retention amount reinsured | 782.4 |
Heritage P&C [Member] | FHCF Layer 90% of $869.3M xs $354.9M ($782.4M) [Member] | First Catastrophe | Maximum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | 1,194 |
Heritage P&C [Member] | FHCF Layer 90% of $869.3M xs $354.9M ($782.4M) [Member] | First Catastrophe | Minimum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | 705.7 |
Heritage P&C [Member] | Layer 2 100% of $250M xs $40M 1@100% w/ RPP [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 354.9 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 250 |
Excess retention amount reinsured | $ 40 |
Excess retention percentage | 100.00% |
Heritage P&C [Member] | Layer One Reinstatement Premium Protection Cover [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 140 |
Reinsured risk percentage | 94.00% |
Retention amount reinsured | $ 100 |
Excess retention amount reinsured | $ 40 |
Excess retention percentage | 100.00% |
RPP reinsured amount | $ 94 |
Heritage P&C [Member] | Top and Agg [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 40 |
Co-Par percentage | 20.00% |
Reinsured risk percentage | 80.00% |
Retention amount reinsured | $ 20 |
Excess retention amount reinsured | 20 |
AAD reinsured amount | 10 |
Additional excess retention amount reinsured | 8 |
Heritage P&C [Member] | Retention [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 30 |
Reinsurance retention policy, description | Retention |
Reinsurance - 2021-2022 Reins_2
Reinsurance - 2021-2022 Reinsurance Tower - Catastrophe Excess of Loss Reinsurance - Segmented into Layers of Coverage - NE 1st Event - (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000 |
Excess retention amount reinsured | 40,000 |
Additional excess retention amount reinsured | $ 3,000 |
Heritage [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
Additional excess retention amount reinsured | $ 3,000 |
Layer 3 100% of $160M xs $40M Nil Reinst [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 1,224,200 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 160,000 |
Excess retention amount reinsured | $ 40,000 |
Reinsurance retention policy, description | Nil Reinst. |
Layer 2 100% of $250M xs $40M 1@100% w/ RPP [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 354,900 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 250,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
Layer 1 94% of $100M xs $40M 1@100% w/ RPP ($94M) [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 140,000 |
Reinsured risk percentage | 94.00% |
Retention amount reinsured | $ 100,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
RPP reinsured amount | $ 94,000 |
Cat 43 6% of $50M xs $40M ($3M) [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000 |
Excess retention amount reinsured | 40,000 |
RPP reinsured amount | 3,000 |
Top and Agg [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 40,000 |
Co-Par percentage | 20.00% |
Reinsured risk percentage | 80.00% |
Retention amount reinsured | $ 20,000 |
Excess retention amount reinsured | 20,000 |
Additional excess retention amount reinsured | 8,000 |
AAD reinsured amount | 10,000 |
Retention [Member] | Heritage [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 30,000 |
Reinsurance retention policy, description | Retention |
NBIC [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
Additional excess retention amount reinsured | $ 3 |
NBIC [Member] | Northeast Only 100% of $222M xs $40M Nil Reinst. [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 222,000 |
Excess retention amount reinsured | $ 40,000 |
Reinsurance retention policy, description | Nil Reinst. |
NBIC [Member] | Northeast Only 100% of $222M xs $40M Nil Reinst. [Member] | First Catastrophe | Maximum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 1,062,000 |
NBIC [Member] | Northeast Only 100% of $222M xs $40M Nil Reinst. [Member] | First Catastrophe | Minimum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | 1,061,600 |
NBIC [Member] | Multi-Zonal 100% of $290M xs $40M 1@100% w/ RPP [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 840,000 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 290,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
NBIC [Member] | Layer 3 100% of $160M xs $40M Nil Reinst [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 550,000 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 160,000 |
Excess retention amount reinsured | $ 40,000 |
Reinsurance retention policy, description | Nil Reinst. |
NBIC [Member] | Layer 2 100% of $250M xs $40M 1@100% w/ RPP [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 390,000 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 250,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
NBIC [Member] | Layer 1 94% of $100M xs $40M 1@100% w/ RPP ($94M) [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 140,000 |
Reinsured risk percentage | 94.00% |
Retention amount reinsured | $ 100,000 |
Excess retention amount reinsured | $ 40,000 |
Excess retention percentage | 100.00% |
RPP reinsured amount | $ 94,000 |
NBIC [Member] | Top and Agg [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Co-Par percentage | 20.00% |
Reinsured risk percentage | 80.00% |
Retention amount reinsured | $ 20,000 |
Excess retention amount reinsured | 20,000 |
Additional excess retention amount reinsured | 8,000 |
AAD reinsured amount | 10,000 |
NBIC [Member] | Top and Agg [Member] | First Catastrophe | Maximum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | 40,000 |
NBIC [Member] | Top and Agg [Member] | First Catastrophe | Minimum [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 30,000 |
NBIC [Member] | Top and Agg Net Quota Share [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 56.50% |
Retention amount reinsured | $ 20,000 |
RPP reinsured amount | 11,300 |
NBIC [Member] | Retention [Member] | First Catastrophe | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 20,000 |
Reinsurance retention policy, description | Retention |
Reinsurance - 2021-2022 Reins_3
Reinsurance - 2021-2022 Reinsurance Tower - Catastrophe Excess of Loss Reinsurance - Segmented into Layers of Coverage - HI 1st Event - (Detail) - First Catastrophe [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000,000 |
Excess retention amount reinsured | 40,000,000 |
Additional excess retention amount reinsured | $ 3,000,000 |
Zephyr [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Reinsured risk percentage | 6.00% |
Retention amount reinsured | $ 50,000,000 |
Excess retention amount reinsured | $ 40,000,000 |
Excess retention percentage | 100.00% |
Additional excess retention amount reinsured | $ 3,000,000 |
Zephyr [Member] | Multi-Zonal 100% of $290M xs $40M 1@100% w/ RPP [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 680,000,000 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 290,000,000 |
Excess retention amount reinsured | $ 40,000,000 |
Excess retention percentage | 100.00% |
Zephyr [Member] | Layer 2 100% of $250M xs $40M 1@100% w/ RPP [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 390,000,000 |
Reinsured risk percentage | 100.00% |
Retention amount reinsured | $ 250,000,000 |
Excess retention amount reinsured | $ 40,000,000 |
Excess retention percentage | 100.00% |
Zephyr [Member] | Layer 1 94% of $100M xs $40M 1@100% w/ RPP ($94M) [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 140,000,000 |
Reinsured risk percentage | 94.00% |
Retention amount reinsured | $ 100,000,000 |
Excess retention amount reinsured | $ 40,000,000 |
Excess retention percentage | 100.00% |
RPP reinsured amount | $ 94,000,000 |
Zephyr [Member] | Cat 43 6% of $50M xs $40M ($3M) [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 50,000,000 |
Reinsured risk percentage | 6.00% |
Excess retention amount reinsured | $ 40,000,000 |
RPP reinsured amount | 3,000,000 |
Zephyr [Member] | Top and Agg [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 40,000,000 |
Co-Par percentage | 20.00% |
Reinsured risk percentage | 80.00% |
Retention amount reinsured | $ 20,000,000 |
Excess retention amount reinsured | 20,000,000 |
AAD reinsured amount | 10,000,000 |
Additional excess retention amount reinsured | 8,000,000 |
Zephyr [Member] | Retention [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Retention under program to provide reinsurance coverage | $ 30,000 |
Reinsurance retention policy, description | Retention |
Reinsurance - 2021-2022 Reins_4
Reinsurance - 2021-2022 Reinsurance Program - Catastrophe Excess of Loss Reinsurance - Additional information - (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Purchase of reinsurance from third party | $ 533,091 | $ 452,120 | $ 445,534 |
Reinsurance payable | $ 191,728 | $ 161,918 | |
First Catastrophe [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 6.00% | ||
NBIC [Member] | First Catastrophe [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 6.00% | ||
Heritage P&C [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 6.00% | ||
Zephyr [Member] | First Catastrophe [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 6.00% | ||
FHCF [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 90.00% | ||
2021-2022 Excess of Loss Reinsurance Programs [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance purchase limit | $ 2,800,000 | ||
Reinsurance payable | 312,000 | ||
2021-2022 Excess of Loss Reinsurance Programs [Member] | NBIC [Member] | First Catastrophe [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 1,100,000 | ||
First event retention for insurance company subsidiary | $ 20,700 | ||
2021-2022 Excess of Loss Reinsurance Programs [Member] | Osprey [Member] | First Catastrophe [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Reinsurance Retention Policy Reinsured Risk Percentage | 100.00% | ||
2021-2022 Excess of Loss Reinsurance Programs [Member] | Heritage P&C [Member] | First Catastrophe [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | $ 1,430,000 | ||
First event retention for insurance company subsidiary | 32,000 | ||
2021-2022 Excess of Loss Reinsurance Programs [Member] | Zephyr [Member] | First Catastrophe [Member] | Maximum [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Retention under program to provide reinsurance coverage | 680,000 | ||
First event retention for insurance company subsidiary | $ 32,000 | ||
100.00% Aggregate Coverage [Member] | NBIC [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Percentage of aggregate contract | 100.00% |
Reinsurance - 2021-2022 Reins_5
Reinsurance - 2021-2022 Reinsurance Program - Gross Quota and Net Quota Share Reinsurance - Additional information - (Detail) - NBIC [Member] - 2021-2022 Net Quota Share Reinsurance [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Net lines quota share occurrence limit | $ 20 | |
Percentage of renewed ceded net premium and losses | 50.00% | 5.00% |
Reinsurance - 2021-2022 Reins_6
Reinsurance - 2021-2022 Reinsurance Program - Aggregate Coverage - Additional information - (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Reinsurer | Dec. 31, 2020USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Prepaid reinsurance premiums | $ 265,873 | $ 245,818 |
Number of reinstatements available | Reinsurer | 2 | |
50% Aggregate Coverage [Member] | NBIC [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Aggregate contract coverage limit | $ 20,000 | |
Excess retention amount reinsured | 21,000 | |
Occurrence cap amount | 21,000 | |
Franchise deductible amount | $ 1,000 | |
Aggregate contract expiration date | Mar. 31, 2022 | |
Percentage of aggregate contract | 50.00% | |
100.00% Aggregate Coverage [Member] | NBIC [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Aggregate contract coverage limit | $ 20,000 | |
Excess retention amount reinsured | $ 20,000 | |
Aggregate contract expiration date | Dec. 31, 2022 | |
Percentage of aggregate contract | 100.00% | |
Number of reinstatements available | Reinsurer | 1 |
Reinsurance - 2021-2022 Reins_7
Reinsurance - 2021-2022 Reinsurance Program - Additional information (Detail) | 12 Months Ended | |||
Dec. 31, 2021USD ($)ReinsurerLayer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 590,166,000 | $ 659,341,000 | $ 613,533,000 | $ 432,359,000 |
Reinsurance payable | $ 191,728,000 | $ 161,918,000 | ||
Number of reinstatements available | Reinsurer | 2 | |||
Facultative Reinsurance [Member] | Maximum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | $ 10,000,000 | |||
Facultative Reinsurance [Member] | Minimum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Facultative reinsurance purchase amount | $ 10,000,000 | |||
NBIC [Member] | General Excess of Loss 2021-2022 Reinsurance Program [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Number of layers in excess of retention loss | Layer | 2 | |||
Retention under program to provide reinsurance coverage | $ 500,000 | |||
NBIC [Member] | General Excess of Loss 2021-2022 Reinsurance Program [Member] | First Layer Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 250,000 | |||
Excess retention amount reinsured | 500,000 | |||
NBIC [Member] | General Excess of Loss 2021-2022 Reinsurance Program [Member] | Second Layer Coverage for Property Losses [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 2,750,000 | |||
Excess retention amount reinsured | 750,000 | |||
NBIC [Member] | General Excess of Loss 2021-2022 Reinsurance Program [Member] | Casualty Losses for Second Layer [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Retention under program to provide reinsurance coverage | 1,250,000 | |||
Excess retention amount reinsured | 750,000 | |||
NBIC [Member] | Facultative 2021 - 2022 Excess of Loss Reinsurance Program [Member] | Minimum [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Reinsurance payable | $ 3,500,000 | |||
Commercial Residential Losses [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Number of reinstatements available | Reinsurer | 2 | |||
Insurance Claims [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | |||
Insurance Claims [Member] | Commercial Residential Losses [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Unpaid losses and loss adjustment expenses | 750,000 | |||
Property Per Risk Coverage [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 9,000,000 | |||
Reinsurance payable | 27,000,000 | |||
Property Per Risk Coverage [Member] | Commercial Residential Losses [Member] | NBIC [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Coverage limit | 250,000 | |||
Reinsurance payable | $ 750,000 |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premiums Written | |||||||||||
Premiums Written, Direct | $ 1,164,879 | $ 1,080,100 | $ 937,937 | ||||||||
Premiums Written, Ceded | (553,147) | (473,836) | (436,564) | ||||||||
Premiums Written, Net | 611,732 | 606,264 | 501,373 | ||||||||
Premiums Earned | |||||||||||
Premiums Earned, Direct | 1,144,162 | 996,842 | 924,247 | ||||||||
Premiums Earned, Ceded | (533,091) | (452,120) | (445,534) | ||||||||
Net premiums earned | $ 159,928 | $ 162,445 | $ 146,499 | $ 142,199 | $ 151,430 | $ 138,230 | $ 129,057 | $ 126,006 | 611,071 | 544,722 | 478,713 |
Losses and Loss Adjustment Expenses | |||||||||||
Losses and Loss Adjustment Expenses, Direct | 625,748 | 609,593 | 696,289 | ||||||||
Losses and Loss Adjustment Expenses, Ceded | (198,378) | (236,206) | (423,001) | ||||||||
Losses and Loss Adjustment Expenses, Net | $ 427,370 | $ 373,387 | $ 273,288 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Balance, beginning of period | $ 659,341 | $ 613,533 | $ 432,359 |
Less: reinsurance recoverable on unpaid losses | 397,688 | 393,630 | 250,507 |
Net balance, beginning of period | 261,653 | 219,903 | 181,852 |
Incurred related to: | |||
Current year | 430,907 | 392,976 | 276,985 |
Prior years | (3,537) | (19,589) | (3,696) |
Total incurred | 427,370 | 373,387 | 273,289 |
Paid related to: | |||
Current year | 247,903 | 228,394 | 137,764 |
Prior years | 152,711 | 103,243 | 97,474 |
Total paid | 400,614 | 331,637 | 235,238 |
Net balance, end of period | 288,409 | 261,653 | 219,903 |
Plus: reinsurance recoverable on unpaid losses | 301,757 | 397,688 | 393,630 |
Balance, end of period | $ 590,166 | $ 659,341 | $ 613,533 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Losses incurred favorable development | $ (3,537) | $ (19,589) | $ (3,696) |
Reserve for Unpaid Losses - S_2
Reserve for Unpaid Losses - Summary of Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2021USD ($)Claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,115,883 | |||||||||
Net IBNR Reserves | 204,149 | |||||||||
Accident Year 2012 And Prior [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | 106,506 | $ 106,437 | $ 106,628 | $ 106,446 | $ 106,654 | $ 106,331 | $ 106,493 | $ 107,842 | $ 105,765 | $ 102,723 |
Net IBNR Reserves | $ 22 | |||||||||
Reported Claims | Claim | 53,356 | |||||||||
Accident Year 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 62,812 | 62,829 | 62,564 | 62,378 | 62,354 | 62,166 | 62,969 | 61,483 | $ 61,157 | |
Net IBNR Reserves | $ 48 | |||||||||
Reported Claims | Claim | 13,098 | |||||||||
Accident Year 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 115,708 | 115,409 | 115,234 | 115,838 | 114,984 | 113,847 | 114,899 | $ 118,991 | ||
Net IBNR Reserves | $ 321 | |||||||||
Reported Claims | Claim | 18,493 | |||||||||
Accident Year 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 204,961 | 205,437 | 206,011 | 205,164 | 203,792 | 197,744 | $ 179,255 | |||
Net IBNR Reserves | $ 1,154 | |||||||||
Reported Claims | Claim | 26,120 | |||||||||
Accident Year 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 250,482 | 250,067 | 250,235 | 250,990 | 242,611 | $ 237,207 | ||||
Net IBNR Reserves | $ 3,226 | |||||||||
Reported Claims | Claim | 27,606 | |||||||||
Accident Year 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 195,602 | 194,618 | 192,749 | 195,240 | $ 189,163 | |||||
Net IBNR Reserves | $ 3,226 | |||||||||
Reported Claims | Claim | 73,260 | |||||||||
Accident Year 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 198,064 | 192,474 | 193,672 | $ 199,565 | ||||||
Net IBNR Reserves | $ 2,688 | |||||||||
Reported Claims | Claim | 34,281 | |||||||||
Accident Year 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 228,419 | 231,545 | $ 258,876 | |||||||
Net IBNR Reserves | $ 12,599 | |||||||||
Reported Claims | Claim | 26,007 | |||||||||
Accident Year 2020 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 364,380 | $ 370,058 | ||||||||
Net IBNR Reserves | $ 36,620 | |||||||||
Reported Claims | Claim | 34,948 | |||||||||
Accident Year 2021 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 388,949 | |||||||||
Net IBNR Reserves | $ 144,245 |
Reserve for Unpaid Losses - S_3
Reserve for Unpaid Losses - Summary of Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,839,694 | $ 210,548 | ||||||||
Accident Year 2012 And Prior [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 106,747 | 106,689 | $ 106,475 | $ 105,875 | $ 105,053 | $ 104,362 | $ 104,093 | $ 102,750 | $ 101,323 | $ 92,909 |
Accident Year 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 62,337 | 62,235 | 61,191 | 60,581 | 59,395 | 57,647 | 55,589 | 50,716 | $ 35,771 | |
Accident Year 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 114,898 | 113,975 | 113,609 | 112,518 | 108,509 | 101,456 | 95,076 | $ 68,732 | ||
Accident Year 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 201,495 | 199,600 | 197,524 | 192,967 | 181,672 | 162,654 | $ 103,918 | |||
Accident Year 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 244,820 | 241,875 | 238,868 | 233,540 | 211,512 | $ 132,679 | ||||
Accident Year 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 188,928 | 184,313 | 178,622 | 169,743 | $ 103,148 | |||||
Accident Year 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 187,386 | 170,301 | 152,592 | $ 84,552 | ||||||
Accident Year 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 205,442 | $ 185,667 | $ 124,664 | |||||||
Accident Year 2020 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 313,811 | |||||||||
Accident Year 2021 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 213,830 |
Reserve for Unpaid Losses - S_4
Reserve for Unpaid Losses - Summary of Reconciliation of Reserve Balances to Liability for Unpaid Loss and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||||
Unpaid Loss and Allocated Loss Adjustment Expense, Net of Reinsurance | $ 276,197 | |||
Reinsurance recoverable on unpaid losses | 301,757 | $ 397,688 | $ 393,630 | $ 250,507 |
Unpaid Unallocated Loss Adjustment Expense | 12,212 | |||
Unpaid losses and loss adjustment expenses | $ 590,166 | $ 659,341 | $ 613,533 | $ 432,359 |
Reserve for Unpaid Losses - S_5
Reserve for Unpaid Losses - Summary of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Detail) | Dec. 31, 2021 |
Insurance [Abstract] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 1 | 56.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 2 | 29.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 3 | 6.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 4 | 9.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Year - 5 | 0.00% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Thereafter | 0.00% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jul. 28, 2021 | Mar. 31, 2021 | Feb. 19, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2021 | Jul. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 27, 2021 | Jun. 01, 2020 | Apr. 27, 2020 | Sep. 30, 2017 | Aug. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, net | $ 120,757,000 | $ 120,757,000 | $ 120,998,000 | ||||||||||||
Convertible notes converted into common stock | $ 4,210,000 | ||||||||||||||
Loss on repurchase of convertible notes | 0 | 0 | (48,000) | ||||||||||||
Payout dividends, aggregate amount | 6,709,000 | 6,852,000 | 6,959,000 | ||||||||||||
Maximum [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Payout dividends, aggregate amount | 10,000,000 | ||||||||||||||
Federal Home Loan Bank Of Atlanta [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes maturity date | Dec. 13, 2023 | ||||||||||||||
Interest paid | 601,000 | 604,000 | |||||||||||||
Estimated fair value of collateral with FHLB | 22,500,000 | 22,500,000 | |||||||||||||
Cash loan received under advance from FHLB | $ 19,200,000 | ||||||||||||||
FHLB advance Interest rate | 3.094% | ||||||||||||||
Required fair value of reinvestment in FHLB common stock. | $ 1,400,000 | 1,400,000 | 1,400,000 | ||||||||||||
Federal Home Loan Bank Des Moines [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest paid | 215,900 | 215,900 | |||||||||||||
Federal Home Loan Bank Boston [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest paid | 222,900 | 222,900 | |||||||||||||
Heritage Insurance Holdings, Inc. [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Payout dividends, aggregate amount | $ 6,673,000 | 6,772,000 | $ 6,959,000 | ||||||||||||
Regions Bank [Member] | Standby Letters of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayment of line of credit | $ 31,500,000 | ||||||||||||||
Convertible Note [Member] | Heritage Insurance Holdings, Inc. [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Shares issued for consideration of repurchase debt | 285,201 | ||||||||||||||
Convertible notes converted into common stock | $ 4,200,000 | ||||||||||||||
Repurchase of convertible notes | 5,800,000 | ||||||||||||||
Cash consideration paid for repurchase of debt | 2,900,000 | ||||||||||||||
Non-operating loss extinguishment of debt | $ 48,000 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Shares issued for consideration of repurchase debt | 285,201 | ||||||||||||||
Convertible Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 136,800,000 | ||||||||||||||
Interest rate | 5.875% | 5.875% | |||||||||||||
Notes maturity date | Aug. 1, 2037 | ||||||||||||||
Interest payments term | Interest is payable semi-annually in arrears, on February 1 and August 1 of each year. | ||||||||||||||
Long-term debt, net | 22,900,000 | $ 22,900,000 | 22,100,000 | $ 21,300,000 | |||||||||||
Issuance and debt discount costs | 506,000 | 506,000 | 1,300,000 | 2,100,000 | |||||||||||
Interest paid | $ 1,400,000 | 1,400,000 | 1,500,000 | ||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Convertible Senior Notes [Member] | Subsidiary [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repurchase of convertible notes | 21,100,000 | $ 21,100,000 | 21,100,000 | $ 21,100,000 | |||||||||||
Convertible Senior Notes [Member] | August 1, 2022 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Convertible Senior Notes [Member] | August 1, 2027 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Convertible Senior Notes [Member] | August 1, 2032 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt Instrument redemption price, percentage | 100.00% | ||||||||||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 12,700,000 | ||||||||||||||
Interest rate | 4.95% | ||||||||||||||
Notes maturity date | Oct. 30, 2027 | ||||||||||||||
Frequency of periodic principal and interest payments | monthly | ||||||||||||||
Payment of principal and interest | $ 892,850 | 892,850 | |||||||||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | 5-year Treasury Security [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.10% | ||||||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes maturity period | 5 years | ||||||||||||||
Maximum borrowing capacity | 125,000,000 | $ 125,000,000 | |||||||||||||
Senior Secured Credit Facility [Member] | Second Amendment [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Covenant description | The Second Amendment modified the negative covenants in the Credit Agreement to permit the Company to make acquisitions and investments if, after giving effect to the acquisition or investment, either (1) the Company has an aggregate of $25.0 million in cash and availability under the revolving credit facility or (2) the consolidated leverage ratio under the Credit Agreement is at least a quarter turn less than the required ratio for the trailing four quarters. | ||||||||||||||
Senior Secured Credit Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate terms | borrowings under the Credit Facilities bear interest at rates equal to either (1) a rate determined by reference to LIBOR (based on one, two, three or six-month interest periods), adjusted for statutory reserve requirements, plus an applicable margin or (2) a base rate determined by reference to the greatest of (a) the “prime rate” of Regions Bank, (b) the federal funds rate plus 0.50%, and (c) the LIBOR index rate applicable for an interest period of one month plus 1.00%, plus an applicable margin. | ||||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | 50,000,000 | $ 50,000,000 | |||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Second Amendment [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate availability amount | $ 25,000,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest paid | $ 196,500 | 403,000 | |||||||||||||
Notes maturity period | 5 years | ||||||||||||||
Maximum borrowing capacity | 75,000,000 | $ 75,000,000 | |||||||||||||
Outstanding borrowing capacity amount | 0 | 0 | 0 | ||||||||||||
Letters of credit outstanding amount | 0 | 0 | 0 | ||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal payments | 875,000 | $ 3,800,000 | |||||||||||||
Interest paid | 846,270,000,000 | 1,200,000 | $ 2,600,000 | ||||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |||||||||||||
Effective interest rate | 2.9375% | 2.9375% | |||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 70,000,000 | $ 70,000,000 | $ 70,000,000 | $ 70,000,000 | $ 56,250,000 | ||||||||||
Notes maturity date | Jul. 27, 2026 | ||||||||||||||
Notes maturity period | 5 years | ||||||||||||||
Maximum borrowing capacity | 75,000,000 | $ 75,000,000 | |||||||||||||
Term loan, Increase in the period | $ 13,750,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | Third Amendment [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 40,000,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | 5,000,000 | 5,000,000 | |||||||||||||
Senior Secured Credit Facility [Member] | Swingline Loan [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | |||||||||||||
Senior Secured Credit Facility [Member] | Federal Funds Rate [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||||||||
Senior Secured Credit Facility [Member] | London Interbank Offered Rate L I B O R [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Payable Which Began with Close of Fiscal Quarter Ending March 31, 2019 [Member] | Term Loan Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal payments | $ 1,900,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Payable Commencing with Quarter Ending December 31, 2021 [Member] | Term Loan Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal payments | 875,000 | ||||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Payable Commencing with Quarter Ending December 31, 2024 [Member] | Term Loan Facility [Member] | Amended Credit Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal payments | $ 1,300,000 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount | $ 123,259 | $ 124,440 |
Deferred finance costs | 2,502 | 3,442 |
Total long-term debt | 120,757 | 120,998 |
Credit Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 69,125 | 60,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 10,000 | |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 23,413 | 23,413 |
FHLB Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 19,200 | 19,200 |
Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 11,521 | $ 11,827 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 3,822 | |
2023 | 23,039 | |
2024 | 4,292 | |
2025 | 5,624 | |
2026 | 53,331 | |
Thereafter | 33,151 | |
Total principal payments | $ 123,259 | $ 124,440 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal: | |||
Current | $ 3,015 | $ (14,863) | $ 9,674 |
Deferred | (5,872) | 6,859 | 584 |
(Benefit)/provision for Federal income tax | (2,857) | (8,004) | 10,258 |
State: | |||
Current | 1,634 | 1,501 | 1,785 |
Deferred | (84) | (610) | 317 |
Provision for State income tax expense | 1,550 | 891 | 2,102 |
(Benefit)/provision for income taxes | $ (1,307) | $ (7,113) | $ 12,360 |
Income Taxes - Summary of U.S.
Income Taxes - Summary of U.S. Federal Income Tax Rate to Pretax Income (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense at federal rate | 21.00% | 21.00% | 21.00% |
State tax expense | (1.00%) | 25.90% | 3.60% |
Permanent items | (0.50%) | 16.00% | 0.90% |
Goodwill impairment | (16.70%) | ||
Non-deductible stock compensation | (0.20%) | 22.40% | (0.40%) |
Tax exempt interest | (0.10%) | 18.40% | 1.60% |
Executive compensation 162(m) | (0.20%) | 20.30% | 6.10% |
Political contributions | (0.20%) | 6.20% | 0.30% |
Tax rate change | (0.50%) | (409.10%) | 0.60% |
Other | 0.00% | (5.60%) | (0.40%) |
Reported income tax expense | 1.70% | (321.30%) | 30.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Mar. 27, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax [Line Items] | |||
Capital loss carryforward | $ 0 | ||
Goodwill amortized for income tax purposes | 4,400,000 | $ 4,900,000 | |
Non-deductable goodwill | 87,300,000 | $ 144,400,000 | |
Uncertain tax positions | $ 0 | ||
CARES Act [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carryback period | 5 years | ||
Tax benefit from carrying back net operating losses | $ 7,100,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Unearned premiums | $ 15,805 | $ 15,303 |
Unearned commission | 9,459 | 9,272 |
Net operating loss | 1,222 | 1,885 |
Tax-related discount on loss reserve | 3,872 | 3,322 |
Stock-based compensation | 84 | 113 |
Accrued expenses | 1,182 | 982 |
Leases | 792 | 394 |
Unrealized losses | 1,913 | |
Other | 472 | 343 |
Total deferred tax asset | 34,801 | 31,614 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 21,977 | 20,694 |
Prepaid expenses | 177 | 236 |
Unrealized gain | 1,814 | |
Property and equipment | 1,504 | 1,669 |
Note discount | 187 | 326 |
Basis in purchased investments | 34 | 53 |
Basis in purchased intangibles | 14,550 | 15,693 |
Internal revenue code 481(a)-Accounting method change | 4,416 | 8,577 |
Other | 1,382 | 1,029 |
Total deferred tax liabilities | 44,227 | 50,091 |
Net deferred tax liability | $ (9,426) | $ (18,477) |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net loss of insurance subsidiary | $ (38,300,000) | $ (24,300,000) | |
Dividends paid | $ 6,709,000 | 6,852,000 | $ 6,959,000 |
Date of incorporation | Apr. 23, 2013 | ||
Maximum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividends paid | $ 10,000,000 | ||
Florida [Member] | Maximum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | ||
Rhode Island [Member] | Maximum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | ||
Hawaii [Member] | Maximum [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Permitted dividend rate without prior approval of insurance regulatory authority | 10.00% | ||
Heritage P&C [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | greater of $15 million or 10% of their respective liabilities. | ||
Minimum required amount of capital and surplus maintained by the insurance subsidiary | $ 15,000,000 | ||
Statutory capital and surplus requirements, percentage | 10.00% | ||
Zephyr | |||
Statutory Accounting Practices [Line Items] | |||
Deposits held | $ 750,000 | ||
Dividends paid | 6,800,000 | 13,700,000 | |
NBIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 3,000,000 | ||
Heritage P&C, NBIC, and Zephyr [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 302,100,000 | 333,300,000 | |
Heritage P&C and NBIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividends paid | $ 0 | $ 0 | $ 0 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 40,406 | $ 39,995 |
Outstanding claim checks | 10,864 | |
Accounts payable and other payables | 10,086 | 9,248 |
Accrued dividends | 1,634 | 1,670 |
Accrued interest and issuance costs | 735 | 833 |
Other liabilities | 195 | 80 |
Premium tax | 871 | |
Commission payables | 17,598 | 18,245 |
Total other liabilities | $ 71,525 | $ 80,935 |
Accrued Bonus Compensation - Ad
Accrued Bonus Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Accrued Bonus Compensation [Line Items] | ||
Accrued employee's bonus compensation | $ 6.4 | $ 3.4 |
severance payment due | 2.1 | |
Accrued bonuses payable | $ 2.9 | $ 3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Comegys Insurance Agency, Inc. [Member] | ||
Related Party Transaction [Line Items] | ||
Agency commission | $ 843,180 | $ 1,000,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution for participating employees | $ 1,300,000 | $ 1,200,000 |
Defined Contribution Plan, Plan Name | 401(k) | |
Medical premium cost | $ 3,500,000 | 4,100,000 |
Additional liability for unpaid claims | $ 422,800 | $ 1,400,000 |
Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 4.00% | |
First 3% of Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 100.00% | |
Next 2% of the Employees [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of contribution on employee salary | 50.00% |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | Nov. 02, 2020 | Aug. 01, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Class Of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Preferred stock, shares authorized | 5,000,000 | ||||||||||
Common stock, shares outstanding | 27,748,606 | 26,753,511 | 27,748,606 | 27,748,606 | |||||||
Treasury stock, shares | 9,279,839 | 10,536,737 | 9,279,839 | 9,279,839 | |||||||
Unvested restricted common stock issued | 283,092 | ||||||||||
Additional paid-in capital | $ 331,867,000 | $ 332,797,000 | $ 331,867,000 | $ 331,867,000 | |||||||
Common stock voting rights | one vote | ||||||||||
Stock repurchase program, authorized amount | $ 23,800,000 | $ 50,000,000 | |||||||||
Stock repurchase program, expiration date | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | ||||||||
Treasury shares repurchased, shares | 1,256,898 | 2,065,042 | |||||||||
Treasury shares repurchased, value | $ 8,192,000 | 9,997,000 | $ 16,183,000 | $ 26,200,000 | |||||||
Cash dividend | $ 1,680,149 | $ 1,680,432 | $ 1,677,911 | $ 1,670,032 | 6,674,000 | $ 6,772,000 | $ 7,120,000 | ||||
New Share Repurchase Plan [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 25,000,000 | ||||||||||
Restricted Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Unvested restricted common stock issued | 100,267 | 283,092 | 100,267 | 345,534 | 100,267 | 605,801 |
Equity - Summary of Cash Divide
Equity - Summary of Cash Dividends (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Total cash dividends paid | $ 1,680,149 | $ 1,680,432 | $ 1,677,911 | $ 1,670,032 | $ 6,674,000 | $ 6,772,000 | $ 7,120,000 |
Record date | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 15, 2021 | Dec. 15, 2020 | |||
Payment date | Oct. 6, 2021 | Jul. 6, 2021 | Apr. 6, 2021 | Jan. 15, 2021 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Dec. 27, 2023 | Dec. 27, 2022 | Dec. 27, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 22, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Maximum tenure of stock option from the date of grant | 10 years | |||||||||
Shares withheld to cover withholding taxes, value | $ (3,521,000) | |||||||||
Unrecognized expense related to non-vested stock | $ 1,100,000 | |||||||||
Minimum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Maximum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Restricted Stock One [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 10,000 | |||||||||
Number of shares granted fair value | $ 10.60 | |||||||||
Vesting period | 2 years | |||||||||
Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 15,000 | 0 | ||||||||
Number of shares granted fair value | $ 10.68 | |||||||||
Stock-based compensation expense | $ 1,200,000 | $ 4,700,000 | $ 5,400,000 | |||||||
Restricted stock vested and released | 71,968 | 260,267 | ||||||||
Shares withheld to cover withholding taxes | 28,257 | 247,223 | 237,620 | |||||||
Shares withheld to cover withholding taxes, value | $ 231,000 | $ 2,400,000 | $ 3,500 | |||||||
Recognized tax benefit from restricted stock awards and related paid dividends | $ 0 | $ 0 | $ 0 | |||||||
Restricted Stock [Member] | Minimum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 1 year | |||||||||
Restricted Stock [Member] | Minimum [Member] | Employee [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Restricted Stock [Member] | Maximum [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Restricted Stock [Member] | Maximum [Member] | Employee [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Restricted Stock Two [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 5,000 | |||||||||
Number of shares granted fair value | $ 10.83 | |||||||||
Vesting period | 12 months | |||||||||
Performance-Based Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unrecognized expense related to non-vested stock | $ 1,000,000 | $ 1,000,000 | ||||||||
Time-based and Performance-based Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 254,793 | |||||||||
Time-Based Unvested Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unrecognized expense related to non-vested stock | $ 1,000,000 | $ 1,000,000 | ||||||||
Omnibus Incentive Plan [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Common stock reserved for issuance | 2,981,737 | |||||||||
Shares available for grant | 870,733 | 870,733 | ||||||||
Omnibus Incentive Plan [Member] | Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 18,159 | |||||||||
Grant date fair value per share | $ 6.89 | |||||||||
Omnibus Incentive Plan [Member] | Time Based Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 14,006 | 47,939 | ||||||||
Grant date fair value per share | $ 10.71 | $ 10.43 | ||||||||
Shares vesting in equal instalments | 15,979 | |||||||||
Omnibus Incentive Plan [Member] | Time Based Restricted Stock [Member] | Chief Financial Officer [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares vesting in equal instalments | 4,668 | |||||||||
Omnibus Incentive Plan [Member] | Time Based Restricted Stock [Member] | Scenario Forecast [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares vesting in equal instalments | 15,980 | 15,980 | ||||||||
Omnibus Incentive Plan [Member] | Time Based Restricted Stock [Member] | Scenario Forecast [Member] | Chief Financial Officer [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares vesting in equal instalments | 4,669 | 4,669 | ||||||||
Omnibus Incentive Plan [Member] | Performance-Based Restricted Stock [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Unvested restricted shares issued | 50,799 | 28,012 | 95,878 | |||||||
Grant date fair value per share | $ 6.89 | $ 10.71 | $ 10.43 | |||||||
Vesting period | 3 years | 3 years | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Ending balance, Number of shares | 283,092 | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of shares | 100,267 | 345,534 | 605,801 |
Granted, Number of shares | 15,000 | 0 | |
Vested, Number of shares | (43,711) | (13,044) | (22,647) |
Canceled and surrendered, Number of shares | (28,257) | (247,223) | (237,620) |
Ending balance, Number of shares | 283,092 | 100,267 | 345,534 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ 15.37 | $ 19.56 | $ 20.41 |
Granted, Weighted-Average Grant-Date Fair Value per Share | 10.68 | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | 9.61 | 13.17 | 14.28 |
Canceled and surrendered, Weighted-Average Grant-Date Fair Value per Share | 10.69 | 9.49 | 14.82 |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ 9.32 | $ 15.37 | $ 19.56 |
Restricted Stock [Member] | Performance-Based Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of shares | 174,689 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 9.45 | ||
Restricted Stock [Member] | Time-Based Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of shares | 80,104 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 9.68 |
Stock-Based Compensation - Ad_2
Stock-Based Compensation - Additional Information Regarding Outstanding Unvested Restricted Stock (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted common stock issued | 283,092 | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted common stock issued | 283,092 | 100,267 | 345,534 | 605,801 |
Share Value at Grant Date Per Share | $ 10.68 | |||
Restricted Stock [Member] | February 12, 2018 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Grant date | Feb. 12, 2018 | |||
Unvested restricted common stock issued | 50,000 | |||
Share Value at Grant Date Per Share | $ 16.35 | |||
Remaining Restriction Period (Years) | 1 year | |||
Restricted Stock [Member] | April 24, 2020 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Grant date | Apr. 24, 2020 | |||
Unvested restricted common stock issued | 5,000 | |||
Share Value at Grant Date Per Share | $ 10.60 | |||
Remaining Restriction Period (Years) | 3 months | |||
Restricted Stock [Member] | January 4, 2021 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Grant date | Jan. 4, 2021 | |||
Unvested restricted common stock issued | 127,837 | |||
Share Value at Grant Date Per Share | $ 10.43 | |||
Remaining Restriction Period (Years) | 2 years | |||
Restricted Stock [Member] | April 13, 2021 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Grant date | Apr. 13, 2021 | |||
Unvested restricted common stock issued | 37,349 | |||
Share Value at Grant Date Per Share | $ 10.71 | |||
Remaining Restriction Period (Years) | 2 years | |||
Restricted Stock [Member] | October 18, 2021 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Grant date | Oct. 18, 2021 | |||
Unvested restricted common stock issued | 62,906 | |||
Share Value at Grant Date Per Share | $ 6.89 | |||
Remaining Restriction Period (Years) | 2 years |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net premiums earned | $ 159,928 | $ 162,445 | $ 146,499 | $ 142,199 | $ 151,430 | $ 138,230 | $ 129,057 | $ 126,006 | $ 611,071 | $ 544,722 | $ 478,713 |
Investment income | 1,855 | 1,548 | 956 | 1,293 | 2,519 | 2,817 | 3,296 | 3,670 | |||
Total revenues | 166,712 | 167,408 | 150,197 | 147,243 | 159,548 | 165,119 | 136,012 | 132,706 | 631,561 | 593,385 | 511,305 |
Total operating expenses | 209,578 | 182,785 | 154,187 | 153,075 | 164,604 | 169,601 | 129,049 | 119,946 | 699,625 | 583,200 | 461,738 |
Operating (loss) income | (42,865) | (15,377) | (3,990) | (5,832) | (5,056) | (4,482) | 6,963 | 12,760 | (68,064) | 10,185 | 49,567 |
Net (loss) income | $ (49,218) | $ (16,410) | $ (3,950) | $ (5,148) | $ 2,808 | $ (5,233) | $ 4,132 | $ 7,620 | $ (74,727) | $ 9,326 | $ 28,636 |
Basic | $ (1.79) | $ (0.59) | $ (0.14) | $ (0.19) | $ 0.10 | $ (0.19) | $ 0.15 | $ 0.27 | $ (2.69) | $ 0.33 | $ 0.98 |
Diluted | $ (1.79) | $ (0.59) | $ (0.14) | $ (0.19) | $ 0.10 | $ (0.19) | $ 0.15 | $ 0.27 | $ (2.69) | $ 0.33 | $ 0.98 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Results (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Goodwill impairment | $ 60,500 | $ 60,500 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 |
Subsequent Event [Line Items] | ||||||
Cash dividend, payable date | Oct. 6, 2021 | Jul. 6, 2021 | Apr. 6, 2021 | Jan. 15, 2021 | ||
Dividend payable, record date | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 15, 2021 | Dec. 15, 2020 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per common share | $ 0.06 | |||||
Dividend payable, record date | Mar. 17, 2022 | |||||
Subsequent Event [Member] | Convertible Senior Notes [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase of convertible notes | $ 11.7 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Outstanding borrowing capacity amount | $ 15 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||||
Cash and cash equivalents | $ 359,337 | $ 440,956 | ||
Other assets | 12,272 | 11,543 | ||
Total Assets | 1,980,762 | 2,089,379 | ||
LIABILITIES | ||||
Other liabilities | 71,525 | 80,935 | ||
Total Liabilities | 1,637,711 | 1,647,035 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock | 3 | 3 | ||
Treasury | (123,557) | (115,365) | ||
Accumulated other comprehensive income, net of taxes | (4,573) | 6,057 | ||
Retained earnings | 138,381 | 219,782 | ||
Total Stockholders' Equity | 343,051 | 442,344 | $ 448,799 | $ 425,333 |
Heritage Insurance Holdings, Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 6,404 | 5,865 | ||
Investment in and advances to subsidiaries | 484,096 | 574,548 | ||
Other assets | 4,728 | 4,944 | ||
Total Assets | 495,227 | 585,357 | ||
LIABILITIES | ||||
Other liabilities | 152,177 | 143,013 | ||
Total Liabilities | 152,177 | 143,013 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock | 3 | 3 | ||
Paid-in-capital | 332,797 | 331,867 | ||
Treasury | (123,557) | (115,365) | ||
Accumulated other comprehensive income, net of taxes | (4,573) | 6,057 | ||
Retained earnings | 138,381 | 219,782 | ||
Total Stockholders' Equity | 343,051 | 442,344 | ||
Total Liabilities and Stockholders' Equity | $ 495,227 | $ 585,357 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue: | ||||||||||||
Other revenue | $ 14,854 | $ 13,966 | $ 13,997 | |||||||||
Total revenue | $ 166,712 | $ 167,408 | $ 150,197 | $ 147,243 | $ 159,548 | $ 165,119 | $ 136,012 | $ 132,706 | 631,561 | 593,385 | 511,305 | |
Expenses: | ||||||||||||
General and administrative expense | [1] | 65,787 | 81,537 | 80,544 | ||||||||
Interest expense, net | 7,970 | 7,972 | 8,523 | |||||||||
Other non-operating expense, net | 48 | |||||||||||
Benefit from income taxes | (1,307) | (7,113) | 12,360 | |||||||||
Net (loss) income | $ (49,218) | $ (16,410) | $ (3,950) | $ (5,148) | $ 2,808 | $ (5,233) | $ 4,132 | $ 7,620 | (74,727) | 9,326 | 28,636 | |
Heritage Insurance Holdings, Inc. [Member] | ||||||||||||
Revenue: | ||||||||||||
Other revenue | 1,511 | 5,717 | 6,180 | |||||||||
Total revenue | 1,511 | 5,717 | 6,180 | |||||||||
Expenses: | ||||||||||||
General and administrative expense | 10,498 | 13,021 | 11,699 | |||||||||
Amortization of debt issuance cost | 2,500 | 2,128 | 2,190 | |||||||||
Interest expense, net | 5,895 | 7,769 | 7,609 | |||||||||
Other non-operating expense, net | 0 | 48 | ||||||||||
Total expenses | 18,893 | 22,918 | 21,546 | |||||||||
Loss before income taxes and equity in net income of subsidiaries | (17,382) | (17,201) | (15,366) | |||||||||
Benefit from income taxes | (3,526) | (3,425) | (511) | |||||||||
Loss before equity in net income of subsidiaries | (13,856) | (13,776) | (14,855) | |||||||||
Equity in net income of subsidiaries | (60,871) | 23,102 | 43,491 | |||||||||
Net (loss) income | $ (74,727) | $ 9,326 | $ 28,636 | |||||||||
[1] | General and administration includes $ 15.6 million, $ 14.1 million and $ 15.4 million of ceding commission income for the reporting years 2021, 2020 and 2019, respectively . |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||||
Net loss | $ (74,727) | $ 9,326 | $ 28,636 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Stock-based compensation | 1,161 | 4,683 | 5,379 | |
Net realized gains | (64) | (22,395) | (1,734) | |
Amortization of debt issuance cost | 1,784 | 1,415 | 1,419 | |
Deferred income taxes | (5,956) | 6,238 | (898) | |
Goodwill impairment | $ 60,500 | 60,500 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Income taxes payable | 0 | 0 | 12,624 | |
Accrued interest on debt | 26 | (214) | 175 | |
Other assets | (729) | 291 | (1,728) | |
Other liabilities | (9,278) | 18,131 | (36,071) | |
Net cash provided by operating activities | 60,130 | 170,211 | 119,657 | |
Investing Activities | ||||
Collection of principle note receivable | 0 | 0 | 358 | |
Net cash (used in) provided by investing activities | (124,480) | 22,062 | (53,585) | |
Financing Activities | ||||
Mortgage loan payments | (306) | (290) | (277) | |
Repurchase of convertible notes | 0 | 0 | (2,869) | |
Shares tendered for income tax withholdings | (231) | (2,384) | (3,521) | |
Purchase of treasury stock | (8,192) | (9,997) | (16,183) | |
Dividends | (6,709) | (6,852) | (6,959) | |
Net cash used in financing activities | (17,281) | (28,898) | (45,434) | |
(Decrease) increase in cash, cash equivalents, and restricted cash | (81,631) | 163,375 | 20,638 | |
Cash, cash equivalents and restricted cash, beginning of period | 446,383 | 283,008 | 262,370 | |
Cash, cash equivalents and restricted cash, end of period | 364,752 | 364,752 | 446,383 | 283,008 |
Heritage Insurance Holdings, Inc. [Member] | ||||
Cash flows from operating activities: | ||||
Net loss | (13,856) | (13,776) | (14,855) | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Stock-based compensation | 1,161 | 4,683 | 5,379 | |
Net realized gains | 49 | |||
Amortization of debt issuance cost | 1,657 | |||
Impairment on other investments | 1,157 | |||
Deferred income taxes | (69) | (343) | 334 | |
Changes in operating assets and liabilities: | ||||
Prepaid | 1,160 | 317 | (659) | |
Income taxes payable | 10,764 | (8,585) | 351 | |
Accrued interest on debt | 306 | 400 | 444 | |
Other assets | (2,100) | (2,448) | 2,182 | |
Dividends payable | (36) | (80) | ||
Other liabilities | (416) | 460 | (4,094) | |
Net cash provided by operating activities | (271) | (19,372) | (10,869) | |
Investing Activities | ||||
Dividends received from subsidiaries | 41,138 | 47,256 | 70,590 | |
Collection of principle note receivable | 358 | |||
Investments and advances to subsidiaries | (22,189) | (5,872) | (15,865) | |
Net cash (used in) provided by investing activities | 18,949 | 41,385 | 55,083 | |
Financing Activities | ||||
Mortgage loan payments | (613) | (290) | (277) | |
Repurchase of convertible notes | (2,869) | |||
Repayments of long-term debt | (2,430) | (9,375) | (15,625) | |
Shares tendered for income tax withholdings | (231) | (2,384) | (3,521) | |
Purchase of treasury stock | (8,192) | (9,997) | (16,183) | |
Dividends | (6,673) | (6,772) | (6,959) | |
Net cash used in financing activities | (18,139) | (28,818) | (45,434) | |
(Decrease) increase in cash, cash equivalents, and restricted cash | 539 | (6,806) | (1,221) | |
Cash, cash equivalents and restricted cash, beginning of period | 5,865 | 12,671 | 13,892 | |
Cash, cash equivalents and restricted cash, end of period | $ 6,404 | $ 6,404 | $ 5,865 | $ 12,671 |
Schedule V - Valuation Allowa_2
Schedule V - Valuation Allowances and Qualifing Accounts (Detail) - Allowances for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ 451 | $ 290 |
Charges in earnings | 0 | 161 |
Charges to other accounts | 0 | 0 |
Deductions | 0 | 0 |
Ending balance | $ 451 | $ 451 |
Schedule VI - Supplemental In_2
Schedule VI - Supplemental Information Concerning Consolidated Property and Casuality Insurance Operations (Detail) - Consolidated Property and Casuality Insurance [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Information For Property Casualty Insurance Underwriters [Line Items] | |||
Reserves for Unpaid Losses and LAE | $ 590,166 | $ 659,341 | $ 613,533 |
Incurred Losses and LAE Current Year | 430,907 | 392,976 | 276,985 |
Incurred Losses and LAE Prior Years | (3,537) | (19,589) | (3,696) |
Paid losses and LAE | 400,614 | 331,637 | 235,238 |
Net Investment Income | 5,652 | 12,302 | 14,432 |
Deferred Policy Acquisition Costs ("DPAC") | 93,881 | 89,265 | 77,211 |
Amortization of DPAC, Net | 188,490 | 159,220 | 144,939 |
Net Premiums Written | 611,732 | 606,264 | 501,373 |
Net Premiums Earned | 611,071 | 544,722 | 478,713 |
Unearned Premiums | $ 590,419 | $ 569,618 | $ 486,220 |