Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Heritage Insurance Holdings, Inc. | |
Entity Central Index Key | 0001598665 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,876,390 | |
Entity File Number | 001-36462 | |
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 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock, par value $0.0001 per share | |
Trading Symbol(s) | HRTG | |
Name of each exchange on which registered | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $704,365 and $675,245) | $ 633,192 | $ 669,354 |
Equity securities, at fair value, (cost $1,514 and $1,415) | 1,514 | 1,415 |
Other investments, net | 17,084 | 23,929 |
Total investments | 651,790 | 694,698 |
Cash and cash equivalents | 297,548 | 359,337 |
Restricted cash | 6,265 | 5,415 |
Accrued investment income | 3,517 | 3,167 |
Premiums receivable, net | 76,126 | 71,925 |
Reinsurance recoverable on paid and unpaid claims, net of allowance for credit losses of $45 | 866,625 | 269,391 |
Prepaid reinsurance premiums | 381,368 | 265,873 |
Income tax receivable | 13,760 | 11,739 |
Deferred income tax asset, net | 14,637 | 0 |
Deferred policy acquisition costs, net | 100,649 | 93,881 |
Property and equipment, net | 22,784 | 17,426 |
Right-of-use lease asset, net | 25,218 | 27,753 |
Intangibles, net | 51,163 | 55,926 |
Goodwill | 0 | 91,959 |
Other assets | 11,133 | 12,272 |
Total Assets | 2,522,583 | 1,980,762 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 1,209,352 | 590,166 |
Unearned premiums | 651,913 | 590,419 |
Reinsurance payable | 278,298 | 191,728 |
Long-term debt, net | 121,283 | 120,757 |
Deferred income tax liability, net | 0 | 9,426 |
Advance premiums | 37,855 | 24,504 |
Accrued compensation | 8,067 | 8,014 |
Lease liability | 28,901 | 31,172 |
Accounts payable and other liabilities | 69,217 | 71,525 |
Total Liabilities | 2,404,886 | 1,637,711 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 25,923,930 shares issued and 25,898,930 outstanding at September 30, 2022 and 26,803,511 shares issued and 26,753,511 outstanding at December 31, 2021 | 3 | 3 |
Additional paid-in capital | 334,246 | 332,797 |
Accumulated other comprehensive loss, net of taxes | (54,573) | (4,573) |
Treasury stock, at cost, 11,890,599 and 10,536,737 shares at September 30, 2022 and December 31, 2021 | (130,286) | (123,557) |
Retained (deficit) earnings | (31,693) | 138,381 |
Total Stockholders' Equity | 117,697 | 343,051 |
Total Liabilities and Stockholders' Equity | $ 2,522,583 | $ 1,980,762 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 704,365 | $ 675,245 |
Equity securities, cost | 1,514 | 1,415 |
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 | 25,923,930 | 26,803,511 |
Common stock, shares outstanding | 25,898,930 | 26,753,511 |
Treasury stock, shares | 11,890,599 | 10,536,737 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
REVENUES: | |||||
Gross premiums written | $ 304,501 | $ 274,178 | $ 952,981 | $ 886,059 | |
Change in gross unearned premiums | 3,458 | 20,231 | (61,442) | (35,593) | |
Gross premiums earned | 307,959 | 294,409 | 891,539 | 850,466 | |
Ceded premiums earned | (148,266) | (131,964) | (420,645) | (399,323) | |
Net premiums earned | 159,693 | 162,445 | 470,894 | 451,143 | |
Net investment income | 2,887 | 1,548 | 7,050 | 3,797 | |
Net realized losses | (3) | (6) | (121) | (926) | |
Other revenue | 2,916 | 3,421 | 10,049 | 10,835 | |
Total revenues | 165,493 | 167,408 | 487,872 | 464,849 | |
EXPENSES: | |||||
Losses and loss adjustment expenses, net | 155,849 | 129,632 | 397,409 | 328,376 | |
Policy acquisition costs, net of ceding commission income | [1] | 39,194 | 35,984 | 115,826 | 109,183 |
General and administrative expenses, net of ceding commission income | [2] | 17,758 | 17,169 | 54,947 | 52,490 |
Goodwill impairment | 0 | 0 | 91,959 | 0 | |
Total expenses | 212,801 | 182,785 | 660,141 | 490,049 | |
Operating loss | (47,308) | (15,377) | (172,269) | (25,200) | |
Interest expense, net | 2,027 | 2,150 | 5,750 | 5,953 | |
Loss before income taxes | (49,335) | (17,527) | (178,019) | (31,153) | |
Benefit for income taxes | (1,095) | (1,117) | (11,155) | (5,644) | |
Net loss | (48,240) | (16,410) | (166,864) | (25,509) | |
OTHER COMPREHENSIVE (LOSS) INCOME | |||||
Change in net unrealized losses on investments | (17,471) | (1,344) | (65,403) | (8,316) | |
Reclassification adjustment for net realized investment losses (gains) | 3 | 6 | 121 | (96) | |
Income tax expense related to items of other comprehensive losses | 4,089 | 310 | 15,282 | 1,950 | |
Total comprehensive loss | $ (61,619) | $ (17,438) | $ (216,864) | $ (31,971) | |
Weighted average shares outstanding | |||||
Basic | 26,369,265 | 27,938,028 | 26,536,700 | 27,902,814 | |
Diluted | 26,369,265 | 27,938,028 | 26,536,700 | 27,902,814 | |
Loss per share | |||||
Basic | $ (1.83) | $ (0.59) | $ (6.29) | $ (0.91) | |
Diluted | $ (1.83) | $ (0.59) | $ (6.29) | $ (0.91) | |
[1] Policy acquisition costs includes $ 11.7 million and $ 34.9 million of ceding commission income for the three and nine months ended September 30, 2022 and $ 12.0 million and $ 35.2 million for the three and nine months of September 30, 2021, respectively. General and administration includes $ 3.8 million and $ 11.5 million of ceding commission income for the three and nine months ended September 30, 2022 and $ 4.0 million and $ 11.6 million for the three and nine months ended September 30, 2021, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Ceding commission income | $ 15,486 | $ 15,978 | $ 46,426 | $ 46,821 |
Policy Acquisition Costs [Member] | ||||
Ceding commission income | 11,700 | 12,000 | 34,900 | 35,200 |
General and Administrative Expenses [Member] | ||||
Ceding commission income | $ 3,800 | $ 4,000 | $ 11,500 | $ 11,600 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Income (Losses) [Member] |
Beginning Balance at Dec. 31, 2020 | $ 442,344 | $ 3 | $ 331,867 | $ 219,782 | $ (115,365) | $ 6,057 |
Beginning Balance, Shares at Dec. 31, 2020 | 27,748,606 | |||||
Net unrealized change in investments, net of tax | (8,202) | (8,202) | ||||
Adjustments to Shares tendered for income taxes withholding | (127) | (127) | ||||
Adjustments to shares tendered for income taxes withholding, Shares | (12,500) | |||||
Restricted stock vested, Shares | 25,000 | |||||
Issued restricted stock, Shares | 143,817 | |||||
Stock-based compensation on restricted stock | 260 | 260 | ||||
Cash dividends declared | (1,679) | (1,679) | ||||
Net loss | (5,148) | (5,148) | ||||
Ending balance at Mar. 31, 2021 | 427,448 | $ 3 | 332,000 | 212,955 | (115,365) | (2,145) |
Ending balance, Shares at Mar. 31, 2021 | 27,904,923 | |||||
Beginning Balance at Dec. 31, 2020 | 442,344 | $ 3 | 331,867 | 219,782 | (115,365) | 6,057 |
Beginning Balance, Shares at Dec. 31, 2020 | 27,748,606 | |||||
Net loss | (25,509) | |||||
Ending balance at Sep. 30, 2021 | 405,025 | $ 3 | 332,562 | 189,235 | (116,370) | (405) |
Ending balance, Shares at Sep. 30, 2021 | 27,802,626 | |||||
Beginning Balance at Mar. 31, 2021 | 427,448 | $ 3 | 332,000 | 212,955 | (115,365) | (2,145) |
Beginning Balance, Shares at Mar. 31, 2021 | 27,904,923 | |||||
Net unrealized change in investments, net of tax | 2,768 | 2,768 | ||||
Issued restricted stock, Shares | 42,018 | |||||
Stock-based compensation on restricted stock | 287 | 287 | ||||
Cash dividends declared | (1,680) | (1,680) | ||||
Net loss | (3,950) | (3,950) | ||||
Ending balance at Jun. 30, 2021 | 424,873 | $ 3 | 332,287 | 207,325 | (115,365) | 623 |
Ending balance, Shares at Jun. 30, 2021 | 27,946,941 | |||||
Net unrealized change in investments, net of tax | (1,028) | (1,028) | ||||
Adjustments to Shares tendered for income taxes withholding | (45) | (45) | ||||
Adjustments to shares tendered for income taxes withholding, Shares | (6,473) | |||||
Restricted stock vested, Shares | 10,267 | |||||
Stock-based compensation on restricted stock | 320 | 320 | ||||
Stock buy-back | (1,005) | (1,005) | ||||
Stock buy-back, Shares | (148,109) | |||||
Cash dividends declared | (1,680) | (1,680) | ||||
Net loss | (16,410) | (16,410) | ||||
Ending balance at Sep. 30, 2021 | 405,025 | $ 3 | 332,562 | 189,235 | (116,370) | (405) |
Ending balance, Shares at Sep. 30, 2021 | 27,802,626 | |||||
Beginning Balance at Dec. 31, 2021 | 343,051 | $ 3 | 332,797 | 138,381 | (123,557) | (4,573) |
Beginning Balance, Shares at Dec. 31, 2021 | 26,753,511 | |||||
Net unrealized change in investments, net of tax | (24,321) | (24,321) | ||||
Adjustments to Shares tendered for income taxes withholding | (89) | (89) | ||||
Adjustments to shares tendered for income taxes withholding, Shares | (9,849) | |||||
Restricted stock vested, Shares | 25,000 | |||||
Issued restricted stock, Shares | 397,176 | |||||
Stock-based compensation on restricted stock | 505 | 505 | ||||
Stock buy-back | (5,000) | (5,000) | ||||
Stock buy-back, Shares | (721,118) | |||||
Cash dividends declared | (1,621) | (1,621) | ||||
Net loss | (30,759) | (30,759) | ||||
Ending balance at Mar. 31, 2022 | 281,766 | $ 3 | 333,213 | 106,001 | (128,557) | (28,894) |
Ending balance, Shares at Mar. 31, 2022 | 26,444,720 | |||||
Beginning Balance at Dec. 31, 2021 | 343,051 | $ 3 | 332,797 | 138,381 | (123,557) | (4,573) |
Beginning Balance, Shares at Dec. 31, 2021 | 26,753,511 | |||||
Stock buy-back | $ (6,700) | |||||
Stock buy-back, Shares | (1,353,862) | |||||
Net loss | $ (166,864) | |||||
Ending balance at Sep. 30, 2022 | 117,697 | $ 3 | 334,246 | (31,693) | (130,286) | (54,573) |
Ending balance, Shares at Sep. 30, 2022 | 25,898,930 | |||||
Beginning Balance at Mar. 31, 2022 | 281,766 | $ 3 | 333,213 | 106,001 | (128,557) | (28,894) |
Beginning Balance, Shares at Mar. 31, 2022 | 26,444,720 | |||||
Net unrealized change in investments, net of tax | (12,300) | (12,300) | ||||
Adjustments to Shares tendered for income taxes withholding | (31) | (31) | ||||
Issued restricted stock, Shares | 99,376 | |||||
Stock-based compensation on restricted stock | 503 | 503 | ||||
Cash dividends declared | (1,588) | (1,588) | ||||
Net loss | (87,866) | (87,866) | ||||
Ending balance at Jun. 30, 2022 | 180,546 | $ 3 | 333,747 | 16,547 | (128,557) | (41,194) |
Ending balance, Shares at Jun. 30, 2022 | 26,544,096 | |||||
Net unrealized change in investments, net of tax | (13,379) | (13,379) | ||||
Forfeiture on restricted stock | (12,422) | |||||
Stock-based compensation on restricted stock | 499 | 499 | ||||
Stock buy-back | (1,729) | (1,729) | ||||
Stock buy-back, Shares | 632,744 | |||||
Net loss | (48,240) | (48,240) | ||||
Ending balance at Sep. 30, 2022 | $ 117,697 | $ 3 | $ 334,246 | $ (31,693) | $ (130,286) | $ (54,573) |
Ending balance, Shares at Sep. 30, 2022 | 25,898,930 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||||||
Aug. 03, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Common stock, dividends, per share, declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net loss | $ (166,864) | $ (25,509) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 1,507 | 866 |
Bond amortization and accretion | 2,561 | 3,018 |
Amortization of original issuance discount on debt | 919 | 1,454 |
Goodwill impairment | 91,959 | 0 |
Depreciation and amortization | 6,233 | 6,345 |
Allowance for bad debt | 10 | 106 |
Net realized investment losses (gains) | 121 | (96) |
Net change for unrealized losses in other investments | 0 | 1,022 |
Deferred income taxes, net | (8,781) | (2,862) |
Changes in operating assets and liabilities: | ||
Accrued investment income | (350) | (305) |
Premiums receivable, net | (4,211) | 2,488 |
Prepaid reinsurance premiums | (115,495) | (92,354) |
Reinsurance recoverable on paid and unpaid claims | (597,234) | 8,663 |
Income taxes receivable, net | (2,021) | (3,266) |
Deferred policy acquisition costs, net | (6,768) | (6,160) |
Right of use leased asset | 2,535 | (22,192) |
Other assets | 1,139 | (1,676) |
Lease incentives | 1,622 | 2,622 |
Unpaid losses and loss adjustment expenses | 619,186 | (23,195) |
Unearned premiums | 61,494 | 35,686 |
Reinsurance payable | 86,570 | 162,812 |
Accrued interest | (160) | (15) |
Accrued compensation | 53 | 105 |
Advance premiums | 13,351 | 15,073 |
Operating lease liabilities | (2,271) | 23,809 |
Other liabilities | (585) | (13,667) |
Net cash (used in) provided by operating activities | (15,480) | 72,772 |
INVESTING ACTIVITIES | ||
Fixed maturity securities sales, maturities and paydowns | 56,334 | 147,406 |
Purchases in other investments | (7,500) | 0 |
Fixed maturity securities purchases | (88,137) | (258,548) |
Return of capital in other investments | 14,345 | 1,684 |
Equity securities reinvestments of dividends | (99) | 0 |
Leasehold improvements | (3,539) | (2,622) |
Proceeds from sale of assets | 0 | 45 |
Cost of property and equipment acquired | (4,911) | (892) |
Net cash used in investing activities | (33,507) | (112,927) |
FINANCING ACTIVITIES | ||
Repayment of term note | (2,625) | (3,750) |
Mortgage loan payments | (240) | (228) |
Draw from credit facility | 25,000 | 0 |
Proceeds from term loan facility | 0 | 2,781 |
Repurchase of convertible notes | (22,529) | 0 |
Purchase of treasury stock | (6,729) | (1,005) |
Tax withholdings on share-based compensation awards | (58) | (171) |
Dividends paid | (4,771) | (5,029) |
Net cash used in financing activities | (11,952) | (7,402) |
Decrease in cash, cash equivalents, and restricted cash | (60,939) | (47,557) |
Cash, cash equivalents and restricted cash, beginning of period | 364,752 | 446,383 |
Cash, cash equivalents and restricted cash, end of period | 303,813 | 398,826 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 6,222 | 489 |
Interest paid | $ 4,245 | $ 4,214 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 297,548 | $ 359,337 | ||
Restricted cash | 6,265 | 5,415 | ||
Total | $ 303,813 | $ 364,752 | $ 398,826 | $ 446,383 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company”). These statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain financial information that is normally included in annual consolidated financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim condensed consolidated financial statements and related footnotes should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on March 14, 2022 (the “2021 Form 10-K”) . Significant accounting policies a) Income Taxes During a third quarter assessment of the Company's deferred tax position, a valuation allowance of $ 10.7 million was recorded against the Company's deferred tax asset as of September 30, 2022. Based on the Internal Revenue Code (“IRC”) Section 953(d) election made for Osprey Re, the Company's captive reinsurer domiciled in Bermuda, the Company concluded a valuation allowance for its net deferred tax assets was necessary because those net deferred tax assets can only be applied to offset future taxable income of Osprey Re. Based on current available evidence, management does not believe there will be sufficient future Osprey Re taxable income over the next year in order to realize those net deferred tax assets. In the event Osprey Re recognizes future taxable income, the proportionate amount of the net operating loss carryforward will be used and an equivalent amount of the valuation allowance will reverse. b) Changes to Significant Accounting Policies The accounting policies of the Company are set forth in Note 1 to condensed consolidated financial statements contained in the Company’s 2021 Form 10-K. Reclassification Certain prior year amounts reported on the condensed consolidated statements of cashflows have been reclassified to conform to the current year presentation. Accounting Pronouncements adopted In August 2020, the FASB issued ASU 2020-06, " Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" . The ASU i)simplifies the accounting for convertible debt and convertible preferred stock by reducing the number of accounting models, and amends certain disclosures, ii) amends and simplifies the derivative scope exception guidance for contracts in an entity's own equity, including share-based compensation, and iii) amends the diluted earnings per share calculations for convertible instruments and contracts in an entity's own equity. The if-converted method will be the only permissible method for computing the dilutive effect of the convertible debt instruments. Interest expense no longer includes amortization of debt discount. The Company adopted the guidance of ASU 2020-06 on January 1, 2022, reporting no material impact to the Company's consolidated condensed financial statements or disclosures. Accounting Pronouncements not yet adopted In March 2022, the FASB issued ASU 2022-02, “2022-02 Financial Instruments-Credit Losses ” (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for annual periods beginning after December 15, 2022, including interim periods within those periods. Early adoption is permitted. The Company will adopt ASU 2022-02 during the first quarter of 2023 and will provide the required disclosures, if determined to be material. The Company has documented the summary of its significant accounting policies in its Notes to the Audited Consolidated Financial Statements annual report on Form 10-K. There have been no material changes to the Company’s accounting policies since the filing of that report. No other new accounting pronouncements issued but not yet effective have had, or are expected to have, a material impact on the Company’s results of operations or financial position. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 2. INVESTMENTS 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 for the periods presented: September 30, 2022 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 118,629 $ 11 $ 4,354 $ 114,286 States, municipalities and political subdivisions 105,221 1 13,037 92,185 Special revenue 290,424 47 34,153 256,318 Industrial and miscellaneous 190,091 44 19,732 170,403 Total $ 704,365 $ 103 $ 71,276 $ 633,192 (1) Includes securities at September 30, 2022 with a carrying amount of $ 26.4 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, 2021 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value Debt Securities Available-for-sale (In thousands) 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. Net Realized (Losses)Gains The following table presents net realized (losses) gains on the Company’s debt securities available-for-sale for the three and nine months ended September 30, 2022 and 2021, respectively: 2022 2021 Three Months Ended September 30, Gains Fair Value at Sale Gains Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ — $ 50 $ 2 $ 3,470 Total realized losses ( 3 ) 110 ( 8 ) 226 Net realized (losses) and gains $ ( 3 ) $ 160 $ ( 6 ) $ 3,696 2022 2021 Nine Months Ended September 30, Gains Fair Value at Sale Gains Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 32 $ 2,451 $ 106 $ 24,265 Total realized losses ( 153 ) 6,206 ( 10 ) 1,043 Net realized (losses) and gains $ ( 121 ) $ 8,657 $ 96 $ 25,308 As of September 30, 2021, the Company recorded on its condensed consolidated statement of operations in net realized (losses) gains an impairment of approximately $ 1.0 million on its REIT investment which is excluded from the table above. The table below summarizes the Company’s debt securities at September 30, 2022 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At September 30, 2022 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) Due in one year or less $ 95,442 14 % $ 93,586 15 % Due after one year through five years 342,738 49 % 313,712 50 % Due after five years through ten years 199,300 28 % 165,917 26 % Due after ten years 66,885 9 % 59,977 9 % Total $ 704,365 100 % $ 633,192 100 % Net Investment Income The following table summarizes the Company’s net investment income by major investment category for the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) (In thousands) Debt securities $ 2,992 $ 1,986 $ 7,695 $ 5,164 Equity securities — — — — Cash and cash equivalents 273 17 433 72 Other investments 135 514 447 1,101 Net investment income 3,400 2,517 8,575 6,337 Less: Investment expenses 513 969 1,525 2,540 Net investment income, less investment expenses $ 2,887 $ 1,548 $ 7,050 $ 3,797 The following tables present, for all debt securities available-for-sale in an unrealized loss position (including securities pledged) and for which no credit loss allowance been established to date, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position at September 30, 2022 and December 31, 2021, respectively: Less Than Twelve Months Twelve Months or More September 30, 2022 Number of Gross Fair Value Number of Gross Fair Value Debt Securities Available-for-sale U.S. government and agency securities 93 $ 4,023 $ 98,801 5 $ 331 $ 8,911 States, municipalities and political subdivisions 61 5,166 39,273 64 7,871 47,766 Special revenue 378 15,277 121,001 153 18,876 103,038 Industrial and miscellaneous 190 7,376 98,431 103 12,356 66,066 Total fixed maturity securities 722 $ 31,842 $ 357,506 325 $ 39,434 $ 225,781 Less Than Twelve Months Twelve Months or More December 31, 2021 Number of Gross Fair Value Number of Gross Fair Value Debt Securities Available-for-sale U.S. government and agency securities 43 $ 282 $ 57,420 — $ — $ — States, municipalities and political 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 fixed maturity securities 585 $ 7,424 $ 480,588 32 $ 613 $ 12,812 The Company completes a detailed analysis each quarter to assess whether the decline in the fair value of any investment below its cost basis is the result of a credit loss. All available-for-sale securities with unrealized losses are reviewed. The Company considers many factors in completing its quarterly review of securities with unrealized losses for credit-related impairment to determine whether a credit loss exists, including the extent to which fair value is below cost, the implied yield to maturity, rating downgrades of the security and whether or not the issuer has failed to make scheduled principal or interest payments. The Company also takes into consideration information about the financial condition of the issuer and industry factors that could negatively impact the capital markets. If the decline in fair value of an available-for-sale security below its amortized cost is considered to be the result of a credit loss, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. For the three and nine months ending September 30, 2022, management concluded that the decline in the fair value was not a result of credit losses but rather as a direct result from the increase in the market interest rates. Therefore, the Company did no t have an allowance for credit losses as of September 30, 2022 or December 31, 2021. Quarterly, the Company considers whether it intends to sell an available-for-sale security or if it is more likely than not that it will be required to sell the security before recovery of its amortized costs. In these instances, a decline in fair value is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. Other Investments Non-Consolidating Variable Interest Entities (“VIEs”) The Company makes passive investments in limited partnerships (“LPs”), which are accounted for using the equity method, with income reported in earnings. The Company also makes passive investments in a Real Estate Investment Trust (“REIT”) and an Insurtech 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. The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure (in thousands) Investments in non-consolidated VIEs - Equity Method $ 3,517 $ 3,517 $ 3,852 $ 3,852 Investments in non-consolidated VIEs - Amortized Cost $ 8,490 $ 8,490 $ 15,000 $ 15,000 Investments in non-consolidated VIEs - Measure Alternative $ 5,077 $ 5,077 $ 5,077 $ 5,077 Total non-consolidated VIEs $ 17,084 $ 17,084 $ 23,929 $ 23,929 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. |
Fair Value of Financial Measure
Fair Value of Financial Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 3. FAIR VALUE OF FINANCIAL MEASUREMENTS Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company is required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and degree to which they are observable or not observable in the market. The three levels in the hierarchy are 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 for 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. The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. The Company did not hold any Level 3 assets or liabilities as of September 30, 2022 or December 31, 2021. 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. The tables below present the balances of the Company’s invested assets measured at fair value on a recurring basis: September 30, 2022 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 $ 114,286 $ — $ 114,286 $ — States, municipalities and political subdivisions 92,185 — 92,185 — Special revenue 256,318 — 256,318 — Industrial and miscellaneous 170,403 — 170,403 — Total investments $ 633,192 $ — $ 633,192 $ — 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 investments $ 669,354 $ 364 $ 668,990 $ — Financial Instruments excluded from the fair value hierarchy The carrying value of premium receivables and accounts payable, accrued expense, revolving loans and borrowings under the Company’s senior secured credit facility approximate their fair value. The rate at which revolving loans and borrowings under the Company’s senior secured credit facility bear interest resets periodically at market interest rates. Non-recurring fair value measurements The Company determines 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. For the year ended December 31, 2021, the Company recorded a goodwill impairment following its annual valuation review of approximately $ 61 million. In the second quarter of 2021, the Company recognized an impairment in other investments of approximately $ 1.0 million based on the estimated fair value of the Company's ownership interest. During the second quarter of 2022, M anagement concluded that it had a full impairment of its remaining goodwill and that the carrying value of $ 92.0 million should be written off 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 the Company's markets; and (iii) the Company's market cap was below book value. |
Other Comprehensive Loss
Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Loss | NOTE 4. OTHER COMPREHENSIVE LOSS The following table is a summary of other comprehensive loss and discloses the tax impact of each component of other comprehensive loss for the three and nine months ended September 30, 2022 and 2021, respectively: For the Three Months Ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive loss Change in unrealized losses on investments, net $ ( 17,471 ) $ 4,090 $ ( 13,381 ) $ ( 1,344 ) $ 311 $ ( 1,033 ) Reclassification adjustment of realized losses (gains) included in net loss 3 ( 1 ) 2 6 ( 1 ) 5 Effect on other comprehensive loss $ ( 17,468 ) $ 4,089 $ ( 13,379 ) $ ( 1,338 ) $ 310 $ ( 1,028 ) For the Nine Months Ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive loss Change in unrealized losses on investments, net $ ( 65,403 ) $ 15,310 $ ( 50,093 ) $ ( 8,316 ) $ 1,928 $ ( 6,388 ) Reclassification adjustment of realized losses (gains) included in net loss 121 ( 28 ) 93 ( 96 ) 22 ( 74 ) Effect on other comprehensive loss $ ( 65,282 ) $ 15,282 $ ( 50,000 ) $ ( 8,412 ) $ 1,950 $ ( 6,462 ) |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | NOTE 5. 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 the Company’s right-of-use assets and lease obligations. The Company’s 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. Components of the Company’s lease costs for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands): Three Months Ended Three Months Ended Amortization of ROU assets - Finance leases $ 651 $ 647 Interest on lease liabilities - Finance leases 244 263 Variable lease cost (cost excluded from lease payments) 287 112 Operating lease cost (cost resulting from lease payments) 350 339 Total lease cost $ 1,532 $ 1,361 Nine Months Ended Nine Months Ended Amortization of ROU assets - Finance leases $ 1,943 $ 1,321 Interest on lease liabilities - Finance leases 739 524 Variable lease cost (cost excluded from lease payments) 713 373 Operating lease cost (cost resulting from lease payments) 1,055 1,018 Total lease cost $ 4,450 $ 3,236 Supplemental cash flow information and non-cash activity related to the Company’s operating and financing leases were as follows (in thousands): At September 30, 2022 At September 30, 2021 Finance lease - Operating cash flows $ 737 $ 31 Finance lease - Financing cash flows $ 1,540 $ 100 Operating lease - Operating cash flows (fixed payments) $ 1,188 $ 1,123 Operating lease - Operating cash flows (liability reduction) $ 942 $ 840 Supplemental balance sheet information related to the Company’s operating and financing leases as of September 30, 2022 were as follows (in thousands): Balance Sheet September 30, 2022 December 31, 2021 Right-of-use assets - operating Right-of-use lease asset, net $ 4,437 $ 5,035 Right-of-use assets - finance Right-of-use lease asset, net $ 20,781 $ 22,718 Lease liability - operating Lease liability $ 5,821 $ 6,551 Lease liability - finance Lease liability $ 23,080 $ 24,621 Weighted-average remaining lease term and discount rate for the Company’s operating and financing leases for the periods presented below were as follows: September 30, 2022 September 30, 2021 Weighted average lease term - Finance leases 8.37 yrs. 9.34 yrs. Weighted average lease term - Operating leases 5.68 yrs. 6.40 yrs. Weighted average discount rate - Finance leases 4.2 % 4.2 % Weighted average discount rate - Operating leases 5.4 % 5.3 % Maturities of lease liabilities by fiscal year for the Company’s operating and financing leases were as follows (in thousands): September 30, 2022 2022 remaining $ 1,161 2023 4,592 2024 4,263 2025 3,970 2026 3,990 Thereafter 16,225 Total lease payments 34,201 Less: imputed interest ( 5,300 ) Present value of lease liabilities $ 28,901 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In thousands) Land $ 2,582 $ 2,582 Building 10,141 10,141 Computer hardware and software 12,089 7,204 Office furniture and equipment 1,381 1,355 Tenant and leasehold improvements 10,172 8,255 Vehicle fleet 720 720 Total, at cost 37,085 30,257 Less: accumulated depreciation and amortization ( 14,301 ) ( 12,831 ) Property and equipment, net $ 22,784 $ 17,426 Depreciation and amortization expense for property and equipment was approximately $ 544,900 and $ 736,000 for the three months ended September 30, 2022 and 2021, respectively and $ 1.5 million and $ 1.6 million for the nine months ended September 30, 2022 and 2021, respectively. The Company’s real estate consists of 15 acres of land, two buildings with a gross area of 88,378 square feet and a parking garage. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets At September 30, 2022 and December 31, 2021, goodwill was $ 0 and $ 92.0 million and intangible assets were $ 51.2 million and $ 55.9 million, respectively. The Company has determined the useful life of the other intangible assets to range between 2.5 - 15 years . Intangible assets include $ 1.3 million relating to insurance licenses which is classified as an indefinite lived intangible and is subject to annual impairment testing concurrent with goodwill. Goodwill (in thousands) Balance as of December 31, 2021 $ 91,959 Goodwill acquired — Impairment ( 91,959 ) Balance as of September 30, 2022 $ — Management tests goodwill and other intangible assets for impairment annually during the fourth quarter, or more frequently should events or changes in circumstances indicate that goodwill or the Company’s other intangible assets might be impaired. During the second quarter of 2022, management determined a triggering event occurred for which it deemed an interim evaluation of goodwill was appropriate and concluded the remaining balance of its goodwill was fully impaired. The carrying value of $ 92.0 million was written off 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 the Company’s markets; and (iii) the Company’s market cap was below book value. These factors reduced the Company’s previously modeled fair value of the Company and resulted in a $ 92.0 million goodwill impairment charge, as of the second quarter of 2022, most of which was not tax deductible. Other Intangible Assets The Company’s intangible assets consist of brand, agent relationships, renewal rights, customer relations, trade names, non-competes and insurance licenses. Amortization expense of the Company’s intangible assets for three months ended September 30, 2022 and 2021 was $ 1.6 million and for the nine months ended September 30, 2022 and 2021 was $ 4.8 million. No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three and nine months ended September 30, 2022 or 2021. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2022 - remaining $ 1,588 2023 $ 6,351 2024 $ 6,351 2025 $ 6,315 2026 $ 6,114 Thereafter $ 23,129 Total $ 49,848 |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 8. LOSS PER SHARE The following table sets forth the computation of basic and diluted loss per share (“EPS”) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic loss per share: Net loss attributable to common stockholders (000's) $ ( 48,240 ) $ ( 16,410 ) $ ( 166,864 ) $ ( 25,509 ) Weighted average shares outstanding 26,369,265 27,938,028 26,536,700 27,902,814 Basic loss per share: $ ( 1.83 ) $ ( 0.59 ) $ ( 6.29 ) $ ( 0.91 ) Diluted loss per share: Net loss attributable to common stockholders (000's) $ ( 48,240 ) $ ( 16,410 ) $ ( 166,864 ) $ ( 25,509 ) Weighted average shares outstanding 26,369,265 27,938,028 26,536,700 27,902,814 Total weighted average dilutive shares 26,369,265 27,938,028 26,536,700 27,902,814 Diluted loss per share: $ ( 1.83 ) $ ( 0.59 ) $ ( 6.29 ) $ ( 0.91 ) Th e Company had 196,914 and 2,677,355 antidilutive shares as of September 30, 2022 and 2021, respectively. The convertible notes were excluded from the computations because the conversion price on these notes was 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 "if converted" method under the guidance of ASU 2020-06, adopted by the Company on January 1, 2022. |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | NOTE 9. DEFERRED REINSURANCE CEDING COMMISSION The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the three months ended September 30, 2022 and 2021, the Company allocated ceding commission income of $ 11.7 million and $ 12.0 million to policy acquisition costs and $ 3.8 million and $ 4.0 million to general and administrative expense, respectively. For the nine months ended September 30, 2022 and 2021, the Company allocated ceding commission income of $ 34.9 million and $ 35.2 million to policy acquisition costs and $ 11.5 million and $ 11.6 million to general and administrative expense, respectively. The table below depicts the activity regarding deferred reinsurance ceding commission, included in accounts payable and other liabilities during the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Beginning balance of deferred reinsurance ceding commission income $ 38,529 $ 39,940 $ 40,405 $ 39,995 Ceding commission deferred 17,046 17,659 46,110 48,447 Less: ceding commission earned ( 15,486 ) ( 15,978 ) ( 46,426 ) ( 46,821 ) Ending balance of deferred reinsurance ceding commission income $ 40,089 $ 41,621 $ 40,089 $ 41,621 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 10. 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 will be fully recoverable in the near term. The table below depicts the activity regarding DPAC for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Beginning Balance $ 99,468 $ 95,967 $ 93,881 $ 89,265 Policy acquisition costs deferred 39,194 47,976 139,028 144,380 Amortization ( 38,013 ) ( 48,518 ) ( 132,260 ) ( 138,220 ) Ending Balance $ 100,649 $ 95,425 $ 100,649 $ 95,425 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES The Company files a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred taxes for temporary differences between the financial statement and tax return basis of assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in its income statement. Deferred tax liabilities generally represent tax expense recognized in the Company's financial statements for which payment has been deferred or expenditures for which the Company has already taken a deduction in its tax return but have not yet been recognized in its financial statements. Under GAAP the Company is required to evaluate the recoverability of its deferred tax assets and establish a valuation allowance if necessary to reduce its deferred tax assets to an amount that is more likely than not to be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. The Company establishes or adjusts valuation allowances for deferred tax assets when it estimates that it is more likely than not that future taxable income will be insufficient to realize the value of the deferred tax assets. The Company evaluates all significant available positive and negative evidence as part of its analysis. Negative evidence includes the existence of losses in recent years. Positive evidence includes the forecast of future taxable income and tax-planning strategies that would result in the realization of deferred tax assets. The underlying assumptions its uses in forecasting future taxable income require significant judgment and take into account the Company's recent performance. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible or creditable. If actual experience differs from these estimates and assumptions, the recognized deferred tax asset value may not be fully realized, resulting in an increase to income tax expense in its results of operations. A s of September 30, 2022. the Company recognized a valuation allowance of $ 10.7 million against the net deferred tax assets generated at its foreign domiciled captive reinsurer, Osprey Re. The Company can only realize those net deferred tax assets to the extent Osprey Re contributes future taxable income to the consolidated group. Management believes there is not sufficient evidence at the current time to realize the Osprey Re net deferred tax assets within the next calendar year. The valuation allowance is accounted for as an increase to income tax expense for the quarter. Osprey Re’s future taxable income can be used to apply against its net deferred tax assets to reduce taxable income and the valuation allowance will decrease proportionately resulting in a reduction of income tax expense. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and its effective tax rate in the f uture. For the three months ended September 30, 2022 and 2021, the Company recorded a tax benefit of $ 1.1 million and $ 1.1 million, respectively, which corresponds to effective tax rates of 2.2 % and 6.4 %, respectively. For the nine months ended September 30, 2022 and 2021, the Company recorded an income tax benefit of $ 11.2 million and $ 5.6 million, respectively, which corresponds to effective tax rates of 6.3 % and 18.1 %, respectively. The effective tax rates for the three and nine months ended September 30, 2022 were impacted by the mostly non-deductible goodwill impairment charge taken in the second quarter of 2022 described in Note 7. Goodwill and Other Intangible Assets as well as the valuation allowance described above. Effective tax rates are dependent upon components of pre-tax earnings and the related tax effects. The effective tax rate for each period was also affected by various permanent tax differences, including disallowed executive compensation deductions which was further limited in 2018 and future years upon the enactment of H.R.1, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Additionally, the state effective income tax rate can also fluctuate as a result of changes in the geographic dispersion of the Company’s business. Finally, 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. The table below summarizes the significant components of the Company’s net deferred asset (liability): September 30, 2022 December 31, 2021 Deferred tax assets: (In thousands) Unearned premiums $ 13,454 $ 15,805 Unearned commission 9,384 9,459 State net operating loss 1,490 1,222 Tax-related discount on loss reserve 4,799 3,872 Stock-based compensation 455 84 Accrued expenses 1,481 1,182 Leases 841 792 Unrealized losses 17,195 1,913 Federal net operating loss carryforward 15,752 — Other 416 472 Valuation allowance ( 10,650 ) — Total deferred tax asset 54,617 34,801 Deferred tax liabilities: Deferred acquisition costs 23,561 21,977 Prepaid expenses 118 177 Property and equipment 1,221 1,504 Note discount 225 187 Basis in purchased investments 666 34 Basis in purchased intangibles — 14,550 Internal revenue code 481(a)-Accounting method change 1,104 4,416 Amortization of goodwill 11,459 — Other 1,626 1,382 Total deferred tax liabilities 39,980 44,227 Net deferred tax asset (liability) $ 14,637 $ ( 9,426 ) As of September 30, 2022, the Company has a gross operating loss carryforward for federal and state income tax purposes of $ 20.7 million and $ 45.8 million, respectively, which will expire after 2042 . The statute of limitations related to the Company’s federal and state income tax returns remains open from the Company’s filings for 2018 through 2021. Osprey Re, our reinsurance affiliate, based in Bermuda, made an irrevocable election under IRC Section 953(d) to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, the Company's reinsurance subsidiary is subject to United States income tax as if it were a U.S. corporation. Furthermore, limitations may be imposed on the ability to utilize Osprey Re’s deferred tax assets to the extent it has not contributed income to the consolidated group during its inclusion in the consolidated group. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Reinsurance | NOTE 12. REINSURANCE Overview 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, 2021 and 2022, 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”). Additionally, for the 2022 hurricane season, the Company purchased a portion of the Company's catastrophe excess of loss reinsurance program from Citrus Re Ltd. (“Citrus Re), a Bermuda special purpose insurer formed in 2014, through the 2022-1 notes, which cover catastrophe losses incurred for specific states. 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 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. The Company’s reinsurance agreements are prospective contracts. The Company records an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of the Company’s new reinsurance agreements. The Company generally amortizes its catastrophe reinsurance premiums ratably over the 12-month contract period, which is June 1 through May 31. Its quota share reinsurance is amortized over the 12-month contract period and may be purchased on a calendar or fiscal year basis. In the event that the Company incurs losses and loss adjustment expenses 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 its liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to its estimate of unpaid losses. 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 condensed consolidated financial statements. 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. 2022-2023 Reinsurance Program Catastrophe Excess of Loss Reinsurance Effective June 1, 2022, 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”), Citrus Re Ltd., 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 2022 hurricane season. Osprey Re will provide reinsurance for a portion of the Heritage P&C, NBIC and Zephyr programs. The 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. Osprey Re is fully collateralized. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2022-2023 reinsurance program provides first event coverage up to $ 1.3 billion for Heritage P&C, first event coverage up to $ 1.2 billion for NBIC, and first event coverage up to $ 780.0 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 – $ 40.0 million, of which $ 35.0 million would be ceded to Osprey; NBIC – $ 30.0 million of which $ 30.0 million would be ceded to Osprey in a shared contract with Zephyr; and Zephyr – $ 40.0 million, of which $ 30.0 million would be ceded to Osprey in a shared contract with NBIC. The Company is responsible for all losses and loss adjustment expenses in excess of the Company's 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 $ 3.2 billion of limit purchased in 2022 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 2022-2023 catastrophe excess of loss reinsurance programs was approximately $ 359.5 million. This cost estimate is based on projected exposures for which there is a true up as of August 31, 2022. Additionally, the Company placed 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 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 also 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 . For the contract period of July 1, 2022 through June 30, 2023, the coverage for property losses is $ 2.75 million excess $ 750,000 and 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 detailed discussion of the Company’s 2021-2022 Reinsurance Program please refer to Part II, Item 8, “Financial Statements and Supplementary Data” and “ Note 12. Reinsurance ” in the Company’s 2021 Form 10-K. Effect of Reinsurance The Company’s reinsurance arrangements had the following effect on certain items in the condensed consolidated statement of income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) (In thousands) Premium written: Direct $ 304,501 $ 274,178 $ 952,981 $ 886,059 Ceded ( 60,885 ) ( 53,505 ) ( 536,139 ) ( 491,677 ) Net $ 243,616 $ 220,673 $ 416,842 $ 394,382 Premiums earned: Direct $ 307,959 $ 294,409 $ 891,539 $ 850,466 Ceded ( 148,266 ) ( 131,964 ) ( 420,645 ) ( 399,323 ) Net $ 159,693 $ 162,445 $ 470,894 $ 451,143 Loss and Loss Adjustment Expenses Direct $ 809,993 $ 195,099 $ 1,147,243 $ 483,382 Ceded ( 654,144 ) ( 65,467 ) ( 749,834 ) ( 155,006 ) Net $ 155,849 $ 129,632 $ 397,409 $ 328,376 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 9 Months Ended |
Sep. 30, 2022 | |
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. The Company estimates its IBNR reserves by projecting its ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses. Hurricane Ian struck Florida as a strong Category 4 hurricane on September 28, 2022. Gross catastrophe losses from Hurricane Ian are estimated to be of $ 655.4 million with net retained losses of $ 40.0 million. Gross losses from Hurricane Irma caused an increase in the ending balance as indicated below. The table below summarizes the activity related to the Company’s reserve for unpaid losses: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Balance, beginning of period $ 553,909 $ 625,979 $ 590,166 $ 659,341 Less: reinsurance recoverable on unpaid losses 235,239 366,879 301,757 397,688 Net balance, beginning of period 318,670 259,100 288,409 261,653 Incurred related to: Current year 156,855 130,425 395,921 331,374 Prior years ( 1,006 ) ( 793 ) 1,489 ( 2,998 ) Total incurred 155,849 129,632 397,410 328,376 Paid related to: Current year 70,914 75,508 170,255 171,128 Prior years 24,088 27,273 136,047 132,950 Total paid 95,002 102,781 306,302 304,078 Net balance, end of period 379,517 285,951 379,517 285,951 Plus: reinsurance recoverable on unpaid losses 829,835 350,195 829,835 350,195 Balance, end of period $ 1,209,352 $ 636,146 $ 1,209,352 $ 636,146 As of September 30, 2022, the Company reported $ 379.5 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $ 266.8 million attributable to IBNR net of reinsurance recoverable, or 70.34 % of net reserves for unpaid losses and loss adjustment expenses. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
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. As of September 30, 2022, the Company had $ 885,000 of the Convertible Notes outstanding, net of $ 21.1 million of Convertible Notes held by an insurance company subsidiary . For each of the nine-month periods ended September 30, 2022 and 2021, the Company made interest payments, net of affiliated Convertible Notes of approximately $ 1.0 million and $ 1.3 million, on the Convertible Notes, respectively. Holders of the 5.875% Convertible Senior Notes due 2037 (the “Notes”) issued by the Company had an optional put right, pursuant to the indenture governing the Notes, to require the Company to repurchase the aggregate principal amount of Notes that are validly tendered. The Company received notice from the Depositary for the Notes that, on July 29, 2022, $ 10,895,000 aggregate principal amount of the Notes has been validly tendered in accordance with the terms of the indenture and the Company’s notice with respect to the optional put right of the Notes, and the Company directed the trustee to cancel the Notes tendered. Prior to this transaction, the outstanding balance as of September 30, 2022 of non-affiliated Notes was $ 11.8 million. On August 1, 2022, the Company made payments for the principal amount of the Notes tendered and unpaid interest in the aggregate amounts of $ 10.9 million and $ 320,041 , respectively. The Company used $ 10.0 million from its revolving credit facility to replenish the cash used to pay the $ 10.9 million for the purchase of the tendered Notes. In January 2022, the Company reacquired and retired $ 11.7 million of its outstanding Convertible Senior Notes. Payment was made in cash and the Convertible Notes were retired at the time of repurchase. In addition, the Company expensed $ 242,700 which represents the proportionate amount of the unamortized issuance and debt discount costs associated with this repurchase. Senior Secured Credit Facility The Company is party to a five-year , $ 150.0 million credit agreement (as amended from time to time, the “Credit Agreement”) with a syndicate of lenders. On November 7, 2022, the Company and its subsidiary guarantors entered into an amendment to the Credit Agreement to, among other things, (i) decrease the revolving credit facility from $ 75 million to $ 50 million, (ii) establish a new $ 25 million term loan facility to refinance loans outstanding under the existing revolving credit facility and to pay fees, costs and expenses related thereto, (iii) reduce, from $ 50 million to $ 25 million, the aggregate amount of potential future increases to the revolving credit facility commitments and/or term loan commitments, (iii) modify the amortization of the existing term loan facility and new term loan facility to 10 % per annum, paid quarterly, and (iii) increase the applicable margin for loans under the Credit Agreement to a range from 2.75 % to 3.25 % per annum for SOFR loans (plus a 0.10 % credit adjustment spread) and based on a leverage ratio (an increase from the prior range of 2.50 % to 3.00 %). The Seventh Amendment also modified certain financial covenants in the Credit Agreement which may limit the Company’s flexibility in connection with future financing transactions and in the allocation of capital in the future, including the Company’s ability to pay dividends and make stock repurchases, and contribute capital to its insurance subsidiaries that are not parties to the Credit Agreement. For additional information regarding the changes to the financial covenants in the Credit Agreement, refer to Part II, Item 5, “Other Information ” in this Quarterly Report on Form 10-Q. The Credit Agreement, as amended, provides for (1) a five-year senior secured term loan facility in an aggregate principal amount of $ 100 million (the “Term Loan Facility”) and (2) a five-year senior secured revolving credit facility in an aggregate principal amount of $ 50 million (inclusive of a sublimit for the issuance of letters of credit equal to the unused amount of the revolving credit facility and a sublimit for swingline loans equal to the lesser of $ 25 million and the unused amount of the revolving credit facility) (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). Term Loan Facility. As amended by the Seventh Amendment, 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 $ 2.4 million per quarter commencing with the quarter ending December 31, 2022, with the remaining balance payable at maturity. The Term Loan Facility matures on July 28, 2026 . As of September 30, 2022, there was $ 66.5 million in aggregate principal outstanding on the Term Loan Facility and as o f November 7, 2022, after giving effect to the additional term loan advance that was used to refinance amounts outstanding under the Revolving Credit Facility and to pay fees, costs and expenses related thereto, there was $ 73.9 million in aggregate principal outstanding on the Term Loan Facility. For the nine months ended September 30, 2022, the Company made principal and interest payments of approximately $ 2.6 million and $ 1.7 million, respectively and for the comparable period of 2021, the Company made interest payments of approximately $ 1.5 million on the Term Loan Facility. On May 4, 2022, the Company and its subsidiary guarantors amended the Credit Agreement dated as of December 14, 2018 (as amended to date, the “Credit Agreement”) by entering into the Sixth Amendment to Credit Agreement (the “Sixth Amendment”) with the lenders party to the Credit Agreement, and Regions Bank, as administrative agent and collateral agent. Pursuant to the Sixth Amendment, the consolidated fixed charge coverage ratio included in the Credit Agreement will be calculated based on the Company’s consolidated tangible net worth, rather than the Company’s consolidated net worth as was required under the existing Credit Agreement. Specifically, the Sixth Amendment provides that, effective as of March 31, 2022 and for future fiscal quarters, the Company’s consolidated tangible net worth, which is gross of accumulated other comprehensive income, as of the end of a fiscal quarter may not be less than the sum of (1) $162,333,750, plus (2) 25% of the sum of the positive consolidated net income of the Company and its subsidiaries with respect to each full fiscal quarter, plus (3) 100% of the net cash proceeds of certain equity issuance transactions of the Company and its subsidiaries. All other material terms of the Credit Agreement remained unchanged. Revolving Credit Facility. The Revolving Credit Facility allows for borrowings of up to $ 50 million inclusive of a sublimit for the issuance of letters of credit equal to the unused amount of the Revolving Credit Facility and a sublimit for swingline loans equal to the lesser of $ 25 million and the unused amount of the Revolving Credit Facility. As of September 30, 2022, we had $ 25.0 million in borrowings and a $ 22.6 million letters of credit outstanding under the Revolving Credit Facility. In connection with the incurrence of additional amounts under the Term Loan Facility pursuant to the Seventh Amendment, the borrowings under the Revolving Credit Facility were repaid in full . At our option, borrowings un der the Credit Facilities bear interest at rates equal to either (1) a rate determined by reference to SOFR, plus an applicable margin and a credit adjustment spread equal to 0.10 % or (2) a base rate determined by reference to the highest of (a) the “prim e rate” of Regions Bank, (b) the federal funds rate plus 0.50 %, and (c) the adjusted term SOFR in effect on such day for an interest period of one month plus 1.00 %, plus an applicable margin. The Credit Agreement contains, among other things, covenants, representations and warranties and events of default customary for facilities of this type. The Company is required to maintain, as of each fiscal quarter (1) a maximum consolidated leverage ratio of 2.50 to 1.00, stepping down to 2.25 to 1.00 as of the second quarter of 2024 and 2.00 to 1.00 as of the second quarter of 2025, (2) a minimum consolidated fixed charge coverage ratio of 1.20 to 1.00 and (3) a minimum consolidated net worth for the Company and its subsidiaries, which is required to be not less than $100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash pro ceeds of any equity transactions. Events of default include, among other events, (i) nonpayment of principal, interest, fees or other amounts; (ii) failure to perform or observe certain covenants set forth in the Credit Agreement; (iii) breach of any representation or warranty; (iv) cross-default to other indebtedness; (v) bankruptcy and insolvency defaults; (vi) monetary judgment defaults and material nonmonetary judgment defaults; (vii) customary ERISA defaults; (viii) a change of control of the Company; and (ix) failure to maintain specified catastrophe retentions in each of the Company’s regulated insurance subsidiaries. In addition to paying interest on outstanding borrowings under the Revolving Credit Facility, we are required to pay a quarterly commitment fee based on the unused portion of the Revolving Credit Facility, which is determined by our consolidated leverage ratio At September 30, 2022, the effective interest rate on for the Term Loan Facility and Revolving Credit Facility was 5.88 % and 5.69 %, respectively. 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. 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 toward the loan. For each of the respective nine-month periods ended September 30, 2022 and 2021, the Company made principal and interest payments of approximately $ 670,000 on the mortgage loan. FHLB Loan Agreements In December 2018, a subsidiary of the Company received a 3.094 % fixed interest rate cash loan of $ 19.2 million from the Federal Home Loan Bank (“FHLB”) Atlanta. In connection with the loan 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 the acquired FHLB common stock and certain other investments to be pledged as collateral. As of September 30, 2022, the fair value of the collateralized securities was $ 26.4 million and the equity investment in FHLB common stock was $ 1.2 million. For each of the nine-month periods ended September 30, 2022, and 2021, the Company made quarterly interest payments as per the terms of the loan agreement of approximately $ 450,500. As of September 30, 2022, and December 31, 2021, the Company also holds other common stock from FHLB Des Moines, and FHLB Boston valued at $ 319,100 and $ 215,900 , respectively. The following table summarizes the Company’s long-term debt and credit facilities as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Convertible debt $ 885 $ 23,413 Mortgage loan $ 11,281 $ 11,521 Credit loan facility $ 66,500 $ 69,125 Revolving credit facility $ 25,000 $ — FHLB loan agreement $ 19,200 $ 19,200 Total principal amount $ 122,866 $ 123,259 Deferred finance costs $ 1,583 $ 2,502 Total long-term debt $ 121,283 $ 120,757 After giving effect to Seventh Amendment, as of the date of this report, the Company was in compliance with the applicable terms of all its covenants and other requirements under the Credit Agreement, Convertible Notes indenture, cash borrowings and other loans. The Company’s ability to secure future debt financing depends, in part, on its ability to remain in such compliance. The covenants and other requirements under the revolving agreement represent the most restrictive provisions that the Company is subject to with respect to its long-term debt. The schedule of principal payments on long-term debt as of September 30, 2022 is as follows: Year Amount (In thousands) 2022 remaining $ 957 2023 23,039 2024 4,292 2025 5,624 2026 78,331 Thereafter 10,623 Total $ 122,866 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | NOTE 15. ACCOUNTS PAYABLE AND OTHER LIABILITIES Accounts payable and other liabilities consist of the following as of September 30, 2022 and December 31, 2021: Description September 30, 2022 December 31, 2021 (In thousands) Deferred reinsurance ceding commission $ 40,089 $ 40,406 Accounts payable and other payables 11,057 10,086 Accrued interest and issuance costs 575 735 Accrued dividends 72 1,634 Premium tax 1,523 871 Other liabilities 30 195 Commission payables 15,871 17,598 Total other liabilities $ 69,217 $ 71,525 |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 9 Months Ended |
Sep. 30, 2022 | |
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 the Company’s 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 Heritage P&C, NBIC, Zephyr, and Pawtucket Insurance Company (“PIC”) 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 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 capital and surplus of $ 3.0 million. The combined statutory surplus for Heritage P&C, Zephyr, NBIC and PIC was $ 261.4 million at September 30, 2022 and $ 302.1 million at December 31, 2021. State law also requires the Company’s insurance subsidiaries to adh ere to prescribed premium-to-capital surplus ratios, and risk-based capital requirements with which the Company is in compliance. At September 30, 2022, the Company’s insurance subsidiaries met the financial and regulatory requirements of each of the states in which they conduct business. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 18. RELATED PARTY TRANSACTIONS From time to time the Company has been party to various related party transactions involving certain of its officers, directors and significant stockholders, including as set forth below. The Company has entered into each of these arrangements without obligation to continue its effect in the future and the associated expense was immaterial to its results of operations or financial position as of September 30, 2022 and 2021. • In July 2019, 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 three months ended September 30, 2022 and 2021, the Company paid agency commission to Comegys of approximately $ 53,735 and $ 53,900 , respectively. For the nine months ended September 30, 2022 and 2021, the Company paid agency commission to Comegys of approximately $ 549,988 and $ 595,700 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE 19. EMPLOYEE BENEFIT PLANS 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 three and nine months ended September 30, 2022, the contributions made to the plan on behalf of the participating employees were approximately $ 276,090 and $ 1.0 million, respectively. For the three and nine months ended September 30, 2021, the contributions made to the plan on behalf of the participating employees were approximately $ 293,000 and $ 985,000 , 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 nine months ended September 30, 2022 and 2021, the Company incurred medical premium costs including the new 2021-2022 healthcare premiums, of $ 3.4 million and $ 2.6 million, respectively. As of September 30, 2022 and December 31, 2021, the Company had $ 0 million and $ 1.4 million of unapplied insurance premiums and additional liability recorded for unpaid claims, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | NOTE 20. 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 September 30, 2022, the Company had 25,898,930 shares of common stock outstanding, 11,890,599 treasury shares of common stock and 715,454 unvested restricted common stock with accrued dividends reflecting total paid-in capital of $ 334.2 million as of such date. As more fully disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2021, there were, 26,753,511 shares of common stock outstanding, 10,536,737 treasury shares of common stock and 283,092 unvested shares of restricted common stock, representing $ 332.8 million of additional paid-in capital. 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 are fully paid and non-assessable. Stock Repurchase Program 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 repurchasi ng 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"). For the nine months ended September 30, 2022, the Company repurchased in aggregate 1,353,862 shares of its common stock under its repurchase programs for $ 6.7 million. At September 30, 2022, the Company has the capacity under the New Share Repurchase Plan to repurchase $ 18.3 million of its common shares until December 31, 2022. Dividends 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 . On May 5, 2022 , the Company announced that its Board of Directors declared a $ 0.06 per share quarterly dividend payable on July 5, 2022 to stockholders of record as of June 14, 2022 . On August 3, 2022 , the Board of Directors elected to allocate the $ 0.06 per share typically used to pay a quarterly dividend to shareholders to repurchase common stock totaling $ 1.7 million. The Board of Directors re-evaluates dividend distribution on a quarterly basis and will make a determination, in part, based on the current stock trading price as compared to book value. 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 and the limitations under the Company’s debt facilities. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 21. STOCK-BASED COMPENSATION Common, Restricted and Performance-based 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. The Plan allows for a variety of equity awards including stock options, restricted stock awards and performance-based awards. At September 30, 2022 there were 386,603 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. Effective January 1, 2022, the Board of Directors approved the recommendations made by the Compensation Committee to revise the non-employee director compensation policy to provide that: (i) each non‐ employee director of the Company is entitled to an annual cash fee of $ 125,000 , payable quarterly; (ii) each member of a committee of the Board is entitled to an additional annual cash fee of $ 2,500 ; (iii) each chair of a committee of the Board is entitled to an additional $ 5,000 annual cash fee; (iv) the chair of the Board, to the extent the chair is a non‐employee director, is entitled to an additional annual cash fee of $ 20,000 ; and (v) each non‐employee director of the Company is granted annually a number of shares of restricted stock with a value equal to $ 40,000 at the date of issuance, a grant date of the date of the annual meeting of stockholders of the Company and which restricted stock will vest on the earlier of the one‐year anniversary of the date of issuance and the day immediately prior to the date of the following year’s annual meeting of stockholders of the Company. During the first quarter of 2022, the Company awarded 3,636 shares and 115,327 shares of time-based restricted stock with at the time of grant a fair value of $ 5.50 and $ 6.72 per share, respectively to certain employees. The time-based restricted stock will vest in two and three year equal installments on December 27, 2022, 2023 and 2024, respectively. In addition, during the first quarter of 2022, the Company awarded 10,909 shares and 245,536 shares of performance-based restricted stock with at the time grant a fair value of $ 5.50 and $ 6.72 per share, respectively. The performance-based restricted stock has a three-year performance period beginning on January 1, 2022 and ending on December 31, 2024 and will vest following the end of the performance period but no later than March 5, 2025. In January 2022, the Company awarded to non-employee directors in aggregate 21,768 shares of restricted stock with a fair value at the time of grant of $ 5.88 per share. The awards will vest on the date of the next annual meeting of the Company's stockholders that occurs after the award date, provided the member remains on the Board until such date. The Company's annual shareholders meeting was held on June 23, 2022, at which time the restricted stock was effectively vested. In June 2022, the Company awarded to non-employee directors in aggregate 99,376 shares of restricted stock with a fair value at the time of grant of $ 3.22 per share. The awards will vest on the earlier of the one year anniversary of the grant date and the date immediately prior to the date of the next annual meeting of the Company's stockholders that occurs after the award date, provided the member remains on the Board until such date. For the performance-based restricted stock the numbers 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. 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. 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 two 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 nine months ended September 30, 2022 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2021 283,092 $ 9.32 Granted - Performance-based restricted stock 256,445 6.67 Granted - Time-based restricted stock 240,107 5.18 Vested ( 41,919 ) 4.81 Canceled and surrendered ( 22,271 ) 4.40 Non-vested, at September 30, 2022 715,454 $ 7.40 Awards are being amortized to expense over the two to five-year vesting period. For the three months ended September 30, 2022 and 2021, the Company recognized $ 499,000 and $ 320,000 of compensation expense, respectively. The Company recognized $ 1.5 million and $ 867,000 of compensation expense for the nine months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022, 51,768 shares of restricted stock were vested and released, all of which had been granted to employees. Of the shares released to employees, 9,849 shares were withheld by the Company to cover withholding taxes of $ 58,000 . For the comparable period of 2021, 40,267 shares were vested and released of which 18,973 shares were withheld by the Company to cover withholding taxes of $ 171,000 . At September 30, 2022, there was approximately $ 1.2 million unrecognized expense related to time-based non-vested restricted stock and an additional $ 1.4 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 2021, there was $ 2.1 million of unrecognized expense. Additional information regarding the Company’s outstanding non-vested time-based restricted stock and performance-based restricted stock at September 30, 2022 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) February 12, 2018 25,000 16.35 0.75 April 24, 2020 127,837 10.43 2.00 September 21, 2020 37,349 10.71 2.00 January 4, 2021 62,906 6.89 2.00 March 3, 2022 14,545 5.50 2.88 March 16, 2022 360,863 6.72 2.88 June 23, 2022 86,954 3.22 1.00 715,454 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 22. SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the condensed consolidated financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the condensed consolidated financial statements as of September 30, 2022. On November 7, 2022, Heritage Insurance Holdings, Inc. and its subsidiary guarantors (together, the “Company”) amended that certain Credit Agreement dated as of December 14, 2018 (as amended to date, the “Credit Agreement”) by entering into the Seventh Amendment to the Credit Agreement (the “Seventh Amendment”) with the lenders party to the Credit Agreement, and Regions Bank, as administrative agent, collateral agent, swingline lender and issuing bank. The Seventh Amendment amended the Credit Agreement to, among other things, (i) decrease the revolving credit facility from $ 75 million to $ 50 million, (ii) establish a new $ 25 million term loan facility to refinance loans outstanding under the existing revolving credit facility and to pay fees, costs and expenses related thereto, (iii) reduce, from $ 50 million to $ 25 million, the aggregate amount of potential future increases to the revolving credit facility commitments and/or term loan commitments, (iii) modify the amortization of the existing term loan facility and new term loan facility to 10 % per annum, paid quarterly, and (iii) increase the applicable margin for loans under the Credit Agreement to a range from 2.75 % to 3.25 % per annum for SOFR loans (plus a 0.10 % credit adjustment spread) and based on a leverage ratio (an increase from the prior range of 2.50 % to 3.00 %). The Seventh Amendment also modifies certain financial covenants in the Credit Agreement which may limit the Company’s flexibility in connection with future financing transactions and in the allocation of capital in the future. Specifically, starting in the first quarter of 2023, the Seventh Amendment amends certain financial covenants as follows: (1) require additional leverage ratios under the Consolidated Leverage Ratio covenant (as defined in the Credit Agreement) after the initial step down to 2.50 x in the second quarter of 2023 not to exceed 2.25 x as of the second quarter of 2024 and 2.00 x as of the second quarter of 2025 , (2) apply all (A) Restricted Payments (as defined in the Credit Agreement) and (B) fee forgiveness & other capital contributions to the Company’s regulated insurance companies that are not a party to the Credit Agreement (“Non-credit Parties”) that exceed $ 38 million, when calculating (i) Consolidated Tangible Net Worth (as defined in the Credit Agreement) which is required to be not less than $ 100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash proceeds of any equity transactions and (ii) Consolida ted Fixed Charge Ratio (as defined in the Credit Agreement) which is required to be 1.20 x . The Seventh Amendment also (A) eliminates the current $ 10 million basket available to the Company to pay dividends to its shareholders or to repurchase its securities, (B) provides for a dividend of up to $ 2.0 million in the fourth quarter of 2024 under certain conditions and (C) restricts future dividends based on maintenance of certain financial ratios, including Consolidated Tangible Net Worth. As a result, going forward, dividends and stock repurchases may be limited or restricted entirely and the Company’s ability to contribute capital to its insurance subsidiaries that are not parties to the Credit Agreement may be limited. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company”). These statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain financial information that is normally included in annual consolidated financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim condensed consolidated financial statements and related footnotes should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on March 14, 2022 (the “2021 Form 10-K”) |
Significant accounting policies | Significant accounting policies a) Income Taxes During a third quarter assessment of the Company's deferred tax position, a valuation allowance of $ 10.7 million was recorded against the Company's deferred tax asset as of September 30, 2022. Based on the Internal Revenue Code (“IRC”) Section 953(d) election made for Osprey Re, the Company's captive reinsurer domiciled in Bermuda, the Company concluded a valuation allowance for its net deferred tax assets was necessary because those net deferred tax assets can only be applied to offset future taxable income of Osprey Re. Based on current available evidence, management does not believe there will be sufficient future Osprey Re taxable income over the next year in order to realize those net deferred tax assets. In the event Osprey Re recognizes future taxable income, the proportionate amount of the net operating loss carryforward will be used and an equivalent amount of the valuation allowance will reverse. b) Changes to Significant Accounting Policies The accounting policies of the Company are set forth in Note 1 to condensed consolidated financial statements contained in the Company’s 2021 Form 10-K. |
Reclassification | Reclassification Certain prior year amounts reported on the condensed consolidated statements of cashflows have been reclassified to conform to the current year presentation. |
Accounting Pronouncements | Accounting Pronouncements adopted In August 2020, the FASB issued ASU 2020-06, " Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" . The ASU i)simplifies the accounting for convertible debt and convertible preferred stock by reducing the number of accounting models, and amends certain disclosures, ii) amends and simplifies the derivative scope exception guidance for contracts in an entity's own equity, including share-based compensation, and iii) amends the diluted earnings per share calculations for convertible instruments and contracts in an entity's own equity. The if-converted method will be the only permissible method for computing the dilutive effect of the convertible debt instruments. Interest expense no longer includes amortization of debt discount. The Company adopted the guidance of ASU 2020-06 on January 1, 2022, reporting no material impact to the Company's consolidated condensed financial statements or disclosures. Accounting Pronouncements not yet adopted In March 2022, the FASB issued ASU 2022-02, “2022-02 Financial Instruments-Credit Losses ” (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for annual periods beginning after December 15, 2022, including interim periods within those periods. Early adoption is permitted. The Company will adopt ASU 2022-02 during the first quarter of 2023 and will provide the required disclosures, if determined to be material. The Company has documented the summary of its significant accounting policies in its Notes to the Audited Consolidated Financial Statements annual report on Form 10-K. There have been no material changes to the Company’s accounting policies since the filing of that report. No other new accounting pronouncements issued but not yet effective have had, or are expected to have, a material impact on the Company’s results of operations or financial position. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 for the periods presented: September 30, 2022 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 118,629 $ 11 $ 4,354 $ 114,286 States, municipalities and political subdivisions 105,221 1 13,037 92,185 Special revenue 290,424 47 34,153 256,318 Industrial and miscellaneous 190,091 44 19,732 170,403 Total $ 704,365 $ 103 $ 71,276 $ 633,192 (1) Includes securities at September 30, 2022 with a carrying amount of $ 26.4 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, 2021 Cost or Adjusted / Gross Unrealized Gross Unrealized Fair Value Debt Securities Available-for-sale (In thousands) 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. |
Schedule of Net Realized (Losses) Gains on Debt Securities Available-for-sale | The following table presents net realized (losses) gains on the Company’s debt securities available-for-sale for the three and nine months ended September 30, 2022 and 2021, respectively: 2022 2021 Three Months Ended September 30, Gains Fair Value at Sale Gains Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ — $ 50 $ 2 $ 3,470 Total realized losses ( 3 ) 110 ( 8 ) 226 Net realized (losses) and gains $ ( 3 ) $ 160 $ ( 6 ) $ 3,696 2022 2021 Nine Months Ended September 30, Gains Fair Value at Sale Gains Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 32 $ 2,451 $ 106 $ 24,265 Total realized losses ( 153 ) 6,206 ( 10 ) 1,043 Net realized (losses) and gains $ ( 121 ) $ 8,657 $ 96 $ 25,308 As of September 30, 2021, the Company recorded on its condensed consolidated statement of operations in net realized (losses) gains an impairment of approximately $ 1.0 million on its REIT investment which is excluded from the table above. |
Summary of Debt Securities by Contractual Maturity Periods | The table below summarizes the Company’s debt securities at September 30, 2022 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At September 30, 2022 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) Due in one year or less $ 95,442 14 % $ 93,586 15 % Due after one year through five years 342,738 49 % 313,712 50 % Due after five years through ten years 199,300 28 % 165,917 26 % Due after ten years 66,885 9 % 59,977 9 % Total $ 704,365 100 % $ 633,192 100 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) (In thousands) Debt securities $ 2,992 $ 1,986 $ 7,695 $ 5,164 Equity securities — — — — Cash and cash equivalents 273 17 433 72 Other investments 135 514 447 1,101 Net investment income 3,400 2,517 8,575 6,337 Less: Investment expenses 513 969 1,525 2,540 Net investment income, less investment expenses $ 2,887 $ 1,548 $ 7,050 $ 3,797 |
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 (including securities pledged) and for which no credit loss allowance been established to date, the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position at September 30, 2022 and December 31, 2021, respectively: Less Than Twelve Months Twelve Months or More September 30, 2022 Number of Gross Fair Value Number of Gross Fair Value Debt Securities Available-for-sale U.S. government and agency securities 93 $ 4,023 $ 98,801 5 $ 331 $ 8,911 States, municipalities and political subdivisions 61 5,166 39,273 64 7,871 47,766 Special revenue 378 15,277 121,001 153 18,876 103,038 Industrial and miscellaneous 190 7,376 98,431 103 12,356 66,066 Total fixed maturity securities 722 $ 31,842 $ 357,506 325 $ 39,434 $ 225,781 Less Than Twelve Months Twelve Months or More December 31, 2021 Number of Gross Fair Value Number of Gross Fair Value Debt Securities Available-for-sale U.S. government and agency securities 43 $ 282 $ 57,420 — $ — $ — States, municipalities and political 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 fixed maturity securities 585 $ 7,424 $ 480,588 32 $ 613 $ 12,812 |
Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs by Category | The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at September 30, 2022 and December 31, 2021: As of September 30, 2022 As of December 31, 2021 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure (in thousands) Investments in non-consolidated VIEs - Equity Method $ 3,517 $ 3,517 $ 3,852 $ 3,852 Investments in non-consolidated VIEs - Amortized Cost $ 8,490 $ 8,490 $ 15,000 $ 15,000 Investments in non-consolidated VIEs - Measure Alternative $ 5,077 $ 5,077 $ 5,077 $ 5,077 Total non-consolidated VIEs $ 17,084 $ 17,084 $ 23,929 $ 23,929 |
Fair Value of Financial Measu_2
Fair Value of Financial Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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. The tables below present the balances of the Company’s invested assets measured at fair value on a recurring basis: September 30, 2022 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 $ 114,286 $ — $ 114,286 $ — States, municipalities and political subdivisions 92,185 — 92,185 — Special revenue 256,318 — 256,318 — Industrial and miscellaneous 170,403 — 170,403 — Total investments $ 633,192 $ — $ 633,192 $ — 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 investments $ 669,354 $ 364 $ 668,990 $ — |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [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 and discloses the tax impact of each component of other comprehensive loss for the three and nine months ended September 30, 2022 and 2021, respectively: For the Three Months Ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive loss Change in unrealized losses on investments, net $ ( 17,471 ) $ 4,090 $ ( 13,381 ) $ ( 1,344 ) $ 311 $ ( 1,033 ) Reclassification adjustment of realized losses (gains) included in net loss 3 ( 1 ) 2 6 ( 1 ) 5 Effect on other comprehensive loss $ ( 17,468 ) $ 4,089 $ ( 13,379 ) $ ( 1,338 ) $ 310 $ ( 1,028 ) For the Nine Months Ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive loss Change in unrealized losses on investments, net $ ( 65,403 ) $ 15,310 $ ( 50,093 ) $ ( 8,316 ) $ 1,928 $ ( 6,388 ) Reclassification adjustment of realized losses (gains) included in net loss 121 ( 28 ) 93 ( 96 ) 22 ( 74 ) Effect on other comprehensive loss $ ( 65,282 ) $ 15,282 $ ( 50,000 ) $ ( 8,412 ) $ 1,950 $ ( 6,462 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Costs | Components of the Company’s lease costs for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands): Three Months Ended Three Months Ended Amortization of ROU assets - Finance leases $ 651 $ 647 Interest on lease liabilities - Finance leases 244 263 Variable lease cost (cost excluded from lease payments) 287 112 Operating lease cost (cost resulting from lease payments) 350 339 Total lease cost $ 1,532 $ 1,361 Nine Months Ended Nine Months Ended Amortization of ROU assets - Finance leases $ 1,943 $ 1,321 Interest on lease liabilities - Finance leases 739 524 Variable lease cost (cost excluded from lease payments) 713 373 Operating lease cost (cost resulting from lease payments) 1,055 1,018 Total lease cost $ 4,450 $ 3,236 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases | Supplemental cash flow information and non-cash activity related to the Company’s operating and financing leases were as follows (in thousands): At September 30, 2022 At September 30, 2021 Finance lease - Operating cash flows $ 737 $ 31 Finance lease - Financing cash flows $ 1,540 $ 100 Operating lease - Operating cash flows (fixed payments) $ 1,188 $ 1,123 Operating lease - Operating cash flows (liability reduction) $ 942 $ 840 |
Supplemental Balance Sheet Information Related to Operating and Financing Leases | Supplemental balance sheet information related to the Company’s operating and financing leases as of September 30, 2022 were as follows (in thousands): Balance Sheet September 30, 2022 December 31, 2021 Right-of-use assets - operating Right-of-use lease asset, net $ 4,437 $ 5,035 Right-of-use assets - finance Right-of-use lease asset, net $ 20,781 $ 22,718 Lease liability - operating Lease liability $ 5,821 $ 6,551 Lease liability - finance Lease liability $ 23,080 $ 24,621 |
Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases | Weighted-average remaining lease term and discount rate for the Company’s operating and financing leases for the periods presented below were as follows: September 30, 2022 September 30, 2021 Weighted average lease term - Finance leases 8.37 yrs. 9.34 yrs. Weighted average lease term - Operating leases 5.68 yrs. 6.40 yrs. Weighted average discount rate - Finance leases 4.2 % 4.2 % Weighted average discount rate - Operating leases 5.4 % 5.3 % |
Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases | Maturities of lease liabilities by fiscal year for the Company’s operating and financing leases were as follows (in thousands): September 30, 2022 2022 remaining $ 1,161 2023 4,592 2024 4,263 2025 3,970 2026 3,990 Thereafter 16,225 Total lease payments 34,201 Less: imputed interest ( 5,300 ) Present value of lease liabilities $ 28,901 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (In thousands) Land $ 2,582 $ 2,582 Building 10,141 10,141 Computer hardware and software 12,089 7,204 Office furniture and equipment 1,381 1,355 Tenant and leasehold improvements 10,172 8,255 Vehicle fleet 720 720 Total, at cost 37,085 30,257 Less: accumulated depreciation and amortization ( 14,301 ) ( 12,831 ) Property and equipment, net $ 22,784 $ 17,426 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in thousands) Balance as of December 31, 2021 $ 91,959 Goodwill acquired — Impairment ( 91,959 ) Balance as of September 30, 2022 $ — |
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 - remaining $ 1,588 2023 $ 6,351 2024 $ 6,351 2025 $ 6,315 2026 $ 6,114 Thereafter $ 23,129 Total $ 49,848 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Loss Per Share (EPS) | The following table sets forth the computation of basic and diluted loss per share (“EPS”) for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic loss per share: Net loss attributable to common stockholders (000's) $ ( 48,240 ) $ ( 16,410 ) $ ( 166,864 ) $ ( 25,509 ) Weighted average shares outstanding 26,369,265 27,938,028 26,536,700 27,902,814 Basic loss per share: $ ( 1.83 ) $ ( 0.59 ) $ ( 6.29 ) $ ( 0.91 ) Diluted loss per share: Net loss attributable to common stockholders (000's) $ ( 48,240 ) $ ( 16,410 ) $ ( 166,864 ) $ ( 25,509 ) Weighted average shares outstanding 26,369,265 27,938,028 26,536,700 27,902,814 Total weighted average dilutive shares 26,369,265 27,938,028 26,536,700 27,902,814 Diluted loss per share: $ ( 1.83 ) $ ( 0.59 ) $ ( 6.29 ) $ ( 0.91 ) |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission | The table below depicts the activity regarding deferred reinsurance ceding commission, included in accounts payable and other liabilities during the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Beginning balance of deferred reinsurance ceding commission income $ 38,529 $ 39,940 $ 40,405 $ 39,995 Ceding commission deferred 17,046 17,659 46,110 48,447 Less: ceding commission earned ( 15,486 ) ( 15,978 ) ( 46,426 ) ( 46,821 ) Ending balance of deferred reinsurance ceding commission income $ 40,089 $ 41,621 $ 40,089 $ 41,621 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The Company anticipates that its DPAC will be fully recoverable in the near term. The table below depicts the activity regarding DPAC for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Beginning Balance $ 99,468 $ 95,967 $ 93,881 $ 89,265 Policy acquisition costs deferred 39,194 47,976 139,028 144,380 Amortization ( 38,013 ) ( 48,518 ) ( 132,260 ) ( 138,220 ) Ending Balance $ 100,649 $ 95,425 $ 100,649 $ 95,425 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Asset (Liability) | The table below summarizes the significant components of the Company’s net deferred asset (liability): September 30, 2022 December 31, 2021 Deferred tax assets: (In thousands) Unearned premiums $ 13,454 $ 15,805 Unearned commission 9,384 9,459 State net operating loss 1,490 1,222 Tax-related discount on loss reserve 4,799 3,872 Stock-based compensation 455 84 Accrued expenses 1,481 1,182 Leases 841 792 Unrealized losses 17,195 1,913 Federal net operating loss carryforward 15,752 — Other 416 472 Valuation allowance ( 10,650 ) — Total deferred tax asset 54,617 34,801 Deferred tax liabilities: Deferred acquisition costs 23,561 21,977 Prepaid expenses 118 177 Property and equipment 1,221 1,504 Note discount 225 187 Basis in purchased investments 666 34 Basis in purchased intangibles — 14,550 Internal revenue code 481(a)-Accounting method change 1,104 4,416 Amortization of goodwill 11,459 — Other 1,626 1,382 Total deferred tax liabilities 39,980 44,227 Net deferred tax asset (liability) $ 14,637 $ ( 9,426 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
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 condensed consolidated statement of income for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) (In thousands) Premium written: Direct $ 304,501 $ 274,178 $ 952,981 $ 886,059 Ceded ( 60,885 ) ( 53,505 ) ( 536,139 ) ( 491,677 ) Net $ 243,616 $ 220,673 $ 416,842 $ 394,382 Premiums earned: Direct $ 307,959 $ 294,409 $ 891,539 $ 850,466 Ceded ( 148,266 ) ( 131,964 ) ( 420,645 ) ( 399,323 ) Net $ 159,693 $ 162,445 $ 470,894 $ 451,143 Loss and Loss Adjustment Expenses Direct $ 809,993 $ 195,099 $ 1,147,243 $ 483,382 Ceded ( 654,144 ) ( 65,467 ) ( 749,834 ) ( 155,006 ) Net $ 155,849 $ 129,632 $ 397,409 $ 328,376 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Summary of Reserve for Unpaid Losses | The table below summarizes the activity related to the Company’s reserve for unpaid losses: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Balance, beginning of period $ 553,909 $ 625,979 $ 590,166 $ 659,341 Less: reinsurance recoverable on unpaid losses 235,239 366,879 301,757 397,688 Net balance, beginning of period 318,670 259,100 288,409 261,653 Incurred related to: Current year 156,855 130,425 395,921 331,374 Prior years ( 1,006 ) ( 793 ) 1,489 ( 2,998 ) Total incurred 155,849 129,632 397,410 328,376 Paid related to: Current year 70,914 75,508 170,255 171,128 Prior years 24,088 27,273 136,047 132,950 Total paid 95,002 102,781 306,302 304,078 Net balance, end of period 379,517 285,951 379,517 285,951 Plus: reinsurance recoverable on unpaid losses 829,835 350,195 829,835 350,195 Balance, end of period $ 1,209,352 $ 636,146 $ 1,209,352 $ 636,146 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Long Term Debt and Credit Facilities | The following table summarizes the Company’s long-term debt and credit facilities as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Convertible debt $ 885 $ 23,413 Mortgage loan $ 11,281 $ 11,521 Credit loan facility $ 66,500 $ 69,125 Revolving credit facility $ 25,000 $ — FHLB loan agreement $ 19,200 $ 19,200 Total principal amount $ 122,866 $ 123,259 Deferred finance costs $ 1,583 $ 2,502 Total long-term debt $ 121,283 $ 120,757 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt as of September 30, 2022 is as follows: Year Amount (In thousands) 2022 remaining $ 957 2023 23,039 2024 4,292 2025 5,624 2026 78,331 Thereafter 10,623 Total $ 122,866 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities consist of the following as of September 30, 2022 and December 31, 2021: Description September 30, 2022 December 31, 2021 (In thousands) Deferred reinsurance ceding commission $ 40,089 $ 40,406 Accounts payable and other payables 11,057 10,086 Accrued interest and issuance costs 575 735 Accrued dividends 72 1,634 Premium tax 1,523 871 Other liabilities 30 195 Commission payables 15,871 17,598 Total other liabilities $ 69,217 $ 71,525 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the nine months ended September 30, 2022 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2021 283,092 $ 9.32 Granted - Performance-based restricted stock 256,445 6.67 Granted - Time-based restricted stock 240,107 5.18 Vested ( 41,919 ) 4.81 Canceled and surrendered ( 22,271 ) 4.40 Non-vested, at September 30, 2022 715,454 $ 7.40 |
Additional Information Regarding Outstanding Non-vested Time-based Restricted Stock and Performance-based Restricted Stock | Additional information regarding the Company’s outstanding non-vested time-based restricted stock and performance-based restricted stock at September 30, 2022 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) February 12, 2018 25,000 16.35 0.75 April 24, 2020 127,837 10.43 2.00 September 21, 2020 37,349 10.71 2.00 January 4, 2021 62,906 6.89 2.00 March 3, 2022 14,545 5.50 2.88 March 16, 2022 360,863 6.72 2.88 June 23, 2022 86,954 3.22 1.00 715,454 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred tax assets valuation allowance | $ 10,650 | $ 0 |
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 | Sep. 30, 2022 | Dec. 31, 2021 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 704,365 | $ 675,245 | ||
Debt Securities Available-for-sale, Gross Unrealized Gains | 103 | 2,146 | ||
Debt Securities Available-for-sale, Gross Unrealized Losses | 71,276 | 8,037 | ||
Debt securities, available-for-sale | 633,192 | 669,354 | ||
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 | 118,629 | [1] | 73,923 | [2] |
Debt Securities Available-for-sale, Gross Unrealized Gains | 11 | [1] | 184 | [2] |
Debt Securities Available-for-sale, Gross Unrealized Losses | 4,354 | [1] | 282 | [2] |
Debt securities, available-for-sale | 114,286 | [1] | 73,825 | [2] |
States, Municipalities and Political Subdivisions [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 105,221 | 106,727 | ||
Debt Securities Available-for-sale, Gross Unrealized Gains | 1 | 242 | ||
Debt Securities Available-for-sale, Gross Unrealized Losses | 13,037 | 1,270 | ||
Debt securities, available-for-sale | 92,185 | 105,699 | ||
Special Revenue [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 290,424 | 291,005 | ||
Debt Securities Available-for-sale, Gross Unrealized Gains | 47 | 1,084 | ||
Debt Securities Available-for-sale, Gross Unrealized Losses | 34,153 | 3,520 | ||
Debt securities, available-for-sale | 256,318 | 288,569 | ||
Hybrid Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 99 | |||
Debt Securities Available-for-sale, Gross Unrealized Gains | ||||
Debt Securities Available-for-sale, Gross Unrealized Losses | ||||
Debt securities, available-for-sale | 99 | |||
Industrial and Miscellaneous [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 190,091 | 203,491 | ||
Debt Securities Available-for-sale, Gross Unrealized Gains | 44 | 636 | ||
Debt Securities Available-for-sale, Gross Unrealized Losses | 19,732 | 2,965 | ||
Debt securities, available-for-sale | $ 170,403 | $ 201,162 | ||
[1] Includes securities at September 30, 2022 with a carrying amount of $ 26.4 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. 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. |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Carrying amount | $ 26.4 | $ 22.5 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized (Losses) Gains on Debt Securities Available-for-sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Securities Available-for-Sale | ||||
Total realized gains | $ 0 | $ 2 | $ 32 | $ 106 |
Total realized losses | (3) | (8) | (153) | (10) |
Net realized (losses) and gains | (3) | (6) | (121) | 96 |
Debt Securities Available-for-sale, Fair Value at Sale | ||||
Total realized gains, Fair Value at Sale | 50 | 3,470 | 2,451 | 24,265 |
Total realized losses, Fair Value at Sale | 110 | 226 | 6,206 | 1,043 |
Net realized gains (losses), Fair Value at Sale | $ 160 | $ 3,696 | $ 8,657 | $ 25,308 |
Investments - Summary of Debt S
Investments - Summary of Debt Securities by Contractual Maturity Periods (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Maturity date Due in one year or less, Cost or Amortized Cost | $ 95,442 | |
Maturity date Due after one year through five years, Cost or Amortized Cost | 342,738 | |
Maturity date Due after five years through ten years, Cost or Amortized Cost | 199,300 | |
Maturity date Due after ten years, Cost or Amortized Cost | 66,885 | |
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 704,365 | $ 675,245 |
Maturity date Due in one year or less, Percentage of Total | 14% | |
Maturity date Due after one year through five years, Percentage of Total | 49% | |
Maturity date Due after five years through ten years, Percentage of Total | 28% | |
Maturity date Due after ten years, Percentage of Total | 9% | |
Maturity date Total, Percentage | 100% | |
Maturity date Due in one year or less, Fair Value | $ 93,586 | |
Maturity date Due after one year through five years, Fair Value | 313,712 | |
Maturity date Due after five years through ten years, Fair Value | 165,917 | |
Maturity date Due after ten years, Fair Value | 59,977 | |
Maturity date Total, Fair Value | $ 633,192 | $ 669,354 |
Maturity date Due in one year or less, Percentage of Total | 15% | |
Maturity date Due after one year through five years, Percentage of Total | 50% | |
Maturity date Due after five years through ten years, Percentage of Total | 26% | |
Maturity date Due after ten years, Percentage of Total | 9% | |
Maturity date Total, Percentage | 100% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 3,400 | $ 2,517 | $ 8,575 | $ 6,337 |
Less: Investment expenses | 513 | 969 | 1,525 | 2,540 |
Net investment income, less investment expenses | 2,887 | 1,548 | 7,050 | 3,797 |
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 2,992 | 1,986 | 7,695 | 5,164 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 273 | 17 | 433 | 72 |
Other Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 135 | $ 514 | $ 447 | $ 1,101 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value (Detail) $ in Thousands | Sep. 30, 2022 USD ($) Security | Dec. 31, 2021 USD ($) Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 722 | 585 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 31,842 | $ 7,424 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 357,506 | $ 480,588 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 325 | 32 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 39,434 | $ 613 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 225,781 | $ 12,812 |
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 | 93 | 43 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 4,023 | $ 282 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 98,801 | $ 57,420 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 5 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 331 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 8,911 | |
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 | 61 | 98 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 5,166 | $ 1,270 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 39,273 | $ 80,972 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 64 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 7,871 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 47,766 | |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 378 | 253 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 15,277 | $ 3,485 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 121,001 | $ 195,450 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 153 | 14 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 18,876 | $ 35 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 103,038 | $ 1,214 |
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 | 190 | 191 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 7,376 | $ 2,387 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 98,431 | $ 146,746 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 103 | 18 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 12,356 | $ 578 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 66,066 | $ 11,598 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments [Line Items] | ||||
Credit allowance for securities | $ 0 | $ 0 | ||
Net realized and unrealized (losses) gains | $ (3) | $ (6) | $ (121) | $ (926) |
Real Estate Investment Trust [Member] | ||||
Investments [Line Items] | ||||
Net realized and unrealized (losses) gains | $ 1,000 |
Investments - Summary of Carryi
Investments - Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Carrying Value | $ 17,084 | $ 23,929 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 17,084 | 23,929 |
Maximum Loss Exposure | 17,084 | 23,929 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Investments in non-consolidated VIEs - Equity Method | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 3,517 | 3,852 |
Maximum Loss Exposure | 3,517 | 3,852 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Investments in non-consolidated VIEs - Amortized Cost | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 8,490 | 15,000 |
Maximum Loss Exposure | 8,490 | 15,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Investments in non-consolidated VIEs - Measure Alternative | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 5,077 | 5,077 |
Maximum Loss Exposure | $ 5,077 | $ 5,077 |
Fair Value of Financial Measu_3
Fair Value of Financial Measurements - Schedule of Fair Value of Measurements (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt securities, available-for-sale | $ 633,192 | $ 669,354 | ||
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 | 364 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt securities, available-for-sale | 633,192 | 668,990 | ||
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 | 114,286 | [1] | 73,825 | [2] |
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 | 0 | 364 | ||
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 | 114,286 | 73,461 | ||
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 | 92,185 | 105,699 | ||
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 | 92,185 | 105,699 | ||
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 | 256,318 | 288,569 | ||
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 | 256,318 | 288,569 | ||
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 | |||
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 | |||
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 | |||
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 | |||
Industrial and Miscellaneous [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt securities, available-for-sale | 170,403 | 201,162 | ||
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 | 170,403 | 201,162 | ||
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 | ||
[1] Includes securities at September 30, 2022 with a carrying amount of $ 26.4 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. 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. |
Fair Value of Financial Measu_4
Fair Value of Financial Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||||||
Goodwill impairment | $ 0 | $ 92,000 | $ 0 | $ 91,959 | $ 0 | $ 61,000 | |
Impairment charges on other investments | $ 1,000 | ||||||
Goodwill | $ 0 | $ 92,000 | $ 0 | $ 91,959 |
Other Comprehensive Loss - Summ
Other Comprehensive Loss - Summary of Other Comprehensive (Loss) Income and Tax Impact of Each Component of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other comprehensive loss | ||||
Change in unrealized losses on investments, net, Pre-tax | $ (17,471) | $ (1,344) | $ (65,403) | $ (8,316) |
Reclassification adjustment of realized losses (gains) included in net loss, Pre-tax | 3 | 6 | 121 | (96) |
Effect on other comprehensive (loss) , Pre-tax | (17,468) | (1,338) | (65,282) | (8,412) |
Change in unrealized losses on investments, net, Tax | 4,090 | 311 | 15,310 | 1,928 |
Reclassification adjustment of realized losses (gains) included in net income, Tax | (1) | (1) | (28) | 22 |
Effect on other comprehensive loss, Tax | 4,089 | 310 | 15,282 | 1,950 |
Change in unrealized (losses) gains on investments, net, After-tax | (13,381) | (1,033) | (50,093) | (6,388) |
Reclassification adjustment of realized losses (gains) included in net loss, After-tax | 2 | 5 | 93 | (74) |
Effect on other comprehensive loss, After-tax | $ (13,379) | $ (1,028) | $ (50,000) | $ (6,462) |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Amortization of ROU assets - Finance leases | $ 651 | $ 647 | $ 1,943 | $ 1,321 |
Interest on lease liabilities - Finance leases | 244 | 263 | 739 | 524 |
Variable lease cost (cost excluded from lease payments) | 287 | 112 | 713 | 373 |
Operating lease cost (cost resulting from lease payments) | 350 | 339 | 1,055 | 1,018 |
Total lease cost | $ 1,532 | $ 1,361 | $ 4,450 | $ 3,236 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Finance lease - Operating cash flows | $ 737 | $ 31 |
Finance lease - Financing cash flows | 1,540 | 100 |
Operating lease - Operating cash flows (fixed payments) | 1,188 | 1,123 |
Operating lease - Operating cash flows (liability reduction) | $ 942 | $ 840 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use lease assets - operating | $ 4,437 | $ 5,035 |
Right-of-use lease assets - finance | $ 20,781 | $ 22,718 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right-of-use lease asset, net | Right-of-use lease asset, net |
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 | $ 5,821 | $ 6,551 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease liability | Lease liability |
Lease liability - finance | $ 23,080 | $ 24,621 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease liability | Lease liability |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases (Detail) | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Weighted average lease term - Finance leases | 8 years 4 months 13 days | 9 years 4 months 2 days |
Weighted average lease term - Operating leases | 5 years 8 months 4 days | 6 years 4 months 24 days |
Weighted average discount rate - Finance leases | 4.20% | 4.20% |
Weighted average discount rate - Operating leases | 5.40% | 5.30% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 remaining | $ 1,161 | |
2023 | 4,592 | |
2024 | 4,263 | |
2025 | 3,970 | |
2026 | 3,990 | |
Thereafter | 16,225 | |
Total lease payments | 34,201 | |
Less: imputed interest | (5,300) | |
Present value of lease liabilities | $ 28,901 | $ 31,172 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 37,085 | $ 30,257 |
Less: accumulated depreciation and amortization | (14,301) | (12,831) |
Property and equipment, net | 22,784 | 17,426 |
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 | 12,089 | 7,204 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,381 | 1,355 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 10,172 | 8,255 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 720 | $ 720 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) Building | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) ft² a Building | Sep. 30, 2021 USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||||
Depreciation and amortization expense | $ | $ 544,900 | $ 736,000 | $ 1,500 | $ 1,600 |
Number of acres of land purchased | a | 15 | |||
Number of buildings | Building | 2 | 2 | ||
Gross area of acquired property | ft² | 88,378 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 0 | $ 92,000 | $ 0 | $ 91,959 | ||
Intangibles, net | 51,163 | 51,163 | 55,926 | |||
Indefinite lived intangible, insurance licenses | 1,300 | 1,300 | ||||
Amortization of intangible assets | 1,600 | $ 1,600 | 4,800 | $ 4,800 | ||
Impairment of intangible assets | 0 | 0 | 0 | 0 | ||
Goodwill impairment | $ 0 | $ 92,000 | $ 0 | $ 91,959 | $ 0 | $ 61,000 |
Maximum [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible asset | 15 years | |||||
Minimum [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Useful life of intangible asset | 2 years 6 months |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Beginning balance | $ 92,000 | $ 91,959 | ||||
Goodwill acquired | 0 | |||||
Impairment | 0 | $ (92,000) | $ 0 | (91,959) | $ 0 | $ (61,000) |
Ending balance | $ 0 | $ 92,000 | $ 0 | $ 91,959 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 - remaining | $ 1,588 |
2023 | 6,351 |
2024 | 6,351 |
2025 | 6,315 |
2026 | 6,114 |
Thereafter | 23,129 |
Total | $ 49,848 |
Loss Per Share - Schedule of Co
Loss Per Share - Schedule of Computation of Basic and Diluted Loss Per Share (EPS) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic loss per share: | ||||
Net loss attributable to common stockholders (000's) | $ (48,240) | $ (16,410) | $ (166,864) | $ (25,509) |
Basic | 26,369,265 | 27,938,028 | 26,536,700 | 27,902,814 |
Basic loss per share: | $ (1.83) | $ (0.59) | $ (6.29) | $ (0.91) |
Diluted loss per share: | ||||
Net loss attributable to common stockholders (000's) | $ (48,240) | $ (16,410) | $ (166,864) | $ (25,509) |
Weighted average shares outstanding | 26,369,265 | 27,938,028 | 26,536,700 | 27,902,814 |
Total weighted average dilutive shares | 26,369,265 | 27,938,028 | 26,536,700 | 27,902,814 |
Diluted loss per share: | $ (1.83) | $ (0.59) | $ (6.29) | $ (0.91) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Number of antidilutive shares | 196,914 | 2,677,355 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Policy Acquisition Costs [Member] | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 11.7 | $ 12 | $ 34.9 | $ 35.2 |
General and Administrative Expenses [Member] | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 3.8 | $ 4 | $ 11.5 | $ 11.6 |
Deferred Reinsurance Ceding C_4
Deferred Reinsurance Ceding Commission - Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Insurance [Abstract] | ||||
Beginning balance of deferred reinsurance ceding commission income | $ 38,529 | $ 39,940 | $ 40,405 | $ 39,995 |
Ceding commission deferred | 17,046 | 17,659 | 46,110 | 48,447 |
Less: ceding commission earned | (15,486) | (15,978) | (46,426) | (46,821) |
Ending balance of deferred reinsurance ceding commission income | $ 40,089 | $ 41,621 | $ 40,089 | $ 41,621 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Insurance [Abstract] | ||||
Beginning Balance | $ 99,468 | $ 95,967 | $ 93,881 | $ 89,265 |
Policy acquisition costs deferred | 39,194 | 47,976 | 139,028 | 144,380 |
Amortization | (38,013) | (48,518) | (132,260) | (138,220) |
Ending Balance | $ 100,649 | $ 95,425 | $ 100,649 | $ 95,425 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Valuation Allowance | $ (10,650) | $ (10,650) | $ 0 | ||
Benefit for income taxes | $ (1,095) | $ (1,117) | $ (11,155) | $ (5,644) | |
Annual effective tax rate | 2.20% | 6.40% | 6.30% | 18.10% | |
Operating loss carryforwards | $ 20,700 | $ 45,800 | $ 20,700 | $ 45,800 | |
Operating loss carryforwards expiration year | 2042 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Unearned premiums | $ 13,454 | $ 15,805 |
Unearned commission | 9,384 | 9,459 |
State net operating loss | 1,490 | 1,222 |
Tax-related discount on loss reserve | 4,799 | 3,872 |
Stock-based compensation | 455 | 84 |
Accrued expenses | 1,481 | 1,182 |
Leases | 841 | 792 |
Unrealized losses | 17,195 | 1,913 |
Federal net operating loss carryforward | 15,752 | 0 |
Other | 416 | 472 |
Valuation Allowance | (10,650) | 0 |
Total deferred tax asset | 54,617 | 34,801 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 23,561 | 21,977 |
Prepaid expenses | 118 | 177 |
Property and equipment | 1,221 | 1,504 |
Note discount | 225 | 187 |
Basis in purchased investments | 666 | 34 |
Basis in purchased intangibles | 0 | 14,550 |
Internal revenue code 481(a)-Accounting method change | 1,104 | 4,416 |
Amortization of goodwill | 11,459 | 0 |
Other | 1,626 | 1,382 |
Total deferred tax liabilities | 39,980 | 44,227 |
Net deferred tax asset (liability) | $ 14,637 | $ 9,426 |
Reinsurance - 2022-2023 Reinsur
Reinsurance - 2022-2023 Reinsurance Program - Catastrophe Excess of Loss Reinsurance - Additional information - (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Reinsurance payable | $ 278,298 | $ 191,728 |
FHCF [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Reinsured risk percentage | 90% | |
2022-2023 Reinsurance Program [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Reinsurance purchase limit | $ 3,200,000 | |
Reinsurance payable | 359,500 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Retention under program to provide reinsurance coverage | 780,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Heritage P&C [Member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Retention under program to provide reinsurance coverage | 1,300,000 | |
First event retention for insurance company subsidiary | 40,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Zephyr [Member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
First event retention for insurance company subsidiary | 40,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Osprey and zephyr [member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
First event retention for insurance company subsidiary | 30,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Osprey and NBIC [member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
First event retention for insurance company subsidiary | 30,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | Osprey [Member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
First event retention for insurance company subsidiary | 35,000 | |
First Catastrophe [Member] | 2022-2023 Reinsurance Program [Member] | NBIC [Member] | Maximum [Member] | ||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Retention under program to provide reinsurance coverage | 1,200,000 | |
First event retention for insurance company subsidiary | $ 30,000 |
Reinsurance - 2022-2023 Reins_2
Reinsurance - 2022-2023 Reinsurance Program - Gross Quota and Net Quota Share Reinsurance - Additional information - (Detail) - NBIC [Member] - 2022-2023 net quota share reinsurance [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||
Net Quota Share Occurrence Limit | $ 20 | |
Percentage of renewed ceded net premium and losses | 50% | 5% |
Reinsurance - 2021-2022 Reinsur
Reinsurance - 2021-2022 Reinsurance Program - Aggregate Coverage - Additional information - (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) Reinsurer | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Number of reinstatements available | Reinsurer | 2 |
50% Aggregate Coverage [Member] | NBIC [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Aggregate contract expiration date | Mar. 31, 2022 |
Aggregate contract coverage limit | $ 20 |
Excess retention amount reinsured | 21 |
Occurrence cap amount | 21 |
Franchise deductible amount | $ 1 |
100.00% Aggregate Coverage [Member] | NBIC [Member] | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |
Aggregate contract expiration date | Dec. 31, 2022 |
Aggregate contract coverage limit | $ 20 |
Excess retention amount reinsured | $ 20 |
Number of reinstatements available | Reinsurer | 1 |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) Reinsurer Layer | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Unpaid losses and loss adjustment expenses | $ 1,209,352,000 | $ 553,909,000 | $ 590,166,000 | $ 636,146,000 | $ 625,979,000 | $ 659,341,000 |
Reinsurance payable | $ 278,298,000 | $ 191,728,000 | ||||
Number of reinstatements available | Reinsurer | 2 | |||||
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 | |||||
Causality Losses [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 | |||||
Property liability and casualty insurance segment member | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Coverage limit | 9,000,000 | |||||
Reinsurance payable | 27,000,000 | |||||
Insurance Claims Member | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | |||||
NBIC [Member] | Commercial Residential Losses [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Number of reinstatements available | Reinsurer | 2 | |||||
NBIC [Member] | Property liability and casualty insurance segment member | Commercial Residential Losses [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Coverage limit | $ 250,000 | |||||
Reinsurance payable | 750,000 | |||||
NBIC [Member] | Insurance Claims Member | Commercial Residential Losses [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Unpaid losses and loss adjustment expenses | 750,000 | |||||
Minimum [Member] | NBIC [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Reinsurance payable | 3,500,000 | |||||
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 | |||||
General Excess of Loss 2022-2023 Reinsurance Program [Member] | NBIC [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 | |||||
General Excess of Loss 2022-2023 Reinsurance Program [Member] | NBIC [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 | |||||
General Excess of Loss 2022-2023 Reinsurance Program [Member] | NBIC [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 | |||||
General Excess of Loss 2022-2023 Reinsurance Program [Member] | NBIC [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 | |||||
Catastrophe [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Reinsurance premium, amortization period | 12 months | |||||
Quota Share [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Reinsurance premium, amortization period | 12 months |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Premiums Written | ||||
Premiums Written, Direct | $ 304,501 | $ 274,178 | $ 952,981 | $ 886,059 |
Premiums Written, Ceded | (60,885) | (53,505) | (536,139) | (491,677) |
Premiums Written, Net | 243,616 | 220,673 | 416,842 | 394,382 |
Premiums Earned | ||||
Premiums Earned, Direct | 307,959 | 294,409 | 891,539 | 850,466 |
Premiums Earned, Ceded | (148,266) | (131,964) | (420,645) | (399,323) |
Net premiums earned | 159,693 | 162,445 | 470,894 | 451,143 |
Losses and Loss Adjustment Expenses | ||||
Direct losses and loss adjustment expense | 809,993 | 195,099 | 1,147,243 | 483,382 |
Losses and Loss Adjustment Expenses, Ceded | (654,144) | (65,467) | (749,834) | (155,006) |
Losses and Loss Adjustment Expenses, Net | $ 155,849 | $ 129,632 | $ 397,409 | $ 328,376 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Insurance [Abstract] | ||||
Balance, beginning of period | $ 553,909 | $ 625,979 | $ 590,166 | $ 659,341 |
Less: reinsurance recoverable on unpaid losses | 235,239 | 366,879 | 301,757 | 397,688 |
Net balance, beginning of period | 318,670 | 259,100 | 288,409 | 261,653 |
Incurred related to: | ||||
Current year | 156,855 | 130,425 | 395,921 | 331,374 |
Prior years | (1,006) | (793) | 1,489 | (2,998) |
Total incurred | 155,849 | 129,632 | 397,410 | 328,376 |
Paid related to: | ||||
Current year | 70,914 | 75,508 | 170,255 | 171,128 |
Prior years | 24,088 | 27,273 | 136,047 | 132,950 |
Total paid | 95,002 | 102,781 | 306,302 | 304,078 |
Net balance, end of period | 379,517 | 285,951 | 379,517 | 285,951 |
Plus: reinsurance recoverable on unpaid losses | 829,835 | 350,195 | 829,835 | 350,195 |
Balance, end of period | $ 1,209,352 | $ 636,146 | $ 1,209,352 | $ 636,146 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Unpaid losses and loss adjustment expenses | $ 379,517 | $ 318,670 | $ 288,409 | $ 285,951 | $ 259,100 | $ 261,653 |
Short-Duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 266,800 | |||||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 70.34% | |||||
Hurricane Lan [Member] | ||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||
Gross catastrophe losses | $ 655,400 | |||||
Net retained losses | $ 40,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Nov. 07, 2022 | Aug. 01, 2022 | Oct. 31, 2017 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jul. 29, 2022 | Jan. 31, 2022 | Dec. 31, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||||||||||
Long-term debt, net | $ 121,283,000 | $ 120,757,000 | ||||||||
Debt Instrument, annual principal payment | $ 10,900,000 | |||||||||
Debt instrument, periodic payment, interest | 320,041 | |||||||||
Repurchase of convertible notes | $ 22,529,000 | $ 0 | ||||||||
Credit agreement amendment description | as of March 31, 2022 and for future fiscal quarters, the Company’s consolidated tangible net worth, which is gross of accumulated other comprehensive income, as of the end of a fiscal quarter may not be less than the sum of (1) $162,333,750, plus (2) 25% of the sum of the positive consolidated net income of the Company and its subsidiaries with respect to each full fiscal quarter, plus (3) 100% of the net cash proceeds of certain equity issuance transactions of the Company and its subsidiaries. All other material terms of the Credit Agreement remained unchanged. | |||||||||
Payout dividends, aggregate amount | $ 4,771,000 | 5,029,000 | ||||||||
Interest rate terms | borrowings under the Credit Facilities bear interest at rates equal to either (1) a rate determined by reference to SOFR, plus an applicable margin and a credit adjustment spread equal to 0.10% or (2) a base rate determined by reference to the highest of (a) the “prime rate” of Regions Bank, (b) the federal funds rate plus 0.50%, and (c) the adjusted term SOFR in effect on such day for an interest period of one month plus 1.00%, plus an applicable margin. | |||||||||
Unamortized issuance and debt discount costs | $ 242,700 | |||||||||
Federal Home Loan Bank Of Atlanta [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | $ 450,500 | |||||||||
FHLB advance Interest rate | 3.094% | |||||||||
Cash loan received under advance from FHLB | $ 19,200,000 | |||||||||
Required fair value of reinvestment in FHLB common stock. | 1,200,000 | $ 1,400,000 | ||||||||
Estimated fair value of collateral with FHLB | 26,400,000 | |||||||||
Federal Home Loan Bank Des Moines [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | $ 319,100 | |||||||||
Federal Home Loan Bank Boston [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | $ 215,900 | |||||||||
Term Loan Facility [Member] | Seventh Amendment [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amortization of financing costs percentage | 10% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase of convertible notes | 10,900,000 | |||||||||
Outstanding borrowing capacity amount | $ 10,000,000 | |||||||||
Convertible Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 136,800,000 | |||||||||
Interest rate | 5.875% | |||||||||
Notes maturity date | Aug. 01, 2037 | |||||||||
Interest payments term | Interest is payable semi-annually in arrears, on February 1, and August 1 of each year. | |||||||||
Long-term debt, net | $ 885,000 | |||||||||
Interest paid | $ 1,000,000 | 1,300,000 | ||||||||
Loan or advance maturity date | Aug. 01, 2037 | |||||||||
Convertible Senior Notes [Member] | Subsidiaries Member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase of convertible notes | $ 21,100,000 | |||||||||
Convertible Debt [Member] | Parent company member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase of convertible notes | $ 11,700,000 | |||||||||
Senior Secured Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes maturity period | 5 years | |||||||||
Maximum borrowing capacity | $ 150,000,000 | |||||||||
Debt instrument, covenant description | The Credit Agreement contains, among other things, covenants, representations and warranties and events of default customary for facilities of this type. The Company is required to maintain, as of each fiscal quarter (1) a maximum consolidated leverage ratio of 2.50 to 1.00, stepping down to 2.25 to 1.00 as of the second quarter of 2024 and 2.00 to 1.00 as of the second quarter of 2025, (2) a minimum consolidated fixed charge coverage ratio of 1.20 to 1.00 and (3) a minimum consolidated net worth for the Company and its subsidiaries, which is required to be not less than $100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash proceeds of any equity transactions. Events of default include, among other events, (i) nonpayment of principal, interest, fees or other amounts; (ii) failure to perform or observe certain covenants set forth in the Credit Agreement; (iii) breach of any representation or warranty; (iv) cross-default to other indebtedness; (v) bankruptcy and insolvency defaults; (vi) monetary judgment defaults and material nonmonetary judgment defaults; (vii) customary ERISA defaults; (viii) a change of control of the Company; and (ix) failure to maintain specified catastrophe retentions in each of the Company’s regulated insurance subsidiaries. | |||||||||
Senior Secured Credit Facility [Member] | Credit Agreement Fifth Amendment [Member] | Maximum [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement loans margin percentage | 3% | |||||||||
Senior Secured Credit Facility [Member] | Credit Agreement Fifth Amendment [Member] | Minimum [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement loans margin percentage | 2.50% | |||||||||
Senior Secured Credit Facility [Member] | Seventh Amendment [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||||||
Senior Secured Credit Facility [Member] | Seventh Amendment [Member] | Maximum [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement loans margin percentage | 3.25% | |||||||||
Senior Secured Credit Facility [Member] | Seventh Amendment [Member] | Minimum [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement loans margin percentage | 2.75% | |||||||||
Senior Secured Credit Facility [Member] | Seventh Amendment [Member] | Federal funds effective swap rate member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||
Senior Secured Credit Facility [Member] | Seventh Amendment [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | $ 1,700,000 | 1,500,000 | ||||||||
Term loan, Quarterly principal payments | $ 2,600,000 | |||||||||
Effective interest rate | 5.88% | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 66,500,000 | |||||||||
Notes maturity date | Jul. 28, 2026 | |||||||||
Notes maturity period | 5 years | |||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||||
Loan or advance maturity date | Jul. 28, 2026 | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Seventh Amendment [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 73,900,000 | |||||||||
Maximum borrowing capacity | 25,000,000 | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Term Loan Payable Prior to July 29, 2021 [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | $ 1,900,000 | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Term Loan Payable in December 2021 [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | 875,000 | |||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Term Loan Payable After December 2021 [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | $ 2,400,000 | |||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 5.69% | |||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 75,000,000 | |||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes maturity period | 5 years | |||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||
Outstanding borrowing capacity amount | 25,000,000 | |||||||||
Letters of credit outstanding amount | 22,600,000 | |||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Seventh Amendment [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 50,000,000 | |||||||||
Senior Secured Credit Facility [Member] | Swingline Loan [Member] | Seventh Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||||
Senior Secured Credit Facility [Member] | Line of Credit [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum potential increase on credit facility | 50,000,000 | |||||||||
Senior Secured Credit Facility [Member] | Line of Credit [Member] | Seventh Amendment [Member] | Scenario Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum potential increase on credit facility | $ 25,000,000 | |||||||||
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 | |||||||||
Loan or advance maturity date | Oct. 30, 2027 | |||||||||
Payment of principal and interest | $ 670,000 | |||||||||
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% | |||||||||
Five Point Eight Seven Five Percent Convertible Senior Notes Due Two Thousand Thirty Seven [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 10,895,000 | |||||||||
Long-term debt, net | $ 11,800,000 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long Term Debt and Credit Facilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal amount | $ 122,866 | $ 123,259 |
Deferred finance costs | 1,583 | 2,502 |
Total long-term debt | 121,283 | 120,757 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 25,000 | 0 |
Credit loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 66,500 | 69,125 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 885 | 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 | $ 11,281 | $ 11,521 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2022 remaining | $ 957 | |
2023 | 23,039 | |
2024 | 4,292 | |
2025 | 5,624 | |
2026 | 78,331 | |
Thereafter | 10,623 | |
Total | $ 122,866 | $ 123,259 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred reinsurance ceding commission | $ 40,089 | $ 40,406 |
Accounts payable and other payables | 11,057 | 10,086 |
Accrued interest and issuance costs | 575 | 735 |
Accrued dividends | 72 | 1,634 |
Premium tax | 1,523 | 871 |
Other liabilities | 30 | 195 |
Commission payables | 15,871 | 17,598 |
Total other liabilities | $ 69,217 | $ 71,525 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
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% | |
Zephyr [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Deposits held | $ 750,000 | |
NBIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 3,000,000 | |
Heritage P&C, Zephyr, NBIC and PIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 261,400,000 | $ 302,100,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Comegys Insurance Agency, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Agency commission | $ 53,735 | $ 53,900 | $ 549,988 | $ 595,700 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Contribution for participating employees | $ 276,090 | $ 293,000 | $ 1,000 | $ 985,000 | |
Defined Contribution Plan, Plan Name | 401(k) | ||||
Medical premium cost | $ 3,400 | $ 2,600 | |||
Additional liability for unpaid claims | $ 0 | $ 0 | $ 1,400 | ||
Maximum [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Percentage of contribution on employee salary | 4% | ||||
First 3% of Employees [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Percentage of contribution on employee salary | 100% | ||||
Next 2% of the Employees [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Percentage of contribution on employee salary | 50% |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Aug. 03, 2022 | May 05, 2022 | Mar. 04, 2022 | Dec. 19, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | ||||||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||||||
Common stock, shares outstanding | 25,898,930 | 25,898,930 | 26,753,511 | |||||||||
Treasury stock, shares | 11,890,599 | 11,890,599 | 10,536,737 | |||||||||
Unvested restricted common stock issued | 715,454 | 715,454 | 283,092 | |||||||||
Additional paid-in capital | $ 334,246 | $ 334,246 | $ 332,797 | |||||||||
Common stock voting rights | one vote | |||||||||||
Stock repurchase program, authorized amount | $ 1,700 | 18,300 | $ 18,300 | |||||||||
Stock repurchase program, expiration date | Dec. 31, 2021 | Dec. 31, 2022 | ||||||||||
Treasury shares repurchased, shares | 1,353,862 | |||||||||||
Treasury shares repurchased, value | $ 1,729 | $ 5,000 | $ 1,005 | $ 6,700 | ||||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | ||||||||||
Cash dividend, payable date | Jul. 05, 2022 | Apr. 06, 2022 | ||||||||||
Dividend payable, record date | Jun. 14, 2022 | Mar. 17, 2022 | ||||||||||
Dividends Payable Date Declared Day Month And Year | May 05, 2022 | Aug. 03, 2022 | ||||||||||
Common stock, dividends, per share, declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||||
New Share Repurchase Plan [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 25,000 | |||||||||||
Restricted Stock [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Unvested restricted common stock issued | 715,454 | 715,454 | 283,092 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jan. 01, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | May 22, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 386,603 | 386,603 | ||||||
Stock-based compensation expense | $ 499,000,000 | $ 320,000,000 | $ 1,500 | $ 867,000,000 | ||||
Shares withheld to cover withholding taxes | 9,849 | |||||||
Unrecognized expense related to non-vested stock | $ 2,100 | $ 2,100 | ||||||
Annual cash fee for non-employee directors | $ 125,000,000 | |||||||
Additional annual cash fee for each committee members | $ 2,500,000 | |||||||
Additional annual cash fee for each chair of committee | 5,000,000 | |||||||
Additional annual cash fee for each non employee director chair of committee | 20,000,000 | |||||||
Value of number of shares of restricted stocks granted to non employee director | $ 40,000,000 | |||||||
Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Restricted stock vested and released | 51,768 | 40,267 | ||||||
Shares withheld to cover withholding taxes | 18,973 | |||||||
Shares withheld to cover withholding taxes, value | $ 58,000,000 | $ 171,000,000 | ||||||
Restricted Stock [Member] | Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted Stock [Member] | Minimum [Member] | Employee [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 2 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 | |||||||
Performance-Based Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized expense related to non-vested stock | 1,400 | $ 1,400 | ||||||
Time-Based Unvested Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized expense related to non-vested stock | $ 1,200 | $ 1,200 | ||||||
Omnibus Incentive Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock reserved for issuance | 2,981,737 | |||||||
Omnibus Incentive Plan [Member] | Performance Shares [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unvested restricted shares issued | 10,909 | |||||||
Grant date fair value per share | $ 5.50 | |||||||
Omnibus Incentive Plan [Member] | Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unvested restricted shares issued | 21,768 | 99,376 | ||||||
Grant date fair value per share | $ 5.88 | $ 3.22 | ||||||
Omnibus Incentive Plan [Member] | Time-Based Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unvested restricted shares issued | 115,327 | |||||||
Grant date fair value per share | $ 6.72 | |||||||
Omnibus Incentive Plan [Member] | Time-Based Restricted Stock [Member] | Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Omnibus Incentive Plan [Member] | Time-Based Restricted Stock [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Omnibus Incentive Plan [Member] | Performance-Based Restricted Stock [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unvested restricted shares issued | 245,536 | |||||||
Grant date fair value per share | $ 6.72 | |||||||
Omnibus Incentive Plan [Member] | Time Based Shares [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unvested restricted shares issued | 3,636 | |||||||
Grant date fair value per share | $ 5.50 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning balance, Number of shares | 283,092 |
Ending balance, Number of shares | 715,454 |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning balance, Number of shares | 283,092 |
Vested, Number of shares | (41,919) |
Canceled and surrendered, Number of shares | (22,271) |
Ending balance, Number of shares | 715,454 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 9.32 |
Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 4.81 |
Canceled and surrendered, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 4.40 |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 7.40 |
Restricted Stock [Member] | Performance-Based Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted, Number of shares | 256,445 |
Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 6.67 |
Restricted Stock [Member] | Time-Based Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted, Number of shares | 240,107 |
Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 5.18 |
Stock-Based Compensation - Ad_2
Stock-Based Compensation - Additional Information Regarding Outstanding Non-vested Time-based Restricted Stock and Performance-based Restricted Stock (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested restricted common stock issued | 715,454 | 283,092 |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested restricted common stock issued | 715,454 | 283,092 |
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 | 25,000 | |
Share Value at Grant Date Per Share | $ 16.35 | |
Remaining Restriction Period (Years) | 9 months | |
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 | 127,837 | |
Share Value at Grant Date Per Share | $ 10.43 | |
Remaining Restriction Period (Years) | 2 years | |
Restricted Stock [Member] | September 21, 2020 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Grant date | Sep. 21, 2020 | |
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] | January 4, 2021 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Grant date | Jan. 04, 2021 | |
Unvested restricted common stock issued | 62,906 | |
Share Value at Grant Date Per Share | $ 6.89 | |
Remaining Restriction Period (Years) | 2 years | |
Restricted Stock [Member] | March 3, 2022 member | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Grant date | Mar. 03, 2022 | |
Unvested restricted common stock issued | 14,545 | |
Share Value at Grant Date Per Share | $ 5.50 | |
Remaining Restriction Period (Years) | 2 years 10 months 17 days | |
Restricted Stock [Member] | March 16, 2022 member | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Grant date | Mar. 16, 2022 | |
Unvested restricted common stock issued | 360,863 | |
Share Value at Grant Date Per Share | $ 6.72 | |
Remaining Restriction Period (Years) | 2 years 10 months 17 days | |
Restricted Stock [Member] | June 23, 2022 [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Grant date | Jun. 23, 2022 | |
Unvested restricted common stock issued | 86,954 | |
Share Value at Grant Date Per Share | $ 3.22 | |
Remaining Restriction Period (Years) | 1 year |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Nov. 04, 2022 | Jun. 30, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | |||||||
Credit Agreement Amendment Description | as of March 31, 2022 and for future fiscal quarters, the Company’s consolidated tangible net worth, which is gross of accumulated other comprehensive income, as of the end of a fiscal quarter may not be less than the sum of (1) $162,333,750, plus (2) 25% of the sum of the positive consolidated net income of the Company and its subsidiaries with respect to each full fiscal quarter, plus (3) 100% of the net cash proceeds of certain equity issuance transactions of the Company and its subsidiaries. All other material terms of the Credit Agreement remained unchanged. | ||||||
Dividends paid to shareholders | $ 4,771 | $ 5,029 | |||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Consolidated Leverage Ratio | 2% | 2.25% | 2.50% | ||||
Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit Agreement Amendment Description | Consolidated Tangible Net Worth (as defined in the Credit Agreement) which is required to be not less than $100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash proceeds of any equity transactions and (ii) Consolidated Fixed Charge Ratio (as defined in the Credit Agreement) which is required to be 1.20x | ||||||
Consolidated Leverage Ratio | 1.20% | ||||||
Dividends paid to shareholders | $ 10,000 | $ 2,000 | |||||
Due from Related Parties | 38,000 | ||||||
Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Term Loan [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Amortization of financing costs percentage | 10% | ||||||
Line of Credit [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum potential increase on credit facility | $ 50,000 | ||||||
Line Of Credit Facility Maximum Potential Increase | 50,000 | ||||||
Line of Credit [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum potential increase on credit facility | 25,000 | ||||||
Line Of Credit Facility Maximum Potential Increase | $ 25,000 | ||||||
Senior Secured Credit Facility [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000 | ||||||
Debt instrument, covenant description | The Credit Agreement contains, among other things, covenants, representations and warranties and events of default customary for facilities of this type. The Company is required to maintain, as of each fiscal quarter (1) a maximum consolidated leverage ratio of 2.50 to 1.00, stepping down to 2.25 to 1.00 as of the second quarter of 2024 and 2.00 to 1.00 as of the second quarter of 2025, (2) a minimum consolidated fixed charge coverage ratio of 1.20 to 1.00 and (3) a minimum consolidated net worth for the Company and its subsidiaries, which is required to be not less than $100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash proceeds of any equity transactions. Events of default include, among other events, (i) nonpayment of principal, interest, fees or other amounts; (ii) failure to perform or observe certain covenants set forth in the Credit Agreement; (iii) breach of any representation or warranty; (iv) cross-default to other indebtedness; (v) bankruptcy and insolvency defaults; (vi) monetary judgment defaults and material nonmonetary judgment defaults; (vii) customary ERISA defaults; (viii) a change of control of the Company; and (ix) failure to maintain specified catastrophe retentions in each of the Company’s regulated insurance subsidiaries. | ||||||
Senior Secured Credit Facility [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, covenant description | The Seventh Amendment also modifies certain financial covenants in the Credit Agreement which may limit the Company’s flexibility in connection with future financing transactions and in the allocation of capital in the future. Specifically, starting in the first quarter of 2023, the Seventh Amendment amends certain financial covenants as follows: (1) require additional leverage ratios under the Consolidated Leverage Ratio covenant (as defined in the Credit Agreement) after the initial step down to 2.50x in the second quarter of 2023 not to exceed 2.25x as of the second quarter of 2024 and 2.00x as of the second quarter of 2025, (2) apply all (A) Restricted Payments (as defined in the Credit Agreement) and (B) fee forgiveness & other capital contributions to the Company’s regulated insurance companies that are not a party to the Credit Agreement (“Non-credit Parties”) that exceed $38 million, when calculating (i) Consolidated Tangible Net Worth (as defined in the Credit Agreement) which is required to be not less than $100 million plus 50% of positive quarterly net income (including its subsidiaries and regulated subsidiaries) plus the net cash proceeds of any equity transactions and (ii) Consolidated Fixed Charge Ratio (as defined in the Credit Agreement) which is required to be 1.20x. The Seventh Amendment also (A) eliminates the current $10 million basket available to the Company to pay dividends to its shareholders or to repurchase its securities, (B) provides for a dividend of up to $2.0 million in the fourth quarter of 2024 under certain conditions and (C) restricts future dividends based on maintenance of certain financial ratios, including Consolidated Tangible Net Worth. As a result, going forward, dividends and stock repurchases may be limited or restricted entirely and the Company’s ability to contribute capital to its insurance subsidiaries that are not parties to the Credit Agreement may be limited. | ||||||
Senior Secured Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit agreement range percentage description | increase the applicable margin for loans under the Credit Agreement to a range from 2.75% to 3.25% per annum for SOFR loans (plus a 0.10% credit adjustment spread) and based on a leverage ratio (an increase from the prior range of 2.50% to 3.00%). | ||||||
Leverage ratio description | require additional leverage ratios under the Consolidated Leverage Ratio covenant (as defined in the Credit Agreement) after the initial step down to 2.50x in the second quarter of 2023 not to exceed 2.25x as of the second quarter of 2024 and 2.00x as of the second quarter of 2025 | ||||||
Debt instrument, basis spread on variable rate | 0.10% | ||||||
Senior Secured Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Base rate increase percentage | 3% | ||||||
Senior Secured Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Base rate increase percentage | 2.50% | ||||||
Senior Secured Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | SOFR [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit agreement loans margin percentage | 3.25% | ||||||
Senior Secured Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | SOFR [Member] | Subsequent Event [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit agreement loans margin percentage | 2.75% | ||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 75,000 | ||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000 | ||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | 50,000 | ||||||
Senior Secured Credit Facility [Member] | Term Loan [Member] | Credit Agreement Seventh Amendment [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Senior Secured Credit Facility [Member] | Term Loan [Member] | Credit Agreement Seventh Amendment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000 |