Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36462 | |
Entity Registrant Name | Heritage Insurance Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-5338504 | |
Entity Address, Address Line One | 1401 N. Westshore Blvd | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33607 | |
City Area Code | 727 | |
Local Phone Number | 362-7200 | |
Title of each class | Common Stock, par value $0.0001 per share | |
Trading Symbol(s) | HRTG | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,684,198 | |
Entity Central Index Key | 0001598665 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $744,173 and $606,646) | $ 698,853 | $ 560,682 |
Equity securities, at fair value, (cost $1,936 and $1,666) | 1,936 | 1,666 |
Other investments, net | 6,790 | 7,067 |
Total investments | 707,579 | 569,415 |
Cash and cash equivalents | 480,930 | 463,640 |
Restricted cash | 10,956 | 9,699 |
Accrued investment income | 5,148 | 4,068 |
Premiums receivable, net | 100,832 | 89,490 |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 536,888 | 482,429 |
Prepaid reinsurance premiums | 505,180 | 294,222 |
Income tax receivable | 12,066 | 13,354 |
Deferred income tax asset, net | 12,694 | 11,111 |
Deferred policy acquisition costs, net | 114,818 | 102,884 |
Property and equipment, net | 34,510 | 33,218 |
Right of use assets | 16,337 | 17,606 |
Right of use assets | 6,357 | 6,835 |
Intangibles, net | 39,464 | 42,555 |
Other assets | 15,590 | 12,674 |
Total Assets | 2,599,349 | 2,153,200 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 822,271 | 845,955 |
Unearned premiums | 765,632 | 675,921 |
Reinsurance payable | 504,291 | 159,823 |
Long-term debt, net | 120,780 | 119,732 |
Advance premiums | 26,262 | 23,900 |
Accrued compensation | 6,278 | 9,461 |
Lease liability, finance | 19,250 | 20,386 |
Lease liability, operating | 7,528 | 8,076 |
Accounts payable and other liabilities | 71,724 | 69,666 |
Total Liabilities | 2,344,016 | 1,932,920 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 42,915,872 shares issued and 30,684,198 outstanding at June 30, 2024 and 42,450,612 shares issued and 30,218,938 outstanding at December 31, 2023 | 3 | 3 |
Additional paid-in capital | 361,789 | 360,310 |
Accumulated other comprehensive loss, net of taxes | (34,770) | (35,250) |
Treasury stock, at cost, 12,231,674 shares at each June 30, 2024 and December 31, 2023 | (130,900) | (130,900) |
Retained earnings | 59,211 | 26,117 |
Total Stockholders' Equity | 255,333 | 220,280 |
Total Liabilities and Stockholders' Equity | $ 2,599,349 | $ 2,153,200 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Cost or Adjusted / Amortized Cost | $ 744,173 | $ 606,646 |
Equity securities, cost | 1,936 | 1,666 |
Reinsurance recoverable net of allowance for credit losses | $ 197 | $ 197 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 42,915,872 | 42,450,612 |
Common stock, shares outstanding (in shares) | 30,684,198 | 30,218,938 |
Treasury stock, shares (in shares) | 12,231,674 | 12,231,674 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
REVENUES: | |||||
Gross premiums written | $ 424,530,000 | $ 396,559,000 | $ 781,214,000 | $ 706,868,000 | |
Change in gross unearned premiums | (74,457,000) | (66,544,000) | (89,752,000) | (59,831,000) | |
Gross premiums earned | 350,073,000 | 330,015,000 | 691,462,000 | 647,037,000 | |
Ceded premiums | (159,757,000) | (153,211,000) | (321,720,000) | (304,204,000) | |
Net premiums earned | 190,316,000 | 176,804,000 | 369,742,000 | 342,833,000 | |
Net investment income | 9,769,000 | 6,599,000 | 18,320,000 | 12,181,000 | |
Net realized gains (losses) and impairment | 12,000 | (1,568,000) | 11,000 | 330,000 | |
Other revenue | 3,474,000 | 3,478,000 | 6,800,000 | 6,890,000 | |
Total revenues | 203,571,000 | 185,313,000 | 394,873,000 | 362,234,000 | |
EXPENSES: | |||||
Losses and loss adjustment expenses | 105,928,000 | 106,646,000 | 207,963,000 | 204,098,000 | |
Policy acquisition costs, net of ceding commission income | [1] | 47,224,000 | 41,451,000 | 94,153,000 | 81,776,000 |
General and administrative expenses, net of ceding commission income | [2] | 22,780,000 | 20,058,000 | 42,414,000 | 39,111,000 |
Intangible asset impairment | 0 | 766,600 | 0 | 766,600 | |
Total expenses | 175,932,000 | 168,922,000 | 344,530,000 | 325,752,000 | |
Operating income | 27,639,000 | 16,391,000 | 50,343,000 | 36,482,000 | |
Interest expense, net | 2,780,000 | 2,740,000 | 5,610,000 | 5,621,000 | |
Income before income taxes | 24,859,000 | 13,651,000 | 44,733,000 | 30,861,000 | |
Provision for income taxes | 5,990,000 | 5,872,000 | 11,639,000 | 9,074,000 | |
Net income | 18,869,000 | 7,779,000 | 33,094,000 | 21,787,000 | |
OTHER COMPREHENSIVE INCOME | |||||
Change in net unrealized gains (losses) on investments | 924,000 | (2,986,000) | 641,000 | 9,158,000 | |
Reclassification adjustment for net realized investment (gains) losses | (12,000) | 9,000 | (11,000) | 11,000 | |
Income tax (expense) benefit related to items of other comprehensive income | (216,000) | 698,000 | (150,000) | (2,158,000) | |
Total comprehensive income | $ 19,565,000 | $ 5,500,000 | $ 33,574,000 | $ 28,798,000 | |
Weighted average shares outstanding | |||||
Basic | 30,649,732 | 25,567,157 | 30,513,207 | 25,562,731 | |
Diluted | 30,708,995 | 25,626,420 | 30,572,470 | 25,621,994 | |
Earnings per share | |||||
Basic | $ 0.62 | $ 0.30 | $ 1.08 | $ 0.85 | |
Diluted | $ 0.61 | $ 0.30 | $ 1.08 | $ 0.85 | |
[1] Policy acquisition costs includes $9.4 million and $18.7 million of ceding commission income for the three and six months ended June 30, 2024 and $12.8 million and $25.3 million of ceding commission income for the three and six months ended June 30, 2023, respectively. General and administration includes $3.1 million and $6.1 million of ceding commission income for the three and six months ended June 30, 2024 and $4.1 million and $8.3 million of ceding commission income for the three and six months ended June 30, 2023, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Other Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Ceding commission income | $ 12,484 | $ 16,586 | $ 24,864 | $ 33,676 |
Policy Acquisition Costs | ||||
Ceding commission income | 9,400 | 12,800 | 18,700 | 25,300 |
General and Administrative Expenses | ||||
Ceding commission income | $ 3,100 | $ 4,100 | $ 6,100 | $ 8,300 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2022 | 25,539,433 | |||||
Beginning balance at Dec. 31, 2022 | $ 131,039 | $ 3 | $ 334,711 | $ (19,190) | $ (130,900) | $ (53,585) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net unrealized change in investments, net of tax | 9,290 | 9,290 | ||||
Shares tendered for income taxes withholding (in shares) | (4,200) | |||||
Shares tendered for income taxes withholding | (8) | (8) | ||||
Restricted stock vested (in shares) | 25,000 | |||||
Forfeiture on restricted stock (in shares) | (1,482) | |||||
Stock-based compensation on restricted stock | 395 | 395 | ||||
Net income | 14,008 | 14,008 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 25,558,751 | |||||
Ending balance at Mar. 31, 2023 | 154,724 | $ 3 | 335,098 | (5,182) | (130,900) | (44,295) |
Beginning balance (in shares) at Dec. 31, 2022 | 25,539,433 | |||||
Beginning balance at Dec. 31, 2022 | 131,039 | $ 3 | 334,711 | (19,190) | (130,900) | (53,585) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,787 | |||||
Ending balance (in shares) at Jun. 30, 2023 | 25,622,495 | |||||
Ending balance at Jun. 30, 2023 | 160,627 | $ 3 | 335,501 | 2,597 | (130,900) | (46,574) |
Beginning balance (in shares) at Mar. 31, 2023 | 25,558,751 | |||||
Beginning balance at Mar. 31, 2023 | 154,724 | $ 3 | 335,098 | (5,182) | (130,900) | (44,295) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net unrealized change in investments, net of tax | (2,279) | (2,279) | ||||
Issued restricted stock (in shares) | 63,744 | |||||
Stock-based compensation on restricted stock | 403 | 403 | ||||
Net income | 7,779 | 7,779 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 25,622,495 | |||||
Ending balance at Jun. 30, 2023 | 160,627 | $ 3 | 335,501 | 2,597 | (130,900) | (46,574) |
Beginning balance (in shares) at Dec. 31, 2023 | 30,218,938 | |||||
Beginning balance at Dec. 31, 2023 | 220,280 | $ 3 | 360,310 | 26,117 | (130,900) | (35,250) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net unrealized change in investments, net of tax | (216) | (216) | ||||
Issued restricted stock (in shares) | 417,558 | |||||
Additional costs associated to public offering | (3) | (3) | ||||
Unallocated dividends on restricted stock forfeitures | 54 | 54 | ||||
Stock-based compensation on restricted stock | 595 | 595 | ||||
Net income | 14,225 | 14,225 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 30,636,496 | |||||
Ending balance at Mar. 31, 2024 | 234,935 | $ 3 | 360,956 | 40,342 | (130,900) | (35,466) |
Beginning balance (in shares) at Dec. 31, 2023 | 30,218,938 | |||||
Beginning balance at Dec. 31, 2023 | 220,280 | $ 3 | 360,310 | 26,117 | (130,900) | (35,250) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,094 | |||||
Ending balance (in shares) at Jun. 30, 2024 | 30,684,198 | |||||
Ending balance at Jun. 30, 2024 | 255,333 | $ 3 | 361,789 | 59,211 | (130,900) | (34,770) |
Beginning balance (in shares) at Mar. 31, 2024 | 30,636,496 | |||||
Beginning balance at Mar. 31, 2024 | 234,935 | $ 3 | 360,956 | 40,342 | (130,900) | (35,466) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net unrealized change in investments, net of tax | 696 | 696 | ||||
Issued restricted stock (in shares) | 47,702 | |||||
Stock-based compensation on restricted stock | 833 | 833 | ||||
Net income | 18,869 | 18,869 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 30,684,198 | |||||
Ending balance at Jun. 30, 2024 | $ 255,333 | $ 3 | $ 361,789 | $ 59,211 | $ (130,900) | $ (34,770) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING ACTIVITIES | ||
Net income | $ 33,094 | $ 21,787 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 1,428 | 798 |
Bond amortization and accretion | (1,552) | (1,261) |
Amortization of original issuance discount on debt | 428 | 235 |
Goodwill or intangible asset impairment | 0 | 767 |
Depreciation and amortization | 4,491 | 4,266 |
Allowance for (recovery) bad debt | (703) | 87 |
Expected credit allowance on reinsurance | 0 | 152 |
Net realized gains | (11) | (330) |
Deferred income taxes, net | (1,733) | 3,771 |
Changes in operating assets and liabilities: | ||
Accrued investment income | (1,080) | 245 |
Premiums receivable, net | (10,639) | 6,061 |
Prepaid reinsurance premiums | (210,958) | (202,229) |
Reinsurance recoverable on paid and unpaid claims | (54,459) | 260,911 |
Income taxes receivable | 1,288 | (1,143) |
Deferred policy acquisition costs, net | (11,934) | (7,119) |
Right of use leased asset | 1,747 | 1,228 |
Other assets | (2,916) | (3,513) |
Unpaid losses and loss adjustment expenses | (23,684) | (313,948) |
Unearned premiums | 89,711 | 59,737 |
Reinsurance payable | 344,468 | 187,795 |
Accrued interest | (474) | (122) |
Accrued compensation | (3,183) | 1,535 |
Advance premiums | 2,362 | 12,423 |
Operating lease liabilities | (1,684) | (1,100) |
Other liabilities | 2,531 | (6,914) |
Net cash provided by operating activities | 156,538 | 24,119 |
INVESTING ACTIVITIES | ||
Fixed maturity securities sales, maturities and pay downs | 70,287 | 479,396 |
Fixed maturity securities purchases | (206,264) | (528,466) |
Equity securities reinvestment of dividends | (270) | 0 |
Return on other investments | 277 | 5,062 |
Cost of property and equipment acquired | (2,692) | (6,092) |
Net cash used in investing activities | (138,662) | (50,100) |
FINANCING ACTIVITIES | ||
Repayment of term note | (4,750) | (4,750) |
Mortgage loan payments | (130) | (52) |
Proceeds from loan agreement | 5,500 | 0 |
Additional costs associated with public offering | (3) | 0 |
Tax withholding on share-based compensation awards | 0 | (8) |
Dividends forfeited (paid) | 54 | (11) |
Net cash provided by (used in) financing activities | 671 | (4,821) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 18,547 | (30,802) |
Cash, cash equivalents and restricted cash, beginning of period | 473,339 | 287,572 |
Cash, cash equivalents and restricted cash, end of period | 491,886 | 256,770 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 12,181 | 6,446 |
Interest paid | $ 4,552 | $ 4,757 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 480,930 | $ 463,640 | ||
Restricted cash | 10,956 | 9,699 | ||
Total | $ 491,886 | $ 473,339 | $ 256,770 | $ 287,572 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 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 (“GAAP”) 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, 2023 filed on March 13, 2024 (the “2023 Form 10-K”). Significant accounting policies The accounting policies of the Company are set forth in Note 1 to the consolidated financial statements contained in the Company’s 2023 Form 10-K. Accounting Pronouncements not yet adopted The Company has documented the summary of its significant accounting policies in its Notes to the Audited Consolidated Financial Statements contained in the Company’s 2023 Form 10-K. There have been no material changes to the Company’s accounting policies since the filing of that report. On March 6, 2024, the SEC adopted new rules designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The rules amend the provisions of both Regulation S-K and Regulation S-X to require disclosure of climate-related risks, transition plans, targets and goals, risk management and governance as well as require disclosure of the financial effects of severe weather events and other natural conditions as well as the use of carbon offsets or renewable energy credits. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025, subject to legal challenges and the SEC's voluntary stay of the disclosure requirements. The Company will continue to assess the impact of these new rules on its financial statements while the stay is in place. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 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: June 30, 2024 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 168,760 $ 68 $ 1,178 $ 167,650 States, municipalities and political subdivisions 322,003 93 30,256 291,840 Corporate bonds 227,867 379 11,402 216,844 Mortgage-backed securities (1) 18,646 — 2,881 15,765 Asset-backed securities 2,892 — 143 2,749 Other 4,005 — — 4,005 Total $ 744,173 $ 540 $ 45,860 $ 698,853 (1) Includes securities at June 30, 2024 with a carrying amount of $23.6 million and $8.0 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018 and 2024. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2023 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 81,540 $ 417 $ 1,295 $ 80,662 States, municipalities and political subdivisions 319,896 104 31,018 288,982 Corporate bonds 178,213 475 11,858 166,830 Mortgage-backed securities 22,695 — 2,769 19,926 Asset-backed securities 247 — 20 227 Other 4,055 — — 4,055 Total $ 606,646 $ 996 $ 46,960 $ 560,682 (1) Includes securities at December 31, 2023 with a carrying amount of $24.3 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 Gains (Losses) and Impairment The following tables present net realized gains (losses) on the Company’s debt securities available-for-sale for the three and six months ended June 30, 2024 and 2023, respectively : 2024 2023 Three Months Ended June 30, Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 13 $ 907 $ — $ — Total realized losses (1) 117 (9) 308 Net realized gains (losses) $ 12 $ 1,024 $ (9) $ 308 2024 2023 Six Months Ended June 30, Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 13 $ 2,644 $ — $ — Total realized losses (2) 308 (11) 598 Net realized gains (losses) $ 11 $ 2,952 $ (11) $ 598 The following table presents the reconciliation of net realized (losses) gains and impairment of the Company’s investments reported for the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Gross realized gains on sales of available-for-sale securities $ 13 $ — $ 13 $ — Impairments on other investments — (1,559) — (1,559) Realized losses on sales of available-for-sale securities (1) (9) (2) (11) Gross realized gains on sale of other investments — — — 1,900 Net realized (losses) gains and impairments $ 12 $ (1,568) $ 11 $ 330 The table below summarizes the Company’s debt securities at June 30, 2024 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At June 30, 2024 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 169,107 22.7 % $ 167,795 24.0 % Due after one year through five years 383,997 51.6 % 362,032 51.8 % Due after five years through ten years 163,398 22.0 % 144,765 20.7 % Due after ten years 27,671 3.7 % 24,261 3.5 % Total $ 744,173 100.0 % $ 698,853 100.0 % Net Investment Income The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Debt securities $ 6,502 $ 5,015 $ 11,057 $ 8,038 Equity securities 361 57 657 90 Cash and cash equivalents 3,595 2,246 7,814 4,449 Other investments 173 108 324 839 Net investment income 10,631 7,426 19,852 13,416 Less: Investment expenses 862 827 1,532 1,235 Net investment income, less investment expenses $ 9,769 $ 6,599 $ 18,320 $ 12,181 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 has 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 June 30, 2024 and December 31, 2023, respectively (in thousands): Less Than Twelve Months Twelve Months or More June 30, 2024 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 21 $ 128 $ 101,610 26 $ 1,050 $ 27,065 States, municipalities and political subdivisions 11 39 9,368 372 30,217 265,588 Corporate bonds 34 64 26,901 185 11,338 124,847 Mortgage-backed securities 6 — 3 121 2,881 15,763 Asset-backed securities — — — 35 143 525 Other — — — — — — Total fixed maturity securities 72 $ 231 $ 137,882 739 $ 45,629 $ 433,788 Less Than Twelve Months Twelve Months or More December 31, 2023 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 3 $ 14 $ 2,962 32 $ 1,281 $ 42,305 States, municipalities and political subdivisions 5 21 3,875 382 30,997 274,876 Corporate bonds 10 24 6,398 188 11,834 128,771 Mortgage-backed securities 10 — 7 138 2,769 19,810 Asset-backed securities 0 — — 24 20 373 Other 0 — — 0 — — Total fixed maturity securities 28 $ 59 $ 13,242 764 $ 46,901 $ 466,135 The Company’s unrealized losses on debt securities have not been recognized because the securities are of a high credit quality with investment grade ratings. After reviewing the Company's portfolio, if (i) the Company does not have the intent to sell, or (ii) it is more likely than not it will not be required to sell the security before its anticipated recovery, then the Company's intent is to hold the investment securities to recovery, or maturity if necessary to recover the decline in valuation as prices accrete to par. However, the Company's intent may change prior to maturity due to certain types of events, which include, but are not limited to, changes in the financial markets, the Company's analysis of an issuer’s credit metrics and prospects, changes in tax laws or the regulatory environment, or as a result of significant unforeseen changes in liquidity needs. As such, the Company may, from time to time, sell invested assets subsequent to the balance sheet date that it did not intend to sell at the balance sheet date. Conversely, the Company may not sell invested assets that the Company asserted it intended to sell at the balance sheet date. Such changes in intent are due to unforeseen events occurring subsequent to the balance sheet date. No credit loss allowance was recorded as of June 30, 2024 or for the year ended December 31, 2023. 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 through net realized and unrealized gains and losses. The Company also holds a passive investment in a Real Estate Investment Trust (“REIT”), which is accounted for using the measurement alternative method, and 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 June 30, 2024 and December 31, 2023, respectively (in thousands): As of June 30, 2024 As of December 31, 2023 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investments in non-consolidated VIEs - Equity method $ 1,682 $ 1,682 $ 1,819 $ 1,819 Investments in non-consolidated VIEs - Measurement alternative $ 5,108 $ 5,108 $ 5,248 $ 5,248 Total non-consolidated VIEs $ 6,790 $ 6,790 $ 7,067 $ 7,067 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 | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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. At June 30, 2024 and December 31, 2023, there were no transfers in or out of Level 1, 2, and 3. 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: June 30, 2024 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets (In thousands) Cash and cash equivalents $ 480,930 $ 480,930 $ — $ — Restricted cash $ 10,956 $ 10,956 $ — $ — Debt Securities Available-for-sale U.S. government and agency securities $ 167,650 $ — $ 167,650 $ — States, municipalities and political subdivisions 291,840 — 291,840 — Corporate bonds 216,844 — 216,844 — Mortgage-backed securities 15,765 — 15,765 — Asset-backed securities 2,749 — 2,749 — Other 4,005 — 4,005 — Total debt securities $ 698,853 $ — $ 698,853 $ — Equity Securities Common stock $ 1,936 $ 1,936 $ — $ — Total debt securities and equity securities $ 700,789 $ 1,936 $ 698,853 $ — December 31, 2023 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets (In thousands) Cash and cash equivalents $ 463,640 $ 463,640 $ — Restricted cash $ 9,699 $ 9,699 $ — Debt Securities Available-for-sale U.S. government and agency securities $ 80,662 $ — $ 80,662 $ — States, municipalities and political subdivisions 288,982 — 288,982 — Corporate bonds 166,830 — 166,830 — Mortgage-backed securities 19,926 — 19,926 — Asset-backed securities 227 — 227 — Other 4,055 — 4,055 — Total debt securities $ 560,682 $ — $ 560,682 $ — Equity Securities Common stock $ 1,666 $ 1,666 $ — $ — Total debt securities and equity securities $ 562,348 $ 1,666 $ 560,682 $ — Financial Instruments excluded from the fair value hierarchy The carrying value of premium receivables, 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 Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. For the six months ended June 30, 2024, there were no assets or liabilities that were measured at fair value on a non-recurring basis. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2024 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME The following tables summarize other comprehensive income and disclose the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2024 and 2023, respectively: For the Three Months Ended June 30, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized gains (losses) on investments, net $ 924 $ (219) $ 705 $ (2,986) $ 700 $ (2,286) Reclassification adjustment of realized (gains) losses included in net income (12) 3 (9) 9 (2) 7 Effect on other comprehensive income $ 912 $ (216) $ 696 $ (2,977) $ 698 $ (2,279) For the Six Months Ended June 30, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized gains (losses) on investments, net $ 641 $ (152) $ 489 $ 9,158 $ (2,155) $ 7,003 Reclassification adjustment of realized losses included in net income (11) 2 (9) 11 (3) 8 Effect on other comprehensive income $ 630 $ (150) $ 480 $ 9,169 $ (2,158) $ 7,011 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | 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 two 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 were as follows (in thousands): For The Six Months Ended June 30, 2024 2023 Operating lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 810 $ 787 Finance lease cost: Amortization of assets, included in General & Administrative expenses on the Consolidated Statements of Operations 1,269 1,285 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Operations 407 451 Total finance lease cost $ 1,676 $ 1,736 Variable lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 744 $ 796 Short-term lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 42 $ 80 Supplemental balance sheet information related to the Company’s operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 December 31, 2023 Right of use assets $ 6,357 $ 6,835 Lease liability $ 7,528 $ 8,076 Finance Leases Right of use assets $ 16,337 $ 17,606 Lease liability $ 19,250 $ 20,386 Weighted-average remaining lease term and discount rate for the Company’s operating and financing leases for the periods presented below were as follows: Weighted-average remaining lease term June 30, 2024 December 31, 2023 Operating lease 5.09 yrs. 5.57 yrs. Finance lease 6.67 yrs. 7.16 yrs. Weighted-average discount rate Operating lease 5.44 % 5.17 % Finance lease 4.14 % 4.15 % Maturities of lease liabilities by fiscal year for the Company’s operating and financing leases were as follows (in thousands): Financing Lease Operating Lease 2024 remaining $ 1,565 $ 876 2025 3,173 1,655 2026 3,216 1,636 2027 3,190 1,599 2028 3,270 1,633 2029 and thereafter 7,651 1,213 Total lease payments 22,065 8,612 Less: imputed interest (2,815) (1,084) Present value of lease liabilities $ 19,250 $ 7,528 Supplemental cash flow information related to the Company's operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 June 30, 2023 Lease liability payments $ 1,139 $ 1,141 Finance Leases Lease liability payments $ 414 $ 443 Total lease liability payments $ 1,553 $ 1,584 |
Leases | 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 two 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 were as follows (in thousands): For The Six Months Ended June 30, 2024 2023 Operating lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 810 $ 787 Finance lease cost: Amortization of assets, included in General & Administrative expenses on the Consolidated Statements of Operations 1,269 1,285 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Operations 407 451 Total finance lease cost $ 1,676 $ 1,736 Variable lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 744 $ 796 Short-term lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 42 $ 80 Supplemental balance sheet information related to the Company’s operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 December 31, 2023 Right of use assets $ 6,357 $ 6,835 Lease liability $ 7,528 $ 8,076 Finance Leases Right of use assets $ 16,337 $ 17,606 Lease liability $ 19,250 $ 20,386 Weighted-average remaining lease term and discount rate for the Company’s operating and financing leases for the periods presented below were as follows: Weighted-average remaining lease term June 30, 2024 December 31, 2023 Operating lease 5.09 yrs. 5.57 yrs. Finance lease 6.67 yrs. 7.16 yrs. Weighted-average discount rate Operating lease 5.44 % 5.17 % Finance lease 4.14 % 4.15 % Maturities of lease liabilities by fiscal year for the Company’s operating and financing leases were as follows (in thousands): Financing Lease Operating Lease 2024 remaining $ 1,565 $ 876 2025 3,173 1,655 2026 3,216 1,636 2027 3,190 1,599 2028 3,270 1,633 2029 and thereafter 7,651 1,213 Total lease payments 22,065 8,612 Less: imputed interest (2,815) (1,084) Present value of lease liabilities $ 19,250 $ 7,528 Supplemental cash flow information related to the Company's operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 June 30, 2023 Lease liability payments $ 1,139 $ 1,141 Finance Leases Lease liability payments $ 414 $ 443 Total lease liability payments $ 1,553 $ 1,584 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Land $ 2,582 $ 2,582 Building 9,599 9,599 Software in progress 17,530 14,450 Computer hardware and software 10,312 10,717 Office furniture and equipment 1,484 1,484 Tenant and leasehold improvements 10,893 10,876 Vehicle fleet 515 515 Total, at cost 52,915 50,223 Less: accumulated depreciation and amortization (18,405) (17,005) Property and equipment, net $ 34,510 $ 33,218 The Company has capitalized certain costs related to a new policy, billing and claims system which is anticipated to be placed into service later in 2025. Depreciation and amortization expense for property and equipment was approximately $718,800 and $566,000 for the three months ended June 30, 2024 and 2023, respectively. Depreciation and amortization expense for property and equipment was approximately $1.4 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively. The Company owns real estate consisting of 13 acres of land, two buildings with a gross area of 88,378 square feet and a parking garage. The carrying value of the property is approximately $9.6 million with accumulated depreciation of approximately $2.6 million at June 30, 2024. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS At June 30, 2024 and December 31, 2023, intangible assets, net were $39.5 million and $42.6 million, respectively. The Company has determined the useful life of its 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. Impairment testing is required when events occur that indicate an asset may not be recoverable, such as a triggering event. Management reviews other intangible assets for impairment annually during the fourth quarter, or more frequently should events or changes in circumstances indicate that the Company's other intangible assets might be impaired. The Company’s intangible assets consist of brand, agent relationships, renewal rights, customer relations, trade names and insurance licenses. During the three months ended June 30, 2023, certain brand and customer relations within the Company's restoration provider with a net value of $766,600 were impaired due to the discontinuation of providing restoration services to the Company’s policyholders. The impairment loss of $766,600 was included in intangible asset impairment in the Company's consolidated statements of operations for the three and six months ended June 30, 2023. There was no impairment of the intangible assets with definite lives for the three and six months ended June 30, 2024. Amortization expense of the Company’s intangible assets for the three and six months ended June 30, 2024 was $1.6 million and $3.1 million, respectively and for the three and six months ended June 30, 2023 was $1.6 million and $3.2 million, respectively. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount 2024 - remaining $ 3,092 2025 6,183 2026 6,033 2027 5,836 2028 3,914 Thereafter 13,091 Total $ 38,149 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated (amounts in thousands, except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic and Diluted Net income available to common shareholders — basic and diluted $ 18,869 $ 7,779 $ 33,094 $ 21,787 Common Shares Basic Weighted average shares outstanding 30,649,732 25,567,157 30,513,207 25,562,731 Diluted Weighted average shares outstanding 30,649,732 25,567,157 30,513,207 25,562,731 5.875% Convertible Notes 59,263 59,263 59,263 59,263 Total 30,708,995 25,626,420 30,572,470 25,621,994 Net income per common share Basic $ 0.62 $ 0.30 $ 1.08 $ 0.85 Diluted $ 0.61 $ 0.30 $ 1.08 $ 0.85 |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | 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 June 30, 2024 and 2023, the Company allocated ceding commission income of $9.4 million and $12.8 million, respectively, to policy acquisition costs and $3.1 million and $4.1 million, respectively, to general and administrative expense. For the six months ended June 30, 2024 and 2023, the Company allocated ceding commission income of $18.7 million and $25.3 million, respectively, to policy acquisition costs and $6.1 million and $8.3 million, respectively, to general and administrative expense. The table below depicts the activity regarding deferred reinsurance ceding commission, included in accounts payable and other liabilities during the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Beginning balance of deferred ceding commission income $ 31,549 $ 40,688 $ 33,627 $ 42,757 Ceding commission deferred 14,537 13,888 24,839 28,909 Less: ceding commission earned (12,484) (16,586) (24,864) (33,676) Ending balance of deferred ceding commission income $ 33,602 $ 37,990 $ 33,602 $ 37,990 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | 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 six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Beginning Balance $ 104,217 $ 98,035 $ 102,884 $ 99,617 Policy acquisition costs deferred 56,628 53,929 112,885 107,109 Amortization (46,027) (45,228) (100,951) (99,990) Ending Balance $ 114,818 $ 106,736 $ 114,818 $ 106,736 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three months ended June 30, 2024 and 2023, the Company recorded income tax provisions of $6.0 million and $5.9 million, respectively, which corresponds to effective tax rates of 24.1% and 43.0%, respectively. For the six months ended June 30, 2024 and 2023, the Company recorded income tax provisions of $11.6 million and $9.1 million, respectively, which corresponds to effective tax rates of 26.0% and 29.4%, respectively. The effective tax rate for the three months ended June 30, 2023 was impacted by an increase of $2.5 million in the deferred tax valuation allowance related to Osprey Re related to certain tax elections made by Osprey Re, the Company’s captive reinsurer domiciled in Bermuda. The impact of permanent tax differences on projected results of operations for the calendar year impacts the effective tax rate, which can also fluctuate throughout the year as estimates used in the quarterly tax provision are updated with additional information. The effective tax rate for the six months ended June 30, 2023 was also impacted by a $863,300 increase in the valuation allowance related to certain tax elections made by Osprey Re. The table below summarizes the significant components of the Company’s net deferred tax assets: June 30, 2024 December 31, 2023 Deferred tax assets: (In thousands) Unearned premiums $ 23,519 $ 18,507 Unearned commission 7,958 7,964 Net operating loss 1 436 Tax-related discount on loss reserve 4,365 5,162 Stock-based compensation 684 331 Accrued expenses 905 1,677 Leases 937 940 Unrealized losses 11,506 11,655 Property and equipment 314 — Other 277 473 Total deferred tax assets 50,466 47,145 Deferred tax liabilities: Deferred acquisition costs $ 27,192 $ 24,366 Prepaid expenses 189 189 Property and equipment — 359 Note discount 73 152 Basis in purchased investments 7 8 Basis in purchased intangibles 8,658 9,327 Other 1,653 1,633 Total deferred tax liabilities 37,772 36,034 Net deferred tax asset: $ 12,694 $ 11,111 The statute of limitations related to the Company’s federal and state income tax returns remains open from the Company’s filings for 2020 through 2023. There are currently no tax years under examination. At June 30, 2024 and December 31, 2023, the Company had no significant uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Reinsurance | 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, 2024 and 2023, the Company purchased reinsurance from the following sources: (i) the Florida Hurricane Catastrophe Fund, a state-mandated catastrophe fund (“FHCF”) which provides reinsurance for Florida admitted 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”). The Company also sponsored catastrophe bonds in 2024 and 2023 through Citrus Re Ltd., a Bermuda special purpose insurer, which provided an alternative to traditional reinsurance through the issuance of catastrophe bonds. For the 2023 hurricane season only, the Company also obtained reinsurance from the Florida State Board of Administration’s Reinsurance to assist Policyholders (“RAP”) program which provided reinsurance for Florida admitted policies only. The RAP component of the Company's reinsurance program was provided at no cost to the Company and is a non-recurring reinsurance program. 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 severe non-catastrophe losses 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 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 generally 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. 2024 - 2025 Reinsurance Program Catastrophe Excess of Loss Reinsurance Effective June 1, 2024, 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 and Osprey Re. The FHCF covers Florida admitted market risks only and the Company elected to participate at 90% for the 2024 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 and Citrus Re are fully collateralized programs. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2024-2025 reinsurance program provides first event coverage up to $1.3 billion for Heritage P&C, first event coverage up to $1.1 billion for NBIC, and first event coverage up to $750.0 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 $34.0 million would be ceded to Osprey; NBIC – $31.8 million of which the entire amount would be ceded to Osprey in a shared contract with Zephyr; and Zephyr — $40 million, of which $32 million would be ceded to Osprey in a shared contract with NBIC as well as $8.0 million ceded to Osprey in a separate reinsurance contract. 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 $3.3 billion of limit is available in 2024, which 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. Additionally, the Company placed occurrence contracts for business underwritten by NBIC which covers all catastrophe losses excluding named storms, on December 31, 2023, expiring December 31, 2024. One contract which is 60% placed has a $15.0 million limit in excess of a retention of $25.0 million. Another contract provides the remaining 40% with a $20.0 million limit in excess of a retention of $20.0 million. Each contract has one reinstatement available. 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, 2023 ceding 41.0% of the net premiums. 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 $1.5 million per claim. The limit recoverable for an individual loss is $8.5 million and total limit for all losses is $25.5 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. This coverage for the contract period from June 15, 2024 through June 14, 2025 is 100% placed. 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 $1 million per claim. The limit recovered for an individual loss is $500,000 and total limit for all losses is $1.5 million. 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. The maximum limit for this coverage is $80.0 million. This coverage applies to 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 also purchased facultative reinsurance for losses underwritten by NBIC in excess of $3.5 million. 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, 2023 through June 30, 2024, the coverage is $2.5 million excess $1.0 million for property losses and $1.0 million excess $1.0 million for casualty losses, and is 67.5% placed. For a detailed discussion of the Company’s 2023-2024 Reinsurance Program r efer to Part I, “Business”, Part II, Item 8, “Financial Statements and Supplementary Data” and “ Note 12. Reinsurance ” in the Company’s 2023 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 six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) (In thousands) Premium written: Direct $ 424,530 $ 396,559 $ 781,214 $ 706,868 Ceded (488,210) (473,657) (532,678) (506,433) Net $ (63,680) $ (77,098) $ 248,536 $ 200,435 Premiums earned: Direct $ 350,073 $ 330,015 $ 691,462 $ 647,037 Ceded (159,757) (153,211) (321,720) (304,204) Net $ 190,316 $ 176,804 $ 369,742 $ 342,833 Loss and Loss Adjustment Expenses Direct $ 210,962 $ 144,219 $ 502,324 $ 307,036 Ceded (105,034) (37,573) (294,361) (102,939) Net $ 105,928 $ 106,646 $ 207,963 $ 204,098 |
Reserve For Unpaid Losses
Reserve For Unpaid Losses | 6 Months Ended |
Jun. 30, 2024 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Unpaid Losses | 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. The table below summarizes the activity related to the Company’s reserve for unpaid losses: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 843,687 $ 980,992 $ 845,955 $ 1,131,807 Less: reinsurance recoverable on unpaid losses 477,876 620,218 421,798 759,681 Net balance, beginning of period 365,811 360,774 424,157 372,126 Incurred related to: Current year 97,240 109,371 192,612 208,285 Prior years 8,688 (2,725) 15,351 (4,187) Total incurred 105,928 106,646 207,963 204,098 Paid related to: Current year 51,201 53,569 81,383 83,944 Prior years 66,404 38,281 196,603 116,710 Total paid 117,605 91,850 277,986 200,654 Net balance, end of period 354,134 375,570 354,134 375,570 Plus: reinsurance recoverable on unpaid losses 468,137 442,289 468,137 442,289 Balance, end of period $ 822,271 $ 817,859 $ 822,271 $ 817,859 The Company believes that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. As of June 30, 2024, the Company reported $354.1 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $240.6 million attributable to IBNR net of reinsurance recoverable, or 67.9% of net reserves for unpaid losses and loss adjustment expenses. For the three months ended June 30, 2024, the Company experienced $8.7 million of net unfavorable prior year loss development compared to $2.7 million of net favorable prior year loss development for the three months ended June 30, 2023. For the six months ended June 30, 2024, the Company experienced $15.4 million of net unfavorable prior year loss development compared to $4.2 million of net favorable prior year loss development for the six months ended June 30, 2023. The unfavorable development is largely associated with adverse development on Hurricane Irma claims, for which the losses are fully retained. Reinsurance recoverable on unpaid losses includes expected reinsurance recoveries associated with reinsurance contracts the Company has in place. The amount may include recoveries from catastrophe excess of loss reinsurance, net quota share reinsurance, per risk reinsurance, and facultative reinsurance contracts. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 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. 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 was the proportionate amount of the unamortized issuance and debt discount costs associated with this repurchase. As of December 31, 2023 and at June 30, 2024, the Company had approximately $885,000 of the Convertible Notes outstanding, net of $21.1 million of Convertible Notes held by an insurance company subsidiary. For the six-months ended June 30, 2024 and 2023, the Company made interest payments, net of affiliated Convertible Notes, of approximately $25,115 and $26,000, on the outstanding Convertible Notes, respectively. Senior Secured Credit Facility The Company is party to a credit agreement dated as of December 14, 2018 (as amended from time to time, the “Credit Agreement”) with a syndicate of lenders. 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 . 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 December 31, 2023 and June 30, 2024, there was $79.6 million and $74.9 million, respectively in aggregate principal outstanding under the Term Loan Facility and 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 $10 million in aggregate principal outstanding under the Revolving Credit Facility. For the six months ended June 30, 2024, the Company made principal and interest payments of approximately $4.8 million and $3.3 million, respectively, on the Term Loan Facility and for the comparable period of 2023, the Company made principal and interest payments of $4.8 million and $3.4 million, respectively, on the Term Loan Facility. 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. At June 30, 2024 and December 31, 2023, the Company had $10.0 million in borrowings under the Revolving Credit Facility. At June 30, 2024 and 2023, there were no outstanding letters of credit issued under the Revolving Credit Facility. For the six months ended June 30, 2023, the Company made interest payments in aggregate of approximately $332,106 on the Revolving Credit Facility. For the six months ended June 30, 2024, the Company made interest payments in aggregate of approximately $413,668 on the Revolving Credit Facility and $66,535 relating to unused availability commitment fees. At the Company's option, 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. At June 30, 2024, the effective interest rate for the Term Loan Facility and Revolving Credit Facility was 8.171% and 8.179%, 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. Pursuant to the terms of the mortgage loan, on October 30, 2022, the interest rate adjusted to an interest rate equal to the annualized interest rate of the United States 5-year Treasury Notes as reported by the Federal Reserve on a weekly average basis plus 3.10%, which resulted in an increase of the rate from 4.95% to 7.42% per annum. The Company makes monthly principal and interest payments against the loan. For the six months ended June 30, 2024 and 2023, the Company made principal and interest payments $548,131 of $518,746 on the mortgage loan, respectively. 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. On September 29, 2023, the Company restructured the December 2018 agreement to extend the maturity date to March 28, 2025, with a 5.109% fixed interest rate payable quarterly commencing on December 28, 2023. The subsidiary continues to be a member in the 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 June 30, 2024, the fair value of the collateralized securities was $23.6 million and the equity investment in FHLB common stock was $1.5 million. For the six months ended June 30, 2024, and 2023, the Company made quarterly interest payments as per the terms of the loan agreement of approximately $498,828 and $300,325, respectively. As of June 30, 2024 and at December 31, 2023, the Company also holds other common stock from FHLB Boston for a value of $177,197, classified as equity securities and reported at fair value on the condensed consolidated financial statements. In December 2018, an insurance subsidiary became a member of the FHLB-DM. Membership in the FHLB-DM required an investment in FHLB-DM’s common stock which was purchased in December 2018 and valued at $133,200. In January 2024, the insurance subsidiary of the Company received a 4.23% fixed interest rate cash loan of $5.5 million from the Federal Home Loan Bank (“FHLB-DM”) Des Moines. Additionally, the transaction required the acquired FHLB-DM common stock and certain other investments to be pledged as collateral. As of June 30, 2024, the fair value of the collateralized securities was $8.0 million and the equity investment in FHLB common stock was $295,500. For the three and six months ended June 30, 2024, the Company made monthly interest payments as per the terms of the loan agreement of approximately $58,809, and $117,103, respectively. The following table summarizes the Company’s long-term debt and credit facilities as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Convertible debt $ 885 $ 885 Mortgage loan 10,889 11,019 Term loan facility 74,875 79,625 Revolving credit facility 10,000 10,000 FHLB loan agreements 24,700 19,200 Total principal amount $ 121,349 $ 120,729 Deferred finance costs $ 569 $ 997 Total long-term debt $ 120,780 $ 119,732 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, 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 in the Credit Agreement 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. The schedule of principal payments on long-term debt as of June 30, 2024 is as follows: Year Amount (In thousands) 2024 remaining $ 4,975 2025 29,074 2026 71,018 2027 9,897 2028 — Thereafter 6,385 Total $ 121,349 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | ACCOUNTS PAYABLE AND OTHER LIABILITIES Accounts payable and other liabilities consist of the following: Description June 30, 2024 December 31, 2023 (In thousands) Deferred ceding commission $ 33,602 $ 33,627 Accounts payable and other payables 15,058 16,185 Taxes, licenses and fees 4,908 — Accrued interest and issuance costs 261 325 Other liabilities 213 329 Premium tax — 1,486 Commission payables 17,682 17,714 Total other liabilities $ 71,724 $ 69,666 |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Statutory Accounting and Regulations | 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 Property & Casualty Insurance Company (“Heritage P&C)”, Narragansett Bay Insurance Company (“NBIC”), Zephyr Insurance Company (“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 $15.0 million or 10% of its 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, and NBIC was $253.0 million at June 30, 2024 and $259.6 million at December 31, 2023. State law also requires the Company’s insurance subsidiaries to adhere to prescribed premium-to-capital surplus ratios, and risk-based capital requirements with which the Company's insurance subsidiaries are in compliance. At June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESThe 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 | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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 June 30, 2024 and 2023. • 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 the 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 June 30, 2024 and 2023, the Company paid agency commission to Comegys of approximately $39,280 and $33,160, respectively. For the six months ended June 30, 2024 and 2023, the Company paid agency commission to Comegys of approximately $80,088 and $69,901, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company provides a 401(k) plan for all qualifying 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 months ended June 30, 2024 and 2023, the contributions made to the plan on behalf of the participating employees were approximately $368,500 and $330,470, respectively. For the six months ended June 30, 2024 and 2023, the contributions made to the plan on behalf of the participating employees were approximately $821,700 and $729,670, respectively. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | 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 June 30, 2024, the Company had 30,684,198 shares of common stock outstanding, 12,231,674 treasury shares of common stock and 1,549,775 unvested restricted common stock with accrued dividends reflecting additional paid-in capital of $361.8 million as of such date. As more fully disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2023, as of December 31, 2023, there were 30,218,938 shares of common stock outstanding, 12,231,674 treasury shares of common stock and 1,161,811 unvested shares of restricted common stock with accrued dividends, representing $360.3 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 the Company's net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There is no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock (excluding restricted stock) are fully paid and non-assessable. Stock Repurchase Program On December 15, 2022, the Board of Directors established a new share repurchase program plan to commence on December 31, 2022, for the purpose of repurchasing up to an aggregate of $10.0 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, 2023 (the "Prior Share Repurchase Plan"). There were no shares repurchased for the year ended December 31, 2023. On March 11, 2024, the Board of Directors established a new share repurchase program plan which commenced upon the expiration of the Prior Share Repurchase Plan on December 31, 2023, for the purpose of repurchasing up to an aggregate of $10.0 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, 2024 (the "New Share Repurchase Plan"). There were no shares repurchased for the six months ended June 30, 2024. At June 30, 2024, the Company has the capacity under the New Share Repurchase Plan to repurchase $10.0 million of its common stock until December 31, 2024. Dividends The declaration and payment of any future dividends will be subject to the discretion of the Board of Directors and will depend on a variety of factors including the Company’s financial condition and results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Restricted Stock The Company has adopted the Heritage Insurance Holdings, Inc. 2023 Omnibus Incentive Plan (the “2023 Plan”), which became effective on June 7, 2023. The 2023 Plan authorized 2,125,000 shares of common stock for issuance under the Plan for future grants. Upon effectiveness of the 2023 Plan, no new awards may be granted under the prior Omnibus Incentive Plan, which will continue to govern the terms of awards previously made under such plan. At June 30, 2024, there were in aggregate 854,857 shares available for grant under the 2023 Plan. The Company recognizes compensation expense under ASC 718 for its stock-based payments based on the fair value of the awards. In June 2024, the Company awarded to non-employee directors in aggregate 39,312 shares of restricted stock with a fair value at the time of grant of $8.14 per share. The awards shall vest on 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. On February 26, 2024, the Company awarded 163,640 shares of time-based restricted stock and 253,918 shares of performance-based restricted stock, with a fair value at the time of grant of $7.02 per share under the 2023 Plan to certain employees. The time-based restricted stock shall vest annually in three equal installments commencing on December 15, 2024. The performance based restricted stock has a three-year performance period beginning on January 1, 2024 and ending on December 31, 2026 and will vest following the end of the performance period but no later than March 30, 2027. The number of shares that will be earned at the end of the performance period is subject to increase or decrease based on the results of the performance condition. On July 11, 2023, the Company awarded 351,716 shares of time-based restricted stock and 857,843 shares of performance-based restricted stock, with a fair value at the time of grant of $4.08 per share under the 2023 Plan to certain employees. The time-based restricted stock shall vest annually in three In June 2023, the Company awarded to non-employee directors in aggregate 63,744 shares of restricted stock with a fair value at the time of grant of $5.02 per share. The awards shall vest on 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. In August 2023, the awards were amended to reflect the correct grant date fair market value that resulted in an adjustment to the number of shares of restricted stock awarded from 63,744 to 77,296 shares of restricted stock. The Company's annual shareholders meeting was held on June 5, 2024, at which time 77,296 shares of restricted stock were effectively vested. For the performance-based shares issued in 2023, the number of shares that will be earned at the end of the performance period is subject to decrease based on the result of the performance condition, as these shares were issued at the maximum amount. For the performance-based shares issued in 2024, the number of shares that will be earned at the end of the performance period is subject to increase or decrease based on the result of the performance condition, as these shares were issued at the target amount. 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. Restricted stock activity for the six months ended June 30, 2024 is as follows: Number of shares Weighted-Average Grant-Date Fair Value per Share Non-vested, at December 31, 2023 1,161,811 $ 4.25 Granted - Performance-based restricted stock 253,918 7.12 Granted - Time-based restricted stock 211,342 7.02 Vested (77,296) 4.14 Canceled and surrendered — — Non-vested, at June 30, 2024 1,549,775 $ 6.07 Awards are being amortized to expense over the one At June 30, 2024, there was approximately $2.0 million unrecognized expense related to time-based non-vested restricted stock and an additional $3.2 million for performance-based restricted stock, net of expected forfeitures which is expected to be recognized over the remaining restriction periods as described in the table below. At June 30, 2023, there was approximately $1.5 million of unrecognized expense. Additional information regarding the Company’s outstanding non-vested time-based restricted stock and performance-based restricted stock at June 30, 2024 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) March 16, 2022 37,947 6.72 0.6 July 11, 2023 1,046,568 4.08 1.3 February 26, 2024 417,558 7.02 2.5 March 11, 2024 8,390 7.15 0.6 June 6, 2024 39,312 8.14 1 Total 1,549,775 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the condensed consolidated financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the condensed consolidated financial statements as of June 30, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 18,869 | $ 14,225 | $ 7,779 | $ 14,008 | $ 33,094 | $ 21,787 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Accounting Pronouncements not yet adopted | Accounting Pronouncements not yet adopted The Company has documented the summary of its significant accounting policies in its Notes to the Audited Consolidated Financial Statements contained in the Company’s 2023 Form 10-K. There have been no material changes to the Company’s accounting policies since the filing of that report. On March 6, 2024, the SEC adopted new rules designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The rules amend the provisions of both Regulation S-K and Regulation S-X to require disclosure of climate-related risks, transition plans, targets and goals, risk management and governance as well as require disclosure of the financial effects of severe weather events and other natural conditions as well as the use of carbon offsets or renewable energy credits. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025, subject to legal challenges and the SEC's voluntary stay of the disclosure requirements. The Company will continue to assess the impact of these new rules on its financial statements while the stay is in place. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 168,760 $ 68 $ 1,178 $ 167,650 States, municipalities and political subdivisions 322,003 93 30,256 291,840 Corporate bonds 227,867 379 11,402 216,844 Mortgage-backed securities (1) 18,646 — 2,881 15,765 Asset-backed securities 2,892 — 143 2,749 Other 4,005 — — 4,005 Total $ 744,173 $ 540 $ 45,860 $ 698,853 (1) Includes securities at June 30, 2024 with a carrying amount of $23.6 million and $8.0 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018 and 2024. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. December 31, 2023 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 81,540 $ 417 $ 1,295 $ 80,662 States, municipalities and political subdivisions 319,896 104 31,018 288,982 Corporate bonds 178,213 475 11,858 166,830 Mortgage-backed securities 22,695 — 2,769 19,926 Asset-backed securities 247 — 20 227 Other 4,055 — — 4,055 Total $ 606,646 $ 996 $ 46,960 $ 560,682 (1) Includes securities at December 31, 2023 with a carrying amount of $24.3 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 on Debt Securities Available-for-sale | The following tables present net realized gains (losses) on the Company’s debt securities available-for-sale for the three and six months ended June 30, 2024 and 2023, respectively : 2024 2023 Three Months Ended June 30, Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 13 $ 907 $ — $ — Total realized losses (1) 117 (9) 308 Net realized gains (losses) $ 12 $ 1,024 $ (9) $ 308 2024 2023 Six Months Ended June 30, Gains (Losses) Fair Value at Sale Gains (Losses) Fair Value at Sale (In thousands) Debt Securities Available-for-Sale Total realized gains $ 13 $ 2,644 $ — $ — Total realized losses (2) 308 (11) 598 Net realized gains (losses) $ 11 $ 2,952 $ (11) $ 598 |
Schedule of Reconciliation of Net Realized Losses and Impairments of Investments | The following table presents the reconciliation of net realized (losses) gains and impairment of the Company’s investments reported for the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Gross realized gains on sales of available-for-sale securities $ 13 $ — $ 13 $ — Impairments on other investments — (1,559) — (1,559) Realized losses on sales of available-for-sale securities (1) (9) (2) (11) Gross realized gains on sale of other investments — — — 1,900 Net realized (losses) gains and impairments $ 12 $ (1,568) $ 11 $ 330 |
Summary of Debt Securities by Contractual Maturity Periods | The table below summarizes the Company’s debt securities at June 30, 2024 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At June 30, 2024 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 169,107 22.7 % $ 167,795 24.0 % Due after one year through five years 383,997 51.6 % 362,032 51.8 % Due after five years through ten years 163,398 22.0 % 144,765 20.7 % Due after ten years 27,671 3.7 % 24,261 3.5 % Total $ 744,173 100.0 % $ 698,853 100.0 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2024 and 2023, respectively: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Debt securities $ 6,502 $ 5,015 $ 11,057 $ 8,038 Equity securities 361 57 657 90 Cash and cash equivalents 3,595 2,246 7,814 4,449 Other investments 173 108 324 839 Net investment income 10,631 7,426 19,852 13,416 Less: Investment expenses 862 827 1,532 1,235 Net investment income, less investment expenses $ 9,769 $ 6,599 $ 18,320 $ 12,181 |
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 has 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 June 30, 2024 and December 31, 2023, respectively (in thousands): Less Than Twelve Months Twelve Months or More June 30, 2024 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 21 $ 128 $ 101,610 26 $ 1,050 $ 27,065 States, municipalities and political subdivisions 11 39 9,368 372 30,217 265,588 Corporate bonds 34 64 26,901 185 11,338 124,847 Mortgage-backed securities 6 — 3 121 2,881 15,763 Asset-backed securities — — — 35 143 525 Other — — — — — — Total fixed maturity securities 72 $ 231 $ 137,882 739 $ 45,629 $ 433,788 Less Than Twelve Months Twelve Months or More December 31, 2023 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 3 $ 14 $ 2,962 32 $ 1,281 $ 42,305 States, municipalities and political subdivisions 5 21 3,875 382 30,997 274,876 Corporate bonds 10 24 6,398 188 11,834 128,771 Mortgage-backed securities 10 — 7 138 2,769 19,810 Asset-backed securities 0 — — 24 20 373 Other 0 — — 0 — — Total fixed maturity securities 28 $ 59 $ 13,242 764 $ 46,901 $ 466,135 |
Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs | The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at June 30, 2024 and December 31, 2023, respectively (in thousands): As of June 30, 2024 As of December 31, 2023 Carrying Value Maximum Loss Exposure Carrying Value Maximum Loss Exposure Investments in non-consolidated VIEs - Equity method $ 1,682 $ 1,682 $ 1,819 $ 1,819 Investments in non-consolidated VIEs - Measurement alternative $ 5,108 $ 5,108 $ 5,248 $ 5,248 Total non-consolidated VIEs $ 6,790 $ 6,790 $ 7,067 $ 7,067 |
Fair Value of Financial Measu_2
Fair Value of Financial Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets (In thousands) Cash and cash equivalents $ 480,930 $ 480,930 $ — $ — Restricted cash $ 10,956 $ 10,956 $ — $ — Debt Securities Available-for-sale U.S. government and agency securities $ 167,650 $ — $ 167,650 $ — States, municipalities and political subdivisions 291,840 — 291,840 — Corporate bonds 216,844 — 216,844 — Mortgage-backed securities 15,765 — 15,765 — Asset-backed securities 2,749 — 2,749 — Other 4,005 — 4,005 — Total debt securities $ 698,853 $ — $ 698,853 $ — Equity Securities Common stock $ 1,936 $ 1,936 $ — $ — Total debt securities and equity securities $ 700,789 $ 1,936 $ 698,853 $ — December 31, 2023 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets (In thousands) Cash and cash equivalents $ 463,640 $ 463,640 $ — Restricted cash $ 9,699 $ 9,699 $ — Debt Securities Available-for-sale U.S. government and agency securities $ 80,662 $ — $ 80,662 $ — States, municipalities and political subdivisions 288,982 — 288,982 — Corporate bonds 166,830 — 166,830 — Mortgage-backed securities 19,926 — 19,926 — Asset-backed securities 227 — 227 — Other 4,055 — 4,055 — Total debt securities $ 560,682 $ — $ 560,682 $ — Equity Securities Common stock $ 1,666 $ 1,666 $ — $ — Total debt securities and equity securities $ 562,348 $ 1,666 $ 560,682 $ — |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 tables summarize other comprehensive income and disclose the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2024 and 2023, respectively: For the Three Months Ended June 30, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized gains (losses) on investments, net $ 924 $ (219) $ 705 $ (2,986) $ 700 $ (2,286) Reclassification adjustment of realized (gains) losses included in net income (12) 3 (9) 9 (2) 7 Effect on other comprehensive income $ 912 $ (216) $ 696 $ (2,977) $ 698 $ (2,279) For the Six Months Ended June 30, 2024 2023 Pre-tax Tax After-tax Pre-tax Tax After-tax (In thousands) Other comprehensive income Change in unrealized gains (losses) on investments, net $ 641 $ (152) $ 489 $ 9,158 $ (2,155) $ 7,003 Reclassification adjustment of realized losses included in net income (11) 2 (9) 11 (3) 8 Effect on other comprehensive income $ 630 $ (150) $ 480 $ 9,169 $ (2,158) $ 7,011 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Costs | Components of the Company’s lease costs were as follows (in thousands): For The Six Months Ended June 30, 2024 2023 Operating lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 810 $ 787 Finance lease cost: Amortization of assets, included in General & Administrative expenses on the Consolidated Statements of Operations 1,269 1,285 Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Operations 407 451 Total finance lease cost $ 1,676 $ 1,736 Variable lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 744 $ 796 Short-term lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations $ 42 $ 80 Supplemental cash flow information related to the Company's operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 June 30, 2023 Lease liability payments $ 1,139 $ 1,141 Finance Leases Lease liability payments $ 414 $ 443 Total lease liability payments $ 1,553 $ 1,584 |
Supplemental Balance Sheet Information Related to Operating and Financing Leases | Supplemental balance sheet information related to the Company’s operating and financing leases were as follows (in thousands): Operating Leases June 30, 2024 December 31, 2023 Right of use assets $ 6,357 $ 6,835 Lease liability $ 7,528 $ 8,076 Finance Leases Right of use assets $ 16,337 $ 17,606 Lease liability $ 19,250 $ 20,386 |
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: Weighted-average remaining lease term June 30, 2024 December 31, 2023 Operating lease 5.09 yrs. 5.57 yrs. Finance lease 6.67 yrs. 7.16 yrs. Weighted-average discount rate Operating lease 5.44 % 5.17 % Finance lease 4.14 % 4.15 % |
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): Financing Lease Operating Lease 2024 remaining $ 1,565 $ 876 2025 3,173 1,655 2026 3,216 1,636 2027 3,190 1,599 2028 3,270 1,633 2029 and thereafter 7,651 1,213 Total lease payments 22,065 8,612 Less: imputed interest (2,815) (1,084) Present value of lease liabilities $ 19,250 $ 7,528 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Land $ 2,582 $ 2,582 Building 9,599 9,599 Software in progress 17,530 14,450 Computer hardware and software 10,312 10,717 Office furniture and equipment 1,484 1,484 Tenant and leasehold improvements 10,893 10,876 Vehicle fleet 515 515 Total, at cost 52,915 50,223 Less: accumulated depreciation and amortization (18,405) (17,005) Property and equipment, net $ 34,510 $ 33,218 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 2024 - remaining $ 3,092 2025 6,183 2026 6,033 2027 5,836 2028 3,914 Thereafter 13,091 Total $ 38,149 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share (EPS) | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated (amounts in thousands, except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic and Diluted Net income available to common shareholders — basic and diluted $ 18,869 $ 7,779 $ 33,094 $ 21,787 Common Shares Basic Weighted average shares outstanding 30,649,732 25,567,157 30,513,207 25,562,731 Diluted Weighted average shares outstanding 30,649,732 25,567,157 30,513,207 25,562,731 5.875% Convertible Notes 59,263 59,263 59,263 59,263 Total 30,708,995 25,626,420 30,572,470 25,621,994 Net income per common share Basic $ 0.62 $ 0.30 $ 1.08 $ 0.85 Diluted $ 0.61 $ 0.30 $ 1.08 $ 0.85 |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Beginning balance of deferred ceding commission income $ 31,549 $ 40,688 $ 33,627 $ 42,757 Ceding commission deferred 14,537 13,888 24,839 28,909 Less: ceding commission earned (12,484) (16,586) (24,864) (33,676) Ending balance of deferred ceding commission income $ 33,602 $ 37,990 $ 33,602 $ 37,990 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs Disclosures [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 six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Beginning Balance $ 104,217 $ 98,035 $ 102,884 $ 99,617 Policy acquisition costs deferred 56,628 53,929 112,885 107,109 Amortization (46,027) (45,228) (100,951) (99,990) Ending Balance $ 114,818 $ 106,736 $ 114,818 $ 106,736 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Liability | The table below summarizes the significant components of the Company’s net deferred tax assets: June 30, 2024 December 31, 2023 Deferred tax assets: (In thousands) Unearned premiums $ 23,519 $ 18,507 Unearned commission 7,958 7,964 Net operating loss 1 436 Tax-related discount on loss reserve 4,365 5,162 Stock-based compensation 684 331 Accrued expenses 905 1,677 Leases 937 940 Unrealized losses 11,506 11,655 Property and equipment 314 — Other 277 473 Total deferred tax assets 50,466 47,145 Deferred tax liabilities: Deferred acquisition costs $ 27,192 $ 24,366 Prepaid expenses 189 189 Property and equipment — 359 Note discount 73 152 Basis in purchased investments 7 8 Basis in purchased intangibles 8,658 9,327 Other 1,653 1,633 Total deferred tax liabilities 37,772 36,034 Net deferred tax asset: $ 12,694 $ 11,111 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) (In thousands) Premium written: Direct $ 424,530 $ 396,559 $ 781,214 $ 706,868 Ceded (488,210) (473,657) (532,678) (506,433) Net $ (63,680) $ (77,098) $ 248,536 $ 200,435 Premiums earned: Direct $ 350,073 $ 330,015 $ 691,462 $ 647,037 Ceded (159,757) (153,211) (321,720) (304,204) Net $ 190,316 $ 176,804 $ 369,742 $ 342,833 Loss and Loss Adjustment Expenses Direct $ 210,962 $ 144,219 $ 502,324 $ 307,036 Ceded (105,034) (37,573) (294,361) (102,939) Net $ 105,928 $ 106,646 $ 207,963 $ 204,098 |
Reserve for Unpaid Losses (Tabl
Reserve for Unpaid Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Insurance Loss Reserves [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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 843,687 $ 980,992 $ 845,955 $ 1,131,807 Less: reinsurance recoverable on unpaid losses 477,876 620,218 421,798 759,681 Net balance, beginning of period 365,811 360,774 424,157 372,126 Incurred related to: Current year 97,240 109,371 192,612 208,285 Prior years 8,688 (2,725) 15,351 (4,187) Total incurred 105,928 106,646 207,963 204,098 Paid related to: Current year 51,201 53,569 81,383 83,944 Prior years 66,404 38,281 196,603 116,710 Total paid 117,605 91,850 277,986 200,654 Net balance, end of period 354,134 375,570 354,134 375,570 Plus: reinsurance recoverable on unpaid losses 468,137 442,289 468,137 442,289 Balance, end of period $ 822,271 $ 817,859 $ 822,271 $ 817,859 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Convertible debt $ 885 $ 885 Mortgage loan 10,889 11,019 Term loan facility 74,875 79,625 Revolving credit facility 10,000 10,000 FHLB loan agreements 24,700 19,200 Total principal amount $ 121,349 $ 120,729 Deferred finance costs $ 569 $ 997 Total long-term debt $ 120,780 $ 119,732 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt as of June 30, 2024 is as follows: Year Amount (In thousands) 2024 remaining $ 4,975 2025 29,074 2026 71,018 2027 9,897 2028 — Thereafter 6,385 Total $ 121,349 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities consist of the following: Description June 30, 2024 December 31, 2023 (In thousands) Deferred ceding commission $ 33,602 $ 33,627 Accounts payable and other payables 15,058 16,185 Taxes, licenses and fees 4,908 — Accrued interest and issuance costs 261 325 Other liabilities 213 329 Premium tax — 1,486 Commission payables 17,682 17,714 Total other liabilities $ 71,724 $ 69,666 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the six months ended June 30, 2024 is as follows: Number of shares Weighted-Average Grant-Date Fair Value per Share Non-vested, at December 31, 2023 1,161,811 $ 4.25 Granted - Performance-based restricted stock 253,918 7.12 Granted - Time-based restricted stock 211,342 7.02 Vested (77,296) 4.14 Canceled and surrendered — — Non-vested, at June 30, 2024 1,549,775 $ 6.07 |
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 June 30, 2024 is as follows: Grant date Restricted shares unvested Share Value at Grant Date Per Share Remaining Restriction Period (Years) March 16, 2022 37,947 6.72 0.6 July 11, 2023 1,046,568 4.08 1.3 February 26, 2024 417,558 7.02 2.5 March 11, 2024 8,390 7.15 0.6 June 6, 2024 39,312 8.14 1 Total 1,549,775 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total | $ 744,173 | $ 606,646 |
Gross Unrealized Gains | 540 | 996 |
Gross Unrealized Losses | 45,860 | 46,960 |
Fair Value | 698,853 | 560,682 |
Carrying amount | 24,300 | |
2018 Investment Agreement | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying amount | 23,600 | |
2024 Investment Agreement | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying amount | 8,000 | |
U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 168,760 | 81,540 |
Gross Unrealized Gains | 68 | 417 |
Gross Unrealized Losses | 1,178 | 1,295 |
Fair Value | 167,650 | 80,662 |
States, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 322,003 | 319,896 |
Gross Unrealized Gains | 93 | 104 |
Gross Unrealized Losses | 30,256 | 31,018 |
Fair Value | 291,840 | 288,982 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 227,867 | 178,213 |
Gross Unrealized Gains | 379 | 475 |
Gross Unrealized Losses | 11,402 | 11,858 |
Fair Value | 216,844 | 166,830 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 18,646 | 22,695 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,881 | 2,769 |
Fair Value | 15,765 | 19,926 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 2,892 | 247 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 143 | 20 |
Fair Value | 2,749 | 227 |
Other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 4,005 | 4,055 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 4,005 | $ 4,055 |
Investments - Schedule of Net R
Investments - Schedule of Net Realized Losses on Debt Securities Available-for-sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities Available-for-Sale | ||||
Total realized gains | $ 13 | $ 0 | $ 13 | $ 0 |
Total realized losses | (1) | (9) | (2) | (11) |
Net realized gains (losses) | 12 | (9) | 11 | (11) |
Debt Securities Available-for-Sale | ||||
Total realized gains | 907 | 0 | 2,644 | 0 |
Total realized losses | 117 | 308 | 308 | 598 |
Net realized gains (losses) | $ 1,024 | $ 308 | $ 2,952 | $ 598 |
Investments - Schedule of Recon
Investments - Schedule of Reconciliation of Net Realized Losses and Impairments of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains on sales of available-for-sale securities | $ 13 | $ 0 | $ 13 | $ 0 |
Impairments on other investments | 0 | (1,559) | 0 | (1,559) |
Realized losses on sales of available-for-sale securities | (1) | (9) | (2) | (11) |
Gross realized gains on sale of other investments | 0 | 0 | 0 | 1,900 |
Net realized (losses) gains and impairments | $ 12 | $ (1,568) | $ 11 | $ 330 |
Investments - Summary of Debt S
Investments - Summary of Debt Securities by Contractual Maturity Periods (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cost or Amortized Cost | ||
Due in one year or less | $ 169,107 | |
Due after one year through five years | 383,997 | |
Due after five years through ten years | 163,398 | |
Due after ten years | 27,671 | |
Total | $ 744,173 | $ 606,646 |
Percent of Total | ||
Due in one year or less | 22.70% | |
Due after one year through five years | 51.60% | |
Due after five years through ten years | 22% | |
Due after ten years | 3.70% | |
Total | 100% | |
Fair Value | ||
Due in one year or less | $ 167,795 | |
Due after one year through five years | 362,032 | |
Due after five years through ten years | 144,765 | |
Due after ten years | 24,261 | |
Total | $ 698,853 | $ 560,682 |
Percent of Total | ||
Due in one year or less | 24% | |
Due after one year through five years | 51.80% | |
Due after five years through ten years | 20.70% | |
Due after ten years | 3.50% | |
Total | 100% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income | $ 10,631 | $ 7,426 | $ 19,852 | $ 13,416 |
Less: Investment expenses | 862 | 827 | 1,532 | 1,235 |
Net investment income, less investment expenses | 9,769 | 6,599 | 18,320 | 12,181 |
Debt securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income | 6,502 | 5,015 | 11,057 | 8,038 |
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income | 361 | 57 | 657 | 90 |
Cash and cash equivalents | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income | 3,595 | 2,246 | 7,814 | 4,449 |
Other investments | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Net investment income | $ 173 | $ 108 | $ 324 | $ 839 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position, Aggregate Fair Value (Detail) $ in Thousands | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Less Than Twelve Months | ||
Number of Securities | security | 72 | 28 |
Gross Unrealized Losses | $ 231 | $ 59 |
Fair Value | $ 137,882 | $ 13,242 |
Twelve Months or More | ||
Number of Securities | security | 739 | 764 |
Gross Unrealized Losses | $ 45,629 | $ 46,901 |
Fair Value | $ 433,788 | $ 466,135 |
U.S. government and agency securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 21 | 3 |
Gross Unrealized Losses | $ 128 | $ 14 |
Fair Value | $ 101,610 | $ 2,962 |
Twelve Months or More | ||
Number of Securities | security | 26 | 32 |
Gross Unrealized Losses | $ 1,050 | $ 1,281 |
Fair Value | $ 27,065 | $ 42,305 |
States, municipalities and political subdivisions | ||
Less Than Twelve Months | ||
Number of Securities | security | 11 | 5 |
Gross Unrealized Losses | $ 39 | $ 21 |
Fair Value | $ 9,368 | $ 3,875 |
Twelve Months or More | ||
Number of Securities | security | 372 | 382 |
Gross Unrealized Losses | $ 30,217 | $ 30,997 |
Fair Value | $ 265,588 | $ 274,876 |
Corporate bonds | ||
Less Than Twelve Months | ||
Number of Securities | security | 34 | 10 |
Gross Unrealized Losses | $ 64 | $ 24 |
Fair Value | $ 26,901 | $ 6,398 |
Twelve Months or More | ||
Number of Securities | security | 185 | 188 |
Gross Unrealized Losses | $ 11,338 | $ 11,834 |
Fair Value | $ 124,847 | $ 128,771 |
Mortgage-backed securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 6 | 10 |
Gross Unrealized Losses | $ 0 | $ 0 |
Fair Value | $ 3 | $ 7 |
Twelve Months or More | ||
Number of Securities | security | 121 | 138 |
Gross Unrealized Losses | $ 2,881 | $ 2,769 |
Fair Value | $ 15,763 | $ 19,810 |
Asset-backed securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 0 | 0 |
Gross Unrealized Losses | $ 0 | $ 0 |
Fair Value | $ 0 | $ 0 |
Twelve Months or More | ||
Number of Securities | security | 35 | 24 |
Gross Unrealized Losses | $ 143 | $ 20 |
Fair Value | $ 525 | $ 373 |
Other | ||
Less Than Twelve Months | ||
Number of Securities | security | 0 | 0 |
Gross Unrealized Losses | $ 0 | $ 0 |
Fair Value | $ 0 | $ 0 |
Twelve Months or More | ||
Number of Securities | security | 0 | 0 |
Gross Unrealized Losses | $ 0 | $ 0 |
Fair Value | $ 0 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Credit allowance for securities | $ 0 | $ 0 |
Investments - Summary of Carryi
Investments - Summary of Carrying Value and Maximum Loss Exposure of Company's Non-consolidated VIEs (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Carrying Value | $ 6,790 | $ 7,067 |
Non-Consolidating Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 6,790 | 7,067 |
Maximum Loss Exposure | 6,790 | 7,067 |
Non-Consolidating Variable Interest Entities | Investments in non-consolidated VIEs - Equity method | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 1,682 | 1,819 |
Maximum Loss Exposure | 1,682 | 1,819 |
Non-Consolidating Variable Interest Entities | Investments in non-consolidated VIEs - Measurement alternative | ||
Variable Interest Entity [Line Items] | ||
Carrying Value | 5,108 | 5,248 |
Maximum Loss Exposure | $ 5,108 | $ 5,248 |
Fair Value of Financial Measu_3
Fair Value of Financial Measurements - Schedule of Fair Value of Measurements (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | $ 698,853 | $ 560,682 |
Total debt securities and equity securities | 700,789 | 562,348 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Total debt securities and equity securities | 1,936 | 1,666 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 698,853 | 560,682 |
Total debt securities and equity securities | 698,853 | 560,682 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Total debt securities and equity securities | 0 | 0 |
U.S. government and agency securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 167,650 | 80,662 |
U.S. government and agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
U.S. government and agency securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 167,650 | 80,662 |
U.S. government and agency securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
States, municipalities and political subdivisions | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 291,840 | 288,982 |
States, municipalities and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
States, municipalities and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 291,840 | 288,982 |
States, municipalities and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 216,844 | 166,830 |
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 216,844 | 166,830 |
Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-backed securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 15,765 | 19,926 |
Mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 15,765 | 19,926 |
Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Asset-backed securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 2,749 | 227 |
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 2,749 | 227 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-back securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 4,005 | 4,055 |
Mortgage-back securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Mortgage-back securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 4,005 | 4,055 |
Mortgage-back securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Common Shares | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Equity Securities | 1,936 | 1,666 |
Common Shares | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Equity Securities | 1,936 | 1,666 |
Common Shares | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Equity Securities | 0 | 0 |
Common Shares | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Equity Securities | 0 | 0 |
Cash and cash equivalents | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 480,930 | 463,640 |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 480,930 | 463,640 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 0 | 0 |
Restricted Cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 10,956 | 9,699 |
Restricted Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 10,956 | 9,699 |
Restricted Cash | Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | 0 | |
Restricted Cash | Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive (Loss) Income and Tax Impact of Each Component of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pre-tax | ||||
Change in unrealized gains (losses) on investments, net | $ 924 | $ (2,986) | $ 641 | $ 9,158 |
Reclassification adjustment of realized (gains) losses included in net income | (12) | 9 | (11) | 11 |
Effect on other comprehensive income | 912 | (2,977) | 630 | 9,169 |
Tax | ||||
Change in unrealized gains (losses) on investments, net | (219) | 700 | (152) | (2,155) |
Reclassification adjustment of realized (gains) losses included in net income | 3 | (2) | 2 | (3) |
Effect on other comprehensive income | (216) | 698 | (150) | (2,158) |
After-tax | ||||
Change in unrealized gains (losses) on investments, net | 705 | (2,286) | 489 | 7,003 |
Reclassification adjustment of realized (gains) losses included in net income | (9) | 7 | (9) | 8 |
Effect on other comprehensive income | $ 696 | $ (2,279) | $ 480 | $ 7,011 |
Leases - Additional Information
Leases - Additional Information (Detail) | Jun. 30, 2024 |
Minimum | |
Lessee Lease Description [Line Items] | |
Lease terms | 1 year |
Renewal terms of lease | 2 years |
Maximum | |
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 | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Lessee Lease Description [Line Items] | ||
Total finance lease cost | $ 1,676 | $ 1,736 |
General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations | 810 | 787 |
Amortization of assets, included in General & Administrative expenses on the Consolidated Statements of Operations | 1,269 | 1,285 |
Variable lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations | 744 | 796 |
Short-term lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations | 42 | 80 |
Interest Expense | ||
Lessee Lease Description [Line Items] | ||
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Operations | $ 407 | $ 451 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Right of use assets | $ 6,357 | $ 6,835 |
Lease liability, operating | 7,528 | 8,076 |
Finance Leases | ||
Right of use assets | 16,337 | 17,606 |
Lease liability, finance | $ 19,250 | $ 20,386 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases (Detail) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease (in years) | 5 years 1 month 2 days | 5 years 6 months 25 days |
Finance lease (in years) | 6 years 8 months 1 day | 7 years 1 month 28 days |
Operating lease (%) | 5.44% | 5.17% |
Finance lease (%) | 4.14% | 4.15% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Lease | ||
2024 remaining | $ 1,565 | |
2025 | 3,173 | |
2026 | 3,216 | |
2027 | 3,190 | |
2028 | 3,270 | |
2029 and thereafter | 7,651 | |
Total lease payments | 22,065 | |
Less: imputed interest | (2,815) | |
Lease liability, finance | 19,250 | $ 20,386 |
Operating Lease | ||
2024 remaining | 876 | |
2025 | 1,655 | |
2026 | 1,636 | |
2027 | 1,599 | |
2028 | 1,633 | |
2029 and thereafter | 1,213 | |
Total lease payments | 8,612 | |
Less: imputed interest | (1,084) | |
Lease liability, operating | $ 7,528 | $ 8,076 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Leases | ||
Lease liability payments | $ 1,139 | $ 1,141 |
Finance Leases | ||
Lease liability payments | 414 | 443 |
Total lease liability payments | $ 1,553 | $ 1,584 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 52,915 | $ 50,223 |
Less: accumulated depreciation and amortization | (18,405) | (17,005) |
Property and equipment, net | 34,510 | 33,218 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,582 | 2,582 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 9,599 | 9,599 |
Less: accumulated depreciation and amortization | (2,600) | |
Software in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 17,530 | 14,450 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 10,312 | 10,717 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 1,484 | 1,484 |
Tenant and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 10,893 | 10,876 |
Vehicle fleet | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 515 | $ 515 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) Building | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) a ft² Building | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation and amortization expense | $ 718,800 | $ 566,000 | $ 1,400,000 | $ 1,100,000 | |
Number of acres of land purchased | a | 13 | ||||
Number of buildings | Building | 2 | 2 | |||
Gross area of acquired property | ft² | 88,378 | ||||
Total, at cost | $ 52,915,000 | $ 52,915,000 | $ 50,223,000 | ||
Accumulated depreciation | $ 18,405,000 | $ 18,405,000 | $ 17,005,000 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite Lived Intangible Assets [Line Items] | |||||
Intangibles, net | $ 39,464,000 | $ 39,464,000 | $ 42,555,000 | ||
Indefinite lived intangible, insurance licenses | 1,300,000 | 1,300,000 | |||
Impairment of certain brand and customer relations, net | $ 766,600 | ||||
Impairment of intangible assets | 0 | 766,600 | 0 | $ 766,600 | |
Amortization of intangible assets | $ 1,600,000 | $ 1,600,000 | $ 3,100,000 | $ 3,200,000 | |
Minimum | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 2 years 6 months | 2 years 6 months | |||
Maximum | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 15 years | 15 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 - remaining | $ 3,092 |
2025 | 6,183 |
2026 | 6,033 |
2027 | 5,836 |
2028 | 3,914 |
Thereafter | 13,091 |
Total | $ 38,149 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share (EPS) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic and Diluted | ||||
Net income available to common shareholders — basic | $ 18,869 | $ 7,779 | $ 33,094 | $ 21,787 |
Net income available to common shareholders — diluted | $ 18,869 | $ 7,779 | $ 33,094 | $ 21,787 |
Basic | ||||
Weighted average shares outstanding | 30,649,732 | 25,567,157 | 30,513,207 | 25,562,731 |
Diluted | ||||
Weighted average shares outstanding | 30,649,732 | 25,567,157 | 30,513,207 | 25,562,731 |
5.875% Convertible Notes (in shares) | 59,263 | 59,263 | 59,263 | 59,263 |
Total (in shares) | 30,708,995 | 25,626,420 | 30,572,470 | 25,621,994 |
Net income per common share (in dollars per share) | ||||
Basic (in dollars per share) | $ 0.62 | $ 0.30 | $ 1.08 | $ 0.85 |
Diluted (in dollars per share) | $ 0.61 | $ 0.30 | $ 1.08 | $ 0.85 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 12,484 | $ 16,586 | $ 24,864 | $ 33,676 |
Policy Acquisition Costs | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | 9,400 | 12,800 | 18,700 | 25,300 |
General and Administrative Expenses | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 3,100 | $ 4,100 | $ 6,100 | $ 8,300 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Deferred Ceding Commission Income [Roll Forward] | ||||
Beginning balance of deferred ceding commission income | $ 31,549 | $ 40,688 | $ 33,627 | $ 42,757 |
Ceding commission deferred | 14,537 | 13,888 | 24,839 | 28,909 |
Less: ceding commission earned | (12,484) | (16,586) | (24,864) | (33,676) |
Ending balance of deferred ceding commission income | $ 33,602 | $ 37,990 | $ 33,602 | $ 37,990 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Beginning Balance | $ 104,217 | $ 98,035 | $ 102,884 | $ 99,617 |
Policy acquisition costs deferred | 56,628 | 53,929 | 112,885 | 107,109 |
Amortization | (46,027) | (45,228) | (100,951) | (99,990) |
Ending Balance | $ 114,818 | $ 106,736 | $ 114,818 | $ 106,736 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes | $ 5,990,000 | $ 5,872,000 | $ 11,639,000 | $ 9,074,000 | |
Annual effective tax rate | 24.10% | 43% | 26% | 29.40% | |
Increase (decrease) deferred tax assets valuation allowance | $ 2,500,000 | ||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 863,300,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred tax assets: | ||
Unearned premiums | $ 23,519 | $ 18,507 |
Unearned commission | 7,958 | 7,964 |
Net operating loss | 1 | 436 |
Tax-related discount on loss reserve | 4,365 | 5,162 |
Stock-based compensation | 684 | 331 |
Accrued expenses | 905 | 1,677 |
Leases | 937 | 940 |
Unrealized losses | 11,506 | 11,655 |
Property and equipment | 314 | 0 |
Other | 277 | 473 |
Total deferred tax assets | 50,466 | 47,145 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 27,192 | 24,366 |
Prepaid expenses | 189 | 189 |
Property and equipment | 0 | 359 |
Note discount | 73 | 152 |
Basis in purchased investments | 7 | 8 |
Basis in purchased intangibles | 8,658 | 9,327 |
Other | 1,653 | 1,633 |
Total deferred tax liabilities | 37,772 | 36,034 |
Net deferred tax asset: | $ 12,694 | $ 11,111 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) reinsurer | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) reinstatement | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Number of reinstatements available | reinsurer | 2 | ||||||||
Unpaid losses and loss adjustment expenses | $ 822,271,000 | $ 817,859,000 | $ 822,271,000 | $ 817,859,000 | $ 822,271,000 | $ 845,955,000 | $ 843,687,000 | $ 980,992,000 | $ 1,131,807,000 |
Reinsurance payable | 504,291,000 | 504,291,000 | $ 504,291,000 | $ 159,823,000 | |||||
Reinsurance excess retention percentage | 67.50% | ||||||||
Ceded Premiums Written | 488,210,000 | $ 473,657,000 | 532,678,000 | $ 506,433,000 | |||||
Property Losses | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | $ 2,500,000 | ||||||||
Excess retention amount reinsured | 1,000,000 | ||||||||
Causality Losses | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 1,000,000 | ||||||||
Excess retention amount reinsured | 1,000,000 | ||||||||
Insurance Claims | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | 1,500,000 | 1,500,000 | 1,500,000 | ||||||
Facultative Reinsurance | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance, maximum coverage | 80,000,000 | ||||||||
NBIC | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Number of reinstatements available | reinstatement | 1 | ||||||||
NBIC | Insurance Claims | Commercial Residential Losses | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Unpaid losses and loss adjustment expenses | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
NBIC | 70% Reinsurance Contract | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate contract coverage limit | $ 15,000,000 | ||||||||
Excess retention amount reinsured | 25,000,000 | ||||||||
NBIC | 30% Reinsurance Contract | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Aggregate contract coverage limit | 20,000,000 | ||||||||
Excess retention amount reinsured | $ 20,000,000 | ||||||||
NBIC | 2023 -2024 Net Quota Share Reinsurance | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Net lines quota share occurrence limit | 20,000,000 | ||||||||
Percentage of renewed ceded net premium and losses | 41% | ||||||||
Maximum | Facultative Reinsurance | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance payable | 10,000,000 | 10,000,000 | 10,000,000 | ||||||
Maximum | NBIC | Facultative Reinsurance | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance payable | 3,500,000 | 3,500,000 | 3,500,000 | ||||||
Minimum | Facultative Reinsurance | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Facultative reinsurance purchase amount | $ 10,000,000 | ||||||||
FHCF | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsured risk percentage | 90% | ||||||||
2023 - 2024 Reinsurance Program | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Reinsurance purchase limit | 3,300,000,000 | $ 3,300,000,000 | 3,300,000,000 | ||||||
2023 - 2024 Reinsurance Program | Maximum | First Catastrophe | Osprey | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
First event retention for insurance company subsidiary | 34,000,000 | 34,000,000 | 34,000,000 | ||||||
2023 - 2024 Reinsurance Program | Maximum | First Catastrophe | NBIC | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 1,100,000,000 | ||||||||
First event retention for insurance company subsidiary | 31,800,000 | 31,800,000 | 31,800,000 | ||||||
2023 - 2024 Reinsurance Program | Maximum | First Catastrophe | Heritage P&C | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 1,300,000,000 | ||||||||
First event retention for insurance company subsidiary | 40,000,000 | 40,000,000 | 40,000,000 | ||||||
2023 - 2024 Reinsurance Program | Maximum | First Catastrophe | Zephyr | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Retention under program to provide reinsurance coverage | 750,000,000 | ||||||||
First event retention for insurance company subsidiary | 32,000,000 | 32,000,000 | 32,000,000 | ||||||
Ceded Premiums Written | 8,000,000 | ||||||||
2023 - 2024 Reinsurance Program | Maximum | First Catastrophe | Osprey And Zephyr | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
First event retention for insurance company subsidiary | 40,000,000 | 40,000,000 | 40,000,000 | ||||||
Property Per Risk Coverage | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage limit | 8,500,000 | ||||||||
Reinsurance payable | 25,500,000 | 25,500,000 | 25,500,000 | ||||||
Property Per Risk Coverage | NBIC | Commercial Residential Losses | |||||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||||
Coverage limit | 500,000 | ||||||||
Reinsurance payable | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Premium written: | ||||
Direct | $ 424,530 | $ 396,559 | $ 781,214 | $ 706,868 |
Ceded | (488,210) | (473,657) | (532,678) | (506,433) |
Net | (63,680) | (77,098) | 248,536 | 200,435 |
Premiums earned: | ||||
Direct | 350,073 | 330,015 | 691,462 | 647,037 |
Ceded | (159,757) | (153,211) | (321,720) | (304,204) |
Net premiums earned | 190,316 | 176,804 | 369,742 | 342,833 |
Loss and Loss Adjustment Expenses | ||||
Direct | 210,962 | 144,219 | 502,324 | 307,036 |
Ceded | (105,034) | (37,573) | (294,361) | (102,939) |
Net | $ 105,928 | $ 106,646 | $ 207,963 | $ 204,098 |
Reserve for Unpaid Losses - Sum
Reserve for Unpaid Losses - Summary of Reserve for Unpaid Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance, beginning of period | $ 843,687 | $ 980,992 | $ 845,955 | $ 1,131,807 |
Less: reinsurance recoverable on unpaid losses | 477,876 | 620,218 | 421,798 | 759,681 |
Net balance, beginning of period | 365,811 | 360,774 | 424,157 | 372,126 |
Incurred related to: | ||||
Current year | 97,240 | 109,371 | 192,612 | 208,285 |
Prior years | 8,688 | (2,725) | 15,351 | (4,187) |
Total incurred | 105,928 | 106,646 | 207,963 | 204,098 |
Paid related to: | ||||
Current year | 51,201 | 53,569 | 81,383 | 83,944 |
Prior years | 66,404 | 38,281 | 196,603 | 116,710 |
Total paid | 117,605 | 91,850 | 277,986 | 200,654 |
Net balance, end of period | 354,134 | 375,570 | 354,134 | 375,570 |
Plus: reinsurance recoverable on unpaid losses | 468,137 | 442,289 | 468,137 | 442,289 |
Balance, end of period | $ 822,271 | $ 817,859 | $ 822,271 | $ 817,859 |
Reserve for Unpaid Losses - Add
Reserve for Unpaid Losses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | ||||||||
Unpaid losses and loss adjustment expenses | $ 354,134 | $ 375,570 | $ 354,134 | $ 375,570 | $ 365,811 | $ 424,157 | $ 360,774 | $ 372,126 |
Unpaid losses and loss adjustment expenses attributable to IBNR net of reinsurance recoverable | $ 240,600 | $ 240,600 | ||||||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 67.90% | 67.90% | ||||||
Prior year loss related to development incurred | $ 8,700 | $ 2,700 | $ 15,400 | $ 4,200 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2017 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Sep. 29, 2023 | Jan. 31, 2022 | Dec. 31, 2018 | Sep. 30, 2017 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||||
Unamortized issuance and debt discount costs | $ 242,700 | |||||||||
Long-term debt, net | $ 120,780,000 | $ 120,780,000 | $ 119,732,000 | |||||||
Federal Home Loan Bank Of Atlanta | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.109% | |||||||||
Interest paid | 498,828,000 | $ 300,325,000 | ||||||||
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. | 1,500,000 | 1,500,000 | $ 1,400,000 | |||||||
Estimated fair value of collateral with FHLB | 23,600,000 | 23,600,000 | ||||||||
Federal Home Loan Bank Boston | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | 177,197 | $ 177,197 | ||||||||
Federal Home Loan Bank Des Moines | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | 58,809,000 | 117,103,000 | ||||||||
FHLB advance Interest rate | 4.23% | |||||||||
Cash loan received under advance from FHLB | $ 5,500,000 | |||||||||
Required fair value of reinvestment in FHLB common stock. | 295,500,000 | 295,500,000 | $ 133,200,000 | |||||||
Estimated fair value of collateral with FHLB | 8,000,000 | 8,000,000 | ||||||||
Revolving credit facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 50,000,000 | 50,000,000 | ||||||||
Outstanding borrowing capacity amount | 10,000,000 | 10,000,000 | ||||||||
Line of credit facility, periodic payment, interest | 413,668 | 332,106 | ||||||||
Line of credit facility, commitment fee amount | 66,535 | |||||||||
Convertible Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 136,800,000 | $ 136,800,000 | ||||||||
Fixed interest rate | 5.875% | |||||||||
Long-term debt, net | 885,000 | 885,000 | ||||||||
Interest paid | 25,115,000 | 26,000,000 | ||||||||
Convertible Senior Notes | Subsidiaries Member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase of convertible notes | $ 21,100,000 | $ 21,100,000 | ||||||||
Convertible debt | Parent company member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchase of convertible notes | $ 11,700,000 | |||||||||
Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||
Senior Secured Credit Facility | Seventh Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||||||
Senior Secured Credit Facility | Seventh Amendment | Federal funds effective swap rate member | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||
Senior Secured Credit Facility | Term loan facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest paid | $ 4,800,000 | 3,400,000 | ||||||||
Term loan, Quarterly principal payments | $ 4,800,000 | 3,300,000 | ||||||||
Effective interest rate | 8.171% | 8.171% | ||||||||
Senior Secured Credit Facility | Term loan facility | Seventh Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 74,900,000 | $ 74,900,000 | ||||||||
Notes maturity period | 5 years | |||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | ||||||||
Senior Secured Credit Facility | Term loan facility | Seventh Amendment | Term Loan Payable Prior to July 29, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | 1,900,000 | |||||||||
Senior Secured Credit Facility | Term loan facility | Seventh Amendment | Term Loan Payable in December 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | 875,000 | |||||||||
Senior Secured Credit Facility | Term loan facility | Seventh Amendment | Term Loan Payable After December 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan, Quarterly principal payments | $ 2,400,000 | |||||||||
Senior Secured Credit Facility | Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Effective interest rate | 8.179% | 8.179% | ||||||||
Senior Secured Credit Facility | Revolving credit facility | Seventh Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 10,000,000 | $ 10,000,000 | ||||||||
Notes maturity period | 5 years | |||||||||
Maximum borrowing capacity | 50,000,000 | $ 50,000,000 | ||||||||
Senior Secured Credit Facility | Swingline Loan | Seventh Amendment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 25,000,000 | 25,000,000 | ||||||||
Swingline Loan | Revolving credit facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 25,000,000 | 25,000,000 | ||||||||
Collateral Financial Arrangement | Skye Lane Properties LLC | Mortgage loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 12,700,000 | |||||||||
Fixed interest rate | 4.95% | |||||||||
Payment of principal and interest | $ 548,131,000 | $ 518,746,000 | ||||||||
Collateral Financial Arrangement | Skye Lane Properties LLC | Mortgage loan | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.95% | |||||||||
Collateral Financial Arrangement | Skye Lane Properties LLC | Mortgage loan | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 7.42% | |||||||||
Collateral Financial Arrangement | Skye Lane Properties LLC | 5-year Treasury Security | Mortgage loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 3.10% |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Long Term Debt and Credit Facilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal amount | $ 121,349 | $ 120,729 |
Deferred finance costs | 569 | 997 |
Total long-term debt | 120,780 | 119,732 |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Principal amount | 74,875 | 79,625 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Principal amount | 10,000 | 10,000 |
Convertible debt | ||
Debt Instrument [Line Items] | ||
Principal amount | 885 | 885 |
FHLB loan agreements | ||
Debt Instrument [Line Items] | ||
Principal amount | 24,700 | 19,200 |
Mortgage loan | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 10,889 | $ 11,019 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 remaining | $ 4,975 | |
2025 | 29,074 | |
2026 | 71,018 | |
2027 | 9,897 | |
2028 | 0 | |
Thereafter | 6,385 | |
Total | $ 121,349 | $ 120,729 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 33,602 | $ 33,627 |
Accounts payable and other payables | 15,058 | 16,185 |
Taxes, licenses and fees | 4,908 | 0 |
Accrued interest and issuance costs | 261 | 325 |
Other liabilities | 213 | 329 |
Premium tax | 0 | 1,486 |
Commission payables | 17,682 | 17,714 |
Total other liabilities | $ 71,724 | $ 69,666 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Heritage P&C | ||
Statutory Accounting Practices [Line Items] | ||
Minimum required amount of capital and surplus maintained by the insurance subsidiary | $ 15,000 | |
Statutory capital and surplus requirements, percentage | 10% | |
Zephyr | ||
Statutory Accounting Practices [Line Items] | ||
Deposits held | $ 750 | |
NBIC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 3,000 | |
Heritage P&C, NBIC, and Zephyr | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 253,000 | $ 259,600 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party | Comegys Insurance Agency, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Agency commission | $ 39,280 | $ 33,160 | $ 80,088 | $ 69,901 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution for participating employees | $ 368,500 | $ 330,470 | $ 821,700 | $ 729,670 |
Medical premium cost | $ 1,500,000 | $ 1,500,000 | $ 2,700,000 | $ 3,000,000 |
Defined Contribution Plan, Tranche One | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 3% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||
Defined Contribution Plan, Tranche Two | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 2% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | |||
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 4% |
Equity - Additional Information
Equity - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) vote shares | Dec. 31, 2023 USD ($) shares | Mar. 11, 2024 USD ($) | Dec. 15, 2022 USD ($) | |
Class Of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | |||
Common stock, shares outstanding (in shares) | 30,684,198 | 30,218,938 | ||
Treasury stock, shares (in shares) | 12,231,674 | 12,231,674 | ||
Non-vested beginning balance (in shares) | 1,161,811 | |||
Additional paid-in capital | $ | $ 361,789 | $ 360,310 | ||
Common stock voting rights | vote | 1 | |||
Stock repurchase program, authorized amount | $ | $ 10,000 | |||
New Share Repurchase Plan | ||||
Class Of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ | $ 10,000 | $ 10,000 | ||
Treasury shares repurchased, shares | 0 | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 05, 2024 | Feb. 26, 2024 | Jul. 11, 2023 | Aug. 31, 2023 | Jul. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 07, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 833,000 | $ 403,000 | $ 1,400,000 | $ 797,980 | |||||||
Unrecognized expense related to non-vested stock | 1,500,000 | $ 1,500,000 | |||||||||
Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vested (in shares) | 77,296 | ||||||||||
Restricted stock vested and released (in shares) | 86,954 | 111,954 | |||||||||
Restricted stock, shares issued net of shares for tax withholdings (in shares) | 4,200 | ||||||||||
Restricted stock, value, shares issued net of tax withholdings | $ 7,560 | ||||||||||
Canceled and surrendered, number of shares (in shares) | 1,482 | ||||||||||
Restricted Stock | Employee and Non Employee Director | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Restricted stock vested and released (in shares) | 77,296 | ||||||||||
Restricted Stock | Maximum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Restricted Stock | Minimum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
Performance Based Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Unrecognized expense related to non-vested stock | 3,200,000 | $ 3,200,000 | |||||||||
Time Based Unvested Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Unrecognized expense related to non-vested stock | $ 2,000,000 | $ 2,000,000 | |||||||||
Omnibus Incentive Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance (in shares) | 2,125,000 | ||||||||||
Omnibus Incentive Plan | Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 39,312 | 77,296 | 63,744 | 63,744 | |||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 8.14 | $ 5.02 | |||||||||
Vested (in shares) | 77,296 | ||||||||||
Omnibus Incentive Plan | Time Based Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 163,640 | 351,716 | |||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 7.02 | $ 4.08 | |||||||||
Omnibus Incentive Plan | Time Based Restricted Stock | Maximum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Vesting period | 3 years | 3 years | |||||||||
Omnibus Incentive Plan | Performance Based Restricted Stock | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 253,918 | 857,843 | |||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 7.02 | $ 4.08 | |||||||||
2023 Plan | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||
Shares available for grant | 854,857 | 854,857 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of shares | |
Non-vested beginning balance (in shares) | 1,161,811 |
Non-vested ending balance (in shares) | 1,549,775 |
Restricted Stock | |
Number of shares | |
Non-vested beginning balance (in shares) | 1,161,811 |
Vested (in shares) | (77,296) |
Canceled and surrendered (in shares) | 0 |
Non-vested ending balance (in shares) | 1,549,775 |
Weighted-Average Grant-Date Fair Value per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 4.25 |
Vested (in dollars per share) | $ / shares | 4.14 |
Canceled and surrendered (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 6.07 |
Restricted Stock | Performance Based Restricted Stock | |
Number of shares | |
Granted (in shares) | 253,918 |
Weighted-Average Grant-Date Fair Value per Share | |
Granted (in dollars per share) | $ / shares | $ 7.12 |
Restricted Stock | Time Based Restricted Stock | |
Number of shares | |
Granted (in shares) | 211,342 |
Weighted-Average Grant-Date Fair Value per Share | |
Granted (in dollars per share) | $ / shares | $ 7.02 |
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 | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 1,549,775 | 1,161,811 |
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 1,549,775 | 1,161,811 |
March 16, 2022 | Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 37,947 | |
Share value at grant date per share (in dollars per share) | $ 6.72 | |
Remaining Restriction Period (Years) | 7 months 6 days | |
July 11, 2023 | Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 1,046,568 | |
Share value at grant date per share (in dollars per share) | $ 4.08 | |
Remaining Restriction Period (Years) | 1 year 3 months 18 days | |
February 26, 2024 | Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 417,558 | |
Share value at grant date per share (in dollars per share) | $ 7.02 | |
Remaining Restriction Period (Years) | 2 years 6 months | |
March 11, 2024 | Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 8,390 | |
Share value at grant date per share (in dollars per share) | $ 7.15 | |
Remaining Restriction Period (Years) | 7 months 6 days | |
June 6, 2024 | Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares unvested (in shares) | 39,312 | |
Share value at grant date per share (in dollars per share) | $ 8.14 | |
Remaining Restriction Period (Years) | 1 year |