Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 14, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Entity File Number | 001-11252 | |
Entity Registrant Name | Hallmark Financial Services, Inc. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 87-0447375 | |
Entity Address, Address Line One | 5420 Lyndon B. Johnson Freeway, Suite 1100 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 817 | |
Local Phone Number | 348-1600 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | HALL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,818,482 | |
Entity Central Index Key | 0000819913 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Debt securities, available-for-sale, at fair value (amortized cost; $299,544 in 2023 and $434,119 in 2022; allowance for expected credit losses of $0 in 2023) | $ 295,761 | $ 426,597 |
Equity securities (cost; $24,284 in 2023 and $30,058 in 2022) | 22,763 | 28,199 |
Total investments | 318,524 | 454,796 |
Cash and cash equivalents | 150,528 | 59,133 |
Restricted cash | 14,781 | 29,486 |
Ceded unearned premiums | 86,661 | 237,086 |
Premiums receivable | 49,506 | 78,355 |
Accounts receivable | 1,076 | 10,859 |
Receivable from reinsurer | 58,882 | |
Receivable for securities | 476 | 945 |
Reinsurance recoverable (net of allowance for expected credit losses of $200 in 2023) | 593,635 | 578,424 |
Deferred policy acquisition costs | 9,858 | 8 |
Federal income tax recoverable | 2,668 | |
Prepaid pension assets | 239 | 163 |
Prepaid expenses | 1,878 | 1,508 |
Other assets | 22,186 | 24,389 |
Total assets | 1,249,348 | 1,536,702 |
Liabilities: | ||
Senior unsecured notes due 2029 (less unamortized debt issuance cost of $599 in 2023 and $648 in 2022) | 49,401 | 49,352 |
Subordinated debt securities (less unamortized debt issuance cost of $666 in 2023 and $691 in 2022) | 56,036 | 56,011 |
Reserves for unpaid losses and loss adjustment expenses | 784,846 | 880,869 |
Unearned premiums | 156,394 | 292,691 |
Reinsurance payable | 111,176 | 128,950 |
Federal income tax payable | 464 | |
Accounts payable and other accrued expenses | 78,646 | 68,535 |
Total liabilities | 1,236,963 | 1,476,408 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity: | ||
Common stock, $1.00 par value, authorized 3,333,333 shares; issued 2,087,283 shares in 2023 and 2022 | 2,087 | 2,087 |
Additional paid-in capital | 124,879 | 124,740 |
Retained (deficit) earnings | (84,458) | (33,407) |
Accumulated other comprehensive loss | (5,489) | (8,492) |
Treasury stock (268,801 shares in 2023 and 2022), at cost | (24,634) | (24,634) |
Total stockholders' equity | 12,385 | 60,294 |
Total liabilities and stockholders' equity | $ 1,249,348 | $ 1,536,702 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt securities, available-for-sale, amortized cost | $ 299,544,000 | $ 434,119,000 |
Debt securities, available-for-sale, allowance for expected credit losses | 0 | |
Equity securities, available for sale, cost | 24,284,000 | $ 30,058,000 |
Reinsurance recoverable, allowance for credit loss | $ 200,000 | |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized shares | 3,333,333 | 3,333,333 |
Common stock, issued shares | 2,087,283 | 2,087,283 |
Treasury stock, shares | 268,801 | 268,801 |
Senior unsecured notes due 2029 [Member] | ||
Unamortized debt issuance cost | $ 599,000 | $ 648,000 |
Subordinated Debt [Member] | ||
Unamortized debt issuance cost | $ 666,000 | $ 691,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Operations [Abstract] | ||||
Gross premiums written | $ 54,511 | $ 56,004 | $ 111,683 | $ 115,337 |
Ceded premiums written | (10,636) | (18,566) | (25,427) | (36,630) |
Net premiums written | 43,875 | 37,438 | 86,256 | 78,707 |
Change in unearned premiums | (7,028) | (401) | (14,129) | (2,355) |
Net premiums earned | 36,847 | 37,037 | 72,127 | 76,352 |
Investment income, net of expenses | 4,019 | 3,120 | 8,361 | 4,979 |
Investment gains (losses), net | 248 | (3,994) | (392) | (3,943) |
Finance charges | 732 | 980 | 1,511 | 1,963 |
Other income | 64 | 14 | 134 | 29 |
Total revenues | 41,910 | 37,157 | 81,741 | 79,380 |
Losses and loss adjustment expenses | 36,752 | 72,646 | 66,516 | 112,028 |
Operating expenses | 21,138 | 17,723 | 69,087 | 34,150 |
Interest expense | 1,938 | 1,366 | 3,836 | 2,630 |
Amortization of intangible assets | 7 | 14 | ||
Total expenses | 59,828 | 91,742 | 139,439 | 148,822 |
Loss from continuing operations before tax | (17,918) | (54,585) | (57,698) | (69,442) |
Income tax (benefit) expense from continuing operations | (133) | 12,450 | (667) | 9,270 |
Net loss from continuing operations | (17,785) | (67,035) | (57,031) | (78,712) |
Discontinued Operations: | ||||
Total pretax income (loss) from discontinued operations | 5,876 | (2,965) | 5,980 | 7,773 |
Income tax expense (benefit) from discontinued operations | (583) | 1,697 | ||
Net income (loss) from discontinued operations | 5,876 | (2,382) | 5,980 | 6,076 |
Net loss | $ (11,909) | $ (69,417) | $ (51,051) | $ (72,636) |
Net (loss) income per share basic: | ||||
Net loss from continuing operations | $ (9.78) | $ (36.85) | $ (31.37) | $ (43.30) |
Net income (loss) from discontinued operations | 3.23 | (1.31) | 3.29 | 3.35 |
Basic net loss per share | (6.55) | (38.16) | (28.08) | (39.95) |
Net (loss) income per share diluted: | ||||
Net loss from continuing operations | (9.78) | (36.85) | (31.37) | (43.30) |
Net income (loss) from discontinued operations | 3.23 | (1.31) | 3.29 | 3.35 |
Diluted net loss per share | $ (6.55) | $ (38.16) | $ (28.08) | $ (39.95) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Consolidated Statements of Comprehensive (Loss) Income [Abstract] | ||||
Net (loss) income | $ (11,909) | $ (69,417) | $ (51,051) | $ (72,636) |
Other comprehensive (loss) income: | ||||
Change in net actuarial loss decrease (increase) | 31 | 27 | 62 | 54 |
Tax effect on change in net actuarial (gain) loss | (6) | (6) | (13) | (12) |
Unrealized holding gains (losses) arising during the period | (467) | (5,745) | 2,396 | (8,826) |
Tax effect on unrealized holding (losses) gains arising during the period | 98 | 1,206 | (503) | 1,853 |
Reclassification adjustment for gains included in net loss | 1,343 | 123 | 1,343 | (23) |
Tax effect on reclassification adjustment for gains included in net loss | (282) | (26) | (282) | 5 |
Other comprehensive (loss) income, net of tax | 717 | (4,421) | 3,003 | (6,949) |
Comprehensive (loss) | $ (11,192) | $ (73,838) | $ (48,048) | $ (79,585) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2021 | $ 2,087 | $ 124,514 | $ 74,703 | $ (1,035) | $ (24,748) | |
Equity based compensation | 436 | |||||
Shares issued under employee benefit plans | (114) | 114 | ||||
Net loss | (72,636) | $ (72,636) | ||||
Additional minimum pension liability, net of tax | 42 | |||||
Unrealized holding gains (losses) arising during period, net of tax | (6,973) | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (18) | |||||
Ending balance at Jun. 30, 2022 | 2,087 | 124,836 | 2,067 | (7,984) | (24,634) | 96,372 |
Balance at Mar. 31, 2022 | 2,087 | 124,411 | 71,484 | (3,563) | (24,583) | |
Equity based compensation | 374 | |||||
Shares issued under employee benefit plans | 51 | (51) | ||||
Net loss | (69,417) | (69,417) | ||||
Additional minimum pension liability, net of tax | 21 | |||||
Unrealized holding gains (losses) arising during period, net of tax | (4,539) | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | 97 | |||||
Ending balance at Jun. 30, 2022 | 2,087 | 124,836 | 2,067 | (7,984) | (24,634) | 96,372 |
Balance at Dec. 31, 2022 | 2,087 | 124,740 | (33,407) | (8,492) | (24,634) | 60,294 |
Equity based compensation | 139 | |||||
Net loss | (51,051) | (51,051) | ||||
Additional minimum pension liability, net of tax | 49 | |||||
Unrealized holding gains (losses) arising during period, net of tax | 1,893 | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | 1,061 | |||||
Ending balance at Jun. 30, 2023 | 2,087 | 124,879 | (84,458) | (5,489) | (24,634) | 12,385 |
Balance at Mar. 31, 2023 | 2,087 | 124,837 | (72,549) | (6,206) | (24,634) | |
Equity based compensation | 42 | |||||
Net loss | (11,909) | (11,909) | ||||
Additional minimum pension liability, net of tax | 25 | |||||
Unrealized holding gains (losses) arising during period, net of tax | (369) | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | 1,061 | |||||
Ending balance at Jun. 30, 2023 | $ 2,087 | $ 124,879 | $ (84,458) | $ (5,489) | $ (24,634) | $ 12,385 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (51,051) | $ (72,636) |
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||
Income from discontinued operations, net of tax | (5,980) | (6,076) |
Depreciation and amortization expense | 819 | 910 |
Deferred federal income tax (benefit) expense | (798) | 10,754 |
Investment losses (gains), net | 392 | 3,943 |
Share-based payments expense | 139 | 436 |
Change in ceded unearned premiums | 150,425 | (2,231) |
Change in premiums receivable | 28,849 | (9,373) |
Change in accounts receivable | 9,783 | 2,501 |
Change in receivable from reinsurer | 58,882 | (38,645) |
Change in deferred policy acquisition costs | (9,850) | 1,493 |
Change in reserves for losses and loss adjustment expenses | (96,023) | 31,526 |
Change in unearned premiums | (136,297) | 4,587 |
Change in reinsurance recoverable | (15,211) | 27,007 |
Change in reinsurance balances | (17,774) | (53,442) |
Change in federal income tax recoverable | 3,132 | 15,311 |
Change in all other liabilities | 10,110 | 4,590 |
Change in all other assets | 1,505 | (2,727) |
Net cash used in operating activities- continuing operations | (68,948) | (82,072) |
Net cash provided by operating activities- discontinued operations | 5,980 | 3,766 |
Net cash used in operating activities | (62,968) | (78,306) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (649) | (1,845) |
Purchases of investment securities | (15,174) | (270,217) |
Maturities, sales and redemptions of investment securities | 155,481 | 110,917 |
Net cash provided by (used in) investing activities | 139,658 | (161,145) |
Increase (decrease) in cash and cash equivalents and restricted cash | 76,690 | (239,451) |
Cash and cash equivalents and restricted cash at beginning of period | 88,619 | 356,677 |
Cash and cash equivalents and restricted cash at end of period | $ 165,309 | $ 117,226 |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
General [Abstract] | |
General | 1. General Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, the “Company”, “we”, “us” or “our”) is an insurance holding company that, through its subsidiaries, engages in the sale of property/casualty insurance products to businesses and individuals. Our business involves marketing, distributing, underwriting and servicing our insurance products, as well as providing other insurance related services. We market, distribute, underwrite and service our property/casualty insurance products primarily through business units organized by products and distribution channels. Our business units are supported by our insurance company subsidiaries. Our Commercial Accounts business unit offers package and monoline property/casualty and, until exited in 2016, occupational accident insurance products and services. Our Aviation business unit offers general aviation insurance. Our former Workers Compensation operating unit specialized in small and middle market workers compensation business until discontinued during 2015. Our Specialty Personal Lines business unit offers non-standard personal automobile and renters insurance products and services. Our Specialty Runoff business unit consists of the senior care facilities professional liability insurance and services previously reported as part of our Professional Liability business unit; the contract binding line of the primary automobile insurance products and services previously reported as part of our Commercial Auto business unit; and the satellite launch property/casualty insurance products and services, as well as certain specialty programs, previously reported as part of our Aerospace & Programs business unit. The lines of business comprising the Specialty Runoff business unit were discontinued at various times during 2020 through 2022 and are presently in runoff. These business units are segregated into three reportable industry segments for financial accounting purposes. The Commercial Lines Segment consists of the Commercial Accounts business unit, the Aviation business unit, and the runoff from our former Workers Compensation operating unit. The Personal Segment consists solely of our Specialty Personal Lines business unit and the Runoff Segment consists solely of the Specialty Runoff business unit. The Runoff Segment was previously reported as part of our former Specialty Commercial Segment. Our discontinued operations consist of our Commercial Auto business unit (excluding the exited contract binding line) which offered primary and excess commercial vehicle insurance products and services; our E&S Casualty business unit which offered primary and excess liability, excess public entity liability, E&S package and garage liability insurance products and services; our E&S Property business unit which offered primary and excess commercial property insurance for both catastrophe and non-catastrophe exposures; and our Professional Liability business unit (excluding the exited senior care facilities line) which offered healthcare and financial lines professional liability insurance products and services primarily for businesses, medical professionals and medical facilities. Our Discontinued Operations business units, which were sold in October 2022, were previously reported as part of our former Specialty Commercial Segment. (See, Note 3.) Our insurance company subsidiaries supporting these business units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company (“HCM”), Hallmark National Insurance Company (“HNIC”) and Texas Builders Insurance Company (“TBIC”). |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation Our unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022 included in our Annual Report on Form 10-K filed with the SEC. The interim financial data as of June 30, 2023 and 2022 is unaudited. However, in the opinion of management, the interim financial data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for the periods ended June 30, 2023 are not necessarily indicative of the operating results to be expected for the full year. Subsequent Event Due to the Maui, Hawaii wildfires on August 9, 2023, we preliminarily estimate our net loss exposure to be $7.5 million plus additional cost in the form of reinstatement premiums to restore any necessary reinsurance layers. The net loss and any additional cost incurred will be recognized in our third quarter 2023 financial statements. Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates. Fair Value of Financial Instruments Fair value estimates are made at a point in time based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates. Cash and Cash Equivalents Restricted Cash Senior Unsecured Notes Due 2029 Subordinated Debt Securities For accounts receivable, reinsurance balances, premiums receivable, federal income tax recoverable and other assets, the carrying amounts are held at net realizable value which approximates fair value because of the short maturity of such financial instruments. Variable Interest Entities On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively the “Trusts”) and have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. Income Taxes We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. We account for income taxes under the asset and liability method, which requires the recognition of deferred taxes for temporary differences between the financial statement and tax return basis of assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which we have already recorded the tax benefit in our income statement. Deferred tax liabilities generally represent tax expense recognized in our financial statements for which payment has been deferred or expenditures for which we have already taken a deduction in our tax return but have not yet been recognized in our financial statements. Under GAAP, we are required to evaluate the recoverability of our deferred tax assets and establish a valuation allowance if necessary to reduce our deferred tax assets to an amount that is more likely than not to be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. We establish or adjust valuation allowances for deferred tax assets when we estimate that it is more likely than not that future taxable income will be insufficient to realize the value of the deferred tax assets. We evaluate all significant available positive and negative evidence as part of our analysis. Negative evidence includes the existence of losses in recent years. Positive evidence includes the forecast of future taxable income and tax-planning strategies that would result in the realization of deferred tax assets. The underlying assumptions we use in forecasting future taxable income require significant judgment and take into account our recent performance. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible or creditable. If actual experience differs from these estimates and assumptions, the recognized deferred tax asset value may not be fully realized, resulting in an increase to income tax expense in our results of operations. As of June 30, 2023, the Company maintained a full valuation allowance of $41.4 million against its deferred tax assets because we determined that it is more likely than not that these assets will not be recoverable. If, in the future, we determine we can support the recoverability of all or a portion of the deferred tax assets under the guidance, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction of income tax expense and result in an increase in equity. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at June 30, 2023. Reverse Stock Split On November 29, 2022, we filed a Certificate of Change to our Articles of Incorporation to affect a reverse split of our issued and outstanding common stock on a one-for-ten one-for-ten required in accordance with U.S. GAAP, all common share and per share data are retrospectively restated to give effect of the Reverse Stock Split for all periods presented herein. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease potential accounting impact associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 could be adopted as of March 12, 2020 and are effective through December 31, 2024. We do not currently have any contracts that have been changed to a new reference rate and do not expect the adoption of this guidance to have a material effect on the Company’s results of operations, financial position or liquidity. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 replaces the existing incurred loss impairment model with an expected credit loss impairment model. The expected credit loss impairment model requires the entity to recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected. The income statement includes the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that occur during the period. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP, although ASU 2016-13 requires that they be presented as an allowance rather than as a write-down of the amortized cost. In situations where the estimate of credit loss on an available-for-sale debt security declines, we are able to record a reversal of the allowance to income in the current period, which was prohibited prior to the adoption of ASU 2016-13. The expected loss approach requires us to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The standard also requires expanded disclosures related to credit losses and credit quality indicators. As a smaller reporting company, ASU 2016-13 is effective for fiscal years of the Company beginning after December 15, 2022, including interim periods within those fiscal years and accordingly we adopted ASU 2016-13 effective with our March 31, 2023 interim reporting. ASU 2016-13 requires a modified retrospective transition method and early adoption is permitted. Application of the standard to our applicable assets, including debt securities, cash, premium receivable, accounts receivable, reinsurance recoverables and prepaid expenses, did not have a material impact on our financial results. After consideration of risk and qualitative factors for each asset type in scope, an allowance for expected credit losses of $200 thousand was established in regards to reinsurance recoverables. See “Note 5. Investments” for a discussion regarding expected credit loss on our debt security assets. For determination of the reinsurance recoverables expected credit loss allowance, our Company relies on external ratings of credit worthiness from A.M. Best and collectability of recorded amounts considering letters of credit pledged by reinsurance partners. The external rating is utilized to place our reinsurance recoverables into appropriate risk layers of expected loss considering duration and historical loss patterns. The ratings at June 30, 2023 of our reinsurance recoverables, not offset by our liabilities for amounts owed to reinsurers and pledged letters of credit, are 95% rated A- or better . |
Discontinued Operations Classif
Discontinued Operations Classification | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations Classification [Abstract] | |
Discontinued Operations Classification | 3. Discontinued Operations Classification On October 7, 2022 the Company consummated the sale of substantially all of its excess and surplus lines operations to Core Specialty Insurance Holdings, Inc. (“Core Specialty”) for $40.0 million cash consideration, plus an estimated $19.9 million consideration for the acquisition costs associated with certain net unearned premium reserves. The Company retained the related loss and loss adjustment expenses (“LAE”) reserves of its excess and surplus lines businesses and will experience future cash outflows and change in estimates for these reserves until all claims have been settled. The transaction was comprised of substantially all of nine business units within the Company’s former Specialty Commercial Segment, certain related assets and liabilities, and the immediate transition to Core Specialty of approximately 200 employees who produce and support these lines of businesses. This transaction met the criteria for discontinued operations accounting. As a result, the results of operations for the affected excess and surplus lines are included in discontinued operations in our Consolidated Statement of Operations for all periods shown. The following table summarizes income (loss) from discontinued operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gross premiums written $ (75,225) $ 126,062 $ 29,229 $ 217,688 Ceded premiums written 75,139 (79,199) (29,546) (133,773) Net premiums written (86) 46,863 (317) 83,915 Change in unearned premiums - (3,788) - 2,322 Net premiums earned (86) 43,075 (317) 86,237 Commissions and fees - 282 - 569 Other income 2,199 - 4,808 - Total revenues 2,113 43,357 4,491 86,806 Losses and loss adjustment expenses (4,641) 39,287 (4,987) 63,929 Operating expenses 878 6,916 3,498 14,866 Amortization of intangible assets - 119 - 238 Total expenses (3,763) 46,322 (1,489) 79,033 Income (loss) from discontinued operations before tax $ 5,876 $ (2,965) $ 5,980 $ 7,773 Income tax expense from discontinued operations - (583) - 1,697 Net income (loss) from discontinued operations $ 5,876 $ (2,382) $ 5,980 $ 6,076 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value [Abstract] | |
Fair Value | 4. Fair Value ASC 820 defines fair value, establishes a consistent framework for measuring fair value and requires disclosure about fair value measurements. ASC 820, among other things, requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, ASC 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market, which were previously applied to large holdings of publicly traded equity securities. We determine the fair value of our financial instruments based on the fair value hierarchy established in ASC 820. In accordance with ASC 820, we utilize the following fair value hierarchy: ● Level 1: quoted prices in active markets for identical assets; ● Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, inputs of identical assets for less active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and ● Level 3: inputs to the valuation methodology that are unobservable for the asset or liability. This hierarchy requires the use of observable market data when available. Under ASC 820, we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy described above. Fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other factors as appropriate. These estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability. Where quoted prices are available on active exchanges for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include equity securities. Level 2 investment securities include corporate bonds, collateralized corporate bank loans, municipal bonds, U.S. Treasury securities, other obligations of the U.S. Government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments. We use third-party pricing services to determine fair values for each Level 2 investment security in all asset classes. Since quoted prices in active markets for identical assets are not available, these prices are determined using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other things. We have reviewed the processes used by the pricing services and have determined that they result in fair values consistent with the requirements of ASC 820 for Level 2 investment securities. We have not adjusted any prices received from third-party pricing sources. There were no transfers between Level 1 and Level 2 securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Level 3 investments are valued based on the best available data in order to approximate fair value. This data may be internally developed and consider risk premiums that a market participant would require. Investment securities classified within Level 3 include other less liquid investment securities. The following table presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in thousands): As of June 30, 2023 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 22,435 $ — $ 22,435 Corporate bonds — 191,345 — 191,345 Corporate bank loans — 49,503 — 49,503 Municipal bonds — 31,240 — 31,240 Mortgage-backed — 1,238 — 1,238 Total debt securities — 295,761 — 295,761 Total equity securities 22,763 — — 22,763 Total investments $ 22,763 $ 295,761 $ — $ 318,524 As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 79,978 $ — $ 79,978 Corporate bonds — 235,044 — 235,044 Corporate bank loans — 75,183 — 75,183 Municipal bonds — 35,018 — 35,018 Mortgage-backed — 1,374 — 1,374 Total debt securities — 426,597 — 426,597 Total equity securities 28,199 — — 28,199 Total investments $ 28,199 $ 426,597 $ — $ 454,796 There were no investments classified as Level 3 as of June 30, 2023 and December 31, 2022. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Investments | 5. Investments The amortized cost/carrying value and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Cost/Amortized Unrealized Unrealized Cost Gains Losses Fair Value As of June 30, 2023 U.S. Treasury securities and obligations of U.S. Government $ 22,460 $ 193 $ (218) $ 22,435 Corporate bonds 194,504 416 (3,575) 191,345 Corporate bank loans 49,749 47 (293) 49,503 Municipal bonds 31,378 220 (358) 31,240 Mortgage-backed 1,453 6 (221) 1,238 Total debt securities 299,544 882 (4,665) 295,761 Total equity securities 24,284 3,180 (4,701) 22,763 Total investments $ 323,828 $ 4,062 $ (9,366) $ 318,524 As of December 31, 2022 U.S. Treasury securities and obligations of U.S. Government $ 80,616 $ 9 $ (647) $ 79,978 Corporate bonds 240,185 625 (5,766) 235,044 Corporate bank loans 76,418 6 (1,241) 75,183 Municipal bonds 35,390 51 (423) 35,018 Mortgage-backed 1,510 6 (142) 1,374 Total debt securities 434,119 697 (8,219) 426,597 Total equity securities 30,058 3,981 (5,840) 28,199 Total investments $ 464,177 $ 4,678 $ (14,059) $ 454,796 As of June 30, 2023, the Company had investments in 82 issuers that represented more than 10% of stockholders’ equity. Of the investments in the 82 issuers, 94% was in debt securities with the remaining amount in equity securities. Of the debt securities invested in the 82 issuers, 86% was considered investment grade. Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ (22) $ — Corporate bonds (45) 1 (1,162) 13 Corporate bank loans (64) 21 (155) 26 Municipal bonds — (7) (4) (7) Mortgage-backed — (9) — (9) Equity securities (11) 1,011 613 1,140 (Loss) Gain on investments (120) 1,017 (730) 1,163 Unrealized gains (losses) on equity securities 368 (5,011) 338 (5,106) Investment gains (losses), net $ 248 $ (3,994) $ (392) $ (3,943) We realized gross gains on investments of $0.8 million and $1.0 million during the three months ended June 30, 2023 and 2022, respectively, and $1.7 million and $1.2 million during the six months ended June 30, 2023 and 2022, respectively. We realized gross losses on investments of $0.9 million and $24 thousand for the three months ended June 30, 2023 and 2022, respectively, and $2.4 million and $31 thousand during the six months ended June 30, 2023 and 2022, respectively. We recorded proceeds from the sale of investment securities of $8.1 million and $4.0 million during the three months ended June 30, 2023 and 2022, respectively, and $58.5 million and $4.5 million during the six months ended June 30, 2023 and 2022, respectively. Realized investment gains and losses are recognized in operations on the first in-first out method. The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of June 30, 2023 and December 31, 2022 (in thousands): As of June 30, 2023 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ — $ — $ 22,231 $ (218) $ 22,231 $ (218) Corporate bonds 12,603 (211) 173,042 (3,364) 185,645 (3,575) Corporate bank loans 6,991 (32) 27,580 (261) 34,571 (293) Municipal bonds 4,430 (52) 6,288 (306) 10,718 (358) Mortgage-backed 40 (2) 1,185 (219) 1,225 (221) Total debt securities 24,064 (297) 230,326 (4,368) 254,390 (4,665) Total equity securities 2,706 (78) 7,012 (4,623) 9,718 (4,701) Total investments $ 26,770 $ (375) $ 237,338 $ (8,991) $ 264,108 $ (9,366) As of December 31, 2022 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 17,543 $ (67) $ 37,622 $ (580) $ 55,165 $ (647) Corporate bonds 232,722 (5,764) 99 (2) 232,821 (5,766) Corporate bank loans 37,339 (678) 36,107 (563) 73,446 (1,241) Municipal bonds 10,293 (383) 2,275 (40) 12,568 (423) Mortgage-backed 1,348 (136) 7 (6) 1,355 (142) Total debt securities 299,245 (7,028) 76,110 (1,191) 375,355 (8,219) Total equity securities 8,118 (3,835) 3,211 (2,005) 11,329 (5,840) Total investments $ 307,363 $ (10,863) $ 79,321 $ (3,196) $ 386,684 $ (14,059) We had a total of 208 debt securities with an unrealized loss position, of which 82 were in an unrealized loss position for less than one year and 126 were in an unrealized loss position for a period of one year or greater, as of June 30, 2023. We held a total of 228 debt securities with an unrealized loss, of which 181 were in an unrealized loss position for less than one year and 47 were in an unrealized loss position for a period of one year or greater, as of December 31, 2022. We consider these unrealized losses as a temporary decline in value as they are on securities that we do not intend to sell and do not believe we will be required to sell prior to recovery of our amortized cost basis. The gross unrealized losses on the debt security positions at June 30, 2023 and December 31, 2022 were due predominately to market and interest rate fluctuations occurring in the ordinary course of business. Should we determine that a debt security in an unrealized loss position is likely to be sold before recovery of our amortized cost basis, we would recognize the unrealized loss. Additionally, in accordance with ASU 2016-13, the Company estimates what is expected to not be collectable over the remaining life of its debt securities that are in an unrealized loss position by employing qualitative analysis without regard for time spent in an unrealized loss position. The significant inputs used to determine the amount of expected credit loss in our debt security portfolio begins with an analysis of held securities experiencing credit rating downgrades in the current reporting period. Further inputs, such as performance indicators of the issuer’s business model, underlying assets, credit support and debt leverage are gathered as necessary based on our initial analysis step. If warranted, updated cash flow expectations are developed based on the aforementioned inputs. The Company concluded that based on current evidence there is no expected credit loss allowance necessary as of June 30, 2023. We presently expect that all debt securities held in our investment portfolio will be paid in accordance with their contractual terms. Equity investments that are not consolidated or accounted for under the equity method of accounting with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment. The amortized cost and estimated fair value of debt securities at June 30, 2023 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value (in thousands) Due in one year or less $ 178,363 $ 176,716 Due after one year through five years 97,494 95,891 Due after five years through ten years 16,008 15,958 Due after ten years 6,226 5,958 Mortgage-backed 1,453 1,238 $ 299,544 $ 295,761 |
Pledged Investments
Pledged Investments | 6 Months Ended |
Jun. 30, 2023 | |
Pledged Investments [Abstract] | |
Pledged Investments | 6. Pledged Investments We have pledged certain of our securities for the benefit of various state insurance departments, reinsurers and fronting partners. These securities are included with our available-for-sale debt securities because we have the ability to trade these securities. We retain the investment income on these securities. These securities had a carrying value of $101.4 million and $40.9 million at June 30, 2023 and December 31, 2022, respectively. The increase from December 31, 2022 is related to the agreement entered into with an A.M. Best rated “A” insurance company on May 5, 2023 to front new and renewal business that requires an A.M. Best rating at or above a certain level. The carrying value of pledged investments associated with the aforementioned agreement is $92.1 million at June 30, 2023. |
Reserves for Unpaid Losses and
Reserves for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Reserves for Losses and Loss Adjustment Expenses [Abstract] | |
Reserves for Unpaid Losses and Loss Adjustment Expenses | 7. Reserves for Unpaid Losses and Loss Adjustment Expenses Year to-date activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): 2023 2022 Balance at January 1 $ 880,869 $ 816,681 Less reinsurance recoverable 420,693 387,915 Net balance at January 1 460,176 428,766 Incurred related to: Current year - continuing operations 54,916 56,835 Prior years - continuing operations 11,600 55,193 Continuing operations 66,516 112,028 Current year - discontinued operations 2,733 55,848 Prior years - discontinued operations (7,720) 8,081 Discontinued operations (4,987) 63,929 Total incurred from continuing and discontinued operations 61,529 175,957 Paid related to: Current year - continuing operations 21,431 24,139 Prior years - continuing operations 80,988 59,362 Continuing operations 102,419 83,501 Current year - discontinued operations 2,367 8,629 Prior years - discontinued operations 52,030 41,799 Discontinued operations 54,397 50,428 Total paid from continuing and discontinued operations 156,816 133,929 Net balance at June 30 364,889 470,794 Plus reinsurance recoverable 419,957 377,413 Balance at June 30 $ 784,846 $ 848,207 The year-to-date impact from the net unfavorable (favorable) net prior years’ loss development on each reporting segment for continuing operations is presented below: Six Months Ended June 30, 2023 2022 Commercial Lines Segment $ 769 $ (51) Personal Lines Segment 2,992 3,408 Runoff Segment 7,839 51,836 Corporate — — Total unfavorable (favorable) net prior year development $ 11,600 $ 55,193 The following describes the primary factors behind each segment’s net prior accident year reserve development for the six months ended June 30, 2023 and 2022: Six months ended June 30, 2023: ● Commercial Lines Segment. Our Commercial Accounts business unit overall experienced net unfavorable development driven by accident year 2022 events stemming from both CAT and non-CAT related activity offset, in part, by our Aviation business unit’s net favorable development which also primarily originated from accident year 2022 activity. The Aviation unit’s net favorable development exclusively centered around non-CAT events. Workers Compensation operating unit was relatively flat experiencing $0.1 million of net unfavorable development. ● Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was driven predominately by unfavorable development attributable to the 2021 and 2022 accident years due in part to rising inflationary trends, specifically loss costs, that the industry began experiencing in 2021. ● Runoff Segment. Net unfavorable development in our Runoff lines of business was solely attributable to the binding commercial automobile liability line of business with multiple accident years experiencing unfavorable development, primarily concentrated in the 2020 and prior accident years . Six months ended June 30, 2022: ● Commercial Lines Segment. Our Commercial Accounts business unit overall experienced net favorable development primarily from accident year 2021 events related to our Aviation business operations. The Aviation business unit’s net favorable development was partially offset by our Commercial accounts units unfavorable net development also stemming from accident year 2021 events. ● Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was driven predominately by unfavorable development attributable to the 2021 and 2022 accident years due in part to rising inflationary trends, specifically loss costs, that the industry began experiencing in 2021. ● Runoff Segment. Net unfavorable development in our Runoff lines of business was attributable to the binding commercial automobile liability line of business with multiple accident years experiencing unfavorable net development, primarily concentrated in the 2020 and prior accident years, and our senior care facilities liability business, with unfavorable net development primarily concentrated in accident years 2019 through 2021 . |
Share-Based Payment Arrangement
Share-Based Payment Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangements [Abstract] | |
Share-Based Payment Arrangements | 8. Share-Based Payment Arrangements Our 2015 Long Term Incentive Plan (“2015 LTIP”) was approved by shareholders on May 29, 2015. There are 200,000 shares authorized for issuance under the 2015 LTIP. As of June 30, 2023, restricted stock units representing the right to receive up to 94,547 shares of our common stock were outstanding under the 2015 LTIP. There were no stock options outstanding under the 2015 LTIP as of June 30, 2023. Stock Options: There were no stock options outstanding at any point during the three or six months ended June 30, 2023 or 2022. There were no stock options granted, exercised or forfeited during the three or six months ended June 30, 2023 or 2022, respectively. As of June 30, 2023, there was no unrecognized compensation cost related to non-vested stock options. Restricted Stock Units: Restricted stock units awarded under the 2015 LTIP represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. For grants issued prior to 2021, restricted stock units vest and shares of common stock become issuable on March 31 of the third calendar year following the year of grant if performance criteria have been satisfied. Restricted stock units awarded under the 2015 LTIP during 2021 and 2022 cumulatively vest up to 50%, 80% and 100%, and shares of common stock become issuable, on March 31 of the third, fourth and fifth calendar years, respectively, following the year of grant if performance criteria have been satisfied. The performance criteria for restricted stock units vary based on grantee. The number of shares of common stock to be received ranges from 50% to 150% of the number of restricted stock units granted based on the level of achievement of the performance criteria. Grantees of restricted stock units do not have any rights of a stockholder, and do not participate in any distributions to our common stockholders, until the award fully vests upon satisfaction of the vesting schedule, performance criteria and other conditions set forth in their award agreement. Therefore, unvested restricted stock units are not considered participating securities under ASC 260, “Earnings Per Share” (Topic 260), and are not included in the calculation of basic or diluted earnings per share. Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on our best estimate of the ultimate achievement level. The grant date fair value of restricted stock units granted in 2019, 2021 and 2022 was $181.00, $42.10 and $36.20 per unit, respectively. We incurred compensation expense of $42 thousand and $139 thousand related to restricted stock units during the three months and six months ended June 30, 2023, respectively. We incurred compensation expense of $374 thousand and $436 thousand related to restricted stock units during the three months and six months ended June 30, 2022, respectively. We recorded income tax benefit of $9 thousand and $29 thousand related to restricted stock units during the three and six months ended June 30, 2023, respectively. We recorded income tax benefit of $79 thousand and $92 thousand related to restricted stock units during the three and six months ended June 30, 2022, respectively. The following table details the status of our restricted stock units as of and for the six months ended June 30, 2023 and 2022. Number of Restricted Stock Units 2023 2022 Nonvested at January 1 69,316 58,169 Granted — 61,175 Vested — (1,236) Forfeited (6,285) (6,553) Nonvested at June 30 63,031 111,555 As of June 30, 2023, there was $1.4 million of unrecognized grant date compensation cost related to unvested restricted stock units assuming compensation cost accrual at target achievement level. Based on the current performance estimate, we expect to recognize $0.6 million of compensation cost related to unvested restricted stock units, of which $0.2 million is expected to be recognized during the remainder of 2023, $0.2 million in 2024, $0.1 million in 2025 and $0.1 million in 2026. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Information [Abstract] | |
Segment Information | 9. Segment Information The following is business segment information for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues Commercial Lines Segment $ 23,185 $ 18,210 $ 44,811 $ 36,490 Personal Lines Segment 14,308 16,827 28,744 33,359 Runoff Segment 99 2,994 113 8,495 Corporate 4,318 (874) 8,073 1,036 Consolidated $ 41,910 $ 37,157 $ 81,741 $ 79,380 Depreciation and Amortization Expense Commercial Lines Segment $ 181 $ 143 $ 342 $ 264 Personal Lines Segment 68 36 127 118 Runoff Segment 5 118 10 175 Corporate 170 181 340 353 Consolidated $ 424 $ 478 $ 819 $ 910 Interest Expense Commercial Lines Segment $ — $ — $ — $ — Personal Lines Segment — — — — Runoff Segment — — — — Corporate 1,938 1,366 3,836 2,630 Consolidated $ 1,938 $ 1,366 $ 3,836 $ 2,630 Tax Expense (Benefit) Commercial Lines Segment $ (28) $ 336 $ (17) $ 200 Personal Lines Segment (51) 862 (75) 581 Runoff Segment (47) 9,400 (546) 7,251 Corporate (7) 1,852 (29) 1,238 Consolidated $ (133) $ 12,450 $ (667) $ 9,270 Pre-tax loss Commercial Lines Segment $ (2,323) $ (863) $ (1,497) $ (1,499) Personal Lines Segment (4,717) (3,040) (6,492) (4,353) Runoff Segment * (10,030) (44,279) (47,225) (54,317) Corporate (848) (6,403) (2,484) (9,273) Consolidated $ (17,918) $ (54,585) $ (57,698) $ (69,442) *The pre-tax loss for the Runoff Segment for the three months and six months ended June 30, 2023 includes a $3.9 and $36.8 million, respectively, write-off to bad debt expense related to a receivable from DARAG; (See Note 10, “Reinsurance – Loss Portfolio Transfer”). The following presents additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2023 2022 Commercial Lines Segment $ 198,410 $ 219,636 Personal Lines Segment 96,262 110,807 Runoff Segment 180,080 349,850 Corporate 774,596 856,409 Consolidated $ 1,249,348 $ 1,536,702 |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2023 | |
Reinsurance [Abstract] | |
Reinsurance | 10. Reinsurance We reinsure a portion of the risk we underwrite in order to control the exposure to losses and to protect capital resources. We cede to reinsurers a portion of these risks and pay premiums based upon the risk and exposure of the policies subject to such reinsurance. Ceded reinsurance involves credit risk and is generally subject to aggregate loss limits. Although the reinsurer is liable to us to the extent of the reinsurance ceded, we are ultimately liable as the direct insurer on all risks reinsured. Reinsurance recoverables are reported after allowances for uncollectible amounts. We monitor the financial condition of reinsurers on an ongoing basis and review our reinsurance arrangements periodically. Reinsurers are selected based on their financial condition, business practices and the price of their product offerings. In order to mitigate credit risk to reinsurance companies, most of our reinsurance recoverable balance as of June 30, 2023 was with reinsurers that had an A.M. Best rating of “A-” or better. We also mitigate our credit risk for the remaining reinsurance recoverable by obtaining letters of credit. The following table shows earned premiums ceded and reinsurance loss recoveries for continuing operations by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Ceded earned premiums $ 14,106 $ 17,616 $ 29,451 $ 34,399 Reinsurance recoveries $ 15,226 $ 20,573 $ 24,243 $ 54,303 Loss Portfolio Transfer On July 16, 2020, AHIC, HIC, HSIC, HCM and HNIC (collectively, the “Hallmark Insurers”), entered into a Loss Portfolio Transfer Reinsurance Contract to be effective as of January 1, 2020 (the “LPT Contract”) with DARAG Bermuda Ltd. (“DARAG Bermuda”) and DARAG Insurance (Guernsey) Limited (“DARAG Guernsey” and, collectively, the “Reinsurers”). The LPT Contract was consummated on July 31, 2020. The Company recorded a $21.7 million pre-tax loss during the third quarter of 2020 attributable to the closing of the LPT Contract. The Reinsurers and the Hallmark Insurers submitted to binding arbitration a dispute that arose regarding the rights and obligations of the parties under the LPT Contract. An interim binding arbitration award was declared by the arbitration panel on May 4, 2023 and consequently the Company recognized in the year-to-date reporting period ended March 31, 2023 a write-off to bad debt expense of $32.9 million of the receivable established by the Company. The final definitive binding award was declared June 2, 2023 and consequently an additional write-off to bad debt expense was recognized bringing the total write-off to $36.8 million for the year-to-date reporting period ended June 30, 2023. As of June 30, 2023, our consolidated balance sheet does not include any amount related to receivables from DARAG. |
Subordinated Debt Securities
Subordinated Debt Securities | 6 Months Ended |
Jun. 30, 2023 | |
Subordinated Debt Securities [Abstract] | |
Subordinated Debt Securities | 11. Subordinated Debt Securities We issued trust preferred securities through Trust I and Trust II. These Delaware statutory trusts are sponsored and wholly-owned by Hallmark, and each was created solely for the purpose of issuing the trust preferred securities. Each trust pays dividends on its preferred securities at the same rate each quarter as interest is paid on the junior subordinated debt securities. Under the terms of the junior subordinated debt securities, we pay interest only each quarter and the principal of each note at maturity. The subordinated debt securities of each trust are uncollateralized and do not require maintenance of minimum financial covenants. Each trust pays dividends on its preferred securities at the same rate each quarter as interest is paid on the junior subordinated debt securities. Under the terms of the trust subordinated debt securities, we pay interest only each quarter and the principal of each note at maturity. We may elect to defer payments of interest on the trust subordinated debt securities by extending the interest payment period for up to 20 consecutive quarterly periods. As of June 30, 2023, we have deferred interest for 11 consecutive quarters. During any such extension period, interest continues to accrue on the trust subordinated debt securities, as well as interest on such accrued interest. As of June 30, 2023, we have deferred $7.3 million of interest on the trust subordinated securities. The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities: Hallmark Hallmark Statutory Statutory Trust I Trust II Issue date June 21, 2005 August 23, 2007 Principal amount of trust preferred securities $ 30,000 $ 25,000 Principal amount of junior subordinated debt securities $ 30,928 $ 25,774 Maturity date of junior subordinated debt securities June 15, 2035 September 15, 2037 Trust common stock $ 928 $ 774 Interest rate, per annum Three Month LIBOR + 3.25% Three Month LIBOR + 2.90% Current interest rate at June 30, 2023 8.80% 8.45% |
Senior Unsecured Notes
Senior Unsecured Notes | 6 Months Ended |
Jun. 30, 2023 | |
Senior Unsecured Notes [Abstract] | |
Senior Unsecured Notes | 12. Senior Unsecured Notes On August 19, 2019, Hallmark issued $50.0 million of senior unsecured notes (“Notes”) due August 15, 2029. Interest on the Notes accrues at the rate of 6.25% per annum and is payable semi-annually in arrears commencing February 15, 2020. The Notes are not obligations of or guaranteed by any of Hallmark’s subsidiaries and are not subject to any sinking fund requirements. At Hallmark’s option, the Notes are redeemable, in whole or in part, prior to the stated maturity subject to certain provisions intended to make the holders of the Notes whole on scheduled interest and principal payments. The indenture governing the Notes contains covenants which, among other things, restrict Hallmark’s ability to incur additional indebtedness, make certain payments, create liens on the stock of certain subsidiaries, dispose of certain assets, or merge or consolidate with other entities. The terms of the indenture prohibit payments or other distributions on any security of the Company that ranks junior to the Notes when the Company’s debt to capital ratio (as defined in the indenture) is greater than 35%. The Company’s debt to capital ratio was 89.5% as of June 30, 2023. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | 13. Deferred Policy Acquisition Costs The following table shows total deferred and amortized policy acquisition cost activity by period for both continuing and discontinued operations as reported in operating expenses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Deferred $ 10,401 $ 8,231 $ (17,472) $ (16,094) Amortized (17,363) (6,702) 7,622 17,587 Net $ (6,962) $ 1,529 $ (9,850) $ 1,493 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per Share [Abstract] | |
Earnings per Share | 14. Earnings per Share The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted average shares - basic 1,818 1,819 1,818 1,818 Effect of dilutive securities — — — — Weighted average shares - assuming dilution 1,818 1,819 1,818 1,818 We had no shares of common stock potentially issuable upon exercise of employee stock options for the three and six months ended June 30, 2023 and 2022. |
Net Periodic Pension Cost
Net Periodic Pension Cost | 6 Months Ended |
Jun. 30, 2023 | |
Net Periodic Pension Cost | |
Net Periodic Pension Cost | 15. Net Periodic Pension Cost The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Interest cost $ 111 $ 75 $ 222 $ 150 Amortization of net loss 31 27 62 54 Expected return on plan assets (149) (191) (298) (382) Net periodic pension cost $ (7) $ (89) $ (14) $ (178) Contributed amount $ — $ — $ — $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes Our effective income tax rate for the six months ended June 30, 2023 and 2022 was 1.3% and -17.8%, respectively. During the six months ended June 30, 2023 and 2022, we carried a full valuation allowance of $41.4 and $23.9 million, respectively, against our net deferred tax assets primarily due to recent net losses, including the current period net loss. (See Note 2 “Basis of Presentation – Income Taxes”). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 17. Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows (in thousands): As of June 30, 2023 2022 Cash and cash equivalents $ 150,528 $ 113,207 Restricted cash 14,781 4,019 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 165,309 $ 117,226 Restricted cash represents amounts required to be set aside by a contractual agreement with a third-party insurer, amounts pledged for the benefit of various state insurance departments, and the fronting arrangement. The following table provides supplemental cash flow information for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 Interest paid $ 1,631 $ 3,666 Income taxes recovered $ 3,000 $ 15,098 Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 476 $ 3,970 Payable for securities related to investment purchases $ — $ 1,078 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies As of June 30, 2023 we were engaged in various legal proceedings in the ordinary course of business, none of which, either individually or in the aggregate, are believed likely to have a material adverse effect on our consolidated financial position or results of operations, in the opinion of management. The various legal proceedings to which we were a party are routine in nature and incidental to our business. From time to time, assessments are levied on us by the guaranty association of the states where we offer our insurance products. Such assessments are made primarily to cover the losses of policyholders of insolvent or rehabilitated insurers. Since these assessments can generally be recovered through a reduction in future premium taxes paid, we capitalize the assessments that can be recovered as they are paid and amortize the capitalized balance against our premium tax expense. We did no t pay an assessment during the first six months of 2023 or 2022. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Balances | 6 Months Ended |
Jun. 30, 2023 | |
Changes in Accumulated Other Comprehensive (Loss) Income Balances [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Balances | 19. Changes in Accumulated Other Comprehensive (Loss) Balances The changes in accumulated other comprehensive (loss) balances as of June 30, 2023 and 2022 were as follows (in thousands): Pension Accumulated Other Asset Unrealized Comprehensive (Liability) Gains (Loss) Income (Loss) Balance at January 1, 2022 $ (2,641) $ 1,606 $ (1,035) Other comprehensive loss: Change in net actuarial loss decrease 54 — 54 Tax effect on change in net actuarial loss decrease (12) — (12) Unrealized holding gains arising during the period — (8,826) (8,826) Tax effect on unrealized gains arising during the period — 1,853 1,853 Reclassification adjustment for gains included in net realized gains — (23) (23) Tax effect on reclassification adjustment for gains included in income tax expense — 5 5 Other comprehensive loss, net of tax 42 (6,991) (6,949) Balance at June 30, 2022 $ (2,599) $ (5,385) $ (7,984) Balance at January 1, 2023 $ (2,656) $ (5,836) $ (8,492) Other comprehensive loss: Change in net actuarial loss increase 62 — 62 Tax effect on change in net actuarial loss increase (13) — (13) Unrealized holding gains arising during the period — 2,396 2,396 Tax effect on unrealized gains arising during the period — (503) (503) Reclassification adjustment for gains included in net realized gains — 1,343 1,343 Tax effect on reclassification adjustment for gains included in income tax expense — (282) (282) Other comprehensive loss, net of tax 49 2,954 3,003 Balance at June 30, 2023 $ (2,607) $ (2,882) $ (5,489) |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 2 20. Leases Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. Since our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. The Company’s operating lease obligations predominately pertain to office leases utilized in the operation of our business. Our leases have remaining terms of one Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease cost $ 538 $ 707 $ 1,077 $ 1,380 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 430 $ 598 $ 857 $ 1,145 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — $ — $ — Other lease information as of June 30, 2023 and December 31, 2022 are as follows (in thousands): June 30, December 31, 2023 2022 Operating lease right-of-use assets $ 11,014 $ 12,481 Operating lease liabilities $ 13,321 $ 14,759 Weighted-average remaining lease term - operating leases 10.4 10.5 Weighted-average discount rate - operating leases 6.25% 6.23% No short-term lease payments were excluded in our lease liability during the six months ended June 30, 2023. Future minimum lease payments under non-cancellable leases as of June 30, 2023 and December 31, 2022 were as follows (in thousands): June 30, December 31, 2023 2022 2023 $ 1,030 $ 2,224 2024 2,079 2,421 2025 2,185 2,537 2026 2,134 2,497 2027 2,171 2,171 Thereafter 13,597 13,597 Total future minimum lease payments $ 23,196 $ 25,447 Less imputed interest $ (9,875) $ (10,688) Total operating lease liability $ 13,321 $ 14,759 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Basis of Presentation [Abstract] | |
Subsequent Event | Subsequent Event Due to the Maui, Hawaii wildfires on August 9, 2023, we preliminarily estimate our net loss exposure to be $7.5 million plus additional cost in the form of reinstatement premiums to restore any necessary reinsurance layers. The net loss and any additional cost incurred will be recognized in our third quarter 2023 financial statements. |
Use of Estimates in the Preparation of the Financial Statements | Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates are made at a point in time based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates. Cash and Cash Equivalents Restricted Cash Senior Unsecured Notes Due 2029 Subordinated Debt Securities For accounts receivable, reinsurance balances, premiums receivable, federal income tax recoverable and other assets, the carrying amounts are held at net realizable value which approximates fair value because of the short maturity of such financial instruments. |
Variable Interest Entities | Variable Interest Entities On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively the “Trusts”) and have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. |
Income Taxes | Income Taxes We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. We account for income taxes under the asset and liability method, which requires the recognition of deferred taxes for temporary differences between the financial statement and tax return basis of assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which we have already recorded the tax benefit in our income statement. Deferred tax liabilities generally represent tax expense recognized in our financial statements for which payment has been deferred or expenditures for which we have already taken a deduction in our tax return but have not yet been recognized in our financial statements. Under GAAP, we are required to evaluate the recoverability of our deferred tax assets and establish a valuation allowance if necessary to reduce our deferred tax assets to an amount that is more likely than not to be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. We establish or adjust valuation allowances for deferred tax assets when we estimate that it is more likely than not that future taxable income will be insufficient to realize the value of the deferred tax assets. We evaluate all significant available positive and negative evidence as part of our analysis. Negative evidence includes the existence of losses in recent years. Positive evidence includes the forecast of future taxable income and tax-planning strategies that would result in the realization of deferred tax assets. The underlying assumptions we use in forecasting future taxable income require significant judgment and take into account our recent performance. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible or creditable. If actual experience differs from these estimates and assumptions, the recognized deferred tax asset value may not be fully realized, resulting in an increase to income tax expense in our results of operations. As of June 30, 2023, the Company maintained a full valuation allowance of $41.4 million against its deferred tax assets because we determined that it is more likely than not that these assets will not be recoverable. If, in the future, we determine we can support the recoverability of all or a portion of the deferred tax assets under the guidance, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction of income tax expense and result in an increase in equity. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions at June 30, 2023. |
Reverse Stock Split | Reverse Stock Split On November 29, 2022, we filed a Certificate of Change to our Articles of Incorporation to affect a reverse split of our issued and outstanding common stock on a one-for-ten one-for-ten required in accordance with U.S. GAAP, all common share and per share data are retrospectively restated to give effect of the Reverse Stock Split for all periods presented herein. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform ("ASU 2020-04"). ASU 2020-04 provides optional guidance for a limited period of time to ease potential accounting impact associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 could be adopted as of March 12, 2020 and are effective through December 31, 2024. We do not currently have any contracts that have been changed to a new reference rate and do not expect the adoption of this guidance to have a material effect on the Company’s results of operations, financial position or liquidity. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 replaces the existing incurred loss impairment model with an expected credit loss impairment model. The expected credit loss impairment model requires the entity to recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected. The income statement includes the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that occur during the period. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP, although ASU 2016-13 requires that they be presented as an allowance rather than as a write-down of the amortized cost. In situations where the estimate of credit loss on an available-for-sale debt security declines, we are able to record a reversal of the allowance to income in the current period, which was prohibited prior to the adoption of ASU 2016-13. The expected loss approach requires us to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The standard also requires expanded disclosures related to credit losses and credit quality indicators. As a smaller reporting company, ASU 2016-13 is effective for fiscal years of the Company beginning after December 15, 2022, including interim periods within those fiscal years and accordingly we adopted ASU 2016-13 effective with our March 31, 2023 interim reporting. ASU 2016-13 requires a modified retrospective transition method and early adoption is permitted. Application of the standard to our applicable assets, including debt securities, cash, premium receivable, accounts receivable, reinsurance recoverables and prepaid expenses, did not have a material impact on our financial results. After consideration of risk and qualitative factors for each asset type in scope, an allowance for expected credit losses of $200 thousand was established in regards to reinsurance recoverables. See “Note 5. Investments” for a discussion regarding expected credit loss on our debt security assets. For determination of the reinsurance recoverables expected credit loss allowance, our Company relies on external ratings of credit worthiness from A.M. Best and collectability of recorded amounts considering letters of credit pledged by reinsurance partners. The external rating is utilized to place our reinsurance recoverables into appropriate risk layers of expected loss considering duration and historical loss patterns. The ratings at June 30, 2023 of our reinsurance recoverables, not offset by our liabilities for amounts owed to reinsurers and pledged letters of credit, are 95% rated A- or better . |
Discontinued Operations Class_2
Discontinued Operations Classification (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations Classification [Abstract] | |
Summary of discontinued operations | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gross premiums written $ (75,225) $ 126,062 $ 29,229 $ 217,688 Ceded premiums written 75,139 (79,199) (29,546) (133,773) Net premiums written (86) 46,863 (317) 83,915 Change in unearned premiums - (3,788) - 2,322 Net premiums earned (86) 43,075 (317) 86,237 Commissions and fees - 282 - 569 Other income 2,199 - 4,808 - Total revenues 2,113 43,357 4,491 86,806 Losses and loss adjustment expenses (4,641) 39,287 (4,987) 63,929 Operating expenses 878 6,916 3,498 14,866 Amortization of intangible assets - 119 - 238 Total expenses (3,763) 46,322 (1,489) 79,033 Income (loss) from discontinued operations before tax $ 5,876 $ (2,965) $ 5,980 $ 7,773 Income tax expense from discontinued operations - (583) - 1,697 Net income (loss) from discontinued operations $ 5,876 $ (2,382) $ 5,980 $ 6,076 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value [Abstract] | |
Fair value, assets measured on recurring basis | The following table presents, for each of the fair value hierarchy levels, assets that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in thousands): As of June 30, 2023 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 22,435 $ — $ 22,435 Corporate bonds — 191,345 — 191,345 Corporate bank loans — 49,503 — 49,503 Municipal bonds — 31,240 — 31,240 Mortgage-backed — 1,238 — 1,238 Total debt securities — 295,761 — 295,761 Total equity securities 22,763 — — 22,763 Total investments $ 22,763 $ 295,761 $ — $ 318,524 As of December 31, 2022 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 79,978 $ — $ 79,978 Corporate bonds — 235,044 — 235,044 Corporate bank loans — 75,183 — 75,183 Municipal bonds — 35,018 — 35,018 Mortgage-backed — 1,374 — 1,374 Total debt securities — 426,597 — 426,597 Total equity securities 28,199 — — 28,199 Total investments $ 28,199 $ 426,597 $ — $ 454,796 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Amortized cost/carrying value and estimated fair value of investments in debt and equity securities by category | The amortized cost/carrying value and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Cost/Amortized Unrealized Unrealized Cost Gains Losses Fair Value As of June 30, 2023 U.S. Treasury securities and obligations of U.S. Government $ 22,460 $ 193 $ (218) $ 22,435 Corporate bonds 194,504 416 (3,575) 191,345 Corporate bank loans 49,749 47 (293) 49,503 Municipal bonds 31,378 220 (358) 31,240 Mortgage-backed 1,453 6 (221) 1,238 Total debt securities 299,544 882 (4,665) 295,761 Total equity securities 24,284 3,180 (4,701) 22,763 Total investments $ 323,828 $ 4,062 $ (9,366) $ 318,524 As of December 31, 2022 U.S. Treasury securities and obligations of U.S. Government $ 80,616 $ 9 $ (647) $ 79,978 Corporate bonds 240,185 625 (5,766) 235,044 Corporate bank loans 76,418 6 (1,241) 75,183 Municipal bonds 35,390 51 (423) 35,018 Mortgage-backed 1,510 6 (142) 1,374 Total debt securities 434,119 697 (8,219) 426,597 Total equity securities 30,058 3,981 (5,840) 28,199 Total investments $ 464,177 $ 4,678 $ (14,059) $ 454,796 |
Major categories of net investment gains (losses) on investments | Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ (22) $ — Corporate bonds (45) 1 (1,162) 13 Corporate bank loans (64) 21 (155) 26 Municipal bonds — (7) (4) (7) Mortgage-backed — (9) — (9) Equity securities (11) 1,011 613 1,140 (Loss) Gain on investments (120) 1,017 (730) 1,163 Unrealized gains (losses) on equity securities 368 (5,011) 338 (5,106) Investment gains (losses), net $ 248 $ (3,994) $ (392) $ (3,943) |
Summary of gross unrealized loss position | The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of June 30, 2023 and December 31, 2022 (in thousands): As of June 30, 2023 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ — $ — $ 22,231 $ (218) $ 22,231 $ (218) Corporate bonds 12,603 (211) 173,042 (3,364) 185,645 (3,575) Corporate bank loans 6,991 (32) 27,580 (261) 34,571 (293) Municipal bonds 4,430 (52) 6,288 (306) 10,718 (358) Mortgage-backed 40 (2) 1,185 (219) 1,225 (221) Total debt securities 24,064 (297) 230,326 (4,368) 254,390 (4,665) Total equity securities 2,706 (78) 7,012 (4,623) 9,718 (4,701) Total investments $ 26,770 $ (375) $ 237,338 $ (8,991) $ 264,108 $ (9,366) As of December 31, 2022 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 17,543 $ (67) $ 37,622 $ (580) $ 55,165 $ (647) Corporate bonds 232,722 (5,764) 99 (2) 232,821 (5,766) Corporate bank loans 37,339 (678) 36,107 (563) 73,446 (1,241) Municipal bonds 10,293 (383) 2,275 (40) 12,568 (423) Mortgage-backed 1,348 (136) 7 (6) 1,355 (142) Total debt securities 299,245 (7,028) 76,110 (1,191) 375,355 (8,219) Total equity securities 8,118 (3,835) 3,211 (2,005) 11,329 (5,840) Total investments $ 307,363 $ (10,863) $ 79,321 $ (3,196) $ 386,684 $ (14,059) |
Schedule of amortized cost and estimated fair value of debt securities by contractual maturities | The amortized cost and estimated fair value of debt securities at June 30, 2023 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value (in thousands) Due in one year or less $ 178,363 $ 176,716 Due after one year through five years 97,494 95,891 Due after five years through ten years 16,008 15,958 Due after ten years 6,226 5,958 Mortgage-backed 1,453 1,238 $ 299,544 $ 295,761 |
Reserves for Unpaid Losses an_2
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Reserves for Losses and Loss Adjustment Expenses [Abstract] | |
Summary of activity in the reserves for unpaid losses and loss adjustment expense | Year to-date activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): 2023 2022 Balance at January 1 $ 880,869 $ 816,681 Less reinsurance recoverable 420,693 387,915 Net balance at January 1 460,176 428,766 Incurred related to: Current year - continuing operations 54,916 56,835 Prior years - continuing operations 11,600 55,193 Continuing operations 66,516 112,028 Current year - discontinued operations 2,733 55,848 Prior years - discontinued operations (7,720) 8,081 Discontinued operations (4,987) 63,929 Total incurred from continuing and discontinued operations 61,529 175,957 Paid related to: Current year - continuing operations 21,431 24,139 Prior years - continuing operations 80,988 59,362 Continuing operations 102,419 83,501 Current year - discontinued operations 2,367 8,629 Prior years - discontinued operations 52,030 41,799 Discontinued operations 54,397 50,428 Total paid from continuing and discontinued operations 156,816 133,929 Net balance at June 30 364,889 470,794 Plus reinsurance recoverable 419,957 377,413 Balance at June 30 $ 784,846 $ 848,207 |
Impact of net prior years loss development on each reporting segment | The year-to-date impact from the net unfavorable (favorable) net prior years’ loss development on each reporting segment for continuing operations is presented below: Six Months Ended June 30, 2023 2022 Commercial Lines Segment $ 769 $ (51) Personal Lines Segment 2,992 3,408 Runoff Segment 7,839 51,836 Corporate — — Total unfavorable (favorable) net prior year development $ 11,600 $ 55,193 |
Share-Based Payment Arrangeme_2
Share-Based Payment Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of the status of restricted stock units | The following table details the status of our restricted stock units as of and for the six months ended June 30, 2023 and 2022. Number of Restricted Stock Units 2023 2022 Nonvested at January 1 69,316 58,169 Granted — 61,175 Vested — (1,236) Forfeited (6,285) (6,553) Nonvested at June 30 63,031 111,555 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Information [Abstract] | |
Schedule of business segment information | The following is business segment information for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues Commercial Lines Segment $ 23,185 $ 18,210 $ 44,811 $ 36,490 Personal Lines Segment 14,308 16,827 28,744 33,359 Runoff Segment 99 2,994 113 8,495 Corporate 4,318 (874) 8,073 1,036 Consolidated $ 41,910 $ 37,157 $ 81,741 $ 79,380 Depreciation and Amortization Expense Commercial Lines Segment $ 181 $ 143 $ 342 $ 264 Personal Lines Segment 68 36 127 118 Runoff Segment 5 118 10 175 Corporate 170 181 340 353 Consolidated $ 424 $ 478 $ 819 $ 910 Interest Expense Commercial Lines Segment $ — $ — $ — $ — Personal Lines Segment — — — — Runoff Segment — — — — Corporate 1,938 1,366 3,836 2,630 Consolidated $ 1,938 $ 1,366 $ 3,836 $ 2,630 Tax Expense (Benefit) Commercial Lines Segment $ (28) $ 336 $ (17) $ 200 Personal Lines Segment (51) 862 (75) 581 Runoff Segment (47) 9,400 (546) 7,251 Corporate (7) 1,852 (29) 1,238 Consolidated $ (133) $ 12,450 $ (667) $ 9,270 Pre-tax loss Commercial Lines Segment $ (2,323) $ (863) $ (1,497) $ (1,499) Personal Lines Segment (4,717) (3,040) (6,492) (4,353) Runoff Segment * (10,030) (44,279) (47,225) (54,317) Corporate (848) (6,403) (2,484) (9,273) Consolidated $ (17,918) $ (54,585) $ (57,698) $ (69,442) *The pre-tax loss for the Runoff Segment for the three months and six months ended June 30, 2023 includes a $3.9 and $36.8 million, respectively, write-off to bad debt expense related to a receivable from DARAG; (See Note 10, “Reinsurance – Loss Portfolio Transfer”). |
Schedule of additional business segment information | The following presents additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2023 2022 Commercial Lines Segment $ 198,410 $ 219,636 Personal Lines Segment 96,262 110,807 Runoff Segment 180,080 349,850 Corporate 774,596 856,409 Consolidated $ 1,249,348 $ 1,536,702 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Reinsurance [Abstract] | |
Schedule of reinsurance ceded and recoveries | The following table shows earned premiums ceded and reinsurance loss recoveries for continuing operations by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Ceded earned premiums $ 14,106 $ 17,616 $ 29,451 $ 34,399 Reinsurance recoveries $ 15,226 $ 20,573 $ 24,243 $ 54,303 |
Subordinated Debt Securities (T
Subordinated Debt Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Subordinated Debt Securities [Abstract] | |
Summary of the nature and terms of the junior subordinated debt and trust preferred securities | The following table summarizes the nature and terms of the junior subordinated debt and trust preferred securities: Hallmark Hallmark Statutory Statutory Trust I Trust II Issue date June 21, 2005 August 23, 2007 Principal amount of trust preferred securities $ 30,000 $ 25,000 Principal amount of junior subordinated debt securities $ 30,928 $ 25,774 Maturity date of junior subordinated debt securities June 15, 2035 September 15, 2037 Trust common stock $ 928 $ 774 Interest rate, per annum Three Month LIBOR + 3.25% Three Month LIBOR + 2.90% Current interest rate at June 30, 2023 8.80% 8.45% |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred amortized policy acquisition costs | The following table shows total deferred and amortized policy acquisition cost activity by period for both continuing and discontinued operations as reported in operating expenses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Deferred $ 10,401 $ 8,231 $ (17,472) $ (16,094) Amortized (17,363) (6,702) 7,622 17,587 Net $ (6,962) $ 1,529 $ (9,850) $ 1,493 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per Share [Abstract] | |
Schedule of weighted average number of shares outstanding | The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted average shares - basic 1,818 1,819 1,818 1,818 Effect of dilutive securities — — — — Weighted average shares - assuming dilution 1,818 1,819 1,818 1,818 |
Net Periodic Pension Cost (Tabl
Net Periodic Pension Cost (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Net Periodic Pension Cost | |
Schedule of net benefit costs | The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Interest cost $ 111 $ 75 $ 222 $ 150 Amortization of net loss 31 27 62 54 Expected return on plan assets (149) (191) (298) (382) Net periodic pension cost $ (7) $ (89) $ (14) $ (178) Contributed amount $ — $ — $ — $ — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash in balance sheet to cash flows | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows (in thousands): As of June 30, 2023 2022 Cash and cash equivalents $ 150,528 $ 113,207 Restricted cash 14,781 4,019 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 165,309 $ 117,226 |
Supplemental cash flow information | The following table provides supplemental cash flow information for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 Interest paid $ 1,631 $ 3,666 Income taxes recovered $ 3,000 $ 15,098 Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 476 $ 3,970 Payable for securities related to investment purchases $ — $ 1,078 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive (Loss) Balances (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Changes in Accumulated Other Comprehensive (Loss) Income Balances [Abstract] | |
Schedule of changes in accumulated other comprehensive (loss) | The changes in accumulated other comprehensive (loss) balances as of June 30, 2023 and 2022 were as follows (in thousands): Pension Accumulated Other Asset Unrealized Comprehensive (Liability) Gains (Loss) Income (Loss) Balance at January 1, 2022 $ (2,641) $ 1,606 $ (1,035) Other comprehensive loss: Change in net actuarial loss decrease 54 — 54 Tax effect on change in net actuarial loss decrease (12) — (12) Unrealized holding gains arising during the period — (8,826) (8,826) Tax effect on unrealized gains arising during the period — 1,853 1,853 Reclassification adjustment for gains included in net realized gains — (23) (23) Tax effect on reclassification adjustment for gains included in income tax expense — 5 5 Other comprehensive loss, net of tax 42 (6,991) (6,949) Balance at June 30, 2022 $ (2,599) $ (5,385) $ (7,984) Balance at January 1, 2023 $ (2,656) $ (5,836) $ (8,492) Other comprehensive loss: Change in net actuarial loss increase 62 — 62 Tax effect on change in net actuarial loss increase (13) — (13) Unrealized holding gains arising during the period — 2,396 2,396 Tax effect on unrealized gains arising during the period — (503) (503) Reclassification adjustment for gains included in net realized gains — 1,343 1,343 Tax effect on reclassification adjustment for gains included in income tax expense — (282) (282) Other comprehensive loss, net of tax 49 2,954 3,003 Balance at June 30, 2023 $ (2,607) $ (2,882) $ (5,489) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Summary of components of lease expense and other lease information | The components of lease expense and related cash information as of and during the three month and six month periods ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease cost $ 538 $ 707 $ 1,077 $ 1,380 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 430 $ 598 $ 857 $ 1,145 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — $ — $ — |
Summary of balance sheet components | Other lease information as of June 30, 2023 and December 31, 2022 are as follows (in thousands): June 30, December 31, 2023 2022 Operating lease right-of-use assets $ 11,014 $ 12,481 Operating lease liabilities $ 13,321 $ 14,759 Weighted-average remaining lease term - operating leases 10.4 10.5 Weighted-average discount rate - operating leases 6.25% 6.23% |
Summary of future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancellable leases as of June 30, 2023 and December 31, 2022 were as follows (in thousands): June 30, December 31, 2023 2022 2023 $ 1,030 $ 2,224 2024 2,079 2,421 2025 2,185 2,537 2026 2,134 2,497 2027 2,171 2,171 Thereafter 13,597 13,597 Total future minimum lease payments $ 23,196 $ 25,447 Less imputed interest $ (9,875) $ (10,688) Total operating lease liability $ 13,321 $ 14,759 |
General (Narrative) (Details)
General (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
General [Abstract] | |
Number of reportable segments | 3 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jan. 01, 2023 $ / shares shares | Aug. 23, 2007 USD ($) | Jun. 21, 2005 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | |
Variable Interest Entity [Line Items] | |||||||||
Losses and loss adjustment expenses | $ 36,752 | $ 72,646 | $ 66,516 | $ 112,028 | |||||
Reinsurance recoverable, allowance for credit loss | 200 | 200 | |||||||
Senior unsecured notes due 2029, carrying value | 49,401 | 49,401 | $ 49,352 | ||||||
Deferred tax, valuation allowance | 41,400 | 41,400 | |||||||
Uncertain tax positions | $ 0 | $ 0 | |||||||
Reverse stock split ratio | 0.1 | ||||||||
Common stock, par value | $ / shares | $ 1 | $ 1 | $ 1 | $ 1 | |||||
Common stock, authorized shares | shares | 3,333,333 | 3,333,333 | 3,333,333 | 3,333,333 | |||||
Fractional shares issued (in shares) | shares | 0 | ||||||||
Scenario, Forecast [Member] | Maui, Hawaii Wildfires [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Losses and loss adjustment expenses | $ 7,500 | ||||||||
AM Best, A- Rating [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Percentage of reinsurance recoverable | 95% | ||||||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Reinsurance recoverable, allowance for credit loss | $ 200 | $ 200 | |||||||
Related Party [Member] | Hallmark Statutory Trust I [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Proceeds from issuance of trust preferred securities | $ 30,000 | ||||||||
Related Party [Member] | Hallmark Statutory Trust I I [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Proceeds from issuance of trust preferred securities | $ 25,000 | ||||||||
Senior unsecured notes due 2029 [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Senior unsecured notes due 2029, carrying value | 49,400 | 49,400 | |||||||
Senior unsecured notes due 2029, fair value | 44,900 | 44,900 | |||||||
Subordinated Debt [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Trust preferred securities, carrying value | 56,000 | 56,000 | |||||||
Trust preferred securities, fair value | 35,400 | 35,400 | |||||||
Subordinated Debt [Member] | Related Party [Member] | Hallmark Statutory Trust I [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Payments to acquire trust preferred investments | $ 30,900 | ||||||||
Subordinated Debt [Member] | Related Party [Member] | Hallmark Statutory Trust I I [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Payments to acquire trust preferred investments | $ 25,800 | ||||||||
Discontinued Operations, Held-for-sale or disposed of by sale | E&S [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Losses and loss adjustment expenses | $ (4,641) | $ 39,287 | $ (4,987) | $ 63,929 |
Discontinued Operations Class_3
Discontinued Operations Classification - Narratives (Details) - Discontinued Operations, Held-for-sale or disposed of by sale - E&S [Member] $ in Millions | Oct. 07, 2022 USD ($) employee item |
Discontinued Operations Classification | |
Cash consideration | $ 40 |
Acquisition costs | $ 19.9 |
Number of business units | item | 9 |
Number of employees | employee | 200 |
Discontinued Operations Class_4
Discontinued Operations Classification - Income (loss) from discontinued operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Discontinued Operations Classification | ||||
Gross premiums written | $ 54,511 | $ 56,004 | $ 111,683 | $ 115,337 |
Net premiums written | 43,875 | 37,438 | 86,256 | 78,707 |
Change in unearned premiums | (7,028) | (401) | (14,129) | (2,355) |
Net premiums earned | 36,847 | 37,037 | 72,127 | 76,352 |
Other Income | 64 | 14 | 134 | 29 |
Total revenues | 41,910 | 37,157 | 81,741 | 79,380 |
Losses and loss adjustment expenses | 36,752 | 72,646 | 66,516 | 112,028 |
Operating expenses | 21,138 | 17,723 | 69,087 | 34,150 |
Amortization of Intangible Assets | 7 | 14 | ||
Income (loss) from discontinued operations before tax | 5,876 | (2,965) | 5,980 | 7,773 |
Income tax expense from discontinued operations | (583) | 1,697 | ||
Net income (loss) from discontinued operations | 5,876 | (2,382) | 5,980 | 6,076 |
Discontinued Operations, Held-for-sale or disposed of by sale | E&S [Member] | ||||
Discontinued Operations Classification | ||||
Gross premiums written | (75,225) | 126,062 | 29,229 | 217,688 |
Ceded premiums written | 75,139 | (79,199) | (29,546) | (133,773) |
Net premiums written | (86) | 46,863 | (317) | 83,915 |
Change in unearned premiums | (3,788) | 2,322 | ||
Net premiums earned | (86) | 43,075 | (317) | 86,237 |
Commission and fees | 282 | 569 | ||
Other Income | 2,199 | 4,808 | ||
Total revenues | 2,113 | 43,357 | 4,491 | 86,806 |
Losses and loss adjustment expenses | (4,641) | 39,287 | (4,987) | 63,929 |
Operating expenses | 878 | 6,916 | 3,498 | 14,866 |
Amortization of Intangible Assets | 119 | 238 | ||
Total expenses | (3,763) | 46,322 | (1,489) | 79,033 |
Income (loss) from discontinued operations before tax | 5,876 | (2,965) | 5,980 | 7,773 |
Income tax expense from discontinued operations | (583) | 1,697 | ||
Net income (loss) from discontinued operations | $ 5,876 | $ (2,382) | $ 5,980 | $ 6,076 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - security | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value [Abstract] | ||
Available-For-Sale Securities, Number Of Debt Securities With Unobservable Inputs | 0 | 0 |
Fair Value (Fair Value of Asset
Fair Value (Fair Value of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 295,761 | $ 426,597 |
Total equity securities | 22,763 | 28,199 |
Total investments | 318,524 | 454,796 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 22,763 | 28,199 |
U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22,435 | 79,978 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 191,345 | 235,044 |
Corporate bank loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 49,503 | 75,183 |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 31,240 | 35,018 |
Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,238 | 1,374 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 295,761 | 426,597 |
Total equity securities | 22,763 | 28,199 |
Total investments | 318,524 | 454,796 |
Fair Value, Recurring [Member] | U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22,435 | 79,978 |
Fair Value, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 191,345 | 235,044 |
Fair Value, Recurring [Member] | Corporate bank loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 49,503 | 75,183 |
Fair Value, Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 31,240 | 35,018 |
Fair Value, Recurring [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,238 | 1,374 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Total equity securities | 22,763 | 28,199 |
Total investments | 22,763 | 28,199 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 295,761 | 426,597 |
Total equity securities | 0 | 0 |
Total investments | 295,761 | 426,597 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22,435 | 79,978 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 191,345 | 235,044 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 49,503 | 75,183 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 31,240 | 35,018 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,238 | 1,374 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Total equity securities | 0 | 0 |
Total investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate bank loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) item security | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) item security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Number of investment in unaffiliated issuers | item | 82 | 82 | |||
Investment in common stock (as percentage) | 86% | 86% | |||
Investment in debt securities (as percentage) | 94% | 94% | |||
Gross gains on investments | $ 800,000 | $ 1,000,000 | $ 1,700,000 | $ 1,200,000 | |
Gross losses on investments | 900,000 | 24,000 | 2,400,000 | 31,000 | |
Proceeds from sale of investment securities | 8,100,000 | $ 4,000,000 | 58,500,000 | $ 4,500,000 | |
Debt securities, available-for-sale, allowance for expected credit losses | $ 0 | $ 0 | |||
Debt Securities [Member] | |||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||||
Number of debt securities with unrealized loss | security | 208 | 208 | 228 | ||
Number of debt securities with unrealized loss, less than 12 months | security | 82 | 82 | 181 | ||
Number of debt securities with unrealized loss, greater than 12 months | security | 126 | 126 | 47 |
Investments (Amortized Cost & C
Investments (Amortized Cost & Carrying Value and Estimated Fair Value of Investments in Debt and Equity Securities by Category) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | $ 299,544 | $ 434,119 |
Gross Unrealized Gain | 882 | 697 |
Gross Unrealized Loss | (4,665) | (8,219) |
Fair Value | 295,761 | 426,597 |
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Equity securities, Amortized Cost/ Carrying Value | 24,284 | 30,058 |
Total equity securities | 22,763 | 28,199 |
Investments, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Investments, Amortized Cost/ Carrying Value | 323,828 | 464,177 |
Investments, Gross Unrealized Gains | 4,062 | 4,678 |
Investments, Gross Unrealized Losses | (9,366) | (14,059) |
Investments, Fair value | 318,524 | 454,796 |
U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | 22,460 | 80,616 |
Gross Unrealized Gain | 193 | 9 |
Gross Unrealized Loss | (218) | (647) |
Fair Value | 22,435 | 79,978 |
Corporate bonds [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | 194,504 | 240,185 |
Gross Unrealized Gain | 416 | 625 |
Gross Unrealized Loss | (3,575) | (5,766) |
Fair Value | 191,345 | 235,044 |
Corporate bank loans [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | 49,749 | 76,418 |
Gross Unrealized Gain | 47 | 6 |
Gross Unrealized Loss | (293) | (1,241) |
Fair Value | 49,503 | 75,183 |
Municipal bonds [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | 31,378 | 35,390 |
Gross Unrealized Gain | 220 | 51 |
Gross Unrealized Loss | (358) | (423) |
Fair Value | 31,240 | 35,018 |
Mortgage-backed [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost/ Carrying Value | 1,453 | 1,510 |
Gross Unrealized Gain | 6 | 6 |
Gross Unrealized Loss | (221) | (142) |
Fair Value | 1,238 | 1,374 |
Equity Securities [Member] | ||
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Equity securities, Amortized Cost/ Carrying Value | 24,284 | 30,058 |
Equity Securities, Gross Unrealized Gains | 3,180 | 3,981 |
Equity Securities, Gross Unrealized Losses | (4,701) | (5,840) |
Total equity securities | $ 22,763 | $ 28,199 |
Investments (Major Categories o
Investments (Major Categories of Net Investment Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Gain (Loss) on Securities [Line Items] | ||||
Gain on equity securities | $ (11) | $ 1,011 | $ 613 | $ 1,140 |
(Loss) Gain on investments | (120) | 1,017 | (730) | 1,163 |
Unrealized gains (losses) on equity securities | 368 | (5,011) | 338 | (5,106) |
Investment gains (losses), net | 248 | (3,994) | (392) | (3,943) |
U.S. Treasury securities and obligations of U.S. Government [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on debt securities | (22) | |||
Corporate bonds [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on debt securities | (45) | 1 | (1,162) | 13 |
Corporate bank loans [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on debt securities | $ (64) | 21 | (155) | 26 |
Municipal bonds [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on debt securities | (7) | $ (4) | (7) | |
Mortgage-backed [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on debt securities | $ (9) | $ (9) |
Investments (Summary of Gross U
Investments (Summary of Gross Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Unrealized Loss Position, Fair Value | ||
Investments, Fair Value 12 months or less | $ 26,770 | $ 307,363 |
Investments, Fair Value Longer than 12 months | 237,338 | 79,321 |
Investments, Total Fair Value | 264,108 | 386,684 |
Investments, Unrealized Losses | ||
Investments, Unrealized Losses 12 months or less | (375) | (10,863) |
Investments, Unrealized Losses Longer than 12 months | (8,991) | (3,196) |
Investments, Total Unrealized Losses | (9,366) | (14,059) |
Debt Securities [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 24,064 | 299,245 |
Debt securities, Fair Value Longer than 12 months | 230,326 | 76,110 |
Debt securities, Total Fair Value | 254,390 | 375,355 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (297) | (7,028) |
Debt securities, Unrealized Losses Longer than 12 months | (4,368) | (1,191) |
Debt securities, Total Unrealized Losses | 4,665 | 8,219 |
Debt Securities [Member] | U.S. Treasury securities and obligations of U.S. Government [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 0 | 17,543 |
Debt securities, Fair Value Longer than 12 months | 22,231 | 37,622 |
Debt securities, Total Fair Value | 22,231 | 55,165 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | 0 | (67) |
Debt securities, Unrealized Losses Longer than 12 months | (218) | (580) |
Debt securities, Total Unrealized Losses | 218 | 647 |
Debt Securities [Member] | Corporate bonds [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 12,603 | 232,722 |
Debt securities, Fair Value Longer than 12 months | 173,042 | 99 |
Debt securities, Total Fair Value | 185,645 | 232,821 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (211) | (5,764) |
Debt securities, Unrealized Losses Longer than 12 months | (3,364) | (2) |
Debt securities, Total Unrealized Losses | 3,575 | 5,766 |
Debt Securities [Member] | Corporate bank loans [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 6,991 | 37,339 |
Debt securities, Fair Value Longer than 12 months | 27,580 | 36,107 |
Debt securities, Total Fair Value | 34,571 | 73,446 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (32) | (678) |
Debt securities, Unrealized Losses Longer than 12 months | (261) | (563) |
Debt securities, Total Unrealized Losses | 293 | 1,241 |
Debt Securities [Member] | Municipal bonds [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 4,430 | 10,293 |
Debt securities, Fair Value Longer than 12 months | 6,288 | 2,275 |
Debt securities, Total Fair Value | 10,718 | 12,568 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (52) | (383) |
Debt securities, Unrealized Losses Longer than 12 months | (306) | (40) |
Debt securities, Total Unrealized Losses | 358 | 423 |
Debt Securities [Member] | Mortgage-backed [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 40 | 1,348 |
Debt securities, Fair Value Longer than 12 months | 1,185 | 7 |
Debt securities, Total Fair Value | 1,225 | 1,355 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (2) | (136) |
Debt securities, Unrealized Losses Longer than 12 months | (219) | (6) |
Debt securities, Total Unrealized Losses | 221 | 142 |
Equity Securities [Member] | ||
Equity Securities, Unrealized Loss Position, Fair Value | ||
Equity securities, Fair Value 12 months or less | 2,706 | 8,118 |
Equity securities, Fair Value Longer than 12 months | 7,012 | 3,211 |
Equity securities, Total Fair Value | 9,718 | 11,329 |
Equity Securities, Unrealized Loss | ||
Equity securities, Unrealized Losses 12 months or less | (78) | (3,835) |
Equity securities, Unrealized Losses Longer than 12 months | (4,623) | (2,005) |
Equity securities, Total Unrealized Losses | $ (4,701) | $ (5,840) |
Investments (Schedule of Amorti
Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due in one year or less | $ 178,363 | |
Amortized Cost, Due after one year through five years | 97,494 | |
Amortized Cost, Due after five years through ten years | 16,008 | |
Amortized Cost, Amortized Cost Due after ten years | 6,226 | |
Amortized Cost | 299,544 | $ 434,119 |
Fair Value, Due in one year or less | 176,716 | |
Fair Value, Due after one year through five years | 95,891 | |
Fair Value, Due after five years through ten years | 15,958 | |
Fair Value, Due after ten years | 5,958 | |
Fair Value | 295,761 | 426,597 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,453 | 1,510 |
Fair Value | $ 1,238 | $ 1,374 |
Pledged Investments (Narrative)
Pledged Investments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||
Securities available-for-sale pledged, carrying value | $ 101.4 | $ 40.9 |
AM Best, A Rating [Member] | ||
Reinsurance Recoverable, Credit Quality Indicator [Line Items] | ||
Securities available-for-sale pledged, carrying value | $ 92.1 |
Reserves for Unpaid Losses an_3
Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Beginning balance | $ 880,869 | $ 816,681 |
Less reinsurance recoverable | 420,693 | 387,915 |
Net balance beginning | 460,176 | 428,766 |
Incurred related to: | ||
Prior years | 11,600 | 55,193 |
Total incurred | 61,529 | 175,957 |
Paid related to: | ||
Total paid | 156,816 | 133,929 |
Net ending balance | 364,889 | 470,794 |
Plus reinsurance recoverable | 419,957 | 377,413 |
Ending balance | 784,846 | 848,207 |
Continuing Operations | ||
Incurred related to: | ||
Current year | 54,916 | 56,835 |
Prior years | 11,600 | 55,193 |
Total incurred | 66,516 | 112,028 |
Paid related to: | ||
Current year | 21,431 | 24,139 |
Prior years | 80,988 | 59,362 |
Total paid | 102,419 | 83,501 |
Discontinued Operations | ||
Incurred related to: | ||
Current year | 2,733 | 55,848 |
Prior years | (7,720) | 8,081 |
Total incurred | (4,987) | 63,929 |
Paid related to: | ||
Current year | 2,367 | 8,629 |
Prior years | 52,030 | 41,799 |
Total paid | $ 54,397 | $ 50,428 |
Reserves for Unpaid Losses an_4
Reserves for Unpaid Losses and Loss Adjustment Expenses (Causes for Prior Accident Year Reserve Development by Segment) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | $ 11,600 | $ 55,193 |
Continuing Operations | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | 11,600 | 55,193 |
Standard Commercial Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | 769 | (51) |
Workers Compensation Business Unit [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | 100 | |
Personal Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | 2,992 | 3,408 |
Runoff Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total unfavorable (favorable) net prior year development | $ 7,839 | $ 51,836 |
Share-Based Payment Arrangeme_3
Share-Based Payment Arrangements (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Long Term Incentive Plan 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 200,000 | 200,000 | |||||
Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares | 94,547 | ||||||
Stock Options, Outstanding | 0 | 0 | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Options, Outstanding | 0 | 0 | 0 | 0 | |||
Stock options, Granted | 0 | 0 | 0 | 0 | |||
Stock Options, Exercised | 0 | 0 | 0 | 0 | |||
Stock Options, Forfeited or Expired | 0 | 0 | 0 | 0 | |||
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 0 | $ 0 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to non-vested share-based compensation arrangements | 1,400,000 | 1,400,000 | |||||
Allocated share-based compensation expense (benefit) | 42,000 | $ 374,000 | 139,000 | $ 436,000 | |||
Income tax benefit (expense) of share-based payments recognized in income | 9,000 | $ 79,000 | 29,000 | $ 92,000 | |||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognized | 600,000 | ||||||
Remainder of 2023 | 200,000 | 200,000 | |||||
2024 | 200,000 | 200,000 | |||||
2025 | 100,000 | 100,000 | |||||
2026 | $ 100,000 | $ 100,000 | |||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of restricted stock units granted as result of meeting growth rates | 50% | 50% | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of restricted stock units granted as result of meeting growth rates | 150% | 150% | |||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other than options, grant date fair value | $ 36.20 | $ 42.10 | $ 181 | ||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | Third Anniversary [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50% | ||||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | Fourth Anniversary [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 80% | ||||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | Fifth Anniversary [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 100% |
Share-Based Payment Arrangeme_4
Share-Based Payment Arrangements (Summary of the Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested beginning | 69,316 | 58,169 |
Granted | 61,175 | |
Vested | (1,236) | |
Forfeited | (6,285) | (6,553) |
Nonvested ending | 63,031 | 111,555 |
Segment Information (Schedule o
Segment Information (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues [Abstract] | |||||
Revenues | $ 41,910 | $ 37,157 | $ 81,741 | $ 79,380 | |
Depreciation and Amortization Expense [Abstract] | |||||
Depreciation and Amortization Expense | 424 | 478 | 819 | 910 | |
Interest Expense [Abstract] | |||||
Interest Expense | 1,938 | 1,366 | 3,836 | 2,630 | |
Tax Expense (Benefit) [Abstract] | |||||
Tax Expense (Benefit) | (133) | 12,450 | (667) | 9,270 | |
Pre-Tax Income (Loss)[Abstract] | |||||
Pre-tax loss | (17,918) | (54,585) | (57,698) | (69,442) | |
Loss Portfolio Transfer Contract Right Dispute [Member] | Pending Litigation [Member] | |||||
Pre-Tax Income (Loss)[Abstract] | |||||
Write off of receivable | $ 32,900 | 36,800 | |||
Commercial Lines Segment [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 23,185 | 18,210 | 44,811 | 36,490 | |
Depreciation and Amortization Expense [Abstract] | |||||
Depreciation and Amortization Expense | 181 | 143 | 342 | 264 | |
Tax Expense (Benefit) [Abstract] | |||||
Tax Expense (Benefit) | (28) | 336 | (17) | 200 | |
Pre-Tax Income (Loss)[Abstract] | |||||
Pre-tax loss | (2,323) | (863) | (1,497) | (1,499) | |
Personal Segment [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 14,308 | 16,827 | 28,744 | 33,359 | |
Depreciation and Amortization Expense [Abstract] | |||||
Depreciation and Amortization Expense | 68 | 36 | 127 | 118 | |
Tax Expense (Benefit) [Abstract] | |||||
Tax Expense (Benefit) | (51) | 862 | (75) | 581 | |
Pre-Tax Income (Loss)[Abstract] | |||||
Pre-tax loss | (4,717) | (3,040) | (6,492) | (4,353) | |
Runoff Segment [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 99 | 2,994 | 113 | 8,495 | |
Depreciation and Amortization Expense [Abstract] | |||||
Depreciation and Amortization Expense | 5 | 118 | 10 | 175 | |
Tax Expense (Benefit) [Abstract] | |||||
Tax Expense (Benefit) | (47) | 9,400 | (546) | 7,251 | |
Pre-Tax Income (Loss)[Abstract] | |||||
Pre-tax loss | (10,030) | (44,279) | (47,225) | (54,317) | |
Runoff Segment [Member] | Loss Portfolio Transfer Contract Right Dispute [Member] | Pending Litigation [Member] | |||||
Pre-Tax Income (Loss)[Abstract] | |||||
Write off of receivable | 3,900 | 36,800 | |||
Corporate [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 4,318 | (874) | 8,073 | 1,036 | |
Depreciation and Amortization Expense [Abstract] | |||||
Depreciation and Amortization Expense | 170 | 181 | 340 | 353 | |
Interest Expense [Abstract] | |||||
Interest Expense | 1,938 | 1,366 | 3,836 | 2,630 | |
Tax Expense (Benefit) [Abstract] | |||||
Tax Expense (Benefit) | (7) | 1,852 | (29) | 1,238 | |
Pre-Tax Income (Loss)[Abstract] | |||||
Pre-tax loss | $ (848) | $ (6,403) | $ (2,484) | $ (9,273) |
Segment Information (Schedule_2
Segment Information (Schedule of Additional Business Segment Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,249,348 | $ 1,536,702 |
Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,249,348 | 1,536,702 |
Commercial Lines Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 198,410 | 219,636 |
Personal Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 96,262 | 110,807 |
Runoff Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 180,080 | 349,850 |
Corporate [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 774,596 | $ 856,409 |
Reinsurance (Schedule of Reinsu
Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reinsurance [Abstract] | ||||
Ceded earned premiums | $ (14,106) | $ (17,616) | $ (29,451) | $ (34,399) |
Reinsurance recoveries | $ 15,226 | $ 20,573 | $ 24,243 | $ 54,303 |
Reinsurance (Loss Portfolio Tra
Reinsurance (Loss Portfolio Transfer) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Effects of Reinsurance [Line Items] | ||||
Receivable from reinsurer | $ 58,882 | |||
Loss Portfolio Transfer Contract Right Dispute [Member] | Pending Litigation [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Write off of receivable | $ 32,900 | $ 36,800 | ||
LPT | ||||
Effects of Reinsurance [Line Items] | ||||
Pre-tax loss | $ 21,700 |
Subordinated Debt Securities (S
Subordinated Debt Securities (Summary of the Nature and Terms of the Junior Subordinated Debt and Trust) (Details) - Junior subordinated debt shares in Thousands, $ in Thousands | 6 Months Ended | ||
Aug. 23, 2007 USD ($) shares | Jun. 21, 2005 USD ($) shares | Jun. 30, 2023 USD ($) item | |
Subordinated Borrowing [Line Items] | |||
Interest Payment Extension Period Elected | item | 20 | ||
Deferred interest payment term | item | 11 | ||
Deferred interest | $ 7,300 | ||
Hallmark Statutory Trust I [Member] | |||
Subordinated Borrowing [Line Items] | |||
Issue date | Jun. 21, 2005 | ||
Principal amount of trust preferred securities | $ 30,000 | ||
Principal amount of junior subordinated debt securities | $ 30,928 | ||
Maturity date of junior subordinated debt securities | Jun. 15, 2035 | ||
Trust common stock | shares | 928 | ||
Interest rate, per annum | Three Month LIBOR + 3.25% | ||
Current interest rate | 8.80% | ||
Hallmark Statutory Trust I [Member] | London Interbank Offered Rate L I B O R Extension [Member] | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.25% | ||
Hallmark Statutory Trust I I [Member] | |||
Subordinated Borrowing [Line Items] | |||
Issue date | Aug. 23, 2007 | ||
Principal amount of trust preferred securities | $ 25,000 | ||
Principal amount of junior subordinated debt securities | $ 25,774 | ||
Maturity date of junior subordinated debt securities | Sep. 15, 2037 | ||
Trust common stock | shares | 774 | ||
Interest rate, per annum | Three Month LIBOR + 2.90% | ||
Current interest rate | 8.45% | ||
Hallmark Statutory Trust I I [Member] | London Interbank Offered Rate L I B O R Extension [Member] | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.90% |
Senior Unsecured Notes (Details
Senior Unsecured Notes (Details) $ in Millions | Aug. 19, 2019 USD ($) | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Debt to capital ratio | 89.5 | |
Senior unsecured notes ("Notes") due August 15, 2029 | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 50 | |
Interest rate | 6.25% | |
Debt to capital ratio covenant | 35% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Deferred Amortized Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Deferred Policy Acquisition Costs [Abstract] | ||||
Deferred, additions | $ 10,401 | $ 8,231 | ||
Deferred, dispositions | $ (17,472) | $ (16,094) | ||
Amortized | (17,363) | (6,702) | 7,622 | 17,587 |
Net | $ (6,962) | $ 1,529 | $ (9,850) | $ 1,493 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Earnings per Share, Basic and Diluted) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings per Share [Abstract] | ||||
Weighted average shares - basic | 1,818 | 1,819 | 1,818 | 1,818 |
Effect of dilutive securities | 0 | 0 | ||
Weighted average shares - assuming dilution | 1,818 | 1,819 | 1,818 | 1,818 |
Net Periodic Pension Cost (Sche
Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Periodic Pension Cost | ||||
Interest cost | $ 111 | $ 75 | $ 222 | $ 150 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating |
Amortization of net loss | $ 31 | $ 27 | $ 62 | $ 54 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating |
Expected return on plan assets | $ (149) | $ (191) | $ (298) | $ (382) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating | Other Cost and Expense, Operating |
Net periodic pension cost | $ (7) | $ (89) | $ (14) | $ (178) |
Contributed amount | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes [Abstract] | ||
Effective income tax rate, continuing operations | 1.30% | (17.80%) |
Valuation Allowance | $ 41.4 | $ 23.9 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statement of Cash Flows) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 150,528 | $ 59,133 | $ 113,207 | |
Restricted cash | 14,781 | 29,486 | 4,019 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 165,309 | $ 88,619 | $ 117,226 | $ 356,677 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 1,631 | $ 3,666 |
Income taxes recovered | 3,000 | 15,098 |
Receivable for securities related to investment disposals | 476 | 3,970 |
Payable for securities related to investment purchases | $ 0 | $ 1,078 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | ||
Guaranty association assessments | $ 0 | $ 0 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive (Loss) Balances (Schedule of Accumulated Other Comprehensive (Loss) Income ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ (8,492) | |||
Other comprehensive loss: | ||||
Change in net actuarial loss decrease | $ 31 | $ 27 | 62 | $ 54 |
Tax effect on change in net actuarial loss increase/decrease | (6) | (6) | (13) | (12) |
Unrealized holding gains arising during the period | (467) | (5,745) | 2,396 | (8,826) |
Tax effect on unrealized gains arising during the period | 98 | 1,206 | (503) | 1,853 |
Reclassification adjustment for gains included in net realized gains | 1,343 | 123 | 1,343 | (23) |
Tax effect on reclassification adjustment for gains included in income tax expense | (282) | (26) | (282) | 5 |
Other comprehensive loss, net of tax | 717 | (4,421) | 3,003 | (6,949) |
Ending Balance | (5,489) | (5,489) | ||
Pension Asset (Liability) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (2,656) | (2,641) | ||
Other comprehensive loss: | ||||
Change in net actuarial loss decrease | 62 | 54 | ||
Tax effect on change in net actuarial loss increase/decrease | (13) | (12) | ||
Unrealized holding gains arising during the period | 0 | 0 | ||
Tax effect on unrealized gains arising during the period | 0 | 0 | ||
Reclassification adjustment for gains included in net realized gains | 0 | 0 | ||
Tax effect on reclassification adjustment for gains included in income tax expense | 0 | 0 | ||
Other comprehensive loss, net of tax | 49 | 42 | ||
Ending Balance | (2,607) | (2,599) | (2,607) | (2,599) |
Unrealized Gains (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (5,836) | 1,606 | ||
Other comprehensive loss: | ||||
Change in net actuarial loss decrease | 0 | 0 | ||
Tax effect on change in net actuarial loss increase/decrease | 0 | 0 | ||
Unrealized holding gains arising during the period | 2,396 | (8,826) | ||
Tax effect on unrealized gains arising during the period | (503) | 1,853 | ||
Reclassification adjustment for gains included in net realized gains | 1,343 | (23) | ||
Tax effect on reclassification adjustment for gains included in income tax expense | (282) | 5 | ||
Other comprehensive loss, net of tax | 2,954 | (6,991) | ||
Ending Balance | (2,882) | (5,385) | (2,882) | (5,385) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (8,492) | (1,035) | ||
Other comprehensive loss: | ||||
Change in net actuarial loss decrease | 62 | 54 | ||
Tax effect on change in net actuarial loss increase/decrease | (13) | (12) | ||
Unrealized holding gains arising during the period | 2,396 | (8,826) | ||
Tax effect on unrealized gains arising during the period | (503) | 1,853 | ||
Reclassification adjustment for gains included in net realized gains | 1,343 | (23) | ||
Tax effect on reclassification adjustment for gains included in income tax expense | (282) | 5 | ||
Other comprehensive loss, net of tax | 3,003 | (6,949) | ||
Ending Balance | $ (5,489) | $ (7,984) | $ (5,489) | $ (7,984) |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |
Options to extend | true |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense and Other Lease Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 538 | $ 707 | $ 1,077 | $ 1,380 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 430 | $ 598 | 857 | $ 1,145 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 |
Leases (Component of Lease and
Leases (Component of Lease and Other Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 11,014 | $ 12,481 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating lease liabilities | $ 13,321 | $ 14,759 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted-average remaining lease term - operating leases | 10 years 4 months 24 days | 10 years 6 months |
Weighted-average discount rate - operating leases | 6.25% | 6.23% |
Short-term lease payments | $ 0 |
Leases (Maturities) (Details)
Leases (Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Future minimum lease payments under non-cancellable leases: | ||
Remainder of year | $ 1,030 | |
Year 1 | 2,079 | $ 2,224 |
Year 2 | 2,185 | 2,421 |
Year 3 | 2,134 | 2,537 |
Year 4 | 2,171 | 2,497 |
Year 5 | 2,171 | |
Thereafter | 13,597 | |
Thereafter | 13,597 | |
Total future minimum lease payments | 23,196 | 25,447 |
Less imputed interest | (9,875) | (10,688) |
Total operating lease liability | $ 13,321 | $ 14,759 |