Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33251 | ||
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 65-0231984 | ||
Entity Address, Address Line One | 1110 W. Commercial Blvd. | ||
Entity Address, City or Town | Fort Lauderdale | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33309 | ||
City Area Code | 954 | ||
Local Phone Number | 958-1200 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | UVE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 359,743,055 | ||
Entity Common Stock, Shares Outstanding | 30,431,298 | ||
Documents Incorporated by Reference | The information required by Part III of this Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference to the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000891166 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Plante & Moran, PLLC |
Auditor Location | East Lansing, Michigan |
Auditor Firm ID | 166 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Debt Securities, Available-for-Sale | $ 1,014,626 | $ 1,040,455 | |
Equity securities, at fair value (cost: $102,431 and $51,151) | 85,469 | 47,334 | |
Investment real estate, net | 5,711 | 5,891 | |
Total invested assets | 1,105,806 | 1,093,680 | |
Cash and cash equivalents | 388,706 | 250,508 | |
Restricted cash and cash equivalents | [1] | 2,635 | 2,635 |
Prepaid reinsurance premiums | 282,427 | 240,993 | |
Reinsurance recoverable | 808,850 | 185,589 | |
Premiums receivable, net | 69,574 | 64,923 | |
Property and equipment, net | 51,404 | 53,682 | |
Deferred policy acquisition costs | 103,654 | 108,822 | |
Income taxes recoverable | 1,528 | 16,947 | |
Deferred income tax asset, net | 57,258 | 16,331 | |
Other assets | 18,312 | 22,031 | |
Total assets | 2,890,154 | 2,056,141 | |
LIABILITIES: | |||
Unpaid losses and loss adjustment expenses | 1,038,790 | 346,216 | |
Unearned premiums | 943,854 | 857,769 | |
Advance premium | 54,964 | 53,694 | |
Book overdraft | 0 | 26,759 | |
Reinsurance payable, net | 384,504 | 188,662 | |
Commission payable | 18,541 | 22,315 | |
Other liabilities and accrued expenses | 58,836 | 27,348 | |
Long-term debt, net | 102,769 | 103,676 | |
Total liabilities | 2,602,258 | 1,626,439 | |
Commitments and Contingencies (Note 15) | |||
STOCKHOLDERS’ EQUITY: | |||
Cumulative convertible preferred stock | 0 | 0 | |
Common stock | 472 | 470 | |
Treasury shares, at cost - 16,790 and 15,797 | (238,758) | (227,115) | |
Additional paid-in capital | 112,509 | 108,202 | |
Accumulated other comprehensive income (loss), net of taxes | (103,782) | (15,568) | |
Retained earnings | 517,455 | 563,713 | |
Total stockholders’ equity | 287,896 | 429,702 | |
Total liabilities and stockholders’ equity | $ 2,890,154 | $ 2,056,141 | |
[1]See “ —Note 5 (Insurance Operations),” for a discussion of the nature of the restrictions for restricted cash and cash equivalents. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, allowance for credit loss | $ 920 | $ 489 |
Available for sale debt securities, amortized cost | 1,152,852 | 1,061,192 |
Equity securities, amortized cost | $ 102,431 | $ 51,151 |
Cumulative convertible preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference (in USD per share) | $ 9.99 | $ 9.99 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares issued (in shares) | 47,179,000 | 47,018,000 |
Common stock, shares outstanding (in shares) | 30,389,000 | 31,221,000 |
Treasury stock, shares (in shares) | 16,790,000 | 15,797,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Direct premiums written | $ 1,845,786 | $ 1,671,252 | $ 1,517,479 |
Change in unearned premium | (86,085) | (74,634) | (121,856) |
Direct premium earned | 1,759,701 | 1,596,618 | 1,395,623 |
Ceded premium earned | (631,075) | (561,155) | (472,060) |
Premiums earned, net | 1,128,626 | 1,035,463 | 923,563 |
Net investment income | 25,785 | 12,535 | 20,393 |
Net realized gains (losses) on investments | 348 | 5,892 | 63,352 |
Net change in unrealized gains (losses) of equity securities | (13,145) | (4,032) | 25 |
Commission revenue | 53,168 | 41,649 | 33,163 |
Policy fees | 20,182 | 22,713 | 23,773 |
Other revenue | 7,694 | 7,631 | 8,501 |
Total revenues | 1,222,658 | 1,121,851 | 1,072,770 |
OPERATING COSTS AND EXPENSES | |||
Losses and loss adjustment expenses | 938,399 | 779,205 | 758,810 |
General and administrative expenses | 304,897 | 313,595 | 289,634 |
Total operating costs and expenses | 1,243,296 | 1,092,800 | 1,048,444 |
Interest and amortization of debt issuance costs | 6,609 | 638 | 95 |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) | (27,247) | 28,413 | 24,231 |
Income tax expense (benefit) | (4,990) | 8,006 | 5,126 |
NET INCOME (LOSS) | $ (22,257) | $ 20,407 | $ 19,105 |
Basic earnings (loss) per common share (in USD per share) | $ (0.72) | $ 0.65 | $ 0.60 |
Weighted average common shares outstanding - Basic (in shares) | 30,751 | 31,218 | 31,884 |
Diluted earnings (loss) per common share (in USD per share) | $ (0.72) | $ 0.65 | $ 0.60 |
Weighted average common shares outstanding - Diluted (in shares) | 30,751 | 31,307 | 31,972 |
Cash dividend declared per common share (in USD per share) | $ 0.77 | $ 0.77 | $ 0.77 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (22,257) | $ 20,407 | $ 19,105 |
Other comprehensive income (loss), net of taxes | (88,214) | (18,911) | (17,618) |
Comprehensive income (loss) | $ (110,471) | $ 1,496 | $ 1,487 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Shares | Treasury Shares Cumulative Effect, Period of Adoption, Adjusted Balance | Common stock | Common stock Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Shares Issued | Preferred Shares Issued Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Treasury Shares, beginning balance (in shares) at Dec. 31, 2019 | (14,069,000) | (14,069,000) | |||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2019 | 46,707,000 | 46,707,000 | |||||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Dec. 31, 2019 | 10,000 | 10,000 | |||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 493,901 | $ 0 | $ 493,901 | $ (196,585) | $ (196,585) | $ 467 | $ 467 | $ 0 | $ 96,036 | $ 96,036 | $ 573,619 | $ (597) | $ 573,022 | $ 20,364 | $ 597 | $ 20,961 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Vesting of performance share units (in shares) | 25,000 | [1] | 83,000 | ||||||||||||||||
Vesting of performance share units | (646) | $ (646) | $ 1 | (1) | |||||||||||||||
Vesting of restricted stock (in shares) | [1] | (4,000) | |||||||||||||||||
Vesting of restricted stock | (61) | $ (61) | |||||||||||||||||
Vesting of restricted stock units (in shares) | 35,000 | [1] | 90,000 | ||||||||||||||||
Vesting of restricted stock units | (608) | $ (608) | |||||||||||||||||
Grant and issue of stock awards (in shares) | 1,000 | ||||||||||||||||||
Grant and issue of stock awards | 30 | 30 | |||||||||||||||||
Retirement of treasury shares (in shares) | (64,000) | [1] | (64,000) | ||||||||||||||||
Retirement of treasury shares | 0 | $ 1,315 | (1,315) | ||||||||||||||||
Purchases of treasury stock (in shares) | (1,611,000) | ||||||||||||||||||
Purchases of treasury stock | (28,921) | $ (28,921) | |||||||||||||||||
Share-based compensation | 8,695 | 8,695 | |||||||||||||||||
Net income (loss) | 19,105 | 19,105 | |||||||||||||||||
Other comprehensive income (loss), net of taxes | (17,618) | (17,618) | |||||||||||||||||
Declaration of dividends | (24,615) | (24,615) | |||||||||||||||||
Treasury Shares, ending balance (in shares) at Dec. 31, 2020 | (15,680,000) | ||||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2020 | 46,817,000 | ||||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Dec. 31, 2020 | 10,000 | ||||||||||||||||||
Ending balance at Dec. 31, 2020 | 449,262 | $ (225,506) | $ 468 | $ 0 | 103,445 | 567,512 | 3,343 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Vesting of performance share units (in shares) | 16,000 | [1] | 62,000 | ||||||||||||||||
Vesting of performance share units | (241) | $ (241) | |||||||||||||||||
Vesting of restricted stock units (in shares) | 53,000 | [1] | 208,000 | ||||||||||||||||
Vesting of restricted stock units | (815) | $ (815) | $ 2 | (2) | |||||||||||||||
Retirement of treasury shares (in shares) | (69,000) | [1] | (69,000) | ||||||||||||||||
Retirement of treasury shares | 0 | $ 1,056 | (1,056) | ||||||||||||||||
Purchases of treasury stock (in shares) | (117,000) | ||||||||||||||||||
Purchases of treasury stock | (1,609) | $ (1,609) | |||||||||||||||||
Share-based compensation | 5,815 | 5,815 | |||||||||||||||||
Net income (loss) | 20,407 | 20,407 | |||||||||||||||||
Other comprehensive income (loss), net of taxes | (18,911) | (18,911) | |||||||||||||||||
Declaration of dividends | $ (24,206) | (24,206) | |||||||||||||||||
Treasury Shares, ending balance (in shares) at Dec. 31, 2021 | (15,797,000) | (15,797,000) | |||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2021 | 47,018,000 | 47,018,000 | |||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Dec. 31, 2021 | 10,000 | 10,000 | |||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 429,702 | $ (227,115) | $ 470 | $ 0 | 108,202 | 563,713 | (15,568) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Vesting of performance share units (in shares) | 9,000 | [1] | 33,000 | ||||||||||||||||
Vesting of performance share units | (104) | $ (104) | $ 1 | (1) | |||||||||||||||
Grants of restricted stock awards (in shares) | 53,000 | ||||||||||||||||||
Grants of restricted stock awards | 0 | ||||||||||||||||||
Vesting of restricted stock units (in shares) | 27,000 | [1] | 111,000 | ||||||||||||||||
Vesting of restricted stock units | (314) | $ (314) | $ 1 | (1) | |||||||||||||||
Retirement of treasury shares (in shares) | (36,000) | [1] | (36,000) | ||||||||||||||||
Retirement of treasury shares | 0 | $ 418 | (418) | ||||||||||||||||
Purchases of treasury stock (in shares) | (993,000) | ||||||||||||||||||
Purchases of treasury stock | (11,643) | $ (11,643) | |||||||||||||||||
Share-based compensation | 4,727 | 4,727 | |||||||||||||||||
Net income (loss) | (22,257) | (22,257) | |||||||||||||||||
Other comprehensive income (loss), net of taxes | (88,214) | (88,214) | |||||||||||||||||
Declaration of dividends | $ (24,001) | (24,001) | |||||||||||||||||
Treasury Shares, ending balance (in shares) at Dec. 31, 2022 | (16,790,000) | (16,790,000) | |||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2022 | 47,179,000 | 47,179,000 | |||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Dec. 31, 2022 | 10,000 | 10,000 | |||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 287,896 | $ (238,758) | $ 472 | $ 0 | $ 112,509 | $ 517,455 | $ (103,782) | ||||||||||||
[1]All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of stock options exercised, restricted stock vested, performance share units vested, or restricted stock units vested. These shares have been cancelled by the Company. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Cash dividend declared per common share (in USD per share) | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.77 | $ 0.77 | $ 0.77 |
Cash dividend declared per preferred share (in USD per share) | $ 1 | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities: | ||||
Net income (loss) | $ (22,257) | $ 20,407 | $ 19,105 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Bad debt expense | 708 | 463 | 526 | |
Depreciation and amortization | 7,296 | 6,913 | 5,107 | |
Amortization of share-based compensation | 4,727 | 5,815 | 8,695 | |
Amortization of debt issuance costs | 703 | 56 | 0 | |
Provision for (or reversal of) credit losses on available-for-sale debt securities | 431 | 303 | (605) | |
Book overdraft increase (decrease) | (26,759) | (32,640) | (31,002) | |
Net realized (gains) losses on sale of investments | (348) | (5,892) | (63,352) | |
Net change in unrealized gains (losses) of equity securities | 13,145 | 4,032 | (25) | |
Amortization of premium/accretion of discount, net | 8,125 | 9,730 | 4,629 | |
Deferred income taxes | (12,126) | (4,267) | 2,789 | |
Excess tax (benefit) shortfall from share-based compensation | 222 | 661 | 237 | |
Other | (21) | 148 | 162 | |
Issuance of common stock | 0 | 0 | 30 | |
Net change in assets and liabilities relating to operating activities: | ||||
Prepaid reinsurance premiums | (41,434) | (25,270) | (40,515) | |
Reinsurance recoverable | (623,261) | (25,172) | 32,819 | |
Premiums receivable, net | (5,358) | 1,495 | (3,525) | |
Accrued investment income | (2,059) | (1,256) | 1,544 | |
Income taxes recoverable | 15,197 | 12,968 | 3,470 | |
Deferred policy acquisition costs, net | 5,168 | 1,792 | (18,732) | |
Other assets | (853) | 697 | 862 | |
Unpaid losses and loss adjustment expenses | 692,574 | 23,751 | 54,705 | |
Unearned premiums | 86,085 | 74,634 | 121,856 | |
Commission payable | (3,774) | (1,494) | 2,378 | |
Reinsurance payable, net | 195,842 | 178,351 | (112,269) | |
Other liabilities and accrued expenses | 31,272 | (15,979) | 21,872 | |
Advance premium | 1,270 | 4,132 | 18,587 | |
Net cash provided by (used in) operating activities | 324,515 | 234,378 | 29,348 | |
Cash flows from investing activities: | ||||
Proceeds from sale of property and equipment | 97 | 162 | 182 | |
Purchases of property and equipment | (4,899) | (7,226) | (17,216) | |
Purchases of equity securities | (76,629) | (55,447) | (116,265) | |
Purchases of available-for-sale debt securities | (200,011) | (450,383) | (1,074,629) | |
Purchases of investment real estate, net | (6) | (7) | (7) | |
Proceeds from sales of equity securities | 34,178 | 85,103 | 81,559 | |
Proceeds from sales of available-for-sale debt securities | 29,439 | 96,966 | 1,008,436 | |
Proceeds from sales of investment real estate | 0 | 2,591 | 0 | |
Proceeds from sale of assets held for sale | 0 | 9,296 | 0 | |
Maturities of available-for-sale debt securities | 68,970 | 89,541 | 139,982 | |
Net cash provided by (used in) investing activities | (148,861) | (229,404) | 22,042 | |
Cash flows from financing activities: | ||||
Proceeds from issuance of long-term debt | 0 | 100,000 | 0 | |
Debt issuance costs paid | (140) | (3,365) | 0 | |
Preferred stock dividend | (10) | (10) | (10) | |
Common stock dividend | (23,774) | (24,191) | (24,547) | |
Purchase of treasury stock | (11,643) | (1,609) | (28,921) | |
Payments related to tax withholding for share-based compensation | (418) | (1,056) | (1,315) | |
Repayment of debt | (1,471) | (1,471) | (1,470) | |
Net cash provided by (used in) financing activities | (37,456) | 68,298 | (56,263) | |
Cash and cash equivalents, and restricted cash and cash equivalents: | ||||
Net increase (decrease) during the period | 138,198 | 73,272 | (4,873) | |
Balance, beginning of period | 253,143 | 179,871 | 184,744 | |
Balance, end of period | 391,341 | 253,143 | 179,871 | |
Supplemental cash and non-cash flow disclosures: | ||||
Interest paid | 5,797 | 127 | 102 | |
Income taxes paid | 4,202 | 24 | 21 | |
Income tax refund | 12,485 | 1,381 | 1,390 | |
Cash and cash equivalents, and restricted cash and cash equivalents within the Consolidated Balance Sheets | ||||
Cash and cash equivalents | 388,706 | 250,508 | 167,156 | |
Restricted cash and cash equivalents | [1] | 2,635 | 2,635 | 12,715 |
Total cash and cash equivalents and restricted cash and cash equivalents | $ 391,341 | $ 253,143 | $ 179,871 | |
[1]See “ —Note 5 (Insurance Operations),” for a discussion of the nature of the restrictions for restricted cash and cash equivalents. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”, and together with its wholly-owned subsidiaries, “the Company”) is a Delaware corporation incorporated in 1990. The Company is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned insurance company subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”, and together with UPCIC, the “Insurance Entities”), the Company is principally engaged in the property and casualty insurance business offered primarily through its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance offered in 19 states as of December 31, 2022, including Florida, which comprises the majority of the Company’s policies in force. See “—Note 5 (Insurance Operations) ” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and investment returns on funds invested on cash flows in excess of those retained and used for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed on behalf of the Insurance Entities, policy fees collected from policyholders by the Company’s wholly-owned managing general agent (“MGA”) subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The Company’s wholly-owned adjusting company receives claims-handling fees from the Insurance Entities. The Insurance Entities are reimbursed for these fees on claims that are subject to recovery under the Insurance Entities’ respective reinsurance programs. These fees, after expenses, are recorded in the Consolidated Financial Statements as an adjustment to losses and loss adjustment expense (“LAE”). The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of UVE and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. To conform to the current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently Adopted Accounting Pronouncements None Accounting Policies The significant accounting policies followed by the Company are summarized as follows: Consolidation Policy : The Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and VIEs in which the Company is determined to be the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the Company’s decision-making ability and its ability to influence activities that significantly affect the economic performance of the VIE. Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks or drafts not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately in the face of the Consolidated Balance Sheets. See “— Note 5 (Insurance Operations) ” for discussions on the nature of the restrictions. Investment, Securities Available for Sale . The Company’s investments in debt securities and short-term investments are classified as available-for-sale with maturities of greater than three months. Available-for-sale debt securities and short-term investments are recorded at fair value in the Consolidated Balance Sheet, net of any allowance for credit losses, if any. Unrealized gains and losses, excluding the credit loss portion, on available-for-sale debt securities and short-term investments are excluded from earnings and reported as a component of other comprehensive income (“OCI”), net of related deferred taxes until reclassified to earnings upon the consummation of a sales transaction with an unrelated third party. Gains and losses realized on the disposition of available-for-sale debt securities are determined on the first in, first out (“FIFO”) basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. Allowance for Credit Losses-Available-For-Sale Securities. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agencies, market sentiment and trends and adverse conditions specifically related to the security, among other quantitative and qualitative factors utilized at establishing an estimate for credit losses. If the assessment indicates that a credit loss exists, the present values of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in OCI. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense and are reported as general and administrative expenses. Losses are charged against the allowance when management believes an available-for-sale debt security is confirmed as uncollected or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale securities totaled $7.0 million and $4.9 million as of December 31, 2022 and December 31, 2021, respectively and is evaluated in the estimate for credit losses. Accrued interest receivable is included under Other Assets in the Consolidated Balance Sheet. Investment, Equity Securities. The Company’s investments in equity securities are recorded at fair value in the Consolidated Balance Sheet with changes in the fair value of equity securities reported in current period earnings in the Consolidated Statements of Income within net change in unrealized gains (losses) of equity securities as they occur. Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. Assets Held for Sale. The Company considers properties, including land, to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Company ceases depreciation. Assets held for sale are stated separately in the accompanying Consolidated Balance Sheets. There were no assets held for sale as of December 31, 2022 and December 31, 2021. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation and is depreciated on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three years for equipment to twenty-seven-and-one-half years for buildings and improvements. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Software is capitalized and amortized over three years. The Company reviews its property and equipment for impairment annually and/or whenever changes in circumstances indicate that the carrying amount may not be recoverable. Premiums Receivable. Generally, premiums are collected prior to or during the policy period as permitted under the Insurance Entities’ payment plans. Credit risk is minimized through the effective administration of policy payment plans whereby the rules governing policy cancellation minimize circumstances in which the Company extends insurance coverage without having received the corresponding premiums. The Company performs a policy-level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. Under ASC 326 and given the short-term nature of these receivables, the Company employed the aging method to estimate credit losses by pooling receivables based on the levels of delinquency and evaluating current conditions and reasonable and supportable forecasts. As of the years ended December 31, 2022 and 2021, the Company recorded estimated credit losses of $0.9 million and $0.6 million, respectively. Recognition of Premium Revenues. Direct and ceded premiums are recognized as revenue on a pro rata basis over the policy term or over the term of the reinsurance agreement. The portion of direct premiums that will be earned in the future is deferred and reported as unearned premiums. The portion of ceded premiums that will be earned in the future is deferred and reported as prepaid reinsurance premiums (ceded unearned premiums). Recognition of Commission Revenue . Commission revenue generated from reinsurance brokerage commission earned on ceded premium by the Insurance Entities is recognized pro-rata over the term of the reinsurance agreements which coincides with the completion of the service obligations under the brokerage agreements. Policy Fees. Policy fees, which represents fees paid by policyholders to the MGA’s on all new and renewal insurance policies, are generally recognized as income upon policy inception, which coincides with the completion of our service obligation. Other Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in installments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the service obligation is met by the Company. Deferred Policy Acquisition Costs . The Company defers direct commissions and premium taxes relating to the successful acquisition or renewal of insurance policies and defers the costs until recognized as expense over the terms of the policies to which they are related. Deferred policy acquisition costs are recorded at their estimated realizable value. Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. The Company assesses goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that the Company may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. Debt, Net of Debt Issuance Costs. The Company records debt, net in the Consolidated Balance Sheets at carrying value. The Company incurs specific incremental costs in connection with the issuance of the Company’s debt instruments. These debt issuance costs include issue costs and other direct costs payable to third parties and are recorded as a direct deduction from the carrying value of the associated debt liability in the Consolidated Balance Sheets. The Company amortizes the deferred financing costs as interest expense over the term of the related debt using the interest method in the Consolidated Statements of Income. Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and LAE includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data and actuarial analysis and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. The Company estimates and accrues its right to subrogate reported or estimated claims against other parties. Subrogated claims are recorded at amounts estimated to be received from the subrogated parties, net of related costs and netted against unpaid losses and LAE. Inherent in the estimates of ultimate claims and subrogation are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are subject to adverse weather conditions, such as hurricanes, tornadoes, ice storms and tropical storms. The actuarial methods for making estimates for unpaid losses, LAE and subrogation recoveries and for establishing the resulting net liability are periodically reviewed, and any adjustments are reflected in current earnings. Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims, unamortized policy acquisition costs and expected policy maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2022 and 2021. Reinsurance. Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the gross insurance liability to the Company. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Under ASC 326 and given the short-term nature of these receivables, the Company considered the effects of credit enhancements (i.e. funds withheld liability, letters of credit and trust arrangements) and other qualitative factors that allowed it to conclude there was no material risk exposure. There is no estimated credit loss allowance as of December 31, 2022 and December 31, 2021. Income Taxes . The Company accounts for income taxes under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes include both estimated federal and state income taxes. Income (Loss) Per Share of Common Stock . Basic earnings per share excludes dilution and is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted average number of shares of Common Stock outstanding during the period plus the impact of all potentially dilutive common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no transfers during the years ended December 31, 2022 or 2021. Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is either subject to annual measures or time vesting. The fair value of stock option awards is estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— Note 9 (Share-Based Compensation) .” The fair value of the restricted share grants, performance share units and restricted stock units are determined based on the market price on the date of grant. Statutory Accounting. UPCIC and APPCIC are highly regulated and prepare and file financial statements in conformity with the statutory accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”) and the National Association of Insurance Commissioners (“NAIC”), which differ from GAAP. The FLOIR requires insurance companies domiciled in Florida to prepare their statutory financial statements in accordance with the NAIC Accounting Practices and Procedures Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2022 and 2021 and the results of operations and cash flows, for the years ended December 31, 2022, 2021 and 2020, for their regulatory filings have been prepared in accordance with statutory accounting principles as promulgated by the FLOIR and the NAIC. The statutory accounting principles are more restrictive than GAAP and are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Available-for-Sale Securities The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): December 31, 2022 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 12,602 $ — $ — $ (938) $ 11,664 Corporate bonds 788,737 (729) 130 (93,077) 695,061 Mortgage-backed and asset-backed securities 327,166 — 148 (39,707) 287,607 Municipal bonds 14,924 (2) — (2,551) 12,371 Redeemable preferred stock 9,423 (189) — (1,311) 7,923 Total $ 1,152,852 $ (920) $ 278 $ (137,584) $ 1,014,626 December 31, 2021 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 27,076 $ — $ 64 $ (334) $ 26,806 Corporate bonds 687,058 (371) 843 (13,725) 673,805 Mortgage-backed and asset-backed securities 322,844 — 194 (6,920) 316,118 Municipal bonds 14,925 (1) — (350) 14,574 Redeemable preferred stock 9,289 (117) 28 (48) 9,152 Total $ 1,061,192 $ (489) $ 1,129 $ (21,377) $ 1,040,455 The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): December 31, 2022 December 31, 2021 % of Total % of Total Average Credit Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 297,475 29.3 % $ 321,975 31.0 % AA 154,975 15.3 % 139,186 13.4 % A 327,427 32.3 % 339,500 32.6 % BBB 232,316 22.9 % 234,358 22.5 % No Rating Available 2,433 0.2 % 5,436 0.5 % Total $ 1,014,626 100.0 % $ 1,040,455 100.0 % The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position. The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): December 31, 2022 December 31, 2021 Amortized Fair Value Amortized Fair Value Mortgage-backed securities: Agency $ 157,672 $ 133,928 $ 147,992 $ 143,819 Non-agency 60,328 50,478 59,906 58,263 Asset-backed securities: Auto loan receivables 62,128 59,370 67,352 66,877 Credit card receivables 657 612 4,741 4,719 Other receivables 46,381 43,219 42,853 42,440 Total $ 327,166 $ 287,607 $ 322,844 $ 316,118 The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): December 31, 2022 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 2 $ 2,721 $ (110) 5 $ 8,943 $ (828) Corporate bonds 40 26,563 (2,910) 247 325,992 (46,451) Mortgage-backed and asset-backed securities 64 52,751 (2,974) 146 219,189 (36,733) Municipal bonds — — — 3 6,621 (1,458) Redeemable preferred stock 1 95 (51) — — — Total 107 $ 82,130 $ (6,045) 401 $ 560,745 $ (85,470) December 31, 2021 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 4 $ 18,913 $ (111) 4 $ 5,016 $ (223) Corporate bonds 249 378,595 (7,468) 18 17,356 (679) Mortgage-backed and asset-backed securities 145 274,883 (5,969) 11 23,273 (951) Municipal bonds 5 9,811 (269) — — — Redeemable preferred stock 1 200 (1) — — — Total 404 $ 682,402 $ (13,818) 33 $ 45,645 $ (1,853) Unrealized losses on available-for-sale debt securities in the above table as of December 31, 2022 and 2021 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell and it is likely management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity. The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2020 $ 148 $ — $ 38 $ 186 Provision for (or reversal of) credit loss expense 223 1 79 303 Balance, December 31, 2021 371 1 117 489 Provision for (or reversal of) credit loss expense 358 1 72 431 Balance, December 31, 2022 $ 729 $ 2 $ 189 $ 920 See “—Note 2 (Summary of Significant Accounting Policies — Allowance for Credit Losses-Available-For-Sale Securities)” for more information about the methodology and significant inputs used to measure the amount related to expected credit losses on available-for-sale debt securities. The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): December 31, 2022 Amortized Cost Fair Value Due in one year or less $ 76,691 $ 75,226 Due after one year through five years 569,239 516,320 Due after five years through ten years 479,147 401,132 Due after ten years 25,231 19,831 Perpetual maturity securities 2,544 2,117 Total $ 1,152,852 $ 1,014,626 All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, that shorten the lifespan of contractual maturity dates. The following table provides certain information related to available-for-sale debt securities, equity securities and investment real estate during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Proceeds from sales and maturities (fair value): Available-for-sale debt securities (1) $ 98,409 $ 186,507 $ 1,148,418 Equity securities $ 34,178 $ 85,103 $ 81,559 Gross realized gains on sale of securities: Available-for-sale debt securities (1) $ 242 $ 2,649 $ 57,378 Equity securities $ 2,240 $ 3,005 $ 6,438 Gross realized losses on sale of securities: Available-for-sale debt securities $ (2,060) $ (2,434) $ (464) Equity securities $ (74) $ (208) $ — Realized gains on sales of investment real estate (2) $ — $ 401 $ — (1) In the third and fourth quarters of 2020, the Company took advantage of the market recovery and recognized $56.4 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position that is included in net realized gains (losses) on investment in the Consolidated Statements of Income for the year ended December 31, 2020. (2) During the year ended December 31, 2021 the Company completed the sale of a non-income producing investment real estate property. The Company received net cash proceeds of approximately $2.6 million and recognized a pre-tax gain of approximately $0.4 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021. This investment real estate property was not previously reported under assets held for sale since it was actively marketed and sold within the first quarter of 2021. The following table presents the components of net investment income, comprised primarily of interest and dividends for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Available-for-sale debt securities $ 18,699 $ 11,926 $ 19,091 Equity securities 3,288 2,651 2,445 Cash and cash equivalents (1) 5,945 51 960 Other (2) 492 928 1,050 Total investment income 28,424 15,556 23,546 Less: Investment expenses (3) (2,639) (3,021) (3,153) Net investment income $ 25,785 $ 12,535 $ 20,393 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. Equity Securities The following table provides the unrealized gains (losses) recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Years Ended December 31, 2022 2021 2020 Unrealized gains (losses) recognized during the reported period $ (13,197) $ (3,459) $ 25 Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Income Producing: Investment real estate $ 7,097 $ 7,091 Less: Accumulated depreciation (1,386) (1,200) Investment real estate, net $ 5,711 $ 5,891 The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Depreciation expense on investment real estate $ 186 $ 186 $ 415 Assets Held for Sale Sold during the year ended December 31, 2021 During the first quarter of 2021, the Company committed to a plan to actively market an income-producing investment real estate property and classified the investment property to assets held for sale. On September 30, 2021, the Company completed the sale and received net cash proceeds of approximately $8.9 million and recognized a pre-tax gain of approximately $2.3 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021. During the second quarter of 2021, the Company committed to a plan to actively market the sale of a real estate property previously included in property and equipment, net and classified the real estate property to assets held for sale. The real estate property was located in Pompano Beach, Florida. On October 8, 2021, the Company completed the sale and received net cash proceeds of approximately $0.4 million and recognized a pre-tax gain of approximately $0.2 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance programs consist principally of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. Notwithstanding the purchase of such reinsurance, the Company is responsible for certain retained loss amounts before reinsurance attaches and for insured losses related to catastrophes and other events that exceed coverage provided by the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due. To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2022 Standard AM Best and Poor’s Moody’s Due from as of Reinsurer Company Services, Inc. Service, Inc. 2022 2021 Allianz Risk Transfer A+ AA- Aa3 $ 285,323 $ — Florida Hurricane Catastrophe Fund “FHCF” (1) n/a n/a n/a 134,411 136,298 Various Lloyd’s of London Syndicates (2) A A+ n/a 101,482 — Chubb Tempest Reinsurance Ltd. A++ AA Aa3 51,319 — Markel Bermuda Ltd. A A A2 50,981 — DaVinci Reinsurance Ltd. A A+ A3 48,115 — Renaissance Reinsurance Ltd. A+ A+ A1 38,768 20,051 D E Shaw Re (Bermuda) Ltd. (3) n/a n/a n/a 16,680 — Munich Reinsurance America Inc. A+ AA- Aa3 14,616 — Everest Reinsurance Co A+ A+ A1 11,536 — Upsilon RFO Re Ltd. (3) n/a n/a n/a 11,201 — Lumen Re Ltd. (4) A n/a n/a 8,913 — Allianz Risk Transfer (Bermuda) Ltd. — — — — 44,618 Total (5) $ 773,345 $ 200,967 (1) No rating is available, because the fund is not rated. (2) No rating available for Moody’s Investors Service, Inc. (3) No rating is available, because the reinsurer is fully collateralized with a trust agreement. (4) No rating available for Standard and Poor’s Rating Service and Moody’s Investors Service, Inc. (5) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2022 Premiums Premiums Losses and Loss Direct $ 1,845,786 $ 1,759,701 $ 1,972,541 Ceded (672,508) (631,075) (1,034,142) Net $ 1,173,278 $ 1,128,626 $ 938,399 For the Year Ended December 31, 2021 Premiums Premiums Losses and Loss Direct $ 1,671,252 $ 1,596,618 $ 1,189,444 Ceded (586,425) (561,155) (410,239) Net $ 1,084,827 $ 1,035,463 $ 779,205 For the Year Ended December 31, 2020 Premiums Premiums Losses and Loss Direct $ 1,517,479 $ 1,395,623 $ 1,080,058 Ceded (512,576) (472,060) (321,248) Net $ 1,004,903 $ 923,563 $ 758,810 The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2022 2021 Prepaid reinsurance premiums $ 282,427 $ 240,993 Reinsurance recoverable on paid losses and LAE $ 10,170 $ 69,729 Reinsurance recoverable on unpaid losses and LAE 798,680 115,860 Reinsurance recoverable $ 808,850 $ 185,589 |
Insurance Operations
Insurance Operations | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Insurance Operations | INSURANCE OPERATIONS Deferred Policy Acquisition Costs The Company defers certain costs in connection with written premium, called Deferred Policy Acquisition Costs (“DPAC”). DPAC is amortized over the effective period of the related insurance policies. The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 DPAC, beginning of year $ 108,822 $ 110,614 $ 91,882 Capitalized Costs 212,067 222,329 217,886 Amortization of DPAC (217,235) (224,121) (199,154) DPAC, end of year $ 103,654 $ 108,822 $ 110,614 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation (“FLOIR”). The Insurance Entities are also subject to regulations and standards of regulatory authorities in other states where they are licensed, although as Florida-domiciled insurers, their principal regulatory authority is the FLOIR. These standards and regulations include a requirement that the Insurance Entities maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned funds of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by the Insurance Entities to their immediate parent company, Protection Solutions, Inc. (“PSI”, formerly known as Universal Insurance Holding Company of Florida), without prior regulatory approval is limited by the provisions of the Florida Insurance Code. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. In accordance with Florida Insurance Code, and based on the calculations performed by the Company as of December 31, 2022, UPCIC and APPCIC currently are not able to pay any ordinary dividends during 2023. For the years ended December 31, 2022 and 2021, no dividends were paid from the Insurance Entities to PSI. The Florida Insurance Code requires a residential property insurance company to maintain statutory surplus as to policyholders of at least $15.0 million or ten percent of the insurer’s total liabilities, whichever is greater. The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differs from GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands): As of December 31, 2022* 2021 Statutory capital and surplus UPCIC $ 400,866 $ 378,750 APPCIC $ 22,786 $ 16,104 Ten percent of total liabilities UPCIC $ 151,190 $ 122,292 APPCIC $ 2,023 $ 649 * Unaudited As of the dates in the table above, the Insurance Entities each exceeded the minimum statutory capitalization requirement. The Insurance Entities also met the capitalization requirements of the other states in which they are licensed as of December 31, 2022. Annually, the Insurance Entities each are also required to adhere to prescribed premium-to-capital surplus ratios and each have met those requirements. The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Years Ended December 31, 2022* 2021 2020 Combined net income (loss) $ (141,777) $ (102,515) $ (104,339) * Unaudited The Insurance Entities each are required annually to comply with the NAIC risk-based capital (“RBC”) requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are used by regulators to determine appropriate regulatory actions relating to insurers who show signs of a weak or deteriorating condition. As of December 31, 2022, based on calculations using the appropriate NAIC RBC formula, the Insurance Entities each reported total adjusted capital in excess of the requirements. The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2022 2021 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,246 $ 3,441 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Land $ 5,344 $ 5,344 Building 40,344 35,878 Computers 11,887 9,731 Furniture 3,956 3,170 Automobiles and other vehicles 11,786 11,427 Software 6,894 6,775 Total 80,211 72,325 Less: Accumulated depreciation and amortization (29,143) (22,808) Net of accumulated depreciation and amortization 51,068 49,517 Construction in progress 336 4,165 Property and equipment, net $ 51,404 $ 53,682 Depreciation and amortization expense was $7.1 million, $6.6 million and $4.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Surplus note $ 5,515 $ 6,985 5.625% Senior unsecured notes 100,000 100,000 Total principal amount 105,515 106,985 Less: unamortized debt issuance costs (2,746) (3,309) Total long-term debt, net $ 102,769 $ 103,676 Surplus Note On November 9, 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program (the “ICBUI”). The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. The carrying amount of the surplus note is included in the statutory capital and surplus of UPCIC of approximately $5.5 million as of December 31, 2022. The effective interest rate paid on the surplus note was 2.83%, 1.50% and 1.05% for the years ended December 31, 2022, 2021 and 2020, respectively. Any payment of principal or interest by UPCIC on the surplus note must be approved by the Commissioner of the FLOIR. Quarterly principal payments of $368 thousand are due through 2026. Aggregate principal payments of approximately $1.5 million were made during each of the years ended December 31, 2022, 2021 and 2020. UPCIC is in compliance with each of the loan’s covenants as implemented by rules promulgated by the SBA. An event of default will occur under the surplus note, as amended, if UPCIC: (i) defaults in the payment of the surplus note; (ii) fails to submit quarterly filings to the FLOIR; (iii) fails to maintain at least $50 million of surplus during the term of the surplus note, except for certain situations; (iv) misuses proceeds of the surplus note; (v) makes any misrepresentations in the application for the program; (vi) pays any dividend when principal or interest payments are past due under the surplus note; or (vii) fails to maintain a level of surplus and reinsurance sufficient to cover in excess of UPCIC’s 1-in-100 year probable maximum loss as determined by a hurricane loss model accepted by the Florida Commission on Hurricane Loss Projection Methodology as certified by the FLOIR annually. To avoid a penalty rate, UPCIC must maintain either a ratio of net written premium to surplus of at least 2:1 or a ratio of gross written premiums to surplus of at least 6:1 according to a calculation method set forth in the surplus note. As of December 31, 2022, UPCIC’s net written premium to surplus ratio was in excess of the required minimums and, therefore, UPCIC is not subject to the penalty rate. The surplus note ranks subordinate in right of payment to the Senior Unsecured Notes and Unsecured Revolving Loan described below. Senior Unsecured Notes On November 23, 2021, the Company entered into Note Purchase Agreements with certain institutional accredited investors and qualified institutional buyers pursuant to which the Company issued and sold $100 million of 5.625% Senior Unsecured Notes due 2026 (the “Notes”). The Purchase Agreements contain certain customary representations, warranties and covenants made by the Company. The Notes were offered and sold by the Company in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended. On March 24, 2022, the Registration Statement registering the exchange of Notes for registered Notes was declared effective by the Securities and Exchange Commission, and all of the Notes have since been exchanged for registered Notes with identical financial terms. The Notes are senior unsecured debt obligations that bear interest at the rate of 5.625% per annum, payable semi-annually in arrears on May 30 th and November 30 th of each year, beginning on May 30, 2022. The Notes are subject to adjustment from time to time in the event of a downgrade or subsequent upgrade of the rating assigned to the Notes. The Notes mature on November 30, 2026 at which time the entire $100.0 million of principal is due and payable. At any time on or after November 30, 2023, the Company may redeem all or part of the Notes at redemption prices (expressed as percentages of the principal amount) equal to (i) 102.81250% for the twelve-month period beginning on November 30, 2023; (ii) 101.40625% for the twelve-month period beginning on November 30, 2024 and (iii) 100.000% at any time thereafter, plus accrued and unpaid interest up to, but not including the redemption date. On November 23, 2021, the Company entered into an indenture, relating to the issuance of the Notes (the “Indenture”), with UMB Bank National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or exchangeable, other than pursuant to the Exchange Offer, for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The indenture governing the Notes contains financial covenants, terms, events of default and related cure provisions that are customary in agreements used in connection with similar transactions. As of December 31, 2022, the Company was in compliance with all applicable covenants, including financial covenants. T he Notes are unsecured senior obligations of the Company, are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank equally in right of payment to the Unsecured Revolving Loan described below. Unsecured Revolving Loan The Company entered into a 364-day credit agreement and related revolving loan (“2021 Revolving Loan”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), in August 2021. The Company and JPMorgan subsequently agreed during the term of the 2021 Revolving Loan to extend its expiration date until October 31, 2022. T he Company renewed this agreement on October 31, 2022, increasing the credit facility to $37.5 million and modifying other terms. The October 31, 2022 Revolving Loan agreement (“2022 Revolving Loan”) makes available to the Company an unsecured revolving credit facility with an aggregate commitment not to exceed $37.5 million (previously $35.0 million) and carries an interest rate of prime rate plus a margin of 2%. The Company must pay an annual commitment of 0.50% of the unused portion of the commitment. Borrowings under the 2022 Revolving Loan mature on October 30, 2023, 364 days after the inception date of the 2022 Revolving Loan. The 2022 Revolving Loan is subject to annual renewals. The 2022 Revolving Loan contains customary financial and other covenants, with which the Company is in compliance. The Company did not borrow any amount under the 2021 Revolving Loan, and as of December 31, 2022, the Company has not borrowed any amount under the 2022 Revolving Loan. Maturities The following table provides an estimate of aggregate principal payments to be made for the amounts due on long-term debt as of December 31, 2022 (in thousands): 2023 $ 1,471 2024 1,471 2025 1,471 2026 101,102 2027 — Thereafter — Total long-term debt maturities 105,515 Less: unamortized debt issuance costs (2,746) Total long-term debt maturities, net $ 102,769 Interest Expense The following table provides interest expense related to long-term debt during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Interest Expense: Surplus notes $ 172 $ 113 $ 95 5.625% Senior unsecured notes 5,734 469 — Non-cash expense (1) 703 56 — Total $ 6,609 $ 638 $ 95 (1) Represents amortization of debt issuance costs. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Cumulative Convertible Preferred Stock As of December 31, 2022 and 2021, the Company had shares outstanding of Series A Preferred Stock. Each share of Series A Preferred Stock is convertible by the Company into shares of common stock. The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2022 2021 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 The Series A Preferred Stock pays a cumulative dividend of $0.25 per share per quarter. The Company declared and paid aggregate dividends to the holder of record of the Company’s Series A Preferred Stock of $10 thousand for each of the years ended December 31, 2022 and 2021. Common Stock Shares Repurchased From time to time, the Company’s Board of Directors may authorize share repurchase programs under which the Company may repurchase shares of the Company’s common stock in the open market. The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Dollar Repurchased During the Year Aggregate Price per Plan Expiration Amount Ended December 31, Purchase Share Completed or Date Authorized Date (1) Authorized 2022 2021 Price Repurchased Expired December 15, 2022 December 15, 2024 $ 7,997 186,435 $ 1,843 $ 9.89 November 3, 2020 November 3, 2022 $ 20,000 806,324 — 9,800 $ 12.15 November 2022 November 3, 2020 November 3, 2022 $ 20,000 — 116,886 $ 1,609 $ 13.77 November 2022 (1) In November 2020, our Board of Directors authorized a share repurchase of up to $20 million of shares of common stock, which expired in November 2022. At the end of this prior authorization, the Company had repurchased slightly more than $12 million of shares of common stock. On December 15, 2022, our Board of Directors authorized a successor share repurchase program under which the Company is authorized to repurchase up to $7,997,057 of shares of common stock through December 15, 2024, which represents the unused portion of the predecessor authorization. Dividends Declared The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2022 2021 2020 Per Share Aggregate Per Share Aggregate Per Share Aggregate First Quarter $ 0.16 $ 5,004 $ 0.16 $ 5,027 $ 0.16 $ 5,219 Second Quarter $ 0.16 $ 4,990 $ 0.16 $ 5,039 $ 0.16 $ 5,164 Third Quarter $ 0.16 $ 4,994 $ 0.16 $ 5,034 $ 0.16 $ 5,130 Fourth Quarter $ 0.29 $ 9,003 $ 0.29 $ 9,096 $ 0.29 $ 9,092 (1) Includes dividend equivalents due to employees who hold performance share units, restricted share units or restricted stock awards which are subject to time-vesting conditions. Applicable provisions of the Delaware General Corporation Law may affect the ability of the Company to declare and pay dividends on its Common Stock. In particular, pursuant to the Delaware General Corporation Law, a company may pay dividends out of its surplus, as defined, or out of its net profits, for the fiscal year in which the dividend is declared and/or the preceding year. Surplus is defined in the Delaware General Corporation Law to be the excess of net assets of the company over capital. Capital is defined to be the aggregate par value of shares issued. Moreover, the ability of the Company to pay dividends, if and when declared by its Board of Directors, may be restricted by regulatory limits on the amount of dividends, which the Insurance Entities are permitted to pay the Company. Restrictions limiting the payment of dividends by UVE UVE pays dividends to shareholders, which are funded by earnings on investments and distributions from the earnings of its consolidated subsidiaries. Generally, other than as disclosed above and in “— Note 7 (Long-term debt) ,” there are no restrictions for UVE limiting the payment of dividends. However, UVE’s ability to pay dividends to shareholders may be affected by restrictions on the ability of the Insurance Entities to pay dividends to UVE through PSI. See “— Note 5 (Insurance Operations) ,” for a discussion of these restrictions. There are no such restrictions for UVE’s non-insurance consolidated subsidiaries. UVE received distributions from the earnings of its non-insurance consolidated subsidiaries of $231.9 million, $149.9 million and $151.0 million during the years ended December 31, 2022, 2021 and 2020, respectively. UVE made capital contributions of $84.0 million, $92.0 million and $114.0 million to UPCIC during the years ended December 31, 2022, 2021 and 2020, respectively. UVE made capital contributions of $3.0 million to APPCIC during the year ended December 31, 2022. There were no capital contributions by UVE to APPCIC during the years ended December 31, 2021 and 2020. In addition to the above, UVE entered into surplus notes with the Insurance Entities as a form of statutory capital support. During 2022 UVE entered into $110.0 million of subordinated surplus debentures with UPCIC and $4.0 million of subordinated surplus debentures with APPCIC. In 2021 $20.0 million in subordinated surplus debentures were made to UPCIC. See “— Schedule II - Condensed Financial Information of Registrant —Note 2 (Intercompany Note Receivable).” |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Equity Compensation Plans In prior periods the Company managed its equity compensation under the 2009 Omnibus Incentive Plan (the “2009 Plan”). In April 2021, the Company’s Board of Directors adopted, subject to shareholder approval, the 2021 Omnibus Incentive Plan (the “2021 Plan”). The 2021 Plan was approved by the Company’s shareholders effective June 11, 2021, at which time the 2009 Plan was terminated. Shares reserved for future issuance under the 2009 Plan are no longer available and no further grants will be made under this plan. At the inception of the Company’s 2021 Plan, 1,835,000 shares were initially reserved for issuance. At December 31, 2022, 687,910 shares remained reserved for issuance and were available for new awards under the incentive plan. Awards under the Incentive Plan may include incentive stock options, non-qualified stock option awards (“Stock Option”), stock appreciation rights, non-vested shares of common stock, restricted stock awards (“RSAs”), performance share units (“PSUs”), restricted stock units (“RSUs”), and other share-based awards and cash-based incentive awards. Awards under the Incentive Plan may be granted to employees, directors, consultants or other persons providing services to the Company or its affiliates. The following table provides certain information related to Stock Options, RSAs, PSUs and RSUs for the year ended December 31, 2022 (in thousands, except per share data): For the Year Ended December 31, 2022 Stock Options Restricted Stock Awards Performance Restricted Number of Weighted Aggregate Weighted Number of Weighted Number Weighted Number Weighted Average Grant Date 2009 Omnibus Plan Outstanding as of 2,820 $ 23.46 — $ — 50 $ 20.17 80 $ 16.84 Granted — — — — — — — — Forfeited (2) 23.97 — — — — — — Exercised — — n/a n/a n/a n/a n/a n/a Vested n/a n/a — — (34) 22.79 (28) 16.73 Expired (54) 24.20 n/a n/a n/a n/a n/a n/a Outstanding as of 2,764 $ 23.44 $ — 5.93 — $ — 16 $ 14.75 52 $ 16.90 Exercisable as of 2,213 $ 25.15 $ — 5.48 2021 Omnibus Plan Outstanding as of — $ — — $ — — $ — 214 $ 16.91 Granted 500 12.50 53 12.32 103 12.19 284 9.96 Forfeited — — — — — — (6) 16.91 Exercised — — n/a n/a n/a n/a n/a n/a Vested n/a n/a — — — — (84) 16.14 Expired — — n/a n/a n/a n/a n/a n/a Outstanding as of 500 $ 12.50 $ — 9.22 53 $ 12.32 103 $ 12.19 408 $ 12.24 Exercisable as of December 31, 2022 — $ — $ — — (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, as amended or issuances under the Company’s Incentive Plan. (2) All shares outstanding as of December 31, 2022, are expected to vest. n/a Not applicable The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Compensation expense: Stock options $ 1,882 $ 2,390 $ 4,519 Restricted stock 372 — 514 Performance share units 466 671 945 Restricted stock units 2,007 2,754 2,717 Total $ 4,727 $ 5,815 $ 8,695 Deferred tax benefits: Stock options $ 126 $ 226 $ 719 Restricted stock — — — Performance share units — — 52 Restricted stock units 387 606 106 Total $ 513 $ 832 $ 877 Realized tax benefits: Stock options $ — $ — $ — Restricted stock — — — Performance share units — 64 275 Restricted stock units 286 590 — Total $ 286 $ 654 $ 275 Excess tax benefits (shortfall): Stock options $ (88) $ (600) $ (209) Restricted stock — — — Performance share units — (76) (28) Restricted stock units (134) 15 — Total $ (222) $ (661) $ (237) Weighted average fair value per option or share: Stock option grants $ 1.64 $ 2.66 $ 3.67 Restricted stock grants $ 12.32 $ — $ — Performance share unit grants $ 12.19 $ 14.68 $ — Restricted stock unit grants $ 9.96 $ 16.79 $ 16.13 Intrinsic value of options exercised $ — $ — $ — Fair value of restricted stock vested $ — $ — $ 252 Fair value of performance share units vested $ 386 $ 925 $ 2,151 Fair value of restricted stock units vested $ 1,310 $ 3,212 $ 1,559 Cash received for strike price and tax withholdings $ 61 $ 84 $ — Shares acquired through cashless exercise (1) 36 69 64 Value of shares acquired through cashless exercise (1) $ 418 $ 1,056 $ 1,315 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of Stock Options exercised, Restricted Stock vested, PSUs vested or RSUs vested. These shares have been canceled by the Company. The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for Stock Options, Restricted Stock, PSUs and RSUs (dollars in thousands): As of December 31, 2022 Stock Restricted Stock Performance Restricted Unrecognized expense $ 1,387 $ 277 $ 981 $ 4,964 Weighted average remaining years 1.43 0.4 2.00 2.41 Stock Options Stock Options granted by the Company generally expire between five one The Company used the modified Black-Scholes model to estimate the fair value of employee Stock Options on the date of grant utilizing the assumptions noted below. The risk-free rate is based on the U.S. Treasury bill yield curve in effect at the time of grant for the expected term of the option. The expected term of options granted represents the period of time that the options are expected to be outstanding. Expected volatilities are based on historical volatilities of our Common Stock. The dividend yield was based on expected dividends at the time of grant. The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2022 2021 2020 Weighted-average risk-free interest rate 2.21 % 0.86 % 0.49 % Expected term of option in years 5.74 6.00 6.00 Weighted-average volatility 29.8 % 34.8 % 35.8 % Dividend yield 6.9 % 5.2 % 4.3 % Weighted-average grant date fair value per share $ 1.64 $ 2.66 $ 3.67 Restricted Stock, Performance Share Units and Restricted Stock Units Restricted Stock, Performance Share Units and Restricted Stock Units are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements or to provide employees a continued incentive to share in the success of the Company. Restricted Stock generally vests over a one one “—Note 2 (Summary of Significant Accounting Policies — Share-based Compensation)” |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | EMPLOYEE BENEFIT PLAN Effective January 1, 2009, the Company adopted a qualified retirement plan covering substantially all employees. It is designed to help the employees meet their financial needs during their retirement years. Eligibility for participation in the plan is generally based on employee’s date of hire or on completion of a specified period of service. Employer contributions to this plan are made in cash. The plan titled the “Universal Property & Casualty 401(k) Profit Sharing Plan” (the “401(k) Plan”) is a defined contribution plan that allows employees to defer compensation through contributions to the 401(k) Plan. The contributions are invested on the employees’ behalf, and the benefits paid to employees are based on contributions and any earnings or losses. The 401(k) Plan includes a Company contribution of 100 percent of each eligible participant’s contribution up to a maximum of five percent of the participant’s compensation during the 401(k) Plan year. The Company may make additional profit-sharing contributions. However, no additional profit-sharing contribution was made during the years ended December 31, 2022, 2021 and 2020. Aggregate contributions paid by the Company were approximately $3.4 million, $2.9 million and $2.6 million to the 401(k) Plan for the years ended December 31, 2022, 2021 and 2020, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS There were no related party transactions for the years ended December 31, 2022, 2021 and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2022 2021 2020 Current: Federal $ 5,674 $ 10,597 $ 1,988 State and local 1,462 1,676 349 Total current expense 7,136 12,273 2,337 Deferred: Federal (10,752) (4,064) 2,403 State and local (1,374) (203) 386 Total deferred expense (benefit) (12,126) (4,267) 2,789 Income tax expense (benefit) $ (4,990) $ 8,006 $ 5,126 The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: For the Years Ended December 31, 2022 2021 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State income tax, net of federal tax benefit (1.4) % 1.7 % 3.1 % Effect of change in tax rate 2.0 % 0.1 % 0.5 % Disallowed meals & expenses (0.4) % 0.1 % 0.4 % Disallowed compensation (3.7) % 2.1 % 6.2 % Liability adjustment — — % (9.7) % Excess tax (benefit) shortfall (0.8) % 2.3 % 0.4 % Other, net 1.6 % 0.9 % (0.7) % Effective income tax rate 18.3 % 28.2 % 21.2 % The Company recognized income tax shortfalls of $0.2 million during the year ended December 31, 2022 and $0.7 million during the year ended December 31, 2021 from stock-based compensation awards that vested, were exercised, forfeited, or expired. On September 14, 2021, the state of Florida reduced its corporate tax rate from 4.458% to 3.535% which was effective for the 2021 calendar year. This rate expired on December 31, 2021, and a new corporate income tax rate of 5.5% became effective on January 1, 2022. The Variable Interest Entity (“VIE”) is subject to federal income taxes, however because it is domiciled in Bermuda it is not subject to state income taxes. Therefore, the annual results of the VIE can materially impact the state tax apportionment based on the materiality of results in the VIE compared to results of affiliates subject to state taxation. The company adopted the standard for Corporate Alternative Minimum Tax (“CAMT”), reflected in the Inflation Reduction Act enacted on August 16, 2022, for the reporting period beginning January 1, 2023. The Company has determined that it does not expect to be liable for CAMT in 2023. The Company accounts for income taxes using a balance sheet approach. As of December 31, 2022 and 2021, the significant components of the Company’s deferred income taxes consisted of the following (in thousands): As of December 31, 2022 2021 Deferred income tax assets: Unearned premiums $ 32,410 $ 28,748 Advanced premiums 2,683 2,476 Unpaid losses and LAE 2,574 2,513 Share-based compensation 3,744 3,458 Accrued wages 237 211 Allowance for uncollectible receivables 220 186 Net operating loss carryforwards 7,591 534 Unrealized gain/loss 4,175 890 Other comprehensive income 33,795 4,729 Other 410 77 Total deferred income tax assets 87,839 43,822 Deferred income tax liabilities: Deferred policy acquisition costs, net (25,512) (25,361) Fixed assets (4,484) (1,790) Unpaid loss and LAE transition adjustment (269) (340) Other (316) — Total deferred income tax liabilities (30,581) (27,491) Net deferred income tax asset $ 57,258 $ 16,331 At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred income tax assets when it is more likely than not that all, or some portion, of the deferred income tax assets will not be realized. A valuation allowance would be based on all available information including the Company’s assessment of uncertain tax positions and projections of future taxable income and capital gain from each tax-paying component in each jurisdiction, principally derived from business plans and available tax planning strategies. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The Company reviews its deferred tax assets regularly for recoverability. Management has reviewed all available evidence, both positive and negative, in determining the need for a valuation allowance with respect to the gross deferred tax assets. In determining the manner in which available evidence should be weighted, management has determined that the need for a valuation allowance is not warranted at this time. The Company has adopted Accounting for Uncertainty in Income Taxes (“ASC 740”) which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 provides a threshold for the financial statement recognition and measurement of an income tax position taken or expected to be taken in an income tax return. The Company’s policy is to classify interest and penalties related to unrecognized tax positions, if any, in its provision for income taxes. As of December 31, 2022, 2021 and 2020, the Company determined that no uncertain tax liabilities are required. The Company filed a consolidated federal income tax return for the tax years ended December 31, 2021, 2020 and 2019 and intends to file the same for the tax year ended December 31, 2022. The tax allocation agreement between the Company and the Insurance Entities provides that they will incur income taxes based on a computation of taxes as if they were stand-alone taxpayers. The computations are made utilizing the financial statements of the Insurance Entities prepared on a statutory basis of accounting and prior to consolidating entries which include the conversion of certain balances and transactions of the statutory financial statements to a GAAP basis. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“EPS”) is computed based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the impact of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stock, and conversion of preferred stock. In loss periods, the impact of common shares issuable upon the exercises of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stock, and conversion of preferred stock are excluded from the calculation of diluted loss per share, as the inclusion of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stocks, and conversion of preferred stock would have an anti-dilutive effect. There is no difference between basic and diluted income or loss per share. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings (loss) per share computations for the periods presented (in thousands, except per share data): Years Ended December 31, 2022 2021 2020 Numerator for EPS: Net income (loss) $ (22,257) $ 20,407 $ 19,105 Less: Preferred stock dividends (10) (10) (10) Income (loss) available to common stockholders $ (22,267) $ 20,397 $ 19,095 Denominator for EPS: Weighted average common shares outstanding 30,751 31,218 31,884 Plus: Assumed conversion of share-based compensation (1) — 64 63 Assumed conversion of preferred stock — 25 25 Weighted average diluted common shares outstanding 30,751 31,307 31,972 Basic earnings (loss) per common share $ (0.72) $ 0.65 $ 0.60 Diluted earnings (loss) per common share $ (0.72) $ 0.65 $ 0.60 Weighted average number of antidilutive shares 2,706 2,113 2,753 (1) Represents the dilutive effect of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units and non-vested restricted stock. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 (1) Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale debt securities: Unrealized holding gains $ (118,832) $ (29,247) $ (89,585) $ (24,477) $ (5,731) $ (18,746) $ 33,575 $ 7,884 $ 25,691 Less: Reclassification adjustments (gains) losses realized in net income 1,818 447 1,371 (215) (50) (165) (56,914) (13,605) (43,309) Other comprehensive income (117,014) (28,800) (88,214) (24,692) (5,781) (18,911) (23,339) (5,721) (17,618) Reclassification adjustments — — — — — — 791 194 597 Change in accumulated other $ (117,014) $ (28,800) $ (88,214) $ (24,692) $ (5,781) $ (18,911) $ (22,548) $ (5,527) $ (17,021) (1) Effective January 1, 2020, the Company adopted Accounting Standard Update 2016-13. This amount represents reclassifications to retained earnings associated with the allowance for expected credit losses within accumulated other comprehensive income (“AOCI”) relating to available-for-sale debt security investments. The following table provides the reclassification adjustments for gains and losses out of AOCI for the periods presented (in thousands): Amounts Reclassified from Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2022 2021 2020 Where Net Income is Presented Unrealized gains (losses) on $ (1,818) $ 215 $ 56,914 Net realized gains (losses) on investments 447 (50) (13,605) Income taxes, current Total reclassification for the period $ (1,371) $ 165 $ 43,309 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Obligations under Multi-Year Reinsurance Contracts The Company purchases reinsurance coverage to protect its capital and to limit its losses when certain major events occur. The Company’s reinsurance commitments generally run from June 1 st of the current year to May 31 st of the following year. Certain of the Company’s reinsurance agreements are for periods longer than one year. Amounts payable for coverage during the current June 1 st to May 31 st contract period are recorded as “Reinsurance Payable, net” in the Consolidated Balance Sheet. Multi-year contract commitments for future years will be recorded at the commencement of the coverage period. Amounts payable for future reinsurance contract years that the Company is obligated to pay are: (1) $105.6 million in 2023; (2) $157.5 million in 2024; and (3) $66.3 million in 2025. Litigation Lawsuits and other legal proceedings are filed against the Company from time to time. Many of these legal proceedings involve claims under policies that the Company underwrites and reserves for as an insurer. The Company is also involved in various other legal proceedings and litigation unrelated to claims under the Company’s policies that arise in the ordinary course of business operations. Management believes that any liabilities that may arise as a result of these legal matters will not have a material adverse effect on the Company’s financial condition or results of operations. The Company contests liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal matters when those matters present loss contingencies that are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with certainty, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates that the reasonably possible losses for legal proceedings, whether in excess of a related accrued liability or where there is no accrued liability, and for which the Company is able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: • Level 1 — Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Summary of Significant Valuation Techniques for Assets Measured at Fair Value on a Recurring Basis Level 1 Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. Mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. Level 2 U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate bonds: Comprise investment-grade debt securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. Municipal bonds: Comprise debt securities issued by a state, municipality, or county. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Redeemable preferred stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. As required by GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 11,664 $ — $ 11,664 Corporate bonds — 695,061 — 695,061 Mortgage-backed and asset-backed securities — 287,607 — 287,607 Municipal bonds — 12,371 — 12,371 Redeemable preferred stock — 7,923 — 7,923 Equity Securities: Common stock 15,313 — — 15,313 Mutual funds 70,156 — — 70,156 Total assets accounted for at fair value $ 85,469 $ 1,014,626 $ — $ 1,100,095 Fair Value Measurements As of December 31, 2021 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 26,806 $ — $ 26,806 Corporate bonds — 673,805 — 673,805 Mortgage-backed and asset-backed securities — 316,118 — 316,118 Municipal bonds — 14,574 — 14,574 Redeemable preferred stock — 9,152 — 9,152 Equity Securities: Common stock 3,683 — — 3,683 Mutual funds 43,651 — — 43,651 Total assets accounted for at fair value $ 47,334 $ 1,040,455 $ — $ 1,087,789 The Company utilizes third-party independent pricing services that provide a price quote for each available-for-sale debt security and equity security. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any available-for-sale debt security or equity security included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): As of December 31, 2022 2021 Carrying Estimated Carrying Estimated Liabilities (debt): Surplus note (1) $ 5,515 $ 5,126 $ 6,985 $ 6,723 5.625% Senior unsecured notes (2) 100,000 100,350 100,000 99,464 Total debt $ 105,515 $ 105,476 $ 106,985 $ 106,187 (1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note (Level 3). (2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2022, net of reinsurance and estimated subrogation, as well as cumulative claim counts and the total of incurred-but-not-reported (“IBNR”) liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands). The liability for losses and loss adjustment expenses includes an amount determined from loss reports and individual cases and an amount, based on past experience, for losses IBNR. Such liabilities are necessarily based on estimates and, although management believes that the amount is adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in earnings currently. The reserve for losses and loss adjustment expenses is reported net of receivables for salvage and subrogation of approximately $134.4 million and $118.6 million at December 31, 2022 and 2021, respectively. The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2018 to 2021, is presented as supplementary information and is unaudited. As of December 31, 2022 Total of IBNR Plus Expected Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance Development (Redundancy) Cumulative Number For the Years Ended December 31, on Reported Claims of Reported Claims Accident Year 2018 * 2019 * 2020 * 2021 * 2022 2018 $ 334,368 $ 335,946 $ 348,792 $ 346,785 $ 348,534 $ (1,175) 54,468 2019 446,419 452,029 467,198 470,372 (9,236) 47,647 2020 617,795 637,764 635,412 (14,382) 81,027 2021 641,679 646,977 (23,473) 60,470 2022 793,341 250,623 85,543 Total $ 2,894,636 Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 * 2019 * 2020 * 2021 * 2022 2018 $ 253,008 $ 327,310 $ 348,225 $ 353,506 $ 353,566 2019 335,991 446,997 463,924 480,967 2020 452,560 604,201 645,553 2021 461,709 665,008 2022 518,829 Total $ 2,663,923 All outstanding liabilities before 2018, net of reinsurance (9,542) Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 221,171 * Presented as unaudited required supplementary information. Set forth is the supplementary information about average historical claims duration as of December 31, 2022: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 57.4 % 19.6 % 10.1 % 5.9 % 3.3 % Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2022 (in thousands): December 31, 2022 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 221,171 Reinsurance recoverable on unpaid claims 798,680 Liabilities for adjusting and other claim payments 18,939 Total gross liability for unpaid claims and claim adjustment expense $ 1,038,790 Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of year 346,216 322,465 267,760 Less: Reinsurance recoverable (115,860) (119,522) (123,221) Net balance at beginning of period 230,356 202,943 144,539 Incurred (recovered) related to: Current year 913,419 724,755 700,473 Prior years 24,980 54,450 58,337 Total incurred 938,399 779,205 758,810 Paid related to: Current year 624,580 526,695 513,308 Prior years 304,065 225,097 187,098 Total paid 928,645 751,792 700,406 Net balance at end of period 240,110 230,356 202,943 Plus: Reinsurance recoverable 798,680 115,860 119,522 Balance at end of year $ 1,038,790 $ 346,216 $ 322,465 During 2022, the liability for unpaid losses and loss adjustment expenses, prior to reinsurance, increased by $692.6 million from $346.2 million as of December 31, 2021 to $1,038.8 million as of December 31, 2022. The increase was principally the result of Hurricane Ian and increases to reflect recent and ongoing trends in weather-related claims, higher expected costs for building materials and labor as a result of inflationary pressure as well as the continuing prevalence of solicited, represented, and litigated claims in Florida resulting in increased claims frequencies, losses and loss adjustment expenses. Hurricane Ian resulted in $111.0 million of net losses and LAE for the 2022 accident year, or 9.9 net loss ratio points, compared to $28.0 million of weather above plan in 2021, or 2.7 net loss ratio points. Prior year development includes changes in estimated losses and LAE for all events occurring in prior years including hurricanes and other weather. Prior year development was $25.0 million, or 2.2 net loss ratio points for the year ended December 31, 2022, compared to $54.5 million for 2021, or 5.3 net loss ratio points. Losses and LAE experience over the past several years including both 2022 and 2021, reflects an adverse litigation environment and other market conditions. We have recorded adverse claim development on prior years’ loss reserves to address the increasing impact of Florida’s market disruptions, as well as the impact of rising costs of building materials and labor, have had on the claims process and the establishment of reserves for losses and LAE. Losses and LAE experience over the past several years including both 2022 and 2021, reflects an adverse litigation environment and other market conditions in Florida that the Florida Legislature has been attempting to address with the passage of legislation spanning several years with the most significant changes made during a special session held in December 2022. The Company considered and included the effects of the enacted legislation in developing its ultimate loss projections and reserve estimates as of December 31, 2022. In addition to the actions taken by the Florida legislature, management has been taking actions to improve losses and LAE experience through several means including operational initiatives designed to improve the efficiency and effectiveness of the claims cycle and reduce the impact of litigation; implementing pricing increases to address the loss experience as well as inflation and the increasing cost of reinsurance; reducing undesirable exposures; and securing efficient reinsurance programs to protect against catastrophes. Basis for estimating liabilities for unpaid claims and claim adjustment expenses The Company establishes a liability to provide for the estimated unpaid portion of the costs of paying losses and LAE under insurance policies the Insurance Entities have issued. Predominately all of the Company’s claims relate to the Company’s core product, homeowners insurance and the various policy forms in which it is available. The liability for unpaid losses and LAE consists of the following: • Case reserves, which are the reserves established by the claims examiner on reported claims. • Incurred but not reported, which are anticipated losses expected to be reported to the Company and development of reported claims, including anticipated recoveries from either subrogation and ceded reinsurance. Ceded reinsurance for both paid and unpaid claims are reported separately as reinsurance recoverable. • LAE, which are the estimated expenses associated with the settlement of case reserves and IBNR. Underwriting results are significantly influenced by the Company’s practices in establishing its estimated liability for unpaid losses and LAE. The liability is an estimate of amounts necessary to ultimately settle all current and future claims and LAE on losses occurring during the policy coverage period each year as of the financial statement date. Characteristics of Reserves The liability for unpaid losses and LAE, also known as reserves, is established based on estimates of the ultimate future amounts needed to settle claims, either known or unknown, less losses and LAE that have been paid to date. Historically, claims are typically reported promptly with relatively little reporting lag between the date of occurrence and the date the loss is reported. Certain number of claims are not known immediately after a loss and insureds are delayed at reporting those losses to us. In the current Florida market, an increased number of claims are reported well after the purported dates of loss. Reporting delays at times are material. In addition, claims which the Insurance Entities believed were settled often are reopened based on newly reported claim demands from our insureds as a result of third party representation. The Company is seeing increased litigation and changes to consumer behavior over the reporting and settlement process especially with Florida-based claims. The Company’s claim settlement data suggests that the Company’s typical insurance claims have an average settlement time of less than one year from the reported date unless delayed by some form of litigation or dispute. Reserves are estimated for both reported and unreported claims, and include estimates of all expenses associated with processing and settling all incurred claims, including consideration for anticipated subrogation recoveries that will offset loss payments. The Company updates reserve estimates periodically as new information becomes available or as events emerge that may affect the resolution of unsettled claims. Changes in prior year reserve estimates (reserve re-estimates), which may be material, are determined by comparing updated estimates of ultimate losses to prior estimates, and the differences are recorded as losses and LAE in the Consolidated Statements of Income in the period such changes are determined. Estimating the ultimate cost of losses and LAE is an inherently uncertain and complex process involving a high degree of subjective judgment and is subject to the interpretation and usage of numerous uncertain variables as discussed further below. Reserves for losses and LAE are determined in three primary sectors. These sectors are (1) the estimation of reserves for Florida non-catastrophe losses, (2) hurricane losses, and (3) non-Florida non-catastrophe losses and any other losses. Evaluations are performed for gross loss, LAE and subrogation separately, and on a net and direct basis for each sector. The analyses for non-catastrophe losses are further separated into data groupings of like exposure or type of loss. These groups are property damage on homeowner policy forms HO-3 and HO-8 combined, property damage on homeowner policy forms HO-4 and HO-6 combined, property damage on dwelling fire policies, sinkhole claims, and water damage claims. Although these sectors are aggregated into the single tables noted above, analyses are performed in these three sectors, due to the analogous nature of the product and similar claim settlement traits. As claims are reported, the claims department establishes an estimate of the liability for each individual claim called case reserves. For certain liability claims of sufficient size and complexity, the field adjusting staff establishes case reserve estimates of ultimate cost, based on their assessment of facts and circumstances related to each individual claim. Opportunities for subrogation are also identified for further analysis and collection. For other claims which occur in large volumes and settle in a relatively short time frame, it is not practical or efficient to set case reserves for each claim, and an initial case reserve of $2,500 is set for these claims. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The Actuarial Methods used to Develop Reserve Estimates Reserve estimates for both unpaid losses and LAE are derived using several different actuarial estimation methods in order to provide the actuary with multiple predictive viewpoints to consider for each of the sectors discussed above. Each of the methods has merit, because they each provide insight into emerging patterns. These methods are each variations on two primary actuarial techniques: “chain ladder development” techniques and “counts and average” techniques. The “chain ladder development” actuarial technique is an estimation process in which historical payment and reserving patterns are applied to actual paid and/or reported amounts (paid losses, recovered subrogation or LAE plus individual case reserves established by claim adjusters) for an accident period to create an estimate of how losses or recoveries are likely to develop over time. The “counts and average” technique includes an evaluation of historical and projected costs per claim, and late-reported claim counts, for open claims by accident period. An accident period refers to classification of claims based on the date in which the claims occurred, regardless of the date they were reported to the company. These analyses are used to prepare estimates of required reserves for payments or recoveries to be made in the future. Transactions are organized into half-year accident periods for purposes of the reserve estimates. Key data elements used to determine the Company’s reserve estimates include historical claim counts, loss and LAE payments, subrogation received, case reserves, earned policy exposures, and the related development factors applicable to this data. The first method for estimating unpaid amounts for each sector is a chain ladder method called the paid development method. This method is based upon the assumption that the relative change in a given accident period’s paid losses from one evaluation point to the next is similar to the relative change in prior periods’ paid losses at similar evaluation points. In utilizing this method, actual 6-month historical loss activity is evaluated. Successive periods can be arranged to form a triangle of data. Paid-to-Paid (“PTP”) development factors are calculated to measure the change in cumulative paid losses, LAE, and subrogation recoveries, from one evaluation point to the next. These historical PTP factors form the basis for selecting the PTP factors used in projecting the current valuation of losses to an ultimate basis. In addition, a tail factor is selected to account for loss development beyond the observed experience. The tail factor is based on trends shown in the data and consideration of industry loss development benchmarks. Utilization of a paid development method has the advantage of avoiding potential distortions in the data due to changes in case reserving methodology. This method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In instances where changes in settlement rates are detected, the PTP factors are adjusted accordingly, utilizing appropriate actuarial techniques. These adjusted techniques each produce additional development method estimates for consideration. A second method is the reported development method. This method is similar to the paid development method; however, case reserves are considered in the analysis. Successive periods of reported loss estimates (including paid loss, subrogation recoveries, paid LAE and held case reserves) are organized similar to the paid development method in order to evaluate and select Report-to-Report (“RTR”) development factors. This method has the advantage of recognizing the information provided by current case reserves. Its implicit assumption is that the relative adequacy of case reserves is consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In cases where significant reserve strengthening or other changes have occurred, RTR factors are adjusted accordingly, utilizing appropriate actuarial techniques. A third method is the Bornhuetter-Ferguson (“B-F”) method, which is also utilized for estimating unpaid loss and LAE amounts. Each B-F technique is a blend of chain ladder development methods and an expected loss method, whereby the total reserve estimate equals the unpaid portion of a predetermined expected unpaid ultimate loss projection. The unpaid portion is determined based on assumptions underlying the development methods. As an experience year matures and expected unreported (or unpaid) losses become smaller, the initial expected loss assumption becomes gradually less important. This has the advantage of stability, but it is less responsive to actual results that have emerged. Two parameters are needed in each application of the B-F method: an initial assumption of expected losses and the expected reporting or payment pattern. Initial expected losses for each accident period other than the current year is determined using the estimated ultimate loss ratio from the prior analysis. Initial expected losses for the current year’s accident periods are determined based on trends in historical loss ratios, rate changes, and underlying loss trends. The expected reporting pattern is based on the reported or paid loss development method described above. This method is often used in situations where the reported loss experience is relatively immature or lacks sufficient credibility for the application of other methods. A fourth method, called the counts and averages method, is utilized for estimates of loss, subrogation and LAE for each Florida sector. In this method, an estimate of unpaid losses or expenses is determined by separately projecting ultimate reported claim counts and ultimate claim severities (cost or recoveries per claim) on open and unreported claims for each accident period. Typically, chain ladder development methods are used to project ultimate claim counts and claim severities based on historical data using the same methodology described in the paid and reported development methods above. Estimated ultimate losses are then calculated as the product of the two items. This method is intended to avoid data distortions that may exist with the other methods for the most recent years as a result of changes in case reserve levels, settlement rates and claims handling fees. In addition, it may provide insight into the drivers of loss experience. For example, this method is utilized for sinkhole losses due to unique settlement patterns that have emerged since the passage of legislation that codified claim settlement practices with respect to sinkhole related claims and subsequent policy form changes the Company implemented. The method is also utilized to evaluate segments impacted by the implementation of the Company’s Fast Track Initiative, which is an initiative to settle claims on an accelerated basis. These claims are expected to be reported and settled at different rates and ultimate values than historically observed, requiring a departure from traditional development methodologies. The implicit assumption of these techniques is that the selected factors and averages combine to form development patterns or severity trends that are predictive of future loss development of incurred claims. In selecting relevant parameters utilized in each estimation method, due consideration is given to how the patterns of development change from one year to the next over the course of several consecutive years of recent history. Furthermore, the effects of inflation and other anticipated trends are considered in the reserving process in order to generate selections that include adequate provisions to estimate the cost of claims that settle in the future. Finally, in addition to paid loss, reported loss, subrogation recoveries, and LAE development triangles, various diagnostic triangles, such as triangles showing historical patterns in the ratio of paid-to-reported losses and closed-to-reported claim counts are prepared. These diagnostic triangles are utilized in order to monitor the stability of various determinants of loss development, such as consistency in claims settlement and case reserving. Estimates of unpaid losses for hurricane experience are developed using a combination of company-specific and industry patterns, due to the relatively infrequent nature of storms and the high severity typically associated with them. Development patterns and other benchmarks are based on consideration of all reliable information, such as historical events with similar landfall statistics, the range of estimates developed from industry catastrophe models, and claim reporting and handling statistics from our field units. It is common for the company to update its projection of unpaid losses and LAE for a significant hurricane event on a monthly, or even weekly basis, for the first 6-months following an event. Estimation methods described above each produce estimates of ultimate losses and LAE. Based on the results of these methods, a single estimate (commonly referred to as an actuarial point/central estimate) of the ultimate loss and LAE is selected accordingly for each accident-year claim grouping. Estimated IBNR reserves are determined by subtracting reported losses from the selected ultimate loss, and the paid LAE from the ultimate LAE. The estimated loss IBNR reserves are added to case reserves to determine total estimated unpaid losses. Note that estimated IBNR reserves can be negative for an individual accident-year claim grouping if the selected ultimate loss includes a provision for anticipated subrogation, or if there is a possibility that case reserves are overstated. No case reserves are carried for LAE, therefore the estimated LAE IBNR reserves equal the total estimated unpaid LAE. For each sector, the reserving methods are carried out on both a net and direct basis in order to estimate liabilities accordingly. When selecting a single actuarial point/central estimate on a net basis, careful consideration is given for the reinsurance arrangements that were in place during each accident year, exposure period and segment being reviewed. How Reserve Estimates are Established and Updated Reserve estimates are developed for both open claims and unreported claims. The actuarial methods described above are used to derive claim settlement patterns by determining development factors to be applied to specific data elements. Development factors are calculated for data elements such as claim counts reported and settled, paid losses and paid losses combined with case reserves, loss expense payments, and subrogation recoveries. Historical development patterns for these data elements are used as the assumptions to calculate reserve estimates. Often, different estimates are prepared for each detailed component, incorporating alternative analyses of changing claim settlement patterns and other influences on losses, from which a best estimate is selected for each component, occasionally incorporating additional analyses and actuarial judgment as described above. These estimates are not based on a single set of assumptions. Based on a review of these estimates, the best estimate of required reserves is recorded for each accident year and the required reserves are summed to create the reserve balance carried in the Consolidated Balance Sheets. Reserves are re-estimated periodically by combining historical payment and reserving patterns with current actual results. When actual development of claims reported, paid losses or case reserve changes are different than the historical development pattern used in a prior period reserve estimate, and as actuarial studies validate new trends based on indications of updated development factor calculations, new ultimate loss and LAE predictions are determined. This process incorporates the historic and latest trends, and other underlying changes in the data elements used to calculate reserve estimates. The difference between indicated reserves based on new reserve estimates and the previously recorded estimate of reserves is the amount of reserve re-estimates. The resulting increase or decrease in the reserve re-estimates is recorded and included in “Losses and loss adjustment expenses” in the Consolidated Statements of Income. Claim frequency The methodology used to determine claim counts is based first around the event and then based on coverage. One event could have one or more claims based on the policy coverage, for example an event could have a claim for the first party coverage and a claim for third party liability regardless of the number of third party claimants. If multiple third-party liability claims are reported together, they would be counted as one claim. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES The Company entered into a reinsurance arrangement effective June 1, 2022 with its existing captive reinsurance arrangement which uses Isosceles Insurance Ltd. a Bermuda licensed insurance company through the establishment of a Bermuda separate account named “Separate Account UVE-01”, which is a VIE in the normal course of business and consolidated as a VIE since the Company is the primary beneficiary. See “—Note 2 (Summary of Significant Accounting Policies — Consolidation Policy)” for more information about the methodology and significant inputs used to consider to consolidate a VIE. The VIE files a federal tax return however the VIE is domiciled in Bermuda and therefore is not subject to state income taxes. See “— Note 12 (Income Taxes). ” The reinsurance captive arrangement entered into in the prior year, which was effective June 1, 2021 through May 31, 2022 was terminated effective December 1, 2021, pursuant to the terms of the agreement. In connection with the termination of the agreement, the affiliates agreed to release funds held in trust due to one of the Insurance Entities (UPCIC) and the balance to the participant of the separate account (UVE) in December 2021. |
Quarterly Results for 2022 and
Quarterly Results for 2022 and 2021 (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2022 and 2021 (Unaudited) | QUARTERLY RESULTS FOR 2022 AND 2021 (UNAUDITED) The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth For the Year Ended December 31, 2022 Premiums earned, net 269,064 277,061 290,631 291,870 Net investment income 4,042 5,221 6,074 10,448 Total revenues 287,482 292,006 312,810 330,360 Total expenses 263,403 279,595 404,417 295,881 Net income (loss) 17,537 7,370 (72,275) 25,111 Basic earnings (loss) per share $ 0.56 $ 0.24 $ (2.36) $ 0.83 Diluted earnings (loss) per share $ 0.56 $ 0.24 $ (2.36) $ 0.82 For the Year Ended December 31, 2021 Premiums earned, net 243,305 256,172 264,654 271,332 Net investment income 2,986 2,858 2,797 3,894 Total revenues 262,757 279,181 287,254 292,659 Total expenses 226,386 249,087 260,761 356,566 Net income (loss) 26,408 21,941 20,183 (48,125) Basic earnings (loss) per share $ 0.85 $ 0.70 $ 0.65 $ (1.54) Diluted earnings (loss) per share $ 0.84 $ 0.70 $ 0.64 $ (1.54) Total revenues in the fourth quarter of 2022 exceeded 2021 driven by an increase in premiums earned, net and increases in investment income. Increased premiums were the result of rate increases approved and implemented during 2021 and 2022 which are earning in as policies renew. Overall policy count decreased as part of managements efforts to manage exposures. Investment income increased as new investments in the investment portfolio are benefiting from increased market interest rates. The decrease in expenses was due to lower level of losses and LAE, a lower level of acquisition costs offset by a slightly higher level of other operating expenses. Benefiting the fourth quarter of 2022 losses and LAE were increased benefits from claim management fees associated with Hurricane Ian. Lower acquisition costs are a result of management lowering renewal commissions in 2022 to 8% from 10% in 2021 which are earned in over the renewed policy life. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2022. On February 9, 2023, the Company declared a quarterly cash dividend of $0.16 per share of common stock payable March 16, 2023, to shareholders of record on March 9, 2023. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. (the “Parent Company”) had no guarantees or material contingencies as of December 31, 2022 and 2021. The following summarizes the major categories of the parent company’s financial statements (in thousands, except per share data): CONDENSED BALANCE SHEETS As of December 31, 2022 2021 ASSETS Cash and cash equivalents $ 83,022 $ 169,157 Investments in subsidiaries and undistributed earnings 139,386 317,166 Available-for-sale debt securities, at fair value 3,997 — Equity securities, at fair value 13,946 — Income taxes recoverable 1,507 16,960 Deferred income tax asset, net 1,539 3,466 Intercompany note receivable 143,792 20,415 Other assets 398 140 Total assets $ 387,587 $ 527,304 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES: Accounts payable $ 50 $ 17 Dividends payable 360 143 Long-term debt, net 97,254 96,691 Other accrued expenses 2,027 751 Total liabilities 99,691 97,602 STOCKHOLDERS’ EQUITY: Cumulative convertible preferred stock, $.01 par value — — Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share Common stock, $.01 par value 472 470 Authorized shares - 55,000 Issued shares - 47,179 and 47,018 Outstanding shares - 30,389 and 31,221 Treasury shares, at cost - 16,790 and 15,797 (238,758) (227,115) Additional paid-in capital 112,509 108,202 Accumulated other comprehensive income (loss), net of taxes (103,782) (15,568) Retained earnings 517,455 563,713 Total stockholders’ equity 287,896 429,702 Total liabilities and stockholders’ equity $ 387,587 $ 527,304 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2022 2021 2020 REVENUES Net investment income $ 930 $ 2 $ 273 Net realized gains (losses) on investments 1,462 405 38 Net change in unrealized gains (losses) of equity securities (518) — — Management fee 123 137 166 Interest income on intercompany note receivable 9,686 415 — Other revenue 1 — 16 Total revenues 11,684 959 493 OPERATING COSTS AND EXPENSES General and administrative expenses 12,223 10,552 15,448 Total operating cost and expenses 12,223 10,552 15,448 Interest and amortization of debt issuance costs 6,437 525 — LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY (6,976) (10,118) (14,955) Income tax expense (benefit) (670) (2,800) (215) LOSS BEFORE EQUITY IN NET EARNINGS (LOSS) OF SUBSIDIARIES (6,306) (7,318) (14,740) Equity in net income (loss) of subsidiaries (15,951) 27,712 33,828 CONSOLIDATED NET INCOME (LOSS) $ (22,257) $ 20,394 $ 19,088 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net cash provided by (used in) operating activities $ 210,368 $ 151,952 $ 149,329 Cash flows from investing activities: Capital contributions to affiliates (1) (129,490) (95,498) (118,897) Issuance of intercompany note receivable (1) (114,000) (20,000) — Purchases of equity securities (33,189) — — Purchase of available-for-sale debt securities (4,026) — — Proceeds from sales of equity securities 20,187 — — Proceeds from sales of available-for-sale debt securities — — 787 Net cash provided by (used in) investing activities (260,518) (115,498) (118,110) Cash flows from financing activities: Proceeds from issuance of long-term debt — 100,000 — Debt issuance costs paid (140) (3,365) — Preferred stock dividend (10) (10) (10) Common stock dividend (23,774) (24,191) (24,547) Purchase of treasury stock (11,643) (1,609) (28,921) Payments related to tax withholding for share-based compensation (418) (1,056) (1,315) Net cash provided by (used in) financing activities (35,985) 69,769 (54,793) Net increase (decrease) in cash and cash equivalents (86,135) 106,223 (23,574) Cash and cash equivalents at beginning of period 169,157 62,934 86,508 Cash and cash equivalents at end of period $ 83,022 $ 169,157 $ 62,934 Supplemental information: Interest paid $ 5,625 $ — $ — (1) Eliminated in consolidation. See accompanying notes to condensed financial statements NOTE 1 – GENERAL The financial statements of the Registrant should be read in conjunction with the consolidated financial statements in “Item 8.” Nature of Operations and Basis of Presentation Universal Insurance Holdings, Inc. is a Delaware corporation incorporated in 1990. The Parent Company is an insurance holding company whose wholly-owned subsidiaries perform all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), the Parent Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Parent Company generates revenues from earnings on investments and management fees. The Parent Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ consolidated financial statements have been reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity. Capital Contributions to Subsidiaries During the years ended December 31, 2022, 2021 and 2020, the Parent Company made capital contributions of $84.0 million, $92.0 million and $114.0 million, respectively, to UPCIC to increase UPCIC’s statutory capital and surplus. During the years ended December 31, 2022, the Parent Company made a capital contribution of $3.0 million to APPCIC to increase APPCIC’s statutory capital and surplus. There were no capital contributions by the Parent Company to APPCIC during the year ended December 31, 2021 and 2020. Dividends received from Subsidiaries The Parent Company received distributions from the earnings of its non-insurance consolidated subsidiaries of $231.9 million, $149.9 million and $151.0 million during the years ended December 31, 2022, 2021 and 2020, respectively. There were no dividends paid by UPCIC and APPCIC to the Parent Company during the years ended December 31, 2022, 2021 and 2020. NOTE 2 - INTERCOMPANY NOTE RECEIVABLE During the years ended December 31, 2022 and 2021, the Parent Company funded a $110.0 million and $20.0 million, respectively, Subordinated Surplus Debenture (“Surplus Debenture”) through PSI, the Insurance Entities’ parent company, to UPCIC to increase UPCIC’s statutory capital and surplus. During the year ended December 31, 2022, the Parent Company funded $4.0 million Surplus Debenture through PSI to APPCIC to increase APPCIC statutory capital and surplus. Intercompany note receivable is stated separately in the accompanying Condensed Consolidated Balance Sheets. Effective in 2021 for UPCIC and 2022 for APPCIC, the holding company has put in place an ongoing surplus note arrangement with the Insurance Entities, which has been approved by the Florida Office of Insurance Regulation as the Insurance Entities’ domestic regulator. Surplus debentures are unsecured debt issued by the Insurance Entities that are subordinated to all claims by policyholders and creditors, with interest and principal payments on the surplus note to the holding company being made only upon the FLOIR’s express approval. Surplus debentures are considered bonds in function and payout structure, but are accounted for as equity in the statutory reporting of the Insurance Entities. The holding company has outstanding with the Insurance Entities $134.0 million in surplus notes. Under the arrangement, interest accrues at a variable rate (currently 8.27%) on the outstanding surplus note balances and, if approved by the FLOIR, is payable annually to the holding company. In 2022, UPCIC received approval from its Florida regulator to permit UPCIC to pay interest accruing from surplus notes outstanding during 2021. NOTE 3 – LONG-TERM DEBT See “Part II—Item 8—Note 7 (Long-term debt)” for information relating to long-term debt. NOTE 4 – SUBSEQUENT EVENTS The Parent Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2022. In February 2023, the Parent Company declared a quarterly cash dividend of $0.16 per share of common stock payable March 16, 2023, to shareholders of record on March 9, 2023. In February 2023, the Parent Company made statutory capital contribution of $72.0 million to UPCIC to increase UPCIC’s statutory capital and surplus. UPCIC included this contribution in their statutory capital and surplus at December 31, 2022 with the permission of the FLOIR under statutory accounting principles. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | SCHEDULE V – VALUATION AND QUALIFYING ACCOUNTS The following table summarizes activity in the Company’s estimated credit losses for the periods presented (in thousands): Additions Beginning Charges to Charges to Deductions Ending Description Year Ended December 31, 2022 Estimated credit losses $ 584 711 — 375 $ 920 Year Ended December 31, 2021 Estimated credit losses $ 631 466 — 513 $ 584 Year Ended December 31, 2020 Estimated credit losses $ 749 528 — 646 $ 631 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | SCHEDULE VI – SUPPLEMENTAL INFORMATION CONCERNING CONSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of For the Year Ended December 31, Reserves Incurred Incurred Paid Losses Net 2022 $ 1,038,790 $ 913,419 24,980 $ 928,645 $ 25,785 2021 $ 346,216 $ 724,755 $ 54,450 $ 751,792 $ 12,535 2020 $ 322,465 $ 700,473 $ 58,337 $ 700,406 $ 20,393 As of For the Year Ended December 31, Deferred Amortization Net Net Unearned 2022 $ 103,654 $ (217,235) $ 1,173,278 $ 1,128,626 $ 943,854 2021 $ 108,822 $ (224,121) $ 1,084,827 $ 1,035,463 $ 857,769 2020 $ 110,614 $ (199,154) $ 1,004,903 $ 923,563 $ 783,135 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Basis of Presentation and Consolidation | Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”, and together with its wholly-owned subsidiaries, “the Company”) is a Delaware corporation incorporated in 1990. The Company is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned insurance company subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”, and together with UPCIC, the “Insurance Entities”), the Company is principally engaged in the property and casualty insurance business offered primarily through its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance offered in 19 states as of December 31, 2022, including Florida, which comprises the majority of the Company’s policies in force. See “—Note 5 (Insurance Operations) ” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and investment returns on funds invested on cash flows in excess of those retained and used for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed on behalf of the Insurance Entities, policy fees collected from policyholders by the Company’s wholly-owned managing general agent (“MGA”) subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The Company’s wholly-owned adjusting company receives claims-handling fees from the Insurance Entities. The Insurance Entities are reimbursed for these fees on claims that are subject to recovery under the Insurance Entities’ respective reinsurance programs. These fees, after expenses, are recorded in the Consolidated Financial Statements as an adjustment to losses and loss adjustment expense (“LAE”). The Consolidated Financial Statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of UVE and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. To conform to the current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements None |
Consolidation Policy | Consolidation Policy: The Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and VIEs in which the Company is determined to be the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the Company’s decision-making ability and its ability to influence activities that significantly affect the economic performance of the VIE. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks or drafts not yet |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. |
Investment, Securities Available for Sale and Equity Securities | Investment, Securities Available for Sale . The Company’s investments in debt securities and short-term investments are classified as available-for-sale with maturities of greater than three months. Available-for-sale debt securities and short-term investments are recorded at fair value in the Consolidated Balance Sheet, net of any allowance for credit losses, if any. Unrealized gains and losses, excluding the credit loss portion, on available-for-sale debt securities and short-term investments are excluded from earnings and reported as a component of other comprehensive income (“OCI”), net of related deferred taxes until reclassified to earnings upon the consummation of a sales transaction with an unrelated third party. Gains and losses realized on the disposition of available-for-sale debt securities are determined on the first in, first out (“FIFO”) basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. Investment, Equity Securities. The Company’s investments in equity securities are recorded at fair value in the Consolidated Balance Sheet with changes in the fair value of equity securities reported in current period earnings in the Consolidated Statements of Income within net change in unrealized gains (losses) of equity securities as they occur. |
Allowance for Credit Losses-Available-For-Sale Securities | Allowance for Credit Losses-Available-For-Sale Securities. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agencies, market sentiment and trends and adverse conditions specifically related to the security, among other quantitative and qualitative factors utilized at establishing an estimate for credit losses. If the assessment indicates that a credit loss exists, the present values of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in OCI. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense and are reported as general and administrative expenses. Losses are charged against the allowance when management believes an available-for-sale debt security is confirmed as uncollected or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale securities totaled $7.0 million and $4.9 million as of December 31, 2022 and December 31, 2021, respectively and is evaluated in the estimate for credit losses. Accrued interest receivable is included under Other Assets in the Consolidated Balance Sheet. |
Investment Real Estate | Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. |
Assets Held for Sale | Assets Held for Sale. The Company considers properties, including land, to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and the Company expects the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and the Company ceases depreciation. Assets held for sale are stated separately in the accompanying Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation and is depreciated on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three years for equipment to twenty-seven-and-one-half years for buildings and improvements. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Software is capitalized and amortized over three years. The Company reviews its property and equipment for impairment annually and/or whenever changes in circumstances indicate that the carrying amount may not be recoverable. |
Premiums Receivable | Premiums Receivable. Generally, premiums are collected prior to or during the policy period as permitted under the Insurance Entities’ payment plans. Credit risk is minimized through the effective administration of policy payment plans whereby the rules governing policy cancellation minimize circumstances in which the Company extends insurance coverage without having received the corresponding premiums. The Company performs a policy-level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. Under ASC 326 and given the short-term nature of these receivables, the Company employed the aging method to estimate credit losses by pooling receivables based on the levels of delinquency and evaluating current conditions and reasonable and supportable forecasts. |
Recognition of Premium Revenues | Recognition of Premium Revenues. Direct and ceded premiums are recognized as revenue on a pro rata basis over the policy term or over the term of the reinsurance agreement. The portion of direct premiums that will be earned in the future is deferred and reported as unearned premiums. The portion of ceded premiums that will be earned in the future is deferred and reported as prepaid reinsurance premiums (ceded unearned premiums). |
Recognition of Commission Revenue | Recognition of Commission Revenue . Commission revenue generated from reinsurance brokerage commission earned on ceded premium by the Insurance Entities is recognized pro-rata over the term of the reinsurance agreements which coincides with the completion of the service obligations under the brokerage agreements. |
Policy Fees | Policy Fees. Policy fees, which represents fees paid by policyholders to the MGA’s on all new and renewal insurance policies, are generally recognized as income upon policy inception, which coincides with the completion of our service obligation. |
Other Revenue | Other Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in installments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the service obligation is met by the Company. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs . The Company defers direct commissions and premium taxes relating to the successful acquisition or renewal of insurance policies and defers the costs until recognized as expense over the terms of the policies to which they are related. Deferred policy acquisition costs are recorded at their estimated realizable value. |
Goodwill | Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. The Company assesses goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that the Company may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. |
Debt, Net of Debt Issuance Costs | Debt, Net of Debt Issuance Costs. The Company records debt, net in the Consolidated Balance Sheets at carrying value. The Company incurs specific incremental costs in connection with the issuance of the Company’s debt instruments. These debt issuance costs include issue costs and other direct costs payable to third parties and are recorded as a direct deduction from the carrying value of the associated debt liability in the Consolidated Balance Sheets. The Company amortizes the deferred financing costs as interest expense over the term of the related debt using the interest method in the Consolidated Statements of Income. |
Insurance Liabilities | Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and LAE includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data and actuarial analysis and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. The Company estimates and accrues its right to subrogate reported or estimated claims against other parties. Subrogated claims are recorded at amounts estimated to be received from the subrogated parties, net of related costs and netted against unpaid losses and LAE. Inherent in the estimates of ultimate claims and subrogation are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are subject to adverse weather conditions, such as hurricanes, tornadoes, ice storms and tropical storms. The actuarial methods for making estimates for unpaid losses, LAE and subrogation recoveries and for establishing the resulting net liability are periodically reviewed, and any adjustments are reflected in current earnings. |
Provision for Premium Deficiency | Provision for Premium Deficiency . |
Reinsurance | Reinsurance. Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the gross insurance liability to the Company. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Under ASC 326 and given the short-term nature of these receivables, the Company considered the effects of credit enhancements (i.e. funds withheld liability, letters of credit and trust arrangements) and other qualitative factors that allowed it to conclude there was no material risk exposure. |
Income Taxes | Income Taxes . The Company accounts for income taxes under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods in the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes include both estimated federal and state income taxes. |
Income (Loss) Per Share of Common Stock | Income (Loss) Per Share of Common Stock . Basic earnings per share excludes dilution and is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted average number of shares of Common Stock outstanding during the period plus the |
Fair Value Measurements | Fair Value Measurements . |
Share-based Compensation | Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is either subject to annual measures or time vesting. The fair value of stock option awards is estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— Note 9 (Share-Based Compensation) .” The fair value of the restricted share grants, performance share units and restricted stock units are determined based on the market price on the date of grant. |
Statutory Accounting | Statutory Accounting. UPCIC and APPCIC are highly regulated and prepare and file financial statements in conformity with the statutory accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”) and the National Association of Insurance Commissioners (“NAIC”), which differ from GAAP. The FLOIR requires insurance companies domiciled in Florida to prepare their statutory financial statements in accordance with the NAIC Accounting Practices and Procedures Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2022 and 2021 and the results of operations and cash flows, for the years ended December 31, 2022, 2021 and 2020, for their regulatory filings have been prepared in accordance with statutory accounting principles as promulgated by the FLOIR and the NAIC. The statutory accounting principles are more restrictive than GAAP and are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Cost or Amortized Cost and Fair Value of Securities Available for Sale | The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): December 31, 2022 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 12,602 $ — $ — $ (938) $ 11,664 Corporate bonds 788,737 (729) 130 (93,077) 695,061 Mortgage-backed and asset-backed securities 327,166 — 148 (39,707) 287,607 Municipal bonds 14,924 (2) — (2,551) 12,371 Redeemable preferred stock 9,423 (189) — (1,311) 7,923 Total $ 1,152,852 $ (920) $ 278 $ (137,584) $ 1,014,626 December 31, 2021 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 27,076 $ — $ 64 $ (334) $ 26,806 Corporate bonds 687,058 (371) 843 (13,725) 673,805 Mortgage-backed and asset-backed securities 322,844 — 194 (6,920) 316,118 Municipal bonds 14,925 (1) — (350) 14,574 Redeemable preferred stock 9,289 (117) 28 (48) 9,152 Total $ 1,061,192 $ (489) $ 1,129 $ (21,377) $ 1,040,455 |
Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities | The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): December 31, 2022 December 31, 2021 % of Total % of Total Average Credit Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 297,475 29.3 % $ 321,975 31.0 % AA 154,975 15.3 % 139,186 13.4 % A 327,427 32.3 % 339,500 32.6 % BBB 232,316 22.9 % 234,358 22.5 % No Rating Available 2,433 0.2 % 5,436 0.5 % Total $ 1,014,626 100.0 % $ 1,040,455 100.0 % |
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): December 31, 2022 December 31, 2021 Amortized Fair Value Amortized Fair Value Mortgage-backed securities: Agency $ 157,672 $ 133,928 $ 147,992 $ 143,819 Non-agency 60,328 50,478 59,906 58,263 Asset-backed securities: Auto loan receivables 62,128 59,370 67,352 66,877 Credit card receivables 657 612 4,741 4,719 Other receivables 46,381 43,219 42,853 42,440 Total $ 327,166 $ 287,607 $ 322,844 $ 316,118 |
Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale | The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): December 31, 2022 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 2 $ 2,721 $ (110) 5 $ 8,943 $ (828) Corporate bonds 40 26,563 (2,910) 247 325,992 (46,451) Mortgage-backed and asset-backed securities 64 52,751 (2,974) 146 219,189 (36,733) Municipal bonds — — — 3 6,621 (1,458) Redeemable preferred stock 1 95 (51) — — — Total 107 $ 82,130 $ (6,045) 401 $ 560,745 $ (85,470) December 31, 2021 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 4 $ 18,913 $ (111) 4 $ 5,016 $ (223) Corporate bonds 249 378,595 (7,468) 18 17,356 (679) Mortgage-backed and asset-backed securities 145 274,883 (5,969) 11 23,273 (951) Municipal bonds 5 9,811 (269) — — — Redeemable preferred stock 1 200 (1) — — — Total 404 $ 682,402 $ (13,818) 33 $ 45,645 $ (1,853) |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2020 $ 148 $ — $ 38 $ 186 Provision for (or reversal of) credit loss expense 223 1 79 303 Balance, December 31, 2021 371 1 117 489 Provision for (or reversal of) credit loss expense 358 1 72 431 Balance, December 31, 2022 $ 729 $ 2 $ 189 $ 920 |
Amortized Cost and Fair Value of Investments With Contractual Maturities | The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): December 31, 2022 Amortized Cost Fair Value Due in one year or less $ 76,691 $ 75,226 Due after one year through five years 569,239 516,320 Due after five years through ten years 479,147 401,132 Due after ten years 25,231 19,831 Perpetual maturity securities 2,544 2,117 Total $ 1,152,852 $ 1,014,626 |
Summary of Securities Available for Sale | The following table provides certain information related to available-for-sale debt securities, equity securities and investment real estate during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Proceeds from sales and maturities (fair value): Available-for-sale debt securities (1) $ 98,409 $ 186,507 $ 1,148,418 Equity securities $ 34,178 $ 85,103 $ 81,559 Gross realized gains on sale of securities: Available-for-sale debt securities (1) $ 242 $ 2,649 $ 57,378 Equity securities $ 2,240 $ 3,005 $ 6,438 Gross realized losses on sale of securities: Available-for-sale debt securities $ (2,060) $ (2,434) $ (464) Equity securities $ (74) $ (208) $ — Realized gains on sales of investment real estate (2) $ — $ 401 $ — (1) In the third and fourth quarters of 2020, the Company took advantage of the market recovery and recognized $56.4 million of net realized gains on the sale of our available-for-sale debt securities that were in an unrealized gain position that is included in net realized gains (losses) on investment in the Consolidated Statements of Income for the year ended December 31, 2020. (2) During the year ended December 31, 2021 the Company completed the sale of a non-income producing investment real estate property. The Company received net cash proceeds of approximately $2.6 million and recognized a pre-tax gain of approximately $0.4 million that is included in net realized gains (losses) on investments in the Consolidated Statements of Income for the year ended December 31, 2021. This investment real estate property was not previously reported under assets held for sale since it was actively marketed and sold within the first quarter of 2021. |
Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Available-for-sale debt securities $ 18,699 $ 11,926 $ 19,091 Equity securities 3,288 2,651 2,445 Cash and cash equivalents (1) 5,945 51 960 Other (2) 492 928 1,050 Total investment income 28,424 15,556 23,546 Less: Investment expenses (3) (2,639) (3,021) (3,153) Net investment income $ 25,785 $ 12,535 $ 20,393 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities | The following table provides the unrealized gains (losses) recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Years Ended December 31, 2022 2021 2020 Unrealized gains (losses) recognized during the reported period $ (13,197) $ (3,459) $ 25 |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Income Producing: Investment real estate $ 7,097 $ 7,091 Less: Accumulated depreciation (1,386) (1,200) Investment real estate, net $ 5,711 $ 5,891 |
Schedule of Depreciation Expense Related to Investment Real Estate | The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Depreciation expense on investment real estate $ 186 $ 186 $ 415 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Ratings from Rating Agencies and Unsecured Amounts Due from Reinsurers Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2022 Standard AM Best and Poor’s Moody’s Due from as of Reinsurer Company Services, Inc. Service, Inc. 2022 2021 Allianz Risk Transfer A+ AA- Aa3 $ 285,323 $ — Florida Hurricane Catastrophe Fund “FHCF” (1) n/a n/a n/a 134,411 136,298 Various Lloyd’s of London Syndicates (2) A A+ n/a 101,482 — Chubb Tempest Reinsurance Ltd. A++ AA Aa3 51,319 — Markel Bermuda Ltd. A A A2 50,981 — DaVinci Reinsurance Ltd. A A+ A3 48,115 — Renaissance Reinsurance Ltd. A+ A+ A1 38,768 20,051 D E Shaw Re (Bermuda) Ltd. (3) n/a n/a n/a 16,680 — Munich Reinsurance America Inc. A+ AA- Aa3 14,616 — Everest Reinsurance Co A+ A+ A1 11,536 — Upsilon RFO Re Ltd. (3) n/a n/a n/a 11,201 — Lumen Re Ltd. (4) A n/a n/a 8,913 — Allianz Risk Transfer (Bermuda) Ltd. — — — — 44,618 Total (5) $ 773,345 $ 200,967 (1) No rating is available, because the fund is not rated. (2) No rating available for Moody’s Investors Service, Inc. (3) No rating is available, because the reinsurer is fully collateralized with a trust agreement. (4) No rating available for Standard and Poor’s Rating Service and Moody’s Investors Service, Inc. (5) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. |
Summary of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2022 Premiums Premiums Losses and Loss Direct $ 1,845,786 $ 1,759,701 $ 1,972,541 Ceded (672,508) (631,075) (1,034,142) Net $ 1,173,278 $ 1,128,626 $ 938,399 For the Year Ended December 31, 2021 Premiums Premiums Losses and Loss Direct $ 1,671,252 $ 1,596,618 $ 1,189,444 Ceded (586,425) (561,155) (410,239) Net $ 1,084,827 $ 1,035,463 $ 779,205 For the Year Ended December 31, 2020 Premiums Premiums Losses and Loss Direct $ 1,517,479 $ 1,395,623 $ 1,080,058 Ceded (512,576) (472,060) (321,248) Net $ 1,004,903 $ 923,563 $ 758,810 |
Schedule of Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2022 2021 Prepaid reinsurance premiums $ 282,427 $ 240,993 Reinsurance recoverable on paid losses and LAE $ 10,170 $ 69,729 Reinsurance recoverable on unpaid losses and LAE 798,680 115,860 Reinsurance recoverable $ 808,850 $ 185,589 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Beginning and Ending Balances and Changes in DPAC, Net of DRCC | The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 DPAC, beginning of year $ 108,822 $ 110,614 $ 91,882 Capitalized Costs 212,067 222,329 217,886 Amortization of DPAC (217,235) (224,121) (199,154) DPAC, end of year $ 103,654 $ 108,822 $ 110,614 |
Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC | As of December 31, 2022* 2021 Statutory capital and surplus UPCIC $ 400,866 $ 378,750 APPCIC $ 22,786 $ 16,104 Ten percent of total liabilities UPCIC $ 151,190 $ 122,292 APPCIC $ 2,023 $ 649 * Unaudited The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Years Ended December 31, 2022* 2021 2020 Combined net income (loss) $ (141,777) $ (102,515) $ (104,339) * Unaudited The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2022 2021 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,246 $ 3,441 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Land $ 5,344 $ 5,344 Building 40,344 35,878 Computers 11,887 9,731 Furniture 3,956 3,170 Automobiles and other vehicles 11,786 11,427 Software 6,894 6,775 Total 80,211 72,325 Less: Accumulated depreciation and amortization (29,143) (22,808) Net of accumulated depreciation and amortization 51,068 49,517 Construction in progress 336 4,165 Property and equipment, net $ 51,404 $ 53,682 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2022 2021 Surplus note $ 5,515 $ 6,985 5.625% Senior unsecured notes 100,000 100,000 Total principal amount 105,515 106,985 Less: unamortized debt issuance costs (2,746) (3,309) Total long-term debt, net $ 102,769 $ 103,676 |
Estimate of Principal Payments to Be Made for the Amount Due on the Surplus Note | The following table provides an estimate of aggregate principal payments to be made for the amounts due on long-term debt as of December 31, 2022 (in thousands): 2023 $ 1,471 2024 1,471 2025 1,471 2026 101,102 2027 — Thereafter — Total long-term debt maturities 105,515 Less: unamortized debt issuance costs (2,746) Total long-term debt maturities, net $ 102,769 |
Schedule of Interest Expense | The following table provides interest expense related to long-term debt during the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Interest Expense: Surplus notes $ 172 $ 113 $ 95 5.625% Senior unsecured notes 5,734 469 — Non-cash expense (1) 703 56 — Total $ 6,609 $ 638 $ 95 (1) Represents amortization of debt issuance costs. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Cumulative Convertible Preferred Stock | The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2022 2021 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 |
Schedule of Shares Repurchased | The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Dollar Repurchased During the Year Aggregate Price per Plan Expiration Amount Ended December 31, Purchase Share Completed or Date Authorized Date (1) Authorized 2022 2021 Price Repurchased Expired December 15, 2022 December 15, 2024 $ 7,997 186,435 $ 1,843 $ 9.89 November 3, 2020 November 3, 2022 $ 20,000 806,324 — 9,800 $ 12.15 November 2022 November 3, 2020 November 3, 2022 $ 20,000 — 116,886 $ 1,609 $ 13.77 November 2022 (1) In November 2020, our Board of Directors authorized a share repurchase of up to $20 million of shares of common stock, which expired in November 2022. At the end of this prior authorization, the Company had repurchased slightly more than $12 million of shares of common stock. On December 15, 2022, our Board of Directors authorized a successor share repurchase program under which the Company is authorized to repurchase up to $7,997,057 of shares of common stock through December 15, 2024, which represents the unused portion of the predecessor authorization. |
Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders | The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2022 2021 2020 Per Share Aggregate Per Share Aggregate Per Share Aggregate First Quarter $ 0.16 $ 5,004 $ 0.16 $ 5,027 $ 0.16 $ 5,219 Second Quarter $ 0.16 $ 4,990 $ 0.16 $ 5,039 $ 0.16 $ 5,164 Third Quarter $ 0.16 $ 4,994 $ 0.16 $ 5,034 $ 0.16 $ 5,130 Fourth Quarter $ 0.29 $ 9,003 $ 0.29 $ 9,096 $ 0.29 $ 9,092 (1) Includes dividend equivalents due to employees who hold performance share units, restricted share units or restricted stock awards which are subject to time-vesting conditions. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Certain Information Related to Stock Options and PSUs | The following table provides certain information related to Stock Options, RSAs, PSUs and RSUs for the year ended December 31, 2022 (in thousands, except per share data): For the Year Ended December 31, 2022 Stock Options Restricted Stock Awards Performance Restricted Number of Weighted Aggregate Weighted Number of Weighted Number Weighted Number Weighted Average Grant Date 2009 Omnibus Plan Outstanding as of 2,820 $ 23.46 — $ — 50 $ 20.17 80 $ 16.84 Granted — — — — — — — — Forfeited (2) 23.97 — — — — — — Exercised — — n/a n/a n/a n/a n/a n/a Vested n/a n/a — — (34) 22.79 (28) 16.73 Expired (54) 24.20 n/a n/a n/a n/a n/a n/a Outstanding as of 2,764 $ 23.44 $ — 5.93 — $ — 16 $ 14.75 52 $ 16.90 Exercisable as of 2,213 $ 25.15 $ — 5.48 2021 Omnibus Plan Outstanding as of — $ — — $ — — $ — 214 $ 16.91 Granted 500 12.50 53 12.32 103 12.19 284 9.96 Forfeited — — — — — — (6) 16.91 Exercised — — n/a n/a n/a n/a n/a n/a Vested n/a n/a — — — — (84) 16.14 Expired — — n/a n/a n/a n/a n/a n/a Outstanding as of 500 $ 12.50 $ — 9.22 53 $ 12.32 103 $ 12.19 408 $ 12.24 Exercisable as of December 31, 2022 — $ — $ — — (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, as amended or issuances under the Company’s Incentive Plan. (2) All shares outstanding as of December 31, 2022, are expected to vest. n/a Not applicable |
Certain Information Regarding Company's Share-Based Compensation | The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Compensation expense: Stock options $ 1,882 $ 2,390 $ 4,519 Restricted stock 372 — 514 Performance share units 466 671 945 Restricted stock units 2,007 2,754 2,717 Total $ 4,727 $ 5,815 $ 8,695 Deferred tax benefits: Stock options $ 126 $ 226 $ 719 Restricted stock — — — Performance share units — — 52 Restricted stock units 387 606 106 Total $ 513 $ 832 $ 877 Realized tax benefits: Stock options $ — $ — $ — Restricted stock — — — Performance share units — 64 275 Restricted stock units 286 590 — Total $ 286 $ 654 $ 275 Excess tax benefits (shortfall): Stock options $ (88) $ (600) $ (209) Restricted stock — — — Performance share units — (76) (28) Restricted stock units (134) 15 — Total $ (222) $ (661) $ (237) Weighted average fair value per option or share: Stock option grants $ 1.64 $ 2.66 $ 3.67 Restricted stock grants $ 12.32 $ — $ — Performance share unit grants $ 12.19 $ 14.68 $ — Restricted stock unit grants $ 9.96 $ 16.79 $ 16.13 Intrinsic value of options exercised $ — $ — $ — Fair value of restricted stock vested $ — $ — $ 252 Fair value of performance share units vested $ 386 $ 925 $ 2,151 Fair value of restricted stock units vested $ 1,310 $ 3,212 $ 1,559 Cash received for strike price and tax withholdings $ 61 $ 84 $ — Shares acquired through cashless exercise (1) 36 69 64 Value of shares acquired through cashless exercise (1) $ 418 $ 1,056 $ 1,315 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of Stock Options exercised, Restricted Stock vested, PSUs vested or RSUs vested. These shares have been canceled by the Company. |
Unrecognized Compensation Expense and Weighted Average Period | The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for Stock Options, Restricted Stock, PSUs and RSUs (dollars in thousands): As of December 31, 2022 Stock Restricted Stock Performance Restricted Unrecognized expense $ 1,387 $ 277 $ 981 $ 4,964 Weighted average remaining years 1.43 0.4 2.00 2.41 |
Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted | The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2022 2021 2020 Weighted-average risk-free interest rate 2.21 % 0.86 % 0.49 % Expected term of option in years 5.74 6.00 6.00 Weighted-average volatility 29.8 % 34.8 % 35.8 % Dividend yield 6.9 % 5.2 % 4.3 % Weighted-average grant date fair value per share $ 1.64 $ 2.66 $ 3.67 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2022 2021 2020 Current: Federal $ 5,674 $ 10,597 $ 1,988 State and local 1,462 1,676 349 Total current expense 7,136 12,273 2,337 Deferred: Federal (10,752) (4,064) 2,403 State and local (1,374) (203) 386 Total deferred expense (benefit) (12,126) (4,267) 2,789 Income tax expense (benefit) $ (4,990) $ 8,006 $ 5,126 |
Reconciles Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: For the Years Ended December 31, 2022 2021 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Increases (decreases) resulting from: State income tax, net of federal tax benefit (1.4) % 1.7 % 3.1 % Effect of change in tax rate 2.0 % 0.1 % 0.5 % Disallowed meals & expenses (0.4) % 0.1 % 0.4 % Disallowed compensation (3.7) % 2.1 % 6.2 % Liability adjustment — — % (9.7) % Excess tax (benefit) shortfall (0.8) % 2.3 % 0.4 % Other, net 1.6 % 0.9 % (0.7) % Effective income tax rate 18.3 % 28.2 % 21.2 % |
Components of Deferred Income Taxes | The Company accounts for income taxes using a balance sheet approach. As of December 31, 2022 and 2021, the significant components of the Company’s deferred income taxes consisted of the following (in thousands): As of December 31, 2022 2021 Deferred income tax assets: Unearned premiums $ 32,410 $ 28,748 Advanced premiums 2,683 2,476 Unpaid losses and LAE 2,574 2,513 Share-based compensation 3,744 3,458 Accrued wages 237 211 Allowance for uncollectible receivables 220 186 Net operating loss carryforwards 7,591 534 Unrealized gain/loss 4,175 890 Other comprehensive income 33,795 4,729 Other 410 77 Total deferred income tax assets 87,839 43,822 Deferred income tax liabilities: Deferred policy acquisition costs, net (25,512) (25,361) Fixed assets (4,484) (1,790) Unpaid loss and LAE transition adjustment (269) (340) Other (316) — Total deferred income tax liabilities (30,581) (27,491) Net deferred income tax asset $ 57,258 $ 16,331 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings (Loss) Per Share Computations | The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings (loss) per share computations for the periods presented (in thousands, except per share data): Years Ended December 31, 2022 2021 2020 Numerator for EPS: Net income (loss) $ (22,257) $ 20,407 $ 19,105 Less: Preferred stock dividends (10) (10) (10) Income (loss) available to common stockholders $ (22,267) $ 20,397 $ 19,095 Denominator for EPS: Weighted average common shares outstanding 30,751 31,218 31,884 Plus: Assumed conversion of share-based compensation (1) — 64 63 Assumed conversion of preferred stock — 25 25 Weighted average diluted common shares outstanding 30,751 31,307 31,972 Basic earnings (loss) per common share $ (0.72) $ 0.65 $ 0.60 Diluted earnings (loss) per common share $ (0.72) $ 0.65 $ 0.60 Weighted average number of antidilutive shares 2,706 2,113 2,753 (1) Represents the dilutive effect of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units and non-vested restricted stock. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 (1) Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale debt securities: Unrealized holding gains $ (118,832) $ (29,247) $ (89,585) $ (24,477) $ (5,731) $ (18,746) $ 33,575 $ 7,884 $ 25,691 Less: Reclassification adjustments (gains) losses realized in net income 1,818 447 1,371 (215) (50) (165) (56,914) (13,605) (43,309) Other comprehensive income (117,014) (28,800) (88,214) (24,692) (5,781) (18,911) (23,339) (5,721) (17,618) Reclassification adjustments — — — — — — 791 194 597 Change in accumulated other $ (117,014) $ (28,800) $ (88,214) $ (24,692) $ (5,781) $ (18,911) $ (22,548) $ (5,527) $ (17,021) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassification adjustments for gains and losses out of AOCI for the periods presented (in thousands): Amounts Reclassified from Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2022 2021 2020 Where Net Income is Presented Unrealized gains (losses) on $ (1,818) $ 215 $ 56,914 Net realized gains (losses) on investments 447 (50) (13,605) Income taxes, current Total reclassification for the period $ (1,371) $ 165 $ 43,309 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured for at Fair Value on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 11,664 $ — $ 11,664 Corporate bonds — 695,061 — 695,061 Mortgage-backed and asset-backed securities — 287,607 — 287,607 Municipal bonds — 12,371 — 12,371 Redeemable preferred stock — 7,923 — 7,923 Equity Securities: Common stock 15,313 — — 15,313 Mutual funds 70,156 — — 70,156 Total assets accounted for at fair value $ 85,469 $ 1,014,626 $ — $ 1,100,095 Fair Value Measurements As of December 31, 2021 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 26,806 $ — $ 26,806 Corporate bonds — 673,805 — 673,805 Mortgage-backed and asset-backed securities — 316,118 — 316,118 Municipal bonds — 14,574 — 14,574 Redeemable preferred stock — 9,152 — 9,152 Equity Securities: Common stock 3,683 — — 3,683 Mutual funds 43,651 — — 43,651 Total assets accounted for at fair value $ 47,334 $ 1,040,455 $ — $ 1,087,789 |
Summary of Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): As of December 31, 2022 2021 Carrying Estimated Carrying Estimated Liabilities (debt): Surplus note (1) $ 5,515 $ 5,126 $ 6,985 $ 6,723 5.625% Senior unsecured notes (2) 100,000 100,350 100,000 99,464 Total debt $ 105,515 $ 105,476 $ 106,985 $ 106,187 (1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note (Level 3). (2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2. |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance | The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2018 to 2021, is presented as supplementary information and is unaudited. As of December 31, 2022 Total of IBNR Plus Expected Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance Development (Redundancy) Cumulative Number For the Years Ended December 31, on Reported Claims of Reported Claims Accident Year 2018 * 2019 * 2020 * 2021 * 2022 2018 $ 334,368 $ 335,946 $ 348,792 $ 346,785 $ 348,534 $ (1,175) 54,468 2019 446,419 452,029 467,198 470,372 (9,236) 47,647 2020 617,795 637,764 635,412 (14,382) 81,027 2021 641,679 646,977 (23,473) 60,470 2022 793,341 250,623 85,543 Total $ 2,894,636 Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2018 * 2019 * 2020 * 2021 * 2022 2018 $ 253,008 $ 327,310 $ 348,225 $ 353,506 $ 353,566 2019 335,991 446,997 463,924 480,967 2020 452,560 604,201 645,553 2021 461,709 665,008 2022 518,829 Total $ 2,663,923 All outstanding liabilities before 2018, net of reinsurance (9,542) Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 221,171 * Presented as unaudited required supplementary information. |
Supplementary Information About Average Historical Claims Duration | Set forth is the supplementary information about average historical claims duration as of December 31, 2022: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 57.4 % 19.6 % 10.1 % 5.9 % 3.3 % |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE | Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2022 (in thousands): December 31, 2022 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 221,171 Reinsurance recoverable on unpaid claims 798,680 Liabilities for adjusting and other claim payments 18,939 Total gross liability for unpaid claims and claim adjustment expense $ 1,038,790 |
Change in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of year 346,216 322,465 267,760 Less: Reinsurance recoverable (115,860) (119,522) (123,221) Net balance at beginning of period 230,356 202,943 144,539 Incurred (recovered) related to: Current year 913,419 724,755 700,473 Prior years 24,980 54,450 58,337 Total incurred 938,399 779,205 758,810 Paid related to: Current year 624,580 526,695 513,308 Prior years 304,065 225,097 187,098 Total paid 928,645 751,792 700,406 Net balance at end of period 240,110 230,356 202,943 Plus: Reinsurance recoverable 798,680 115,860 119,522 Balance at end of year $ 1,038,790 $ 346,216 $ 322,465 |
Quarterly Results for 2022 an_2
Quarterly Results for 2022 and 2021 (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results for the Periods Presented | The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth For the Year Ended December 31, 2022 Premiums earned, net 269,064 277,061 290,631 291,870 Net investment income 4,042 5,221 6,074 10,448 Total revenues 287,482 292,006 312,810 330,360 Total expenses 263,403 279,595 404,417 295,881 Net income (loss) 17,537 7,370 (72,275) 25,111 Basic earnings (loss) per share $ 0.56 $ 0.24 $ (2.36) $ 0.83 Diluted earnings (loss) per share $ 0.56 $ 0.24 $ (2.36) $ 0.82 For the Year Ended December 31, 2021 Premiums earned, net 243,305 256,172 264,654 271,332 Net investment income 2,986 2,858 2,797 3,894 Total revenues 262,757 279,181 287,254 292,659 Total expenses 226,386 249,087 260,761 356,566 Net income (loss) 26,408 21,941 20,183 (48,125) Basic earnings (loss) per share $ 0.85 $ 0.70 $ 0.65 $ (1.54) Diluted earnings (loss) per share $ 0.84 $ 0.70 $ 0.64 $ (1.54) |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Additional Information (Details) | Dec. 31, 2022 state |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states | 19 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Significant Accounting Policies [Line Items] | ||
Accrued interest receivable on available-for-sale securities | $ 7,000,000 | $ 4,900,000 |
Assets held for sale | 0 | 0 |
Allowances for doubtful accounts | 900,000 | 600,000 |
Accruals for premium deficiency | 0 | 0 |
Estimated credit loss allowance | $ 0 | $ 0 |
Software | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 3 years | |
Minimum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 3 years | |
Maximum | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 27 years 6 months |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 1,152,852 | $ 1,061,192 | |
Allowance for Expected Credit Losses | (920) | (489) | $ (186) |
Gross Unrealized Gains | 278 | 1,129 | |
Gross Unrealized Losses | (137,584) | (21,377) | |
Fair Value | 1,014,626 | 1,040,455 | |
U.S. government obligations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 12,602 | 27,076 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 0 | 64 | |
Gross Unrealized Losses | (938) | (334) | |
Fair Value | 11,664 | 26,806 | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 788,737 | 687,058 | |
Allowance for Expected Credit Losses | (729) | (371) | |
Gross Unrealized Gains | 130 | 843 | |
Gross Unrealized Losses | (93,077) | (13,725) | |
Fair Value | 695,061 | 673,805 | |
Mortgage-backed and asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 327,166 | 322,844 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 148 | 194 | |
Gross Unrealized Losses | (39,707) | (6,920) | |
Fair Value | 287,607 | 316,118 | |
Municipal bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 14,924 | 14,925 | |
Allowance for Expected Credit Losses | (2) | (1) | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2,551) | (350) | |
Fair Value | 12,371 | 14,574 | |
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 9,423 | 9,289 | |
Allowance for Expected Credit Losses | (189) | (117) | $ (38) |
Gross Unrealized Gains | 0 | 28 | |
Gross Unrealized Losses | (1,311) | (48) | |
Fair Value | $ 7,923 | $ 9,152 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,014,626 | $ 1,040,455 |
Percentage of Total Fair Value | 100% | 100% |
AAA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 297,475 | $ 321,975 |
Percentage of Total Fair Value | 29.30% | 31% |
AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 154,975 | $ 139,186 |
Percentage of Total Fair Value | 15.30% | 13.40% |
A | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 327,427 | $ 339,500 |
Percentage of Total Fair Value | 32.30% | 32.60% |
BBB | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 232,316 | $ 234,358 |
Percentage of Total Fair Value | 22.90% | 22.50% |
No Rating Available | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 2,433 | $ 5,436 |
Percentage of Total Fair Value | 0.20% | 0.50% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,152,852 | $ 1,061,192 |
Fair Value | 1,014,626 | 1,040,455 |
Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 327,166 | 322,844 |
Fair Value | 287,607 | 316,118 |
Agency | Mortgage-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 157,672 | 147,992 |
Fair Value | 133,928 | 143,819 |
Non-agency | Mortgage-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,328 | 59,906 |
Fair Value | 50,478 | 58,263 |
Auto loan receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,128 | 67,352 |
Fair Value | 59,370 | 66,877 |
Credit card receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 657 | 4,741 |
Fair Value | 612 | 4,719 |
Other receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,381 | 42,853 |
Fair Value | $ 43,219 | $ 42,440 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 107 | 404 |
Less than 12 months, Fair value | $ 82,130 | $ 682,402 |
Less than 12 months, Unrealized losses | $ (6,045) | $ (13,818) |
12 months or longer, Number of issues | security | 401 | 33 |
12 months or longer, Fair value | $ 560,745 | $ 45,645 |
12 months or longer, Unrealized losses | $ (85,470) | $ (1,853) |
U.S. government obligations and agencies | Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 2 | 4 |
Less than 12 months, Fair value | $ 2,721 | $ 18,913 |
Less than 12 months, Unrealized losses | $ (110) | $ (111) |
12 months or longer, Number of issues | security | 5 | 4 |
12 months or longer, Fair value | $ 8,943 | $ 5,016 |
12 months or longer, Unrealized losses | $ (828) | $ (223) |
Corporate bonds | Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 40 | 249 |
Less than 12 months, Fair value | $ 26,563 | $ 378,595 |
Less than 12 months, Unrealized losses | $ (2,910) | $ (7,468) |
12 months or longer, Number of issues | security | 247 | 18 |
12 months or longer, Fair value | $ 325,992 | $ 17,356 |
12 months or longer, Unrealized losses | $ (46,451) | $ (679) |
Mortgage-backed and asset-backed securities | Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 64 | 145 |
Less than 12 months, Fair value | $ 52,751 | $ 274,883 |
Less than 12 months, Unrealized losses | $ (2,974) | $ (5,969) |
12 months or longer, Number of issues | security | 146 | 11 |
12 months or longer, Fair value | $ 219,189 | $ 23,273 |
12 months or longer, Unrealized losses | $ (36,733) | $ (951) |
Municipal bonds | Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 0 | 5 |
Less than 12 months, Fair value | $ 0 | $ 9,811 |
Less than 12 months, Unrealized losses | $ 0 | $ (269) |
12 months or longer, Number of issues | security | 3 | 0 |
12 months or longer, Fair value | $ 6,621 | $ 0 |
12 months or longer, Unrealized losses | $ (1,458) | $ 0 |
Redeemable preferred stock | Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 1 | 1 |
Less than 12 months, Fair value | $ 95 | $ 200 |
Less than 12 months, Unrealized losses | $ (51) | $ (1) |
12 months or longer, Number of issues | security | 0 | 0 |
12 months or longer, Fair value | $ 0 | $ 0 |
12 months or longer, Unrealized losses | $ 0 | $ 0 |
Investments - AFS Allowance for
Investments - AFS Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | $ 489 | $ 186 |
Provision for (or reversal of) credit loss expense | 431 | 303 |
Expected credit loss on available-for-sale debt securities at end of period | 920 | 489 |
Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 371 | 148 |
Provision for (or reversal of) credit loss expense | 358 | 223 |
Expected credit loss on available-for-sale debt securities at end of period | 729 | 371 |
Municipal Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 1 | 0 |
Provision for (or reversal of) credit loss expense | 1 | 1 |
Expected credit loss on available-for-sale debt securities at end of period | 2 | 1 |
Redeemable preferred stock | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 117 | 38 |
Provision for (or reversal of) credit loss expense | 72 | 79 |
Expected credit loss on available-for-sale debt securities at end of period | $ 189 | $ 117 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 76,691 | |
Due after one year through five years | 569,239 | |
Due after five years through ten years | 479,147 | |
Due after ten years | 25,231 | |
Perpetual maturity securities | 2,544 | |
Amortized Cost | 1,152,852 | $ 1,061,192 |
Fair Value | ||
Due in one year or less | 75,226 | |
Due after one year through five years | 516,320 | |
Due after five years through ten years | 401,132 | |
Due after ten years | 19,831 | |
Perpetual maturity securities | 2,117 | |
Fair Value | $ 1,014,626 | $ 1,040,455 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and maturities (fair value) | $ 98,409 | $ 186,507 | $ 1,148,418 | |
Proceeds from sales of equity securities | 34,178 | 85,103 | 81,559 | |
Gross realized gains on sale of securities: | 242 | 2,649 | 57,378 | |
Equity Securities, FV-NI, Realized Gain | 2,240 | 3,005 | 6,438 | |
Gross realized losses on sale of securities: | (2,060) | (2,434) | (464) | |
Equity Securities, FV-NI, Realized Loss | (74) | (208) | 0 | |
Net realized gains (losses) on investments | $ 56,400 | 348 | 5,892 | 63,352 |
Proceeds from sales of investment real estate | 0 | 2,591 | 0 | |
Realized gains on sales of investment real estate | $ 0 | $ 401 | $ 0 |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||||||||||
Total investment income | $ 28,424 | $ 15,556 | $ 23,546 | ||||||||
Less: Investment expenses | (2,639) | (3,021) | (3,153) | ||||||||
Net investment income | $ 10,448 | $ 6,074 | $ 5,221 | $ 4,042 | $ 3,894 | $ 2,797 | $ 2,858 | $ 2,986 | 25,785 | 12,535 | 20,393 |
Available-for-sale debt securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 18,699 | 11,926 | 19,091 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 3,288 | 2,651 | 2,445 | ||||||||
Cash and Cash Equivalents | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 5,945 | 51 | 960 | ||||||||
Other | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 492 | $ 928 | $ 1,050 |
Investments - Summary of Detail
Investments - Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period | $ (13,197) | $ (3,459) | $ 25 |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 5,711 | $ 5,891 |
Income Producing | ||
Real Estate [Line Items] | ||
Investment real estate | 7,097 | 7,091 |
Less: Accumulated depreciation | $ (1,386) | $ (1,200) |
Investments - Schedule of Depre
Investments - Schedule of Depreciation Expense Related to Investment Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Investment | |||
Real Estate [Line Items] | |||
Depreciation expense on investment real estate | $ 186 | $ 186 | $ 415 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate [Line Items] | ||||
Proceeds from sales of investment real estate | $ 0 | $ 2,591 | $ 0 | |
Realized gains on sales of investment real estate | $ 0 | 401 | $ 0 | |
Income Producing | ||||
Real Estate [Line Items] | ||||
Proceeds from sales of investment real estate | $ 8,900 | |||
Realized gains on sales of investment real estate | 2,300 | |||
Real Estate Property | ||||
Real Estate [Line Items] | ||||
Realized gains on sales of investment real estate | 200 | |||
Proceeds from sale of premises and equipment | $ 400 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity, Total | Amounts Due From Reinsurers | Customers with Greater than 3% of Equity | |
Effects of Reinsurance [Line Items] | |
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 773,345 | $ 200,967 |
Florida Hurricane Catastrophe Fund “FHCF” | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 134,411 | 136,298 |
D E Shaw Re (Bermuda) Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 16,680 | 0 |
Upsilon RFO Re Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 11,201 | 0 |
Allianz Risk Transfer (Bermuda) Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 0 | 44,618 |
AM Best Company A Plus Rating | Moody's, Aa3 Rating | Standard & Poor's, AA- Rating | Allianz Risk Transfer | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 285,323 | 0 |
AM Best Company A Plus Rating | Moody's, Aa3 Rating | Standard & Poor's, AA- Rating | Munich Reinsurance America Inc. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 14,616 | 0 |
AM Best Company A Plus Rating | Moody's A1 Rating | Standard & Poor's, A Plus Rating | Renaissance Reinsurance Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 38,768 | 20,051 |
AM Best Company A Plus Rating | Moody's A1 Rating | Standard & Poor's, A Plus Rating | Everest Reinsurance Co | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 11,536 | 0 |
AM Best, A Rating | Lumen Re Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 8,913 | 0 |
AM Best, A Rating | Standard & Poor's, A Plus Rating | Various Lloyd’s Of London Syndicates | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 101,482 | 0 |
AM Best, A Rating | Moody's, A2 Rating | Standard & Poor's, A Rating | Markel Bermuda Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 50,981 | 0 |
AM Best, A Rating | Moody's, A3 Rating | Standard & Poor's, A Plus Rating | DaVinci Reinsurance Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 48,115 | 0 |
AM Best, A++ Rating | Moody's, Aa3 Rating | Standard & Poor's, AA Rating | Chubb Tempest Reinsurance Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 51,319 | $ 0 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct premiums written | $ 1,845,786 | $ 1,671,252 | $ 1,517,479 | ||||||||
Ceded premiums written | (672,508) | (586,425) | (512,576) | ||||||||
Net premiums written | 1,173,278 | 1,084,827 | 1,004,903 | ||||||||
Direct premiums earned | 1,759,701 | 1,596,618 | 1,395,623 | ||||||||
Ceded premiums earned | (631,075) | (561,155) | (472,060) | ||||||||
Premiums earned, net | $ 291,870 | $ 290,631 | $ 277,061 | $ 269,064 | $ 271,332 | $ 264,654 | $ 256,172 | $ 243,305 | 1,128,626 | 1,035,463 | 923,563 |
Direct Losses and Loss Adjustment Expenses | 1,972,541 | 1,189,444 | 1,080,058 | ||||||||
Ceded Losses and Loss Adjustment Expenses | (1,034,142) | (410,239) | (321,248) | ||||||||
Net Losses and Loss Adjustment Expenses | $ 938,399 | $ 779,205 | $ 758,810 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums (Payable) and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reinsurance Disclosures [Abstract] | ||||
Prepaid reinsurance premiums | $ 282,427 | $ 240,993 | ||
Reinsurance recoverable on paid losses and LAE | 10,170 | 69,729 | ||
Reinsurance recoverable on unpaid losses and LAE | 798,680 | 115,860 | $ 119,522 | $ 123,221 |
Reinsurance recoverable | $ 808,850 | $ 185,589 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Costs [Roll Forward] | |||
DPAC, beginning of year | $ 108,822 | $ 110,614 | $ 91,882 |
Capitalized Costs | 212,067 | 222,329 | 217,886 |
Amortization of DPAC | (217,235) | (224,121) | (199,154) |
DPAC, end of year | $ 103,654 | $ 108,822 | $ 110,614 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | $ 231,900,000 | $ 149,900,000 | $ 151,000,000 |
UPCIC | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | 0 | 0 | $ 0 |
APPCIC | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | $ 0 | $ 0 | |
UPCIC and APPCIC | |||
Statutory Accounting Practices [Line Items] | |||
Minimum capitalization rate | 10% | ||
UPCIC and APPCIC | Minimum | |||
Statutory Accounting Practices [Line Items] | |||
Minimum capitalization amount | $ 15,000,000 |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
UPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 400,866 | $ 378,750 |
Ten percent of total liabilities | 151,190 | 122,292 |
APPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 22,786 | 16,104 |
Ten percent of total liabilities | $ 2,023 | $ 649 |
Insurance Operations - Combined
Insurance Operations - Combined Net Income (Loss) For UPCIC and APPCIC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
Combined net income (loss) | $ (141,777) | $ (102,515) | $ (104,339) |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 3,246 | $ 3,441 |
Restricted cash and cash equivalents | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 2,635 | $ 2,635 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation and amortization | $ (29,143) | $ (22,808) |
Property and equipment, net | 51,404 | 53,682 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,344 | 5,344 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 40,344 | 35,878 |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Total | 11,887 | 9,731 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,956 | 3,170 |
Automobiles and other vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | 11,786 | 11,427 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,894 | 6,775 |
Net of accumulated depreciation | ||
Property, Plant and Equipment [Line Items] | ||
Total | 80,211 | 72,325 |
Property and equipment, net | 51,068 | 49,517 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 336 | $ 4,165 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 7.1 | $ 6.6 | $ 4.7 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 105,515 | $ 106,985 |
Less: unamortized debt issuance costs | (2,746) | (3,309) |
Total long-term debt maturities, net | 102,769 | 103,676 |
Surplus note | ||
Debt Instrument [Line Items] | ||
Total principal amount | 5,515 | 6,985 |
5.625% Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 100,000 | $ 100,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Oct. 31, 2022 | Nov. 23, 2021 | Aug. 31, 2021 | Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2006 | Nov. 09, 2006 | |
Debt Instrument [Line Items] | ||||||||||
Surplus note | $ 5,500,000 | $ 5,500,000 | ||||||||
Principal repayments of Surplus Note | 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||||
Surplus during the term of surplus note | $ 50,000,000 | |||||||||
Revolving Credit Facility | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2% | |||||||||
2021 Revolving Loan | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, expiration period | 364 days | |||||||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 | $ 35,000,000 | ||||||||
Borrowings on line of credit facility | 0 | |||||||||
2022 Revolving Loan | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, expiration period | 364 days | |||||||||
Line of credit facility, maximum borrowing capacity | $ 37,500,000 | $ 37,500,000 | ||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | |||||||||
Borrowings on line of credit facility | $ 0 | |||||||||
Surplus note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unsecured term loan agreement | $ 25,000,000 | |||||||||
Debt term | 20 years | |||||||||
Effective interest rate | 2.83% | 2.83% | 1.50% | 1.05% | ||||||
Principal repayments of Surplus Note | $ 368,000 | |||||||||
Maturity year of debt instrument | through 2026 | |||||||||
Net written premium to surplus ratio | 200% | |||||||||
Gross written premium to surplus ratio | 600% | |||||||||
Surplus note | Hurricane | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Surplus and Reinsurance sufficient to cover in excess of UPCIC probable maximum loss | 1-in-100 year | |||||||||
Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repurchased amount | $ 100,000,000 | |||||||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unsecured term loan agreement | $ 100,000,000 | |||||||||
Maturity year of debt instrument | 2026 | |||||||||
Stated percentage | 5.625% | 5.625% | ||||||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 102.8125% | |||||||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 101.40625% | |||||||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period Three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price | 100% |
Long-Term Debt - Estimate of Pr
Long-Term Debt - Estimate of Principal Payments to be Made for the Amount Due on the Surplus Note (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 1,471 | |
2024 | 1,471 | |
2025 | 1,471 | |
2026 | 101,102 | |
2027 | 0 | |
Thereafter | 0 | |
Total long-term debt maturities | 105,515 | $ 106,985 |
Less: unamortized debt issuance costs | (2,746) | (3,309) |
Total long-term debt maturities, net | $ 102,769 | $ 103,676 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Non-cash expense | $ 703 | $ 56 | $ 0 |
Total | 6,609 | 638 | 95 |
Surplus note | |||
Debt Instrument [Line Items] | |||
Total | 172 | 113 | 95 |
5.625% Senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Total | $ 5,734 | $ 469 | $ 0 |
Stockholder's Equity - Cumulati
Stockholder's Equity - Cumulative Convertible Preferred Stock (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10,000 | 10,000 |
Series A | ||
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10,000 | 10,000 |
Conversion factor | 2.50% | 2.50% |
Common shares resulting if converted | 25,000 | 25,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Line Items] | |||||||
Series A preferred stock pays a cumulative dividend | $ 1 | $ 1 | $ 1 | ||||
Dividend paid to immediate parent company | $ 231,900,000 | $ 149,900,000 | $ 151,000,000 | ||||
UPCIC | |||||||
Equity [Line Items] | |||||||
Dividend paid to immediate parent company | 0 | 0 | 0 | ||||
Capital contribution to subsidiaries | 84,000,000 | 92,000,000 | 114,000,000 | ||||
APPCIC | |||||||
Equity [Line Items] | |||||||
Dividend paid to immediate parent company | 0 | 0 | |||||
Capital contribution to subsidiaries | 3,000,000 | 0 | $ 0 | ||||
Series A | |||||||
Equity [Line Items] | |||||||
Series A preferred stock pays a cumulative dividend | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||
Preferred stock aggregate dividends | $ 10,000 | $ 10,000 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Shares Repurchased (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 15, 2022 | Nov. 30, 2020 | |
Equity [Line Items] | |||||
Shares repurchased during the period | $ 11,643,000 | $ 1,609,000 | $ 28,921,000 | ||
Maximum | |||||
Equity [Line Items] | |||||
Amount of stock repurchase plan authorized | $ 12,000,000 | ||||
December 15, 2022 | |||||
Equity [Line Items] | |||||
Shares repurchased (in shares) | 186,435 | ||||
Shares repurchased during the period | $ 1,843,000 | ||||
Shares repurchased during period (in USD per share) | $ 9.89 | ||||
December 15, 2022 | Maximum | |||||
Equity [Line Items] | |||||
Amount of stock repurchase plan authorized | $ 7,997,000 | $ 7,997,057 | |||
November 3, 2020 | |||||
Equity [Line Items] | |||||
Shares repurchased (in shares) | 806,324 | 116,886 | |||
Shares repurchased during the period | $ 9,800,000 | $ 1,609,000 | |||
Shares repurchased during period (in USD per share) | $ 12.15 | $ 13.77 | |||
November 3, 2020 | Maximum | |||||
Equity [Line Items] | |||||
Amount of stock repurchase plan authorized | $ 20,000,000 | $ 20,000,000 | |||
November 2022 | Maximum | |||||
Equity [Line Items] | |||||
Amount of stock repurchase plan authorized | $ 20,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||||||||||||||
Dividends per share declared on outstanding common stock (in USD per share) | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.77 | $ 0.77 | $ 0.77 |
Aggregate Amount | $ 9,003 | $ 4,994 | $ 4,990 | $ 5,004 | $ 9,096 | $ 5,034 | $ 5,039 | $ 5,027 | $ 9,092 | $ 5,130 | $ 5,164 | $ 5,219 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2022 | Apr. 22, 2021 | |
Outstanding Shares | 2021 Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized (in shares) | 1,835,000 | |
Options available (in shares) | 687,910 | |
Stock Options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option awards, expiration period | 5 years | |
Vested and non-vested stock awards, vesting service period | 1 year | |
Stock Options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option awards, expiration period | 10 years | |
Vested and non-vested stock awards, vesting service period | 3 years | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and non-vested stock awards, vesting service period | 1 year | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and non-vested stock awards, vesting service period | 3 years | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and non-vested stock awards, vesting service period | 3 years | |
Conversion ratio of awards vesting | 100% | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Conversion ratio of awards vesting | 100% | |
Restricted Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and non-vested stock awards, vesting service period | 1 year | |
Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested and non-vested stock awards, vesting service period | 3 years |
Share-Based Compensation - Cert
Share-Based Compensation - Certain Information Related to Stock Options and PSUs (Detail) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options | 2009 Omnibus Plan | |||
Number of Options: | |||
Options outstanding, beginning of period (in shares) | 2,820 | ||
Options, granted (in shares) | 0 | ||
Options, forfeited (in shares) | (2) | ||
Options exercised (in shares) | 0 | ||
Options, expired (in shares) | (54) | ||
Options outstanding, end of period (in shares) | 2,764 | 2,820 | |
Options, exercisable, end of period (in shares) | 2,213 | ||
Weighted Average Exercise Price per Share: | |||
Options outstanding, beginning of period, weighted average exercise price per share (in dollars per share) | $ 23.46 | ||
Options granted, weighted average exercise price per share (in dollars per share) | 0 | ||
Options forfeited, weighted average exercise price per share (in dollars per share) | 23.97 | ||
Options exercised, weighted average exercise price per share (in dollars per share) | 0 | ||
Options expired, weighted average exercise price per share (in dollars per share) | 24.20 | ||
Options outstanding, end of period, weighted average exercise price per share (in dollars per share) | 23.44 | $ 23.46 | |
Options exercisable, end of period, weighted average exercise price per share (in dollars per share) | $ 25.15 | ||
Options outstanding, aggregate intrinsic value | $ 0 | ||
Options exercisable, aggregate intrinsic value | $ 0 | ||
Options outstanding, weighted average remaining term | 5 years 11 months 4 days | ||
Options exercisable, weighted average remaining term | 5 years 5 months 23 days | ||
Stock Options | 2021 Omnibus Plan | |||
Number of Options: | |||
Options outstanding, beginning of period (in shares) | 0 | ||
Options, granted (in shares) | 500 | ||
Options, forfeited (in shares) | 0 | ||
Options exercised (in shares) | 0 | ||
Options, expired (in shares) | 0 | ||
Options outstanding, end of period (in shares) | 500 | 0 | |
Options, exercisable, end of period (in shares) | 0 | ||
Weighted Average Exercise Price per Share: | |||
Options outstanding, beginning of period, weighted average exercise price per share (in dollars per share) | $ 0 | ||
Options granted, weighted average exercise price per share (in dollars per share) | 12.50 | ||
Options forfeited, weighted average exercise price per share (in dollars per share) | 0 | ||
Options exercised, weighted average exercise price per share (in dollars per share) | 0 | ||
Options expired, weighted average exercise price per share (in dollars per share) | 0 | ||
Options outstanding, end of period, weighted average exercise price per share (in dollars per share) | 12.50 | $ 0 | |
Options exercisable, end of period, weighted average exercise price per share (in dollars per share) | $ 0 | ||
Options outstanding, aggregate intrinsic value | $ 0 | ||
Options exercisable, aggregate intrinsic value | $ 0 | ||
Restricted Stock Awards | |||
Weighted Average Grant Date Fair Value per Share: | |||
Granted, weighted average grant date fair value (in USD per share) | $ 12.32 | $ 0 | $ 0 |
Restricted Stock Awards | 2009 Omnibus Plan | |||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 0 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 0 | ||
Granted, weighted average grant date fair value (in USD per share) | 0 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 0 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | $ 0 | $ 0 | |
Restricted Stock Awards | 2021 Omnibus Plan | |||
Weighted Average Exercise Price per Share: | |||
Options exercisable, weighted average remaining term | 9 years 2 months 19 days | ||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 0 | ||
Granted (in shares) | 53 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 53 | 0 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 0 | ||
Granted, weighted average grant date fair value (in USD per share) | 12.32 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 0 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | 12.32 | $ 0 | |
Performance Share Units | |||
Weighted Average Grant Date Fair Value per Share: | |||
Granted, weighted average grant date fair value (in USD per share) | $ 12.19 | $ 14.68 | 0 |
Performance Share Units | 2009 Omnibus Plan | |||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 50 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | (34) | ||
Outstanding, ending balance (in shares) | 16 | 50 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 20.17 | ||
Granted, weighted average grant date fair value (in USD per share) | 0 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 22.79 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | $ 14.75 | $ 20.17 | |
Performance Share Units | 2021 Omnibus Plan | |||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 0 | ||
Granted (in shares) | 103 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 103 | 0 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 0 | ||
Granted, weighted average grant date fair value (in USD per share) | 12.19 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 0 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | 12.19 | $ 0 | |
Restricted Stock Units | |||
Weighted Average Grant Date Fair Value per Share: | |||
Granted, weighted average grant date fair value (in USD per share) | $ 9.96 | $ 16.79 | $ 16.13 |
Restricted Stock Units | 2009 Omnibus Plan | |||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 80 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Vested (in shares) | (28) | ||
Outstanding, ending balance (in shares) | 52 | 80 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 16.84 | ||
Granted, weighted average grant date fair value (in USD per share) | 0 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 16.73 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | $ 16.90 | $ 16.84 | |
Restricted Stock Units | 2021 Omnibus Plan | |||
Number of Shares: | |||
Outstanding, beginning balance (in shares) | 214 | ||
Granted (in shares) | 284 | ||
Forfeited (in shares) | (6) | ||
Vested (in shares) | (84) | ||
Outstanding, ending balance (in shares) | 408 | 214 | |
Weighted Average Grant Date Fair Value per Share: | |||
Outstanding, beginning of period, weighted average grant date fair value per share (in dollars per share) | $ 16.91 | ||
Granted, weighted average grant date fair value (in USD per share) | 9.96 | ||
Forfeited, weighted average grant date fair value (in dollars per share) | 16.91 | ||
Vested, weighted average grant date fair value (in dollars per share) | 16.14 | ||
Outstanding, end of period, weighted average grant date fair value per share (in dollars per share) | $ 12.24 | $ 16.91 |
Share-Based Compensation - Ce_2
Share-Based Compensation - Certain Information Regarding Company's Share-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense, Total | $ 4,727 | $ 5,815 | $ 8,695 |
Deferred tax benefits, Total | 513 | 832 | 877 |
Realized tax benefits, Total | 286 | 654 | 275 |
Excess tax benefits (shortfall) | (222) | (661) | (237) |
Intrinsic value of options exercised | 0 | 0 | 0 |
Fair value of stock and units vested | 104 | 241 | 646 |
Cash received for strike price and tax withholdings | $ 61 | $ 84 | $ 0 |
Shares acquired through cashless exercise | 36 | 69 | 64 |
Value of shares acquired through cashless exercise | $ 418 | $ 1,056 | $ 1,315 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense, Stock options | 1,882 | 2,390 | 4,519 |
Deferred tax benefits, Total | 126 | 226 | 719 |
Realized tax benefits, Total | 0 | 0 | 0 |
Excess tax benefits (shortfall) | $ (88) | $ (600) | $ (209) |
Weighted average fair value per option or share, Stock option grants (in USD per share) | $ 1.64 | $ 2.66 | $ 3.67 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 372 | $ 0 | $ 514 |
Deferred tax benefits, Total | 0 | 0 | 0 |
Realized tax benefits, Total | 0 | 0 | 0 |
Excess tax benefits (shortfall) | $ 0 | $ 0 | $ 0 |
Granted, weighted average grant date fair value (in USD per share) | $ 12.32 | $ 0 | $ 0 |
Fair value of stock and units vested | $ 0 | $ 0 | $ 252 |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 466 | 671 | 945 |
Deferred tax benefits, Total | 0 | 0 | 52 |
Realized tax benefits, Total | 0 | 64 | 275 |
Excess tax benefits (shortfall) | $ 0 | $ (76) | $ (28) |
Granted, weighted average grant date fair value (in USD per share) | $ 12.19 | $ 14.68 | $ 0 |
Fair value of stock and units vested | $ 386 | $ 925 | $ 2,151 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 2,007 | 2,754 | 2,717 |
Deferred tax benefits, Total | 387 | 606 | 106 |
Realized tax benefits, Total | 286 | 590 | 0 |
Excess tax benefits (shortfall) | $ (134) | $ 15 | $ 0 |
Granted, weighted average grant date fair value (in USD per share) | $ 9.96 | $ 16.79 | $ 16.13 |
Fair value of stock and units vested | $ 1,310 | $ 3,212 | $ 1,559 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Weighted Average Period (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, options | $ 1,387 |
Weighted average remaining years, options | 1 year 5 months 4 days |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, awards other than options | $ 277 |
Weighted average remaining years, awards other than options | 4 months 24 days |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, awards other than options | $ 981 |
Weighted average remaining years, awards other than options | 2 years |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense, awards other than options | $ 4,964 |
Weighted average remaining years, awards other than options | 2 years 4 months 28 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted (Detail) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average risk-free interest rate | 2.21% | 0.86% | 0.49% |
Expected term of option in years | 5 years 8 months 26 days | 6 years | 6 years |
Weighted-average volatility | 29.80% | 34.80% | 35.80% |
Dividend yield | 6.90% | 5.20% | 4.30% |
Weighted-average grant date fair value per share (in USD per share) | $ 1.64 | $ 2.66 | $ 3.67 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |||
Company contribution percentage | 100% | ||
Participant's contribution percentage | 5% | ||
Additional profit-sharing contribution | $ 0 | $ 0 | $ 0 |
Aggregate contributions | $ 3,400,000 | $ 2,900,000 | $ 2,600,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 5,674 | $ 10,597 | $ 1,988 |
State and local | 1,462 | 1,676 | 349 |
Total current expense | 7,136 | 12,273 | 2,337 |
Deferred: | |||
Federal | (10,752) | (4,064) | 2,403 |
State and local | (1,374) | (203) | 386 |
Total deferred expense (benefit) | (12,126) | (4,267) | 2,789 |
Income tax expense (benefit) | $ (4,990) | $ 8,006 | $ 5,126 |
Income Taxes - Reconciles Statu
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Increases (decreases) resulting from: | |||
State income tax, net of federal tax benefit | (1.40%) | 1.70% | 3.10% |
Effect of change in tax rate | 2% | 0.10% | 0.50% |
Disallowed meals & expenses | (0.40%) | 0.10% | 0.40% |
Disallowed compensation | (3.70%) | 2.10% | 6.20% |
Liability adjustment | 0% | 0% | (9.70%) |
Excess tax (benefit) shortfall | (0.80%) | 2.30% | 0.40% |
Other, net | 1.60% | 0.90% | (0.70%) |
Effective income tax rate | 18.30% | 28.20% | 21.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Excess tax (benefit) shortfall from share-based compensation | $ 222,000 | $ 661,000 | $ 237,000 |
Uncertain tax liabilities | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Unearned premiums | $ 32,410 | $ 28,748 |
Advanced premiums | 2,683 | 2,476 |
Unpaid losses and LAE | 2,574 | 2,513 |
Share-based compensation | 3,744 | 3,458 |
Accrued wages | 237 | 211 |
Allowance for uncollectible receivables | 220 | 186 |
Net operating loss carryforwards | 7,591 | 534 |
Unrealized gain/loss | 4,175 | 890 |
Other comprehensive income | 33,795 | 4,729 |
Other | 410 | 77 |
Total deferred income tax assets | 87,839 | 43,822 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs, net | (25,512) | (25,361) |
Fixed assets | (4,484) | (1,790) |
Unpaid loss and LAE transition adjustment | (269) | (340) |
Other | (316) | 0 |
Total deferred income tax liabilities | (30,581) | (27,491) |
Net deferred income tax asset | $ 57,258 | $ 16,331 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for EPS: | |||||||||||
Net income (loss) | $ 25,111 | $ (72,275) | $ 7,370 | $ 17,537 | $ (48,125) | $ 20,183 | $ 21,941 | $ 26,408 | $ (22,257) | $ 20,407 | $ 19,105 |
Less: Preferred stock dividends | (10) | (10) | (10) | ||||||||
Income (loss) available to common stockholders | $ (22,267) | $ 20,397 | $ 19,095 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average common shares outstanding (in shares) | 30,751 | 31,218 | 31,884 | ||||||||
Plus: Assumed conversion of share-based compensation | 0 | 64 | 63 | ||||||||
Assumed conversion of preferred stock | 0 | 25 | 25 | ||||||||
Weighted average diluted common shares outstanding (in shares) | 30,751 | 31,307 | 31,972 | ||||||||
Basic earnings (loss) per common share (in USD per share) | $ 0.83 | $ (2.36) | $ 0.24 | $ 0.56 | $ (1.54) | $ 0.65 | $ 0.70 | $ 0.85 | $ (0.72) | $ 0.65 | $ 0.60 |
Diluted earnings (loss) per common share (in USD per share) | $ 0.82 | $ (2.36) | $ 0.24 | $ 0.56 | $ (1.54) | $ 0.64 | $ 0.70 | $ 0.84 | $ (0.72) | $ 0.65 | $ 0.60 |
Weighted average number of antidilutive shares | 2,706 | 2,113 | 2,753 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
After-tax | |||
Other comprehensive income (loss) | $ (88,214) | $ (18,911) | $ (17,618) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | |||
Pre-tax | |||
Unrealized holding gains (losses) arising during the period | (118,832) | (24,477) | 33,575 |
Less: Reclassification adjustments (gains) losses realized in net income | 1,818 | (215) | (56,914) |
Other comprehensive income (loss) | (117,014) | (24,692) | (23,339) |
Tax | |||
Unrealized holding gains (losses) arising during the period | (29,247) | (5,731) | 7,884 |
Less: Reclassification adjustments (gains) losses realized in net income | 447 | (50) | (13,605) |
Other comprehensive income (loss) | (28,800) | (5,781) | (5,721) |
After-tax | |||
Unrealized holding gains (losses) arising during the period | (89,585) | (18,746) | 25,691 |
Less: Reclassification adjustments (gains) losses realized in net income | 1,371 | (165) | (43,309) |
Other comprehensive income (loss) | (88,214) | (18,911) | (17,618) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Cumulative Effect, Period of Adoption, Adjustment | |||
Pre-tax | |||
Less: Reclassification adjustments (gains) losses realized in net income | 0 | 0 | 791 |
Tax | |||
Less: Reclassification adjustments (gains) losses realized in net income | 0 | 0 | 194 |
After-tax | |||
Less: Reclassification adjustments (gains) losses realized in net income | 0 | 0 | 597 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Pre-tax | |||
Other comprehensive income (loss) | (117,014) | (24,692) | (22,548) |
Tax | |||
Other comprehensive income (loss) | (28,800) | (5,781) | (5,527) |
After-tax | |||
Other comprehensive income (loss) | $ (88,214) | $ (18,911) | $ (17,021) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | $ 348 | $ 5,892 | $ 63,352 | ||||||||
Income taxes, current | 4,990 | (8,006) | (5,126) | ||||||||
Net of tax | $ 25,111 | $ (72,275) | $ 7,370 | $ 17,537 | $ (48,125) | $ 20,183 | $ 21,941 | $ 26,408 | (22,257) | 20,407 | 19,105 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | (1,818) | 215 | 56,914 | ||||||||
Income taxes, current | 447 | (50) | (13,605) | ||||||||
Net of tax | $ (1,371) | $ 165 | $ 43,309 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Reinsurance Policy, Type [Axis]: 2023-01-01 | |
Other Commitments [Line Items] | |
Reinsurance payable, next twelve months | $ 105.6 |
Reinsurance Policy, Type [Axis]: 2024-01-01 | |
Other Commitments [Line Items] | |
Reinsurance payable, due in second year | 157.5 |
Reinsurance Policy, Type [Axis]: 2025-01-01 | |
Other Commitments [Line Items] | |
Reinsurance payable, due in third year | $ 66.3 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,014,626 | $ 1,040,455 |
Equity Securities: | 85,469 | 47,334 |
U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,664 | 26,806 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 695,061 | 673,805 |
Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 287,607 | 316,118 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,371 | 14,574 |
Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,923 | 9,152 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,100,095 | 1,087,789 |
Fair Value, Measurements, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,664 | 26,806 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 695,061 | 673,805 |
Fair Value, Measurements, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 287,607 | 316,118 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,371 | 14,574 |
Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,923 | 9,152 |
Fair Value, Measurements, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 15,313 | 3,683 |
Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 70,156 | 43,651 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 85,469 | 47,334 |
Level 1 | Fair Value, Measurements, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 15,313 | 3,683 |
Level 1 | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 70,156 | 43,651 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,014,626 | 1,040,455 |
Level 2 | Fair Value, Measurements, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,664 | 26,806 |
Level 2 | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 695,061 | 673,805 |
Level 2 | Fair Value, Measurements, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 287,607 | 316,118 |
Level 2 | Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 12,371 | 14,574 |
Level 2 | Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,923 | 9,152 |
Level 2 | Fair Value, Measurements, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities: | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $ 105,515 | $ 106,985 |
Estimated Fair Value | 105,476 | 106,187 |
Surplus note | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $ 5,515 | 6,985 |
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Stated percentage | 5.625% | |
Surplus note | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | $ 5,515 | 6,985 |
Estimated Fair Value | 5,126 | 6,723 |
5.625% Senior unsecured notes | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Carrying Value | 100,000 | 100,000 |
Estimated Fair Value | $ 100,350 | $ 99,464 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) netLossRatioPoint | Dec. 31, 2021 USD ($) netLossRatioPoint | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Claims Development [Line Items] | |||||
Unpaid losses and loss adjustment expenses | $ 692,574,000 | $ 23,751,000 | $ 54,705,000 | ||
Unpaid losses and loss adjustment expenses | 1,038,790,000 | 346,216,000 | 322,465,000 | $ 267,760,000 | |
Policyholder benefits and claims incurred, gross | 1,972,541,000 | 1,189,444,000 | 1,080,058,000 | ||
Incurred (recovered) related to current year | 913,419,000 | 724,755,000 | 700,473,000 | ||
Incurred (recovered) related to prior year | 24,980,000 | 54,450,000 | 58,337,000 | ||
Policyholder benefits and claims incurred, ceded | $ 1,034,142,000 | $ 410,239,000 | $ 321,248,000 | ||
Insurance claim maximum settlement time | 1 year | ||||
Initial case reserve for claims | $ 2,500 | ||||
LAE case reserves | $ 0 | ||||
Adverse Prior Years' Reserve Development | |||||
Claims Development [Line Items] | |||||
Net loss ratio | netLossRatioPoint | 2.2 | 5.3 | |||
Incurred (recovered) related to prior year | $ 25,000,000 | $ 54,500,000 | |||
Hurricane Ian | |||||
Claims Development [Line Items] | |||||
Incurred (recovered) related to current year | $ 66,000,000 | $ 111,000,000 | |||
Net loss ratio | netLossRatioPoint | 9.9 | 2.7 | |||
Incurred (recovered) related to prior year | $ 28,000,000 | ||||
Subrogation | |||||
Claims Development [Line Items] | |||||
Subrogation recoveries value | $ 134,400,000 | $ 118,600,000 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2022 USD ($) Claim | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) |
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 2,894,636 | ||||
Accident Year 2018 | |||||
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | 348,534 | $ 346,785 | $ 348,792 | $ 335,946 | $ 334,368 |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (1,175) | ||||
Cumulative Number of Reported Claims | Claim | 54,468 | ||||
Accident Year 2019 | |||||
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 470,372 | 467,198 | 452,029 | $ 446,419 | |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (9,236) | ||||
Cumulative Number of Reported Claims | Claim | 47,647 | ||||
Accident Year 2020 | |||||
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 635,412 | 637,764 | $ 617,795 | ||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (14,382) | ||||
Cumulative Number of Reported Claims | Claim | 81,027 | ||||
Accident Year 2021 | |||||
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 646,977 | $ 641,679 | |||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (23,473) | ||||
Cumulative Number of Reported Claims | Claim | 60,470 | ||||
Accident Year 2022 | |||||
Claims Development [Line Items] | |||||
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 793,341 | ||||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ 250,623 | ||||
Cumulative Number of Reported Claims | Claim | 85,543 |
Liability for Unpaid Losses a_5
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 2,663,923 | ||||
All outstanding liabilities before 2018, net of reinsurance | (9,542) | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 221,171 | ||||
Accident Year 2018 | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | 353,566 | $ 353,506 | $ 348,225 | $ 327,310 | $ 253,008 |
Accident Year 2019 | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | 480,967 | 463,924 | 446,997 | $ 335,991 | |
Accident Year 2020 | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | 645,553 | 604,201 | $ 452,560 | ||
Accident Year 2021 | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | 665,008 | $ 461,709 | |||
Accident Year 2022 | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance | $ 518,829 |
Liability for Unpaid Losses a_6
Liability for Unpaid Losses and Loss Adjustment Expenses - Supplementary Information About Average Historical Claims Duration (Detail) | Dec. 31, 2022 |
Insurance Loss Reserves [Abstract] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year one | 57.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year two | 19.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year three | 10.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year four | 5.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year five | 3.30% |
Liability for Unpaid Losses a_7
Liability for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance Loss Reserves [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 221,171 | |||
Reinsurance recoverable on unpaid losses and LAE | 798,680 | $ 115,860 | $ 119,522 | $ 123,221 |
Liabilities for adjusting and other claim payments | 18,939 | |||
Unpaid losses and loss adjustment expenses | $ 1,038,790 | $ 346,216 | $ 322,465 | $ 267,760 |
Liability for Unpaid Losses a_8
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance at beginning of year | $ 346,216 | $ 322,465 | $ 267,760 |
Less: Reinsurance recoverable | (115,860) | (119,522) | (123,221) |
Net balance at beginning of period | 230,356 | 202,943 | 144,539 |
Incurred (recovered) related to current year | 913,419 | 724,755 | 700,473 |
Incurred Loss and LAE Prior Years | 24,980 | 54,450 | 58,337 |
Total incurred | 938,399 | 779,205 | 758,810 |
Paid related to Current year | 624,580 | 526,695 | 513,308 |
Paid related to Prior years | 304,065 | 225,097 | 187,098 |
Total paid | 928,645 | 751,792 | 700,406 |
Net balance at end of period | 240,110 | 230,356 | 202,943 |
Plus: Reinsurance recoverable | 798,680 | 115,860 | 119,522 |
Balance at end of year | $ 1,038,790 | $ 346,216 | $ 322,465 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||||
Incurred (recovered) related to current year | $ 913,419 | $ 724,755 | $ 700,473 | |
Hurricane Ian | ||||
Variable Interest Entity [Line Items] | ||||
Incurred (recovered) related to current year | $ 66,000 | $ 111,000 |
Quarterly Results for 2022 an_3
Quarterly Results for 2022 and 2021 (Unaudited) - Summary of Quarterly Results for the Periods Presented (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Premiums earned, net | $ 291,870 | $ 290,631 | $ 277,061 | $ 269,064 | $ 271,332 | $ 264,654 | $ 256,172 | $ 243,305 | $ 1,128,626 | $ 1,035,463 | $ 923,563 |
Net investment income | 10,448 | 6,074 | 5,221 | 4,042 | 3,894 | 2,797 | 2,858 | 2,986 | 25,785 | 12,535 | 20,393 |
Total revenues | 330,360 | 312,810 | 292,006 | 287,482 | 292,659 | 287,254 | 279,181 | 262,757 | 1,222,658 | 1,121,851 | 1,072,770 |
Total expenses | 295,881 | 404,417 | 279,595 | 263,403 | 356,566 | 260,761 | 249,087 | 226,386 | 1,243,296 | 1,092,800 | 1,048,444 |
Net income (loss) | $ 25,111 | $ (72,275) | $ 7,370 | $ 17,537 | $ (48,125) | $ 20,183 | $ 21,941 | $ 26,408 | $ (22,257) | $ 20,407 | $ 19,105 |
Basic earnings (loss) per share (in USD per share) | $ 0.83 | $ (2.36) | $ 0.24 | $ 0.56 | $ (1.54) | $ 0.65 | $ 0.70 | $ 0.85 | $ (0.72) | $ 0.65 | $ 0.60 |
Diluted earnings (loss) per share (in USD per share) | $ 0.82 | $ (2.36) | $ 0.24 | $ 0.56 | $ (1.54) | $ 0.64 | $ 0.70 | $ 0.84 | $ (0.72) | $ 0.65 | $ 0.60 |
Quarterly Results for 2022 an_4
Quarterly Results for 2022 and 2011 (Unaudited) - Additional Information (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Quarterly Financial Information Disclosure [Abstract] | ||
Insurance policy renewal commissions (percent) | 8% | 10% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 09, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per common share (in USD per share) | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.29 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.77 | $ 0.77 | $ 0.77 | |
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per common share (in USD per share) | $ 0.16 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 388,706 | $ 250,508 | $ 167,156 | |
Available-for-sale debt securities, at fair value | 1,014,626 | 1,040,455 | ||
Equity Securities: | 85,469 | 47,334 | ||
Income taxes recoverable | 1,528 | 16,947 | ||
Deferred income tax asset, net | 57,258 | 16,331 | ||
Other assets | 18,312 | 22,031 | ||
Total assets | 2,890,154 | 2,056,141 | ||
LIABILITIES: | ||||
Long-term debt, net | 5,500 | |||
Total liabilities | 2,602,258 | 1,626,439 | ||
STOCKHOLDERS’ EQUITY: | ||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share | 0 | 0 | ||
Common stock | 472 | 470 | ||
Treasury shares, at cost - 16,790 and 15,797 | (238,758) | (227,115) | ||
Additional paid-in capital | 112,509 | 108,202 | ||
Accumulated other comprehensive income (loss), net of taxes | (103,782) | (15,568) | ||
Retained earnings | 517,455 | 563,713 | ||
Total stockholders’ equity | 287,896 | 429,702 | $ 449,262 | $ 493,901 |
Total liabilities and stockholders’ equity | 2,890,154 | 2,056,141 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 83,022 | 169,157 | ||
Investments in subsidiaries and undistributed earnings | 139,386 | 317,166 | ||
Available-for-sale debt securities, at fair value | 3,997 | 0 | ||
Equity Securities: | 13,946 | 0 | ||
Income taxes recoverable | 1,507 | 16,960 | ||
Deferred income tax asset, net | 1,539 | 3,466 | ||
Intercompany note receivable | 143,792 | 20,415 | ||
Other assets | 398 | 140 | ||
Total assets | 387,587 | 527,304 | ||
LIABILITIES: | ||||
Accounts payable | 50 | 17 | ||
Dividends payable | 360 | 143 | ||
Long-term debt, net | 97,254 | 96,691 | ||
Other accrued expenses | 2,027 | 751 | ||
Total liabilities | 99,691 | 97,602 | ||
STOCKHOLDERS’ EQUITY: | ||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share | 0 | 0 | ||
Common stock | 472 | 470 | ||
Treasury shares, at cost - 16,790 and 15,797 | (238,758) | (227,115) | ||
Additional paid-in capital | 112,509 | 108,202 | ||
Accumulated other comprehensive income (loss), net of taxes | (103,782) | (15,568) | ||
Retained earnings | 517,455 | 563,713 | ||
Total stockholders’ equity | 287,896 | 429,702 | ||
Total liabilities and stockholders’ equity | $ 387,587 | $ 527,304 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets - Additional Information (Detail) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Financial Information Disclosure [Abstract] | ||
Cumulative convertible preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference (in USD per share) | $ 9.99 | $ 9.99 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares issued (in shares) | 47,179,000 | 47,018,000 |
Common stock, shares outstanding (in shares) | 30,389,000 | 31,221,000 |
Treasury stock, shares (in shares) | 16,790,000 | 15,797,000 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | ||||||||||||
Net investment income | $ 10,448 | $ 6,074 | $ 5,221 | $ 4,042 | $ 3,894 | $ 2,797 | $ 2,858 | $ 2,986 | $ 25,785 | $ 12,535 | $ 20,393 | |
Net realized gains (losses) on investments | $ 56,400 | 348 | 5,892 | 63,352 | ||||||||
Net change in unrealized gains (losses) of equity securities | (13,145) | (4,032) | 25 | |||||||||
Other revenue | 7,694 | 7,631 | 8,501 | |||||||||
Total revenues | 330,360 | 312,810 | 292,006 | 287,482 | 292,659 | 287,254 | 279,181 | 262,757 | 1,222,658 | 1,121,851 | 1,072,770 | |
OPERATING COSTS AND EXPENSES | ||||||||||||
General and administrative expenses | 304,897 | 313,595 | 289,634 | |||||||||
Total operating costs and expenses | 295,881 | 404,417 | 279,595 | 263,403 | 356,566 | 260,761 | 249,087 | 226,386 | 1,243,296 | 1,092,800 | 1,048,444 | |
Interest and amortization of debt issuance costs | 6,609 | 638 | 95 | |||||||||
Income tax expense (benefit) | (4,990) | 8,006 | 5,126 | |||||||||
NET INCOME (LOSS) | $ 25,111 | $ (72,275) | $ 7,370 | $ 17,537 | $ (48,125) | $ 20,183 | $ 21,941 | $ 26,408 | (22,257) | 20,407 | 19,105 | |
Parent Company | ||||||||||||
REVENUES | ||||||||||||
Net investment income | 930 | 2 | 273 | |||||||||
Net realized gains (losses) on investments | 1,462 | 405 | 38 | |||||||||
Net change in unrealized gains (losses) of equity securities | (518) | 0 | 0 | |||||||||
Management fee | 123 | 137 | 166 | |||||||||
Interest income on intercompany note receivable | 9,686 | 415 | 0 | |||||||||
Other revenue | 1 | 0 | 16 | |||||||||
Total revenues | 11,684 | 959 | 493 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
General and administrative expenses | 12,223 | 10,552 | 15,448 | |||||||||
Total operating costs and expenses | 12,223 | 10,552 | 15,448 | |||||||||
Interest and amortization of debt issuance costs | 6,437 | 525 | 0 | |||||||||
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT) AND EQUITY IN NET EARNINGS (LOSS) OF SUBSIDIARIES | (6,976) | (10,118) | (14,955) | |||||||||
Income tax expense (benefit) | (670) | (2,800) | (215) | |||||||||
LOSS BEFORE EQUITY IN NET EARNINGS (LOSS) OF SUBSIDIARIES | (6,306) | (7,318) | (14,740) | |||||||||
Equity in net income (loss) of subsidiaries | (15,951) | 27,712 | 33,828 | |||||||||
NET INCOME (LOSS) | $ (22,257) | $ 20,394 | $ 19,088 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | $ 324,515 | $ 234,378 | $ 29,348 |
Cash flows from investing activities: | |||
Purchases of equity securities | (76,629) | (55,447) | (116,265) |
Purchases of available-for-sale debt securities | (200,011) | (450,383) | (1,074,629) |
Proceeds from sales of equity securities | 34,178 | 85,103 | 81,559 |
Proceeds from sales of available-for-sale debt securities | 29,439 | 96,966 | 1,008,436 |
Net cash provided by (used in) investing activities | (148,861) | (229,404) | 22,042 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 100,000 | 0 |
Debt issuance costs paid | (140) | (3,365) | 0 |
Preferred stock dividend | (10) | (10) | (10) |
Common stock dividend | (23,774) | (24,191) | (24,547) |
Purchase of treasury stock | (11,643) | (1,609) | (28,921) |
Payments related to tax withholding for share-based compensation | (418) | (1,056) | (1,315) |
Net cash provided by (used in) financing activities | (37,456) | 68,298 | (56,263) |
Net increase (decrease) during the period | 138,198 | 73,272 | (4,873) |
Balance, beginning of period | 253,143 | 179,871 | 184,744 |
Balance, end of period | 391,341 | 253,143 | 179,871 |
Supplemental cash and non-cash flow disclosures: | |||
Interest paid | 5,797 | 127 | 102 |
Parent Company | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 210,368 | 151,952 | 149,329 |
Cash flows from investing activities: | |||
Capital contribution to affiliates | (129,490) | (95,498) | (118,897) |
Issuance of note receivable to subsidiary | (114,000) | (20,000) | 0 |
Purchases of equity securities | (33,189) | 0 | 0 |
Purchases of available-for-sale debt securities | (4,026) | 0 | 0 |
Proceeds from sales of equity securities | 20,187 | 0 | 0 |
Proceeds from sales of available-for-sale debt securities | 0 | 0 | 787 |
Net cash provided by (used in) investing activities | (260,518) | (115,498) | (118,110) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 100,000 | 0 |
Debt issuance costs paid | (140) | (3,365) | 0 |
Preferred stock dividend | (10) | (10) | (10) |
Common stock dividend | (23,774) | (24,191) | (24,547) |
Purchase of treasury stock | (11,643) | (1,609) | (28,921) |
Payments related to tax withholding for share-based compensation | (418) | (1,056) | (1,315) |
Net cash provided by (used in) financing activities | (35,985) | 69,769 | (54,793) |
Net increase (decrease) during the period | (86,135) | 106,223 | (23,574) |
Balance, beginning of period | 169,157 | 62,934 | 86,508 |
Balance, end of period | 83,022 | 169,157 | 62,934 |
Supplemental cash and non-cash flow disclosures: | |||
Interest paid | $ 5,625 | $ 0 | $ 0 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - General - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | ||||
Dividend paid to immediate parent company | $ 231,900,000 | $ 149,900,000 | $ 151,000,000 | |
Surplus insurance entities | $ (141,777,000) | (102,515,000) | (104,339,000) | |
Surplus accrued variable rate | 8.27% | |||
Subordinated Surplus Debenture | ||||
Statutory Accounting Practices [Line Items] | ||||
Issuance of note receivable to subsidiary | $ 134,000,000 | |||
UPCIC | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital contribution to subsidiaries | 84,000,000 | 92,000,000 | 114,000,000 | |
Dividend paid to immediate parent company | 0 | 0 | 0 | |
UPCIC | Subsequent Event | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital contribution to subsidiaries | $ 72,000,000 | |||
UPCIC | Subordinated Surplus Debenture | ||||
Statutory Accounting Practices [Line Items] | ||||
Issuance of note receivable to subsidiary | 110,000,000 | 20,000,000 | ||
APPCIC | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital contribution to subsidiaries | 3,000,000 | 0 | $ 0 | |
Dividend paid to immediate parent company | 0 | $ 0 | ||
APPCIC | Subordinated Surplus Debenture | ||||
Statutory Accounting Practices [Line Items] | ||||
Issuance of note receivable to subsidiary | $ 4,000,000 |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Detail) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 584 | $ 631 | $ 749 |
Charges to Earnings | 711 | 466 | 528 |
Charges to Other Accounts | 0 | 0 | 0 |
Deductions | 375 | 513 | 646 |
Ending Balance | $ 920 | $ 584 | $ 631 |
Schedule VI - Supplemental In_2
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | ||||||||||||
Reserves for Unpaid Losses and LAE | $ 1,038,790 | $ 346,216 | $ 1,038,790 | $ 346,216 | $ 322,465 | $ 267,760 | ||||||
Incurred Loss and LAE Current Year | 913,419 | 724,755 | 700,473 | |||||||||
Incurred Loss and LAE Prior Years | 24,980 | 54,450 | 58,337 | |||||||||
Paid Losses and LAE | 928,645 | 751,792 | 700,406 | |||||||||
Net investment income | 10,448 | $ 6,074 | $ 5,221 | $ 4,042 | 3,894 | $ 2,797 | $ 2,858 | $ 2,986 | 25,785 | 12,535 | 20,393 | |
Deferred Policy Acquisition Cost (“DPAC”) | 103,654 | 108,822 | 103,654 | 108,822 | 110,614 | $ 91,882 | ||||||
Amortization of DPAC, Net | (217,235) | (224,121) | (199,154) | |||||||||
Net Premiums Written | 1,173,278 | 1,084,827 | 1,004,903 | |||||||||
Net Premiums Earned | 291,870 | $ 290,631 | $ 277,061 | $ 269,064 | 271,332 | $ 264,654 | $ 256,172 | $ 243,305 | 1,128,626 | 1,035,463 | 923,563 | |
Unearned premiums | $ 943,854 | $ 857,769 | $ 943,854 | $ 857,769 | $ 783,135 |
Uncategorized Items - uve-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |