Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HCI | |
Entity Registrant Name | HCI Group, Inc. | |
Entity Central Index Key | 0001400810 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NYSE | |
Entity File Number | 001-34126 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 20-5961396 | |
Entity Address, Address Line One | 3802 Coconut Palm Drive | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33619 | |
City Area Code | 813 | |
Local Phone Number | 849-9500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 8,756,970 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $371,877 and $41,953, respectively and allowance for credit losses: $0 and $0, respectively) | $ 360,639 | $ 42,583 | |
Equity securities, at fair value (cost: $36,639 and $46,276, respectively) | 33,946 | 51,740 | |
Limited partnership investments | 25,405 | 28,133 | |
Investment in unconsolidated joint venture, at equity | [1] | 18 | 363 |
Real estate investments | 71,500 | 73,896 | |
Total investments | 491,508 | 196,715 | |
Cash and cash equivalents | 355,699 | 628,943 | |
Restricted cash | 2,900 | 2,400 | |
Accrued interest and dividends receivable | 2,032 | 353 | |
Income taxes receivable | 8,134 | 4,084 | |
Premiums receivable, net (allowance: $4,573 and $1,750, respectively) | 51,762 | 68,157 | |
Prepaid reinsurance premiums | 104,539 | 26,355 | |
Reinsurance recoverable, net of allowance for credit losses: | |||
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) | 14,592 | 11,985 | |
Unpaid losses and loss adjustment expenses (allowance: $451 and $90, respectively) | 938,404 | 64,665 | |
Deferred policy acquisition costs | 48,258 | 57,695 | |
Property and equipment, net | 17,749 | 14,232 | |
Right-of-use assets - operating leases | 1,597 | 2,204 | |
Intangible assets, net | 13,651 | 10,636 | |
Funds withheld for assumed business | 67,313 | 73,716 | |
Other assets | 26,605 | 14,717 | |
Total assets | 2,144,743 | 1,176,857 | |
Liabilities and Equity | |||
Losses and loss adjustment expenses | 1,201,842 | 237,165 | |
Unearned premiums | 379,609 | 366,744 | |
Advance premiums | 28,672 | 13,771 | |
Reinsurance payable on paid losses and loss adjustment expenses | 3,046 | 4,017 | |
Ceded reinsurance premiums payable | 0 | 19,318 | |
Accrued expenses | 18,788 | 15,453 | |
Deferred income taxes, net | 1,705 | 11,739 | |
Revolving credit facility | 0 | 15,000 | |
Long-term debt | 211,667 | 45,504 | |
Lease liabilities - operating leases | 1,539 | 2,203 | |
Other liabilities | 33,453 | 31,485 | |
Total liabilities | 1,880,321 | 762,399 | |
Commitments and contingencies (Note 20) | |||
Redeemable noncontrolling interest (Note 17) | 91,248 | 89,955 | |
Equity: | |||
Common stock (no par value, 40,000,000 shares authorized, 8,926,845 and 10,131,399 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively) | 0 | 0 | |
Additional paid-in capital | 9,969 | 76,077 | |
Retained income | 175,056 | 246,790 | |
Accumulated other comprehensive income, net of taxes | (10,795) | 498 | |
Total stockholders’ equity | 174,230 | 323,365 | |
Noncontrolling interests | (1,056) | 1,138 | |
Total equity | 173,174 | 324,503 | |
Total liabilities, redeemable noncontrolling interest and equity | $ 2,144,743 | $ 1,176,857 | |
[1] Includes the 90 % share of FMKT Mel JV’s operating results. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Available-for-sale Debt securities, Amortized cost | $ 371,877 | $ 41,953 |
Available-for-sale Debt securities, Allowance for credit losses | 0 | 0 |
Equity securities , cost | 36,639 | 46,276 |
Premiums Receivable, Allowance | 4,573 | 1,750 |
Paid losses and loss adjustments allowance | 0 | 0 |
Unpaid losses and loss adjustments allowance | $ 451 | $ 90 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 8,926,845 | 10,131,399 |
Common stock, outstanding | 8,926,845 | 10,131,399 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Revenue | ||||||
Gross premiums earned | $ 181,713 | [1] | $ 149,809 | $ 541,762 | [2] | $ 420,191 |
Premiums ceded | (74,741) | (55,577) | (184,108) | (145,112) | ||
Net premiums earned | 106,972 | 94,232 | 357,654 | 275,079 | ||
Net investment income | 18,530 | 2,520 | 25,082 | 9,749 | ||
Net realized investment (losses) gains | (884) | 1,232 | (1,204) | 4,952 | ||
Net unrealized investment losses | (347) | (1,869) | (8,157) | (649) | ||
Policy fee income | 1,071 | 1,000 | 3,180 | 2,962 | ||
Other | 1,312 | 2,102 | 3,065 | 3,502 | ||
Total revenue | 126,654 | 99,217 | 379,620 | 295,595 | ||
Expenses | ||||||
Losses and loss adjustment expenses | 139,794 | 62,664 | 299,328 | 164,332 | ||
Policy acquisition and other underwriting expenses | 24,678 | 23,340 | 80,949 | 69,574 | ||
General and administrative personnel expenses | 15,848 | 11,537 | 45,183 | 31,733 | ||
Interest expense | 2,813 | 1,664 | 4,929 | 5,743 | ||
Debt conversion expense | 0 | 1,273 | 0 | 1,273 | ||
Other operating expenses | 7,123 | 5,243 | 20,392 | 14,245 | ||
Total expenses | 190,256 | 105,721 | 450,781 | 286,900 | ||
(Loss) income before income taxes | (63,602) | (6,504) | (71,161) | 8,695 | ||
Income tax (benefit) expense | (12,099) | (1,636) | (13,907) | 2,888 | ||
Net (loss) income | (51,503) | (4,868) | (57,254) | 5,807 | ||
Net income attributable to redeemable noncontrolling interest (Note 17) | (2,285) | (2,202) | (6,801) | (5,175) | ||
Net loss attributable to noncontrolling interests | 2,829 | 833 | 4,018 | 1,196 | ||
Net (loss) income after noncontrolling interests | $ (50,959) | $ (6,237) | $ (60,037) | $ 1,828 | ||
Basic (loss) earnings per share | $ (5.66) | $ (0.72) | $ (6.26) | $ 0.23 | ||
Diluted (loss) earnings per share | $ (5.66) | $ (0.72) | $ (6.26) | $ 0.22 | ||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (51,503) | $ (4,868) | $ (57,254) | $ 5,807 |
Other comprehensive loss: | ||||
Net unrealized losses arising during the period | (5,969) | (258) | (12,294) | (341) |
Call and repayment gains charged to investment income | 0 | 0 | 0 | (2) |
Reclassification adjustment for net realized losses (gains) | 5 | (88) | 426 | (665) |
Net change in unrealized losses | (5,964) | (346) | (11,868) | (1,008) |
Deferred income taxes on above change | (1,337) | 85 | 154 | 247 |
Total other comprehensive loss, net of income taxes | (7,301) | (261) | (11,714) | (761) |
Comprehensive (loss) income | (58,804) | (5,129) | (68,968) | 5,046 |
Comprehensive loss attributable to noncontrolling interests | 3,095 | 839 | 4,439 | 1,212 |
Comprehensive (loss) income after noncontrolling interests | $ (55,709) | $ (4,290) | $ (64,529) | $ 6,258 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Retained Income [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] | Total Stockholders' Equity [Member] | Total Stockholders' Equity [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2020 | $ 201,136,000 | $ 199,592,000 | $ 1,544,000 | $ 201,136,000 | ||||||
Beginning Balance, shares at Dec. 31, 2020 | 7,785,617 | |||||||||
Net income (loss) | 5,807,000 | 6,692,000 | 6,692,000 | $ (885,000) | ||||||
Net income attributable to redeemable noncontrolling interest (Note 17) | (5,175,000) | (4,864,000) | (4,864,000) | (311,000) | ||||||
Cumulative effect of change in accounting principle | $ (3,018,000) | $ (3,018,000) | $ (3,018,000) | |||||||
Total other comprehensive income (loss), net of income taxes | (761,000) | (745,000) | (745,000) | (16,000) | ||||||
Issuance of restricted stock, shares | 553,426 | |||||||||
Forfeiture of restricted stock, shares | (49,965) | |||||||||
Common stock issued on conversions of 4.25% senior notes | 82,339,000 | $ 82,339,000 | 82,339,000 | |||||||
Common stock issued on conversions of 4.25% senior notes, Share | 1,361,954 | |||||||||
Cancellation of restricted stock, shares | (142,760) | |||||||||
Stock repurchased and retired, total costs | (1,308,000) | (1,308,000) | (1,308,000) | |||||||
Repurchase and retirement of common stock, shares | (17,193) | |||||||||
Issuance of common stock | 5,410,000 | 5,410,000 | 5,410,000 | |||||||
Issuance of common stock, shares | 100,000 | |||||||||
Dilution from subsidiary stock-based compensation | 2,228,000 | 2,228,000 | ||||||||
Issuance of warrants, net of issuance costs (Note 17) | 8,640,000 | 8,640,000 | 8,640,000 | |||||||
Common stock dividends | (9,713,000) | (9,713,000) | (9,713,000) | |||||||
Stock-based compensation | 6,943,000 | 6,943,000 | 6,943,000 | |||||||
Additional paid-in capital shortfall adjustment allocated to retained income | (62,119,000) | 62,119,000 | ||||||||
Ending Balance at Sep. 30, 2021 | 292,528,000 | 39,905,000 | 250,808,000 | 799,000 | 291,512,000 | 1,016,000 | ||||
Ending Balance, shares at Sep. 30, 2021 | 9,591,079 | |||||||||
Beginning Balance at Jun. 30, 2021 | 218,049,000 | 215,612,000 | 1,054,000 | 216,666,000 | 1,383,000 | |||||
Beginning Balance, shares at Jun. 30, 2021 | 8,265,640 | |||||||||
Net income (loss) | (4,868,000) | (4,346,000) | (4,346,000) | (522,000) | ||||||
Net income attributable to redeemable noncontrolling interest (Note 17) | (2,202,000) | (1,891,000) | (1,891,000) | (311,000) | ||||||
Total other comprehensive income (loss), net of income taxes | (261,000) | (255,000) | (255,000) | (6,000) | ||||||
Issuance of restricted stock, shares | 2,340 | |||||||||
Forfeiture of restricted stock, shares | (38,855) | |||||||||
Common stock issued on conversions of 4.25% senior notes | 82,339,000 | 82,339,000 | 82,339,000 | |||||||
Common stock issued on conversions of 4.25% senior notes, Share | 1,361,954 | |||||||||
Dilution from subsidiary stock-based compensation | 472,000 | 472,000 | ||||||||
Common stock dividends | (3,261,000) | (3,261,000) | (3,261,000) | |||||||
Stock-based compensation | 2,260,000 | 2,260,000 | 2,260,000 | |||||||
Additional paid-in capital shortfall adjustment allocated to retained income | (44,694,000) | 44,694,000 | ||||||||
Ending Balance at Sep. 30, 2021 | 292,528,000 | 39,905,000 | 250,808,000 | 799,000 | 291,512,000 | 1,016,000 | ||||
Ending Balance, shares at Sep. 30, 2021 | 9,591,079 | |||||||||
Beginning Balance at Dec. 31, 2021 | 324,503,000 | 76,077,000 | 246,790,000 | 498,000 | 323,365,000 | 1,138,000 | ||||
Beginning Balance, shares at Dec. 31, 2021 | 10,131,399 | |||||||||
Net income (loss) | (57,254,000) | (53,753,000) | (53,753,000) | (3,501,000) | ||||||
Net income attributable to redeemable noncontrolling interest (Note 17) | (6,801,000) | (6,284,000) | (6,284,000) | (517,000) | ||||||
Total other comprehensive income (loss), net of income taxes | (11,714,000) | (11,293,000) | (11,293,000) | (421,000) | ||||||
Issuance of restricted stock, shares | 7,000 | |||||||||
Forfeiture of restricted stock, shares | (5,630) | |||||||||
Common stock issued on conversions of 4.25% senior notes | 0 | |||||||||
Stock repurchased and retired, total costs | (68,103,000) | (68,103,000) | (68,103,000) | |||||||
Repurchase and retirement of common stock, shares | (1,056,997) | |||||||||
Repurchase and retirement of common stock under share repurchase plan, shares | (148,927) | |||||||||
Repurchase and retirement of common stock under share repurchase plan, value | (8,063,000) | (8,063,000) | (8,063,000) | |||||||
Dilution from subsidiary stock-based compensation | 2,245,000 | 2,245,000 | ||||||||
Common stock dividends | (11,697,000) | (11,697,000) | (11,697,000) | |||||||
Stock-based compensation | 10,058,000 | 10,058,000 | 10,058,000 | |||||||
Ending Balance at Sep. 30, 2022 | 173,174,000 | 9,969,000 | 175,056,000 | (10,795,000) | 174,230,000 | (1,056,000) | ||||
Ending Balance, shares at Sep. 30, 2022 | 8,926,845 | |||||||||
Beginning Balance at Jun. 30, 2022 | 239,935,000 | 12,887,000 | 229,621,000 | (3,760,000) | 238,748,000 | 1,187,000 | ||||
Beginning Balance, shares at Jun. 30, 2022 | 9,047,972 | |||||||||
Net income (loss) | (51,503,000) | (48,846,000) | (48,846,000) | (2,657,000) | ||||||
Net income attributable to redeemable noncontrolling interest (Note 17) | (2,285,000) | (2,113,000) | (2,113,000) | (172,000) | ||||||
Total other comprehensive income (loss), net of income taxes | (7,301,000) | (7,035,000) | (7,035,000) | (266,000) | ||||||
Forfeiture of restricted stock, shares | (1,665) | |||||||||
Repurchase and retirement of common stock under share repurchase plan, shares | (119,462) | |||||||||
Repurchase and retirement of common stock under share repurchase plan, value | (6,179,000) | (6,179,000) | (6,179,000) | |||||||
Dilution from subsidiary stock-based compensation | 852,000 | 852,000 | ||||||||
Common stock dividends | (3,606,000) | (3,606,000) | (3,606,000) | |||||||
Stock-based compensation | 3,261,000 | 3,261,000 | 3,261,000 | |||||||
Ending Balance at Sep. 30, 2022 | $ 173,174,000 | $ 9,969,000 | $ 175,056,000 | $ (10,795,000) | $ 174,230,000 | $ (1,056,000) | ||||
Ending Balance, shares at Sep. 30, 2022 | 8,926,845 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.20 |
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income after noncontrolling interests | $ (60,037) | $ 1,828 |
Net income attributable to noncontrolling interests | 2,783 | 3,979 |
Net (loss) income | (57,254) | 5,807 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Stock-based compensation expense | 12,709 | 9,229 |
Net (accretion of discount) amortization of premiums on investments in fixed-maturity securities | (922) | 180 |
Depreciation and amortization | 5,659 | 4,276 |
Deferred income tax benefit | (9,880) | (6,989) |
Net realized investment losses (gains) | 1,204 | (4,952) |
Net unrealized investment losses | 8,157 | 649 |
Credit loss expense - reinsurance recoverable | 361 | (41) |
Net income from unconsolidated joint venture | (495) | (423) |
Distributions received from unconsolidated joint venture | 489 | 114 |
Net income from limited partnership interests | (3,064) | (3,491) |
Distributions received from limited partnership interests | 2,417 | 2,345 |
Debt conversion expense | 0 | 1,273 |
Gain on involuntary conversion | (13,402) | 0 |
Gain on sale of real estate investment | (376) | 0 |
Foreign currency remeasurement loss | 91 | 48 |
Other non-cash items | (38) | 37 |
Changes in operating assets and liabilities: | ||
Accrued interest and dividends receivable | (1,679) | 125 |
Income taxes | (4,050) | 8,128 |
Premiums receivable, net | 16,395 | 25,304 |
Prepaid reinsurance premiums | (78,184) | (11,592) |
Reinsurance recoverable | (876,707) | 36,061 |
Deferred policy acquisition costs | 9,437 | (3,271) |
Funds withheld for assumed business | 6,403 | (79,965) |
Other assets | (11,317) | 5,727 |
Losses and loss adjustment expenses | 964,677 | (8,992) |
Unearned premiums | 12,865 | 64,900 |
Advance premiums | 14,901 | 7,692 |
Assumed reinsurance balances payable | 0 | 1 |
Reinsurance payable on paid losses and loss adjustment expenses | (971) | 4,727 |
Ceded reinsurance premiums payable | (19,318) | (7,447) |
Accrued expenses and other liabilities | 3,631 | (789) |
Net cash (used in) provided by operating activities | (18,261) | 48,671 |
Cash flows from investing activities: | ||
Investments in limited partnership interests | (1,357) | (837) |
Distributions received from limited partnership interests | 4,732 | 3,635 |
Distribution received from unconsolidated joint venture | 351 | 623 |
Purchase of property and equipment | (5,431) | (2,583) |
Purchase of real estate investments | (445) | (657) |
Purchase of intangible assets | (3,800) | 0 |
Purchase of fixed-maturity securities | (393,145) | (10,504) |
Purchase of equity securities | (20,921) | (72,707) |
Purchase of short-term and other investments | (32) | (1,161) |
Compensation Received for Property Relinquished through Eminent Domain | 14,500 | 0 |
Proceeds from sales of real estate investments | 667 | 0 |
Proceeds from sales of fixed-maturity securities | 11,694 | 18,838 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 52,023 | 16,734 |
Proceeds from sales of equity securities | 29,316 | 81,292 |
Proceeds from sales, redemptions and maturities of short-term and other investments | 496 | 2,414 |
Net cash (used in) provided by investing activities | (311,352) | 35,087 |
Cash flows from financing activities: | ||
Cash dividends paid | (11,774) | (9,943) |
Cash dividends received under share repurchase forward contract | 77 | 230 |
Net repayment under revolving credit facility | (15,000) | (23,750) |
Proceeds from issuance of redeemable noncontrolling interest and warrants | 0 | 100,000 |
Issuance costs - redeemable noncontrolling interest | 0 | (6,262) |
Cash dividends paid to redeemable noncontrolling interest | (5,508) | (2,542) |
Proceeds from issuance of long-term debt | 172,500 | 0 |
Repayment of long-term debt | (754) | (724) |
Repurchases of common stock | (68,103) | (1,308) |
Repurchases of common stock under share repurchase plan | (8,063) | 0 |
Purchase of noncontrolling interests | (406) | (58) |
Debt conversion expense paid | 0 | (1,414) |
Debt issuance costs | (6,014) | (152) |
Net cash provided by financing activities | 56,955 | 54,077 |
Effect of exchange rate changes on cash | (86) | (42) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (272,744) | 137,793 |
Cash, cash equivalents, and restricted cash at beginning of period | 631,343 | 433,741 |
Cash, cash equivalents, and restricted cash at end of period | 358,599 | 571,534 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 100 | 1,748 |
Cash paid for interest | 1,665 | 6,686 |
Non-cash investing and financing activities: | ||
Unrealized loss on investments in available-for-sale securities, net of tax | (11,714) | (761) |
Receivable from maturities of fixed-maturity securities | 0 | 18 |
Common stock issued on conversions of 4.25% senior notes | 0 | 82,339 |
Warrants issued in Centerbridge transaction | 0 | 9,217 |
Asset acquired under finance lease | 0 | 7 |
Acquisition of intangibles: | ||
Common stock issued | 0 | 5,410 |
Contingent consideration payable | $ 1,069 | $ 2,419 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Cash Flows [Abstract] | ||
Debt instrument stated interest rate | 4.25% | 4.25% |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 -- Nat ure of Operations HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TypTap”). Both HCPCI and TypTap are authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida and in other states. The operations of both insurance subsidiaries are supported by HCI Group, Inc. and certain HCI subsidiaries. The Company emphasizes the use of internally developed technologies to collect and analyze claims and other supplemental data to generate savings and efficiency for the operations of the insurance subsidiaries. In addition, Greenleaf Capital, LLC, the Company’s real estate subsidiary, is primarily engaged in the business of owning and leasing real estate and operating marina facilities. Impact of Hurricane Ian On September 28, 2022, Hurricane Ian made landfall in southwestern Florida as a dangerous, high-end Category 4 storm. After crossing the Florida peninsula, it made a second landfall on September 30, 2022 in coastal South Carolina. On a pre-tax consolidated basis, estimated gross losses related to Hurricane Ian totaled $ 970,000 . After anticipated reinsurance recoveries, the Company incurred a net estimated loss of approximately $ 65,000 . Gross loss estimates, including loss adjustment expenses, for HCPCI and TypTap were $ 550,518 and $ 419,482 , respectively. As a result of Hurricane Ian, the balance of previously accrued benefits under one multi-year reinsurance contract with retrospective provisions was decreased by $ 12,600 during the third quarter of 2022. In addition, the Company recognized an allowance for credit losses of approximately $ 399 related to Hurricane Ian’s unpaid ceded reinsurance recoverable. On September 28, 2022, the Florida Office of Insurance Regulation issued an emergency order in response to Hurricane Ian preventing insurers regulated under the Florida Insurance Code from cancelling or non-renewing a policy as well as issuing a notice of cancellation or nonrenewal of a policy between September 28, 2022 and November 28, 2022, except at the written request of the policyholder. This rule does not apply to new policies effective on or after September 28, 2022. Assumed Business Northeast Region In 2021, the Company began providing quota share reinsurance on all in-force, new and renewal policies issued by United Property & Casualty Insurance Company, an insurance subsidiary of United Insurance Holdings Corporation (“United”), in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island (collectively “Northeast Region”). Through its insurance subsidiaries, the Company began renewing and/or replacing United policies in two states in December 2021, a third state in January 2022, and the fourth state in April 2022. Southeast Region In February 2022, HCPCI entered into another reinsurance agreement with United where HCPCI provides 85 % quota share reinsurance on all of United’s personal lines insurance business in the states of Georgia, North Carolina, and South Carolina (collectively “Southeast Region”) from December 31, 2021 through May 31, 2022. Under this agreement, HCPCI paid United a catastrophe allowance of 9 % of premium and a provisional ceding commission of 25 % of premium. The Company also entered into a renewal rights agreement with United in connection with the Southeast Region assumed business. Under the renewal rights agreement, the Company has the right to renew and/or replace United’s insurance policies at the end of their respective policy periods. The ability to replace policies is subject to regulatory approvals in the three states. The policy replacement date was set for June 1, 2022 or such other date as mutually agreed by both parties. In connection with the transaction, United agreed to not compete with the Company for the issuance of personal lines homeowners business in these three states until July 1, 2025. As part of the transaction, United will receive a renewal rights ceding commission of 6 %, with a portion of the ceding commission paid up-front, and the aggregate ceding commission amount will not exceed $ 6,000 . See Note 7 -- “Intangible Assets, Net” for additional information. The Company began renewing United’s policies in South Carolina on June 1, 2022. The policy replacement date for North Carolina policies has yet to be determined and the C ompany, through TypTap, entered into a new quota share reinsurance agreement in June 2022 to provide 100 % reinsurance on all of United’s in-force, new and renewal policies in the Southeast Region from June 1, 2022 through May 31, 2023. In exchange, TypTap pays United a ceding commission of 16 % of premium. See Note 21 -- “Subsequent Events” for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 -- Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements for HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2022 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2022. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2022. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, intangible assets acquired from United, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. Allowance for Credit Losses Allowance for credit losses represents an estimation of potential losses that the Company may experience due to credit risk. The allowance for credit losses account is a contra account of a financial asset to reflect the net amount expected to be collected. For certain financial assets related to insurance business such as reinsurance recoverable and reinsurance receivable for premium refund, the Company uses a rating-based method, which is a modified version of the probability of default method. It requires two key inputs: a) the liquidation rate and b) the amount of loss exposure. The liquidation rate, which is published annually, is the ratio of impaired insurance companies that were eventually liquidated to the group of insurance companies considered by A.M. Best in its study. The amount of loss exposure represents the future billing balance, net of any collateral, spread over the projected periods that are based on the Company’s historical claim payment pattern. The rating-based method measures credit losses by multiplying the future billings grouped by insurance rating over the projected periods by their corresponding liquidation rates by insurance rating. For paid reinsurance recoverable which is due within 90 days after billing, the Company will rely heavily on each reinsurer’s current rating, recent financial condition, and historical collection problems, if any, in determining the expected credit loss. For risk attributable to disagreements between an insurer and reinsurer regarding a difference in interpretation of provisions in a reinsurance agreement (“dispute risk”), the Company will continue to use an incurred loss method to estimate losses. At September 30, 2022, there was no dispute risk associated with the reinsurance recoverable balance. Long-Term Debt Long-term debt includes debt instruments and finance lease obligations. A debt instrument is generally classified as a liability and carried at amortized cost, net of any issuance costs. Debt issuance costs are capitalized and amortized to interest expense over the expected life of the debt instrument using the effective interest method. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive and would not impact the initial measurement and expected life of the debt instrument. Revenue from Claims Processing Services Revenue related to claims processing services is included in other revenue in the consolidated statements of income. For the three and nine months ended September 30, 2022 , revenues from claims processing services were $ 903 and $ 2,282 , respectively. For the three and nine months ended September 30, 2021 , revenues from claims processing services were $ 1,709 and $ 1,916 , respectively. At September 30, 2022 and December 31, 2021 , other assets included $ 1,418 and $ 314 , respectively, of amounts receivable attributable to this service. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Ceded reinsurance premiums payable were reclassified out of other liabilities for the nine months ended September 30, 2021 within the consolidated statement of cash flows to conform with the current year presentation. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 3 -- Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. September 30, December 31, 2022 2021 Cash and cash equivalents $ 355,699 $ 628,943 Restricted cash 2,900 2,400 Total $ 358,599 $ 631,343 Restricted cash represents funds in the Company’s sole ownership held by certain states in which the Company’s insurance subsidiaries conduct business to meet regulatory requirements and not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4 -- Investments a) Available-for-Sale Fixed-Maturity Securities The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At September 30, 2022 and December 31, 2021, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Allowance Gross Gross Estimated Cost Loss Gain Loss Value As of September 30, 2022 U.S. Treasury and U.S. government agencies $ 339,666 $ — $ 1 $ ( 9,814 ) $ 329,853 Corporate bonds 29,642 — — ( 1,410 ) 28,232 States, municipalities, and political subdivisions 1,762 — — ( 11 ) 1,751 Exchange-traded debt 700 — 3 ( 2 ) 701 Redeemable preferred stock 107 — — ( 5 ) 102 Total $ 371,877 $ — $ 4 $ ( 11,242 ) $ 360,639 As of December 31, 2021 U.S. Treasury and U.S. government agencies $ 17,046 $ — $ 64 $ ( 86 ) $ 17,024 Corporate bonds 21,913 — 632 ( 53 ) 22,492 States, municipalities, and political subdivisions 1,759 — 49 — 1,808 Exchange-traded debt 767 — 44 — 811 Redeemable preferred stock 468 — — ( 20 ) 448 Total $ 41,953 $ — $ 789 $ ( 159 ) $ 42,583 Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Cost or Estimated Cost or Estimated Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale Due in one year or less $ 124,676 $ 124,402 $ 10,734 $ 10,826 Due after one year through five years 242,499 232,166 19,222 19,820 Due after five years through ten years 4,208 3,577 11,503 11,403 Due after ten years 494 494 494 534 $ 371,877 $ 360,639 $ 41,953 $ 42,583 Sales of Available-for-Sale Fixed-Maturity Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three and nine months ended September 30, 2022 and 2021 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2022 $ 200 $ — $ ( 5 ) Three months ended September 30, 2021 $ 4,158 $ 94 $ ( 6 ) Nine months ended September 30, 2022 $ 11,694 $ 13 $ ( 439 ) Nine months ended September 30, 2021 $ 18,838 $ 671 $ ( 6 ) Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities Securities with gross unrealized loss positions at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of September 30, 2022 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 9,677 ) $ 324,643 $ ( 137 ) $ 2,233 $ ( 9,814 ) $ 326,876 Corporate bonds ( 1,164 ) 26,947 ( 246 ) 1,285 ( 1,410 ) 28,232 States, municipalities, and political ( 11 ) 1,751 — — ( 11 ) 1,751 Exchange-traded debt ( 2 ) 517 — — ( 2 ) 517 Redeemable preferred stock ( 5 ) 102 — — ( 5 ) 102 Total available-for-sale securities $ ( 10,859 ) $ 353,960 $ ( 383 ) $ 3,518 $ ( 11,242 ) $ 357,478 Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2021 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 73 ) $ 9,809 $ ( 13 ) $ 616 $ ( 86 ) $ 10,425 Corporate bonds ( 53 ) 4,452 — — ( 53 ) 4,452 Redeemable preferred stock ( 20 ) 442 — — ( 20 ) 442 Total available-for-sale securities $ ( 146 ) $ 14,703 $ ( 13 ) $ 616 $ ( 159 ) $ 15,319 At September 30, 2022 and December 31, 2021 , there were 88 and 23 securities, respectively, in an unrealized loss position. Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including- • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the extent to which the market value of the security has been below its cost or amortized cost; • general market conditions and industry or sector specific factors and other qualitative factors; • nonpayment by the issuer of its contractually obligated interest and principal payments; and • the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. The table below summarizes the activity in the allowance for credit losses of available-for-sale securities for the three and nine months ended September 30, 2022 and 2021: 2022 2021 Balance at January 1 $ — $ 588 Reductions for securities sold — ( 9 ) Balance at March 31 $ — $ 579 Reductions for securities exchanged — ( 579 ) Balance at June 30 $ — $ — Balance at September 30 $ — $ — b) Equity Securities The Company holds investments in equity securities measured at fair values which are readily determinable. At September 30, 2022 and December 31, 2021, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows: Gross Gross Estimated Cost Gain Loss Value September 30, 2022 $ 36,639 $ 1,873 $ ( 4,566 ) $ 33,946 December 31, 2021 $ 46,276 $ 6,335 $ ( 871 ) $ 51,740 The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net (losses) gains recognized $ ( 1,279 ) $ ( 916 ) $ ( 9,144 ) $ 2,620 Exclude: Net realized (losses) gains ( 932 ) 953 ( 987 ) 3,269 Net unrealized losses recognized $ ( 347 ) $ ( 1,869 ) $ ( 8,157 ) $ ( 649 ) Sales of Equity Securities Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and nine months ended September 30, 2022 and 2021 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2022 $ 4,889 $ 135 $ ( 1,067 ) Three months ended September 30, 2021 $ 24,781 $ 1,141 $ ( 188 ) Nine months ended September 30, 2022 $ 29,316 $ 1,988 $ ( 2,975 ) Nine months ended September 30, 2021 $ 81,292 $ 4,266 $ ( 997 ) c) Limited Partnership Investments The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships: September 30, 2022 December 31, 2021 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%) (a) Value Balance (%) (a) Primarily in senior secured loans and, to a $ 4,120 $ — 15.37 $ 6,076 $ 2,085 15.37 Value creation through active distressed debt 3,312 — 1.67 3,423 — 1.69 High returns and long-term capital appreciation 4,421 — 0.18 6,270 1,401 0.18 Value-oriented investments in less liquid and 3,757 — 0.57 4,437 — 0.57 Value-oriented investments in mature real 7,103 3,633 1.32 5,977 4,537 1.36 Risk-adjusted returns on credit and equity 2,692 2,629 1.07 1,950 3,050 0.47 Total $ 25,405 $ 6,262 $ 28,133 $ 11,073 (a) Represents the Company’s percentage investment in the fund at each balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c) The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. (d) The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances. (e) At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f) Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. (g) With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h) Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. (i) The capital commitment period has ended but an additional funding may be requested. (j) The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. (k) Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating results: Total income $ 208,468 $ ( 13,796 ) $ 724,413 $ 359,885 Total expenses ( 45,537 ) ( 24,828 ) ( 117,877 ) ( 105,548 ) Net income (loss) $ 162,931 $ ( 38,624 ) $ 606,536 $ 254,337 September 30, December 31, 2022 2021 Balance sheet: Total assets $ 5,488,857 $ 5,855,616 Total liabilities $ 409,604 $ 564,732 For the three and nine months ended September 30, 2022 , the Company recognized net investment income of $ 1,265 and $ 3,064 , respectively. During the three and nine months ended September 30, 2022 , the Company received total cash distributions of $ 2,768 and $ 7,149 , respectively, including returns on investment of $ 371 and $ 2,417 , respectively. For the three and nine months ended September 30, 2021 , the Company recognized net investment income of $ 1,132 and $ 3,491 , respectively. During the three and nine months ended September 30, 2021 , the Company received total cash distributions of $ 1,535 and $ 5,980 , respectively, including returns on investment of $ 553 and $ 2,345 , respectively. At September 30, 2022 and December 31, 2021 , the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $ 24,996 and $ 28,371 , respectively, and the Company’s maximum exposure to loss aggregated $ 25,405 and $ 28,133 , respectively. d) Investment in Unconsolidated Joint Venture Melbourne FMA, LLC, a wholly owned subsidiary, currently has an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. At September 30, 2022 and December 31, 2021 , the Company’s maximum exposure to loss relating to the variable interest entity was $ 18 and $ 363 , respectively, representing the carrying value of the investment. In June 2022, the joint venture sold its last outparcel and recognized a gain of $ 572 . During the three and nine months ended September 30, 2022, the Company received a cash distribution of $ 840 , including return on investment of $ 489 . During the three and nine months ended September 30, 2021, the Company received a cash distribution of $ 737 , including return on investment of $ 114 . At September 30, 2022 and December 31, 2021, there wa s no undistributed income from this equity method investment. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating results: Total revenues $ — $ 540 $ 572 $ 540 Total expenses — ( 14 ) ( 22 ) ( 70 ) Net income $ — $ 526 $ 550 $ 470 The Company’s share of net income* $ — $ 473 $ 495 $ 423 * Included in net investment income in the Company’s consolidated statements of income. September 30, December 31, 2022 2021 Balance sheet: Property and equipment, net $ — $ 357 Cash 2 29 Other 18 18 Total assets $ 20 $ 404 Members’ capital $ 20 $ 404 Total members’ capital $ 20 $ 404 Investment in unconsolidated joint venture, at equity** $ 18 $ 363 ** Includes the 90 % share of FMKT Mel JV’s operating results. e) Real Estate Investments Real estate investments consist of the following as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 Land $ 38,327 $ 39,720 Land improvements 12,138 11,917 Buildings and building improvements 29,410 29,405 Tenant and leasehold improvements 1,554 1,511 Other 1,462 1,265 Total, at cost 82,891 83,818 Less: accumulated depreciation and amortization ( 11,391 ) ( 9,922 ) Real estate investments $ 71,500 $ 73,896 In May 2022, the Company sold one outparcel in Sorrento, Florida for net proceeds of $ 667 . On July 1, 2022, the Company closed on its agreement to sell 1.5 acres of land in Tampa, Florida for net proceeds of $ 14,500 to the Florida Department of Transportation (“FDOT”) in connection with an eminent domain proceeding for a planned road improvement project. See additional information under f) Net Investment Income (Loss) below. Depreciation and amortization expense related to real estate investments was $ 480 and $ 475 for the three months ended September 30, 2022 and 2021 , respectively, and $ 1,469 and $ 1,445 for the nine months ended September 30, 2022 and 2021, respectively. f) Net Investment Income (Loss) Net investment income (loss), by source, is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Available-for-sale fixed-maturity securities $ 2,125 $ 266 $ 3,710 $ 1,091 Equity securities 288 322 875 1,013 Investment expense ( 117 ) ( 134 ) ( 367 ) ( 388 ) Limited partnership investments 1,265 1,132 3,064 3,491 Real estate investments 13,897 305 15,782 3,646 Net income from unconsolidated joint — 473 495 423 Cash and cash equivalents 1,072 156 1,523 473 Net investment income $ 18,530 $ 2,520 $ 25,082 $ 9,749 For the three months ended September 30, 2022, income from real estate investments included a net realized gain of $ 13,402 resulting from the sale of 1.5 acres of land in Tampa, Florida in July 2022 for net proceeds of $ 14,500 to the FDOT in connection with an eminent domain proceeding for a planned road improvement project. For the nine months ended September 30, 2022, in addition to the aforementioned sale of land, income from real estate investments included a net gain of $ 376 resulting from the sale of the outparcel described in e) Real Estate Investments and $ 451 of income from selling the liquor license previously owned by the Company’s restaurant business which was discontinued in 2020. For the nine months ended September 30, 2021, income from real estate investments included a net gain of $ 2,790 resulting from a legal settlement with The Kroger Co. in a lawsuit filed by a real estate subsidiary of the Company to enforce a guaranty of a commercial lease. g) Other Investments From time to time, the Company may invest in financial assets other than stocks, mutual funds and bonds. For the three months ended September 30, 2022 and 2021 , net realized gains related to other investments were $ 53 and $ 191 , respectively, and $ 209 and $ 1,018 for the nine months ended September 30, 2022 and 2021 , respectively. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 5 -- Comprehensive Income (Loss) Comprehensive income (loss) includes net income and other comprehensive income or loss, which for the Company includes changes in unrealized gains or losses of investments carried at fair value and changes to any credit losses related to these investments. Reclassification adjustments for realized (gains) losses are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Before Income Net of Before Income Net of Tax Tax Effect Tax Tax Tax Effect Tax Net unrealized losses $ ( 5,969 ) $ 1,336 $ ( 7,305 ) $ ( 258 ) $ ( 63 ) $ ( 195 ) Reclassification adjustment for realized 5 1 4 ( 88 ) ( 22 ) ( 66 ) Total other comprehensive loss $ ( 5,964 ) $ 1,337 $ ( 7,301 ) $ ( 346 ) $ ( 85 ) $ ( 261 ) Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Before Income Net of Before Income Net of Tax Tax Effect Tax Tax Tax Effect Tax Net unrealized losses $ ( 12,294 ) $ ( 262 ) $ ( 12,032 ) $ ( 341 ) $ ( 83 ) $ ( 258 ) Call and repayment gains charged to — — — ( 2 ) ( 1 ) ( 1 ) Reclassification adjustment for realized 426 108 318 ( 665 ) ( 163 ) ( 502 ) Total other comprehensive loss $ ( 11,868 ) $ ( 154 ) $ ( 11,714 ) $ ( 1,008 ) $ ( 247 ) $ ( 761 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6 -- Fair Value Measurements The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets. Level 2 – Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset. Level 3 – Inputs that are unobservable. Valuation Methodology Cash and Cash Equivalents Cash and cash equivalents primarily consist of money-market funds and certificates of deposit maturing within 90 days. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds. Restricted Cash Restricted cash represents cash held by state authorities and the carrying value approximates fair value. Fixed-Maturity and Equity Securities Estimated fair values of the Company’s fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 2 inputs. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies, and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values. Revolving Credit Facility From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the London Interbank Offered Rate plus a spread. As a result, carrying value, when outstanding, approximates fair value. Long-Term Debt The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 4.75 % Convertible Senior Notes 2042 Quoted price 4.25 % Convertible Senior Notes 2037 Quoted price 3.90 % Promissory Note 2032 Discounted cash flow method/Level 3 inputs 3.75 % Callable Promissory Note 2036 Discounted cash flow method/Level 3 inputs 4.55 % Promissory Note 2036 Discounted cash flow method/Level 3 inputs Assets Measured at Estimated Fair Value on a Recurring Basis The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2022 and December 31, 2021: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of September 30, 2022 Financial Assets: Cash and cash equivalents $ 355,699 $ — $ — $ 355,699 Restricted cash $ 2,900 $ — $ — $ 2,900 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 321,520 $ 8,333 $ — $ 329,853 Corporate bonds 28,232 — — 28,232 State, municipalities, and political subdivisions — 1,751 — 1,751 Exchange-traded debt 701 — — 701 Redeemable preferred stock 102 — — 102 Total available-for-sale securities $ 350,555 $ 10,084 $ — $ 360,639 Equity securities $ 33,946 $ — $ — $ 33,946 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Financial Assets: Cash and cash equivalents $ 628,943 $ — $ — $ 628,943 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 15,536 $ 1,488 $ — $ 17,024 Corporate bonds 22,492 — — 22,492 State, municipalities, and political subdivisions — 1,808 — 1,808 Exchange-traded debt 811 — — 811 Redeemable preferred stock 448 — — 448 Total available-for-sale securities $ 39,287 $ 3,296 $ — $ 42,583 Equity securities $ 51,740 $ — $ — $ 51,740 Liabilities Carried at Other Than Fair Value The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of September 30, 2022 and December 31, 2021: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of September 30, 2022 Financial Liabilities: Long-term debt: 4.75 % Convertible Senior Notes $ 166,859 $ — $ 134,388 $ — $ 134,388 4.25 % Convertible Senior Notes 23,916 — 20,527 — 20,527 3.90 % Promissory Note 9,031 — — 8,058 8,058 3.75 % Callable Promissory Note 6,881 — — 6,137 6,137 4.55 % Promissory Note 4,963 — — 4,610 4,610 Total long-term debt $ 211,650 $ — $ 154,915 $ 18,805 $ 173,720 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2021 Financial Liabilities: Revolving credit facility $ 15,000 $ — $ 15,000 $ — $ 15,000 Long-term debt: 4.25 % Convertible Senior Notes $ 23,885 $ — $ 33,248 $ — $ 33,248 3.90 % Promissory Note 9,287 — — 10,488 10,488 3.75 % Callable Promissory Note 7,153 — — 7,852 7,852 4.55 % Promissory Note 5,148 — — 6,051 6,051 Total long-term debt $ 45,473 $ — $ 33,248 $ 24,391 $ 57,639 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 7 -- Intangible Assets, Net The Company’s intangible assets, net consist of the following: September 30, December 31, 2022 2021 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 4,215 4,215 Policy renewal rights - United 12,384 7,634 Non-compete agreements - United (b) 314 195 Total, at cost 18,674 13,805 Less: accumulated amortization ( 5,023 ) ( 3,169 ) Intangible assets, net $ 13,651 $ 10,636 (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. The remaining weighted-average amortization periods for the intangible assets at September 30, 2022 are summarized in the table below: Anchor tenant relationships 11.7 years In-place leases 9.8 years Policy renewal rights - United 3.6 years In connection with the Southeast Region assumed business as described in Note 1 -- “Nature of Operations” the Company recorded intangible assets of $ 4,869 representing the renewal rights and non-compete agreement in exchange for consideration consisting of a 6 % commission on any replacement premium which includes $ 3,800 of commission prepaid up-front. The consideration was estimated at $4,869 with a $ 1,069 contingent liability. At September 30, 2022 and December 31, 2021, contingent liabilities related to renewal rights intangible assets were $ 3,488 and $ 2,419 , respectively, with the contingent liabilities included in other liabilities on the consolidated balance sheets. The renewal rights and non-compete intangible assets acquired do not meet the definition of a business as substantially all of the fair value of the intangible assets acquired are concentrated in a group of similar assets. Therefore, the Company accounted for the purchase of the renewal rights and non-compete intangible assets as an asset acquisition. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 8 -- Other Assets The following table summarizes the Company’s other assets: September 30, December 31, 2022 2021 Benefits receivable related to retrospective reinsurance contracts $ 14,781 $ 3,064 Reimbursement receivable under TPA service 801 3,525 Prepaid expenses 3,384 2,853 Deposits 3,592 406 Lease acquisition costs, net 665 505 Other 3,382 4,364 Total other assets $ 26,605 $ 14,717 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Note 9 -- Revolving Credit Facility In May 2022, the Company repaid the entire credit facility balance of $ 15,000 and at September 30, 2022 had no borrowings under the credit facility. For the three months ended September 30, 2022 and 2021, interest expense was $ 25 a nd $ 24 , respectively, includi ng $ 25 a nd $ 25 of amortization of issuance costs, respectively. For the nine months ended September 30, 2022 and 2021 , interest expense was $ 176 and $ 153 , respectively, including $ 74 and $ 74 of amortization of issuance costs, respectively. At September 30, 2022 , the Company was in compliance with all required covenants and had available borrowing capacity of $ 65,000 . See Note 21 -- “Subsequent Events” for information with regards to amendments to the terms of the credit agreement. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 10 -- Long-Term Debt The following table summarizes the Company’s long-term debt: September 30, December 31, 2022 2021 4.75 % Convertible Senior Notes, due June 1, 2042 $ 172,500 $ — 4.25 % Convertible Senior Notes, due March 1, 2037 23,916 23,916 3.90 % Promissory Note, due through April 1, 2032 9,163 9,431 3.75 % Callable Promissory Note, due through September 1, 2036 6,966 7,246 4.55 % Promissory Note, due through August 1, 2036 5,033 5,225 Finance lease liabilities, due through October 15, 2024 17 31 Total principal amount 217,595 45,849 Less: unamortized issuance costs ( 5,928 ) ( 345 ) Total long-term debt $ 211,667 $ 45,504 The following table summarizes future maturities of long-term debt as of September 30, 2022 , which takes into consideration the assumption that the 4.75 % Convertible Senior Notes and 4.25 % Convertible Senior Notes are repurchased at their respective next earliest call dates: Due in 12 months following September 30, 2022 $ 1,036 2023 1,065 2024 1,106 2025 1,151 2026 197,615 Thereafter 15,622 Total $ 217,595 Information with respect to interest expense related to long-term debt is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest Expense: Contractual interest $ 2,516 $ 1,421 $ 4,322 $ 4,832 Non-cash expense (a) 272 219 431 758 Total $ 2,788 $ 1,640 $ 4,753 $ 5,590 (a) Includes amortization of debt issuance costs. 4.75% Convertible Senior Notes In May 2022, the Company issued 4.75% Convertible Senior Notes in a private offering for an aggregate principal amount of $ 172,500 . The net proceeds of the 4.75% Convertible Senior Notes were $ 166,486 after $ 6,014 in related issuance and transaction costs. These notes mature June 1, 2042 and the cash interest is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2022. The 4.75% Convertible Senior Notes rank equally in right of payment to the Company’s existing and future unsecured and unsubordinated obligations. The 4.75% Convertible Senior Notes do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The 4.75% Convertible Senior Notes provide no protection to the note holders in the event of a fundamental change or other corporate transaction involving the Company except those described in the indenture. The 4.75% Convertible Senior Notes do not require a sinking fund to be established for the purpose of redemption. In conjunction with the issuance of the 4.75% Convertible Senior Notes, the Company entered into a share repurchase agreement providing for the repurchase of shares of the Company’s common stock. See Note 18 -- “Equity” under Share Repurchase Agreement for additional information. Embedded Conversion Feature The conversion feature of the 4.75 % Convertible Senior Notes is subject to conversion rate adjustments upon the occurrence of specified events (including payment of dividends above a specified amount) but will not be adjusted for any accrued and unpaid interest. The conversion rate of the 4.75 % Convertible Senior Notes is currently 12.4166 shares of common stock for each $1 in principal amount, which is the equivalent of approximately $ 80.54 per share. The holders of the 4.75% Convertible Senior Notes may convert all or a portion of their convertible senior notes during specified periods prior to the maturity date as follows: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2022, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130 % of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the 4.75% Convertible Senior Notes is less than 98 % of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; (4) if any or all of the 4.75% Convertible Senior Notes are called for redemption, at any time prior to the close of business on the business day prior to the redemption date; or (5) during either the period beginning on, and including, March 1, 2027 and ending at the close of business on the business day immediately preceding June 7, 2027 , or the period beginning on, and including, March 1, 2042 and ending at the close of business on the business day immediately preceding the maturity date. The note holders who elect to convert their convertible senior notes in connection with a fundamental change as described in the indenture will be entitled to a “make-whole” adjustment in the form of an increase in the conversion rate. Upon conversion, the Company has the option to satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock. As of September 30, 2022, none of the conditions allowing the holders of the 4.75% Convertible Senior Notes to convert had been met. The Company determined that the 4.75% Convertible Senior Notes’ embedded conversion feature is not a derivative financial instrument and does not require bifurcation. Embedded Redemption Feature – Fundamental Change The note holders have the right to require the Company to repurchase for cash all or any portion of the 4.75% Convertible Senior Notes at par prior to the maturity date should any of the fundamental change events described in the indenture occur. The Company concluded that this embedded redemption feature is not a derivative financial instrument, does not require bifurcation, and that it is not probable at issuance that any of the specified fundamental change events will occur. Therefore, this embedded redemption feature is not substantive and will not affect the expected life of the liability. Embedded Redemption Feature – Put Option of the Note Holder At the option of the holders of the 4.75% Convertible Senior Notes, the Company is required to repurchase for cash all or any portion of the 4.75% Convertible Senior Notes at par on June 1, 2027 , June 1, 2032 or June 1, 2037 . The Company concluded that this embedded feature is not a derivative financial instrument and does not require bifurcation. Due to this provision, the Company determined that it is appropriate to amortize the debt issuance costs from the date the debt is issued to the earliest date at which the holders of the 4.75% Convertible Senior Notes can demand payment. Thus, the Company amortizes the issuance costs associated with the 4.75% Convertible Senior Notes over the period from May 23, 2022 to June 1, 2027. The effective interest rate for the 4.75% Convertible Senior Notes, taking into account both cash and non-cash components, approximates 5.6 %. Had a 20-year term been used for the amortization of the issuance costs of the 4.75% Convertible Senior Notes, the annual effective interest rate charged to earnings would have decreased to approximately 5.0 %. As of September 30, 2022 , the remaining amortization period of the debt issuance costs was expected to be 4.7 years for the 4.75% Convertible Senior Notes. 4.25% Convertible Senior Notes On March 1, 2022, none of the holders of the 4.25% Convertible Senior Notes exercised the put option, which would have required the Company to repurchase for cash all or any portion of the notes at par. The Company’s recent cash dividends on common stock have exceeded $ 0.35 per share, resulting in adjustments to the conversion rate of the 4.25% Convertible Senior Notes. Accordingly, as of September 30, 2022 , the conversion rate of the Company’s 4.25 % Convertible Senior Notes was 16.5108 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $ 60.57 per share. The debt issuance costs for the 4.25% Convertible Senior Notes had been fully amortized as of February 2022. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Reinsurance | Note 11 -- Reinsurance Reinsurance obtained from other insurance companies The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under one quota share reinsurance agreement. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30 % ceding commission on ceded premiums written and a profit commission equal to 10 % of net profit. The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1 st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. The impact of the reinsurance contracts on premiums written and earned is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Premiums Written: Direct $ 182,039 $ 143,426 $ 541,812 $ 396,781 Assumed 9,142 30,840 12,815 88,311 Gross written 191,181 174,266 554,627 485,092 Ceded ( 74,741 ) ( 55,577 ) ( 184,108 ) ( 145,112 ) Net premiums written $ 116,440 $ 118,689 $ 370,519 $ 339,980 Premiums Earned: Direct $ 166,116 $ 120,763 $ 479,849 $ 346,788 Assumed 15,597 29,046 61,913 73,403 Gross earned 181,713 149,809 541,762 420,191 Ceded ( 74,741 ) ( 55,577 ) ( 184,108 ) ( 145,112 ) Net premiums earned $ 106,972 $ 94,232 $ 357,654 $ 275,079 During the three and nine months ended September 30, 2022 , the Company recognized ceded losses of $ 907,541 and $ 910,928 , respectively, as reductions in losses and loss adjustment expenses. During the three and nine months ended September 30, 2021 , the Company recognized ceded losses of $ 1,830 and $ 2,424 , respectively, as reductions in losses and loss adjustment expenses. At September 30, 2022 and December 31, 2021 , there were 45 and 55 reinsurers, respectively, participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at September 30, 2022 and December 31, 2021 were $ 952,996 and $ 76,650 , respectively. Approximatel y 74.7 % of the reinsurance recoverable balance at September 30, 2022 was receivable from three reins urers, one of which was the Florida Hurricane Catastrophe Fund, a tax-exempt state trust fund. Based on all available information considered in the rating-based method, the Company recognized increases in credit loss expense of $ 389 and $ 361 for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2021 , the Company derecognized credit loss expenses of $ 13 and $ 41 , respectively. Allowances for credit losses related to the reinsurance recoverable balance were $ 451 and $ 90 at September 30, 2022 and December 31, 2021, respectively. One of the existing reinsurance contracts includes retrospective provisions that adjust premiums in the event losses are minimal or zero. Prior to June 1, 2022, there were two reinsurance contracts with retrospective provisions. As a result of Hurricane Ian, the balance of previously accrued benefits under the multi-year reinsurance contract with retrospective provisions was decreased by $ 12,600 during the third quarter of 2022. For the three and nine months ended September 30, 2022 , the Company recognized reductions in premiums ceded of $ 3,843 and $ 11,717 , respectively, related to these adjustments in the consolidated statements of income. For the three and nine months ended September 30, 2021 , the Company recognized reductions in premiums ceded of $ 1,364 and $ 9,619 , respectively. See Note 20 -- “Commitments and Contingencies” for additional information. Amounts receivable pursuant to retrospective provisions are reflected in other assets. At September 30, 2022 and December 31, 2021 , other assets included $ 14,781 and $ 3,064 , respectively. Management believes the credit risk associated with the collectability of accrued benefits is minimal as the amount receivable is concentrated with reinsurers with good credit ratings and the Company monitors the creditworthiness of these reinsurers based on available information about each reinsurer’s financial condition. See Note 21 -- “Subsequent Events” for information on collection. Reinsurance provided to other insurance companies For the three months ended September 30, 2022, assumed premiums written related to the Northeast Region’s insurance policies were $ 0 , whereas for the nine months ended September 30, 2022, $ 27,488 of assumed premiums written related to the Northeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in Massachusetts and New Jersey. For the three and nine months ended September 30, 2021 , assumed premiums written were $ 30,840 and $ 88,311 , respectively. At September 30, 2022 , the Company had a net balance of $ 1,301 due to United related to the Northeast Region, consisting of ceding commission payable of $ 865 and payable on paid losses and loss adjustment expenses of $ 436 . At December 31, 2021 , the Company had a net balance of $ 4,486 due to United related to the Northeast Region, consisting of ceding commission payable of $ 535 and payable on paid losses and loss adjustment expenses of $ 4,017 , offset by premiums receivable of $ 66 . Effective December 31, 2021, the Company entered into a separate agreement to provide 85% quota share reinsurance on United’s personal lines insurance policies in the states of Georgia, South Carolina and North Carolina through May 31, 2022. Effective June 1, 2022, the Company entered into a new agreement to provide 100% quota share reinsurance on United’s personal lines insurance policies in the Southeast Region. For the three and nine months ended September 30, 2022 , assumed premiums written related to the Southeast Region’s insurance policies were $ 9,142 and $ 40,303 , respectively. At September 30, 2022 , the Company had a net balance of $ 8,038 receivable from United, consisting of premiums receivable of $ 12,676 , offset by payable on paid losses and loss adjustment expenses of $ 2,610 and ceding commission payable of $ 2,028 . At December 31, 2021 , there was an amount receivable from United of $ 23,325 , net of a ceding commission of $ 8,835 and a catastrophe cost allowance of $ 3,181 . At September 30, 2022 and December 31, 2021 , the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $ 67,313 and $ 73,716 , respectively. |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 12 -- Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred but not reported. The Company primarily writes insurance in states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. Activity in the liability for losses and LAE is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net balance, beginning of period* $ 196,414 $ 154,901 $ 172,410 $ 141,065 Incurred, net of reinsurance, related to: Current period 126,486 53,834 275,010 147,064 Prior period 13,308 8,830 24,318 17,268 Total incurred, net of reinsurance 139,794 62,664 299,328 164,332 Paid, net of reinsurance, related to: Current period ( 45,732 ) ( 31,663 ) ( 102,155 ) ( 59,265 ) Prior period ( 27,489 ) ( 22,237 ) ( 106,596 ) ( 82,467 ) Total paid, net of reinsurance ( 73,221 ) ( 53,900 ) ( 208,751 ) ( 141,732 ) Net balance, end of period 262,987 163,665 262,987 163,665 Add: reinsurance recoverable before allowance for 938,855 39,512 938,855 39,512 Gross balance, end of period $ 1,201,842 $ 203,177 $ 1,201,842 $ 203,177 * Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE. The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. During the three and nine months ended September 30, 2022 , the Company recognized losses related to prior periods of $ 13,308 and $ 24,318 , respectively, primarily to increase the reserve resulting fro m increased litigation. The Company incurred a net estimated loss of approximately $ 65,000 resulting from Hurricane Ian during the third quarter of 2022. L oss and LAE expenses for the three and nine months ended September 30, 2022 included net estimated losses of approximately $ 18,715 and $ 42,114 , respectively, related to policies assumed from United. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13 -- Segment Information The Company identifies its operating divisions or segments based on managerial emphasis, organizational structure and revenue source. In the first quarter of 2021, the Company reorganized its operations to focus on specific business segments, resulting in the creation of TTIG with a separate workforce, board of directors and financial reporting structure. Companies under TTIG include TypTap, TypTap Management Company, Exzeo USA, Inc., and Cypress Tech Development Company, Inc., the parent company of an India company, Exzeo Software Private Limited. TTIG and its subsidiaries are considered a new reporting segment known as TypTap Group. The Company has four reportable segments: HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under TypTap Group, are grouped together into one reportable segment under HCPCI insurance operations. The TypTap Group segment includes its property and casualty insurance operations, information technology operations and its management company’s activities. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies and any other companies that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income. For the three months ended September 30, 2022 and 2021, revenues from the HCPCI insurance operations segment before intracompany elimination represente d 60.5 % and 73.9 %, respectively, and revenues from the TypTap Group segment represented 29.9 % and 24.0 %, respectively, of total revenues of all operating segments. For the nine months ended September 30, 2022 and 2021, revenues from the HCPCI insurance operations segment before intracompany elimination represente d 66.6 % and 76.4 %, respectively, and revenues from the TypTap Group segment represented 28.7 % and 20.7 %, respectively, of total revenues of all operating segments. At September 30, 2022 and December 31, 2021, HCPCI insurance operations’ total assets represente d 55.9 % and 58.7 %, respectively, and TypTap Group’s total assets represented 36.7 % a nd 29.3 %, respectively, of the combined assets of all operating segments. The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2022 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 104,671 $ 82,728 $ — $ — $ ( 5,686 ) $ 181,713 Premiums ceded ( 46,157 ) ( 33,236 ) — — 4,652 ( 74,741 ) Net premiums earned 58,514 49,492 — — ( 1,034 ) 106,972 Net income from investment portfolio 1,143 1,144 — 1,338 13,674 17,299 Policy fee income 613 458 — — — 1,071 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Other 1,246 512 2,785 717 ( 3,948 ) 1,312 Total revenue 61,516 51,606 16,187 2,055 ( 4,710 ) 126,654 Expenses: Losses and loss adjustment expenses 73,228 62,153 — — 4,413 139,794 Amortization of deferred policy acquisition costs 11,333 12,176 — — — 23,509 Other policy acquisition expenses 748 450 — — ( 29 ) 1,169 Stock-based compensation expense 1,049 869 — 2,212 — 4,130 Interest expense — 222 221 2,591 ( 221 ) 2,813 Depreciation and amortization 166 865 651 186 ( 596 ) 1,272 Personnel and other operating expenses 14,240 8,497 1,583 1,526 ( 8,277 ) 17,569 Total expenses 100,764 85,232 2,455 6,515 ( 4,710 ) 190,256 (Loss) income before income taxes $ ( 39,248 ) $ ( 33,626 ) $ 13,732 $ ( 4,460 ) $ — $ ( 63,602 ) Total revenue from non-affiliates (d) $ 55,801 $ 55,803 $ 15,848 $ 1,440 Gross premiums written $ 119,400 $ 71,781 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 98,256 $ 51,553 $ — $ — $ — $ 149,809 Premiums ceded ( 36,955 ) ( 20,135 ) — — 1,513 ( 55,577 ) Net premiums earned 61,301 31,418 — — 1,513 94,232 Net income from investment portfolio 831 102 — 172 778 1,883 Policy fee income 693 307 — — — 1,000 Other 2,087 480 2,336 489 ( 3,290 ) 2,102 Total revenue 64,912 32,307 2,336 661 ( 999 ) 99,217 Expenses: Losses and loss adjustment expenses 36,928 24,224 — — 1,512 62,664 Amortization of deferred policy acquisition costs 12,402 9,250 — — — 21,652 Other policy acquisition expenses 633 1,110 — — ( 55 ) 1,688 Stock-based compensation expense 662 471 — 1,599 — 2,732 Interest expense — 1 231 1,432 — 1,664 Depreciation and amortization 18 342 576 171 ( 603 ) 504 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 5,234 7,214 814 2,135 ( 1,853 ) 13,544 Total expenses 55,877 42,612 1,621 6,610 ( 999 ) 105,721 Income (loss) before income taxes $ 9,035 $ ( 10,305 ) $ 715 $ ( 5,949 ) $ — $ ( 6,504 ) Total revenue from non-affiliates (c) $ 65,629 $ 32,701 $ 1,997 $ 402 Gross premiums written $ 118,280 $ 55,987 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2022 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 339,612 $ 210,793 $ — $ — $ ( 8,643 ) $ 541,762 Premiums ceded ( 120,089 ) ( 70,798 ) — — 6,779 ( 184,108 ) Net premiums earned 219,523 139,995 — — ( 1,864 ) 357,654 Net (loss) income from investment portfolio ( 1,760 ) 1,411 — 426 15,644 15,721 Policy fee income 1,895 1,285 — — — 3,180 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Other 2,907 1,513 7,953 3,025 ( 12,333 ) 3,065 Total revenue 222,565 144,204 21,355 3,451 ( 11,955 ) 379,620 Expenses: Losses and loss adjustment expenses 165,915 129,833 — — 3,580 299,328 Amortization of deferred policy acquisition costs 46,339 31,403 — — — 77,742 Other policy acquisition expenses 2,090 1,230 — — ( 113 ) 3,207 Stock-based compensation expense 3,380 2,651 — 6,678 — 12,709 Interest expense — 633 672 4,256 ( 632 ) 4,929 Depreciation and amortization 433 2,200 1,862 660 ( 1,819 ) 3,336 Personnel and other operating expenses 29,296 24,516 3,516 5,173 ( 12,971 ) 49,530 Total expenses 247,453 192,466 6,050 16,767 ( 11,955 ) 450,781 (Loss) income before income taxes $ ( 24,888 ) $ ( 48,262 ) $ 15,305 $ ( 13,316 ) $ — $ ( 71,161 ) Total revenue from non-affiliates (d) $ 213,810 $ 149,635 $ 20,339 $ 1,530 Gross premiums written $ 323,680 $ 230,947 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 300,827 $ 119,364 $ — $ — $ — $ 420,191 Premiums ceded ( 104,236 ) ( 42,229 ) — — 1,353 ( 145,112 ) Net premiums earned 196,591 77,135 — — 1,353 275,079 Net income from investment portfolio 5,261 933 — 4,059 3,799 14,052 Policy fee income 2,106 856 — — — 2,962 Other 3,420 1,130 9,849 1,316 ( 12,213 ) 3,502 Total revenue 207,378 80,054 9,849 5,375 ( 7,061 ) 295,595 Expenses: Losses and loss adjustment expenses 110,008 52,976 — — 1,348 164,332 Amortization of deferred policy acquisition costs 43,906 20,541 — — — 64,447 Other policy acquisition expenses 2,170 3,071 — — ( 114 ) 5,127 Stock-based compensation expense 2,360 2,438 — 4,431 — 9,229 Interest expense — 91 972 4,950 ( 270 ) 5,743 Depreciation and amortization 56 942 1,737 711 ( 1,841 ) 1,605 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 14,957 18,569 3,332 4,470 ( 6,184 ) 35,144 Total expenses 173,457 98,628 6,041 15,835 ( 7,061 ) 286,900 Income (loss) before income taxes $ 33,921 $ ( 18,574 ) $ 3,808 $ ( 10,460 ) $ — $ 8,695 Total revenue from non-affiliates (c) $ 206,743 $ 80,893 $ 8,833 $ 4,641 Gross premiums written $ 323,490 $ 161,602 (a) Other revenue under real estate primarily consisted of rental income from investment properties . (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets: September 30, December 31, 2022 2021 Segments: HCPCI Insurance Operations $ 1,141,660 $ 676,509 TypTap Group 813,543 369,600 Real Estate Operations 125,992 127,651 Corporate and Other 159,569 65,349 Consolidation and Elimination ( 96,021 ) ( 62,252 ) Total assets $ 2,144,743 $ 1,176,857 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 14 -- Leases The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases: September 30, December 31, 2022 2021 Operating leases: ROU assets $ 1,597 $ 2,204 Liabilities $ 1,539 $ 2,203 Finance leases: ROU assets $ 80 $ 86 Liabilities $ 17 $ 31 The Company’s lease of office space in India for its information technology operations expired in January 2022 and a new lease agreement was entered into effective February 2022 with an initial term of nine years. The following table summarizes the Company’s operating and finance leases in which the Company is a lessee: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office equipment 1 to 51 months Yes (a), (b) Office space 3 to 9 years Yes (b), (c) Finance lease: Office equipment 3 to 5 years Not applicable (d) (a) At the end of the lease term, the Company can purchase the equipment at fair market value. (b) There are no variable lease payments. (c) Rent escalation provisions exist. (d) There is a bargain purchase option. As of September 30, 2022, maturities of lease liabilities were as follows: Leases Operating Finance Due in 12 months following September 30, 2022 $ 917 $ 15 2023 92 2 2024 96 — 2025 101 — 2026 106 — Thereafter 393 — Total lease payments 1,705 17 Less: interest 166 — Total lease obligations $ 1,539 $ 17 The following table provides quantitative information with regards to the Company’s operating and finance leases: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Lease costs: Finance lease costs: Amortization – ROU assets* $ 4 $ 4 $ 14 $ 13 Interest expense — — — 1 Operating lease costs* 281 386 937 1,231 Short-term lease costs* 105 100 306 250 Total lease costs $ 390 $ 490 $ 1,257 $ 1,495 Cash paid for amounts included in the Operating cash flows – finance leases $ — $ 1 Operating cash flows – operating leases $ 924 $ 1,237 Financing cash flows – finance leases $ 14 $ 14 September 30, 2022 Weighted-average remaining lease term: Finance leases (in years) 1.3 Operating leases (in years) 4.3 Weighted-average discount rate: Finance leases (%) 3.4 % Operating leases (%) 4.0 % * Included in other operating expenses on the consolidated statements of income. The following table summarizes the Company’s operating leases in which the Company is a lessor: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office space 1 to 3 years Yes (e) Retail space 3 to 20 years Yes (e) Boat docks/wet slips 1 to 12 months Yes (e) (e) There are no purchase options. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 -- Income Taxes During the three months ended September 30, 2022 and 2021, the Company recorded approximately $ 12,099 and $ 1,636 , respectively, of income tax benefits, which resulted in effective tax rates of 19.0 % and 25.2 %, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to a valuation allowance established during the third quarter of 2022 and an increase in non-deductible compensation expense related to restricted stock granted to certain executives, offset by the increased Florida corporate tax rate effective January 1, 2022. A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. Management concluded that the negative evidence outweighed the positive evidence and therefore recorded a valuation allowance on the Company’s deferred tax assets as of September 30, 2022. During the nine months ended September 30, 2022, the Company recorded approximately $ 13,907 of income tax benefit, which resulted in an effective tax rate of 19.5 %. During the nine months ended September 30, 2021, the Company recorded approximately $ 2,888 of income tax expense, which resulted in an effective tax rate of 33.2 %. The decrease in the effective tax rate in 2022 as compared with the corresponding period in the prior year was primarily attributable to the recognition of tax benefits attributable to restricted stock that vested in February and May of 2022 and the valuation allowance as described above. T he Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16 -- Earnings Per Share U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level. A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Loss Shares (a) Per Share Loss Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net loss $ ( 51,503 ) $ ( 4,868 ) Less: Net income attributable to redeemable ( 2,285 ) ( 2,202 ) Less: TypTap Group’s net loss attributable 2,829 774 Net loss attributable to HCI ( 50,959 ) ( 6,296 ) Less: Loss attributable to participating 3,289 537 Basic Loss Per Share: Loss allocated to common stockholders ( 47,670 ) 8,427 $ ( 5.66 ) ( 5,759 ) 8,023 $ ( 0.72 ) Effect of Dilutive Securities: * Stock options — — — — Convertible senior notes — — — — Warrants — — — — Diluted Loss Per Share: Loss available to common stockholders and $ ( 47,670 ) 8,427 $ ( 5.66 ) $ ( 5,759 ) 8,023 $ ( 0.72 ) (a) Shares in thousands. * For the three months ended September 30, 2022 and 2021, respectively, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Loss Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net (loss) income $ ( 57,254 ) $ 5,807 Less: Net income attributable to redeemable ( 6,801 ) ( 5,175 ) Less: TypTap Group’s net loss attributable 4,018 1,191 Net (loss) income attributable to HCI ( 60,037 ) 1,823 Less: Loss (income) attributable to 3,855 ( 37 ) Basic (Loss) Earnings Per Share: (Loss) income allocated to common ( 56,182 ) 8,972 $ ( 6.26 ) 1,786 7,676 $ 0.23 Effect of Dilutive Securities: * Stock options — — — 182 Convertible senior notes — — — — Warrants — — — 234 Diluted (Loss) Earnings Per Share: (Loss) income available to common $ ( 56,182 ) 8,972 $ ( 6.26 ) $ 1,786 8,092 $ 0.22 (a) Shares in thousands. * For the nine months ended September 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. For the nine months ended September 30, 2021, convertible senior notes were excluded due to anti-dilutive effect. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 17 -- Redeemable Noncontrolling Interest The following table summarizes the activity of redeemable noncontrolling interest during the nine months ended September 30, 2022 and 2021: 2022 2021 Balance at January 1 $ 89,955 $ — Initial proceeds from Centerbridge — 100,000 Increase (decrease): Proceeds allocated to warrants* — ( 9,217 ) Issuance costs — ( 6,262 ) Issuance costs allocated to warrants* — 577 Accrued cash dividends 1,342 458 Accretion - increasing dividend rates 906 336 Dividends paid ( 2,508 ) — Balance at March 31 $ 89,695 $ 85,892 Increase (decrease): Accrued cash dividends 1,500 1,250 Accretion - increasing dividend rates 768 929 Balance at June 30 $ 91,963 $ 88,071 Increase (decrease): Accrued cash dividends 1,499 1,250 Accretion - increasing dividend rates 786 952 Dividends paid ( 3,000 ) ( 2,542 ) Balance at September 30 $ 91,248 $ 87,731 *Net decrease related to warrants of $ 8,640 . For the three months ended September 30, 2022 and 2021 , net income attributable to redeemable noncontrolling interest was $ 2,285 and $ 2,202 , respectively, consisting of accrued cash dividends of $ 1,499 and $ 1,250 , respectively, and accretion related to increasing dividend rates of $ 786 and $ 952 , respectively. For the nine months ended September 30, 2022 and 2021 , net income attributable to redeemable noncontrolling interest was $ 6,801 and $ 5,175 , respectively, consisting of accrued cash dividends of $ 4,341 and $ 2,958 , respectively, and accretion related to increasing dividend rates of $ 2,460 and $ 2,217 , respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | Note 18 -- Equity Stockholders’ Equity Common Stock In March 2022, the Company’s Board of Directors authorized a plan to repurchase up to $ 20,000 of the Company’s common shares before commissions and fees during 2022. During the three months ended September 30, 2022, the Company repurchased and retired a total of 119,462 shares at a weighted average price per share of $ 51.69 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the three months ended September 30, 2022 was $ 6,179 or $ 51.72 per share. During the nine months ended September 30, 2022, the Company repurchased and retired a total of 148,927 shares at a weighted average price per share of $ 54.11 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the nine months ended September 30, 2022 was $ 8,063 or $ 54.14 per share. On July 14, 2022 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends were paid on September 16, 2022 to stockholders of record on August 19, 2022 . Warrants At September 30, 2022 , there were warrants outstanding and exercisable to purchase 750,000 shares of HCI common stock at an exercise price of $ 54.40 . The warrants expire on February 26, 2025 . Share Repurchase Agreement In conjunction with the issuance of the 4.75 % Convertible Senior Notes as described in Note 10 -- “Long-Term Debt” under 4.75% Convertible Senior Notes , the Company used $ 66,853 of the net proceeds to repurchase and retire an aggregate of 1,037,600 shares of its common stock at a price of $ 64.43 per share from institutional investors. Prepaid Share Repurchase Forward Contract In March 2022, the Company’s share repurchase forward contract with Societe Generale, entered into in conjunction with the 2017 issuance of the 4.25 % Convertible Senior Notes, was physically settled with the delivery from Societe Generale of 191,100 shares of HCI’s common stock to the Company. Noncontrolling Interests At September 30, 2022 , there were 81,139,221 shares of TTIG’s common stock outstanding, of which 6,139,221 shares were not owned by HCI. During the three and nine months ended September 30, 2022, TTIG repurchased and retired a total of 2,893 and 69,876 shares, respectively, of its common stock surrendered by its employees to satisfy payroll tax liabilities associated with the vesting of restricted shares. The total cost of purchasing noncontrolling interests during the three and nine months ended September 30, 2022 w as $ 17 and $ 406 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 19 -- Stock-Based Compensation 2012 Omnibus Incentive Plan The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At September 30, 2022 , there were 1,110,605 shares available for grant. Stock Options Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years . A summary of the stock option activity for the three and nine months ended September 30, 2022 and 2021 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2022 440,000 $ 45.25 6.6 years $ 18,119 Outstanding at March 31, 2022 440,000 $ 45.25 6.3 years $ 10,494 Outstanding at June 30, 2022 440,000 $ 45.25 6.1 years $ 9,354 Outstanding at September 30, 2022 440,000 $ 45.25 5.8 years $ 117 Exercisable at September 30, 2022 357,500 $ 44.23 5.5 years $ 117 Outstanding at January 1, 2021 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at March 31, 2021 440,000 $ 45.25 7.3 years $ 13,464 Outstanding at June 30, 2021 440,000 $ 45.25 7.1 years $ 23,883 Outstanding at September 30, 2021 440,000 $ 45.25 6.8 years $ 29,238 Exercisable at September 30, 2021 275,000 $ 43.40 6.3 years $ 18,782 There wer e no o ptions exercised during the three and nine months ended September 30, 2022 and 2021. For the three months ended September 30, 2022 and 2021 , the Company recognized $ 162 and $ 221 , respectively, of compensation expense which was included in general and administrative personnel expenses. For the nine months ended September 30, 2022 and 2021 , the Company recognized $ 507 and $ 663 , respectively, of compensation expense. Deferred tax benefits related to stock options were $ 0 and $ 3 for the three months ended September 30, 2022 and 2021 , respectively, and $ 0 and $ 4 for the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021 , there was $ 498 and $ 1,005 , respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 1.1 years. Restricted Stock Awards From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2022 and 2021 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2022 679,997 $ 39.72 Granted 4,000 $ 70.58 Vested ( 50,667 ) $ 50.68 Forfeited ( 3,265 ) $ 45.85 Nonvested at March 31, 2022 630,065 $ 39.00 Granted 3,000 $ 67.30 Vested ( 51,125 ) $ 45.04 Forfeited ( 700 ) $ 45.61 Nonvested at June 30, 2022 581,240 $ 38.61 Forfeited ( 1,665 ) $ 45.56 Nonvested at September 30, 2022 579,575 $ 38.59 Nonvested at January 1, 2021 423,787 $ 43.79 Granted 548,086 $ 36.95 Vested ( 41,250 ) $ 42.18 Cancelled ( 141,600 ) $ 43.76 Forfeited ( 2,050 ) $ 45.67 Nonvested at March 31, 2021 786,973 $ 39.11 Granted 3,000 $ 76.00 Vested ( 68,541 ) $ 43.80 Cancelled ( 1,160 ) $ 45.96 Forfeited ( 9,060 ) $ 46.44 Nonvested at June 30, 2021 711,212 $ 38.71 Granted 2,340 $ 96.60 Forfeited ( 38,855 ) $ 38.05 Nonvested at September 30, 2021 674,697 $ 38.95 The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $ 3,099 and $ 2,039 for the three months ended September 30, 2022 and 2021 , respectively, and $ 9,551 and $ 6,280 for the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021 , there was approximately $ 9,670 and $ 18,995 , respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.2 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Deferred tax benefits recognized $ 230 $ 420 $ 1,521 $ 879 Tax benefits realized for restricted stock and $ 56 $ 70 $ 1,360 $ 1,482 Fair value of vested restricted stock $ — $ — $ 4,871 $ 4,742 In February 2021, the Company cancelled 141,600 shares of restricted stock for employees who transitioned to TypTap Group. In exchange, these employees received replacement restricted stock issued under TTIG’s equity incentive plan. Subsidiary Equity Plan For the three months ended September 30, 2022 and 2021 , TypTap Group recognized compensation expense related to its stock-based awards of $ 869 and $ 472 , respectively. For the nine months ended September 30, 2022 and 2021 , TypTap Group recognized compensation expense related to its stock-based awards of $ 2,651 and $ 2,286 , respectively. At September 30, 2022 and December 31, 2021 , there was $ 8,780 and $ 11,230 , respectively, of unrecognized compensation expense related to nonvested restricted stock and stock options. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 20 -- Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of September 30, 2022, the Company has a contractual obligation related to one multi-year reinsurance contract. The contract was entered into effective June 1, 2022 and the Company’s previous two multi-year reinsurance contracts were commuted effective May 31, 2022. The contract may be cancelled only with the other party’s consent or when its respective experience account is positive at the end of each contract year. The table below represents the future minimum aggregate premium amounts payable to the reinsurer. Due in 12 months following September 30, 2022 $ 91,350 2023 91,350 Total $ 182,700 Capital Commitments As described in Note 4 -- “Investments” under Limited Partnership Investments , the Company is contractually committed to capital contributions for limited partnership interests. At September 30, 2022 , there was an aggregate unfunded balance of $ 6,262 . FIGA Assessments In October 2021, the Florida Office of Insurance Regulation approved a 2022 assessment for the Florida Insurance Guaranty Association (“FIGA”) which is necessary to secure funds for the payment of covered claims of insolvent insurance companies. The 2022 FIGA assessment is levied at 0.70 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning January 1, 2022 through December 31, 2022. In March 2022, the Florida Office of Insurance Regulation approved an assessment for FIGA which is necessary to secure funds for the payment of covered claims relating to the liquidation of one insurance company. The FIGA assessment is levied at 1.3 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning July 1, 2022 through June 30, 2023. In August 2022, the Florida Office of Insurance Regulation approved a 2023 assessment for FIGA which is necessary to secure funds for the payment of covered claims relating to the liquidation of two insurance companies. The 2023 FIGA assessment is levied at 0.70 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning January 1, 2023 through December 31, 2023. The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to FIGA on a quarterly basis. As of September 30, 2022 , the FIGA assessments payable by the Company were $ 2,858 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21 -- Subsequent Events In connection with the Company’s quota share reinsurance agreement to provide 100 % reinsurance on all of United’s in-force, new and renewal policies in the Southeast Region from June 1, 2022 through May 31, 2023, the Company began renewing and/or replacing United’s policies in Georgia on October 1, 2022. On October 5, 2022, 231,516 shares of restricted stock issued to employees vested one year subsequent to satisfaction of a market-based vesting condition on October 5, 2021. The restricted shares were granted in February 2021 with a grant date fair value of $ 36.57 per share. The Company repurchased and retired a total of 80,339 shares surrendered to satisfy payroll tax liabilities associated with the vesting of these restricted shares. On October 7, 2022, the Company received the entirety of the $ 5,457 amount receivable pursuant to retrospective provisions under the Company’s previous two multi-year reinsurance contracts which were commuted effective May 31, 2022. On October 13, 2022 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends are payable on December 16, 2022 to stockholders of record on November 18, 2022 . On November 7, 2022, the Company executed an amendment to the revolving credit facility with Fifth Third Bank. Under the terms of the amendment, the maximum debt-to-capital ratio as defined in the credit agreement is set at 67.5 % and the borrowing capacity of the line of credit is set at $ 50,000 . This summary of the amendment is qualified in its entirety by reference to the Fourth Amendment to Credit Agreement, which is filed as Exhibit 10.61 to this Quarterly Report on Form 10-Q. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements for HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2022 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2022. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2021 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2022. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, intangible assets acquired from United, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. |
Allowance for Credit Losses | Allowance for Credit Losses Allowance for credit losses represents an estimation of potential losses that the Company may experience due to credit risk. The allowance for credit losses account is a contra account of a financial asset to reflect the net amount expected to be collected. For certain financial assets related to insurance business such as reinsurance recoverable and reinsurance receivable for premium refund, the Company uses a rating-based method, which is a modified version of the probability of default method. It requires two key inputs: a) the liquidation rate and b) the amount of loss exposure. The liquidation rate, which is published annually, is the ratio of impaired insurance companies that were eventually liquidated to the group of insurance companies considered by A.M. Best in its study. The amount of loss exposure represents the future billing balance, net of any collateral, spread over the projected periods that are based on the Company’s historical claim payment pattern. The rating-based method measures credit losses by multiplying the future billings grouped by insurance rating over the projected periods by their corresponding liquidation rates by insurance rating. For paid reinsurance recoverable which is due within 90 days after billing, the Company will rely heavily on each reinsurer’s current rating, recent financial condition, and historical collection problems, if any, in determining the expected credit loss. For risk attributable to disagreements between an insurer and reinsurer regarding a difference in interpretation of provisions in a reinsurance agreement (“dispute risk”), the Company will continue to use an incurred loss method to estimate losses. At September 30, 2022, there was no dispute risk associated with the reinsurance recoverable balance. |
Long-Term Debt | Long-Term Debt Long-term debt includes debt instruments and finance lease obligations. A debt instrument is generally classified as a liability and carried at amortized cost, net of any issuance costs. Debt issuance costs are capitalized and amortized to interest expense over the expected life of the debt instrument using the effective interest method. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive and would not impact the initial measurement and expected life of the debt instrument. |
Revenue from Claims Processing Services | Revenue from Claims Processing Services Revenue related to claims processing services is included in other revenue in the consolidated statements of income. For the three and nine months ended September 30, 2022 , revenues from claims processing services were $ 903 and $ 2,282 , respectively. For the three and nine months ended September 30, 2021 , revenues from claims processing services were $ 1,709 and $ 1,916 , respectively. At September 30, 2022 and December 31, 2021 , other assets included $ 1,418 and $ 314 , respectively, of amounts receivable attributable to this service. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Ceded reinsurance premiums payable were reclassified out of other liabilities for the nine months ended September 30, 2021 within the consolidated statement of cash flows to conform with the current year presentation. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. September 30, December 31, 2022 2021 Cash and cash equivalents $ 355,699 $ 628,943 Restricted cash 2,900 2,400 Total $ 358,599 $ 631,343 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At September 30, 2022 and December 31, 2021, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Allowance Gross Gross Estimated Cost Loss Gain Loss Value As of September 30, 2022 U.S. Treasury and U.S. government agencies $ 339,666 $ — $ 1 $ ( 9,814 ) $ 329,853 Corporate bonds 29,642 — — ( 1,410 ) 28,232 States, municipalities, and political subdivisions 1,762 — — ( 11 ) 1,751 Exchange-traded debt 700 — 3 ( 2 ) 701 Redeemable preferred stock 107 — — ( 5 ) 102 Total $ 371,877 $ — $ 4 $ ( 11,242 ) $ 360,639 As of December 31, 2021 U.S. Treasury and U.S. government agencies $ 17,046 $ — $ 64 $ ( 86 ) $ 17,024 Corporate bonds 21,913 — 632 ( 53 ) 22,492 States, municipalities, and political subdivisions 1,759 — 49 — 1,808 Exchange-traded debt 767 — 44 — 811 Redeemable preferred stock 468 — — ( 20 ) 448 Total $ 41,953 $ — $ 789 $ ( 159 ) $ 42,583 |
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities as of September 30, 2022 and December 31, 2021 are as follows: September 30, 2022 December 31, 2021 Cost or Estimated Cost or Estimated Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale Due in one year or less $ 124,676 $ 124,402 $ 10,734 $ 10,826 Due after one year through five years 242,499 232,166 19,222 19,820 Due after five years through ten years 4,208 3,577 11,503 11,403 Due after ten years 494 494 494 534 $ 371,877 $ 360,639 $ 41,953 $ 42,583 |
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three and nine months ended September 30, 2022 and 2021 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2022 $ 200 $ — $ ( 5 ) Three months ended September 30, 2021 $ 4,158 $ 94 $ ( 6 ) Nine months ended September 30, 2022 $ 11,694 $ 13 $ ( 439 ) Nine months ended September 30, 2021 $ 18,838 $ 671 $ ( 6 ) |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at September 30, 2022 and December 31, 2021, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of September 30, 2022 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 9,677 ) $ 324,643 $ ( 137 ) $ 2,233 $ ( 9,814 ) $ 326,876 Corporate bonds ( 1,164 ) 26,947 ( 246 ) 1,285 ( 1,410 ) 28,232 States, municipalities, and political ( 11 ) 1,751 — — ( 11 ) 1,751 Exchange-traded debt ( 2 ) 517 — — ( 2 ) 517 Redeemable preferred stock ( 5 ) 102 — — ( 5 ) 102 Total available-for-sale securities $ ( 10,859 ) $ 353,960 $ ( 383 ) $ 3,518 $ ( 11,242 ) $ 357,478 Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2021 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 73 ) $ 9,809 $ ( 13 ) $ 616 $ ( 86 ) $ 10,425 Corporate bonds ( 53 ) 4,452 — — ( 53 ) 4,452 Redeemable preferred stock ( 20 ) 442 — — ( 20 ) 442 Total available-for-sale securities $ ( 146 ) $ 14,703 $ ( 13 ) $ 616 $ ( 159 ) $ 15,319 |
Summary of Allowance for Credit Losses of Available-for-Sale Securities | The table below summarizes the activity in the allowance for credit losses of available-for-sale securities for the three and nine months ended September 30, 2022 and 2021: 2022 2021 Balance at January 1 $ — $ 588 Reductions for securities sold — ( 9 ) Balance at March 31 $ — $ 579 Reductions for securities exchanged — ( 579 ) Balance at June 30 $ — $ — Balance at September 30 $ — $ — |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities | At September 30, 2022 and December 31, 2021, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows: Gross Gross Estimated Cost Gain Loss Value September 30, 2022 $ 36,639 $ 1,873 $ ( 4,566 ) $ 33,946 December 31, 2021 $ 46,276 $ 6,335 $ ( 871 ) $ 51,740 |
Summary of Unrealized Gains and Losses for Equity Securities | The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net (losses) gains recognized $ ( 1,279 ) $ ( 916 ) $ ( 9,144 ) $ 2,620 Exclude: Net realized (losses) gains ( 932 ) 953 ( 987 ) 3,269 Net unrealized losses recognized $ ( 347 ) $ ( 1,869 ) $ ( 8,157 ) $ ( 649 ) |
Summary of Proceeds Received, Gross Realized Gains and Losses from Sales of Equity Securities | Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and nine months ended September 30, 2022 and 2021 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2022 $ 4,889 $ 135 $ ( 1,067 ) Three months ended September 30, 2021 $ 24,781 $ 1,141 $ ( 188 ) Nine months ended September 30, 2022 $ 29,316 $ 1,988 $ ( 2,975 ) Nine months ended September 30, 2021 $ 81,292 $ 4,266 $ ( 997 ) |
Schedule of Company's Investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships: September 30, 2022 December 31, 2021 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%) (a) Value Balance (%) (a) Primarily in senior secured loans and, to a $ 4,120 $ — 15.37 $ 6,076 $ 2,085 15.37 Value creation through active distressed debt 3,312 — 1.67 3,423 — 1.69 High returns and long-term capital appreciation 4,421 — 0.18 6,270 1,401 0.18 Value-oriented investments in less liquid and 3,757 — 0.57 4,437 — 0.57 Value-oriented investments in mature real 7,103 3,633 1.32 5,977 4,537 1.36 Risk-adjusted returns on credit and equity 2,692 2,629 1.07 1,950 3,050 0.47 Total $ 25,405 $ 6,262 $ 28,133 $ 11,073 (a) Represents the Company’s percentage investment in the fund at each balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c) The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. (d) The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances. (e) At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f) Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. (g) With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h) Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. (i) The capital commitment period has ended but an additional funding may be requested. (j) The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. (k) Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating results: Total revenues $ — $ 540 $ 572 $ 540 Total expenses — ( 14 ) ( 22 ) ( 70 ) Net income $ — $ 526 $ 550 $ 470 The Company’s share of net income* $ — $ 473 $ 495 $ 423 * Included in net investment income in the Company’s consolidated statements of income. September 30, December 31, 2022 2021 Balance sheet: Property and equipment, net $ — $ 357 Cash 2 29 Other 18 18 Total assets $ 20 $ 404 Members’ capital $ 20 $ 404 Total members’ capital $ 20 $ 404 Investment in unconsolidated joint venture, at equity** $ 18 $ 363 ** Includes the 90 % share of FMKT Mel JV’s operating results. |
Summary of Real Estate Investment | Real estate investments consist of the following as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 Land $ 38,327 $ 39,720 Land improvements 12,138 11,917 Buildings and building improvements 29,410 29,405 Tenant and leasehold improvements 1,554 1,511 Other 1,462 1,265 Total, at cost 82,891 83,818 Less: accumulated depreciation and amortization ( 11,391 ) ( 9,922 ) Real estate investments $ 71,500 $ 73,896 |
Investment (Loss) Income Summarized | Net investment income (loss), by source, is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Available-for-sale fixed-maturity securities $ 2,125 $ 266 $ 3,710 $ 1,091 Equity securities 288 322 875 1,013 Investment expense ( 117 ) ( 134 ) ( 367 ) ( 388 ) Limited partnership investments 1,265 1,132 3,064 3,491 Real estate investments 13,897 305 15,782 3,646 Net income from unconsolidated joint — 473 495 423 Cash and cash equivalents 1,072 156 1,523 473 Net investment income $ 18,530 $ 2,520 $ 25,082 $ 9,749 |
Limited Partnership [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating results: Total income $ 208,468 $ ( 13,796 ) $ 724,413 $ 359,885 Total expenses ( 45,537 ) ( 24,828 ) ( 117,877 ) ( 105,548 ) Net income (loss) $ 162,931 $ ( 38,624 ) $ 606,536 $ 254,337 September 30, December 31, 2022 2021 Balance sheet: Total assets $ 5,488,857 $ 5,855,616 Total liabilities $ 409,604 $ 564,732 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component | The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Before Income Net of Before Income Net of Tax Tax Effect Tax Tax Tax Effect Tax Net unrealized losses $ ( 5,969 ) $ 1,336 $ ( 7,305 ) $ ( 258 ) $ ( 63 ) $ ( 195 ) Reclassification adjustment for realized 5 1 4 ( 88 ) ( 22 ) ( 66 ) Total other comprehensive loss $ ( 5,964 ) $ 1,337 $ ( 7,301 ) $ ( 346 ) $ ( 85 ) $ ( 261 ) Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Before Income Net of Before Income Net of Tax Tax Effect Tax Tax Tax Effect Tax Net unrealized losses $ ( 12,294 ) $ ( 262 ) $ ( 12,032 ) $ ( 341 ) $ ( 83 ) $ ( 258 ) Call and repayment gains charged to — — — ( 2 ) ( 1 ) ( 1 ) Reclassification adjustment for realized 426 108 318 ( 665 ) ( 163 ) ( 502 ) Total other comprehensive loss $ ( 11,868 ) $ ( 154 ) $ ( 11,714 ) $ ( 1,008 ) $ ( 247 ) $ ( 761 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Components of Long-Term Debt and Methods Used in Estimating Fair Values | The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 4.75 % Convertible Senior Notes 2042 Quoted price 4.25 % Convertible Senior Notes 2037 Quoted price 3.90 % Promissory Note 2032 Discounted cash flow method/Level 3 inputs 3.75 % Callable Promissory Note 2036 Discounted cash flow method/Level 3 inputs 4.55 % Promissory Note 2036 Discounted cash flow method/Level 3 inputs |
Assets Measured at Estimated Fair Value on a Recurring Basis | The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2022 and December 31, 2021: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of September 30, 2022 Financial Assets: Cash and cash equivalents $ 355,699 $ — $ — $ 355,699 Restricted cash $ 2,900 $ — $ — $ 2,900 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 321,520 $ 8,333 $ — $ 329,853 Corporate bonds 28,232 — — 28,232 State, municipalities, and political subdivisions — 1,751 — 1,751 Exchange-traded debt 701 — — 701 Redeemable preferred stock 102 — — 102 Total available-for-sale securities $ 350,555 $ 10,084 $ — $ 360,639 Equity securities $ 33,946 $ — $ — $ 33,946 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Financial Assets: Cash and cash equivalents $ 628,943 $ — $ — $ 628,943 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 15,536 $ 1,488 $ — $ 17,024 Corporate bonds 22,492 — — 22,492 State, municipalities, and political subdivisions — 1,808 — 1,808 Exchange-traded debt 811 — — 811 Redeemable preferred stock 448 — — 448 Total available-for-sale securities $ 39,287 $ 3,296 $ — $ 42,583 Equity securities $ 51,740 $ — $ — $ 51,740 |
Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets | The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of September 30, 2022 and December 31, 2021: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of September 30, 2022 Financial Liabilities: Long-term debt: 4.75 % Convertible Senior Notes $ 166,859 $ — $ 134,388 $ — $ 134,388 4.25 % Convertible Senior Notes 23,916 — 20,527 — 20,527 3.90 % Promissory Note 9,031 — — 8,058 8,058 3.75 % Callable Promissory Note 6,881 — — 6,137 6,137 4.55 % Promissory Note 4,963 — — 4,610 4,610 Total long-term debt $ 211,650 $ — $ 154,915 $ 18,805 $ 173,720 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2021 Financial Liabilities: Revolving credit facility $ 15,000 $ — $ 15,000 $ — $ 15,000 Long-term debt: 4.25 % Convertible Senior Notes $ 23,885 $ — $ 33,248 $ — $ 33,248 3.90 % Promissory Note 9,287 — — 10,488 10,488 3.75 % Callable Promissory Note 7,153 — — 7,852 7,852 4.55 % Promissory Note 5,148 — — 6,051 6,051 Total long-term debt $ 45,473 $ — $ 33,248 $ 24,391 $ 57,639 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets, Net | The Company’s intangible assets, net consist of the following: September 30, December 31, 2022 2021 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 4,215 4,215 Policy renewal rights - United 12,384 7,634 Non-compete agreements - United (b) 314 195 Total, at cost 18,674 13,805 Less: accumulated amortization ( 5,023 ) ( 3,169 ) Intangible assets, net $ 13,651 $ 10,636 (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. |
Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets | The remaining weighted-average amortization periods for the intangible assets at September 30, 2022 are summarized in the table below: Anchor tenant relationships 11.7 years In-place leases 9.8 years Policy renewal rights - United 3.6 years |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: September 30, December 31, 2022 2021 Benefits receivable related to retrospective reinsurance contracts $ 14,781 $ 3,064 Reimbursement receivable under TPA service 801 3,525 Prepaid expenses 3,384 2,853 Deposits 3,592 406 Lease acquisition costs, net 665 505 Other 3,382 4,364 Total other assets $ 26,605 $ 14,717 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: September 30, December 31, 2022 2021 4.75 % Convertible Senior Notes, due June 1, 2042 $ 172,500 $ — 4.25 % Convertible Senior Notes, due March 1, 2037 23,916 23,916 3.90 % Promissory Note, due through April 1, 2032 9,163 9,431 3.75 % Callable Promissory Note, due through September 1, 2036 6,966 7,246 4.55 % Promissory Note, due through August 1, 2036 5,033 5,225 Finance lease liabilities, due through October 15, 2024 17 31 Total principal amount 217,595 45,849 Less: unamortized issuance costs ( 5,928 ) ( 345 ) Total long-term debt $ 211,667 $ 45,504 |
Summary of Future Maturities of Long-Term Debt | The following table summarizes future maturities of long-term debt as of September 30, 2022 , which takes into consideration the assumption that the 4.75 % Convertible Senior Notes and 4.25 % Convertible Senior Notes are repurchased at their respective next earliest call dates: Due in 12 months following September 30, 2022 $ 1,036 2023 1,065 2024 1,106 2025 1,151 2026 197,615 Thereafter 15,622 Total $ 217,595 |
Schedule of Interest Expense Related to Long-Term Debt | Information with respect to interest expense related to long-term debt is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest Expense: Contractual interest $ 2,516 $ 1,421 $ 4,322 $ 4,832 Non-cash expense (a) 272 219 431 758 Total $ 2,788 $ 1,640 $ 4,753 $ 5,590 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Impact of the Reinsurance Contracts on Premiums Written and Earned | The impact of the reinsurance contracts on premiums written and earned is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Premiums Written: Direct $ 182,039 $ 143,426 $ 541,812 $ 396,781 Assumed 9,142 30,840 12,815 88,311 Gross written 191,181 174,266 554,627 485,092 Ceded ( 74,741 ) ( 55,577 ) ( 184,108 ) ( 145,112 ) Net premiums written $ 116,440 $ 118,689 $ 370,519 $ 339,980 Premiums Earned: Direct $ 166,116 $ 120,763 $ 479,849 $ 346,788 Assumed 15,597 29,046 61,913 73,403 Gross earned 181,713 149,809 541,762 420,191 Ceded ( 74,741 ) ( 55,577 ) ( 184,108 ) ( 145,112 ) Net premiums earned $ 106,972 $ 94,232 $ 357,654 $ 275,079 |
Losses and Loss Adjustment Ex_2
Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for losses and LAE is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net balance, beginning of period* $ 196,414 $ 154,901 $ 172,410 $ 141,065 Incurred, net of reinsurance, related to: Current period 126,486 53,834 275,010 147,064 Prior period 13,308 8,830 24,318 17,268 Total incurred, net of reinsurance 139,794 62,664 299,328 164,332 Paid, net of reinsurance, related to: Current period ( 45,732 ) ( 31,663 ) ( 102,155 ) ( 59,265 ) Prior period ( 27,489 ) ( 22,237 ) ( 106,596 ) ( 82,467 ) Total paid, net of reinsurance ( 73,221 ) ( 53,900 ) ( 208,751 ) ( 141,732 ) Net balance, end of period 262,987 163,665 262,987 163,665 Add: reinsurance recoverable before allowance for 938,855 39,512 938,855 39,512 Gross balance, end of period $ 1,201,842 $ 203,177 $ 1,201,842 $ 203,177 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Information Reconciled to Consolidated Statements of Income | The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2022 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 104,671 $ 82,728 $ — $ — $ ( 5,686 ) $ 181,713 Premiums ceded ( 46,157 ) ( 33,236 ) — — 4,652 ( 74,741 ) Net premiums earned 58,514 49,492 — — ( 1,034 ) 106,972 Net income from investment portfolio 1,143 1,144 — 1,338 13,674 17,299 Policy fee income 613 458 — — — 1,071 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Other 1,246 512 2,785 717 ( 3,948 ) 1,312 Total revenue 61,516 51,606 16,187 2,055 ( 4,710 ) 126,654 Expenses: Losses and loss adjustment expenses 73,228 62,153 — — 4,413 139,794 Amortization of deferred policy acquisition costs 11,333 12,176 — — — 23,509 Other policy acquisition expenses 748 450 — — ( 29 ) 1,169 Stock-based compensation expense 1,049 869 — 2,212 — 4,130 Interest expense — 222 221 2,591 ( 221 ) 2,813 Depreciation and amortization 166 865 651 186 ( 596 ) 1,272 Personnel and other operating expenses 14,240 8,497 1,583 1,526 ( 8,277 ) 17,569 Total expenses 100,764 85,232 2,455 6,515 ( 4,710 ) 190,256 (Loss) income before income taxes $ ( 39,248 ) $ ( 33,626 ) $ 13,732 $ ( 4,460 ) $ — $ ( 63,602 ) Total revenue from non-affiliates (d) $ 55,801 $ 55,803 $ 15,848 $ 1,440 Gross premiums written $ 119,400 $ 71,781 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 98,256 $ 51,553 $ — $ — $ — $ 149,809 Premiums ceded ( 36,955 ) ( 20,135 ) — — 1,513 ( 55,577 ) Net premiums earned 61,301 31,418 — — 1,513 94,232 Net income from investment portfolio 831 102 — 172 778 1,883 Policy fee income 693 307 — — — 1,000 Other 2,087 480 2,336 489 ( 3,290 ) 2,102 Total revenue 64,912 32,307 2,336 661 ( 999 ) 99,217 Expenses: Losses and loss adjustment expenses 36,928 24,224 — — 1,512 62,664 Amortization of deferred policy acquisition costs 12,402 9,250 — — — 21,652 Other policy acquisition expenses 633 1,110 — — ( 55 ) 1,688 Stock-based compensation expense 662 471 — 1,599 — 2,732 Interest expense — 1 231 1,432 — 1,664 Depreciation and amortization 18 342 576 171 ( 603 ) 504 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 5,234 7,214 814 2,135 ( 1,853 ) 13,544 Total expenses 55,877 42,612 1,621 6,610 ( 999 ) 105,721 Income (loss) before income taxes $ 9,035 $ ( 10,305 ) $ 715 $ ( 5,949 ) $ — $ ( 6,504 ) Total revenue from non-affiliates (c) $ 65,629 $ 32,701 $ 1,997 $ 402 Gross premiums written $ 118,280 $ 55,987 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2022 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 339,612 $ 210,793 $ — $ — $ ( 8,643 ) $ 541,762 Premiums ceded ( 120,089 ) ( 70,798 ) — — 6,779 ( 184,108 ) Net premiums earned 219,523 139,995 — — ( 1,864 ) 357,654 Net (loss) income from investment portfolio ( 1,760 ) 1,411 — 426 15,644 15,721 Policy fee income 1,895 1,285 — — — 3,180 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Other 2,907 1,513 7,953 3,025 ( 12,333 ) 3,065 Total revenue 222,565 144,204 21,355 3,451 ( 11,955 ) 379,620 Expenses: Losses and loss adjustment expenses 165,915 129,833 — — 3,580 299,328 Amortization of deferred policy acquisition costs 46,339 31,403 — — — 77,742 Other policy acquisition expenses 2,090 1,230 — — ( 113 ) 3,207 Stock-based compensation expense 3,380 2,651 — 6,678 — 12,709 Interest expense — 633 672 4,256 ( 632 ) 4,929 Depreciation and amortization 433 2,200 1,862 660 ( 1,819 ) 3,336 Personnel and other operating expenses 29,296 24,516 3,516 5,173 ( 12,971 ) 49,530 Total expenses 247,453 192,466 6,050 16,767 ( 11,955 ) 450,781 (Loss) income before income taxes $ ( 24,888 ) $ ( 48,262 ) $ 15,305 $ ( 13,316 ) $ — $ ( 71,161 ) Total revenue from non-affiliates (d) $ 213,810 $ 149,635 $ 20,339 $ 1,530 Gross premiums written $ 323,680 $ 230,947 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 300,827 $ 119,364 $ — $ — $ — $ 420,191 Premiums ceded ( 104,236 ) ( 42,229 ) — — 1,353 ( 145,112 ) Net premiums earned 196,591 77,135 — — 1,353 275,079 Net income from investment portfolio 5,261 933 — 4,059 3,799 14,052 Policy fee income 2,106 856 — — — 2,962 Other 3,420 1,130 9,849 1,316 ( 12,213 ) 3,502 Total revenue 207,378 80,054 9,849 5,375 ( 7,061 ) 295,595 Expenses: Losses and loss adjustment expenses 110,008 52,976 — — 1,348 164,332 Amortization of deferred policy acquisition costs 43,906 20,541 — — — 64,447 Other policy acquisition expenses 2,170 3,071 — — ( 114 ) 5,127 Stock-based compensation expense 2,360 2,438 — 4,431 — 9,229 Interest expense — 91 972 4,950 ( 270 ) 5,743 Depreciation and amortization 56 942 1,737 711 ( 1,841 ) 1,605 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 14,957 18,569 3,332 4,470 ( 6,184 ) 35,144 Total expenses 173,457 98,628 6,041 15,835 ( 7,061 ) 286,900 Income (loss) before income taxes $ 33,921 $ ( 18,574 ) $ 3,808 $ ( 10,460 ) $ — $ 8,695 Total revenue from non-affiliates (c) $ 206,743 $ 80,893 $ 8,833 $ 4,641 Gross premiums written $ 323,490 $ 161,602 (a) Other revenue under real estate primarily consisted of rental income from investment properties . (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
Summary of Segment Assets Reconciled to Consolidated Balance Sheet | The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets: September 30, December 31, 2022 2021 Segments: HCPCI Insurance Operations $ 1,141,660 $ 676,509 TypTap Group 813,543 369,600 Real Estate Operations 125,992 127,651 Corporate and Other 159,569 65,349 Consolidation and Elimination ( 96,021 ) ( 62,252 ) Total assets $ 2,144,743 $ 1,176,857 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Leases [Abstract] | |
Disclosure of right-of-use assets and liabilities for operating and finance leases | The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases: September 30, December 31, 2022 2021 Operating leases: ROU assets $ 1,597 $ 2,204 Liabilities $ 1,539 $ 2,203 Finance leases: ROU assets $ 80 $ 86 Liabilities $ 17 $ 31 |
Disclosure of operating and finance leases of lessee | The following table summarizes the Company’s operating and finance leases in which the Company is a lessee: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office equipment 1 to 51 months Yes (a), (b) Office space 3 to 9 years Yes (b), (c) Finance lease: Office equipment 3 to 5 years Not applicable (d) (a) At the end of the lease term, the Company can purchase the equipment at fair market value. (b) There are no variable lease payments. (c) Rent escalation provisions exist. (d) There is a bargain purchase option. |
Disclosure of lease liabilities maturities | As of September 30, 2022, maturities of lease liabilities were as follows: Leases Operating Finance Due in 12 months following September 30, 2022 $ 917 $ 15 2023 92 2 2024 96 — 2025 101 — 2026 106 — Thereafter 393 — Total lease payments 1,705 17 Less: interest 166 — Total lease obligations $ 1,539 $ 17 |
Disclosure of quantitative information of operating and finance leases | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Lease costs: Finance lease costs: Amortization – ROU assets* $ 4 $ 4 $ 14 $ 13 Interest expense — — — 1 Operating lease costs* 281 386 937 1,231 Short-term lease costs* 105 100 306 250 Total lease costs $ 390 $ 490 $ 1,257 $ 1,495 Cash paid for amounts included in the Operating cash flows – finance leases $ — $ 1 Operating cash flows – operating leases $ 924 $ 1,237 Financing cash flows – finance leases $ 14 $ 14 September 30, 2022 Weighted-average remaining lease term: Finance leases (in years) 1.3 Operating leases (in years) 4.3 Weighted-average discount rate: Finance leases (%) 3.4 % Operating leases (%) 4.0 % |
Disclosure of operating leases of lessor entity | The following table summarizes the Company’s operating leases in which the Company is a lessor: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office space 1 to 3 years Yes (e) Retail space 3 to 20 years Yes (e) Boat docks/wet slips 1 to 12 months Yes (e) (e) There are no purchase options. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Loss Shares (a) Per Share Loss Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net loss $ ( 51,503 ) $ ( 4,868 ) Less: Net income attributable to redeemable ( 2,285 ) ( 2,202 ) Less: TypTap Group’s net loss attributable 2,829 774 Net loss attributable to HCI ( 50,959 ) ( 6,296 ) Less: Loss attributable to participating 3,289 537 Basic Loss Per Share: Loss allocated to common stockholders ( 47,670 ) 8,427 $ ( 5.66 ) ( 5,759 ) 8,023 $ ( 0.72 ) Effect of Dilutive Securities: * Stock options — — — — Convertible senior notes — — — — Warrants — — — — Diluted Loss Per Share: Loss available to common stockholders and $ ( 47,670 ) 8,427 $ ( 5.66 ) $ ( 5,759 ) 8,023 $ ( 0.72 ) (a) Shares in thousands. * For the three months ended September 30, 2022 and 2021, respectively, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Loss Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net (loss) income $ ( 57,254 ) $ 5,807 Less: Net income attributable to redeemable ( 6,801 ) ( 5,175 ) Less: TypTap Group’s net loss attributable 4,018 1,191 Net (loss) income attributable to HCI ( 60,037 ) 1,823 Less: Loss (income) attributable to 3,855 ( 37 ) Basic (Loss) Earnings Per Share: (Loss) income allocated to common ( 56,182 ) 8,972 $ ( 6.26 ) 1,786 7,676 $ 0.23 Effect of Dilutive Securities: * Stock options — — — 182 Convertible senior notes — — — — Warrants — — — 234 Diluted (Loss) Earnings Per Share: (Loss) income available to common $ ( 56,182 ) 8,972 $ ( 6.26 ) $ 1,786 8,092 $ 0.22 (a) Shares in thousands. * For the nine months ended September 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. For the nine months ended September 30, 2021, convertible senior notes were excluded due to anti-dilutive effect. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Summary of Activity of Redeemable Noncontrolling Interest | The following table summarizes the activity of redeemable noncontrolling interest during the nine months ended September 30, 2022 and 2021: 2022 2021 Balance at January 1 $ 89,955 $ — Initial proceeds from Centerbridge — 100,000 Increase (decrease): Proceeds allocated to warrants* — ( 9,217 ) Issuance costs — ( 6,262 ) Issuance costs allocated to warrants* — 577 Accrued cash dividends 1,342 458 Accretion - increasing dividend rates 906 336 Dividends paid ( 2,508 ) — Balance at March 31 $ 89,695 $ 85,892 Increase (decrease): Accrued cash dividends 1,500 1,250 Accretion - increasing dividend rates 768 929 Balance at June 30 $ 91,963 $ 88,071 Increase (decrease): Accrued cash dividends 1,499 1,250 Accretion - increasing dividend rates 786 952 Dividends paid ( 3,000 ) ( 2,542 ) Balance at September 30 $ 91,248 $ 87,731 *Net decrease related to warrants of $ 8,640 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the three and nine months ended September 30, 2022 and 2021 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2022 440,000 $ 45.25 6.6 years $ 18,119 Outstanding at March 31, 2022 440,000 $ 45.25 6.3 years $ 10,494 Outstanding at June 30, 2022 440,000 $ 45.25 6.1 years $ 9,354 Outstanding at September 30, 2022 440,000 $ 45.25 5.8 years $ 117 Exercisable at September 30, 2022 357,500 $ 44.23 5.5 years $ 117 Outstanding at January 1, 2021 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at March 31, 2021 440,000 $ 45.25 7.3 years $ 13,464 Outstanding at June 30, 2021 440,000 $ 45.25 7.1 years $ 23,883 Outstanding at September 30, 2021 440,000 $ 45.25 6.8 years $ 29,238 Exercisable at September 30, 2021 275,000 $ 43.40 6.3 years $ 18,782 |
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2022 and 2021 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2022 679,997 $ 39.72 Granted 4,000 $ 70.58 Vested ( 50,667 ) $ 50.68 Forfeited ( 3,265 ) $ 45.85 Nonvested at March 31, 2022 630,065 $ 39.00 Granted 3,000 $ 67.30 Vested ( 51,125 ) $ 45.04 Forfeited ( 700 ) $ 45.61 Nonvested at June 30, 2022 581,240 $ 38.61 Forfeited ( 1,665 ) $ 45.56 Nonvested at September 30, 2022 579,575 $ 38.59 Nonvested at January 1, 2021 423,787 $ 43.79 Granted 548,086 $ 36.95 Vested ( 41,250 ) $ 42.18 Cancelled ( 141,600 ) $ 43.76 Forfeited ( 2,050 ) $ 45.67 Nonvested at March 31, 2021 786,973 $ 39.11 Granted 3,000 $ 76.00 Vested ( 68,541 ) $ 43.80 Cancelled ( 1,160 ) $ 45.96 Forfeited ( 9,060 ) $ 46.44 Nonvested at June 30, 2021 711,212 $ 38.71 Granted 2,340 $ 96.60 Forfeited ( 38,855 ) $ 38.05 Nonvested at September 30, 2021 674,697 $ 38.95 |
Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock | The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2022 and 2021. Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Deferred tax benefits recognized $ 230 $ 420 $ 1,521 $ 879 Tax benefits realized for restricted stock and $ 56 $ 70 $ 1,360 $ 1,482 Fair value of vested restricted stock $ — $ — $ 4,871 $ 4,742 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer | The table below represents the future minimum aggregate premium amounts payable to the reinsurer. Due in 12 months following September 30, 2022 $ 91,350 2023 91,350 Total $ 182,700 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | May 31, 2022 | Sep. 30, 2022 | May 31, 2023 | Jun. 01, 2022 | Dec. 31, 2021 | |
Nature Of Operations [Line Items] | ||||||
Commission percentage on aggregate replacement premium | 6% | |||||
Unpaid losses and loss adjustments allowance | $ 451 | $ 451 | $ 90 | |||
Hurricane [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Net increase in premiums ceded | 12,600 | |||||
Unpaid losses and loss adjustments allowance | 399 | 399 | ||||
Preliminary gross loss estimated | 970,000 | |||||
Preliminary net loss estimated | $ 65,000 | 65,000 | ||||
HCPCI [Member] | Hurricane [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Preliminary gross loss estimated | 550,518 | |||||
TypTap [Member] | Hurricane [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Preliminary gross loss estimated | $ 419,482 | |||||
United [Member] | Renewal Rights Agreement [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Commission percentage on aggregate replacement premium | 6% | |||||
United [Member] | Renewal Rights Agreement [Member] | Maximum [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Aggregate ceding commission | $ 6,000 | |||||
United [Member] | 85% Quota Share Reinsurance [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Quota share reinsurance percentage | 85% | |||||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 25% | |||||
Rate of Cost Allowance | 9% | |||||
United [Member] | 100% Quota Share Reinsurance [Member] | ||||||
Nature Of Operations [Line Items] | ||||||
Quota share reinsurance percentage | 100% | |||||
Deferred policy acquisition costs, percentage of ceding commission of premium | 16% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Other | $ 1,312 | $ 2,102 | $ 3,065 | $ 3,502 | |
Other assets | 26,605 | 26,605 | $ 14,717 | ||
Claims handling services | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Other | 903 | $ 1,709 | 2,282 | $ 1,916 | |
Other assets | $ 1,418 | $ 1,418 | $ 314 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Summary of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 355,699 | $ 628,943 |
Restricted cash | 2,900 | 2,400 |
Total | $ 358,599 | $ 631,343 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | $ 371,877 | $ 41,953 | ||||||
Allowance for Credit Loss | 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ (579) | $ (588) |
Fixed-maturity securities, Gross Unrealized Gain | 4 | 789 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (11,242) | (159) | ||||||
Fixed-maturity securities, Estimated Fair Value | 360,639 | 42,583 | ||||||
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 339,666 | 17,046 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 1 | 64 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (9,814) | (86) | ||||||
Fixed-maturity securities, Estimated Fair Value | 329,853 | 17,024 | ||||||
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 29,642 | 21,913 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 632 | |||||||
Fixed-maturity securities, Gross Unrealized Loss | (1,410) | (53) | ||||||
Fixed-maturity securities, Estimated Fair Value | 28,232 | 22,492 | ||||||
Fixed-Maturity Securities [Member] | States, Municipalities, and Political Subdivisions [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 1,762 | 1,759 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 49 | |||||||
Fixed-maturity securities, Gross Unrealized Loss | (11) | |||||||
Fixed-maturity securities, Estimated Fair Value | 1,751 | 1,808 | ||||||
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 700 | 767 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 3 | 44 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (2) | |||||||
Fixed-maturity securities, Estimated Fair Value | 701 | 811 | ||||||
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 107 | 468 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 0 | |||||||
Fixed-maturity securities, Gross Unrealized Loss | (5) | (20) | ||||||
Fixed-maturity securities, Estimated Fair Value | $ 102 | $ 448 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 124,676 | $ 10,734 |
Due after one year through five years, Cost or Amortized Cost | 242,499 | 19,222 |
Due after five years through ten years, Cost or Amortized Cost | 4,208 | 11,503 |
Due after ten years, Cost or Amortized Cost | 494 | 494 |
Fixed-maturity securities, Cost or Amortized Cost | 371,877 | 41,953 |
Due in one year or less, Estimated Fair Value | 124,402 | 10,826 |
Due after one year through five years, Estimated Fair Value | 232,166 | 19,820 |
Due after five years through ten years, Estimated Fair Value | 3,577 | 11,403 |
Due after ten years, Estimated Fair Value | 494 | 534 |
Estimated Fair Value Total | $ 360,639 | $ 42,583 |
Investments - Summary of Sales
Investments - Summary of Sales of Available-for-sale Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 11,694 | $ 18,838 | ||
Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 200 | $ 4,158 | 11,694 | 18,838 |
Gross Realized Gains | 0 | 94 | 13 | 671 |
Gross Realized Losses | $ (5) | $ (6) | $ (439) | $ (6) |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (10,859) | $ (146) |
Estimated Fair Value, Less than Twelve Months | 353,960 | 14,703 |
Gross Unrealized Loss, Twelve Months or Longer | (383) | (13) |
Estimated Fair Value, Twelve Months or Longer | 3,518 | 616 |
Gross Unrealized Loss, Total | (11,242) | (159) |
Estimated Fair Value, Total | 357,478 | 15,319 |
U.S. Treasury and U.S. Government Agencies [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (9,677) | (73) |
Estimated Fair Value, Less than Twelve Months | 324,643 | 9,809 |
Gross Unrealized Loss, Twelve Months or Longer | (137) | (13) |
Estimated Fair Value, Twelve Months or Longer | 2,233 | 616 |
Gross Unrealized Loss, Total | (9,814) | (86) |
Estimated Fair Value, Total | 326,876 | 10,425 |
Corporate Bonds [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1,164) | (53) |
Estimated Fair Value, Less than Twelve Months | 26,947 | 4,452 |
Gross Unrealized Loss, Twelve Months or Longer | (246) | 0 |
Estimated Fair Value, Twelve Months or Longer | 1,285 | 0 |
Gross Unrealized Loss, Total | (1,410) | (53) |
Estimated Fair Value, Total | 28,232 | 4,452 |
Exchange-Traded Debt [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (2) | |
Estimated Fair Value, Less than Twelve Months | 517 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (2) | |
Estimated Fair Value, Total | 517 | |
Redeemable Preferred Stock [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (5) | (20) |
Estimated Fair Value, Less than Twelve Months | 102 | 442 |
Gross Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Estimated Fair Value, Twelve Months or Longer | 0 | 0 |
Gross Unrealized Loss, Total | (5) | (20) |
Estimated Fair Value, Total | 102 | $ 442 |
States, Municipalities, and Political Subdivisions [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (11) | |
Estimated Fair Value, Less than Twelve Months | 1,751 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (11) | |
Estimated Fair Value, Total | $ 1,751 |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) - Security | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities in an unrealized loss position | 88 | 23 |
Investments - Summary of Allowa
Investments - Summary of Allowance for Credit Losses of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Beginning Balance | $ 0 | $ 0 | $ 579 | $ 588 |
Reductions for securities sold | 0 | (9) | ||
Reductions for securities exchanged | 0 | (579) | ||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 579 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 36,639 | $ 46,276 |
Gross Unrealized Gain | 1,873 | 6,335 |
Gross Unrealized Loss | (4,566) | (871) |
Estimated Fair Value | $ 33,946 | $ 51,740 |
Investments - Summary of Unreal
Investments - Summary of Unrealized Gains and Losses in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Gain (Loss) on Securities [Line Items] | ||||
Net unrealized losses recognized | $ (347) | $ (1,869) | $ (8,157) | $ (649) |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net (losses) gains recognized | (1,279) | (916) | (9,144) | 2,620 |
Exclude: Net realized (losses) gains recognized for securities sold | $ (932) | $ 953 | $ (987) | $ 3,269 |
Investments - Summary of Procee
Investments - Summary of Proceeds Received and The Gross Realized Gains and Losses From Sales of Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Proceeds | $ 29,316 | $ 81,292 | ||
Equity Securities [Member] | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Proceeds | $ 4,889 | $ 24,781 | 29,316 | 81,292 |
Gross Realized Gains | 135 | 1,141 | 1,988 | 4,266 |
Gross Realized Losses | $ (1,067) | $ (188) | $ (2,975) | $ (997) |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | ||
Investment Securities [Line Items] | |||
Carrying Value | $ 25,405 | $ 28,133 | |
Unfunded Balance | 6,262 | 11,073 | |
Private US Lower Middle Market Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [1],[2],[3] | 4,120 | 6,076 |
Unfunded Balance | [1],[2],[3] | $ 0 | $ 2,085 |
Percentage investment held by the entity | [1],[2],[3],[4] | 15.37% | 15.37% |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [1],[2],[5] | $ 3,312 | $ 3,423 |
Unfunded Balance | [1],[2],[5] | $ 0 | $ 0 |
Percentage investment held by the entity | [1],[2],[4],[5] | 1.67% | 1.69% |
Power Utility and Energy Industries and Infrastructure [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[6],[7] | $ 4,421 | $ 6,270 |
Unfunded Balance | [2],[6],[7] | $ 0 | $ 1,401 |
Percentage investment held by the entity | [2],[4],[6],[7] | 0.18% | 0.18% |
Senior and Junior Debts of Private Equity-Backed Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[8],[9] | $ 3,757 | $ 4,437 |
Unfunded Balance | [2],[8],[9] | $ 0 | $ 0 |
Percentage investment held by the entity | [2],[4],[8],[9] | 0.57% | 0.57% |
Mature Real Estate Private Equity Funds And Portfolios Globally [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[10] | $ 7,103 | $ 5,977 |
Unfunded Balance | [2],[10] | $ 3,633 | $ 4,537 |
Percentage investment held by the entity | [2],[4],[10] | 1.32% | 1.36% |
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[11] | $ 2,692 | $ 1,950 |
Unfunded Balance | [2],[11] | $ 2,629 | $ 3,050 |
Percentage investment held by the entity | [2],[4],[11] | 1.07% | 0.47% |
[1] At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. Represents the Company’s percentage investment in the fund at each balance sheet date. The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances. Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. The capital commitment period has ended but an additional funding may be requested. The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. |
Investments - Schedule of Com_2
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Private US Lower Middle Market Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 10 years |
Expected term | 2 years |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | |
Schedule Of Investments [Line Items] | |
Investment additional maturity term | 2 years |
Maturity date | Jun. 30, 2023 |
Power Utility and Energy Industries and Infrastructure [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 10 years |
Investment additional maturity term | 3 years |
Senior and Junior Debts of Private Equity-Backed Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 8 years |
Investment additional maturity term | 2 years |
Mature Real Estate Private Equity Funds And Portfolios Globally [Member] | |
Schedule Of Investments [Line Items] | |
Maturity date | Nov. 27, 2027 |
Investment additional maturity term | 2 years |
Investment additional maturity term | 4 years |
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 8 years |
Investment additional maturity term | 1 year |
Investment additional maturity term | 2 years |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Limited Partnerships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Total income | $ 126,654 | $ 99,217 | $ 379,620 | $ 295,595 | |
Net (loss) income | (51,503) | (4,868) | (57,254) | 5,807 | |
Balance sheet: | |||||
Total assets | 2,144,743 | 2,144,743 | $ 1,176,857 | ||
Total liabilities | 1,880,321 | 1,880,321 | 762,399 | ||
Limited Partnership [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Total income | 208,468 | (13,796) | 724,413 | 359,885 | |
Total expenses | (45,537) | (24,828) | (117,877) | (105,548) | |
Net (loss) income | 162,931 | $ (38,624) | 606,536 | $ 254,337 | |
Balance sheet: | |||||
Total assets | 5,488,857 | 5,488,857 | 5,855,616 | ||
Total liabilities | $ 409,604 | $ 409,604 | $ 564,732 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Investments [Line Items] | |||||
Recognized investment income (loss) | $ 3,064 | $ 3,491 | |||
Return on investment | 2,417 | 2,345 | |||
Limited Partnership [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Recognized investment income (loss) | $ 1,265 | $ 1,132 | 3,064 | 3,491 | |
Cash distributions | 2,768 | 1,535 | 7,149 | 5,980 | |
Return on investment | 371 | $ 553 | 2,417 | $ 2,345 | |
Company's net cumulative contributed capital to the partnership | 24,996 | 24,996 | $ 28,371 | ||
Maximum exposure loss relating to VIE | $ 25,405 | $ 25,405 | $ 28,133 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Investments [Line Items] | ||||||
Return on investment | $ 2,417 | $ 2,345 | ||||
Return on investment | 489 | 114 | ||||
FMKT Mel JV, LLC [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Maximum exposure loss relating to VIE | $ 18 | 18 | $ 363 | |||
Undistributed gain (loss) after equity distribution | 0 | 0 | $ 0 | |||
Return on investment | 489 | $ 114 | 489 | 114 | ||
Gain on sale | $ 572 | |||||
Cash distributions | $ 840 | $ 737 | $ 840 | $ 737 |
Investments - Summary of Unau_2
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Operating results: | ||||||
Total revenues | $ 126,654 | $ 99,217 | $ 379,620 | $ 295,595 | ||
Net income | (51,503) | (4,868) | (57,254) | 5,807 | ||
The Company's share of net income* | 495 | 423 | ||||
Balance sheet: | ||||||
Other | 26,605 | 26,605 | $ 14,717 | |||
Total assets | 2,144,743 | 2,144,743 | 1,176,857 | |||
Other liabilities | 33,453 | 33,453 | 31,485 | |||
Total liabilities, redeemable noncontrolling interest and equity | 2,144,743 | 2,144,743 | 1,176,857 | |||
Investment in unconsolidated joint venture, at equity | [1] | 18 | 18 | 363 | ||
Unconsolidated Joint Venture [Member] | ||||||
Balance sheet: | ||||||
Property and equipment, net | 0 | 0 | 357 | |||
Cash | 2 | 2 | 29 | |||
Other | 18 | 18 | 18 | |||
Total assets | 20 | 20 | 404 | |||
Total members capital | 20 | 20 | $ 404 | |||
Unconsolidated Joint Venture [Member] | FMKT Mel JV, LLC [Member] | ||||||
Operating results: | ||||||
Total revenues | 0 | 540 | 572 | 540 | ||
Total expenses | 0 | (14) | (22) | (70) | ||
Net income | 0 | 526 | 550 | 470 | ||
Investment Income (Expense) [Member] | FMKT Mel JV, LLC [Member] | ||||||
Operating results: | ||||||
The Company's share of net income* | [2] | $ 0 | $ 473 | $ 495 | $ 423 | |
[1] Includes the 90 % share of FMKT Mel JV’s operating results. Included in net investment income in the Company’s consolidated statements of income. |
Investments - Summary of Unau_3
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Joint Venture [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of operating results | 90% |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 38,327 | $ 39,720 |
Land improvements | 12,138 | 11,917 |
Buildings and building improvements | 29,410 | 29,405 |
Tenant and leasehold improvements | 1,554 | 1,511 |
Other | 1,462 | 1,265 |
Total, at cost | 82,891 | 83,818 |
Less: accumulated depreciation and amortization | (11,391) | (9,922) |
Real estate investments | $ 71,500 | $ 73,896 |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2022 USD ($) a | May 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Schedule Of Investments [Line Items] | ||||||
Proceeds from sales of real estate investments | $ 667 | $ 0 | ||||
Depreciation and amortization expenses under real estate investments | $ 1,272 | $ 504 | 3,336 | 1,605 | ||
Real Estate Investments [Member] | ||||||
Schedule Of Investments [Line Items] | ||||||
Proceeds from sales of real estate investments | $ 667 | |||||
Depreciation and amortization expenses under real estate investments | 480 | $ 475 | $ 1,469 | $ 1,445 | ||
Area of land sell | a | 1.5 | |||||
Proceeds from sale of land | $ 14,500 | $ 14,500 |
Investments - Investment Income
Investments - Investment Income (Loss) Summarized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Investments [Line Items] | ||||
Recognized investment income | $ 3,064 | $ 3,491 | ||
Real estate investments | $ 13,897 | $ 305 | 15,782 | 3,646 |
Net investment income | 18,530 | 2,520 | 25,082 | 9,749 |
Available-for-Sale-Fixed-Maturity Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 2,125 | 266 | 3,710 | 1,091 |
Equity Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 288 | 322 | 875 | 1,013 |
Limited Partnership Investment [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Recognized investment income | 1,265 | 1,132 | 3,064 | 3,491 |
Cash and Cash Equivalents [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 1,072 | 156 | 1,523 | 473 |
Investment Expense [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment expense | (117) | (134) | (367) | (388) |
Net income (loss) from unconsolidated joint venture [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | $ 0 | $ 473 | $ 495 | $ 423 |
Investments (Investment Income
Investments (Investment Income (Loss) Summarized) - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2022 USD ($) a | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Net Investment Income [Line Items] | ||||
Net gain from legal settlement of real estate investments | $ 2,790 | |||
Gain on sale of investment real estate | $ 376 | 0 | ||
Gain (loss) on involuntary conversions | 13,402 | $ 0 | ||
Real Estate Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gain (loss) on involuntary conversions | $ 13,402 | |||
Gain on sale of liquor license | $ 451 | |||
Area of land sell | a | 1.5 | |||
Proceeds from sale of land | $ 14,500 | $ 14,500 |
Investments (Other Investments)
Investments (Other Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Investments [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Net realized gains | $ 53 | $ 191 | $ 209 | $ 1,018 |
Comprehensive Income (Loss) - S
Comprehensive Income (Loss) - Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Before Tax | ||||
Net unrealized losses | $ (5,969) | $ (258) | $ (12,294) | $ (341) |
Call and repayment gains charged to investment income | 0 | (2) | ||
Reclassification adjustment for net realized losses (gains) | 5 | (88) | 426 | (665) |
Total other comprehensive loss | (5,964) | (346) | (11,868) | (1,008) |
Income Tax Effect | ||||
Net unrealized losses | 1,336 | (63) | (262) | (83) |
Call and repayment gains charged to investment income | 0 | (1) | ||
Reclassification adjustment for realized losses (gains) | 1 | (22) | 108 | (163) |
Total other comprehensive loss | 1,337 | (85) | (154) | (247) |
Net of Tax | ||||
Net unrealized losses | (7,305) | (195) | (12,032) | (258) |
Call and repayment gains charged to investment income | 0 | (1) | ||
Reclassification adjustment for realized (gains) losses | 4 | (66) | 318 | (502) |
Total other comprehensive loss, net of income taxes | $ (7,301) | $ (261) | $ (11,714) | $ (761) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Money Market Funds and Certificate Of Deposit Maturity Period | 90 days |
Fair Value Measurements - Compo
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2037 |
Valuation Methodology | Quoted price |
4.75% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2042 |
Valuation Methodology | Quoted price |
3.90% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2032 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
3.75% Callable Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2036 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
4.55% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2036 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
Fair Value Measurements - Com_2
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Parenthetical) (Detail) | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | 4.25% |
4.75% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.75% | |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
3.90% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.90% | |
3.75% Callable Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.75% | |
4.55% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.55% |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Restricted cash | $ 2,900 | $ 2,400 |
Debt Securities, Available-for-Sale | 360,639 | 42,583 |
Equity Securities, FV-NI, Current | 33,946 | 51,740 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 355,699 | 628,943 |
Restricted cash | 2,900 | 2,400 |
Debt Securities, Available-for-Sale | 360,639 | 42,583 |
Equity Securities, FV-NI, Current | 33,946 | 51,740 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 355,699 | 628,943 |
Restricted cash | 2,900 | 2,400 |
Debt Securities, Available-for-Sale | 350,555 | 39,287 |
Equity Securities, FV-NI, Current | 33,946 | 51,740 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 10,084 | 3,296 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 329,853 | 17,024 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 321,520 | 15,536 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 8,333 | 1,488 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 28,232 | 22,492 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 28,232 | 22,492 |
States, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 1,751 | 1,808 |
States, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 1,751 | 1,808 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 701 | 811 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 701 | 811 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 102 | 448 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | $ 102 | $ 448 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Liabilities: | ||
Revolving credit facility | $ 0 | $ 15,000 |
Total long-term debt | 211,667 | 45,504 |
Carrying Value [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Total long-term debt | 211,650 | 45,473 |
Carrying Value [Member] | 4.75% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 166,859 | |
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 23,916 | 23,885 |
Carrying Value [Member] | 3.90% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 9,031 | 9,287 |
Carrying Value [Member] | 3.75% Callable Promissory Note | ||
Financial Liabilities: | ||
Total long-term debt | 6,881 | 7,153 |
Carrying Value [Member] | 4.55% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 4,963 | 5,148 |
Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Total long-term debt | 173,720 | 57,639 |
Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Total long-term debt | 154,915 | 33,248 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 18,805 | 24,391 |
Estimate of Fair Value Measurement [Member] | 4.75% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 134,388 | |
Estimate of Fair Value Measurement [Member] | 4.75% Convertible Senior Notes [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 134,388 | |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 20,527 | 33,248 |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 20,527 | 33,248 |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,058 | 10,488 |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 8,058 | 10,488 |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | ||
Financial Liabilities: | ||
Total long-term debt | 6,137 | 7,852 |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 6,137 | 7,852 |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 4,610 | 6,051 |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $ 4,610 | $ 6,051 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets (Parenthetical) (Detail) | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | |
4.75% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
4.25% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.25% | ||
3.90% Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 3.90% | ||
4.55% Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.55% | ||
Estimate of Fair Value Measurement [Member] | 4.75% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 3.90% | 3.90% | |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 3.75% | 3.75% | |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.55% | 4.55% |
Intangible Assets, Net - Detail
Intangible Assets, Net - Details of Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||
Total, at cost | $ 18,674 | $ 13,805 | |
Less: accumulated amortization | (5,023) | (3,169) | |
Intangible assets, net | 13,651 | 10,636 | |
Anchor Tenant Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Total, at cost | [1] | 1,761 | 1,761 |
In-Place Leases [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Total, at cost | 4,215 | 4,215 | |
Policy Renewal Rights [Member] | United [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Total, at cost | 12,384 | 7,634 | |
Non Compete Agreement [Member] | United [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Total, at cost | [2] | $ 314 | $ 195 |
[1] An anchor tenant is a tenant that attracted more customers than other tenants. $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. |
Intangible Assets, Net - Deta_2
Intangible Assets, Net - Details of Intangible Assets, Net (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 119 | $ 195 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Anchor Tenant Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 11 years 8 months 12 days |
In-Place Leases [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 9 years 9 months 18 days |
Policy Renewal Rights [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 3 years 7 months 6 days |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 18,674 | $ 13,805 | |
Commission percentage on aggregate replacement premium | 6% | ||
Contingent consideration payable | $ 1,069 | $ 2,419 | |
Renewal rights commission prepaid up-front | 3,800 | ||
Other Liabilities [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Contingent liability | 3,488 | $ 2,419 | |
Renewal Rights and Non-compete Agreement [Member] | United [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets | 4,869 | ||
Contingent consideration payable | $ 1,069 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 14,781 | $ 3,064 |
Reimbursement receivable under TPA service | 801 | 3,525 |
Prepaid expenses | 3,384 | 2,853 |
Deposits | 3,592 | 406 |
Lease acquisition costs, net | 665 | 505 |
Other | 3,382 | 4,364 |
Total other assets | $ 26,605 | $ 14,717 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||||||
Interest Expense | $ 2,813 | $ 1,664 | $ 4,929 | $ 5,743 | ||
Revolving credit facility | 0 | 0 | $ 15,000 | |||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of revolving credit facility | $ 15,000 | |||||
Interest Expense | 25 | 24 | 176 | 153 | ||
Amortization of Debt Issuance Costs | 25 | $ 25 | 74 | $ 74 | ||
Revolving credit facility | 0 | 0 | ||||
Credit facility, maximum borrowing capacity | $ 65,000 | $ 65,000 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 217,595 | $ 45,849 |
Finance Lease, Liability | 17 | 31 |
Less: unamortized issuance costs | (5,928) | (345) |
Total long-term debt | 211,667 | 45,504 |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 23,916 | 23,916 |
3.90% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 9,163 | 9,431 |
3.75% Callable Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 6,966 | 7,246 |
4.55% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 5,033 | 5,225 |
4.75% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 172,500 | $ 0 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | 4.25% |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
Debt instrument, maturity date | Mar. 01, 2037 | |
3.90% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.90% | |
Debt instrument, maturity date | Apr. 01, 2032 | |
3.75% Callable Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 3.75% | |
Debt instrument, maturity date | Sep. 01, 2036 | |
4.55% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.55% | |
Debt instrument, maturity date | Aug. 01, 2036 | |
4.75% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument stated interest rate | 4.75% | |
Debt instrument, maturity date | Jun. 01, 2042 | |
Finance Lease Liabilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Oct. 15, 2024 |
Long-Term Debt (Convertible Sen
Long-Term Debt (Convertible Senior Notes) - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 USD ($) | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2022 USD ($) TradingDay $ / shares | Sep. 30, 2021 USD ($) $ / shares | |
Debt Instrument [Line Items] | |||||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |
Cash dividends on common stock | $ / shares | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.20 | |
Debt Instrument, Principal Amount | $ 172,500 | $ 0 | |||
Convertible notes cash consideration | 0 | 1,414 | |||
Debt conversion expense | $ 0 | $ 1,273 | $ 0 | $ 1,273 | |
4.25% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument stated interest rate | 4.25% | 4.25% | |||
Convertible debt, conversion ratio | 16.5108 | ||||
Convertible debt, conversion price | $ / shares | $ 60.57 | $ 60.57 | |||
4.25% Convertible Senior Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Cash dividends on common stock | $ / shares | $ 0.35 | ||||
4.75% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument stated interest rate | 4.75% | 4.75% | |||
Convertible debt, conversion ratio | 12.4166 | ||||
Convertible debt, conversion price | $ / shares | $ 80.54 | $ 80.54 | |||
Debt Instrument, Principal Amount | $ 172,500 | ||||
Net proceeds | 166,486 | ||||
Issuance and transaction costs | $ 6,014 | ||||
Convertible debt, conversion debt description | The holders of the 4.75% Convertible Senior Notes may convert all or a portion of their convertible senior notes during specified periods prior to the maturity date as follows: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2022, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the 4.75% Convertible Senior Notes is less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; (4) if any or all of the 4.75% Convertible Senior Notes are called for redemption, at any time prior to the close of business on the business day prior to the redemption date; or (5) during either the period beginning on, and including, March 1, 2027 and ending at the close of business on the business day immediately preceding June 7, 2027, or the period beginning on, and including, March 1, 2042 and ending at the close of business on the business day immediately preceding the maturity date. | ||||
Convertible debt, threshold percentage of stock trigger price | 130% | ||||
Convertible debt, threshold percentage of stock trigger price | 98% | ||||
Convertible debt, threshold trading days | TradingDay | 20 | ||||
Convertible debt, threshold consecutive trading days | TradingDay | 30 | ||||
Debt issuance costs, remaining amortization period | 4 years 8 months 12 days | ||||
Debt instrument interest rate effective percentage till final maturity | 5% | ||||
Debt instrument interest rate effective percentage | 5.60% | 5.60% | |||
4.75% Convertible Senior Notes [Member] | Debt Instrument Redemption Period One Member | |||||
Debt Instrument [Line Items] | |||||
Debt instrument put date | Jun. 01, 2027 | ||||
4.75% Convertible Senior Notes [Member] | Debt Instrument Redemption Period Two Member | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Call Date, Earliest | Jun. 07, 2027 | ||||
Debt instrument put date | Jun. 01, 2032 | ||||
4.75% Convertible Senior Notes [Member] | Debt Instrument Redemption Period Three Member | |||||
Debt Instrument [Line Items] | |||||
Debt instrument put date | Jun. 01, 2037 | ||||
4.75% Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Five [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, convertible, conversion date | Mar. 01, 2042 | Mar. 01, 2042 | |||
Convertible debt, redemption date | Mar. 01, 2027 |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Long-Term Debt, Rolling Maturity [Abstract] | ||
2022 | $ 1,036 | |
2023 | 1,065 | |
2024 | 1,106 | |
2025 | 1,151 | |
2026 | 197,615 | |
Thereafter | 15,622 | |
Total | $ 217,595 | $ 45,849 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense Related to Long-Term Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Interest Expense, Debt [Abstract] | |||||
Contractual interest | $ 2,516 | $ 1,421 | $ 4,322 | $ 4,832 | |
Non-cash expense | [1] | 272 | 219 | 431 | 758 |
Total | $ 2,788 | $ 1,640 | $ 4,753 | $ 5,590 | |
[1] Includes amortization of debt issuance costs. |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Reinsurer | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Reinsurer | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) Reinsurer | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of ceding commission on ceded premiums written | 30% | ||||
Percentage of profit commission equal to net profit | 10% | ||||
Reinsurance recoverable | $ 952,996 | $ 952,996 | $ 76,650 | ||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 907,541 | $ 1,830 | 910,928 | $ 2,424 | |
Increase in credit loss expense | 389 | (13) | 361 | (41) | |
Allowances for credit losses related to the reinsurance recoverable balance | 451 | 451 | 90 | ||
Reduction in premiums ceded | 3,843 | 1,364 | 11,717 | 9,619 | |
Other assets | 26,605 | 26,605 | 14,717 | ||
Funds withheld for assumed business | 67,313 | 67,313 | 73,716 | ||
Assumed premiums written | 9,142 | 30,840 | 12,815 | 88,311 | |
Premiums receivable | 51,762 | 51,762 | 68,157 | ||
Reinsurance payable on paid losses and loss adjustment expenses | 3,046 | 3,046 | 4,017 | ||
Hurricane [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Net increase in premiums ceded | 12,600 | ||||
United [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Funds withheld for assumed business | 67,313 | 67,313 | 73,716 | ||
Southeast Region [Member] | United [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Assumed premiums written | 9,142 | 40,303 | |||
Cost allowance | 3,181 | ||||
Net amount receivable | 8,038 | 23,325 | |||
Premiums receivable | 12,676 | 12,676 | |||
Ceding commission payable | 2,028 | 2,028 | 8,835 | ||
Reinsurance payable on paid losses and loss adjustment expenses | 2,610 | 2,610 | |||
Northeast Regions [Member] | United [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Net amount payable | 1,301 | 1,301 | 4,486 | ||
Assumed premiums written | 0 | $ 30,840 | 27,488 | $ 88,311 | |
Premiums receivable | 66 | ||||
Ceding commission payable | 865 | 865 | 535 | ||
Reinsurance payable on paid losses and loss adjustment expenses | 436 | 436 | 4,017 | ||
Reinsurance [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Other assets | $ 14,781 | $ 14,781 | $ 3,064 | ||
Forty Five Reinsurers [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Number of reinsurers | Reinsurer | 45 | 45 | |||
Fifty Five Reinsurers [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Number of reinsurers | Reinsurer | 55 | ||||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Number of reinsurers | Reinsurer | 3 | 3 | |||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | Reinsurance [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage of gross reinsurance recoverable major reinsurers | 74.70% |
Reinsurance - Impact of the Rei
Reinsurance - Impact of the Reinsurance Contracts on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Premiums Written: | ||||||
Direct | $ 182,039 | $ 143,426 | $ 541,812 | $ 396,781 | ||
Assumed | 9,142 | 30,840 | 12,815 | 88,311 | ||
Gross written | 191,181 | 174,266 | 554,627 | 485,092 | ||
Ceded | (74,741) | (55,577) | (184,108) | (145,112) | ||
Net premiums written | 116,440 | 118,689 | 370,519 | 339,980 | ||
Premiums Earned: | ||||||
Direct | 166,116 | 120,763 | 479,849 | 346,788 | ||
Assumed | 15,597 | 29,046 | 61,913 | 73,403 | ||
Gross premiums earned | 181,713 | [1] | 149,809 | 541,762 | [2] | 420,191 |
Ceded | (74,741) | (55,577) | (184,108) | (145,112) | ||
Net premiums earned | $ 106,972 | $ 94,232 | $ 357,654 | $ 275,079 | ||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. |
Losses and Loss Adjustment Ex_3
Losses and Loss Adjustment Expenses - Losses and LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Net balance, beginning of period* | $ 196,414 | $ 154,901 | $ 172,410 | $ 141,065 | |
Incurred, net of reinsurance, related to: | |||||
Current period | 126,486 | 53,834 | 275,010 | 147,064 | |
Prior period | 13,308 | 8,830 | 24,318 | 17,268 | |
Total incurred, net of reinsurance | 139,794 | 62,664 | 299,328 | 164,332 | |
Paid, net of reinsurance, related to: | |||||
Current period | (45,732) | (31,663) | (102,155) | (59,265) | |
Prior period | (27,489) | (22,237) | (106,596) | (82,467) | |
Total paid, net of reinsurance | (73,221) | (53,900) | (208,751) | (141,732) | |
Net balance, end of period | 262,987 | 163,665 | 262,987 | 163,665 | |
Add: reinsurance recoverable before allowance for credit losses | 938,855 | 39,512 | 938,855 | 39,512 | |
Gross balance, end of period | $ 1,201,842 | $ 203,177 | $ 1,201,842 | $ 203,177 | $ 237,165 |
Losses and Loss Adjustment Ex_4
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Claims and claim adjustment expenses overall development | $ 13,308 | $ 8,830 | $ 24,318 | $ 17,268 |
Current year claims and claims adjustment expense | 126,486 | $ 53,834 | 275,010 | $ 147,064 |
Hurricane [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Preliminary net loss estimated | 65,000 | 65,000 | ||
United [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Current year claims and claims adjustment expense | 18,715 | 42,114 | ||
Accident Year 2021 and Prior [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Claims and claim adjustment expenses overall development | $ 13,308 | $ 24,318 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Number of operating divisions | 4 | ||||
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | TypTap [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 29.90% | 24% | 28.70% | 20.70% | |
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 60.50% | 73.90% | 66.60% | 76.40% | |
Assets [Member] | Segment Concentration Risk [Member] | TypTap [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 36.70% | 29.30% | |||
Assets [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 55.90% | 58.70% |
Segment Information - Summary o
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||||
Revenue: | ||||||||
Gross premiums earned | $ 181,713 | [1] | $ 149,809 | $ 541,762 | [2] | $ 420,191 | ||
Premiums ceded | (74,741) | (55,577) | (184,108) | (145,112) | ||||
Net premiums earned | 106,972 | 94,232 | 357,654 | 275,079 | ||||
Net income (loss) from investment portfolio | 17,299 | 1,883 | 15,721 | 14,052 | ||||
Policy fee income | 1,071 | 1,000 | 3,180 | 2,962 | ||||
Gain on involuntary conversions | 13,402 | 0 | ||||||
Other | 1,312 | 2,102 | 3,065 | 3,502 | ||||
Total revenue | 126,654 | 99,217 | 379,620 | 295,595 | ||||
Expenses: | ||||||||
Losses and loss adjustment expenses | 139,794 | 62,664 | 299,328 | 164,332 | ||||
Amortization of deferred policy acquisition costs | 23,509 | 21,652 | 77,742 | 64,447 | ||||
Other policy acquisition expenses | 1,169 | 1,688 | 3,207 | 5,127 | ||||
Stock-based compensation expense | 4,130 | 2,732 | 12,709 | 9,229 | ||||
Interest expense | 2,813 | 1,664 | 4,929 | 5,743 | ||||
Depreciation and amortization | 1,272 | 504 | 3,336 | 1,605 | ||||
Debt conversion expense | 0 | 1,273 | 0 | 1,273 | ||||
Personnel and other operating expenses | 17,569 | 13,544 | 49,530 | 35,144 | ||||
Total expenses | 190,256 | 105,721 | 450,781 | 286,900 | ||||
(Loss) income before income taxes | (63,602) | (6,504) | (71,161) | 8,695 | ||||
Gross premiums written | 191,181 | 174,266 | 554,627 | 485,092 | ||||
Operating Segments [Member] | HCPCI Insurance Operations [Member] | ||||||||
Revenue: | ||||||||
Gross premiums earned | 104,671 | [1] | 98,256 | 339,612 | [2] | 300,827 | ||
Premiums ceded | (46,157) | (36,955) | (120,089) | (104,236) | ||||
Net premiums earned | 58,514 | 61,301 | 219,523 | 196,591 | ||||
Net income (loss) from investment portfolio | 1,143 | 831 | (1,760) | 5,261 | ||||
Policy fee income | 613 | 693 | 1,895 | 2,106 | ||||
Other | 1,246 | 2,087 | 2,907 | 3,420 | ||||
Total revenue | 61,516 | 64,912 | 222,565 | 207,378 | ||||
Expenses: | ||||||||
Losses and loss adjustment expenses | 73,228 | 36,928 | 165,915 | 110,008 | ||||
Amortization of deferred policy acquisition costs | 11,333 | 12,402 | 46,339 | 43,906 | ||||
Other policy acquisition expenses | 748 | 633 | 2,090 | 2,170 | ||||
Stock-based compensation expense | 1,049 | 662 | 3,380 | 2,360 | ||||
Interest expense | ||||||||
Depreciation and amortization | 166 | 18 | 433 | 56 | ||||
Personnel and other operating expenses | 14,240 | 5,234 | 29,296 | 14,957 | ||||
Total expenses | 100,764 | 55,877 | 247,453 | 173,457 | ||||
(Loss) income before income taxes | (39,248) | 9,035 | (24,888) | 33,921 | ||||
Total revenue from non-affiliates | 55,801 | [3] | 65,629 | [4] | 213,810 | [5] | 206,743 | [6] |
Gross premiums written | 119,400 | 118,280 | 323,680 | 323,490 | ||||
Operating Segments [Member] | Real Estate Operations [Member] | ||||||||
Revenue: | ||||||||
Gain on involuntary conversions | 13,402 | [7] | 13,402 | [8] | ||||
Other | 2,785 | [7] | 2,336 | [9] | 7,953 | [8] | 9,849 | [10] |
Total revenue | 16,187 | [7] | 2,336 | [9] | 21,355 | [8] | 9,849 | [10] |
Expenses: | ||||||||
Interest expense | 221 | [7] | 231 | [9] | 672 | [8] | 972 | [10] |
Depreciation and amortization | 651 | [7] | 576 | [9] | 1,862 | [8] | 1,737 | [10] |
Personnel and other operating expenses | 1,583 | [7] | 814 | [9] | 3,516 | [8] | 3,332 | [10] |
Total expenses | 2,455 | [7] | 1,621 | [9] | 6,050 | [8] | 6,041 | [10] |
(Loss) income before income taxes | 13,732 | [7] | 715 | [9] | 15,305 | [8] | 3,808 | [10] |
Total revenue from non-affiliates | 15,848 | [3],[7] | 1,997 | [4],[9] | 20,339 | [5],[8] | 8,833 | [6],[10] |
Operating Segments [Member] | Corporate and Other [Member] | ||||||||
Revenue: | ||||||||
Net income (loss) from investment portfolio | 1,338 | [11] | 172 | [12] | 426 | [13] | 4,059 | [14] |
Other | 717 | [11] | 489 | [12] | 3,025 | [13] | 1,316 | [14] |
Total revenue | 2,055 | [11] | 661 | [12] | 3,451 | [13] | 5,375 | [14] |
Expenses: | ||||||||
Stock-based compensation expense | 2,212 | [11] | 1,599 | [12] | 6,678 | [13] | 4,431 | [14] |
Interest expense | 2,591 | [11] | 1,432 | [12] | 4,256 | [13] | 4,950 | [14] |
Depreciation and amortization | 186 | [11] | 171 | [12] | 660 | [13] | 711 | [14] |
Debt conversion expense | 1,273 | [12] | 1,273 | [14] | ||||
Personnel and other operating expenses | 1,526 | [11] | 2,135 | [12] | 5,173 | [13] | 4,470 | [14] |
Total expenses | 6,515 | [11] | 6,610 | [12] | 16,767 | [13] | 15,835 | [14] |
(Loss) income before income taxes | (4,460) | [11] | (5,949) | [12] | (13,316) | [13] | (10,460) | [14] |
Total revenue from non-affiliates | 1,440 | [3],[11] | 402 | [4],[12] | 1,530 | [5],[13] | 4,641 | [6],[14] |
Operating Segments [Member] | TypTap [Member] | ||||||||
Revenue: | ||||||||
Gross premiums earned | 82,728 | [1] | 51,553 | 210,793 | [2] | 119,364 | ||
Premiums ceded | (33,236) | (20,135) | (70,798) | (42,229) | ||||
Net premiums earned | 49,492 | 31,418 | 139,995 | 77,135 | ||||
Net income (loss) from investment portfolio | 1,144 | 102 | 1,411 | 933 | ||||
Policy fee income | 458 | 307 | 1,285 | 856 | ||||
Other | 512 | 480 | 1,513 | 1,130 | ||||
Total revenue | 51,606 | 32,307 | 144,204 | 80,054 | ||||
Expenses: | ||||||||
Losses and loss adjustment expenses | 62,153 | 24,224 | 129,833 | 52,976 | ||||
Amortization of deferred policy acquisition costs | 12,176 | 9,250 | 31,403 | 20,541 | ||||
Other policy acquisition expenses | 450 | 1,110 | 1,230 | 3,071 | ||||
Stock-based compensation expense | 869 | 471 | 2,651 | 2,438 | ||||
Interest expense | 222 | 1 | 633 | 91 | ||||
Depreciation and amortization | 865 | 342 | 2,200 | 942 | ||||
Personnel and other operating expenses | 8,497 | 7,214 | 24,516 | 18,569 | ||||
Total expenses | 85,232 | 42,612 | 192,466 | 98,628 | ||||
(Loss) income before income taxes | (33,626) | (10,305) | (48,262) | (18,574) | ||||
Total revenue from non-affiliates | 55,803 | [3] | 32,701 | [4] | 149,635 | [5] | 80,893 | [6] |
Gross premiums written | 71,781 | 55,987 | 230,947 | 161,602 | ||||
Intersegment Eliminations [Member] | ||||||||
Revenue: | ||||||||
Gross premiums earned | (5,686) | [1] | (8,643) | [2] | ||||
Premiums ceded | 4,652 | 1,513 | 6,779 | 1,353 | ||||
Net premiums earned | (1,034) | 1,513 | (1,864) | 1,353 | ||||
Net income (loss) from investment portfolio | 13,674 | 778 | 15,644 | 3,799 | ||||
Gain on involuntary conversions | (13,402) | (13,402) | ||||||
Other | (3,948) | (3,290) | (12,333) | (12,213) | ||||
Total revenue | (4,710) | (999) | (11,955) | (7,061) | ||||
Expenses: | ||||||||
Losses and loss adjustment expenses | 4,413 | 1,512 | 3,580 | 1,348 | ||||
Amortization of deferred policy acquisition costs | ||||||||
Other policy acquisition expenses | (29) | (55) | (113) | (114) | ||||
Stock-based compensation expense | ||||||||
Interest expense | (221) | (632) | (270) | |||||
Depreciation and amortization | (596) | (603) | (1,819) | (1,841) | ||||
Personnel and other operating expenses | (8,277) | (1,853) | (12,971) | (6,184) | ||||
Total expenses | $ (4,710) | $ (999) | $ (11,955) | $ (7,061) | ||||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. Other revenue under real estate primarily consisted of rental income from investment properties. Other revenue under real estate primarily consisted of rental income from investment properties. Other revenue under real estate primarily consisted of rental income from investment properties. Other revenue under real estate primarily consisted of rental income from investment properties Other revenue under corporate and other primarily consisted of revenue from marina business. Other revenue under corporate and other primarily consisted of revenue from marina business. Other revenue under corporate and other primarily consisted of revenue from marina business. Other revenue under corporate and other primarily consisted of revenue from marina business. |
Segment Information - Summary_2
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | $ 181,713 | [1] | $ 149,809 | $ 541,762 | [2] | $ 420,191 |
Reinsurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | 5,686 | 8,643 | ||||
HCPCI [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | $ 98,985 | $ 330,969 | ||||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 98,985 from HCPCI and $ 5,686 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 330,969 from HCPCI and $ 8,643 from a reinsurance company. |
Segment Information - Summary_3
Segment Information - Summary of Segment Assets Reconciled to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,144,743 | $ 1,176,857 |
Consolidation, Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | (96,021) | (62,252) |
HCPCI Insurance Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,141,660 | 676,509 |
Real Estate Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 125,992 | 127,651 |
Corporate and Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 159,569 | 65,349 |
TypTap [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 813,543 | $ 369,600 |
Leases - Summarizes of Right-of
Leases - Summarizes of Right-of-use Assets and Liabilities for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating leases: | ||
ROU Assets | $ 1,597 | $ 2,204 |
Lease liabilities - operating leases | $ 1,539 | $ 2,203 |
Finance leases: | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
ROU Assets | $ 80 | $ 86 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long Term Debt And Finance Lease Obligations Excluding Line Of Credit | Long Term Debt And Finance Lease Obligations Excluding Line Of Credit |
Liabilities | $ 17 | $ 31 |
Leases - Summarizes the Company
Leases - Summarizes the Company's operating and finance leases in which the Company (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Office Equipment [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office Equipment [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 month |
Finance lease: | |
Initial Term | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 51 months |
Finance lease: | |
Initial Term | 5 years |
Office space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Office space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 9 years |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 917 | |
2023 | 92 | |
2024 | 96 | |
2025 | 101 | |
2026 | 106 | |
Thereafter | 393 | |
Total lease payments | 1,705 | |
Less: interest | 166 | |
Total lease obligations | 1,539 | $ 2,203 |
2022 | 15 | |
2023 | 2 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 17 | |
Less: interest | 0 | |
Total lease obligations | $ 17 | $ 31 |
Leases -The Company's operating
Leases -The Company's operating and finance leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finance lease costs: | ||||
Amortization - ROU assets | $ 4 | $ 4 | $ 14 | $ 13 |
Interest expense | 1 | |||
Operating lease costs | 281 | 386 | 937 | 1,231 |
Short-term lease costs | 105 | 100 | 306 | 250 |
Total lease costs | $ 390 | $ 490 | 1,257 | 1,495 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows – finance leases | 1 | |||
Operating cash flows – operating leases | 924 | 1,237 | ||
Financing cash flows – finance leases | $ 14 | $ 14 | ||
Weighted-average remaining lease term: | ||||
Finance leases (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | ||
Operating leases (in years) | 4 years 3 months 18 days | 4 years 3 months 18 days | ||
Weighted-average discount rate: | ||||
Finance leases | 3.40% | 3.40% | ||
Operating leases | 4% | 4% |
Leases - Summarizes the Compa_2
Leases - Summarizes the Company's operating leases (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Office space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 year |
Office space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Retail space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Retail space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Retail space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 20 years |
Boat docks/wet slips [Member] | |
Operating lease: | |
Renewal Option | Yes |
Boat docks/wet slips [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 month |
Boat docks/wet slips [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 12 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (12,099) | $ (1,636) | $ (13,907) | $ 2,888 |
Effective tax rate | 19% | 25.20% | 19.50% | 33.20% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net (loss) income | $ (51,503) | $ (4,868) | $ (57,254) | $ 5,807 | ||||
Less: Net income attributable to redeemable noncontrolling interest | (2,285) | (2,202) | (6,801) | (5,175) | ||||
Less: TypTap Group's net loss attributable to non-HCI common stockholders and TypTap Group's participating securities | 2,829 | 774 | 4,018 | 1,191 | ||||
Net (loss) income attributable to HCI | (50,959) | (6,296) | (60,037) | 1,823 | ||||
Less: Loss (income) attributable to participating securities | 3,289 | 537 | 3,855 | (37) | ||||
Basic (Loss) Earnings Per Share: | ||||||||
(Loss) income allocated to common stockholders (Numerator) | $ (47,670) | $ (5,759) | $ (56,182) | $ 1,786 | ||||
(Loss) Income allocated to common stockholders, Shares (Denominator) | 8,427 | [1] | 8,023 | [1] | 8,972 | [2] | 7,676 | [2] |
(Loss) Income allocated to common stockholders, Per Share Amount | $ (5.66) | $ (0.72) | $ (6.26) | $ 0.23 | ||||
Diluted Earnings Per Share: | ||||||||
(Loss) income available to common stockholders and assumed conversions, Income (Numerator) | $ (47,670) | $ (5,759) | $ (56,182) | $ 1,786 | ||||
(Loss) income available to common stockholders and assumed conversions, Shares (Denominator) | 8,427 | [1] | 8,023 | [1] | 8,972 | [2] | 8,092 | [2] |
(Loss) income available to common stockholders and assumed conversions, Per Share Amount | $ (5.66) | $ (0.72) | $ (6.26) | $ 0.22 | ||||
Warrant [Member] | ||||||||
Diluted (Loss) Earnings Per Share: | ||||||||
Dilutive Securities, Shares (Denominator) | 0 | [1] | 0 | [1] | 0 | [2] | 234 | [2] |
Stock Options [Member] | ||||||||
Diluted (Loss) Earnings Per Share: | ||||||||
Dilutive Securities, Shares (Denominator) | 0 | [1] | 0 | [1] | 0 | [2] | 182 | [2] |
[1] (a) Shares in thousands. * For the three months ended September 30, 2022 and 2021, respectively, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. (a) Shares in thousands. * For the nine months ended September 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect. For the nine months ended September 30, 2021, convertible senior notes were excluded due to anti-dilutive effect. |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | |||||||||
Beginning Balance | $ 91,963 | $ 89,695 | $ 89,955 | $ 88,071 | $ 85,892 | $ 0 | $ 89,955 | $ 0 | |
Initial proceeds from Centerbridge | 0 | 100,000 | |||||||
Increase (decrease): | |||||||||
Proceeds allocated to warrants | [1] | 0 | (9,217) | ||||||
Issuance costs | 0 | (6,262) | |||||||
Issuance costs allocated to warrants | [1] | 0 | 577 | ||||||
Accrued cash dividends | 1,499 | 1,500 | 1,342 | 1,250 | 1,250 | 458 | 4,341 | 2,958 | |
Accretion - increasing dividend rates | 786 | 768 | 906 | 952 | 929 | 336 | 2,460 | 2,217 | |
Cash dividends paid to redeemable noncontrolling interest | (3,000) | (2,508) | (2,542) | 0 | (5,508) | (2,542) | |||
Ending Balance | $ 91,248 | $ 91,963 | $ 89,695 | $ 87,731 | $ 88,071 | $ 85,892 | $ 91,248 | $ 87,731 | |
[1] *Net decrease related to warrants of $ 8,640 . |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | |
Net decrease related to warrants | $ 8,640 |
Redeemable Noncontrolling Int_5
Redeemable Noncontrolling Interest - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Temporary Equity [Line Items] | ||||||||
Exercise price | $ 54.40 | $ 54.40 | ||||||
Net income attributable to redeemable noncontrolling interest | $ 2,285 | $ 2,202 | $ 6,801 | $ 5,175 | ||||
Accrued cash dividends | 1,499 | $ 1,500 | $ 1,342 | 1,250 | $ 1,250 | $ 458 | 4,341 | 2,958 |
Accretion - increasing dividend rates | $ 786 | $ 768 | $ 906 | $ 952 | $ 929 | $ 336 | $ 2,460 | $ 2,217 |
Equity (Common Stock) - Additio
Equity (Common Stock) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 16, 2022 | Aug. 19, 2022 | Jul. 14, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||||||
Common stock repurchase authorized amount | $ 20,000 | ||||||
Stock repurchased and retired, total costs | $ (68,103) | $ (1,308) | |||||
Dividends per common share | $ 0.40 | ||||||
Dividends, date of declared | Jul. 14, 2022 | ||||||
Dividends, date of record | Aug. 19, 2022 | ||||||
Dividends, date of payment | Sep. 16, 2022 | ||||||
Share Repurchase Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock repurchased and retired, weighted average price, excluding fees and commissions | $ 51.69 | $ 54.11 | |||||
Stock repurchased and retired, total costs | $ (6,179) | $ (8,063) | |||||
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 51.72 | $ 54.14 | |||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchase and retirement of common stock, shares | (1,056,997) | (17,193) | |||||
Common Stock [Member] | Share Repurchase Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Repurchase and retirement of common stock, shares | 119,462 | 148,927 |
Equity (Warrants) - Additional
Equity (Warrants) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||
Warrants | 750,000 | ||
Debt instrument stated interest rate | 4.25% | 4.25% | |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |
Shares delivered under prepaid forward contract | 191,100 | ||
Repurchase and retirement of common stock, value | $ 68,103 | $ 1,308 | |
Exercise price | $ 54.40 | ||
Warrants Expiration Date | Feb. 26, 2025 | ||
4.75% Convertible Senior Notes [Member] | |||
Class of Stock [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
4.75% Convertible Senior Notes [Member] | Share Repurchase Agreement [Member] | |||
Class of Stock [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 64.43 | ||
Repurchase and retirement of common stock, value | $ (66,853) | ||
Repurchase and retirement of common stock, shares | 1,037,600 |
Equity (Noncontrolling Interest
Equity (Noncontrolling Interest) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Common stock, outstanding | 8,926,845 | 8,926,845 | 10,131,399 | |
Purchase of noncontrolling interests | $ (406) | $ (58) | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase and retirement of common stock, shares | (1,056,997) | (17,193) | ||
TTIG [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, outstanding | 81,139,221 | 81,139,221 | ||
Common stock shares outstanding not owned by entity | 6,139,221 | 6,139,221 | ||
Repurchase and retirement of common stock, shares | (2,893) | (69,876) | ||
Purchase of noncontrolling interests | $ (17) | $ (406) |
Stock-Based Compensation (2012
Stock-Based Compensation (2012 Omnibus Incentive Plan) - Additional Information (Detail) | Sep. 30, 2022 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 1,110,605 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options exercisable contractual term | 10 years | ||||
Options exercised | 0 | 0 | 0 | 0 | |
Recognized compensation expenses | $ 4,130 | $ 2,732 | $ 12,709 | $ 9,229 | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognized compensation expenses | 162 | 221 | 507 | 663 | |
Deferred tax benefits recognized | 0 | 3 | 0 | 4 | |
Unrecognized compensation expense related to nonvested stock options | 498 | $ 498 | $ 1,005 | ||
Recognition of remaining compensation expense over a weighted-average period | 1 year 1 month 6 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognized compensation expenses | $ 3,099 | $ 2,039 | $ 9,551 | $ 6,280 | |
Recognition of remaining compensation expense over a weighted-average period | 2 years 2 months 12 days | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options maximum vesting period | 4 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | ||||||||||
Outstanding, Beginning Balance, Number of Options | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | |
Exercised, Number of Options | 0 | 0 | 0 | 0 | ||||||
Outstanding, Ending Balance, Number of Options | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 |
Exercisable, Number of Options | 357,500 | 275,000 | 357,500 | 275,000 | ||||||
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | |
Outstanding, Ending Balance, Weighted Average Exercise Price | 45.25 | $ 45.25 | 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | 45.25 | 45.25 | $ 45.25 | $ 45.25 |
Exercisable, Weighted-Average Exercise Price | $ 44.23 | $ 43.40 | $ 44.23 | $ 43.40 | ||||||
Outstanding, Weighted-Average Remaining Contractual Term | 6 years 3 months 18 days | 7 years 3 months 18 days | 6 years 1 month 6 days | 7 years 1 month 6 days | 5 years 9 months 18 days | 6 years 9 months 18 days | 6 years 7 months 6 days | 7 years 7 months 6 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 5 years 6 months | 6 years 3 months 18 days | ||||||||
Outstanding, Aggregate Intrinsic Value | $ 117 | $ 10,494 | $ 29,238 | $ 13,464 | $ 9,354 | $ 23,883 | $ 117 | $ 29,238 | $ 18,119 | $ 3,113 |
Exercisable, Aggregate Intrinsic Value | $ 117 | $ 18,782 | $ 117 | $ 18,782 |
Stock Based Compensation - Info
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Feb. 28, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cancelled, Number of Restricted Stock Awards | (141,600) | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning balance, shares | 581,240 | 630,065 | 679,997 | 711,212 | 786,973 | 423,787 | |
Granted, Number of Restricted Stock Awards | 3,000 | 4,000 | 2,340 | 3,000 | 548,086 | ||
Vested, Number of Restricted Stock Awards | (51,125) | (50,667) | (68,541) | (41,250) | |||
Cancelled, Number of Restricted Stock Awards | (1,160) | (141,600) | |||||
Forfeited, Number of Restricted Stock Awards | (1,665) | (700) | (3,265) | (38,855) | (9,060) | (2,050) | |
Ending balance, shares | 579,575 | 581,240 | 630,065 | 674,697 | 711,212 | 786,973 | |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 38.61 | $ 39 | $ 39.72 | $ 38.71 | $ 39.11 | $ 43.79 | |
Granted, Weighted-Average Grant Date Fair Value | 67.30 | 70.58 | 96.60 | 76 | 36.95 | ||
Vested, Weighted-Average Grant Date Fair Value | 45.04 | 50.68 | 43.80 | 42.18 | |||
Cancelled, Weighted-Average Grant Date Fair Value | 45.96 | 43.76 | |||||
Forfeited, Weighted-Average Grant Date Fair Value | 45.56 | 45.61 | 45.85 | 38.05 | 46.44 | 45.67 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 38.59 | $ 38.61 | $ 39 | $ 38.95 | $ 38.71 | $ 39.11 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 28, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expenses | $ 4,130 | $ 2,732 | $ 12,709 | $ 9,229 | ||||
Cancelled, Number of Restricted Stock Awards | (141,600) | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expenses | 3,099 | 2,039 | 9,551 | 6,280 | ||||
Unrecognized compensation expense related to nonvested restricted stock | 9,670 | $ 9,670 | $ 18,995 | |||||
Recognition of remaining compensation expense over a weighted-average period | 2 years 2 months 12 days | |||||||
Cancelled, Number of Restricted Stock Awards | (1,160) | (141,600) | ||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expenses | $ 162 | $ 221 | $ 507 | $ 663 | ||||
Recognition of remaining compensation expense over a weighted-average period | 1 year 1 month 6 days |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred tax benefits recognized | $ 230 | $ 420 | $ 1,521 | $ 879 |
Tax benefits realized for restricted stock and paid dividends | 56 | 70 | 1,360 | 1,482 |
Fair value of vested restricted stock | $ 0 | $ 0 | $ 4,871 | $ 4,742 |
Stock-Based Compensation (Subsi
Stock-Based Compensation (Subsidiary Equity Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Recognized compensation expenses | $ 4,130 | $ 2,732 | $ 12,709 | $ 9,229 | |||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares issued | 3,000 | 4,000 | 2,340 | 3,000 | 548,086 | ||||
Recognized compensation expenses | 3,099 | $ 2,039 | 9,551 | 6,280 | |||||
Unrecognized compensation expense related to nonvested restricted stock | 9,670 | 9,670 | $ 18,995 | ||||||
TTIG [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Recognized compensation expenses | 869 | $ 472 | 2,651 | $ 2,286 | |||||
Unrecognized compensation expense related to nonvested restricted stock and stock options | $ 8,780 | $ 8,780 | $ 11,230 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||||
Aug. 31, 2022 | Mar. 31, 2022 | Oct. 31, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Unfunded Balance | $ 6,262 | $ 11,073 | |||
Percentage of FIGA Assessment levied on Collected Premium | 0.70% | 1.30% | 0.70% | ||
Amount of FIGA Assessments payable | $ 2,858 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
2022 | $ 91,350 |
2023 | 91,350 |
Total | $ 182,700 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||||||
Dec. 16, 2022 | Nov. 18, 2022 | Oct. 13, 2022 $ / shares | Oct. 07, 2022 USD ($) | Oct. 05, 2022 $ / shares shares | Sep. 16, 2022 | Aug. 19, 2022 | Jul. 14, 2022 $ / shares | Jun. 30, 2022 $ / shares shares | Mar. 31, 2022 $ / shares shares | Jun. 30, 2021 $ / shares shares | Mar. 31, 2021 $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | May 31, 2023 | Nov. 07, 2022 USD ($) | Jun. 01, 2022 | |
Subsequent Event [Line Items] | |||||||||||||||||
Dividends per common share | $ / shares | $ 0.40 | ||||||||||||||||
Dividends, date of declared | Jul. 14, 2022 | ||||||||||||||||
Dividends, date of record | Aug. 19, 2022 | ||||||||||||||||
Gain on involuntary conversions | $ | $ 13,402 | $ 0 | |||||||||||||||
Dividends, date of paid | Sep. 16, 2022 | ||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Credit facility, maximum borrowing capacity | $ | $ 65,000 | ||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Number of restricted stock award shares vested | shares | 51,125 | 50,667 | 68,541 | 41,250 | |||||||||||||
Weighted average grant date fair value of restricted stock award shares vested | $ / shares | $ 45.04 | $ 50.68 | $ 43.80 | $ 42.18 | |||||||||||||
United Insurance Holdings Corporation [Member] | Hundred Percent Quota Share Reinsurance [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Quota share reinsurance percentage | 100% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividends per common share | $ / shares | $ 0.40 | ||||||||||||||||
Dividends, date of declared | Oct. 13, 2022 | ||||||||||||||||
Dividends, date of record | Nov. 18, 2022 | ||||||||||||||||
Dividends, date of paid | Dec. 16, 2022 | ||||||||||||||||
Premium Refund From Reinsurance Contract | $ | $ 5,457 | ||||||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Credit facility, maximum borrowing capacity | $ | $ 50,000 | ||||||||||||||||
Subsequent Event [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Revolving credit facility maximum debt-to-capital ratio | 67.5 | ||||||||||||||||
Subsequent Event [Member] | Restricted Stock [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Number of restricted stock award shares vested | shares | 231,516 | ||||||||||||||||
Weighted average grant date fair value of restricted stock award shares vested | $ / shares | $ 36.57 | ||||||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 80,339 | ||||||||||||||||
Subsequent Event [Member] | United Insurance Holdings Corporation [Member] | Hundred Percent Quota Share Reinsurance [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Quota share reinsurance percentage | 100% |