Document & Entity Information D
Document & Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Entity Public Float | $ 152,328,904 | ||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2020 | ||
Document fiscal period focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Central index key | 0001401521 | ||
Filer category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Common stock outstanding | 43,086,883 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35761 | ||
Registrant name | United Insurance Holdings Corp. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-3241967 | ||
Entity Address, Address Line One | 800 2nd Avenue S. | ||
Entity Address, Postal Zip Code | 33701 | ||
Entity Address, State or Province | FL | ||
Entity Address, City or Town | St. Petersburg, | ||
City Area Code | 727- | ||
Local Phone Number | 895-7737 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading symbol | UIHC | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments available for sale, at fair value: | ||
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | $ 940,011 | $ 884,861 |
Equity securities | 7,445 | 116,610 |
Other investments (amortized cost of $47,535 and $8,067, respectively) | 47,595 | 10,252 |
Total investments | 995,051 | 1,011,723 |
Cash and cash equivalents | 239,420 | 215,469 |
Restricted Cash | 62,078 | 71,588 |
Cash, Cash Equivalents, and Restricted Cash | 301,498 | 287,057 |
Accrued investment income | 4,680 | 5,901 |
Property, Plant and Equipment, Net | 34,187 | 32,728 |
Premiums receivable, net (credit allowance of $140 and $165, respectively) | 87,339 | 86,568 |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | 821,156 | 550,136 |
Ceded unearned premiums | 384,588 | 270,034 |
Goodwill | 73,045 | 73,045 |
Deferred policy acquisition costs | 74,414 | 104,572 |
Intangible Assets, Net (Excluding Goodwill) | 21,930 | 26,079 |
Other Assets | 51,053 | 19,375 |
Total Assets | 2,848,941 | 2,467,218 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 1,089,966 | 760,357 |
Unearned premiums | 723,938 | 674,055 |
Reinsurance Payable | 241,636 | 166,131 |
Payments outstanding | 77,912 | 57,555 |
Accounts Payable and Accrued Expenses | 91,173 | 78,592 |
Operating Lease, Liability | 2,311 | 324 |
Other Liabilities | 46,365 | 47,407 |
Notes payable | 158,041 | 158,932 |
Total Liabilities | 2,431,342 | 1,943,353 |
Commitments and contingencies (Note 11) | ||
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 43,250,731 and 43,056,310 issued, respectively; 43,075,877 and 43,028,074 outstanding, respectively | 4 | 4 |
Additional Paid in Capital | 393,122 | 391,852 |
Treasury shares, at cost; 212,083 shares | (431) | (431) |
Accumulated other comprehensive income | 9,693 | 11,319 |
Retained Earnings (Accumulated Deficit) | (6,635) | 100,394 |
Total Stockholders' Equity | 395,753 | 503,138 |
Stockholders' Equity Attributable to Noncontrolling Interest | 21,846 | 20,727 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 417,599 | 523,865 |
Total Liabilities and Stockholders' Equity | $ 2,848,941 | $ 2,467,218 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Investments and Securities, at Cost | $ 47,535 | $ 8,067 |
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 0 | 0 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 43,250,731 | 43,056,310 |
Common stock, outstanding shares | 43,075,877 | 43,028,074 |
Treasury stock | 212,083 | 212,083 |
Premium Receivable, Allowance for Credit Loss | $ 140 | $ 165 |
Reinsurance Recoverable, Allowance for Credit Loss | 386 | 256 |
Financing Receivable, Allowance for Credit Loss | 20 | 141 |
Fixed Maturities | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 926,714 | $ 869,598 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE: | |||
Gross premiums written | $ 1,456,863 | $ 1,380,268 | $ 1,252,401 |
Change in gross unearned premiums | (49,883) | (46,742) | (71,440) |
Gross premiums earned | 1,406,980 | 1,333,526 | 1,180,961 |
Ceded Premiums Earned | (641,317) | (581,126) | (491,685) |
Net premiums earned | 765,663 | 752,400 | 689,276 |
Investment Income, Net | 24,125 | 30,145 | 26,170 |
Investment Income | 25,489 | 31,229 | 27,201 |
Net realized gains (losses) | 66,691 | 1,228 | 1,655 |
Unrealized Gain (Loss) on Securities | (27,562) | 24,761 | (9,300) |
Other revenue | 17,739 | 16,582 | 15,110 |
Total revenue | 846,656 | 825,116 | 723,942 |
EXPENSES: | |||
Losses and loss adjustment expenses | 608,316 | 499,493 | 408,589 |
Policy Acquisition Costs | 236,002 | 238,268 | 203,140 |
Operating Costs and Expenses | 52,876 | 44,310 | 40,590 |
General and Administrative Expense | 72,057 | 65,989 | 66,112 |
Interest Expense | 9,582 | 9,781 | 9,866 |
Total expenses | 978,833 | 857,841 | 728,297 |
Income before other income | (132,177) | (32,725) | (4,355) |
Other Income | 74 | 119 | 116 |
Income before income taxes | (132,103) | (32,606) | (4,239) |
Provision (benefit) for income taxes | (36,605) | (3,121) | (4,633) |
Net Income (Loss) Attributable to Parent | (96,454) | (29,872) | 290 |
Net Income (Loss) Attributable to Noncontrolling Interest | 956 | 387 | 104 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 |
OTHER COMPREHENSIVE INCOME: | |||
Change in net unrealized gain (loss) on investments | 64,726 | 28,366 | (22,264) |
Reclassification adjustment for net realized investment gains | (66,691) | (1,228) | (1,655) |
Income tax benefit (expense) related to items of other comprehensive income | 502 | (6,588) | 5,703 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (96,961) | (8,935) | (17,822) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 1,119 | 588 | 139 |
Total comprehensive income | $ (98,080) | $ (9,523) | $ (17,961) |
Weighted average shares outstanding | |||
Basic | 42,864,166 | 42,763,423 | 42,650,629 |
Diluted | 42,864,166 | 42,763,423 | 42,838,886 |
Earnings per share | |||
Earnings Per Share, Basic | $ (2.25) | $ (0.70) | $ 0.01 |
Earnings Per Share, Diluted | $ (2.25) | $ (0.70) | $ 0.01 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Comprehensive Income | AOCI Attributable to Parent | Retained Earnings | Parent | Noncontrolling Interest |
Stockholders' Equity Attributable to Parent | $ 4 | $ 387,145 | $ (431) | $ 9,221 | $ 141,186 | $ 537,125 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | ||||||||
Beginning balance (shares) at Dec. 31, 2017 | 42,753,054 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 537,125 | ||||||||
Net Income (Loss) Attributable to Parent | 290 | $ 0 | 0 | 0 | 0 | 290 | 290 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 104 | 104 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 394 | ||||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (8,878) | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | (8,913) | 0 | (8,913) | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 35 | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 231,524 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,996 | $ 0 | 1,996 | 0 | 0 | 0 | 1,996 | 0 | |
Dividends, Common Stock, Cash | (10,268) | $ 0 | 0 | 0 | 0 | (10,268) | (10,268) | 0 | |
Investment in Subsidiary - NCI | 20,000 | 20,000 | |||||||
Ending balance (shares) at Dec. 31, 2018 | 42,984,578 | ||||||||
Ending balance at Dec. 31, 2018 | 540,369 | ||||||||
Stockholders' Equity Attributable to Parent | $ 4 | 389,141 | (431) | (9,030) | 140,546 | 520,230 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 20,139 | ||||||||
ASU 2016-01 Effect on Retained Earnings | Accounting Standards Update 2018-02 | $ (9,338) | 9,338 | |||||||
Net Income (Loss) Attributable to Parent | (29,872) | 0 | 0 | 0 | 0 | (29,872) | (29,872) | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 387 | 387 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (29,485) | ||||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 20,550 | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | 20,349 | 0 | 20,349 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 201 | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 43,496 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 2,711 | $ 0 | 2,711 | 0 | 0 | 0 | 2,711 | 0 | |
Dividends, Common Stock, Cash | (10,280) | $ 0 | 0 | 0 | 0 | (10,280) | (10,280) | 0 | |
Investment in Subsidiary - NCI | $ 0 | ||||||||
Ending balance (shares) at Dec. 31, 2019 | 43,028,074 | 43,028,074 | |||||||
Ending balance at Dec. 31, 2019 | $ 523,865 | ||||||||
Stockholders' Equity Attributable to Parent | 503,138 | $ 4 | 391,852 | (431) | 11,319 | 100,394 | 503,138 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 20,727 | 20,727 | |||||||
Net Income (Loss) Attributable to Parent | (96,454) | 0 | 0 | 0 | 0 | (96,454) | (96,454) | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 956 | 956 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | ||||||||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | (1,463) | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 0 | 0 | 0 | (1,626) | 0 | (1,626) | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 163 | ||||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 47,803 | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 1,270 | $ 0 | 1,270 | 0 | 0 | 0 | 1,270 | 0 | |
Dividends, Common Stock, Cash | (10,313) | $ 0 | 0 | 0 | 0 | (10,313) | (10,313) | 0 | |
Investment in Subsidiary - NCI | $ 0 | ||||||||
Ending balance (shares) at Dec. 31, 2020 | 43,075,877 | 43,075,877 | |||||||
Ending balance at Dec. 31, 2020 | $ 417,599 | ||||||||
Stockholders' Equity Attributable to Parent | 395,753 | $ 4 | $ 393,122 | $ (431) | $ 9,693 | (6,635) | 395,753 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 21,846 | $ 21,846 | |||||||
ASU 2016-13 Effect on Retained Earnings | 262 | ||||||||
ASU 2016-13 Effect on Retained Earnings | Accounting Standards Update 2016-13 | $ (262) | $ (262) | $ (262) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 9,533 | $ 9,730 | $ 9,861 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 |
Net Income (Loss) Attributable to Parent | (96,454) | (29,872) | 290 |
Property, Plant and Equipment, Transfers and Changes | 2,949 | 0 | 0 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 140 | (553) | (358) |
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | 386 | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 20 | 0 | 0 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | (386) | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | (20) | 0 | 0 |
Depreciation and amortization | 11,046 | 11,997 | 18,482 |
Accretion (Amortization) of Discounts and Premiums, Investments | 6,422 | 5,323 | 5,005 |
Net realized gains (losses) | (66,691) | (1,228) | (1,655) |
Unrealized Gain (Loss) on Investments | 27,562 | (24,761) | 9,300 |
Deferred income taxes, net | (9,894) | (4,280) | (2,470) |
Share-based Payment Arrangement, Noncash Expense | 1,382 | 3,007 | 2,414 |
Changes in operating assets and liabilities: | |||
Accrued investment income | 1,221 | 116 | (440) |
Premiums receivable | (496) | 8,695 | (20,899) |
Reinsurance recoverable on paid and unpaid losses | (270,890) | 75,862 | (230,224) |
Prepaid reinsurance premiums | (114,554) | (52,149) | (15,981) |
Deferred policy acquisition costs, net | 30,158 | 1,010 | (1,700) |
Other assets | (31,917) | (6,817) | (1,545) |
Unpaid losses and loss adjustment expenses | 329,609 | 99,154 | 178,971 |
Unearned premiums | 49,883 | 46,742 | 71,440 |
Reinsurance payable | 75,505 | (9,141) | 26,155 |
Payments outstanding | 20,357 | 1,021 | 14,748 |
Accounts payable | 12,581 | 7,544 | 24,454 |
Change in Operating Lease Liability | 1,987 | 324 | 0 |
Other Liabilities | 9,353 | 15,528 | (51,048) |
Net Cash Provided by (Used in) Operating Activities | (10,471) | 149,015 | 25,759 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of investments available for sale | 695,288 | 255,197 | 219,572 |
Proceeds from Sale of Available-for-sale Securities, Equity | 144,990 | 2,201 | 9,726 |
Proceeds from Sale and Maturity of Other Investments | 4,586 | 7,104 | 1,302 |
Proceeds from Collection of Policy Loans | 0 | 0 | 20,000 |
Purchases of Equity Investments | (26,540) | (15,373) | (34,050) |
Payments to Acquire Other Investments | (44,048) | (6,855) | (1,534) |
Payments to Acquire Debt Securities, Available-for-sale | (726,862) | (254,357) | (336,590) |
Payments to Acquire Property, Plant, and Equipment | (10,848) | (21,896) | (4,068) |
Net Cash Provided by (Used in) Investing Activities | 36,566 | (33,979) | (125,642) |
FINANCING ACTIVITIES | |||
Payment, Tax Withholding, Share-based Payment Arrangement | (112) | (296) | (418) |
Investment in Subsidiary - NCI | 0 | 0 | 20,000 |
Repayments of borrowings | (1,229) | (1,523) | (1,523) |
Payments of Debt Issuance Costs | 0 | 0 | (63) |
Payments of Dividends | (10,313) | (10,280) | (10,268) |
Net Cash Provided by (Used in) Financing Activities | (11,654) | (12,099) | 7,728 |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 287,057 | 184,120 | 276,275 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 14,441 | 102,937 | (92,155) |
Cash, Cash Equivalents, and Restricted Cash at end of period | 301,498 | 287,057 | 184,120 |
Supplemental Cash Flows Information | |||
Income taxes paid | 1,265 | 517 | 4,673 |
Parent Company | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 |
Net Income (Loss) Attributable to Parent | (96,454) | (29,872) | 290 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 2,054 | 1,131 | 1,079 |
Accretion (Amortization) of Discounts and Premiums, Investments | 42 | 66 | (6) |
Net realized gains (losses) | (4,971) | (63) | 160 |
Unrealized Gain (Loss) on Investments | 2,812 | (4,036) | 1,223 |
Deferred income taxes, net | 644 | (511) | (570) |
Share-based Payment Arrangement, Noncash Expense | 1,382 | 3,007 | 2,414 |
Changes in operating assets and liabilities: | |||
Accrued investment income | 70 | 113 | (192) |
Other assets | (3,682) | 9,976 | (908) |
Accounts payable | 931 | (22) | (524) |
Change in Operating Lease Liability | (18) | 64 | 0 |
Other Liabilities | 966 | 313 | 0 |
Net Cash Provided by (Used in) Operating Activities | (86,505) | (37,913) | 76,809 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of investments available for sale | 32,518 | 35,036 | 37,315 |
Payments to Acquire Property, Plant, and Equipment | (688) | (4,749) | (1,032) |
Net Cash Provided by (Used in) Investing Activities | 111,945 | 47,429 | (140,477) |
FINANCING ACTIVITIES | |||
Payment, Tax Withholding, Share-based Payment Arrangement | (112) | (296) | (418) |
Repayments of borrowings | 347 | 347 | 347 |
Payments of Debt Issuance Costs | 0 | 0 | 63 |
Payments of Dividends | 10,313 | 10,280 | 10,268 |
Net Cash Provided by (Used in) Financing Activities | (10,772) | (10,923) | (11,096) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ 14,668 | $ (1,407) | $ (74,764) |
Organization, Consolidation and
Organization, Consolidation and Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation | ORGANIZATION, CONSOLIDATION AND PRESENTATION (a) Business United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UPC Insurance) is a property and casualty insurance holding company that sources, writes and services residential personal and commercial property and casualty insurance policies using a network of agents, four wholly-owned insurance subsidiaries, and one majority-owned insurance subsidiary. Our largest insurance subsidiary is United Property & Casualty Insurance Company (UPC), which was formed in Florida in 1999 and has operated continuously since that time. Our four other insurance subsidiaries are Family Security Insurance Company, Inc. (FSIC), acquired via merger on February 3, 2015, Interboro Insurance Company (IIC), acquired via merger on April 29, 2016, American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017, and Journey Insurance Company (JIC). JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018. The Kiln subsidiary holds a noncontrolling interest in JIC. Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent that manages substantially all aspects of UPC and FSIC's business, as well as JIC's personal residential business; Skyway Claims Services, LLC, which provides claims adjusting services to UPC, FSIC, ACIC and IIC; AmCo Holding Company, LLC (AmCo) and Family Security Holdings, LLC (FSH), which are holding company subsidiaries that consolidate their respective insurance companies; BlueLine Cayman Holdings (BlueLine), which reinsures portfolios of excess and surplus policies; UPC Re, which provides a portion of the reinsurance protection purchased by our insurance subsidiaries when needed; Skyway Reinsurance Services, LLC, which provides reinsurance brokerage services for our insurance companies; Skyway Legal Services, LLC, which provides claims litigation services to our insurance companies; and Skyway Technology Services, LLC, which provides technological and distribution services to our insurance companies. Our primary products are homeowners' and commercial residential property insurance, which we currently offer in 12 states, under authorization from the insurance regulatory authorities in each state. In addition, we write commercial residential insurance in three states: Florida, South Carolina, and Texas. We are also licensed to write property and casualty insurance in an additional six states; however, we have not commenced writing in these states. We conduct our operations under one reportable segment, property and casualty insurance policies. Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at the corporate level. (b) Consolidation and Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). While preparing our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include our reserves for unpaid losses and loss adjustment expenses, investments and goodwill. Except for the captions on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. (c) Impact of COVID-19 and Financial Status The COVID-19 pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans and restrictions, self-imposed quarantine periods, state and local shelter-in-place orders, business and government shutdowns and social distancing, have caused and continue to cause material disruption to businesses and economies globally. In addition, global equity markets have experienced and continue to experience significant volatility and weakness. We are committed to maintaining a stable and secure business for our employees, agents, customers and stockholders. During the second half of 2020, we were able to resume hiring activities, despite the limits on in-person interviews and on- boarding procedures resulting from COVID-related protocols. In addition, we have converted to virtual sales processes to enable our agents to continue their activities. We believe these activities, collectively, help ensure the health and safety of our employees through adherence to CDC, state and local government work guidelines. We have not experienced a material impact from COVID-19 on our business operations, financial position, liquidity or our ability to service our policyholders to date, with the exceptions of fluctuations in our investment portfolios due to volatility of the equity securities markets. We reduced the size of the equity securities portfolio during 2020, which has reduced the impact of fluctuations in the markets on our financial condition. The COVID-19 pandemic and resulting global disruptions did not have a material impact on our access to credit and capital markets needed to maintain sufficient liquidity for our continued operating needs during the year ended December 31, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Cash, cash equivalents, and restricted cash Our cash, cash equivalents, and restricted cash include demand deposits with financial institutions, cash that is held in trust for assumed business, cash held in deposit accounts to satisfy state statutory deposit requirements, and short-term, highly liquid instruments with original maturities of three months or less when purchased. (b) Investments We currently classify all of our investments in fixed maturities and short-term investments as available-for-sale, and report them and our equity securities and limited partnership investments at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive income (loss). We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net income. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Effective January 1, 2018, in accordance with Accounting Standards Update (ASU) 2016-01 (ASU 2016-01), we present our unrealized gains or losses on equity investments and other investments on the income statement. Quarterly, we perform an assessment of our investments to determine if any are impaired as the result of a credit loss. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security’s entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss). A large portion of our investment portfolio consists of fixed maturities, which may be adversely affected by changes in interest rates as a result of governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. A rise in interest rates would decrease the net unrealized holding gains of our investment portfolio, offset by our ability to earn higher rates of return on funds reinvested. Conversely, a decline in interest rates would increase the net unrealized holding gains of our investment portfolio, offset by lower rates of return on funds reinvested. (c) Fair Value See Note 3 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2020 and 2019. (d) Allowance for Expected Credit Losses We are exposed to credit losses primarily through three different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; and our note receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses. The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. The following table summarizes our allowance for expected credit losses by pooled asset for the year ended December 31, 2020: December 31, 2019 Provision for expected credit losses Write-offs December 31, 2020 Premiums Receivable $ 165 $ (311) $ 286 $ 140 Reinsurance Recoverables 256 130 — 386 Note Receivable 141 (121) — 20 Total $ 562 $ (302) $ 286 $ 546 (e) Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then estimate expected credit losses based on historical trends, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. Once these conditions have been examined, we establish an allowance for credit losses for any amounts not expected to be collected. When we receive payments on amounts previously charged off, we credit our expected credit loss expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $140,000 and $302,000 at December 31, 2020 and 2019, respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premiums liability and record the premiums as described above. (f) Policy Acquisition Costs We incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. Such costs include, but are not limited to: incremental direct costs of contract acquisition, such as commissions; premium taxes; and other essential direct costs that would not have been incurred had a policy not been acquired or renewed. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, reinsurance costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. We did not have a premium deficiency at December 31, 2020 or 2019. (g) Debt Issuance Costs We record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. (h) Long-lived Assets i) Property and Equipment We record our property and equipment at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. ii) Capitalized Software We capitalize certain direct development costs associated with internal-use software. We amortize the capitalized software costs related to our data warehouse, claims system and policy administration system over its expected seven See Note 6 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software that were held during 2020 and 2019. iii) Impairment of Long-lived Assets We annually review our long-lived assets, or more frequently when impairment indicators exist, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. (i) Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for incurred but not reported (IBNR) claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net income (loss). Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. On our Consolidated Balance Sheets, we report our reserves for unpaid losses gross of the amounts related to unpaid losses recoverable from reinsurers. On our Consolidated Statements of Comprehensive Income (Loss), we report losses net of amounts ceded to reinsurers. We do not discount our loss reserves for financial statement purposes. (j) Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with our acquisitions to two reporting units. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. We test goodwill for impairment by performing a quantitative assessment. In performing the quantitative impairment test, we use a discounted cash flow valuation approach. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting unit. The valuation methodology utilized is subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting units could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. For the 2020 annual goodwill impairment tests we determined that the goodwill was not impaired for either of our reporting units. For the 2019 annual goodwill impairment tests, under prior guidance, we utilized the qualitative assessment for both of our reporting units and determined that the goodwill was not impaired. For the 2018 annual goodwill impairment tests, under the prior guidance, we utilized the qualitative assessment for one of our reporting units and determined it was not more likely than not that the fair value of the reporting units tested using the applicable methods was less than their carrying amount and, therefore goodwill was not impaired for either period. For our second reporting unit, we used the quantitative approach in 2018 and determined that the goodwill was not impaired. (k) Intangible Assets Identifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically review identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. For 2020, 2019 and 2018, we determined that the fair values of the intangible assets were not impaired. (l) Leases We evaluate if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Identified property, plant or equipment for all of our leases are physically distinct and explicitly identified. In addition, we assess whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. Our leases expire at various dates and may contain renewal options. Our leases do not contain termination options. The exercise of lease renewal options are at our sole discretion and are only included in the determination of the lease term if we are reasonably certain to exercise the option. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Right-of-use assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. We have elected the practical expedient related to lease and non-lease components, as an accounting policy election for our office equipment leases, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component. We have also elected the practical expedients to exclude leases considered to be short-term and with values that fall under our capitalization threshold. A portion of our lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and right-of-use asset balances. For our parking lot lease, base rental payments may be escalated according to annual changes in the Consumer Price Index (CPI). The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Our office equipment lease agreements may include variable payments based on usage of the equipment. We utilized discount rates to determine the present value of the lease payments based on information available at the commencement date of the lease. We used an incremental borrowing rate based on factors such as lease term to determine the appropriate present value of future lease payments as the rate implicit in the lease is not always readily available. When determining the incremental borrowing rate, we considered the rate of interest we would pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms. (m) Portfolio Loans Loan receivables that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the principal balance outstanding, net of the allowance for loan losses. (n) Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Refer to Note 12 for additional information. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. On March 27, 2020, former President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. We assessed all provisions of the CARES Act and determined that two provisions needed further analysis to determine the impact to our business. First, the TCJA simplified the definition of "qualified improvement property" and removed the 15-year life for cost recovery, resulting in a 39-year life which excluded the assets from being eligible for bonus depreciation. The CARES Act reinstated the 15-year recovery period effective as if it had been included in the TCJA, making the change applicable to property placed in service after December 31, 2017. After performing our assessment, we concluded that this provision had no impact to our financial statements. Second, the TCJA eliminated the two-year carryback period and provided for indefinite carryforward of net operating losses against future tax periods, with the future deduction limited to 80% of taxable income before consideration of net operating loss deduction. The CARES Act amended the law for net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021. Net operating losses generated by a corporation during these taxable years now have a five-year carryback period. In addition, these losses can be carried forward to future taxable years without being subject to the 80% limitation. As a result of the CARES Act, we were able to convert potential deferred tax assets related to net operating losses to a current receivable, generating a $12,566,000 tax benefit for difference in tax rate. The Company’s initial assessment at June 30, 2020 was a tax benefit of $5,263,000. The additional benefit stemmed from 2020 operations. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2020, 2019 or 2018. (o) Advertising Costs We expense all advertising costs as an operating expense when we incur those costs. For the years ended December 31, 2020, 2019 and 2018, we incurred advertising costs of $1,212,000, $1,426,000, and $1,674,000, respectively. (p) Earnings Per Share (EPS) We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net loss attributable to UIHC common stockholders (net loss less the net income attributable to NCI) by the weighted-average number of shares of common stock outstanding during the period. We calculate diluted earnings per share using the Treasury method by dividing net loss attributable to UIHC common stockholders by the weighted-average number of shares of common stock, common stock equivalents, and restricted shares outstanding during the period. Common share equivalents are only included when they are dilutive. (q) Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily homeowners policies; • a geographic concentration resulting from the fact that, though we now operate in 12 states, we still write approximately 57% of our gross written premium in Florida as of December 31, 2020; • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions; and • a concentration of credit risk with regard to our cash, because we choose to deposit all of our cash at five financial institutions. We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. With regard to our cash balances held at financial institutions, we had $320,514,000 and $303,021,000 in excess of Federal Deposit Insurance Corporation (FDIC) insurance limits at December 31, 2020 and 2019, respectively. (r) Managing General Agent Fees and Policy Fees Our policy fees consist of the managing general agent (MGA) fee and a pay-plan fee. We defer MGA fees as unearned revenue and recognize revenue on a pro rata basis over the term of the underlying policies. We record pay-plan fees, which are charged to all policyholders that pay premium in more than one installment, as income when collected. We report all policy-related fees as other revenue on our Consolidated Statements of Comprehensive Income (Loss). (s) Reinsurance We follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, ceded unearned premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our ceded unearned premiums over the 12-month contract period. We record provisional ceding commissions that we receive in connection with our reinsurance contracts for the 2020 underwriting year as an offset to deferred acquisitions costs. Ceding commissions received in connection with our reinsurance contracts for the 2019 and 2018 underwriting years were recorded as an offset to deferred acquisition costs to the extent that they related to compensation for acquisition costs that were incurred that are deferrable. The remaining provisional ceding commissions related to 2019 and 2018 were recorded as unearned reinsurance commission and were recognized as an offset to other acquisition costs based in proportion to the premiums earned or coverage provided by the reinsurance contracts. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. With the adoption of ASU 2016-13, we recorded a $256,000 opening credit loss allowance adjustment on January 1, 2020. As of December 31, 2020, our ending credit loss allowance related to reinsurance recoverables was $386,000. (t) Assessments We record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2020 and 2019, we did not receive any significant assessments from regulatory authorities in the states in which our insurance subsidiaries operate. (u) Accounting Pronouncements Recently Adopted Policies In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). This update modifies the existing disclosure requirements on fair value measurements in Topic 820 by changing requirements regarding Level 1, Level 2 and Level 3 investments. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual periods. Entities are permitted to early adopt any removed or modified disclosures of ASU 2018-13 immediately and delay the adoption of the additional disclosures until their effective date. We have early adopted the guidance on removed and modified disclosures and adopted the remainder of the guidance on January 1, 2020, which has not impacted the accompanying consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). This update simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted for certain requirements. We adopted this guidance in the course of performing our annual assessment of goodwill during the fourth quarter of 2020 using data as of September 30, 2020. As of December 31, 2020, there was no impact on our consolidated financial statements as the result of the adoption of this standard. We have updated our related disclosures accordingly. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update is intended to replace the incurred loss impairment methodology in current GAAP with a method that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will provide users with more useful information regarding the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In addition, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this guidance as of January 1, 2020 using a modified cumulative effect adjustment to the opening balance of retained earning for 2020, with no adjustment to prior periods presented. The cumulative effect to the opening balance of retained earnings for 2020 was a decrease of $262,000, net of reversals from allowances recorded under prior guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). This update is intended to replace existing lease guidance by requiring a lessee to recognize substantially all leases (whether operating or finance leases) on the balance sheet as a right-of-use asset and an associated lease liability. Short-term leases of 12 months or less are excluded from this standard. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. We adopted this standard as of January 1, 2019 using a modified retrospective approach, which allowed us to initially apply the new lease standard at the adoption date and recognize a cumulate effect adjustment to the opening balance of retained earnings for 2019, with no adjustment to prior periods presented. The cumulative effect adjustment to the opening balance of retained earnings was zero. The adoption of the standard resulted in the recognition of a right-of-use asset of $482,000 at January 1, 2019, which was recorded within Other Assets on our Consolidated Balance Sheets, and a corresponding lease liability of $482,000 at January 1, 2019 for our operating lease. Additionally, we elected the practical expedients that permit the exclusions of leases considered to be short-term and with value that falls under our capitalization threshold. We also elected the practical expedient of not segregating lease and nonlease components |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2020 and 2019: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 U.S. government and agency securities $ 129,417 $ 1,147 $ 139 $ 130,425 Foreign government 1,374 142 — 1,516 States, municipalities and political subdivisions 132,336 2,318 272 134,382 Public utilities 29,526 482 28 29,980 Corporate securities 285,814 6,633 118 292,329 Mortgage-backed securities 285,639 3,039 466 288,212 Asset-backed securities 56,351 525 219 56,657 Redeemable preferred stocks 6,257 266 13 6,510 Total fixed maturities $ 926,714 $ 14,552 $ 1,255 $ 940,011 December 31, 2019 U.S. government and agency securities $ 120,260 $ 749 $ 193 $ 120,816 Foreign government 3,975 97 1 4,071 States, municipalities and political subdivisions 131,203 2,611 63 133,751 Public utilities 24,660 700 26 25,334 Corporate securities 281,892 7,123 143 288,872 Mortgage-backed securities 248,206 4,174 477 251,903 Asset-backed securities 56,487 683 41 57,129 Redeemable preferred stocks 2,915 72 2 2,985 Total fixed maturities $ 869,598 $ 16,209 $ 946 $ 884,861 Equity securities are summarized as follows at: December 31, 2020 December 31, 2019 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 152 2.0 % $ 65,453 56.1 % Public utilities — — 3,663 3.1 Other common stocks — — 44,492 38.2 Non-redeemable preferred stocks 7,293 98.0 3,002 2.6 Total equity securities $ 7,445 100.0 % $ 116,610 100.0 % When we sell investments, we calculate the gain or loss realized on the sale by comparing the sales price (fair value) to the cost or adjusted/amortized cost of the security sold. We determine the cost or adjusted/amortized cost of the security sold using the specific-identification method. The following table details our realized gains (losses) by major investment category for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Gains Fair Value at Sale Gains Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 32,460 $ 678,736 $ 1,678 $ 209,302 $ 373 $ 41,776 Equity securities 38,325 131,178 94 814 2,828 6,073 Short-term investments — 1,346 — 3,863 — — Total realized gains 70,785 811,260 1,772 213,979 3,201 47,849 Fixed maturities (478) 16,552 (324) 43,573 (1,376) 135,944 Equity securities (3,602) 13,805 (219) 1,387 (170) 995 Short-term investments (14) 1,258 (1) 1,035 — — Total realized losses (4,094) 31,615 (544) 45,995 (1,546) 136,939 Net realized investment gains $ 66,691 $ 842,875 $ 1,228 $ 259,974 $ 1,655 $ 184,788 The table below summarizes our fixed maturities at December 31, 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations. December 31, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 66,420 7.2 % $ 66,921 7.1 % Due after one year through five years 209,129 22.6 % 214,742 22.8 % Due after five years through ten years 295,036 31.8 % 299,230 31.9 % Due after ten years 14,139 1.5 % 14,249 1.5 % Asset and mortgage-backed securities 341,990 36.9 % 344,869 36.7 % Total $ 926,714 100.0 % $ 940,011 100.0 % The following table summarizes our net investment income by major investment category: Year Ended December 31, 2020 2019 2018 Fixed maturities $ 21,789 $ 23,267 $ 22,043 Equity securities 2,155 2,474 2,206 Cash and cash equivalents 1,329 4,118 1,953 Other investments 38 1,253 942 Other assets 178 117 57 Investment income 25,489 31,229 27,201 Investment expenses (1,364) (1,084) (1,031) Net investment income $ 24,125 $ 30,145 $ 26,170 Portfolio monitoring We have a quarterly portfolio monitoring process to identify and evaluate each fixed-income security whose carrying value may be impaired as the result of a credit loss. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security's entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income. During the year-ended December 31, 2020, we determined that none of our fixed-income securities shown in the table below that are in an unrealized loss position have declines in fair value that are reflected as a result of credit losses. Therefore, no credit loss allowance was recorded at December 31, 2020. The issuers of our debt security investments continue to make interest payments on a timely basis. We do not intend to sell, nor is it likely that we would be required to sell the debt securities before we recover our amortized cost basis. Equity securities are reported at fair value with changes in fair value recognized in the valuation of equity investments. The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities (1) Gross Unrealized Losses Fair Value Number of Securities (1) Gross Unrealized Losses Fair Value December 31, 2020 U.S. government and agency securities 44 $ 129 $ 40,341 18 $ 10 $ 10,482 Foreign governments — — — — — — States, municipalities and political subdivisions 22 272 30,538 — — — Public utilities 8 28 9,472 — — — Corporate securities 40 116 25,052 3 2 753 Mortgage-backed securities 87 397 100,171 8 69 3,479 Asset backed securities 21 207 17,682 1 12 988 Redeemable preferred stocks 5 13 358 — — — Total fixed maturities 227 $ 1,162 $ 223,614 30 $ 93 $ 15,702 December 31, 2019 U.S. government and agency securities 37 $ 89 $ 26,372 39 $ 104 $ 31,364 Foreign governments — — — 2 1 600 States, municipalities and political subdivisions 31 61 14,508 2 2 1,262 Public utilities 9 25 4,626 2 1 250 Corporate securities 42 124 22,435 27 19 9,605 Mortgage-backed securities 89 322 59,101 50 155 12,738 Asset-backed securities 15 34 8,447 5 7 1,259 Redeemable preferred stocks — — — 1 2 97 Total fixed maturities 223 $ 655 $ 135,489 128 $ 291 $ 57,175 (1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands. Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on our Consolidated Balance Sheets at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect our estimates of the assumptions that market participants would use in valuing the assets and liabilities. We estimate the fair value of our investments using the closing prices on the last business day of the reporting period, obtained from active markets such as the NYSE, Nasdaq and NYSE American. For securities for which quoted prices in active markets are unavailable, we use a third-party pricing service that utilizes quoted prices in active markets for similar instruments, benchmark interest rates, broker quotes and other relevant inputs to estimate the fair value of those securities for which quoted prices are unavailable. Our estimates of fair value reflect the interest rate environment that existed as of the close of business on December 31, 2020 and 2019. Changes in interest rates subsequent to December 31, 2020 may affect the fair value of our investments. The fair value of our fixed maturities is initially calculated by a third-party pricing service. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, currency rates and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial information. The valuation models take into account, among other things, market observable information as of the measurement date, as described above, as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector and, where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience. Any change in the estimated fair value of our fixed-income securities would impact the amount of unrealized gain or loss we have recorded, which could change the amount we have recorded for our investments and other comprehensive income (loss) on our Consolidated Balance Sheet as of December 31, 2020. The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2020 and 2019: Total Level 1 Level 2 Level 3 December 31, 2020 U.S. government and agency securities $ 130,425 $ — $ 130,425 $ — Foreign government 1,516 — 1,516 — States, municipalities and political subdivisions 134,382 — 134,382 — Public utilities 29,980 — 29,980 — Corporate securities 292,329 — 292,329 — Mortgage-backed securities 288,212 — 288,212 — Asset-backed securities 56,657 — 56,657 — Redeemable preferred stocks 6,510 1,554 4,956 — Total fixed maturities 940,011 1,554 938,457 — Mutual funds 152 152 — — Public utilities — — — — Other common stocks — — — — Non-redeemable preferred stocks 7,293 7,293 — — Total equity securities 7,445 7,445 — — Other investments (1) 38,002 300 37,702 — Total investments $ 985,458 $ 9,299 $ 976,159 $ — December 31, 2019 U.S. government and agency securities $ 120,816 $ — $ 120,816 $ — Foreign government 4,071 — 4,071 — States, municipalities and political subdivisions 133,751 — 133,751 — Public utilities 25,334 — 25,334 — Corporate securities 288,872 — 288,872 — Mortgage-backed securities 251,903 — 251,903 — Asset-backed securities 57,129 — 57,129 — Redeemable preferred stocks 2,985 747 2,238 — Total fixed maturities 884,861 747 884,114 — Mutual Funds 65,453 65,453 — — Public utilities 3,663 3,663 — — Other common stocks 44,492 44,492 — — Non-redeemable preferred stocks 3,002 3,002 — — Total equity securities 116,610 116,610 — — Other investments (1) 499 300 199 — Total investments $ 1,001,970 $ 117,657 $ 884,313 $ — (1) Other long-term investments included in the fair value hierarchy exclude these other limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; this is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). There were no financial instruments measured on a non-recurring basis at December 31, 2020 and 2019. The carrying amounts for the following financial instrument categories approximate their fair values at December 31, 2020 and 2019, because of their short-term nature: cash and cash equivalents, accrued investment income, premiums receivable, reinsurance recoverable, reinsurance payable, other assets, and other liabilities. The carrying amount of the notes payable to the Florida State Board of Administration, Truist Financial Corporation (Truist) (formerly known as Branch Banking & Trust Corporation or BB&T), and our senior notes approximate fair value as the interest rates and terms are variable. We are responsible for the determination of fair value and the supporting assumptions and methodologies. We have implemented a system of processes and controls designed to provide assurance that our assets and liabilities are appropriately valued. For fair values received from third parties, our processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. At the end of each quarter, we determine whether we need to transfer the fair values of any securities between levels of the fair value hierarchy and, if so, we report the transfer as of the end of the quarter. During 2020, we transferred no investments between levels. For our investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, we obtain the fair values from our investment custodians, which use a third-party valuation service. The valuation service calculates prices for our investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, and adds final spreads to the U.S. Treasury curve at 3 p.m. (ET) as of quarter end. Since the inputs the valuation service uses in its calculations are not quoted prices in active markets, but are observable inputs, they represent Level 2 inputs. Other investments We acquired investments in limited partnerships, recorded in the other investments line of our Consolidated Balance Sheets and these investments are currently being accounted for at fair value utilizing a net asset value per share equivalent methodology. The information presented in the table below is as of December 31, 2020 and 2019: Book Value Unrealized Gain Unrealized Loss Fair Value December 31, 2020 Limited partnership investments (1) $ 9,532 $ 225 $ 164 $ 9,593 Certificates of deposit 300 — — 300 Short-term investments 37,703 — 1 37,702 Total other investments $ 47,535 $ 225 $ 165 $ 47,595 December 31, 2019 Limited partnership investments (1) $ 7,568 $ 2,236 $ 51 $ 9,753 Certificates of deposit 300 — — 300 Short-term investments 199 — — 199 Total other investments $ 8,067 $ 2,236 $ 51 $ 10,252 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to seven years. During 2020, we decreased the size of our equity portfolio in order to mitigate potential surplus declines from market volatility for each of our insurance subsidiaries. As a result, we invested a portion of the proceeds into short-term investments, driving the increase year-over-year. Restricted Cash We are required to maintain assets on deposit with various regulatory authorities to support our insurance operations. The cash on deposit with state regulators is available to settle insurance liabilities. We also use trust funds in certain reinsurance transactions. The following table presents the components of restricted assets: December 31, 2020 2019 Trust funds $ 61,142 $ 70,668 Cash on deposit (regulatory deposits) 936 920 Total restricted cash $ 62,078 $ 71,588 In addition to the cash held on deposit described above, we also have securities on deposit with regulators, which are presented within our Fixed Maturities or Other Investments lines on the Consolidated Balance Sheets, dependent upon if they are short-term or long-term in nature. The table below shows the carrying value of those securities held on deposit with regulators. December 31, 2020 2019 Invested assets on deposit (regulatory deposits) $ 4,023 $ 4,599 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic EPS is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the vesting of outstanding restricted stock awards, restricted stock units, performance stock units and stock options. The following table shows the computation of basic and diluted EPS for the years ended December 31, 2020, 2019 and 2018: Year Ended 2020 2019 2018 Numerator: Net income (loss) attributable to UIHC common stockholders $ (96,454) $ (29,872) $ 290 Denominator: Weighted-average shares outstanding 42,864,166 42,763,423 42,650,629 Effect of dilutive securities — — 188,257 Weighted-average diluted shares 42,864,166 42,763,423 42,838,886 Earnings available to UIHC common stockholders per share Basic $ (2.25) $ (0.70) $ 0.01 Diluted $ (2.25) $ (0.70) $ 0.01 See Note 18 for additional information on the stock grants related to dilutive securities. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS We anticipate that our deferred policy acquisition costs will be fully recoverable in the near term. The table below depicts the activity with regard to deferred policy acquisition costs: 2020 2019 Balance at January 1 $ 104,572 $ 105,582 Policy acquisition costs deferred 294,423 288,842 Amortization (287,216) (278,161) Unearned ceding commission (37,365) (11,691) Balance at December 31 $ 74,414 $ 104,572 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: Year Ended 2020 2019 Land $ 2,114 $ 2,114 Building and building improvements (construction in progress of $0 and $2,180, respectively) 9,211 11,315 Computer hardware and software (software in progress of $1,485 and $6,317, respectively) 41,910 33,219 Office furniture and equipment 3,172 3,260 Leasehold improvements 768 20 Leased vehicles (1) 2,346 1,693 Total, at cost 59,521 51,621 Less: accumulated depreciation and amortization (25,334) (18,893) Property and equipment, net $ 34,187 $ 32,728 (1) Includes vehicles under capital leases. See Note 11 of these Notes to Consolidated Financial Statements for further information on leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying amount of goodwill, both at December 31, 2020 and 2019 was $73,045,000. There was no goodwill acquired or disposed of during the years ended December 31, 2020 and 2019. We completed our most recent goodwill impairment testing during the fourth quarter of 2020 and determined that there was no impairment in the value of the asset as of December 31, 2020. The future potential impacts of COVID-19 on the operating results of our reporting units are uncertain, as we continue to monitor the global economic volatility. However, we remain committed to our strategic plan to realize our long-term forecasts. No impairment loss in the value of goodwill was recognized during the years ended December 31, 2020, 2019 and 2018. Additionally, there was no accumulated impairment related to goodwill at December 31, 2020 or 2019. Intangible Assets The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at: December 31, 2020 December 31, 2019 Intangible assets subject to amortization $ 18,173 $ 22,440 Indefinite-lived intangible assets (1) 3,757 3,639 Total $ 21,930 $ 26,079 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. Intangible assets subject to amortization consisted of the following: Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2020 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 6.1 34,661 (19,116) 15,545 Trade names acquired 3.3 6,381 (3,753) 2,628 Total $ 83,830 $ (65,657) $ 18,173 2019 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 6.8 34,661 (15,658) 19,003 Trade names acquired 4.3 6,381 (2,944) 3,437 Total $ 83,830 $ (61,390) $ 22,440 No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the years ended December 31, 2020 and 2019 . Amortization expense of our intangible assets was $4,267,000, $5,355,000 and $13,920,000 for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2021 $ 3,555 2022 3,246 2023 3,246 2024 2,640 2025 2,438 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE Our reinsurance program is designed, utilizing our risk management methodology, to address our exposure to catastrophes. Our program provides reinsurance protection for catastrophes including hurricanes, tropical storms and tornadoes. These reinsurance agreements are part of our catastrophe management strategy, which is intended to provide our stockholders an acceptable return on the risks assumed in our property business, and to reduce variability of earnings, while providing protection to our policyholders. Although reinsurance agreements contractually obligate our reinsurers to reimburse us for the agreed-upon portion of our gross paid losses, they do not discharge our primary liability. Our program includes excess of loss, aggregate excess of loss and quota share treaties. Our excess of loss treaty, in effect from June 1, 2020 through May 31, 2021, provides coverage for catastrophe losses from named or numbered windstorms and earthquakes up to an exhaustion point of approximately $3,300,000,000. In addition to this treaty, we had an aggregate excess of loss treaty, effective January 1, 2020, which provided coverage for all catastrophe perils other than hurricanes, tropical storms, tropical depressions and earthquakes. We ceded $30,000,000 of catastrophe losses under this treaty for the year ended December 31, 2020. In addition, we had an all other perils excess of loss treaty, effective January 1, 2020, which provided coverage for all catastrophe perils other than hurricanes, tropical storms, tropical depressions, and earthquakes up to an exhaustion point of approximately $110,000,000. The quota share agreements effective June 1, 2020 through May 31, 2021, provide coverage for all catastrophe perils and attritional losses incurred by our insurance subsidiaries UPC and FSIC, and were extended to cover ACIC effective December 31, 2020 through May 31, 2022 with an additional 8% coverage for UPC and FSIC. For all catastrophe perils, the quota share agreement provides ground-up protection effectively reducing our retention for catastrophe losses. Finally, effective December 31, 2020, we entered into a quota share reinsurance agreement with Homeowners Choice Property and Casualty Insurance Company, Inc (HCP). Under the terms of this agreement, HCP will provide 69.5% quota share reinsurance on in-force, new and renewal policies in Connecticut, Massachusetts, New Jersey, and Rhode Island effective December 31, 2020, until June 1, 2021. Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2020 2019 Reinsurance recoverable on unpaid losses and LAE $ 674,746 $ 482,315 Reinsurance recoverable on paid losses and LAE 146,410 67,821 Reinsurance recoverable $ 821,156 $ 550,136 We write the majority of flood insurance under an agreement with the National Flood Insurance Program. We cede 100% of the premiums written and the related risk of loss to the federal government. We earn commissions for the issuance of flood policies based upon a fixed percentage of net written premiums and the processing of flood claims based upon a fixed percentage of incurred losses, and we can earn additional commissions by meeting certain growth targets for the number of in-force policies. We recognized commission revenue from our flood program of $1,467,000, $1,506,000, and $1,575,000 for the years ended December 31, 2020, 2019, and 2018, respectively. The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Loss: Year ended December 31, 2020 2019 2018 Premium written: Direct $ 1,411,558 $ 1,278,504 $ 1,148,190 Assumed 45,305 101,764 104,211 Ceded (755,871) (633,275) (512,270) Net premium written $ 700,992 $ 746,993 $ 740,131 Change in unearned premiums: Direct $ (66,483) $ (59,660) $ (49,048) Assumed 16,600 12,918 (22,392) Ceded 114,554 52,149 20,585 Net decrease (increase) $ 64,671 $ 5,407 $ (50,855) Premiums earned: Direct $ 1,345,075 $ 1,218,844 $ 1,099,142 Assumed 61,905 114,682 81,819 Ceded (641,317) (581,126) (491,685) Net premiums earned $ 765,663 $ 752,400 $ 689,276 Losses and LAE incurred: Direct $ 1,186,401 $ 1,003,767 $ 1,101,328 Assumed 67,119 44,914 97,444 Ceded (645,204) (549,188) (790,183) Net losses and LAE incurred $ 608,316 $ 499,493 $ 408,589 Ceded losses incurred increased by $96,016,000 during the year ended December 31, 2020, compared to the year ended December 31, 2019, primarily as a result of thirteen named storms that made landfall in 2020. Of these storms, five exceeded the retention threshold of our excess of loss contracts, resulting in total incurred and IBNR ceded losses of $142,145,000 to these treaties. We have billed and received reinsurance recoveries for losses that we incurred on these storms and expect to receive additional recoveries during 2021. The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2020 2019 2018 Unpaid losses and LAE: Direct $ 1,042,994 $ 716,559 $ 579,710 Assumed 46,972 43,798 81,493 Gross unpaid losses and LAE 1,089,966 760,357 661,203 Ceded (674,746) (482,315) (477,870) Net unpaid losses and LAE $ 415,220 $ 278,042 $ 183,333 Unearned premiums: Direct $ 703,612 $ 637,128 $ 577,467 Assumed 20,326 36,927 49,846 Gross unearned premiums 723,938 674,055 627,313 Ceded (384,588) (270,034) (217,885) Net unearned premiums $ 339,350 $ 404,021 $ 409,428 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expense | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE) We generally use the term loss(es) to collectively refer to both loss and LAE. We establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future. Our policy is to establish these loss reserves after considering all information known to us at each reporting period. At any given point in time, our loss reserve represents our best estimate of the ultimate settlement and administration cost of our insured claims incurred and unpaid. Since the process of estimating loss reserves requires significant judgment due to a number of variables, such as fluctuations in inflation, judicial decisions, legislative changes and changes in claims handling procedures, our ultimate liability will likely differ from these estimates. We revise our reserve for unpaid losses as additional information becomes available, and reflect adjustments, if any, in our earnings in the periods in which we determine the adjustments are necessary. General Discussion of the Loss Reserving Process Reserves for unpaid losses fall into two categories: case reserves and reserves for claims incurred but not reported. • Case reserves - When a claim is reported, we establish an automatic minimum case reserve for that claim type that represents our initial estimate of the losses that will ultimately be paid on the reported claim. Our initial estimate for each claim is based upon averages of loss payments for our prior closed claims made for that claim type. Then, our claims personnel perform an evaluation of the type of claim involved, the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary. As claims mature, we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss, the results of on-site reviews and any other information we gather while reviewing the claims. • Reserves for losses incurred but not reported (IBNR reserves) - Our IBNR reserves include true IBNR reserves plus “bulk” reserves. Bulk reserves represent additional amounts that cannot be allocated to particular claims, but which are necessary to estimate ultimate losses on reported and unreported claims. We estimate our IBNR reserves by projecting the ultimate losses using the methods discussed below and then deducting actual loss payments and case reserves from the projected ultimate losses. We review and adjust our IBNR reserves on a quarterly basis based on information available to us at the balance sheet date. When we establish our reserves, we analyze various factors such as our historical loss experience and that of the insurance industry, claims frequency and severity, our business mix, our claims processing procedures, legislative enactments, judicial decisions and legal developments in imposition of damages, and general economic conditions, including inflation. A change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves, and the difference could be material. Due to the interaction of the aforementioned factors, there is no precise method for evaluating the impact of any one specific factor in isolation, and an element of judgment is ultimately required. Due to the uncertain nature of any projection of the future, the ultimate amount we will pay for losses will be different from the reserves we record. However, in our judgment, we employ techniques and assumptions that are appropriate, and the resulting reserve estimates are reasonable, given the information available at the balance sheet date. To determine our ultimate losses, we first use multiple actuarial techniques to establish a range of reasonable estimates. These techniques are in line with actuarial standards of practice and actuarial literature. A brief overview of each of these techniques is provided below. We then make additional qualitative considerations for many of the previously mentioned factors and select a point within this range. These ultimate loss estimates include reserves for both reported and unreported claims. Estimation of the Reserves for Unpaid Losses and Allocated LAE We calculate our estimate of ultimate losses with the following actuarial methods. The methods are applied to paid and incurred loss data. Incurred losses are defined as paid losses plus case reserves. For our loss reserving process, the word “segment” refers to a subgrouping of our claims data, such as by geographic area and/or by particular line of business; it does not refer to operating segments. • Development Method - The development method is based upon the assumption that the relative change in a given year’s loss estimates from one evaluation point to the next is similar to the relative change in prior years’ reported loss estimates at similar evaluation points. In utilizing this method, actual annual historical loss data is evaluated. Loss development factors (LDFs) are calculated to measure the change in cumulative losses from one evaluation point to the next. These historical LDFs and comparable industry benchmark factors form the basis for selecting the LDFs used in projecting the current valuation of losses to an ultimate basis. When applied to incurred loss data, the implicit assumption is that the relative adequacy of case reserves has been consistent over time, and that there have been no material changes in the rate at which claims have been reported. Applying this method to paid losses avoids potential distortions in the data due to changes in case reserving methodology, but also loses any potentially useful information contained in the current case reserves. The paid development method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time. • Expected Loss Method - Ultimate loss projections are based upon a prior measure of the anticipated losses, usually relative to a measure of exposure (such as earned house years). An expected loss cost is applied to each year’s measure of exposure to determine estimated ultimate losses for that year. Actual losses are not considered in this calculation. Because the ultimate loss estimates do not change unless the exposures or loss costs change, this method has the advantage of being stable over time. However, the advantage of this stability is offset by a lack of responsiveness since this method does not consider actual loss experience as it emerges. This method assumes that the loss cost per unit of exposure is a good indication of ultimate losses. It can be entirely dependent on pricing assumptions (e.g., historical experience adjusted for loss trend). • Bornhuetter-Ferguson Method - The Bornhuetter-Ferguson (B-F) method is a credibility weighting procedure that blends the responsiveness of the Development Method with the stability of the Expected Loss Method by setting ultimate losses equal to actual losses plus the expected unreported losses which are based on the Expected Loss Method. As an experience year matures, actual losses gradually move closer to their ultimate levels so reliance on the Expected Loss Method can be reduced. • Paid-to-Paid Development Method - In addition to the aforementioned methods, we also rely upon the Paid-to-Paid Development Method to project ultimate unallocated loss adjustment expense (ULAE). Ratios of paid ULAE to paid loss and allocated loss adjustment expense are compiled by calendar year and a paid-to-paid ratio selection is made. The selected ratio is applied to the estimated IBNR amounts and one half of this ratio is applied to case reserves. This method is derived from rule of thumb that half of ULAE is incurred when a claim is opened and the other half is incurred over the remaining life of the claim. Reliance and Selection of Methods Each of these methods has its own strengths and weaknesses that depend upon the circumstances of the segment and the age of the claims experience we analyze. The nature of our book of business allows us to place substantial, but not exclusive, reliance on the loss development methods, and the selected LDFs, represent the most critical aspect of our loss reserving process. We use the same set of LDFs in the methods during our loss reserving process that we also use to calculate the premium necessary to pay expected ultimate losses. Reasonably-Likely Changes in Variables As previously noted, we evaluate several factors when exercising our judgment in the selection of the LDFs that ultimately drive the determination of our loss reserves. The process of establishing our reserves is complex and necessarily imprecise, as it involves using judgment that is affected by many variables. We believe a reasonably-likely change in almost any of these aforementioned factors could have an impact on our reported results, financial condition and liquidity. However, we do not believe any reasonably likely changes in the frequency or severity of claims would have a material impact on us. On an annual basis, our consulting actuary issues a statement of actuarial opinion that documents the actuary’s evaluation of the adequacy of our unpaid loss obligations under the terms of our policies. We review the analysis underlying the consulting actuary’s opinion and compare the projected ultimate losses to our own estimates to ensure that the reserve for unpaid losses recorded at each annual balance sheet date is based upon all internal and external factors related to known and unknown claims against us and to ensure our reserve is within guidelines promulgated by the National Association of Insurance Commissioners (NAIC). We maintain an in-house claims staff that monitors and directs all aspects of our claims process. We assign the fieldwork to our wholly-owned claims subsidiary, or to third-party claims adjusting companies, none of whom have the authority to settle or pay any claims on our behalf. The third-party claims adjusting companies conduct inspection of the damaged property and prepare initial estimates. We review the inspection reports and initial estimates to determine the amounts to be paid to the policyholder in accordance with the terms and conditions of the policy in effect at the time that the policyholder incurs the loss. We maintain strategic relationships with multiple claims adjusting companies that we can engage should we need additional non-catastrophe claims servicing capacity. We believe the combination of our internal resources and relationships with external claims servicing companies provide an adequate level of claims servicing in the event catastrophes affect our policyholders. The following is information about incurred claims development and paid claims development as of December 31, 2020, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liability plus expected development on reported claims included within the net incurred claims amounts. The incurred claims development and paid claims development data reflect the acquisitions of FSIC, IIC, and AmCo in February 2015, April 2016, and April 2017, respectively, on a retrospective basis (includes FSIC, IIC and AmCo data for years prior to our acquisition of the insurance affiliates). The information about incurred claims development and paid claims development for the years ended December 31, 2011 to 2019 is presented as supplementary information. During 2019, three of our insurance subsidiaries, UPC, FSIC and ACIC, entered into an intercompany property and casualty reinsurance pooling arrangement. Under this arrangement, the participating companies share substantially all business that is written and allocate the combined premiums, losses and expenses. The Company performed an analysis and concluded that the nature of our claims cash flows and development patterns, along with the structure of our reinsurance program, are similar among all products. Therefore, we have elected to reclassify our prior year disclosures of three separate tables into one single property and casualty homeowners’ insurance table which is consistent with our single reporting segment. Property & Casualty Homeowners’ Insurance $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2020 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Audited Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 77,706 $ 79,142 $ 78,763 $ 77,649 $ 79,234 $ 79,985 $ 80,014 $ 80,289 $ 80,199 $ 80,086 $ 24 7,400 2012 — 87,276 88,629 87,963 87,571 86,818 90,817 91,095 90,879 90,890 124 12,048 2013 — — 113,477 106,992 110,268 106,820 106,222 106,132 106,450 106,600 171 8,911 2014 — — — 155,008 154,167 155,729 156,868 156,037 155,956 156,300 331 13,458 2015 — — — — 217,832 236,059 239,784 242,508 242,610 244,109 750 20,337 2016 — — — — — 304,961 294,271 293,785 295,611 297,195 1,801 31,143 2017 — — — — — — 332,339 345,647 359,018 371,447 10,920 86,305 2018 — — — — — — — 360,919 389,841 402,966 7,681 48,440 2019 — — — — — — — — 421,426 387,164 22,533 39,332 2020 — — — — — — — — — 551,945 173,404 44,465 Total $ 2,688,702 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Audited 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 44,547 $ 62,812 $ 69,461 $ 73,215 $ 77,022 $ 79,052 $ 79,480 $ 80,002 $ 80,020 $ 80,062 2012 — 52,394 75,213 79,810 82,908 86,013 90,356 90,580 90,447 90,563 2013 — — 69,615 94,969 99,196 103,441 104,669 105,201 105,686 105,927 2014 — — — 98,762 135,301 147,031 151,954 153,593 154,597 155,287 2015 — — — — 145,180 210,261 227,661 234,018 237,573 240,086 2016 — — — — — 193,876 265,069 280,203 288,425 291,219 2017 — — — — — — 217,983 313,883 327,986 349,380 2018 — — — — — — — 247,365 352,422 380,504 2019 — — — — — — — — 240,533 327,965 2020 — — — — — — — — — 269,580 Total $ 2,290,573 All outstanding liabilities before 2011, net of reinsurance 280 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 398,409 The following is supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 60.1 % 24.9 % 6.4 % 3.8 % 2.1 % 1.9 % 0.4 % 0.2 % 0.1 % 0.1 % The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2020 2019 Net outstanding liabilities Property and Casualty Homeowners’ Insurance $ 398,409 $ 264,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 398,409 $ 264,556 Reinsurance recoverable on unpaid claims Property and Casualty Homeowners’ Insurance 674,746 482,315 Total reinsurance recoverable on unpaid claims 674,746 482,315 Unallocated claims adjustment expenses 16,811 13,486 Total gross liability for unpaid claims and claims adjustment expense $ 1,089,966 $ 760,357 The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2020 2019 2018 Balance at January 1 $ 760,357 $ 661,203 $ 482,232 Less: reinsurance recoverable on unpaid losses 482,315 477,870 305,673 Net balance at January 1 $ 278,042 $ 183,333 $ 176,559 Incurred related to: Current year 615,102 466,359 404,271 Prior years (6,786) 33,134 4,318 Total incurred $ 608,316 $ 499,493 $ 408,589 Paid related to: Current year 320,389 275,488 283,821 Prior years 150,749 129,296 117,994 Total paid $ 471,138 $ 404,784 $ 401,815 Net balance at December 31 $ 415,220 $ 278,042 $ 183,333 Plus: reinsurance recoverable on unpaid losses 674,746 482,315 477,870 Balance at December 31 $ 1,089,966 $ 760,357 $ 661,203 Composition of reserve for unpaid losses and LAE: Case reserves $ 392,717 $ 300,858 $ 270,601 IBNR reserves 697,249 459,499 390,602 Balance at December 31 $ 1,089,966 $ 760,357 $ 661,203 Based upon our internal analysis and our review of the statement of actuarial opinion provided by our actuarial consultants, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date. As reflected by our losses incurred related to prior years, favorable development experienced in 2020 was primarily the result of better than expected non-catastrophe losses experienced. The favorable development also came as a result of strengthening of our case reserves throughout 2019 based on a review of historical loss trends and uncertainty surrounding late |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Long-Term Debt The table below presents all long-term debt outstanding as of December 31, 2020 and 2019: Effective Interest Rate Carrying Value at Maturity December 31, 2020 December 31, 2019 Senior Notes December 15, 2027 6.25% $ 150,000 $ 150,000 Florida State Board of Administration Note July 1, 2026 0.66% 6,765 7,647 Truist Term Note Payable May 26, 2031 1.81% 3,611 3,958 Total long-term debt $ 160,376 $ 161,605 At December 31, 2020, the annual maturities of our long-term debt were as follows: Amount 2021 $ 1,523 2022 1,523 2023 1,523 2024 1,523 2025 1,523 Thereafter 152,761 Total debt $ 160,376 Senior Notes On December 13, 2017, we issued $150,000,000 of 10-year senior notes (the Senior Notes) that will mature on December 15, 2027 and bear interest at a rate equal to 6.25% per annum payable semi-annually on each June 15 and December 15, commencing June 15, 2018. The Senior Notes are senior unsecured obligations of the Company. We may redeem the Senior Notes at our option, at any time and from time to time in whole or in part, prior to September 15, 2027, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon from the date of redemption to the date that is three months prior to maturity. On or after that date, we may redeem the Senior Notes at par. Florida State Board of Administration Note On September 22, 2006, we issued a $20,000,000, 20-year note payable to the Florida State Board of Administration (the SBA Note). For the first three years of the SBA note we were required to pay interest only. On October 1, 2009, we began to repay the principal in addition to interest. The SBA Note bears an annual interest rate equivalent to the 10-year Constant Maturity Treasury rate (as defined in the SBA Note agreement), which resets quarterly. Truist Term Note On May 26, 2016, we issued a $5,200,000, 15-year term note payable to Truist (the Truist Note) with the intent to use the funds to purchase, renovate, furnish and equip our principal executive office. The Truist Note bears interest at 1.65% in excess of the one-month LIBOR which resets monthly. LIBOR is expected to be phased out by the end of 2021. In the event of default, Truist may, among other things, declare its loan immediately due and payable, require us to pledge additional collateral to the bank, and take possession of and foreclose upon our principal executive office, which has been pledged to the bank as security for the loan. Financial Covenants Senior Notes - Our Senior Notes provide that the Company and its subsidiaries shall not incur any indebtedness unless no default exists and the Company’s leverage ratio as of the last day of any annual or quarterly period (the balance sheet date) immediately preceding the date on which such additional indebtedness is incurred would have been no greater than 0.3:1, determined on a pro forma basis as if the additional indebtedness and all other indebtedness incurred since the immediately preceding balance sheet date had been incurred and the proceeds therefrom applied as of such day. The Company and its subsidiaries also may not create, assume, incur or permit to exist any indebtedness for borrowed money that is secured by a lien on the voting stock of any significant subsidiary without securing the Senior Notes equally. The Company may not issue, sell, assign, transfer or otherwise dispose of, directly or indirectly, any of the capital stock of the Company’s significant subsidiaries as of the issue date of the Senior Notes (except to the Company or to one or more of the Company’s other subsidiaries, or for the purpose of qualifying directors or as may be required by law or regulation), subject to certain exceptions. At December 31, 2020, we were in compliance with the covenants in the Senior Notes. SBA Note - Our SBA Note requires that UPC maintain either a 2:1 ratio of net written premium to surplus, or net writing ratio, or a 6:1 ratio of gross written premium to surplus, or gross writing ratio, to avoid additional interest penalties. The SBA Note agreement defines surplus for the purpose of calculating the required ratios as the $20,000,000 of capital contributed to UPC under the agreement plus the outstanding balance of the note. Should UPC fail to exceed either a net writing ratio of 1.5:1 or a gross writing ratio of 4.5:1, UPC's interest rate will increase by 450 basis points above the 10-year Constant Maturity Treasury rate, which was 0.66% at the end of December 2020. Any other writing ratio deficiencies result in an interest rate penalty of 25 basis points above the stated rate of the note. Our SBA Note further provides that the Florida State Board of Administration may, among other things, declare its loan immediately due and payable upon any default existing under the SBA Note; however, any payment is subject to approval by the insurance regulatory authority. At December 31, 2020, we were in compliance with the covenants in the SBA Note. Truist Note - Our Truist Note requires that, at all times while there has been no losses from our insurance subsidiaries' operations (non-recurring losses), we will maintain a minimum cash flow coverage ratio of 1.2:1. The cash flow coverage ratio is defined as the ratio of our cash flow to debt service charges. This ratio will be tested annually, based on our audited financial statements. For the one-year period following a non-recurring loss, we are required to maintain a minimum cash flow coverage ratio of 1.0:1. This covenant will only be effective if the pre non-recurring losses test is failed, and is only available and effective for one annual test period. Thereafter, the non-recurring loss cash flow coverage ratio of 1.2:1 will immediately apply. At the time of the most recent annual test period, December 31, 2020, we were not in compliance with the minimum cash flow coverage ratio covenant in the Truist Note. As a result, the Company has obtained a waiver for the period ending December 31, 2020. In addition, the Truist Note requires that we establish and maintain with Truist at all times during the term of the loan a non-interest bearing demand deposit account with a minimum balance of $500,000, and an interest-bearing account with a minimum balance of $1,500,000. In the event of default, Truist may, among other things, declare its loan immediately due and payable, require us to pledge additional collateral to the bank, and take possession of and foreclose upon our corporate headquarters, which has been pledged to the bank as security for the loan. At December 31, 2020, we were in compliance with the covenants in the Truist Note other than the minimum cash flow coverage ratio covenant. Debt Issuance Costs The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the years ended December 31, 2020 and 2019: 2020 2019 Balance at January 1, $ 2,673 $ 3,010 Additions — — Amortization (338) (337) Balance at December 31, $ 2,335 $ 2,673 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company files a consolidated federal income tax return with all eligible subsidiaries. Since we have less than an 80% interest in JIC, JIC is not eligible to file on a consolidated basis with UIHC. The following table summarizes the provision for income taxes: Year Ended December 31, 2020 2019 2018 Federal: Current $ (27,310) $ 58 $ (1,510) Deferred (6,611) (4,520) (1,240) Benefit for Federal income tax expense (33,921) (4,462) (2,750) State: Current 598 1,100 (654) Deferred (3,282) 241 (1,229) Provision (benefit) for State income tax expense (2,684) 1,341 (1,883) Benefit for income taxes $ (36,605) $ (3,121) $ (4,633) The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2020 2019 2018 Expected income tax expense at federal rate $ (27,741) $ (6,847) $ (875) State tax expense, net of federal deduction benefit (3,603) (882) (1,205) Dividend received deduction (141) (195) (170) Other permanent items 600 1,349 564 Prior period accrual adjustment 2,230 3,415 (1,391) Net operating loss carryback rate benefit (1) (12,566) — — Municipal tax-exempt interest (280) (587) (735) Change in valuation allowance 5,505 989 — Change in special loss discount account — — (821) Change in tax credit carryforward (721) — — Other, net 112 (363) — Reported income tax benefit $ (36,605) $ (3,121) $ (4,633) (1) Pursuant to the recently enacted CARES Act. On December 22, 2017, the 2017 Tax Act was signed into law. At the time it was enacted, the Tax Act was subject to further clarification and interpretation by the U.S. Treasury Department and Internal Revenue Service. For example, the 2017 Tax Act changed the methodology used by insurance companies to calculate their insurance claims and reserves for tax purposes, including revaluing those tax basis liabilities as of January 1, 2018, based on a methodology and discount factors that had not been published. In November 2018, the U.S. Treasury issued proposed regulations providing the interest rate to be used in determining the tax-related discount on insurance claims and reserves. In June 2019, the U.S Treasury issued final regulations providing for updated discount factors to account for the revised interest rate to be used in determining the discount on insurance claims and reserves. The 2017 Tax Act provided a transitional deferred tax liability (taxes payable over an 8-year period). Since the established transition liability was completely offset by an increase in related deferred tax asset, the adjustment to the final amount when the factors were published in 2018 did not impact the Company’s effective tax rate. In accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 118 (SAB 118), initial changes in deferred taxes resulting from clarification and interpretation of the 2017 Tax Act were recorded in 2018, the period in which the guidance was published. Deferred income taxes, which are included in other assets or other liabilities as appropriate, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2020, we had net operating loss (NOL) carryforwards. The amount and timing of realizing the benefits of NOL carryforwards depend on future taxable income and limitation imposed by tax laws. There is no expiration for $1,168,000 of our federal NOL and $90,963,000 of our state NOL. The remaining $17,143,000 of our federal NOL expires in 2040. The unused business tax credits of $1,686,000 will also expire in 2040. The table below summarizes the significant components of our net deferred tax liability: December 31, 2020 2019 Deferred tax assets: Unearned premiums $ 16,404 $ 19,482 Tax-related discount on loss reserve 4,027 2,300 R&D tax credit carryforward 1,686 — Dual consolidated loss carryforward 6,511 2,181 Net operating loss carryforward 7,900 8,709 Other 1,189 1,451 Total pre-allowance deferred tax assets 37,717 34,123 Valuation allowance (6,494) (989) Total deferred tax assets 31,223 33,134 Deferred tax liabilities: Deferred acquisitions costs (20,191) (27,939) Unrealized gain (3,253) (10,484) Intangible assets (4,553) (5,631) Prepaid expenses (725) (762) Investments (78) (152) Fixed assets (5,618) (2,728) Outside basis in subsidiary (974) — Total deferred tax liabilities (35,392) (47,696) Net deferred tax liability $ (4,169) $ (14,562) We had a valuation allowance of $6,494,000 and $989,000 at December 31, 2020 and 2019, respectively. In assessing the net realizable value of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income (loss), reversals of temporary items, projected future taxable income and tax planning strategies in making this assessment. The current year increase in valuation allowance predominately relates to the impact of current year results on management’s estimate that the net deferred tax assets of certain reinsurance subsidiaries will not be realizable. The statute of limitations related to our consolidated Federal income tax returns and our Florida income tax returns expired for all tax years up to and including 2016; therefore, only the 2017 through 2020 tax years remain subject to examination by taxing authorities. During the year ended December 31, 2020, we were examined by the Internal Revenue Service (IRS) regarding our 2016 income tax return. This examination was closed by the IRS prior to December 31, 2020 with no material adjustment needed. UPC Insurance’s reinsurance subsidiaries, which are based in the Cayman Islands and Bermuda, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiaries are subject to United States income tax on its worldwide income as if it were a U.S. corporation. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2020: December 31, 2020 Balance at January 1 $ — Additions based on tax positions related to current year 683 Balance at December 31 $ 683 |
Statutory Accounting and Regula
Statutory Accounting and Regulation | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Statutory Accounting and Regulation | STATUTORY ACCOUNTING AND REGULATION The insurance industry is heavily regulated. State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers’ ability to pay dividends, specify allowable investment types and investment mixes, and subject insurers to assessments. Our insurance subsidiaries, UPC, ACIC, and JIC are domiciled in Florida, while FSIC and IIC are domiciled in Hawaii and New York, respectively. At December 31, 2020, and during the year then ended, our insurance subsidiaries met all regulatory requirements of the states in which they operate. We did not receive any significant assessments from regulatory authorities in the states in which our insurance subsidiaries operate in 2020. The NAIC has RBC guidelines for insurance companies that are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. Most states, including Florida, Hawaii and New York, have enacted statutory requirements adopting the NAIC RBC guidelines, and insurers having less statutory surplus than required will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. State insurance regulatory authorities could require an insurer to cease operations in the event the insurer fails to maintain the required statutory capital. The state laws of Florida, Hawaii and New York permit an insurer to pay dividends or make distributions out of that part of statutory surplus derived from net operating profit and net realized capital gains. The state laws further provide calculations to determine the amount of dividends or distributions that can be made without the prior approval of the insurance regulatory authorities in those states and the amount of dividends or distributions that would require prior approval of the insurance regulatory authorities in those states. Statutory RBC requirements may further restrict our insurance subsidiaries’ ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause statutory surplus to fall below minimum RBC requirements. Governmental agencies or certain quasi-governmental entities can levy assessments upon us in the states in which we write policies. See Note 2(r) for a description of how we recover assessments imposed upon us. We expense an assessment when the particular governmental agency or quasi-governmental entity levies it upon us; therefore, expected recoveries are not assets and we will record the amounts as income when collected from policyholders. Governmental agencies or certain quasi-governmental entities can also levy assessments upon policyholders, and we collect the amount of the assessments from policyholders as surcharges for the benefit of the assessing agency. We currently collect assessments levied upon policyholders on behalf of Louisiana Citizens Property Insurance Corporation in the amount of 2.60% of written premium and on behalf of Connecticut Healthy Homes Fund in the amount of $12.00 per each homeowners policy. In addition, we collect $2 per residential policy and $4 per commercial policy written in the state of Florida on behalf of the Florida Emergency Management Preparedness and Assistance Trust Fund. Our insurance subsidiaries must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. At December 31, 2020, we met these requirements. The amount of surplus as regards policyholders for our regulated entities at December 31, 2020 and 2019, was $370,720,000, and $415,948,000, respectively. The amount of restricted net assets of our insurance subsidiaries are: December 31, 2020 UPC $ 142,399 ACIC 81,179 FSIC 40,635 IIC 34,214 JIC 60,128 NAIC law limits an insurer’s investment in equity instruments and also restricts investments in medium to low quality debt instruments. We were in compliance with all investment restrictions at December 31, 2020 and 2019. The SBA Note is considered a surplus note pursuant to statutory accounting principles. As a result, UPC is subject to the authority of the Insurance Commissioner of the State of Florida with regard to its ability to repay principal and interest on the SBA note. Any payment of principal or interest requires permission from the insurance regulatory authority. We have reported our insurance subsidiaries’ assets, liabilities and results of operations in accordance with GAAP, which varies from statutory accounting principles prescribed or permitted by state laws and regulations, as well as by general industry practices. The following items are principal differences between statutory accounting and GAAP: • Statutory accounting requires that we exclude certain assets, called non-admitted assets, from the balance sheet. • Statutory accounting requires us to expense policy acquisition costs when incurred, while GAAP allows us to defer to the extent realizable, and amortize policy acquisition costs over the estimated life of the policies. • Statutory accounting requires that surplus notes, also known as surplus debentures, be recorded in statutory surplus, while GAAP requires us to record surplus notes as a liability. • Statutory accounting allows certain investments to be carried at amortized cost or fair value based on the rating received from the Securities Valuation Office of the NAIC, while they are recorded at fair value for GAAP because the investments are held as available for sale. • Statutory accounting allows ceding commission income to be recognized when written if the cost of acquiring and renewing the associated business exceeds the ceding commissions, but under GAAP such income is deferred and recognized over the coverage period. • Statutory accounting requires that unearned premiums and loss reserves are presented net of related reinsurance rather than on a gross basis under GAAP. • Statutory accounting requires a provision for reinsurance liability be established for reinsurance recoverable on paid losses aged over ninety days and for unsecured amounts recoverable from unauthorized reinsurers. Under GAAP there is no charge for uncollateralized amounts ceded to a company not licensed in the insurance subsidiary’s domiciliary state and a reserve for uncollectible reinsurance is charged through earnings rather than surplus or equity. • Statutory accounting requires an additional admissibility test and the change in deferred income tax is reported directly in capital and surplus, rather than being reported as a component of income tax expense under GAAP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation. At December 31, 2020, we were not involved in any material non-claims-related legal actions. Commitments to fund partnership investments We have fully funded three limited partnership investments and have committed to fund our remaining four limited partnership investments. The amount of unfunded commitments was $2,056,000 and $2,201,000 at December 31, 2020 and 2019, respectively. Leases We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases. The classification of operating and finance lease asset and liability balances within the Consolidated Balance Sheets was as follows: Financial Statement Line December 31, 2020 December 31, 2019 Assets Operating lease assets Other assets $ 2,168 $ 335 Financing lease assets Property and equipment, net 1,214 1,263 Total lease assets $ 3,382 $ 1,598 Liabilities Operating lease liabilities Operating lease liability $ 2,311 $ 324 Financing lease liabilities Other liabilities 36 34 Total lease liabilities $ 2,347 $ 358 The components of lease expenses were as follows: Years ended December 31, 2020 December 31, 2019 Operating lease expense $ 630 $ 183 Financing lease expense: Amortization of leased assets 702 396 Interest on lease liabilities 1 1 Short-term lease expense — 139 Net lease expense $ 1,333 $ 719 At December 31, 2020, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total 2021 $ 610 $ 24 $ 634 2022 603 14 617 2023 586 4 590 2024 588 — 588 2025 254 — 254 Thereafter 1,190 — 1,190 Total undiscounted future minimum lease payments 3,831 42 3,873 Less: Imputed interest (1,520) (6) (1,526) Present value of lease liabilities $ 2,311 $ 36 $ 2,347 Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted average remaining lease term (months) Operating leases 67 176 Financing leases 23 28 Weighted average discount rate Operating leases 3.57 % 4.00 % Financing leases 3.27 % 3.27 % Other cash and non-cash related activities were as follows: Years ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Investing cash flows from financing leases $ 631 $ 1,081 Right-of-use assets obtained in exchange for new operating lease liabilities 2,471 7 Right-of-use assets obtained in exchange for new financing lease liabilities 652 1,111 Capital lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income (Loss). See Note 6 for information regarding depreciation expense. See Note 10 for information regarding commitments related to long-term debt, and Note 13 for commitments related to regulatory actions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Groelle & Salmon, PA One of our former executive officers who acted as an executive officer during a portion of the year ended December 31, 2018, Ms. Kimberly Salmon, is a former partner at the law firm of Groelle & Salmon, PA, where her spouse remains partner and co-owner. Groelle & Salmon, PA provides legal representation to us related to our claims litigation, and also provided representation to us for several years prior to Ms. Salmon joining UPC Insurance in 2014. During the years ended December 31, 2018, while Ms. Salmon was employed at the Company, Groelle & Salmon, PA billed us approximately $2,407,000. Ms. Salmon’s spouse has a 50% interest in these billings, or approximately $1,204,000 and for the year ended December 31, 2018. Effective September 7, 2018, Ms. Salmon stepped down from her role at UPC Insurance. AmRisc, LLC AmRisc, a managing general agent, handles the underwriting, claims processing, premium collection and reinsurance review for AmCo. R. Daniel Peed, Chief Executive Officer and Chairman of our Board of Directors, became Non-Executive Vice Chairman of AmRisc. Effective December 31, 2019, Mr. Peed resigned from his position with AmRisc, terminating the related party relationship. In accordance with the managing general agency contract with AmRisc, we recorded $406,914,000, and $361,904,000 of gross written premiums for the years ended December 31, 2019, and 2018, respectively, resulting in gross fees and commission (including a profit commission) of $107,577,000, and $95,920,000, respectively, due to AmRisc. Receivables are stated net of the fees and commission due under the contract. In addition to the direct premiums written, we recorded $6,253,000, and $5,146,000 in ceded premiums to AmRisc as a reinsurance intermediary for the years ended December 31, 2019, and 2018, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | EMPLOYEE BENEFIT PLANWe provide a 401(k) plan for substantially all of our employees. We match 100% of the first 5% of employees’ contributions to the plan. For the years ended December 31, 2020, 2019, and 2018, our contributions to the plan on behalf of the participating employees were $1,381,000, $787,000, and $861,000, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME We report changes in other comprehensive income items within comprehensive income (loss) on the Consolidated Statements of Comprehensive Income (Loss), and we include accumulated other comprehensive income (loss) as a component of stockholders’ equity on the Consolidated Balance Sheets. The table below details the components of accumulated other comprehensive income at year end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2017 $ 12,044 $ (2,823) $ 9,221 Reclassification due to adoption of ASU 2016-01 (12,300) 2,962 (9,338) Adjusted balance at January 1, 2018 (256) 139 (117) Changes in net unrealized gain on investments (9,999) 2,327 (7,672) Reclassification adjustment for net realized gains (1,655) 414 (1,241) December 31, 2018 (11,910) 2,880 (9,030) Changes in net unrealized gain on investments 28,089 (6,219) 21,870 Reclassification adjustment for net realized gains (1,217) (304) (1,521) December 31, 2019 14,962 (3,643) 11,319 Changes in net unrealized gain on investments 64,421 (16,101) 48,320 Reclassification adjustment for net realized gains (66,594) 16,648 (49,946) December 31, 2020 $ 12,789 $ (3,096) $ 9,693 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2020 2019 2018 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.06 $ 2,571 $ 0.06 $ 2,569 $ 0.06 $ 2,565 Second Quarter $ 0.06 $ 2,578 $ 0.06 $ 2,570 $ 0.06 $ 2,565 Third Quarter $ 0.06 $ 2,581 $ 0.06 $ 2,571 $ 0.06 $ 2,569 Fourth Quarter $ 0.06 $ 2,583 $ 0.06 $ 2,570 $ 0.06 $ 2,569 In February 2020, IIC paid dividends of $12,000,000 to the Company. In 2019, the Company returned a $1,764,000 dividend paid by IIC in 2018.On November 6, 2018, ACIC paid dividends of $50,000,000 to the Company. In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of December 31, 2020, we had not yet repurchased any shares under this stock repurchase plan. The timing and volume of repurchases are at the discretion of management, based on the capital needs of the business, the market price of UIHC common stock, and general market conditions. The plan has no expiration date, and the plan may be suspended or discontinued at any time. See Note 18 for information regarding our stock-based compensation activity. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. On January 6, 2021, our insurance subsidiary, UPC, contributed $5,000,000 to fund an initial investment in a limited partnership investment fund. On January 18, 2021, the Company, together with our wholly-owned subsidiaries UPC and UIM, entered into a Renewal Rights Agreement, dated as of January 18, 2021 with HCP and HCI Group, Inc. (HCI), pursuant to which the Company, UPC and UIM agreed to sell, and HPC agreed to purchase, the renewal rights to UPC’s personal lines homeowners business in Connecticut, Massachusetts, New Jersey and Rhode Island. The transfer of policies is subject to regulatory approval. The sale was also consummated on January 18, 2021. As part of the sale of the renewal rights, HCI issued to UPC 100,000 shares of HCI common stock, no par value. In addition, following the collection by HPC of $80,000,000 of the premium for the policies issued by HPC to replace the subject personal lines homeowners policies, HPC will pay to UPC a renewal rights commission in an amount equal to six percent of such premium for each such replacement policy issued by HPC after such time; provided that the aggregate amount of commission payable by HPC to UPC shall not exceed $3,100,000. The Company announced that its Board of Directors declared a $0.06 per share quarterly cash dividend that will be paid on March 9, 2021 to stockholders of record as of March 2, 2021. On February 19, 2021, our insurance subsidiary, IIC, paid a dividend of $3,500,000 to the Company. On February 24, 2021, the Company made a capital contribution of $3,500,000 to our insurance subsidiary, FSIC. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments, Other than Investments in Related Parties | SCHEDULE I. SUMMARY OF INVESTMENTS December 31, 2020 Cost or Amortized Cost Fair Value Amount Shown in Consolidated Balance Sheet Bonds: U.S. government and agency securities $ 129,417 $ 130,425 $ 130,425 Foreign governments 1,374 1,516 1,516 States, municipalities and political subdivisions 132,336 134,382 134,382 Public utilities 29,526 29,980 29,980 Corporate securities 285,814 292,329 292,329 Mortgage backed securities 285,639 288,212 288,212 Asset backed securities 56,351 56,657 56,657 Redeemable preferred stocks 6,257 6,510 6,510 Total fixed maturities 926,714 940,011 940,011 Mutual funds 151 152 152 Non-redeemable preferred stocks 7,154 7,293 7,293 Total equity securities 7,305 7,445 7,445 Other investments 47,535 47,595 47,595 Total investments $ 981,554 $ 995,051 $ 995,051 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Condensed Balance Sheets December 31, 2020 2019 Assets Fixed maturities, available for sale, at fair value $ 2,971 $ 15,020 Equity securities, at fair value 114 18,594 Cash and cash equivalents 17,828 3,160 Accrued investment income 9 79 Investment in subsidiaries 562,448 644,015 Goodwill 10,157 10,157 Property and equipment, net 9,144 12,010 Other assets 6,944 4,187 Total Assets $ 609,615 $ 707,222 Liabilities Intercompany payable $ 37,401 $ 31,401 Accounts payable and accrued expenses 1,352 421 Lease Liabilities 46 64 Other Liabilities 1,679 186 Long-term notes payable 151,276 151,285 Total Liabilities 191,754 183,357 Stockholders’ Equity Common stock 4 4 Additional paid-in capital 393,122 391,852 Treasury stock (431) (431) Accumulated other comprehensive income 9,693 11,319 Retained earnings (6,373) 100,394 Total UIHC Stockholders’ Equity 396,015 503,138 Noncontrolling Interests 21,846 20,727 Total Stockholders’ Equity 417,861 523,865 Total Liabilities and Stockholders’ Equity $ 609,615 $ 707,222 SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED Condensed Statements of Comprehensive Income (Loss) Years Ended December 31, 2020 2019 2018 REVENUE: Net income (loss) from subsidiaries (equity method) $ (83,434) $ (24,131) $ 10,124 Net realized investment gain (loss) 4,971 63 (160) Net investment income 520 1,156 2,353 Net unrealized gain (loss) on equity securities (2,812) 4,036 (1,223) Total revenues (80,755) (18,876) 11,094 EXPENSES: Operating and underwriting 181 219 198 General and administrative 6,912 3,042 3,416 Interest expense 9,465 9,499 9,557 Total expenses 16,558 12,760 13,171 Loss before other income (97,313) (31,636) (2,077) Other income — — 11 Loss before income taxes (97,313) (31,636) (2,066) Provision for income tax benefit (1,815) (2,151) (2,460) Net income (loss) $ (95,498) $ (29,485) $ 394 Less: Net income attributable to NCI 956 387 104 Net income (loss) attributable to UIHC $ (96,454) $ (29,872) $ 290 Unrealized gain (loss) on investments 64,726 28,366 (22,264) Reclassification adjustments - gains (66,691) (1,228) (1,655) Income tax benefit (expense) related to other items of comprehensive income 502 (6,588) 5,703 Total comprehensive loss $ (96,961) $ (8,935) $ (17,822) Less: Comprehensive income attributable to NCI 1,119 588 139 Total comprehensive loss attributable to UIHC $ (98,080) $ (9,523) $ (17,961) SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED Condensed Statements of Cash Flows Year Ended December 31, 2020 2019 2018 OPERATING ACTIVITIES Net income (loss) $ (95,498) $ (29,485) $ 394 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Dividends received from (returned to) subsidiaries — (1,764) 51,764 Depreciation and amortization 2,054 1,131 1,079 Bond amortization 42 66 (6) Unrealized losses (gains) on equities 2,812 (4,036) 1,223 Net realized investment losses (gains) (4,971) (63) 160 Deferred income taxes, net 644 (511) (570) Stock based compensation 1,382 3,007 2,414 Disposal of fixed assets 2,763 — — Changes in operating assets and liabilities: Accrued investment income (loss) 70 113 (192) Other assets (3,682) 9,976 (908) Accounts payable and accrued expenses 931 (22) (524) Intercompany payable 6,000 (16,702) 21,975 Lease liabilities (18) 64 — Other liabilities 966 313 — Net cash provided by (used in) operating activities (86,505) (37,913) 76,809 INVESTING ACTIVITIES Proceeds from sales of investments available for sale 32,518 35,036 37,315 Purchases of investments available for sale (317) (3,567) (72,635) Investment in subsidiaries 80,432 20,709 (104,125) Cost of property and equipment acquired (688) (4,749) (1,032) Net cash provided by (used) in investing activities 111,945 47,429 (140,477) FINANCING ACTIVITIES Tax withholding payment related to net settlement of equity awards (112) (296) (418) Proceeds from borrowings — — — Repayments of borrowings (347) (347) (347) Payments of debt issuance costs — — (63) Dividends (10,313) (10,280) (10,268) Bank overdrafts — Proceeds from offering — Net cash used in financing activities (10,772) (10,923) (11,096) Decrease in cash 14,668 (1,407) (74,764) Cash and cash equivalents at beginning of period 3,160 4,567 79,331 Cash and cash equivalents at end of period $ 17,828 $ 3,160 $ 4,567 Notes to Condensed Financial Statements - Basis of Presentation The Company’s investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company’s share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with UPC Insurance’s consolidated financial statements contained in Part II, Item 8 of this Form 10-K. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies | SCHEDULE IV. REINSURANCE Property and Casualty Insurance Direct Premium Written Premiums Ceded to Other Companies Premiums Assumed from Other Companies Net Premiums Written Percentage of Premiums Assumed to Net Years Ended December 31, 2020 $ 1,411,558 $ 755,871 $ 45,305 $ 700,992 6.5 % 2019 1,278,504 633,275 101,764 746,993 13.6 % 2018 1,148,190 512,270 104,211 740,131 14.1 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE V. VALUATION AND QUALIFYING ACCOUNTS Uncollectible Premium Receivable Balance at Beginning of Period ASU 2016-13 Adjustment Charged to Costs and Expenses Deductions Balance at End of Period Years Ended December 31, 2020 $ 302 $ (137) $ (311) $ 286 $ 140 2019 405 — 216 (319) 302 2018 384 — 597 (576) 405 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters | SCHEDULE VI. SUPPLEMENTAL INFORMATION CONCERNING CONSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS Year As of December 31, For the Year Ended December 31, Reserves for Unpaid Losses and LAE Incurred Losses and LAE Current Year Incurred Losses and LAE Prior Years Paid Losses and LAE Net Investment Income 2020 $ 1,089,966 $ 615,102 $ (6,786) $ 471,138 $ 24,125 2019 $ 760,357 $ 466,359 $ 33,134 $ 404,784 $ 30,145 2018 $ 661,203 $ 404,271 $ 4,318 $ 401,815 $ 26,170 Year As of December 31, For the Year Ended December 31, Deferred Policy Acquisition Costs (DPAC) Amortization of DPAC, Net Net Premiums Written Net Premiums Earned Unearned Premiums 2020 $ 74,414 $ 287,216 $ 700,992 $ 765,663 $ 723,938 2019 $ 104,572 $ 278,161 $ 746,993 $ 752,400 $ 674,055 2018 $ 105,582 $ 225,900 $ 740,131 $ 689,276 $ 627,313 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, cash equivalents, and restricted cashOur cash, cash equivalents, and restricted cash include demand deposits with financial institutions, cash that is held in trust for assumed business, cash held in deposit accounts to satisfy state statutory deposit requirements, and short-term, highly liquid instruments with original maturities of three months or less when purchased. |
Investment, Policy [Policy Text Block] | Investments We currently classify all of our investments in fixed maturities and short-term investments as available-for-sale, and report them and our equity securities and limited partnership investments at fair value. Subsequent to our acquisition of available-for-sale securities, we record changes in value through the date of disposition as unrealized holding gains and losses, net of tax effects, and include them as a component of comprehensive income (loss). We include realized gains and losses, which we calculate using the specific-identification method for determining the cost of securities sold, in net income. We amortize any premium or discount on fixed maturities over the remaining maturity period of the related securities using the effective interest method, and we report the amortization in net investment income. We recognize dividends and interest income when earned. Effective January 1, 2018, in accordance with Accounting Standards Update (ASU) 2016-01 (ASU 2016-01), we present our unrealized gains or losses on equity investments and other investments on the income statement. Quarterly, we perform an assessment of our investments to determine if any are impaired as the result of a credit loss. An investment is impaired when the fair value of the investment declines to an amount less than the cost or amortized cost of that investment. For each fixed-income security in an unrealized loss position, if we determine that we intend to sell the security or that it is more likely than not that we will be required to sell the security before recovery of the cost or amortized cost basis for reasons such as liquidity needs, contractual or regulatory requirements, the security’s entire decline in fair value is recorded in earnings. If our management decides not to sell the fixed-income security and it is more likely than not that we will not be required to sell the fixed-income security before recovery of its amortized cost basis, we evaluate whether the decline in fair value has resulted from credit losses or other factors. This is typically indicated by a change in the rating of the security assigned by a rating agency, and any adverse conditions specifically related to the security or industry, among other factors. If the assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded in earnings. Credit loss is limited to the difference between a security's amortized cost basis and its fair value. Any additional impairment not recorded through an allowance for credit losses is recognized in other comprehensive income (loss). |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value See Note 3 in our Notes to Consolidated Financial Statements for a discussion regarding the fair value measurement of our investments at December 31, 2020 and 2019. |
Premiums Receivable, Basis of Accounting, Policy [Policy Text Block] | Premiums We recognize premiums as revenue, net of ceded reinsurance amounts, on a daily pro rata basis over the contract period of the related policies that are in force. For any portion of premiums not earned at the end of the reporting period, we record an unearned premium liability. Premiums receivable represents amounts due from our policyholders for billed premiums and related policy fees. We perform a policy-level evaluation to determine the extent to which the balance of premium receivable exceeds the balance of unearned premium. We then estimate expected credit losses based on historical trends, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. Once these conditions have been examined, we establish an allowance for credit losses for any amounts not expected to be collected. When we receive payments on amounts previously charged off, we credit our expected credit loss expense in the period we receive the payment. The balances of our allowance for uncollectible premiums totaled $140,000 and $302,000 at December 31, 2020 and 2019, respectively. When we receive premium payments from policyholders prior to the effective date of the related policy, we record an advance premiums liability. On the policy effective date, we reduce the advance premiums liability and record the premiums as described above. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Policy Acquisition CostsWe incur policy acquisition costs that vary with, and are directly related to, the production of new business. We capitalize policy acquisition costs to the extent recoverable, then we amortize those costs over the contract period of the related policy. Such costs include, but are not limited to: incremental direct costs of contract acquisition, such as commissions; premium taxes; and other essential direct costs that would not have been incurred had a policy not been acquired or renewed. At each reporting date, we determine whether we have a premium deficiency. A premium deficiency would result if the sum of our expected losses, deferred policy acquisition costs, reinsurance costs, and policy maintenance costs (such as costs to store records and costs incurred to collect premiums and pay commissions) exceeded our related unearned premiums plus investment income. Should we determine that a premium deficiency exists, we would write off the unrecoverable portion of deferred policy acquisition costs and record a liability to the extent the deficiency exceeded the deferred policy acquisition costs. We did not have a premium deficiency at December 31, 2020 or 2019. |
Debt, Policy [Policy Text Block] | Debt Issuance CostsWe record our debt issuance costs associated with a recognized debt liability as a direct deduction from the carrying amount of the corresponding debt liability. These costs are then amortized over the life of the liability using the effective interest method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets i) Property and Equipment We record our property and equipment at cost less accumulated depreciation and amortization. We use the straight-line method of calculating depreciation over the estimated useful lives of the assets. We periodically review estimated useful lives and, where appropriate, we make changes prospectively. We charge maintenance and repair costs to expense as incurred. |
Internal Use Software, Policy [Policy Text Block] | Capitalized Software We capitalize certain direct development costs associated with internal-use software. We amortize the capitalized software costs related to our data warehouse, claims system and policy administration system over its expected seven See Note 6 in our Notes to Consolidated Financial Statements for a discussion of our property, equipment and capitalized software that were held during 2020 and 2019. |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairment of Long-lived AssetsWe annually review our long-lived assets, or more frequently when impairment indicators exist, including intangible assets, to determine if their carrying amounts are recoverable. If the non-discounted future cash flows expected to result from the use and eventual disposition of the assets are less than their carrying amounts, we reduce their carrying amounts to fair value and recognize an impairment loss. |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Unpaid Losses and Loss Adjustment Expenses Our reserves for unpaid losses represent the estimated ultimate cost of settling all reported claims plus all claims we incurred related to insured events that have occurred as of the reporting date, but that policyholders have not yet reported to us. We estimate our reserves for unpaid losses using individual case-basis estimates for reported claims and actuarial estimates for incurred but not reported (IBNR) claims, and we continually review and adjust our estimated losses as necessary based on our historical experience and as we obtain new information. If our unpaid loss reserves prove to be deficient or redundant, we increase or decrease the liability in the period in which we identify the difference, thereby impacting net income (loss). Though our estimate of the ultimate cost of settling all reported and unreported claims may change at any point in the future, a reasonable possibility exists that our estimate may vary significantly in the near term from the estimated amounts included in our consolidated financial statements. On our Consolidated Balance Sheets, we report our reserves for unpaid losses gross of the amounts related to unpaid losses recoverable from reinsurers. On our Consolidated Statements of Comprehensive Income (Loss), we report losses net of amounts ceded to reinsurers. We do not discount our loss reserves for financial statement purposes. |
Reinsurance Accounting Policy [Policy Text Block] | ReinsuranceWe follow industry practice of reinsuring a portion of our risks. Reinsurance involves transferring, or “ceding”, all or a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are short-term, prospective contracts. We record an asset, ceded unearned premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our ceded unearned premiums over the 12-month contract period. We record provisional ceding commissions that we receive in connection with our reinsurance contracts for the 2020 underwriting year as an offset to deferred acquisitions costs. Ceding commissions received in connection with our reinsurance contracts for the 2019 and 2018 underwriting years were recorded as an offset to deferred acquisition costs to the extent that they related to compensation for acquisition costs that were incurred that are deferrable. The remaining provisional ceding commissions related to 2019 and 2018 were recorded as unearned reinsurance commission and were recognized as an offset to other acquisition costs based in proportion to the premiums earned or coverage provided by the reinsurance contracts. We record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. Though our estimate of amounts recoverable from reinsurers on unpaid losses may change at any point in the future because of its relation to our reserves for unpaid losses, a reasonable possibility exists that our estimate may change significantly in the near term from the amounts included in our consolidated financial statements. We estimate uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. With the adoption of ASU 2016-13, we recorded a $256,000 opening credit loss allowance adjustment on January 1, 2020. As of December 31, 2020, our ending credit loss allowance related to reinsurance recoverables was $386,000. |
Assessment [Policy Text Block] | AssessmentsWe record guaranty fund and other insurance-related assessments imposed upon us as an expense in the period the regulatory agency imposes the assessment. To recover Florida Insurance Guaranty Association (FIGA) assessments, we calculate and begin collecting a policy surcharge that will allow us to collect the entire assessment over a 12-month period, based on our estimate of the number of policies we expect to write. We then submit an information only filing, pursuant to Florida Statute 631.57(3)(h), to the insurance regulatory authority requesting formal approval of the policy FIGA surcharge. The process may be repeated in successive 12-month periods until we collect the entire assessment. We record the recoveries as revenue in the period that we collect the cash. While current regulations allow us to recover from policyholders the amount of assessments imposed upon us, our payment of the assessments and our recoveries may not offset each other in the same fiscal period in our consolidated financial statements. Where permitted by law or regulatory authority, we collect assessments imposed upon policyholders as a policy surcharge and we record the amounts collected as a liability until we remit the amounts to the regulatory agency that imposed the assessment. During 2020 and 2019, we did not receive any significant assessments from regulatory authorities in the states in which our insurance subsidiaries operate. |
Income Tax, Policy [Policy Text Block] | Income Taxes We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which we expect to recover or settle those temporary differences. Should a change in tax rates occur, we recognize the effect on deferred tax assets and liabilities in operations in the period that includes the enactment date. Refer to Note 12 for additional information. Realization of our deferred income tax assets depends upon our generation of sufficient future taxable income. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. On March 27, 2020, former President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. We assessed all provisions of the CARES Act and determined that two provisions needed further analysis to determine the impact to our business. First, the TCJA simplified the definition of "qualified improvement property" and removed the 15-year life for cost recovery, resulting in a 39-year life which excluded the assets from being eligible for bonus depreciation. The CARES Act reinstated the 15-year recovery period effective as if it had been included in the TCJA, making the change applicable to property placed in service after December 31, 2017. After performing our assessment, we concluded that this provision had no impact to our financial statements. Second, the TCJA eliminated the two-year carryback period and provided for indefinite carryforward of net operating losses against future tax periods, with the future deduction limited to 80% of taxable income before consideration of net operating loss deduction. The CARES Act amended the law for net operating losses generated in taxable years beginning after December 31, 2017 and before January 1, 2021. Net operating losses generated by a corporation during these taxable years now have a five-year carryback period. In addition, these losses can be carried forward to future taxable years without being subject to the 80% limitation. As a result of the CARES Act, we were able to convert potential deferred tax assets related to net operating losses to a current receivable, generating a $12,566,000 tax benefit for difference in tax rate. The Company’s initial assessment at June 30, 2020 was a tax benefit of $5,263,000. The additional benefit stemmed from 2020 operations. We did not incur any material tax penalties or income-tax-related interest during the years ended December 31, 2020, 2019 or 2018. |
Advertising Cost [Policy Text Block] | Advertising CostsWe expense all advertising costs as an operating expense when we incur those costs. For the years ended December 31, 2020, 2019 and 2018, we incurred advertising costs of $1,212,000, $1,426,000, and $1,674,000, respectively. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share (EPS)We report both basic earnings per share and diluted earnings per share. To calculate basic earnings per share, we divide net loss attributable to UIHC common stockholders (net loss less the net income attributable to NCI) by the weighted-average number of shares of common stock outstanding during the period. We calculate diluted earnings per share using the Treasury method by dividing net loss attributable to UIHC common stockholders by the weighted-average number of shares of common stock, common stock equivalents, and restricted shares outstanding during the period. Common share equivalents are only included when they are dilutive. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Our current operations subject us to the following concentrations of risk: • a concentration of revenue because we write primarily homeowners policies; • a geographic concentration resulting from the fact that, though we now operate in 12 states, we still write approximately 57% of our gross written premium in Florida as of December 31, 2020; • a group concentration of credit risk with regard to our reinsurance recoverable, since all of our reinsurers engage in similar activities and have similar economic characteristics that could cause their ability to repay us to be similarly affected by changes in economic or other conditions; and • a concentration of credit risk with regard to our cash, because we choose to deposit all of our cash at five financial institutions. We mitigate our geographic and group concentrations of risk by entering into reinsurance contracts with financially-stable reinsurers, and by securing irrevocable letters of credit from reinsurers when necessary. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired. We attribute all goodwill associated with our acquisitions to two reporting units. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. We test goodwill for impairment by performing a quantitative assessment. In performing the quantitative impairment test, we use a discounted cash flow valuation approach. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, control premium, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that we believe is appropriate for the respective reporting unit. The valuation methodology utilized is subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of our reporting units could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Identifiable intangible assets that are amortized generally represent the cost of client relationships, trade names and agency agreements acquired. In valuing these assets, we make assumptions regarding useful lives and projected growth rates, and significant judgment is required. We periodically review identifiable intangibles for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of the assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment loss, if any. Non-amortizing intangible assets generally represent the cost of insurance licenses acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year by comparing the fair value of the licenses acquired to their carrying values. We established fair value for purposes of impairment testing using the income approach. If the carrying value of a license acquired exceeds its fair value, an impairment loss is recognized equal to that excess. For 2020, 2019 and 2018, we determined that the fair values of the intangible assets were not impaired. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Accounting Pronouncements Recently Adopted Policies In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). This update modifies the existing disclosure requirements on fair value measurements in Topic 820 by changing requirements regarding Level 1, Level 2 and Level 3 investments. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those annual periods. Entities are permitted to early adopt any removed or modified disclosures of ASU 2018-13 immediately and delay the adoption of the additional disclosures until their effective date. We have early adopted the guidance on removed and modified disclosures and adopted the remainder of the guidance on January 1, 2020, which has not impacted the accompanying consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). This update simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted for certain requirements. We adopted this guidance in the course of performing our annual assessment of goodwill during the fourth quarter of 2020 using data as of September 30, 2020. As of December 31, 2020, there was no impact on our consolidated financial statements as the result of the adoption of this standard. We have updated our related disclosures accordingly. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update is intended to replace the incurred loss impairment methodology in current GAAP with a method that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 will provide users with more useful information regarding the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In addition, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted this guidance as of January 1, 2020 using a modified cumulative effect adjustment to the opening balance of retained earning for 2020, with no adjustment to prior periods presented. The cumulative effect to the opening balance of retained earnings for 2020 was a decrease of $262,000, net of reversals from allowances recorded under prior guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). This update is intended to replace existing lease guidance by requiring a lessee to recognize substantially all leases (whether operating or finance leases) on the balance sheet as a right-of-use asset and an associated lease liability. Short-term leases of 12 months or less are excluded from this standard. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. We adopted this standard as of January 1, 2019 using a modified retrospective approach, which allowed us to initially apply the new lease standard at the adoption date and recognize a cumulate effect adjustment to the opening balance of retained earnings for 2019, with no adjustment to prior periods presented. The cumulative effect adjustment to the opening balance of retained earnings was zero. The adoption of the standard resulted in the recognition of a right-of-use asset of $482,000 at January 1, 2019, which was recorded within Other Assets on our Consolidated Balance Sheets, and a corresponding lease liability of $482,000 at January 1, 2019 for our operating lease. Additionally, we elected the practical expedients that permit the exclusions of leases considered to be short-term and with value that falls under our capitalization threshold. We also elected the practical expedient of not segregating lease and nonlease components for leases on our office equipment. Pending Policies In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Portfolio LoansLoan receivables that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the principal balance outstanding, net of the allowance for loan losses. |
Credit Loss, Financial Instrument | Allowance for Expected Credit LossesWe are exposed to credit losses primarily through three different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; and our note receivable. We estimate the expected credit losses based on historical trends, credit ratings assigned to reinsurers by rating agencies, average default rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts over its expected life. Changes in the relevant information may significantly affect the estimates of expected credit losses. The allowance for credit losses is deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. |
Managing General Agent Fees | Managing General Agent Fees and Policy FeesOur policy fees consist of the managing general agent (MGA) fee and a pay-plan fee. We defer MGA fees as unearned revenue and recognize revenue on a pro rata basis over the term of the underlying policies. We record pay-plan fees, which are charged to all policyholders that pay premium in more than one installment, as income when collected. We report all policy-related fees as other revenue on our Consolidated Statements of Comprehensive Income (Loss). |
Lessee, Leases | Leases We evaluate if a leasing arrangement exists upon inception of a contract. A contract contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Identified property, plant or equipment for all of our leases are physically distinct and explicitly identified. In addition, we assess whether a contract implicitly contains the right to control the use of a tangible asset that is not already owned. Our leases expire at various dates and may contain renewal options. Our leases do not contain termination options. The exercise of lease renewal options are at our sole discretion and are only included in the determination of the lease term if we are reasonably certain to exercise the option. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Right-of-use assets and lease liabilities are based on the present value of the minimum lease payments over the lease term. We have elected the practical expedient related to lease and non-lease components, as an accounting policy election for our office equipment leases, which allows a lessee to not separate non-lease from lease components and instead account for consideration received in a contract as a single lease component. We have also elected the practical expedients to exclude leases considered to be short-term and with values that fall under our capitalization threshold. A portion of our lease agreements include variable lease payments which are not recorded in the initial measurement of the lease liability and right-of-use asset balances. For our parking lot lease, base rental payments may be escalated according to annual changes in the Consumer Price Index (CPI). The escalated rental payments based on the estimated CPI at the lease commencement date are included within minimum rental payments; however, changes in CPI are considered variable in nature and are recognized as variable lease costs in the period in which the obligation is incurred. Our office equipment lease agreements may include variable payments based on usage of the equipment. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value of Equity Securities | The following table details fixed maturity available-for-sale securities, by major investment category, at December 31, 2020 and 2019: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 U.S. government and agency securities $ 129,417 $ 1,147 $ 139 $ 130,425 Foreign government 1,374 142 — 1,516 States, municipalities and political subdivisions 132,336 2,318 272 134,382 Public utilities 29,526 482 28 29,980 Corporate securities 285,814 6,633 118 292,329 Mortgage-backed securities 285,639 3,039 466 288,212 Asset-backed securities 56,351 525 219 56,657 Redeemable preferred stocks 6,257 266 13 6,510 Total fixed maturities $ 926,714 $ 14,552 $ 1,255 $ 940,011 December 31, 2019 U.S. government and agency securities $ 120,260 $ 749 $ 193 $ 120,816 Foreign government 3,975 97 1 4,071 States, municipalities and political subdivisions 131,203 2,611 63 133,751 Public utilities 24,660 700 26 25,334 Corporate securities 281,892 7,123 143 288,872 Mortgage-backed securities 248,206 4,174 477 251,903 Asset-backed securities 56,487 683 41 57,129 Redeemable preferred stocks 2,915 72 2 2,985 Total fixed maturities $ 869,598 $ 16,209 $ 946 $ 884,861 Equity securities are summarized as follows at: December 31, 2020 December 31, 2019 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 152 2.0 % $ 65,453 56.1 % Public utilities — — 3,663 3.1 Other common stocks — — 44,492 38.2 Non-redeemable preferred stocks 7,293 98.0 3,002 2.6 Total equity securities $ 7,445 100.0 % $ 116,610 100.0 % |
Schedule of Realized Gain (Loss) | The following table details our realized gains (losses) by major investment category for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Gains Fair Value at Sale Gains Fair Value at Sale Gains (Losses) Fair Value at Sale Fixed maturities $ 32,460 $ 678,736 $ 1,678 $ 209,302 $ 373 $ 41,776 Equity securities 38,325 131,178 94 814 2,828 6,073 Short-term investments — 1,346 — 3,863 — — Total realized gains 70,785 811,260 1,772 213,979 3,201 47,849 Fixed maturities (478) 16,552 (324) 43,573 (1,376) 135,944 Equity securities (3,602) 13,805 (219) 1,387 (170) 995 Short-term investments (14) 1,258 (1) 1,035 — — Total realized losses (4,094) 31,615 (544) 45,995 (1,546) 136,939 Net realized investment gains $ 66,691 $ 842,875 $ 1,228 $ 259,974 $ 1,655 $ 184,788 |
Investments Classified by Contractual Maturity Date | The table below summarizes our fixed maturities at December 31, 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturities of those obligations. December 31, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 66,420 7.2 % $ 66,921 7.1 % Due after one year through five years 209,129 22.6 % 214,742 22.8 % Due after five years through ten years 295,036 31.8 % 299,230 31.9 % Due after ten years 14,139 1.5 % 14,249 1.5 % Asset and mortgage-backed securities 341,990 36.9 % 344,869 36.7 % Total $ 926,714 100.0 % $ 940,011 100.0 % |
Investment Income | The following table summarizes our net investment income by major investment category: Year Ended December 31, 2020 2019 2018 Fixed maturities $ 21,789 $ 23,267 $ 22,043 Equity securities 2,155 2,474 2,206 Cash and cash equivalents 1,329 4,118 1,953 Other investments 38 1,253 942 Other assets 178 117 57 Investment income 25,489 31,229 27,201 Investment expenses (1,364) (1,084) (1,031) Net investment income $ 24,125 $ 30,145 $ 26,170 |
Schedule of Unrealized Loss on Investments | The following table presents an aging of our unrealized investment losses by investment class: Less Than Twelve Months Twelve Months or More Number of Securities (1) Gross Unrealized Losses Fair Value Number of Securities (1) Gross Unrealized Losses Fair Value December 31, 2020 U.S. government and agency securities 44 $ 129 $ 40,341 18 $ 10 $ 10,482 Foreign governments — — — — — — States, municipalities and political subdivisions 22 272 30,538 — — — Public utilities 8 28 9,472 — — — Corporate securities 40 116 25,052 3 2 753 Mortgage-backed securities 87 397 100,171 8 69 3,479 Asset backed securities 21 207 17,682 1 12 988 Redeemable preferred stocks 5 13 358 — — — Total fixed maturities 227 $ 1,162 $ 223,614 30 $ 93 $ 15,702 December 31, 2019 U.S. government and agency securities 37 $ 89 $ 26,372 39 $ 104 $ 31,364 Foreign governments — — — 2 1 600 States, municipalities and political subdivisions 31 61 14,508 2 2 1,262 Public utilities 9 25 4,626 2 1 250 Corporate securities 42 124 22,435 27 19 9,605 Mortgage-backed securities 89 322 59,101 50 155 12,738 Asset-backed securities 15 34 8,447 5 7 1,259 Redeemable preferred stocks — — — 1 2 97 Total fixed maturities 223 $ 655 $ 135,489 128 $ 291 $ 57,175 (1) This amount represents the actual number of discrete securities, not the number of shares or units of those securities. The numbers are not presented in thousands. |
Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis | The following table presents the fair value of our financial instruments measured on a recurring basis by level at December 31, 2020 and 2019: Total Level 1 Level 2 Level 3 December 31, 2020 U.S. government and agency securities $ 130,425 $ — $ 130,425 $ — Foreign government 1,516 — 1,516 — States, municipalities and political subdivisions 134,382 — 134,382 — Public utilities 29,980 — 29,980 — Corporate securities 292,329 — 292,329 — Mortgage-backed securities 288,212 — 288,212 — Asset-backed securities 56,657 — 56,657 — Redeemable preferred stocks 6,510 1,554 4,956 — Total fixed maturities 940,011 1,554 938,457 — Mutual funds 152 152 — — Public utilities — — — — Other common stocks — — — — Non-redeemable preferred stocks 7,293 7,293 — — Total equity securities 7,445 7,445 — — Other investments (1) 38,002 300 37,702 — Total investments $ 985,458 $ 9,299 $ 976,159 $ — December 31, 2019 U.S. government and agency securities $ 120,816 $ — $ 120,816 $ — Foreign government 4,071 — 4,071 — States, municipalities and political subdivisions 133,751 — 133,751 — Public utilities 25,334 — 25,334 — Corporate securities 288,872 — 288,872 — Mortgage-backed securities 251,903 — 251,903 — Asset-backed securities 57,129 — 57,129 — Redeemable preferred stocks 2,985 747 2,238 — Total fixed maturities 884,861 747 884,114 — Mutual Funds 65,453 65,453 — — Public utilities 3,663 3,663 — — Other common stocks 44,492 44,492 — — Non-redeemable preferred stocks 3,002 3,002 — — Total equity securities 116,610 116,610 — — Other investments (1) 499 300 199 — Total investments $ 1,001,970 $ 117,657 $ 884,313 $ — (1) |
Schedule of Fair Value of Financial Instruments with Unobservable Inputs | The information presented in the table below is as of December 31, 2020 and 2019: Book Value Unrealized Gain Unrealized Loss Fair Value December 31, 2020 Limited partnership investments (1) $ 9,532 $ 225 $ 164 $ 9,593 Certificates of deposit 300 — — 300 Short-term investments 37,703 — 1 37,702 Total other investments $ 47,535 $ 225 $ 165 $ 47,595 December 31, 2019 Limited partnership investments (1) $ 7,568 $ 2,236 $ 51 $ 9,753 Certificates of deposit 300 — — 300 Short-term investments 199 — — 199 Total other investments $ 8,067 $ 2,236 $ 51 $ 10,252 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of the funds, and from liquidation of the underlying assets of the funds. We estimate that the underlying assets of the funds will be liquidated over the next few months to seven years. |
Restrictions on Cash and Cash Equivalents | The following table presents the components of restricted assets: December 31, 2020 2019 Trust funds $ 61,142 $ 70,668 Cash on deposit (regulatory deposits) 936 920 Total restricted cash $ 62,078 $ 71,588 |
Securities on deposit | The table below shows the carrying value of those securities held on deposit with regulators. December 31, 2020 2019 Invested assets on deposit (regulatory deposits) $ 4,023 $ 4,599 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the computation of basic and diluted EPS for the years ended December 31, 2020, 2019 and 2018: Year Ended 2020 2019 2018 Numerator: Net income (loss) attributable to UIHC common stockholders $ (96,454) $ (29,872) $ 290 Denominator: Weighted-average shares outstanding 42,864,166 42,763,423 42,650,629 Effect of dilutive securities — — 188,257 Weighted-average diluted shares 42,864,166 42,763,423 42,838,886 Earnings available to UIHC common stockholders per share Basic $ (2.25) $ (0.70) $ 0.01 Diluted $ (2.25) $ (0.70) $ 0.01 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | The table below depicts the activity with regard to deferred policy acquisition costs: 2020 2019 Balance at January 1 $ 104,572 $ 105,582 Policy acquisition costs deferred 294,423 288,842 Amortization (287,216) (278,161) Unearned ceding commission (37,365) (11,691) Balance at December 31 $ 74,414 $ 104,572 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consists of the following: Year Ended 2020 2019 Land $ 2,114 $ 2,114 Building and building improvements (construction in progress of $0 and $2,180, respectively) 9,211 11,315 Computer hardware and software (software in progress of $1,485 and $6,317, respectively) 41,910 33,219 Office furniture and equipment 3,172 3,260 Leasehold improvements 768 20 Leased vehicles (1) 2,346 1,693 Total, at cost 59,521 51,621 Less: accumulated depreciation and amortization (25,334) (18,893) Property and equipment, net $ 34,187 $ 32,728 (1) Includes vehicles under capital leases. See Note 11 of these Notes to Consolidated Financial Statements for further information on leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at: December 31, 2020 December 31, 2019 Intangible assets subject to amortization $ 18,173 $ 22,440 Indefinite-lived intangible assets (1) 3,757 3,639 Total $ 21,930 $ 26,079 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows: Year ending December 31, Estimated Amortization Expense 2021 $ 3,555 2022 3,246 2023 3,246 2024 2,640 2025 2,438 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Intangible assets subject to amortization consisted of the following: Weighted-average remaining amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount 2020 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 6.1 34,661 (19,116) 15,545 Trade names acquired 3.3 6,381 (3,753) 2,628 Total $ 83,830 $ (65,657) $ 18,173 2019 Value of Business Acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 6.8 34,661 (15,658) 19,003 Trade names acquired 4.3 6,381 (2,944) 3,437 Total $ 83,830 $ (61,390) $ 22,440 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable | Reinsurance recoverable at the balance sheet dates consists of the following: December 31, 2020 2019 Reinsurance recoverable on unpaid losses and LAE $ 674,746 $ 482,315 Reinsurance recoverable on paid losses and LAE 146,410 67,821 Reinsurance recoverable $ 821,156 $ 550,136 |
Reinsurance, Effect on Operations | The following table depicts written premiums, earned premiums and losses, showing the effects that our reinsurance transactions have on these components of our Consolidated Statements of Comprehensive Loss: Year ended December 31, 2020 2019 2018 Premium written: Direct $ 1,411,558 $ 1,278,504 $ 1,148,190 Assumed 45,305 101,764 104,211 Ceded (755,871) (633,275) (512,270) Net premium written $ 700,992 $ 746,993 $ 740,131 Change in unearned premiums: Direct $ (66,483) $ (59,660) $ (49,048) Assumed 16,600 12,918 (22,392) Ceded 114,554 52,149 20,585 Net decrease (increase) $ 64,671 $ 5,407 $ (50,855) Premiums earned: Direct $ 1,345,075 $ 1,218,844 $ 1,099,142 Assumed 61,905 114,682 81,819 Ceded (641,317) (581,126) (491,685) Net premiums earned $ 765,663 $ 752,400 $ 689,276 Losses and LAE incurred: Direct $ 1,186,401 $ 1,003,767 $ 1,101,328 Assumed 67,119 44,914 97,444 Ceded (645,204) (549,188) (790,183) Net losses and LAE incurred $ 608,316 $ 499,493 $ 408,589 |
Reinsurance Effects On Unpaid Lossses, LAE and Unearned Premiums | The following table highlights the effects that our reinsurance transactions have on unpaid losses and loss adjustment expenses and unearned premiums in our Consolidated Balance Sheets: December 31, 2020 2019 2018 Unpaid losses and LAE: Direct $ 1,042,994 $ 716,559 $ 579,710 Assumed 46,972 43,798 81,493 Gross unpaid losses and LAE 1,089,966 760,357 661,203 Ceded (674,746) (482,315) (477,870) Net unpaid losses and LAE $ 415,220 $ 278,042 $ 183,333 Unearned premiums: Direct $ 703,612 $ 637,128 $ 577,467 Assumed 20,326 36,927 49,846 Gross unearned premiums 723,938 674,055 627,313 Ceded (384,588) (270,034) (217,885) Net unearned premiums $ 339,350 $ 404,021 $ 409,428 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Claims Development | |
Short-duration Insurance Contracts, Claims Development | Property & Casualty Homeowners’ Insurance $ In thousands (except number of reported claims) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2020 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Audited Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 77,706 $ 79,142 $ 78,763 $ 77,649 $ 79,234 $ 79,985 $ 80,014 $ 80,289 $ 80,199 $ 80,086 $ 24 7,400 2012 — 87,276 88,629 87,963 87,571 86,818 90,817 91,095 90,879 90,890 124 12,048 2013 — — 113,477 106,992 110,268 106,820 106,222 106,132 106,450 106,600 171 8,911 2014 — — — 155,008 154,167 155,729 156,868 156,037 155,956 156,300 331 13,458 2015 — — — — 217,832 236,059 239,784 242,508 242,610 244,109 750 20,337 2016 — — — — — 304,961 294,271 293,785 295,611 297,195 1,801 31,143 2017 — — — — — — 332,339 345,647 359,018 371,447 10,920 86,305 2018 — — — — — — — 360,919 389,841 402,966 7,681 48,440 2019 — — — — — — — — 421,426 387,164 22,533 39,332 2020 — — — — — — — — — 551,945 173,404 44,465 Total $ 2,688,702 Accident Year Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Audited 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 44,547 $ 62,812 $ 69,461 $ 73,215 $ 77,022 $ 79,052 $ 79,480 $ 80,002 $ 80,020 $ 80,062 2012 — 52,394 75,213 79,810 82,908 86,013 90,356 90,580 90,447 90,563 2013 — — 69,615 94,969 99,196 103,441 104,669 105,201 105,686 105,927 2014 — — — 98,762 135,301 147,031 151,954 153,593 154,597 155,287 2015 — — — — 145,180 210,261 227,661 234,018 237,573 240,086 2016 — — — — — 193,876 265,069 280,203 288,425 291,219 2017 — — — — — — 217,983 313,883 327,986 349,380 2018 — — — — — — — 247,365 352,422 380,504 2019 — — — — — — — — 240,533 327,965 2020 — — — — — — — — — 269,580 Total $ 2,290,573 All outstanding liabilities before 2011, net of reinsurance 280 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 398,409 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis: 2020 2019 2018 Balance at January 1 $ 760,357 $ 661,203 $ 482,232 Less: reinsurance recoverable on unpaid losses 482,315 477,870 305,673 Net balance at January 1 $ 278,042 $ 183,333 $ 176,559 Incurred related to: Current year 615,102 466,359 404,271 Prior years (6,786) 33,134 4,318 Total incurred $ 608,316 $ 499,493 $ 408,589 Paid related to: Current year 320,389 275,488 283,821 Prior years 150,749 129,296 117,994 Total paid $ 471,138 $ 404,784 $ 401,815 Net balance at December 31 $ 415,220 $ 278,042 $ 183,333 Plus: reinsurance recoverable on unpaid losses 674,746 482,315 477,870 Balance at December 31 $ 1,089,966 $ 760,357 $ 661,203 Composition of reserve for unpaid losses and LAE: Case reserves $ 392,717 $ 300,858 $ 270,601 IBNR reserves 697,249 459,499 390,602 Balance at December 31 $ 1,089,966 $ 760,357 $ 661,203 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 60.1 % 24.9 % 6.4 % 3.8 % 2.1 % 1.9 % 0.4 % 0.2 % 0.1 % 0.1 % |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. December 31, 2020 2019 Net outstanding liabilities Property and Casualty Homeowners’ Insurance $ 398,409 $ 264,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 398,409 $ 264,556 Reinsurance recoverable on unpaid claims Property and Casualty Homeowners’ Insurance 674,746 482,315 Total reinsurance recoverable on unpaid claims 674,746 482,315 Unallocated claims adjustment expenses 16,811 13,486 Total gross liability for unpaid claims and claims adjustment expense $ 1,089,966 $ 760,357 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The table below presents all long-term debt outstanding as of December 31, 2020 and 2019: Effective Interest Rate Carrying Value at Maturity December 31, 2020 December 31, 2019 Senior Notes December 15, 2027 6.25% $ 150,000 $ 150,000 Florida State Board of Administration Note July 1, 2026 0.66% 6,765 7,647 Truist Term Note Payable May 26, 2031 1.81% 3,611 3,958 Total long-term debt $ 160,376 $ 161,605 |
Schedule of Maturities of Long-term Debt | At December 31, 2020, the annual maturities of our long-term debt were as follows: Amount 2021 $ 1,523 2022 1,523 2023 1,523 2024 1,523 2025 1,523 Thereafter 152,761 Total debt $ 160,376 |
Schedule of Debt | The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the years ended December 31, 2020 and 2019: 2020 2019 Balance at January 1, $ 2,673 $ 3,010 Additions — — Amortization (338) (337) Balance at December 31, $ 2,335 $ 2,673 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the provision for income taxes: Year Ended December 31, 2020 2019 2018 Federal: Current $ (27,310) $ 58 $ (1,510) Deferred (6,611) (4,520) (1,240) Benefit for Federal income tax expense (33,921) (4,462) (2,750) State: Current 598 1,100 (654) Deferred (3,282) 241 (1,229) Provision (benefit) for State income tax expense (2,684) 1,341 (1,883) Benefit for income taxes $ (36,605) $ (3,121) $ (4,633) |
Tax Expense Reconciliation | The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows: Year Ended December 31, 2020 2019 2018 Expected income tax expense at federal rate $ (27,741) $ (6,847) $ (875) State tax expense, net of federal deduction benefit (3,603) (882) (1,205) Dividend received deduction (141) (195) (170) Other permanent items 600 1,349 564 Prior period accrual adjustment 2,230 3,415 (1,391) Net operating loss carryback rate benefit (1) (12,566) — — Municipal tax-exempt interest (280) (587) (735) Change in valuation allowance 5,505 989 — Change in special loss discount account — — (821) Change in tax credit carryforward (721) — — Other, net 112 (363) — Reported income tax benefit $ (36,605) $ (3,121) $ (4,633) |
Schedule of Deferred Tax Assets and Liabilities | The table below summarizes the significant components of our net deferred tax liability: December 31, 2020 2019 Deferred tax assets: Unearned premiums $ 16,404 $ 19,482 Tax-related discount on loss reserve 4,027 2,300 R&D tax credit carryforward 1,686 — Dual consolidated loss carryforward 6,511 2,181 Net operating loss carryforward 7,900 8,709 Other 1,189 1,451 Total pre-allowance deferred tax assets 37,717 34,123 Valuation allowance (6,494) (989) Total deferred tax assets 31,223 33,134 Deferred tax liabilities: Deferred acquisitions costs (20,191) (27,939) Unrealized gain (3,253) (10,484) Intangible assets (4,553) (5,631) Prepaid expenses (725) (762) Investments (78) (152) Fixed assets (5,618) (2,728) Outside basis in subsidiary (974) — Total deferred tax liabilities (35,392) (47,696) Net deferred tax liability $ (4,169) $ (14,562) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2020: December 31, 2020 Balance at January 1 $ — Additions based on tax positions related to current year 683 Balance at December 31 $ 683 |
Commitments and Contingencies L
Commitments and Contingencies Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Assets and Liabilities | The classification of operating and finance lease asset and liability balances within the Consolidated Balance Sheets was as follows: Financial Statement Line December 31, 2020 December 31, 2019 Assets Operating lease assets Other assets $ 2,168 $ 335 Financing lease assets Property and equipment, net 1,214 1,263 Total lease assets $ 3,382 $ 1,598 Liabilities Operating lease liabilities Operating lease liability $ 2,311 $ 324 Financing lease liabilities Other liabilities 36 34 Total lease liabilities $ 2,347 $ 358 |
Lease, Cost | The components of lease expenses were as follows: Years ended December 31, 2020 December 31, 2019 Operating lease expense $ 630 $ 183 Financing lease expense: Amortization of leased assets 702 396 Interest on lease liabilities 1 1 Short-term lease expense — 139 Net lease expense $ 1,333 $ 719 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2020, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total 2021 $ 610 $ 24 $ 634 2022 603 14 617 2023 586 4 590 2024 588 — 588 2025 254 — 254 Thereafter 1,190 — 1,190 Total undiscounted future minimum lease payments 3,831 42 3,873 Less: Imputed interest (1,520) (6) (1,526) Present value of lease liabilities $ 2,311 $ 36 $ 2,347 |
Weighted Average Lease Terms | Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: December 31, 2020 December 31, 2019 Weighted average remaining lease term (months) Operating leases 67 176 Financing leases 23 28 Weighted average discount rate Operating leases 3.57 % 4.00 % Financing leases 3.27 % 3.27 % |
Lease Liability Cash Activity | Other cash and non-cash related activities were as follows: Years ended December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Investing cash flows from financing leases $ 631 $ 1,081 Right-of-use assets obtained in exchange for new operating lease liabilities 2,471 7 Right-of-use assets obtained in exchange for new financing lease liabilities 652 1,111 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below details the components of accumulated other comprehensive income at year end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2017 $ 12,044 $ (2,823) $ 9,221 Reclassification due to adoption of ASU 2016-01 (12,300) 2,962 (9,338) Adjusted balance at January 1, 2018 (256) 139 (117) Changes in net unrealized gain on investments (9,999) 2,327 (7,672) Reclassification adjustment for net realized gains (1,655) 414 (1,241) December 31, 2018 (11,910) 2,880 (9,030) Changes in net unrealized gain on investments 28,089 (6,219) 21,870 Reclassification adjustment for net realized gains (1,217) (304) (1,521) December 31, 2019 14,962 (3,643) 11,319 Changes in net unrealized gain on investments 64,421 (16,101) 48,320 Reclassification adjustment for net realized gains (66,594) 16,648 (49,946) December 31, 2020 $ 12,789 $ (3,096) $ 9,693 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared | Our Board of Directors declared dividends on our outstanding shares of common stock to stockholders of record as follows for the periods presented (in thousands, except per share amounts): Year Ended December 31, 2020 2019 2018 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ 0.06 $ 2,571 $ 0.06 $ 2,569 $ 0.06 $ 2,565 Second Quarter $ 0.06 $ 2,578 $ 0.06 $ 2,570 $ 0.06 $ 2,565 Third Quarter $ 0.06 $ 2,581 $ 0.06 $ 2,571 $ 0.06 $ 2,569 Fourth Quarter $ 0.06 $ 2,583 $ 0.06 $ 2,570 $ 0.06 $ 2,569 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Activity | The following table presents our total stock-based compensation expense: Year Ended 2020 2019 2018 Employee stock-based compensation expense Pre-tax (1) $ 876 $ 2,019 $ 1,095 Post-tax (2) 692 1,595 865 Director stock-based compensation expense Pre-tax (1) 506 988 1,319 Post-tax (2) 400 781 1,042 (1) This table does not include withholding of vested shares for tax liabilities, which totaled $112,000, $296,000, and $418,000 in 2020, 2019, and 2018, respectively. (2) The after tax amounts are determined using the 21% corporate federal tax rate. |
Schedule of Nonvested Share Activity | The following table presents certain information related to the activity of our non-vested common stock grants: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2017 212,094 $ 16.44 Granted 174,602 20.07 Less: Forfeited 21,502 18.82 Less: Vested 147,258 16.68 Outstanding as of December 31, 2018 217,936 $ 18.96 Granted 134,231 16.24 Less: Forfeited 6,059 20.15 Less: Vested 131,613 19.22 Outstanding as of December 31, 2019 214,495 $ 17.49 Granted (1) 386,101 9.33 Less: Forfeited 232,323 12.61 Less: Vested (1) 109,267 16.63 Outstanding as of December 31, 2020 259,006 $ 10.06 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted-average assumptions were used to value the stock options granted: 2020 Expected annual dividend yield 1.70 % Expected volatility 41.59 % Risk-free interest rate 2.35 % Expected term 6 years |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity | The following table presents certain information related to the activity of our non-vested stock option grants: Number of Stock Options Weighted Average Exercise Prices Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding as of December 31, 2017 — $ — — Granted 107,888 20.94 — — Less: Forfeited — — — — Less: Exercised — — — — Outstanding as of December 31, 2018 107,888 $ 20.94 9.76 $ — Vested as of December 31, 2018 — $ — — $ — Exercisable as of December 31, 2018 — $ — — $ — Outstanding as of December 31, 2018 107,888 $ 20.94 9.76 $ — Granted 99,181 16.25 — — Less: Forfeited — — — — Less: Exercised — — — — Outstanding as of December 31, 2019 207,069 $ 18.69 9.00 $ — Vested as of December 31, 2019 35,965 $ 20.94 8.76 $ — Exercisable as of December 31, 2019 35,965 $ 20.94 8.76 $ — Outstanding as of December 31, 2019 207,069 $ 18.69 9.00 $ — Granted 221,541 8.77 — — Less: Forfeited 234,472 12.76 — — Less: Exercised — — — — Less: Expired 50,132 18.94 — — Outstanding as of December 31, 2020 144,006 $ 13.00 8.77 $ — Vested as of December 31, 2020 (1) 80,728 $ 19.01 7.95 $ — Exercisable as of December 31, 2020 30,596 $ 19.11 7.95 $ — |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||
ASU 2016-13 Effect on Retained Earnings | $ 262 | ||||
Allowance for Uncollectible Premium | $ 140 | $ 302 | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Advertising Expense | $ 1,212 | 1,426 | $ 1,674 | ||
Concentration Risk, Percentage | 57.00% | ||||
Cash, FDIC Insured Amount | $ 320,514 | 303,021 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Premium Receivable, Allowance for Credit Loss | 140 | 165 | 405 | $ 384 | |
Reinsurance Recoverable, Allowance for Credit Loss | 386 | 256 | |||
Financing Receivable, Allowance for Credit Loss | 20 | 141 | |||
Total Credit Loss Allowances | 546 | 562 | |||
Charged to Costs and Expenses | (311) | 216 | 597 | ||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | 130 | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | (121) | ||||
Total Credit Loss Allowance Writeoffs | 286 | ||||
Change in Credit Loss Allowance | (302) | ||||
Premium Receivable, Allowance for Credit Loss, Writeoff | 286 | $ 319 | $ 576 | ||
Reinsurance recoverable, allowance for credit loss, writeoff | 0 | ||||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 5,263 | ||||
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit) | $ 12,566 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Total | $ 940,011 | $ 884,861 |
US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 129,417 | 120,260 |
Unrealized gain | 1,147 | 749 |
Unrealized loss | 139 | 193 |
Total | 130,425 | 120,816 |
Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,374 | 3,975 |
Unrealized gain | 142 | 97 |
Unrealized loss | 0 | 1 |
Total | 1,516 | 4,071 |
US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 132,336 | 131,203 |
Unrealized gain | 2,318 | 2,611 |
Unrealized loss | 272 | 63 |
Total | 134,382 | 133,751 |
Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 29,526 | 24,660 |
Unrealized gain | 482 | 700 |
Unrealized loss | 28 | 26 |
Total | 29,980 | 25,334 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 285,814 | 281,892 |
Unrealized gain | 6,633 | 7,123 |
Unrealized loss | 118 | 143 |
Total | 292,329 | 288,872 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 285,639 | 248,206 |
Unrealized gain | 3,039 | 4,174 |
Unrealized loss | 466 | 477 |
Total | 288,212 | 251,903 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 56,351 | 56,487 |
Unrealized gain | 525 | 683 |
Unrealized loss | 219 | 41 |
Total | 56,657 | 57,129 |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 6,257 | 2,915 |
Unrealized gain | 266 | 72 |
Unrealized loss | 13 | 2 |
Total | 6,510 | 2,985 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | 926,714 | 869,598 |
Unrealized gain | 14,552 | 16,209 |
Unrealized loss | 1,255 | 946 |
Total | $ 940,011 | $ 884,861 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities | |||
Gross Realized Gains | $ 70,785 | $ 1,772 | $ 3,201 |
Fair Value at Sale | 811,260 | 213,979 | 47,849 |
Gross Realized Losses | (4,094) | (544) | (1,546) |
Fair Value at Sale | 31,615 | 45,995 | 136,939 |
Net realized gains (losses) | 66,691 | 1,228 | 1,655 |
Net Fair Value at Sale | 842,875 | 259,974 | 184,788 |
Fixed Maturities | |||
Schedule of Available-for-sale Securities | |||
Gross Realized Gains | 32,460 | 1,678 | 373 |
Fair Value at Sale | 678,736 | 209,302 | 41,776 |
Gross Realized Losses | (478) | (324) | (1,376) |
Fair Value at Sale | 16,552 | 43,573 | 135,944 |
Equity Securities | |||
Schedule of Available-for-sale Securities | |||
Gross Realized Gains | 38,325 | 94 | 2,828 |
Fair Value at Sale | 131,178 | 814 | 6,073 |
Gross Realized Losses | (3,602) | (219) | (170) |
Fair Value at Sale | 13,805 | 1,387 | 995 |
Short-term Investments | |||
Schedule of Available-for-sale Securities | |||
Gross Realized Gains | 0 | 0 | 0 |
Fair Value at Sale | 1,346 | 3,863 | 0 |
Gross Realized Losses | (14) | (1) | 0 |
Fair Value at Sale | $ 1,258 | $ 1,035 | $ 0 |
Investments Classified by Matur
Investments Classified by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Total | $ 940,011 | $ 884,861 |
Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 66,420 | |
Due after one year through five years | 209,129 | |
Due after five years through ten years | 295,036 | |
Due after ten years | 14,139 | |
Asset and mortgage backed securities | 341,990 | |
Cost or adjusted/amortized cost | $ 926,714 | 869,598 |
Percent of Total | ||
Due in one year or less | 7.20% | |
Due after one year through five years | 22.60% | |
Due after five years through ten years | 31.80% | |
Due after ten years | 1.50% | |
Asset and mortgage backed securities | 36.90% | |
Total | 100.00% | |
Fair Value | ||
Due in one year or less | $ 66,921 | |
Due after one year through five years | 214,742 | |
Due after five years through ten years | 299,230 | |
Due after ten years | 14,249 | |
Asset or mortgage backed securities | 344,869 | |
Total | $ 940,011 | $ 884,861 |
Percent of Total | ||
Due in one year or less | 7.10% | |
Due after one year through five years | 22.80% | |
Due after five years through ten years | 31.90% | |
Due after ten years | 1.50% | |
Asset and mortgage backed securities | 36.70% | |
Total | 100.00% |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income | |||
Net investment income | $ 25,489 | $ 31,229 | $ 27,201 |
Investment expenses | (1,364) | (1,084) | (1,031) |
Net Investment Income | 24,125 | 30,145 | 26,170 |
Fixed Maturities | |||
Net Investment Income | |||
Net investment income | 21,789 | 23,267 | 22,043 |
Equity Securities | |||
Net Investment Income | |||
Net investment income | 2,155 | 2,474 | 2,206 |
Cash, Cash Equivalents And Short-Term Investments | |||
Net Investment Income | |||
Net investment income | 1,329 | 4,118 | 1,953 |
Other Investments | |||
Net Investment Income | |||
Net investment income | 38 | 1,253 | 942 |
Other Assets | |||
Net Investment Income | |||
Net investment income | $ 178 | $ 117 | $ 57 |
Investments Aging of Unrealized
Investments Aging of Unrealized Losses by Class (Details) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
US Government and Government Agencies and Authorities | ||
Less Than Twelve Months | ||
Number of Securities | security | 44 | 37 |
Gross unrealized losses | $ 129 | $ 89 |
Fair Value | $ 40,341 | $ 26,372 |
Twelve Months or More | ||
Number of securities | security | 18 | 39 |
Gross unrealized losses | $ 10 | $ 104 |
Fair Value | $ 10,482 | $ 31,364 |
Foreign Government Debt Securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 0 | 0 |
Gross unrealized losses | $ 0 | $ 0 |
Fair Value | $ 0 | $ 0 |
Twelve Months or More | ||
Number of securities | security | 0 | 2 |
Gross unrealized losses | $ 0 | $ 1 |
Fair Value | $ 0 | $ 600 |
US States and Political Subdivisions Debt Securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 22 | 31 |
Gross unrealized losses | $ 272 | $ 61 |
Fair Value | $ 30,538 | $ 14,508 |
Twelve Months or More | ||
Number of securities | security | 0 | 2 |
Gross unrealized losses | $ 0 | $ 2 |
Fair Value | $ 0 | $ 1,262 |
Public Utility, Bonds | ||
Less Than Twelve Months | ||
Number of Securities | security | 8 | 9 |
Gross unrealized losses | $ 28 | $ 25 |
Fair Value | $ 9,472 | $ 4,626 |
Twelve Months or More | ||
Number of securities | security | 0 | 2 |
Gross unrealized losses | $ 0 | $ 1 |
Fair Value | $ 0 | $ 250 |
Corporate Debt Securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 40 | 42 |
Gross unrealized losses | $ 116 | $ 124 |
Fair Value | $ 25,052 | $ 22,435 |
Twelve Months or More | ||
Number of securities | security | 3 | 27 |
Gross unrealized losses | $ 2 | $ 19 |
Fair Value | $ 753 | $ 9,605 |
Mortgage Backed Securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 87 | 89 |
Gross unrealized losses | $ 397 | $ 322 |
Fair Value | $ 100,171 | $ 59,101 |
Twelve Months or More | ||
Number of securities | security | 8 | 50 |
Gross unrealized losses | $ 69 | $ 155 |
Fair Value | $ 3,479 | $ 12,738 |
Asset-backed Securities | ||
Less Than Twelve Months | ||
Number of Securities | security | 21 | 15 |
Gross unrealized losses | $ 207 | $ 34 |
Fair Value | $ 17,682 | $ 8,447 |
Twelve Months or More | ||
Number of securities | security | 1 | 5 |
Gross unrealized losses | $ 12 | $ 7 |
Fair Value | $ 988 | $ 1,259 |
Redeemable Preferred Stock | ||
Less Than Twelve Months | ||
Number of Securities | security | 5 | 0 |
Gross unrealized losses | $ 13 | $ 0 |
Fair Value | $ 358 | $ 0 |
Twelve Months or More | ||
Number of securities | security | 0 | 1 |
Gross unrealized losses | $ 0 | $ 2 |
Fair Value | $ 0 | $ 97 |
Fixed Maturities | ||
Less Than Twelve Months | ||
Number of Securities | security | 227 | 223 |
Gross unrealized losses | $ 1,162 | $ 655 |
Fair Value | $ 223,614 | $ 135,489 |
Twelve Months or More | ||
Number of securities | security | 30 | 128 |
Gross unrealized losses | $ 93 | $ 291 |
Fair Value | $ 15,702 | $ 57,175 |
Investments by Category and Lev
Investments by Category and Level (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | $ 985,458 | $ 1,001,970 |
US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 130,425 | 120,816 |
Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 1,516 | 4,071 |
US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 134,382 | 133,751 |
Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 29,980 | 25,334 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 292,329 | 288,872 |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 288,212 | 251,903 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 56,657 | 57,129 |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 6,510 | 2,985 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 940,011 | 884,861 |
Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 152 | 65,453 |
Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 3,663 |
Common Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 44,492 |
Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 7,293 | 3,002 |
Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 7,445 | 116,610 |
Equity Securities, FV-NI | 7,445 | 116,610 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 38,002 | 499 |
Level 1 | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 9,299 | 117,657 |
Level 1 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 1 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 1,554 | 747 |
Level 1 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 1,554 | 747 |
Level 1 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 152 | 65,453 |
Level 1 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 3,663 |
Level 1 | Common Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 44,492 |
Level 1 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 7,293 | 3,002 |
Level 1 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 7,445 | 116,610 |
Level 1 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 300 | 300 |
Level 2 | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 976,159 | 884,313 |
Level 2 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 130,425 | 120,816 |
Level 2 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 1,516 | 4,071 |
Level 2 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 134,382 | 133,751 |
Level 2 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 29,980 | 25,334 |
Level 2 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 292,329 | 288,872 |
Level 2 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 288,212 | 251,903 |
Level 2 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 56,657 | 57,129 |
Level 2 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 4,956 | 2,238 |
Level 2 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 938,457 | 884,114 |
Level 2 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 2 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 2 | Common Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 2 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 2 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 2 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 37,702 | 199 |
Level 3 | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | US Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Foreign Government Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | US States and Political Subdivisions Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Public Utility, Bonds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Public Utility, Equities | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Common Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Nonredeemable Preferred Stock | ||
Schedule of Available-for-sale Securities | ||
Equity Securities, FV-NI | 0 | 0 |
Level 3 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities | 0 | 0 |
Level 3 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | $ 0 | $ 0 |
Investments Fair Value Inputs,
Investments Fair Value Inputs, Assets, Quantitative Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity Securities without Readily Determinable Fair Value | ||
Other investments, cost | $ 981,554 | |
Available-for-sale Securities | 985,458 | $ 1,001,970 |
Limited Partner | ||
Equity Securities without Readily Determinable Fair Value | ||
Other investments, cost | 9,532 | 7,568 |
Unrealized gain | 225 | 2,236 |
Fair value | 9,593 | 9,753 |
Unrealized loss | 164 | 51 |
Certificates of Deposit | ||
Equity Securities without Readily Determinable Fair Value | ||
Certificates of Deposit, at Carrying Value | 300 | 300 |
Other investments, cost | 300 | 300 |
Unrealized gain | 0 | 0 |
Unrealized loss | 0 | 0 |
Short-term Investments | ||
Equity Securities without Readily Determinable Fair Value | ||
Unrealized gain | 0 | 0 |
Fair value | 37,702 | 199 |
Unrealized loss | 1 | 0 |
Available-for-sale Securities | 37,703 | 199 |
Other Long-term Investments | ||
Equity Securities without Readily Determinable Fair Value | ||
Other investments, cost | 47,535 | 8,067 |
Unrealized gain | 225 | 2,236 |
Unrealized loss | 165 | 51 |
Total other investments | $ 47,595 | $ 10,252 |
Investments Restricted Cash (De
Investments Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items | ||
Assets Held-in-trust | $ 61,142 | $ 70,668 |
Regulatory Cash on Deposit | 936 | 920 |
Restricted Cash | $ 62,078 | $ 71,588 |
Investments Equity Investments,
Investments Equity Investments, by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Mutual Fund | ||
Schedule of Equity Investments | ||
Fair Value | $ 152 | $ 65,453 |
Percent of Total | 2.00% | 56.10% |
Public Utility, Equities | ||
Schedule of Equity Investments | ||
Fair Value | $ 0 | $ 3,663 |
Percent of Total | 0.00% | 3.10% |
Common Stock | ||
Schedule of Equity Investments | ||
Fair Value | $ 0 | $ 44,492 |
Percent of Total | 0.00% | 38.20% |
Nonredeemable Preferred Stock | ||
Schedule of Equity Investments | ||
Fair Value | $ 7,293 | $ 3,002 |
Percent of Total | 98.00% | 2.60% |
Equity Securities | ||
Schedule of Equity Investments | ||
Fair Value | $ 7,445 | $ 116,610 |
Percent of Total | 100.00% | 100.00% |
Securities on deposit (Details)
Securities on deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities | ||
Security Deposit | $ 4,023 | $ 4,599 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ (96,454) | $ (29,872) | $ 290 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (95,498) | $ (29,485) | $ 394 |
Weighted-average shares-basic | 42,864,166 | 42,763,423 | 42,650,629 |
Restricted stock award | 0 | 0 | 188,257 |
Weighted-average shares-diluted | 42,864,166 | 42,763,423 | 42,838,886 |
Earnings Per Share, Basic | $ (2.25) | $ (0.70) | $ 0.01 |
Earnings Per Share, Diluted | $ (2.25) | $ (0.70) | $ 0.01 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Deferred policy acquisition costs, beg. balance | $ 104,572 | $ 105,582 |
Deferred Policy Acquisition Cost, Capitalization | 294,423 | 288,842 |
Amortization | (287,216) | (278,161) |
Deferred Sales Commission | (37,365) | (11,691) |
Deferred policy acquisition costs, end. balance | $ 74,414 | $ 104,572 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | |||
Depreciation, Depletion and Amortization | $ 6,441 | $ 6,305 | $ 4,222 |
Headquarter Disposal Costs | $ 2,763 |
Property and equipment table (D
Property and equipment table (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Construction in Progress, Gross | $ 0 | $ 2,180 |
Property, Plant and Equipment, Gross | 59,521 | 51,621 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (25,334) | (18,893) |
Property, Plant and Equipment, Net | 34,187 | 32,728 |
Software in progress | 1,485 | 6,317 |
Land | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 2,114 | 2,114 |
Building | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 9,211 | 11,315 |
Computer Equipment | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 41,910 | 33,219 |
Office Equipment | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 3,172 | 3,260 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | 768 | 20 |
Vehicles | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Gross | $ 2,346 | $ 1,693 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 73,045 | $ 73,045 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 3,555 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,246 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,246 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,640 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 2,438 |
Goowill and Intangible Assets -
Goowill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 4,267 | $ 5,355 | $ 13,920 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (65,657) | $ (61,390) |
Finite-Lived Intangible Assets, Net | 18,173 | 22,440 |
Intangible Assets, Gross (Excluding Goodwill) | 83,830 | 83,830 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 3,757 | 3,639 |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 42,788 | 42,788 |
Finite-Lived Intangible Assets, Accumulated Amortization | (42,788) | (42,788) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 34,661 | 34,661 |
Finite-Lived Intangible Assets, Accumulated Amortization | (19,116) | (15,658) |
Finite-Lived Intangible Assets, Net | $ 15,545 | $ 19,003 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 1 month | 6 years 8 months |
Trade Names | ||
Acquired Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | $ 6,381 | $ 6,381 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3,753) | (2,944) |
Finite-Lived Intangible Assets, Net | $ 2,628 | $ 3,437 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years 3 months | 4 years 4 months |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Reinsurance Retention, All Other Peril, Coverage | $ 110,000 | ||
Ceded Losses and LAE Incurred | 645,204 | $ 549,188 | $ 790,183 |
Ceded Losses and LAE Incurred - Named Storm Ceding | $ 142,145 |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Reinsurance Disclosures [Abstract] | |||
Reinsurance Recoverables on Unpaid Losses | $ 674,746 | $ 482,315 | $ 477,870 |
Reinsurance Recoverables on Paid Losses | 146,410 | 67,821 | |
Reinsurance recoverable on paid and unpaid losses | $ 821,156 | $ 550,136 |
Effects of Reinsurance on Premi
Effects of Reinsurance on Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Direct Premiums Written | $ 1,411,558 | $ 1,278,504 | $ 1,148,190 |
Assumed Premiums Written | 45,305 | 101,764 | 104,211 |
Ceded Premiums Written | (755,871) | (633,275) | (512,270) |
Premiums Written, Net | 700,992 | 746,993 | 740,131 |
Increase (Decrease) in Direct Unearned Premiums | (66,483) | (59,660) | (49,048) |
Increase (Decrease) in Assumed Unearned Premiums | 16,600 | 12,918 | (22,392) |
Increase (Decrease) in Ceded Unearned Premiums | 114,554 | 52,149 | 20,585 |
Increase (Decrease) in Unearned Premiums | 64,671 | 5,407 | (50,855) |
Direct Premiums Earned, Property and Casualty | 1,345,075 | 1,218,844 | 1,099,142 |
Assumed Premiums Earned, Property and Casualty | 61,905 | 114,682 | 81,819 |
Ceded Premiums Earned | (641,317) | (581,126) | (491,685) |
Premiums Earned, Net | 765,663 | 752,400 | 689,276 |
Direct Losses and LAE Incurred | 1,186,401 | 1,003,767 | 1,101,328 |
Assumed Losses and LAE Incurred | 67,119 | 44,914 | 97,444 |
Ceded Losses and LAE Incurred | (645,204) | (549,188) | (790,183) |
Net Losses and LAE Incurred | $ 608,316 | $ 499,493 | $ 408,589 |
Effects of Reinsurance on Losse
Effects of Reinsurance on Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance [Abstract] | ||||
Net Direct Unpaid Losses and LAE | $ 1,042,994 | $ 716,559 | $ 579,710 | |
Net Assumed Unpaid Losses and LAE | 46,972 | 43,798 | 81,493 | |
Unpaid losses and loss adjustment expenses | 1,089,966 | 760,357 | 661,203 | $ 482,232 |
Net Ceded Unpaid Losses and LAE | (674,746) | (482,315) | (477,870) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 415,220 | 278,042 | 183,333 | $ 176,559 |
Direct Unearned Premiums, Net | 703,612 | 637,128 | 577,467 | |
Assumed Unearned Premiums, Net | 20,326 | 36,927 | 49,846 | |
Unearned Premiums, Gross | 723,938 | 674,055 | 627,313 | |
Ceded Unearned Premiums, Net | (384,588) | (270,034) | (217,885) | |
Unearned Premiums, Net | $ 339,350 | $ 404,021 | $ 409,428 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 3,300,000 | |||
Insurance Commissions and Fees, Flood Program | $ 1,467 | $ 1,506 | $ 1,575 | |
Percentage of Flood Premiums Ceded | 100.00% | |||
Increase (Decrease) in Ceded Losses and LAE Incurred | $ (96,016) |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Current Year Claims and Claims Adjustment Expense | $ 615,102 | $ 466,359 | $ 404,271 | |
Prior Year Claims and Claims Adjustment Expense | (6,786) | 33,134 | 4,318 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 608,316 | 499,493 | 408,589 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 320,389 | 275,488 | 283,821 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 150,749 | 129,296 | 117,994 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 471,138 | 404,784 | 401,815 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 415,220 | 278,042 | 183,333 | $ 176,559 |
Reinsurance Recoverable on Unpaid Losses and LAE | 305,673 | |||
Unpaid losses and loss adjustment expenses | 1,089,966 | 760,357 | 661,203 | $ 482,232 |
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | 392,717 | 300,858 | 270,601 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | 697,249 | 459,499 | 390,602 | |
Reinsurance Recoverables on Unpaid Losses | $ 674,746 | $ 482,315 | $ 477,870 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expense - Claims Development (Details) $ in Thousands | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development | ||||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 398,409 | $ 264,556 | ||||||||
Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 2,688,702 | |||||||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 398,409 | 264,556 | ||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 2,290,573 | |||||||||
Short-duration Insurance Contracts, Accident Year 2011 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 80,086 | 80,199 | $ 80,289 | $ 80,014 | $ 79,985 | $ 79,234 | $ 77,649 | $ 78,763 | $ 79,142 | $ 77,706 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 24 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 7,400 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 80,062 | 80,020 | 80,002 | 79,480 | 79,052 | 77,022 | 73,215 | 69,461 | 62,812 | $ 44,547 |
Short-duration Insurance Contracts, Accident Year 2012 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 90,890 | 90,879 | 91,095 | 90,817 | 86,818 | 87,571 | 87,963 | 88,629 | 87,276 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 124 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 12,048 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 90,563 | 90,447 | 90,580 | 90,356 | 86,013 | 82,908 | 79,810 | 75,213 | $ 52,394 | |
Short-duration Insurance Contracts, Accident Year 2013 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 106,600 | 106,450 | 106,132 | 106,222 | 106,820 | 110,268 | 106,992 | 113,477 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 171 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 8,911 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 105,927 | 105,686 | 105,201 | 104,669 | 103,441 | 99,196 | 94,969 | $ 69,615 | ||
Short-duration Insurance Contracts, Accident Year 2014 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 156,300 | 155,956 | 156,037 | 156,868 | 155,729 | 154,167 | 155,008 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 331 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 13,458 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 155,287 | 154,597 | 153,593 | 151,954 | 147,031 | 135,301 | $ 98,762 | |||
Short-duration Insurance Contracts, Accident Year 2015 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 244,109 | 242,610 | 242,508 | 239,784 | 236,059 | 217,832 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 750 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 20,337 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 240,086 | 237,573 | 234,018 | 227,661 | 210,261 | $ 145,180 | ||||
Short-duration Insurance Contracts, Accident Year 2016 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 297,195 | 295,611 | 293,785 | 294,271 | 304,961 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,801 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 31,143 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 291,219 | 288,425 | 280,203 | 265,069 | $ 193,876 | |||||
Short-duration Insurance Contracts, Accident Year 2017 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 371,447 | 359,018 | 345,647 | 332,339 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 10,920 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 86,305 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 349,380 | 327,986 | 313,883 | $ 217,983 | ||||||
Short-duration Insurance Contracts, Accident Year 2018 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 402,966 | 389,841 | 360,919 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7,681 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 48,440 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 380,504 | 352,422 | $ 247,365 | |||||||
Short-duration Insurance Contracts, Accident Year 2019 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 387,164 | 421,426 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 22,533 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 39,332 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 327,965 | $ 240,533 | ||||||||
Short-duration Insurance Contracts, Accident Year 2020 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 551,945 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 173,404 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | claim | 44,465 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 269,580 | |||||||||
Short-duration Insurance Contracts, Accident Year 2010 | Property and Casualty, Personal Insurance Product Line | ||||||||||
Claims Development | ||||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 280 |
Liability for Unpaid Losses a_5
Liability for Unpaid Losses and Loss Adjustment Expenses - Percentage Payout (Details) - Property and Casualty, Personal Insurance Product Line | Dec. 31, 2020 |
Short-duration Insurance Contracts, Historical Claims Duration | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 60.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 24.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 6.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 3.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | (0.10%) |
Liability for Unpaid Losses a_6
Liability for Unpaid Losses and Loss Adjustment Expense - Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | $ 674,746 | $ 482,315 | $ 477,870 | |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 16,811 | 13,486 | ||
Unpaid losses and loss adjustment expenses | 1,089,966 | 760,357 | $ 661,203 | $ 482,232 |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | 398,409 | 264,556 | ||
Property and Casualty, Personal Insurance Product Line | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | ||||
Reinsurance Recoverables on Unpaid Losses | 674,746 | 482,315 | ||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net | $ 398,409 | $ 264,556 |
Long-Term Debt, Fiscal Year Mat
Long-Term Debt, Fiscal Year Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 1,523 | |
2022 | 1,523 | |
2023 | 1,523 | |
2024 | 1,523 | |
2025 | 1,523 | |
Thereafter | 152,761 | |
Total debt | $ 160,376 | $ 161,605 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | May 26, 2016 | Sep. 22, 2006 |
Debt Instrument | ||||
Notes Payable, Noncurrent | $ 158,041 | $ 158,932 | ||
BB&T Term Note Payable | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Effective Percentage | 1.81% | |||
Notes Payable, Noncurrent | $ 5,200 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.65% | |||
SBA Note Payable | ||||
Debt Instrument | ||||
Notes Payable, Noncurrent | $ 20,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.66% | |||
150M Senior Notes | ||||
Debt Instrument | ||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | |||
Debt Issuance Costs, Gross | $ 0 | $ 0 | |
Amortization of Debt Issuance Costs | 338 | 337 | |
Debt Issuance Costs, Net | $ 2,335 | $ 2,673 | $ 3,010 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | May 26, 2016 | |
Debt Instrument | |||
Long-term Debt | $ 160,376 | $ 161,605 | |
BB&T Term Note Payable | |||
Debt Instrument | |||
Debt Instrument, Maturity Date | May 26, 2031 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.65% | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.81% | ||
Long-term Debt, Fair Value | $ 3,611 | 3,958 | |
SBA Note Payable | |||
Debt Instrument | |||
Debt Instrument, Maturity Date | Jul. 1, 2026 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.66% | ||
Long-term Debt, Fair Value | $ 6,765 | 7,647 | |
150M Senior Notes | |||
Debt Instrument | |||
Debt Instrument, Maturity Date | Dec. 15, 2027 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | ||
Long-term Debt, Fair Value | $ 150,000 | $ 150,000 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ (27,310) | $ 58 | $ (1,510) |
Deferred Federal Income Tax Expense (Benefit) | (6,611) | (4,520) | (1,240) |
Federal Income Tax Expense (Benefit), Continuing Operations | (33,921) | (4,462) | (2,750) |
Current State and Local Tax Expense (Benefit) | 598 | 1,100 | (654) |
Deferred State and Local Income Tax Expense (Benefit) | (3,282) | 241 | (1,229) |
State and Local Income Tax Expense (Benefit), Continuing Operations | (2,684) | 1,341 | (1,883) |
Income Tax Expense (Benefit) | (36,605) | (3,121) | $ (4,633) |
Deferred tax assets: | |||
Deferred Tax Asset, Unearned Premiums | 16,404 | 19,482 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 4,027 | 2,300 | |
Deferred Tax Assets, Other | 1,189 | 1,451 | |
Deferred Tax Assets, Gross | 31,223 | 33,134 | |
Deferred tax liabilities: | |||
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (20,191) | (27,939) | |
Deferred Tax Liabilities, Intangible Assets | (4,553) | (5,631) | |
Deferred Tax Liabilities, Gross | 35,392 | 47,696 | |
Deferred Tax Liabilities, Property, Plant and Equipment | (5,618) | (2,728) | |
Deferred Tax Assets, Net | $ 4,169 | $ 14,562 |
Tax Expense Reconciliation (Det
Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (27,741) | $ (6,847) | $ (875) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (3,603) | (882) | (1,205) |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | (141) | (195) | (170) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | 600 | 1,349 | 564 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Other, Amount | 2,230 | (3,415) | (1,391) |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | (12,566) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | 280 | 587 | 735 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 5,505 | 989 | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (721) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 0 | 0 | (821) |
Other Tax Expense (Benefit) | 112 | (363) | 0 |
Income Tax Expense (Benefit) | $ (36,605) | $ (3,121) | $ (4,633) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Deferred Tax Asset, Unearned Premiums | $ 16,404 | $ 19,482 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 4,027 | 2,300 | ||
Deferred Tax Assets, in Process Research and Development | 1,686 | 0 | ||
Deferred Tax Assets, Other Loss Carryforwards | 6,511 | 2,181 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 7,900 | 8,709 | ||
Deferred Tax Assets, Other | 1,189 | 1,451 | ||
Deferred Tax Assets, Gross (Pre Allowance) | 37,717 | 34,123 | ||
Deferred Tax Assets, Gross | 31,223 | 33,134 | ||
Deferred Tax Assets, Valuation Allowance | (6,494) | (989) | $ 0 | $ (6,494) |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | (20,191) | (27,939) | ||
Deferred Tax Liabilities, Other Finite-Lived Assets | (3,253) | (10,484) | ||
Deferred Tax Liabilities, Intangible Assets | (4,553) | (5,631) | ||
Deferred Tax Liabilities, Property, Plant and Equipment | (5,618) | (2,728) | ||
Deferred Tax Liabilities, Prepaid Expenses | (725) | (762) | ||
Deferred Tax Liabilities, Investments | (78) | (152) | ||
Deferred Tax Liabilities, Property, Plant and Equipment | (5,618) | (2,728) | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Domestic Subsidiaries | (974) | 0 | ||
Deferred Tax Liabilities, Gross | (35,392) | (47,696) | ||
Deferred Tax Assets, Net | $ (4,169) | $ (14,562) |
Unrecognized Tax Benefit (Detai
Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unrecognized Tax Benefit [Line Items] | ||
Unrecognized Tax Benefits | $ 683 | $ 0 |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 683 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Unrecognized Tax Benefit [Line Items] | |
Business Tax Credits Subject to Expiration | $ 1,686 |
State | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 90,963 |
Unrecognized Tax Benefit [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 90,963 |
Federal | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 1,168 |
Unrecognized Tax Benefit [Line Items] | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 1,168 |
Operating Loss Carryforward Subject to Expiration | $ 17,143 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 370,720 | $ 415,948 | |
Statutory Accounting Practices, Statutory Net Income Amount | (28,326) | $ (38,507) | $ (5,199) |
UPC, Subsidiary | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 142,399 | ||
American Coastal Insurance Company | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 81,179 | ||
Family Security Holdings (FSH) | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 40,635 | ||
Interboro Insurance Company | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 34,214 | ||
Journey Insurance Company | |||
Statutory Accounting Practices | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 60,128 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 610 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 603 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 586 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 588 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 254 | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 24 | |
Total Lease Future Payments Year 1 | 634 | |
Finance Lease, Liability, Payments, Due Year Two | 14 | |
Total Lease Future Payments Year 2 | 617 | |
Finance Lease, Liability, Payments, Due Year Three | 4 | |
Total Lease Future Payments Year 3 | 590 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Total Lease Future Payments Year 4 | 588 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Total Lease Future Payments Year 5 | 254 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 1,190 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Total Lease Future Payments Thereafter | 1,190 | |
Operating Leases, Future Minimum Payments Due | 3,831 | |
Finance Lease, Liability, Payment, Due | 42 | |
Total Lease Future Payments | 3,873 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,520) | |
Finance Lease, Liability, Undiscounted Excess Amount | (6) | |
Total Lease Liability Undiscounted Excess Amount | (1,526) | |
Operating Lease, Liability | 2,311 | $ 324 |
Finance Lease, Liability | 36 | 34 |
Total Lease Liability | $ 2,347 | $ 358 |
Commitments and Contingencies_2
Commitments and Contingencies Lease, Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Costs [Abstract] | ||
Operating Lease, Expense | $ 630 | $ 183 |
Finance Lease, Right-of-Use Asset, Amortization | 702 | 396 |
Finance Lease, Interest Expense | 1 | 1 |
Short-term Lease, Cost | 0 | 139 |
Lease, Cost | $ 1,333 | $ 719 |
Commitments and Contingencies_3
Commitments and Contingencies Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lease Assets and Liabilities [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 2,168 | $ 335 |
Finance Lease, Right-of-Use Asset | 1,214 | 1,263 |
Total Lease Assets | 3,382 | 1,598 |
Operating Lease, Liability | 2,311 | 324 |
Finance Lease, Liability | 36 | 34 |
Total Lease Liability | $ 2,347 | $ 358 |
Commitments and Contingencies W
Commitments and Contingencies Weighted Average Lease Terms (Details) | Dec. 31, 2020Rate | Dec. 31, 2019Rate |
Weighted Average Lease Terms [Abstract] | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5 years 7 months | |
Finance Lease, Weighted Average Discount Rate, Percent | 3.27% | 3.27% |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 11 months |
Commitments and Contingencies_4
Commitments and Contingencies Lease Liability Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Lease Liability Activity [Abstract] | ||
Finance Lease, Principal Payments | $ 631 | $ 1,081 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,471 | 7 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 652 | $ 1,111 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Legal Fees | |||
Related Party Transaction | |||
Related Party Transaction, Amounts of Transaction | $ 2,407 | ||
Spouse of Executive Officer | Legal Fees | |||
Related Party Transaction | |||
Related Party Transaction, Amounts of Transaction | 1,204 | ||
Related interest in billings (percentage) | 50.00% | ||
Director | AmRisc gross written premiums | |||
Related Party Transaction | |||
Related Party Transaction, Amounts of Transaction | $ 406,914 | 361,904 | |
Director | AmRisc Fees and Commission | |||
Related Party Transaction | |||
Related Party Transaction, Amounts of Transaction | 107,577 | 95,920 | |
Director | AmRisc ceded premiums written | |||
Related Party Transaction | |||
Related Party Transaction, Amounts of Transaction | $ 6,253 | $ 5,146 |
Employee Benefit Plan - Narrati
Employee Benefit Plan - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plan [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 100.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||
Defined Contribution Plan, Cost | $ 1,381 | $ 787 | $ 861 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit | $ 3,096 | $ 3,643 | $ (2,880) | $ (139) | $ 2,823 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 9,693 | 11,319 | (9,030) | (117) | 9,221 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | 64,726 | 28,366 | (22,264) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 66,691 | 1,228 | 1,655 | ||
AOCI before Tax, Attributable to Parent | 12,789 | 14,962 | (11,910) | (256) | $ 12,044 |
AOCI Before Tax Attributable to Parent after Cumulative Effect Adjustment | (12,300) | ||||
AOCI Tax Attributable to Parent After Cumulative Effect Adjustment | 2,962 | ||||
AOCI Net of Tax After Cumulative Effect Adjustment | $ (9,338) | ||||
Consolidated Entity Excluding Noncontrolling Interests | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, before Tax | (64,421) | (28,089) | 9,999 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 66,594 | 1,217 | 1,655 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 16,648 | (304) | 414 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 49,946 | 1,521 | 1,241 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (48,320) | (21,870) | 7,672 | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax | $ (16,101) | $ (6,219) | $ 2,327 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividend paid to parent | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||
Dividends, Common Stock, Cash | $ 2,583 | $ 2,581 | $ 2,578 | $ 2,571 | $ 2,570 | $ 2,571 | $ 2,570 | $ 2,569 | $ 2,569 | $ 2,569 | $ 2,565 | $ 2,565 | $ 10,313 | $ 10,280 | $ 10,268 |
Stock Based Compensation Expens
Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 9 months | 8 years 9 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 11 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 7 years 11 months | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 112 | $ 296 | $ 418 |
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 1,798 | ||
Share-based Payment Arrangement, Expense | 876 | 2,019 | 1,095 |
Share-based Payment Arrangement, Expense, after Tax | 692 | 1,595 | 865 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 135 | ||
Share-based Payment Arrangement, Expense | 506 | 988 | 1,319 |
Share-based Payment Arrangement, Expense, after Tax | $ 400 | $ 781 | $ 1,042 |
Stock-Based Compensation Non-Ve
Stock-Based Compensation Non-Vested Common Stock Grants (Details) - Restricted Stock - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Granted shares | 386,101 | 134,231 | 174,602 | |
Granted (fair value | $ 9.33 | $ 16.24 | $ 20.07 | |
Less: Forfeited shares | 232,323 | 6,059 | 21,502 | |
Less: Forfeited (fair value) | $ 12.61 | $ 20.15 | $ 18.82 | |
Less: Vested shares | 109,267 | 131,613 | 147,258 | |
Less: Vested (fair value) | $ 16.63 | $ 19.22 | $ 16.68 | |
Outstanding shares | 259,006 | 214,495 | 217,936 | 212,094 |
Outstanding (fair value) | $ 10.06 | $ 17.49 | $ 18.96 | $ 16.44 |
Stock-Based Compensation Weight
Stock-Based Compensation Weighted-Average Assumptions - Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2020Rate | Dec. 31, 2019Rate | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.57% | 4.00% |
Expected annual dividend yield | 1.70% | |
Expected volatility | 41.59% | |
Risk-free interest rate | 2.35% | |
Expected term | 6 years |
Stock-Based Compensation Non-_2
Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 0 | $ 0 |
Exercisable Shares | 30,596 | 35,965 | 0 |
Granted Shares | 221,541 | 99,181 | 107,888 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0 | $ 0 | $ 0 |
Outstanding Shares | 144,006 | 207,069 | 107,888 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding (Weighted-Average Exercise) | $ 13 | $ 18.69 | $ 20.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 80,728 | 35,965 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 |
Granted (Weighted-Average Exercise) | $ 8.77 | $ 16.25 | $ 20.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $ 0 | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 234,472 | 0 | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 18.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 50,132 | ||
Less: Forfeited (Weighted-Average Exercise) | $ 12.76 | $ 0 | $ 0 |
Less: Vested (Weighted-Average Grant Date) | 2.68 | 5.96 | 8.26 |
Less: Vested (Weighted-Average Exercise) | 19.01 | 20.94 | 0 |
Exercisable (Weighted-Average Exercise) | $ 19.11 | $ 20.94 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 24, 2021USD ($) | Feb. 16, 2021$ / shares | Jan. 18, 2021USD ($)numberOfShares | Jan. 06, 2021USD ($) | Dec. 31, 2020$ / shares | Sep. 30, 2020$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Sep. 30, 2019$ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Feb. 19, 2021USD ($) |
Subsequent Event | |||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||||
Subsequent Event | |||||||||||||||||
Subsequent Event | |||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | ||||||||||||||||
Proceeds from Contributions from Parent | $ 3,500 | ||||||||||||||||
Payments for (Proceeds from) Limited Partnership | $ 5,000 | ||||||||||||||||
Dividend paid to Parent Company | $ 3,500 | ||||||||||||||||
Insurance Commissions | $ 3,100 | ||||||||||||||||
Common Stock Payment Received | numberOfShares | 100,000 | ||||||||||||||||
Renewal Right Premium Value | $ 80,000 |
Schedule I (Details)
Schedule I (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Other investments, cost | $ 981,554 | |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 940,011 | $ 884,861 |
Equity Securities | 7,445 | 116,610 |
Other Long-term Investments | 47,595 | 10,252 |
Investments | 995,051 | 1,011,723 |
US Government and Government Agencies and Authorities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 129,417 | 120,260 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 130,425 | 120,816 |
Foreign Government Debt Securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,374 | 3,975 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 1,516 | 4,071 |
US States and Political Subdivisions Debt Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 132,336 | 131,203 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 134,382 | 133,751 |
Public Utility, Bonds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 29,526 | 24,660 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 29,980 | 25,334 |
Asset-backed Securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 56,351 | 56,487 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 56,657 | 57,129 |
All Other Corporate Bonds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 285,814 | 281,892 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 292,329 | 288,872 |
Mortgage Backed Securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 285,639 | 248,206 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 288,212 | 251,903 |
Other Assets | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 288,212 | |
Redeemable Preferred Stock | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 6,257 | 2,915 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 6,510 | 2,985 |
Fixed Maturities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 926,714 | |
Fixed Maturities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Debt Securities, Available-for-sale, Amortized Cost | 926,714 | 869,598 |
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 940,011 | 884,861 |
Mutual Fund | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Equity Securities | 152 | |
Cost | 151 | |
Fair Value | 152 | 65,453 |
Public Utility, Equities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Fair Value | 0 | 3,663 |
Common Stock | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Fair Value | 0 | 44,492 |
Nonredeemable Preferred Stock | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Equity Securities | 7,293 | |
Cost | 7,154 | |
Fair Value | 7,293 | 3,002 |
Equity Securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Equity Securities, Amortized Cost Basis | 7,305 | |
Equity Securities | 7,445 | |
Fair Value | 7,445 | $ 116,610 |
Other Long-term Investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties | ||
Other investments, cost | 47,535 | |
Other Long-term Investments | $ 47,595 |
Schedule II Balance Sheet (Deta
Schedule II Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | $ 940,011 | $ 884,861 | |||
Equity securities | 7,445 | 116,610 | |||
Cash and cash equivalents | 239,420 | 215,469 | |||
Accrued investment income | 4,680 | 5,901 | |||
Goodwill | 73,045 | 73,045 | |||
Property, Plant and Equipment, Net | 34,187 | 32,728 | |||
Other Assets | 51,053 | 19,375 | |||
Total Assets | 2,848,941 | 2,467,218 | |||
Accounts Payable and Accrued Expenses | 91,173 | 78,592 | |||
Total Lease Liability | 2,347 | 358 | |||
Other Liabilities | 46,365 | 47,407 | |||
Notes payable | 158,041 | 158,932 | |||
Total Liabilities | 2,431,342 | 1,943,353 | |||
Common Stock, Value, Issued | 4 | 4 | |||
Additional Paid in Capital | 393,122 | 391,852 | |||
Treasury Stock, Value | (431) | (431) | |||
Accumulated other comprehensive income | 9,693 | 11,319 | $ (9,030) | $ (117) | $ 9,221 |
Retained Earnings (Accumulated Deficit) | (6,635) | 100,394 | |||
Total Stockholders' Equity | 395,753 | 503,138 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 21,846 | 20,727 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 417,599 | 523,865 | 540,369 | 537,125 | |
Liabilities and Equity | 2,848,941 | 2,467,218 | |||
Parent Company | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Fixed maturities, available-for-sale (amortized cost of $926,714 and $869,598, respectively) | 2,971 | 15,020 | |||
Equity Securities, FV-NI | 114 | 18,594 | |||
Cash and cash equivalents | 17,828 | 3,160 | $ 4,567 | $ 79,331 | |
Accrued investment income | 9 | 79 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 562,448 | 644,015 | |||
Goodwill | 10,157 | 10,157 | |||
Property, Plant and Equipment, Net | 9,144 | 12,010 | |||
Other Assets | 6,944 | 4,187 | |||
Total Assets | 609,615 | 707,222 | |||
Due to Related Parties | 37,401 | 31,401 | |||
Accounts Payable and Accrued Expenses | 1,352 | 421 | |||
Total Lease Liability | 46 | 64 | |||
Other Liabilities | 1,679 | 186 | |||
Notes payable | 151,276 | 151,285 | |||
Total Liabilities | 191,754 | 183,357 | |||
Common Stock, Value, Issued | 4 | 4 | |||
Additional Paid in Capital | 393,122 | 391,852 | |||
Treasury Stock, Value | (431) | (431) | |||
Accumulated other comprehensive income | 9,693 | 11,319 | |||
Retained Earnings (Accumulated Deficit) | (6,373) | 100,394 | |||
Total Stockholders' Equity | 396,015 | 503,138 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 21,846 | 20,727 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 417,861 | 523,865 | |||
Liabilities and Equity | $ 609,615 | $ 707,222 |
Schedule II Income Statement (D
Schedule II Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions | |||
Net investment income | $ 25,489 | $ 31,229 | $ 27,201 |
Unrealized Gain (Loss) on Securities | (27,562) | 24,761 | (9,300) |
Total revenue | 846,656 | 825,116 | 723,942 |
General and Administrative Expense | 72,057 | 65,989 | 66,112 |
Interest Expense | 9,582 | 9,781 | 9,866 |
Total expenses | 978,833 | 857,841 | 728,297 |
Operating Income (Loss) | (132,177) | (32,725) | (4,355) |
Other Income | 74 | 119 | 116 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 132,103 | 32,606 | 4,239 |
Income Tax Expense (Benefit) | (36,605) | (3,121) | (4,633) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 |
Net income | (96,454) | (29,872) | 290 |
Net Income (Loss) Attributable to Noncontrolling Interest | 956 | 387 | 104 |
Change in net unrealized gain (loss) on investments | 64,726 | 28,366 | (22,264) |
Reclassification adjustment for net realized investment gains | (66,691) | (1,228) | (1,655) |
Income tax benefit (expense) related to items of other comprehensive income | 502 | (6,588) | 5,703 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (96,961) | (8,935) | (17,822) |
Total comprehensive income | (98,080) | (9,523) | (17,961) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 1,119 | 588 | 139 |
Parent Company | |||
Condensed Income Statements, Captions | |||
Income (Loss) from Subsidiaries, Net of Tax | (83,434) | (24,131) | 10,124 |
Realized Investment Gains (Losses) | 4,971 | 63 | (160) |
Net investment income | 520 | 1,156 | 2,353 |
Unrealized Gain (Loss) on Securities | (2,812) | 4,036 | (1,223) |
Total revenue | (80,755) | (18,876) | 11,094 |
Operating Expenses | 181 | 219 | 198 |
General and Administrative Expense | 6,912 | 3,042 | 3,416 |
Interest Expense | 9,465 | 9,499 | 9,557 |
Total expenses | 16,558 | 12,760 | 13,171 |
Operating Income (Loss) | (97,313) | (31,636) | (2,077) |
Other Income | 0 | 0 | 11 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 97,313 | 31,636 | 2,066 |
Income Tax Expense (Benefit) | (1,815) | (2,151) | (2,460) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 |
Net income | (96,454) | (29,872) | 290 |
Net Income (Loss) Attributable to Noncontrolling Interest | 956 | 387 | 104 |
Change in net unrealized gain (loss) on investments | 64,726 | 28,366 | (22,264) |
Reclassification adjustment for net realized investment gains | (66,691) | (1,228) | (1,655) |
Income tax benefit (expense) related to items of other comprehensive income | 502 | (6,588) | 5,703 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (96,961) | (8,935) | (17,822) |
Total comprehensive income | (98,080) | (9,523) | (17,961) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 1,119 | $ 588 | $ 139 |
Schedule II Statement of Cash F
Schedule II Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (95,498) | $ (29,485) | $ 394 | |
Depreciation and amortization | 11,046 | 11,997 | 18,482 | |
Accretion (Amortization) of Discounts and Premiums, Investments | 6,422 | 5,323 | 5,005 | |
Unrealized Gain (Loss) on Investments | 27,562 | (24,761) | 9,300 | |
Net realized gains (losses) | (66,691) | (1,228) | (1,655) | |
Increase (Decrease) in Deferred Income Taxes | (9,894) | (4,280) | (2,470) | |
Share-based Payment Arrangement, Noncash Expense | 1,382 | 3,007 | 2,414 | |
Increase (Decrease) in Accrued Investment Income Receivable | 1,221 | 116 | (440) | |
Increase (Decrease) in Other Operating Assets | (31,917) | (6,817) | (1,545) | |
Accounts payable | 12,581 | 7,544 | 24,454 | |
Change in Operating Lease Liability | 1,987 | 324 | 0 | |
Increase (Decrease) in Other Operating Liabilities | 9,353 | 15,528 | (51,048) | |
Net Cash Provided by (Used in) Operating Activities | (10,471) | 149,015 | 25,759 | |
Proceeds from sales and maturities of investments available for sale | 695,288 | 255,197 | 219,572 | |
Payments to Acquire Property, Plant, and Equipment | (10,848) | (21,896) | (4,068) | |
Net Cash Provided by (Used in) Investing Activities | 36,566 | (33,979) | (125,642) | |
Payment, Tax Withholding, Share-based Payment Arrangement | (112) | (296) | (418) | |
Repayments of Long-term Debt | 1,229 | 1,523 | 1,523 | |
Payments of Debt Issuance Costs | 0 | 0 | 63 | |
Payments of Dividends | 10,313 | 10,280 | 10,268 | |
Net Cash Provided by (Used in) Financing Activities | (11,654) | (12,099) | 7,728 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 14,441 | 102,937 | (92,155) | |
Cash and Cash Equivalents, at Carrying Value | 239,420 | 215,469 | ||
Parent Company | ||||
Condensed Cash Flow Statements, Captions | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (95,498) | (29,485) | 394 | |
Dividend from Subsidiary | 0 | (1,764) | 51,764 | |
Depreciation and amortization | 2,054 | 1,131 | 1,079 | |
Accretion (Amortization) of Discounts and Premiums, Investments | 42 | 66 | (6) | |
Unrealized Gain (Loss) on Investments | 2,812 | (4,036) | 1,223 | |
Net realized gains (losses) | (4,971) | (63) | 160 | |
Increase (Decrease) in Deferred Income Taxes | 644 | (511) | (570) | |
Share-based Payment Arrangement, Noncash Expense | 1,382 | 3,007 | 2,414 | |
Increase (Decrease) in Accrued Investment Income Receivable | 70 | 113 | (192) | |
Increase (Decrease) in Other Operating Assets | (3,682) | 9,976 | (908) | |
Accounts payable | 931 | (22) | (524) | |
Increase (Decrease) in Notes Payable, Related Parties | 6,000 | (16,702) | 21,975 | |
Change in Operating Lease Liability | (18) | 64 | 0 | |
Increase (Decrease) in Other Operating Liabilities | 966 | 313 | 0 | |
Net Cash Provided by (Used in) Operating Activities | (86,505) | (37,913) | 76,809 | |
Proceeds from sales and maturities of investments available for sale | 32,518 | 35,036 | 37,315 | |
Payments to Acquire Investments | (317) | (3,567) | (72,635) | |
Payments to Acquire Interest in Subsidiaries and Affiliates | 80,432 | 20,709 | (104,125) | |
Payments to Acquire Property, Plant, and Equipment | (688) | (4,749) | (1,032) | |
Net Cash Provided by (Used in) Investing Activities | 111,945 | 47,429 | (140,477) | |
Payment, Tax Withholding, Share-based Payment Arrangement | (112) | (296) | (418) | |
Repayments of Long-term Debt | (347) | (347) | (347) | |
Payments of Debt Issuance Costs | 0 | 0 | (63) | |
Proceeds from Issuance of Debt | 0 | 0 | 0 | |
Payments of Dividends | (10,313) | (10,280) | (10,268) | |
Net Cash Provided by (Used in) Financing Activities | (10,772) | (10,923) | (11,096) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 14,668 | (1,407) | (74,764) | |
Cash and Cash Equivalents, at Carrying Value | 17,828 | 3,160 | 4,567 | $ 79,331 |
Property, Plant and Equipment, Disposals | $ 2,763 | $ 0 | $ 0 |
Schedule IV (Details)
Schedule IV (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||
Direct Premiums Written | $ 1,411,558 | $ 1,278,504 | $ 1,148,190 |
Ceded Premiums Written | 755,871 | 633,275 | 512,270 |
Assumed Premiums Written | 45,305 | 101,764 | 104,211 |
Premiums Written, Net | $ 700,992 | $ 746,993 | $ 740,131 |
premiums assumed as percentage of net premiums | 6.50% | 13.60% | 14.10% |
Schedule V (Details)
Schedule V (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure | ||||
Deferred Tax Assets, Valuation Allowance | $ 6,494 | $ 989 | $ 0 | $ 6,494 |
Uncollectible Premium Liability, Beg. Balance | 165 | 405 | 384 | |
Charged to Costs and Expenses | (311) | 216 | 597 | |
Deductions | (286) | (319) | (576) | |
Uncollectible Premium Liability, End. Balance | 140 | 165 | 405 | |
Premium Receivable, Allowance for Credit Loss, Recovery | 286 | |||
Premium receivable ASU 2016-13 adjustment | (137) | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 5,505 | 989 | $ 0 | |
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 302 |
Schedule VI - Supplemental In_2
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations Schedule VI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |||
Reserves for Unpaid Losses and LAE | $ 1,089,966 | $ 760,357 | $ 661,203 |
Incurred Losses and LAE Current Year | 615,102 | 466,359 | 404,271 |
Incurred Losses and LAE Prior Years | (6,786) | 33,134 | 4,318 |
Paid Losses and LAE | 471,138 | 404,784 | 401,815 |
Net Investment Income | 24,125 | 30,145 | 26,170 |
Deferred Policy Acquisition Costs (DPAC) | 74,414 | 104,572 | 105,582 |
Amortization of DPAC | 287,216 | 278,161 | 225,900 |
Net Premiums Written | 700,992 | 746,993 | 740,131 |
Net Premiums Earned | 765,663 | 752,400 | 689,276 |
Unearned Premiums | $ 723,938 | $ 674,055 | $ 627,313 |