Document & Entity Information
Document & Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 15, 2023 | |
Document and Entity Information [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 800 2nd Avenue S. | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Trading Symbol | UIHC | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Registrant Name | United Insurance Holdings Corp. | |
City Area Code | 727- | |
Local Phone Number | 895-7737 | |
Central Index Key | 0001401521 | |
Filer Category | Non-accelerated Filer | |
Common Stock, Shares, Outstanding | 43,287,573 | |
Document Transition Report | false | |
Entity File Number | 001-35761 | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Address, City or Town | St. Petersburg, | |
Entity Address, State or Province | FL | |
Entity Tax Identification Number | 75-3241967 | |
Entity Address, Postal Zip Code | 33701 | |
Document Period End Date | Mar. 31, 2023 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, at fair value: | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | $ 210,733 | $ 204,682 |
Equity Securities, FV-NI | 16,181 | 15,657 |
Other investments (amortized cost of $16,780 and $17,131 | 3,550 | 3,675 |
Total investments | 230,464 | 224,014 |
Cash and Cash Equivalents | 92,586 | 70,903 |
Restricted Cash | 49,671 | 45,988 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 142,257 | 116,891 |
Accrued Investment Income | 1,818 | 1,605 |
Property and equipment, net | 18,118 | 19,591 |
Premiums receivable, net (credit allowance of $28 and $32) | 48,120 | 39,301 |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563) | 792,350 | 796,546 |
Ceded uneared premiums | 65,702 | 90,496 |
Goodwill | 59,476 | 59,476 |
Deferred policy acquisition costs | 59,897 | 60,979 |
Intangible Assets, Net (Excluding Goodwill) | 11,758 | 12,770 |
Other assets, net | 15,426 | 3,920 |
Total Assets | 1,445,386 | 2,837,496 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 748,365 | 842,958 |
Unearned Premiums | 301,625 | 258,978 |
Reinsurance Payable | 33,908 | 30,503 |
Payments outstanding | 2,326 | 2,000 |
Accounts Payable | 89,582 | 75,374 |
Operating Lease, Liability | 1,412 | 1,689 |
Other Liabilities | 36,242 | 17,466 |
Notes Payable | 148,438 | 148,355 |
Total Liabilities | 1,361,898 | 3,019,535 |
Commitments and Contingencies | ||
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; 43,525,249 and 43,360,429 issued; 43,313,166 and 43,370,442 outstanding, respectively | 4 | 4 |
Additional Paid in Capital | 395,966 | 395,631 |
Treasury shares, at cost; 212,083 shares | (431) | (431) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (25,629) | (30,947) |
Retained Earnings | (286,422) | (546,296) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 83,488 | (182,039) |
Total Liabilities and Stockholders' Equity | 1,445,386 | 2,837,496 |
Disposal Group, Including Discontinued Operation, Assets | 0 | 1,411,907 |
Disposal Group, Including Discontinued Operation, Liabilities | $ 0 | $ 1,642,212 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 43,486,442 | 43,492,256 |
Common Stock, Shares, Outstanding | 43,274,359 | 43,280,173 |
Treasury stock | 212,000 | 212,083 |
Financing Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Premium Receivable, Allowance for Credit Loss | 27 | 32 |
Reinsurance Recoverable, Allowance for Credit Loss | 150 | 333 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 239,473 | 237,735 |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | $ 2,917 | $ 3,072 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUE: | ||
Change in gross unearned premiums | $ 145,540 | $ 39,731 |
Investment Income, Net | 2,589 | 1,404 |
EXPENSES: | ||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (260,878) | 33,257 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (85) |
Net income (loss) | 260,878 | (33,172) |
OTHER COMPREHENSIVE INCOME: | ||
Change in net unrealized gains (losses) on investments | 4,231 | (27,689) |
Reclassification adjustment for net realized investment (gains) losses | 83 | 1,769 |
Income tax benefit (expense) related to items of other comprehensive income | 0 | 6,236 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 265,192 | (52,941) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | (643) |
Total comprehensive income | $ 265,192 | $ (52,298) |
Weighted-average shares outstanding | ||
Weighted-average shares outstanding | 43,124,825 | 42,980,691 |
Weighted-average diluted shares | 43,574,840 | 42,980,691 |
Earnings Per Share | ||
Basic earnings per share | $ 6.05 | $ (0.77) |
Diluted earnings per share | $ 5.99 | $ (0.77) |
Unearned premiums | $ (145,540) | $ (39,731) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 260,878 | $ (33,257) |
Basic earnings per share | $ 6.05 | $ (0.77) |
Diluted earnings per share | $ 5.99 | $ (0.77) |
Investment Income, Net | $ 2,589 | $ 1,404 |
Continuing Operations | ||
REVENUE: | ||
Gross premiums written | 187,123 | 142,414 |
Change in gross unearned premiums | (42,647) | (19,681) |
Gross premiums earned | 144,476 | 122,733 |
Ceded premiums earned | (57,152) | (64,987) |
Net premiums earned | 87,324 | 57,746 |
Investment Income, Net | 2,589 | 1,404 |
Gain (Loss) on Investments | (83) | 37 |
Increase (Decrease) in Equity Securities, FV-NI | 474 | (770) |
Other revenue | 4,075 | 8,738 |
Total revenue | (104,047) | (117,361) |
EXPENSES: | ||
Losses and loss adjustment expenses | 19,073 | 32,518 |
Policy acquisition costs | 26,927 | 52,152 |
Operating Costs and Expenses | 5,651 | 10,603 |
General and administrative expenses | 9,837 | 15,435 |
Interest expense | (2,719) | (2,359) |
Total expenses | 64,207 | 113,067 |
Income (loss) before other income | 39,840 | 4,294 |
Other income | 588 | 1,333 |
Provision for income taxes | 9,855 | 980 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (30,573) | (4,647) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (85) |
Net income (loss) | $ 30,573 | $ 4,732 |
Earnings Per Share | ||
Basic earnings per share | $ 0.71 | $ 0.11 |
Diluted earnings per share | $ 0.70 | $ 0.11 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 40,428 | $ 5,627 |
Unearned premiums | 42,647 | 19,681 |
Revenues | 104,047 | 117,361 |
Interest expense | 2,719 | 2,359 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 30,573 | $ 4,647 |
Basic earnings per share | $ 0.71 | $ 0.11 |
Diluted earnings per share | $ 0.70 | $ 0.11 |
Insurance Agency Management Fee | $ 9,668 | $ 50,206 |
Gross premiums written | 187,123 | 142,414 |
Gross premiums earned | 144,476 | 122,733 |
Ceded Premiums Earned | 57,152 | 64,987 |
Premiums Earned, Net, Property and Casualty | 87,324 | 57,746 |
Investment Income, Net | 2,589 | 1,404 |
Gain (Loss) on Investments | (83) | 37 |
Increase (Decrease) in Equity Securities, FV-NI | 474 | (770) |
Other revenue | 4,075 | 8,738 |
Losses and loss adjustment expenses | 19,073 | 32,518 |
Policy acquisition costs | 26,927 | 52,152 |
Operating Costs and Expenses | 5,651 | 10,603 |
General and administrative expenses | 9,837 | 15,435 |
Costs and Expenses | 64,207 | 113,067 |
Operating Income (Loss) | 39,840 | 4,294 |
Other income | 588 | 1,333 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 40,428 | 5,627 |
Provision for income taxes | 9,855 | 980 |
Discontinued Operations | ||
REVENUE: | ||
Gross premiums written | (120,608) | 146,828 |
Change in gross unearned premiums | 198,154 | 59,726 |
Gross premiums earned | 77,546 | 206,554 |
Ceded premiums earned | (48,203) | (163,443) |
Net premiums earned | 29,343 | 43,111 |
Investment Income, Net | 2,182 | 1,075 |
Gain (Loss) on Investments | 1,343 | (1,806) |
Increase (Decrease) in Equity Securities, FV-NI | 2,080 | (1,498) |
Other revenue | 71 | 170 |
Total revenue | (35,019) | (41,052) |
EXPENSES: | ||
Losses and loss adjustment expenses | 33,978 | 64,691 |
Policy acquisition costs | 8,361 | 24,070 |
Operating Costs and Expenses | 513 | 1,645 |
General and administrative expenses | 240 | 570 |
Interest expense | (22) | (20) |
Total expenses | 43,114 | 90,996 |
Income (loss) before other income | (8,095) | (49,944) |
Other income | 0 | 9 |
Provision for income taxes | (9,217) | (12,031) |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ (230,305) | $ 37,904 |
Earnings Per Share | ||
Basic earnings per share | $ 5.34 | $ (0.88) |
Diluted earnings per share | $ 5.29 | $ (0.88) |
Unearned premiums | $ (198,154) | $ (59,726) |
Revenues | 35,019 | 41,052 |
Interest expense | 22 | 20 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 230,305 | $ (37,904) |
Basic earnings per share | $ 5.34 | $ (0.88) |
Diluted earnings per share | $ 5.29 | $ (0.88) |
Gross premiums written | $ (120,608) | $ 146,828 |
Gross premiums earned | 77,546 | 206,554 |
Ceded Premiums Earned | 48,203 | 163,443 |
Premiums Earned, Net, Property and Casualty | 29,343 | 43,111 |
Investment Income, Net | 2,182 | 1,075 |
Gain (Loss) on Investments | 1,343 | (1,806) |
Increase (Decrease) in Equity Securities, FV-NI | 2,080 | (1,498) |
Other revenue | 71 | 170 |
Losses and loss adjustment expenses | 33,978 | 64,691 |
Policy acquisition costs | 8,361 | 24,070 |
Operating Costs and Expenses | 513 | 1,645 |
General and administrative expenses | 240 | 570 |
Costs and Expenses | 43,114 | 90,996 |
Operating Income (Loss) | (8,095) | (49,944) |
Other income | 0 | 9 |
Provision for income taxes | $ (9,217) | $ (12,031) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Comprehensive Income | Retained Earnings | Parent | Noncontrolling Interest | Treasury Stock, Common |
Common Stock, Shares, Outstanding | 43,370,442 | |||||||
Stockholders' Equity Attributable to Parent | $ 4 | $ 394,268 | $ (6,531) | $ (74,904) | $ 312,406 | $ (431) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 19,551 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 331,957 | |||||||
Net Income (Loss), Parent | (33,172) | (33,172) | (33,172) | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (85) | (85) | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (33,257) | |||||||
Other Comprehensive Income (Loss), Parent | (19,126) | (19,126) | ||||||
Other Comprehensive Income (Loss), NCI | (558) | |||||||
Other Comprehensive Income (Loss), Total | (19,684) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | (112,847) | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 452 | 452 | 452 | |||||
Dividends, Common Stock, Cash | (2,589) | (2,589) | (2,589) | |||||
Common Stock, Shares, Outstanding | 43,257,595 | |||||||
Stockholders' Equity Attributable to Parent | $ 4 | 394,720 | (25,657) | (110,665) | 257,971 | (431) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 18,908 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 276,879 | |||||||
Common Stock, Shares, Outstanding | 43,280,173 | 43,280,173 | ||||||
Stockholders' Equity Attributable to Parent | $ 4 | 395,631 | (30,947) | (546,296) | (182,039) | (431) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (182,039) | |||||||
Net Income (Loss), Parent | 260,878 | 260,878 | 260,878 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 260,878 | |||||||
Other Comprehensive Income (Loss), Parent | 4,314 | 4,314 | ||||||
Other Comprehensive Income (Loss), Total | 4,314 | |||||||
Impact of Deconsolidation of Discontinued Operations | (1,004) | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | (5,814) | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 335 | 335 | 335 | |||||
Dividends, Common Stock, Cash | 0 | |||||||
Impact of Deconsolidation on OCI - Discontinued Operations. | $ 1,004 | |||||||
Common Stock, Shares, Outstanding | 43,274,359 | 43,274,359 | ||||||
Stockholders' Equity Attributable to Parent | $ 4 | $ 395,966 | $ (25,629) | $ (286,422) | $ 83,488 | $ (431) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 83,488 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 260,878 | $ (33,257) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,155 | 2,606 |
Bond amortization and accretion | 160 | 1,634 |
Net realized gains (losses) | (1,260) | 1,769 |
Unrealized Gain (Loss) on Investments | (2,554) | 2,268 |
Provision for uncollectable premiums/over and short | 5 | 12 |
Reinsurance Recoverable Change in Credit Loss Allowance | (183) | (168) |
Deferred income taxes, net | 15,767 | (11,351) |
Stock based compensation | 335 | 452 |
Proceeds from contractual commitment | 0 | 3,800 |
Gain on sale of building | (422) | (1,528) |
Gain (Loss) on Disposition of Assets | 524 | 343 |
Changes in operating assets and liabilities: | ||
Accrued investment income | 369 | 437 |
Premiums receivable | 15,178 | 2,265 |
Reinsurance recoverable on paid and unpaid losses | 289,946 | 85,140 |
Ceded unearned premiums | 72,064 | 146,667 |
Deferred policy acquisition costs, net | (875) | (7,193) |
Other assets | (31,630) | (4,618) |
Receivable from sale of building | 0 | 3,236 |
Unpaid losses and loss adjustment expenses | (278,142) | (117,236) |
Unearned premiums | (145,540) | (39,731) |
Reinsurance payable | (13,376) | (51,714) |
Payments outstanding | (68,493) | (10,246) |
Accounts Payable | 16,440 | (2,924) |
Change in Operating Lease Liability | (277) | (183) |
Other liabilities | (6,416) | 8,291 |
Net cash provided by operating activities | (104,164) | (20,893) |
INVESTING ACTIVITIES | ||
Proceeds from sales and maturities of fixed maturities | 178,211 | 85,978 |
Proceeds from Sale of Equity Securities, FV-NI | 24,163 | 88 |
Proceeds from Sale and Maturity of Other Investments | 227 | 1,063 |
Payments to Acquire Fixed Maturities, Available-for-sale | (7,439) | (13,415) |
Payments to Acquire Equity Securities, FV-NI | (80) | (3,121) |
Payments to Acquire Other Investments | 0 | (459) |
Proceeds from Sale of Property, Plant, and Equipment | 464 | 730 |
Cost of property, equipment and capitalized software acquired | (154) | (1,406) |
Net cash provided by (used in) investing activities | (37,190) | 69,458 |
FINANCING ACTIVITIES | ||
Repayments of borrowings | 0 | (381) |
Payments of Dividends | 0 | (2,589) |
Net Cash Provided by (Used in) Financing Activities | 0 | (2,970) |
Cash, Cash Equivalents, Restricted Cash at beginning of period | 116,891 | |
Cash, Cash Equivalents, Restricted Cash at end of period | 142,257 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (141,354) | 45,595 |
Supplemental Cash Flows Information | ||
Interest Paid | 0 | 35 |
Income taxes paid | 5,325 | 77 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (229,183) | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 142,257 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | (232,582) | 0 |
Continuing Operations | ||
OPERATING ACTIVITIES | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 30,573 | 4,647 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized Gain (Loss) on Investments | (474) | 770 |
Changes in operating assets and liabilities: | ||
Unearned premiums | 42,647 | 19,681 |
FINANCING ACTIVITIES | ||
Cash, Cash Equivalents, Restricted Cash at beginning of period | 283,611 | 245,278 |
Cash, Cash Equivalents, Restricted Cash at end of period | 142,257 | 290,873 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 142,257 | 290,873 |
Discontinued Operations | ||
OPERATING ACTIVITIES | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 230,305 | (37,904) |
Changes in operating assets and liabilities: | ||
Unearned premiums | $ (198,154) | $ (59,726) |
Organization, Consolidation and
Organization, Consolidation and Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | ORGANIZATION, CONSOLIDATION AND PRESENTATION (a) Business United Insurance Holdings Corp. (referred to in this document as we, our, us, the Company or UIHC) is a property and casualty insurance holding company that sources, writes and services residential commercial and personal property and casualty insurance policies using a network of agents and two wholly-owned insurance subsidiaries. Our two insurance subsidiaries are Interboro Insurance Company (IIC), acquired via merger on April 29, 2016; and American Coastal Insurance Company (ACIC), acquired via merger on April 3, 2017. Our other subsidiaries include United Insurance Management, L.C. (UIM), a managing general agent; Skyway Claims Services, LLC, which provides claims adjusting services to ACIC; AmCo Holding Company, LLC (AmCo) which is a holding company subsidiary that consolidates its respective insurance company; 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 Technologies, LLC, a managing general agent that provides technological and distribution services to our insurance companies. Our primary products are commercial and homeowners' residential property insurance. We currently offer commercial residential insurance in Florida. During 2022, we also wrote commercial residential insurance in South Carolina and Texas, however, effective May 1, 2022, we no longer write in these states. In addition, we write personal residential insurance in New York. During 2022, we wrote personal residential business in six other states; however on February 27, 2023, our former insurance subsidiary, United Property & Casualty Insurance Company (UPC) was placed into receivership with the Florida Department of Financial Services (DFS), which divested our ownership of UPC. The events leading to receivership and results of this subsidiary, now included within discontinued operations, are discussed in Note 3 below. On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entail non-renewing personal lines policies in these states. Additionally, we announced that Demotech, Inc. (Demotech), an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the Florida Office of Insurance Regulation ("FLOIR") issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. Additionally, in connection with the Plan, IIC agreed to not pay ordinary dividends without the prior approval of the New York Department of Financial Services until January 1, 2025. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely and on February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services (the "DFS") which divested our ownership of UPC. Effective June 1, 2022, we merged our majority-owned insurance subsidiary, Journey Insurance Company (JIC) into ACIC, with ACIC being the surviving entity. JIC was formed in strategic partnership with a subsidiary of Tokio Marine Kiln Group Limited (Kiln) on August 30, 2018 and operated independently from ACIC prior to the merging of the entities. The Kiln subsidiary held a noncontrolling interest in JIC, which was terminated prior to the merger. Effective June 1, 2022, we entered into a quota share reinsurance agreement with TypTap Insurance Company (Typtap). Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Georgia, North Carolina and South Carolina. Effective June 1, 2022, we began the transition of South Carolina policies to Homeowners Choice Property and Casualty Insurance Company, Inc. (HCPCI) in connection with our renewal rights agreement. Effective October 1, 2022, we transitioned Georgia policies to HCPCI in connection with our renewal rights agreement. Effective December 1, 2022, we began the transition of North Carolina policies to HCPCI in connection with our renewal rights agreement. As a result, these policies will no longer be covered under this agreement upon their renewal. This agreement replaces the 85% quota share agreement with HCPCI effective December 31, 2021. Effective May 31, 2022, we merged Family Security Insurance Company, Inc. (FSIC) into our former subsidiary UPC, with UPC being the surviving entity. FSIC was acquired via merger on February 3, 2015, and operated independently from UPC prior to the merging of the entities. In conjunction with the merger, we dissolved Family Security Holdings (FSH), a holding company subsidiary that consolidated its respective insurance company, FSIC. Effective June 1, 2021, we entered into a quota share reinsurance agreement with HCPCI and TypTap. Under the terms of this agreement, we ceded 100% of our former subsidiary UPC's in-force, new, and renewal policies in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island. The cession of these policies was 50% to HCPCI and 50% to TypTap. HCPCI is responsible for processing all claims as a part of this agreement. As of April 1, 2022, we completed the transition of all policies in these four states to HCPCI in connection with our renewal rights agreement (Northeast Renewal Agreement) to sell UPC's personal lines homeowners business in these states. We conduct our operations under two reportable segments, personal residential property and casualty insurance policies (personal lines) and commercial residential property and casualty insurance policies (commercial lines). Our chief operating decision maker is our President, who makes decisions to allocate resources and assesses performance at both segment levels, as well as at the corporate level. (b) Consolidation and Presentation We prepare our unaudited condensed consolidated interim financial statements in conformity with U.S. generally accepted accounting principles (GAAP). We have condensed or omitted certain information and footnote disclosures normally included in the annual consolidated financial statements presented in accordance with GAAP. In management's opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of interim periods. We include all of our subsidiaries in our consolidated financial statements, eliminating intercompany balances and transactions during consolidation. As described in Note 2 , our former subsidiary, UPC, qualifies as a discontinued operation. Our unaudited condensed consolidated interim financial statements and footnotes should be read in conjunction with our consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2022. While preparing our unaudited condensed 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 unaudited condensed 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 Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Comprehensive Loss, we generally use the term loss(es) to collectively refer to both loss and loss adjustment expenses. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate our results for the remainder of the year or for any other future period. (c) Going Concern Our unaudited condensed consolidated interim financial statements have been prepared in accordance with GAAP assuming the Company will continue as a going concern. As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, our subsidiary ACIC is a part of a combined reinsurance program with our former subsidiary, UPC. To properly allocate the reinsurance recoverables under the shared catastrophe treaties, UPC and ACIC entered into a reinsurance allocation agreement that became effective on June 1, 2022 (the "Allocation Agreement"). The Allocation Agreement was filed with and approved by the FLOIR on December 5, 2022. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurrican Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC. As of the date of filing our Annual Report, the DFS had not recognized the Allocation Agreement, leaving uncertainty regarding the timing of both recoveries currently held by UPC that are allocated to ACIC and future recoverables. Management also believed that the ability for ACIC to obtain adequate reinsurance to meet its needs for the June 1, 2023 to May 31, 2024 catastrophe cover could only be accomplished assuming that recoveries due to ACIC pursuant to the Allocation Agreement could be resolved in short order. However, on April 19, 2023, ACIC entered into a Memorandum of Understanding with the DFS. Under the terms of the Memorandum, ACIC and the DFS as receiver of UPC have reached the following agreement: 1. The DFS adopts, ratifies and affirms the Allocation Agreement. 2. All future reinsurance recoverable under reinsurance agreements applicable to the Allocation Agreement for Hurricane Ian losses shall be paid, either directly from the reinsurers or directly from the reinsurance intermediary responsible therefor, to ACIC. If a true up adjustment demonstrates that any future reinsurance recoveries were over-collected by ACIC, ACIC will remit any over-payment to UPC. While the execution of the MOU does alleviate the uncertainty regarding future recoverables, uncertainty does still exist regarding recoveries currently held by UPC. The Company intends to continue to work towards a fair and equitable solution regarding these held recoveries (See Note 18). In addition, the Company has not finalized its catastrophe cover for June 1, 2023 to May 31, 2024. While continued progress is being made, uncertainty does still exist regarding placement of this cover. As a result, the Company has concluded substantial doubt continues to exist regarding its ability to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Changes to Significant Accounting Policies During the three months ended March 31, 2023, our former subsidiary, UPC, was placed into receivership with the DFS. As described in Note 1 , effective February 27, 2023, this receivership divested our ownership of UPC. This disposal was evaluated for qualification as a discontinued operation. The results of operations of business are reported as discontinued operations when the disposal represents a strategic shift that will have a major effect on the entity's operations and financial results. When a business is identified for discontinued operations reporting: • Results for prior periods are retroactively reclassified as discontinued operations; • Results of operations are reported in a single line, net of tax, in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss); and • Assets and liabilities are reported as held for disposal in the Unaudited Condensed Consolidated Balance Sheets Additional details by major classification of operating results and financial position are included in Note 3 . There have been no other changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022. (b) Pending Accounting Pronouncements |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Income Statement Disclosure | 3) DISCONTINUED OPERATIONS On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entailed non-renewing personal lines policies in these states. Additionally, we announced that Demotech, an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the FLOIR issued Consent Order No. 303643-22- CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurricane Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC. In the first quarter of 2023, the assets and liabilities of UPC were divested of. The assets and liabilities for the balance sheet as of December 31, 2022 are reclassified as held for disposal retrospectively, and the results of UPC are presented as discontinued operations for all periods presented. The results from discontinued operations for the three months ended March 31, 2023 and 2022 are presented below. Results From Discontinued Operations Three Months Ended March 31, 2023 2022 REVENUE: Gross premiums written $ (120,608) $ 146,828 Change in gross unearned premiums 198,154 59,726 Gross premiums earned 77,546 206,554 Ceded premiums earned (48,203) (163,443) Net premiums earned 29,343 43,111 Net investment income 2,182 1,075 Net realized investment gains (losses) 1,343 (1,806) Net unrealized gains (losses) on equity securities 2,080 (1,498) Other revenue 71 170 Total revenue 35,019 41,052 EXPENSES: Losses and loss adjustment expenses 33,978 64,691 Policy acquisition costs 8,361 24,070 Operating expenses 513 1,645 General and administrative expenses 240 570 Interest expense 22 20 Total expenses 43,114 90,996 Loss before other income (8,095) (49,944) Other income (loss) — 9 Loss before income taxes (8,095) (49,935) Provision (benefit) for income taxes (9,217) (12,031) Income (loss) from discontinued operations, net of tax $ 1,122 $ (37,904) As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $229,183,000 for the period. This gain was driven by the negative equity position of UPC. The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below. Major Classes of Assets and Liabilities Disposed Closing (1) December 31, 2022 ASSETS Fixed maturities, available-for-sale 1,380 171,781 Equity securities 272 23,363 Other investments 12,882 12,952 Cash and cash equivalents 224,824 158,990 Restricted cash 7,758 7,730 Accrued investment income 875 1,457 Premiums receivable, net 22,733 46,736 Reinsurance recoverable on paid and unpaid losses, net 548,929 834,863 Ceded unearned premiums 75,262 122,533 Deferred policy acquisition costs, net (89) (2,046) Other assets 53,675 33,548 Total assets $ 948,501 $ 1,411,907 LIABILITIES Unpaid losses and loss adjustment expenses 920,431 1,103,980 Unearned premiums 98,655 286,842 Reinsurance payable on premiums 12,612 29,394 Payments outstanding 144,238 213,058 Accounts payable and accrued expenses 1,361 (872) Other liabilities (3,731) 5,692 Notes payable, net 4,118 4,118 Total Liabilities $ 1,177,684 $ 1,642,212 (1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity. The discontinued operations of the Company does not have any depreciation, amortization, capital expenditures or other noncash items for the periods in which the results of discontinued operations are presented. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | ) SEGMENT REPORTING Personal Lines Business Our personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through our subsidiary IIC. Personal residential products are offered in New York. We include coverage to policyholders for loss or damage to dwellings, detached structures or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We have developed a unique and proprietary homeowners’ product. This product uses a granular approach to pricing for catastrophe perils. We have focused on using independent agencies as a channel of distribution for our personal lines business. All of our personal lines business is managed internally. Commercial Lines Business Our commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through our subsidiary ACIC. We include coverage to policyholders for loss or damage to buildings, inventory or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. We also wrote commercial residential coverage through our subsidiary JIC, in South Carolina and Texas. Effective June 1, 2022 JIC was merged into ACIC, with ACIC being the surviving entity. As a result, the commercial residential policies originally written by JIC were not renewed effective May 31, 2022. All of our commercial lines business is administered by an outside managing general underwriter, AmRisc, LLC (AmRisc). This includes handling the underwriting, claims processing and premium collection related to our commercial business. In return, AmRisc is reimbursed through monthly management fees. International Catastrophe Insurance Managers (ICAT) handled the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and was also reimbursed through monthly management fees. Effective May 31, 2022, the Company terminated its agreement with ICAT. Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2023 and 2022: • Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022; • Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the three months ended March 31, 2023 and 2022. The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented. Three Months Ended March 31, 2023 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 176,641 $ 10,482 $ — $ 187,123 Change in gross unearned premiums (44,607) 1,960 — (42,647) Gross premiums earned 132,034 12,442 — 144,476 Ceded premiums earned (53,374) (3,778) — (57,152) Net premiums earned 78,660 8,664 — 87,324 Net investment income 1,786 782 21 2,589 Net realized gains (losses) (83) — — (83) Net unrealized losses on equity securities 473 — 1 474 Management fee income — 9,668 — 9,668 Other revenue — 4,075 — 4,075 Total revenues 80,836 23,189 22 104,047 EXPENSES: Losses and loss adjustment expenses 13,901 5,172 — 19,073 Policy acquisition costs 25,166 1,761 — 26,927 Operating expenses 96 5,431 124 5,651 General and administrative expenses (2) 2,754 6,951 132 9,837 Interest expense — — 2,719 2,719 Total expenses 41,917 19,315 2,975 64,207 Income (loss) before other income 38,919 3,874 (2,953) 39,840 Other income (loss) — 803 (215) 588 Income (loss) before income taxes $ 38,919 $ 4,677 (3,168) 40,428 Provision for income taxes 9,855 9,855 Net income (loss) $ (13,023) $ 30,573 Less: Net loss attributable to noncontrolling interests — — Net income (loss) attributable to UIHC $ (13,023) $ 30,573 Loss ratio, net (3) (4) 17.7 % 59.7 % 21.9 % Expense ratio (3) (5) 35.6 % 163.2 % 48.6 % Combined ratio (3) (6) 53.3 % 222.9 % 70.5 % Total segment assets $ 1,304,499 $ 130,045 $ 10,842 $ 1,445,386 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $1,260,000 and $812,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Three Months Ended March 31, 2022 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 127,964 $ 14,450 $ — $ 142,414 Change in gross unearned premiums (20,499) 818 — (19,681) Gross premiums earned 107,465 15,268 — 122,733 Ceded premiums earned (62,022) (2,965) — (64,987) Net premiums earned 45,443 12,303 — 57,746 Net investment income 1,127 268 9 1,404 Net realized gains 2 35 — 37 Net unrealized losses on equity securities (769) — (1) (770) Management fee income — 50,206 — 50,206 Other revenue — 8,738 — 8,738 Total revenues 45,803 71,550 8 117,361 EXPENSES: Losses and loss adjustment expenses 14,114 18,404 — 32,518 Policy acquisition costs 16,678 35,474 — 52,152 Operating expenses 1,109 9,403 91 10,603 General and administrative expenses (2) 2,320 12,734 381 15,435 Interest expense — — 2,359 2,359 Total expenses 34,221 76,015 2,831 113,067 Income (loss) before other income 11,582 (4,465) (2,823) 4,294 Other income — (277) 1,610 1,333 Income (loss) before income taxes $ 11,582 $ (4,742) (1,213) 5,627 Provision for income taxes 980 980 Net income (loss) $ (2,193) $ 4,647 Less: Net income attributable to noncontrolling interests (85) (85) Net income (loss) attributable to UIHC $ (2,108) $ 4,732 Loss ratio, net (3) (4) (7) 31.1 % 149.6 % 56.3 % Expense ratio (3) (5) (7) 44.2 % 468.3 % 135.4 % Combined ratio (3) (6) (7) 75.3 % 617.9 % 191.7 % Total segment assets $ 949,359 $ 179,208 $ 17,507 $ 1,146,074 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $1,512,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses . (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2023 and December 31, 2022: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2023 U.S. government and agency securities $ 3,491 $ — $ 82 $ 3,409 Foreign government 1,000 — 9 991 States, municipalities and political subdivisions 31,924 15 3,357 28,582 Public utilities 8,913 — 1,093 7,820 Corporate securities 99,324 58 13,659 85,723 Mortgage-backed securities 64,285 — 8,283 56,002 Asset-backed securities 30,536 36 2,366 28,206 Total fixed maturities $ 239,473 $ 109 $ 28,849 $ 210,733 December 31, 2022 U.S. government and agency securities $ 2,490 $ — $ 105 $ 2,385 Foreign government 1,000 — 9 991 States, municipalities and political subdivisions 30,958 2 4,065 26,895 Public utilities 8,936 — 1,242 7,694 Corporate securities 99,062 20 15,739 83,343 Mortgage-backed securities 65,251 — 9,136 56,115 Asset-backed securities 30,038 9 2,788 27,259 Total fixed maturities $ 237,735 $ 31 $ 33,084 $ 204,682 Equity securities are summarized as follows: March 31, 2023 December 31, 2022 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 16,181 100.0 % $ 15,657 100.0 % 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 three months ended March 31, 2023 and 2022, respectively: 2023 2022 Gains Fair Value at Sale Gains Fair Value at Sale Three Months Ended March 31, Fixed maturities $ 4 $ 5,292 $ 41 $ 12,192 Equity securities — — — — Short-term investments — 126 — — Total realized gains 4 5,418 41 12,192 Fixed maturities (87) (41) (4) 251 Equity securities — — — — Short-term investments — — — — Total realized losses (87) (41) (4) 251 Net realized investment gains (losses) $ (83) $ 5,377 $ 37 $ 12,443 The table below summarizes our fixed maturities at March 31, 2023 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. March 31, 2023 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 7,097 3.0 % $ 7,016 3.3 % Due after one year through five years 50,754 21.2 46,402 22.0 Due after five years through ten years 82,508 34.5 69,386 32.9 Due after ten years 4,293 1.8 3,721 1.8 Asset and mortgage-backed securities 94,821 39.5 84,208 40.0 Total $ 239,473 100.0 % $ 210,733 100.0 % The following table summarizes our net investment income by major investment category: Three Months Ended March 31, 2023 2022 Fixed maturities $ 1,272 $ 1,431 Equity securities 81 66 Cash and cash equivalents 1,304 22 Other investments 6 55 Other assets — — Investment income 2,663 1,574 Investment expenses (74) (170) Net investment income $ 2,589 $ 1,404 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 loss. During the three months ended March 31, 2023, 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 March 31, 2023. 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 March 31, 2023 U.S. government and agency securities 1 $ 9 $ 990 2 $ 73 $ 1,421 Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 8 49 3,732 45 3,308 23,324 Public utilities — — — 12 1,093 7,819 Corporate securities 35 547 10,964 115 13,112 71,582 Mortgage-backed securities 12 248 3,749 116 8,035 52,254 Asset-backed securities 7 36 3,013 54 2,330 22,632 Total fixed maturities 64 $ 898 $ 23,439 344 $ 27,951 $ 179,032 December 31, 2022 U.S. government and agency securities 3 $ 105 $ 2,385 — $ — $ — Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 21 540 7,306 31 3,525 18,853 Public utilities 8 193 2,286 4 1,049 5,408 Corporate securities 78 2,279 24,594 77 13,460 57,765 Mortgage-backed securities 48 1,282 15,259 80 7,854 40,856 Asset-backed securities 16 795 6,397 46 1,993 19,028 Total fixed maturities 175 $ 5,203 $ 59,218 238 $ 27,881 $ 141,910 (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 Unaudited Condensed 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 March 31, 2023 and December 31, 2022. Changes in interest rates subsequent to March 31, 2023 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 loss on our Unaudited Condensed Consolidated Balance Sheet as of March 31, 2023. The following table presents the fair value of our financial instruments measured on a recurring basis by level at March 31, 2023 and December 31, 2022: Total Level 1 Level 2 Level 3 March 31, 2023 U.S. government and agency securities $ 3,409 $ — $ 3,409 $ — Foreign government 991 — 991 — States, municipalities and political subdivisions 28,582 — 28,582 — Public utilities 7,820 — 7,820 — Corporate securities 85,723 — 85,723 — Mortgage-backed securities 56,002 — 56,002 — Asset-backed securities 28,206 — 28,206 — Total fixed maturities 210,733 — 210,733 — Mutual funds 16,181 16,181 — — Total investments $ 226,914 $ 16,181 $ 210,733 $ — December 31, 2022 U.S. government and agency securities $ 2,385 $ — $ 2,385 $ — Foreign government 991 — 991 — States, municipalities and political subdivisions 26,895 — 26,895 — Public utilities 7,694 — 7,694 — Corporate securities 83,343 — 83,343 — Mortgage-backed securities 56,115 — 56,115 — Asset-backed securities 27,259 — 27,259 — Total fixed maturities 204,682 — 204,682 — Mutual Funds 15,657 15,657 — — Total equity securities 15,657 15,657 — — Other investments (1) 125 — 125 — Total investments $ 220,464 $ 15,657 $ 204,807 $ — (1) Other investments included in the fair value hierarchy exclude these 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 March 31, 2023 and December 31, 2022. The carrying amounts for the following financial instrument categories approximate their fair values at March 31, 2023 and December 31, 2022, 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 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 the quarter ended March 31, 2023, 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 Unaudited Condensed Consolidated Balance Sheets, and these investments are currently being measured at estimated fair value utilizing a net asset value per share (or its equivalent) practical expedient. The information presented in the table below is as of March 31, 2023: Book Value Unrealized Gain Unrealized Loss Fair Value March 31, 2023 Limited partnership investments (1) $ 2,917 $ 633 $ — $ 3,550 (1) Distributions will be generated from investment gains, from operating income, from underlying investments of 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 five years. 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: March 31, 2023 December 31, 2022 Trust funds $ 49,046 $ 45,364 Cash on deposit (regulatory deposits) 625 624 Total restricted cash $ 49,671 $ 45,988 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 Unaudited Condensed 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. March 31, 2023 December 31, 2022 Invested assets on deposit (regulatory deposits) $ 2,491 $ 2,616 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE (EPS) 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 three month periods ended March 31, 2023 and 2022, respectively: Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to UIHC common stockholders $ 260,878 $ (33,172) Denominator: Weighted-average shares outstanding 43,124,825 42,980,691 Effect of dilutive securities 450,015 — Weighted-average diluted shares 43,574,840 42,980,691 Earnings available to UIHC common stockholders per share Basic $ 6.05 $ (0.77) Diluted $ 5.99 $ (0.77) See Note 17 of these Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the stock grants related to dilutive securities. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: March 31, December 31, Computer hardware and software (software in progress of $76 and $82, respectively) $ 29,746 $ 29,760 Office furniture and equipment 798 1,414 Leasehold improvements 316 753 Leased vehicles (1) 11 1,080 Total, at cost 30,871 33,007 Less: accumulated depreciation and amortization (12,753) (13,416) Property and equipment, net $ 18,118 $ 19,591 (1) Includes vehicles under financing leases. See Note 12 of these Notes to Unaudited Condensed Consolidated Financial Statements for further information on leases. Depreciation and amortization expense under property and equipment was $1,260,000 and $1,710,000 for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, we sold or disposed of leased vehicles totaling $1,069,000. The depreciation on these vehicles totaled $1,037,000 at the time of disposal. We realized a net gain on this disposal of $422,000. In addition, we disposed of office furniture totaling $616,000 during the period. Accumulated depreciation at the time of this disposal totaled $603,000, respectively. During the year ended December 31, 2022 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | ) GOODWILL AND INTANGIBLE ASSETS Goodwill The carrying amount of goodwill at March 31, 2023 and December 31, 2022 was $59,476,000. No impairment in the value of goodwill was recognized during the three month period ended March 31, 2023. As a result of the strategic decision to place our former subsidiary UPC into an orderly runoff, we recognized an impairment of our personal lines reporting unit's goodwill totaling $13,569,000 during the third quarter of 2022. The goodwill attributable to our commercial lines reporting unit was most recently tested for impairment during the fourth quarter of 2022. It was determined that there was no additional impairment in the value of the asset as of December 31, 2022. Goodwill allocated to our commercial lines reporting unit was $59,476,000 at March 31, 2023 and December 31, 2022. There was no goodwill allocated to our personal lines reporting unit at March 31, 2023 and December 31, 2022. There was no goodwill acquired or disposed of during the three month periods ended March 31, 2023 and 2022 . Accumulated impairment related to goodwill was $13,569,000 at March 31, 2023 and December 31, 2022. Intangible Assets The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets: March 31, 2023 December 31, 2022 Intangible assets subject to amortization $ 10,560 $ 11,372 Indefinite-lived intangible assets (1) 1,198 1,398 Total $ 11,758 $ 12,770 (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 March 31, 2023 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.0 34,661 (24,910) 9,751 Trade names acquired 1.0 6,381 (5,572) 809 Total $ 83,830 $ (73,270) $ 10,560 December 31, 2022 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.3 34,661 (24,300) 10,361 Trade names acquired 1.3 6,381 (5,370) 1,011 Total $ 83,830 $ (72,458) $ 11,372 No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2023 and 2022. However during the three months ended March 31, 2023 and year ended December 31, 2022, we disposed of intangible assets totaling $200,000 and $2,359,000, respectively. Amortization expense of our intangible assets was $812,000 and $812,000 for the three months ended March 31, 2023 and 2022, respectively. Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows: Year ending December 31, Estimated Amortization Expense Remaining in 2023 $ 2,435 2024 2,640 2025 2,438 2026 2,438 2027 609 2028 — |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2023 | |
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 and tropical storms. 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 and quota share treaties. Our catastrophe reinsurance program, in effect from June 1, 2022 through May 31, 2023, provides coverage for catastrophe losses from named or numbered windstorms and earthquakes up to an exhaustion point of approximately $2,500,000,000 in the aggregate, including coverage related to our former insurance subsidiary, UPC. Under our core catastrophe excess of loss treaty, retention on a first and second event is $16,400,000 each. During the third quarter, one of the our reinsurers participating on the $25,000,000 excess of $20,000,000 layer of the core catastrophe program exercised a contractual right to terminate their participation due to Demotech's downgrade of UPC's Financial Stability Rating. We were unsuccessful in replacing this coverage in the open market so our captive reinsurer, UPC Re, stepped into the $25,000,000 excess of $20,000,000 layer which was subsequently impacted by Hurricane Ian resulting in an additional retained loss of $20,100,000. The exhaustion point of IIC's catastrophe reinsurance program is approximately $200,000,000 in the aggregate, with a retention of $3,000,000 per occurrence, covering all perils. During the third quarter of 2022, the Company's core catastrophe reinsurance program was impacted by Hurricane Ian. As a result, the Company has approximately $508 million of occurrence limit remaining for Ian all of which is attributable to ACIC only. After reinstatement premiums of approximately $15.4 million, the Company, with its former subsidiary UPC has approximately $993 million of aggregate limit remaining after Ian, based on our estimated ultimate net loss subject to the core catastrophe reinsurance program. Effective January 1, 2023, we renewed our all other perils catastrophe excess of loss agreement. The agreement provides protection from catastrophe loss events other than named windstorms and earthquakes up to $101,000,000. During the third quarter of 2022, one of our private reinsurers who held a 100% share of the $15,000,000 in excess of $15,000,000 layer on our all other perils catastrophe excess of loss agreement notified us of their intent to terminate the agreement due to the contractual provision regarding the change in our former subsidiary UPC's statutory surplus being greater than 25%. We agreed to a termination and commutation date of September 30, 2022 for this contract. This change resulted in approximately $1,300,000 of ceded premium savings that would have otherwise been due in the fourth quarter of 2022 and the Company retaining all the risk for any non-hurricane catastrophe losses up to $30,000,000, excluding any quota share recoveries. The table below outlines our quota share agreements in effect for the three months ended March 31, 2023 and 2022. The impacts of these quota share agreements on our former subsidiay, UPC's financial statements are included in discontinued operations. Reinsurer Companies in Scope (1) Effective Dates Cession Rate States in Scope External third-party UPC, FSIC & ACIC 06/01/2022 - 06/01/2023 10% (2) Florida, Louisiana, Texas TypTap UPC 06/01/2022 - 06/01/2023 100% (3) Georgia, North Carolina, South Carolina External third-party UPC, FSIC & ACIC 12/31/2021 - 12/31/2022 8% (2) Florida, Louisiana, Texas HCPCI UPC 12/31/2021 - 06/01/2022 85% Georgia, North Carolina, South Carolina External third-party UPC & FSIC 12/31/2021 - 12/31/2022 25% (4) Florida, Louisiana, Texas HCPCI / TypTap (5) UPC 06/01/2021 - 06/01/2022 100% (3) Connecticut, New Jersey, Massachusetts, Rhode Island External third-party UPC, FSIC & ACIC (6) 06/01/2021 - 06/01/2022 15% (2) Florida, Georgia, Louisiana, North Carolina, South Carolina, Texas IIC UPC 12/31/2020 - 12/31/2022 100% New York (1) Effective May 31, 2022, FSIC was merged into UPC, with UPC being the surviving entity. (2) This treaty provides coverage for all catastrophe perils and attritional losses incurred. For all catastrophe perils, the quota share agreement provides ground- up protection effectively reducing our retention for catastrophe losses. (3) This treaty provides coverage on our in-force, new and renewal policies until these states are transitioned to HCPCI or TypTap upon renewal. (4) This treaty provides coverage on non-catastrophe losses on policies in-force on the effective date of the agreement. (5) Cessions are split 50% to HCPCI and 50% to TypTap. (6) This treaty was amended effective December 31, 2020 to include ACIC. Reinsurance recoverable at the balance sheet dates consists of the following: March 31, December 31, 2023 2022 Reinsurance recoverable on unpaid losses and loss adjustment expenses $ 646,003 $ 732,254 Reinsurance recoverable on paid losses and loss adjustment expenses 146,347 64,292 Reinsurance recoverable (1) $ 792,350 $ 796,546 (1) Our reinsurance recoverable balance is net of our allowance for expected credit losses. More information related to this allowance can be found in Note 13 . |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Liability for unpaid losses and loss adjustment expenses | LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE) We determine the reserve for unpaid losses on an individual case basis for all incidents reported. The liability also includes amounts for incurred but not reported (IBNR) claims as of the balance sheet date. The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2023 and 2022 on a GAAP basis: March 31, 2023 2022 Balance at January 1 $ 842,958 $ 250,642 Less: reinsurance recoverable on unpaid losses 732,254 176,096 Net balance at January 1 $ 110,704 $ 74,546 Incurred related to: Current year 22,238 35,582 Prior years (3,165) (3,064) Total incurred $ 19,073 $ 32,518 Paid related to: Current year 13,303 17,236 Prior years 14,112 18,429 Total paid $ 27,415 $ 35,665 Net balance at March 31 $ 102,362 $ 71,399 Plus: reinsurance recoverable on unpaid losses 646,003 168,174 Balance at March 31 $ 748,365 $ 239,573 Composition of reserve for unpaid losses and LAE: Case reserves $ 284,679 $ 119,969 IBNR reserves 463,686 119,604 Balance at March 31 $ 748,365 $ 239,573 Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2022, 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 in the table above, we had favorable development in both 2023 and 2022 related to prior year losses. This favorable development came as a result of re-estimating ultimate losses in 2023 based on historical loss trends. The loss payments made by the Company during the three months ended March 31, 2023, were lower than the loss payments made during the three months ended March 31, 2022, due to the settling of claims related to non-tropical storm catastrophe events. Case and IBNR reserves and reinsurance recoverable on unpaid losses increased when compared to the prior period as a result of Hurricane Ian, which made landfall during the third quarter of 2022. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Long-Term Debt The table below presents all long-term debt outstanding as of March 31, 2023 and December 31, 2022: Effective Interest Rate Carrying Value at Maturity March 31, 2023 December 31, 2022 Senior Notes December 15, 2027 7.25% $ 150,000 $ 150,000 Florida State Board of Administration Note (1) July 1, 2026 N/A — — Truist Term Note Payable (2) May 26, 2031 N/A — — Total long-term debt $ 150,000 $ 150,000 (1) Our Florida State Board of Administration Note was held by our former subsidiary, UPC. (2) Our Truist Term Note Payable was repaid in full on August 12, 2022. Senior Notes Payable 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, plus accrued and unpaid interest thereon. On or after that date, we may redeem the Senior Notes at par, plus accrued and unpaid interest thereon. On December 8, 2022, the Kroll Bond Rating Agency, LLC announced a downgrade of our issuer and debt ratings from BBB- to BB+. As a result, pursuant to our agreement, the interest rate of our Senior Notes increased from 6.25% to 7.25% effective on the next interest payment date of June 15, 2023. Florida State Board of Administration Note Payable 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. This note was held by our former insurance subsidiary, UPC. On February 27, 2023, UPC was placed into receivership with the Florida Department of Financial Services, divesting our ownership of UPC. Truist Term Note Payable 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 was phased out at the end of 2021, however, the Intercontinental Exchange will continue to publish one-month LIBOR settings through 2023. The outstanding Truist Note payable balance, including applicable interest, was repaid in full on August 12, 2022. Therefore, effective August 12, 2022, Truist no longer holds our principal executive office as collateral and may not take possession of or foreclose upon the office. 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, 2022, while our leverage ratio was greater than the allowed ratio above, we did not incur any additional debt during the period and as a result, we were in compliance with the covenants in the Senior Notes. SBA Note - Our SBA Note required that UPC maintained 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 defined 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 have failed to exceed either a net writing ratio of 1.5:1 or a gross writing ratio of 4.5:1, UPC's interest rate would have increased by 450 basis points above the 10-year Constant Maturity Treasury rate, which was 3.76% at the end of March 2023. Any other writing ratio deficiencies resulted in an interest rate penalty of 25 basis points above the stated rate of the note. Our SBA Note further provided 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 March 31, 2023, we were no longer the holders of the SBA Note. 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 three months ended March 31, 2023 and 2022: 2023 2022 Balance at January 1, $ 1,645 $ 1,998 Additions — — Amortization (83) (84) Balance at March 31, $ 1,562 $ 1,914 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, the Company is involved in legal proceedings whereby on August 18, 2021, a former employee of Skyway Legal Services, LLC, filed a complaint against the Company in the United States District Court for the District of Delaware. The lawsuit alleges violations of and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. The Company, a named party to the lawsuit, denies that it employed the plaintiff and disputes the claims set forth in the lawsuit. On September 27, 2022, venue was transferred to the United States District Court for the Middle District of Florida, Tampa Division. The Company believes that an unfavorable outcome is neither probable nor estimable. Commitments to fund partnership investments We have fully funded one limited partnership investments and have committed to fund our remaining limited partnership investment. The amount of unfunded commitments was $4,242,000 and $4,238,000 at March 31, 2023 and December 31, 2022, 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 Unaudited Condensed Consolidated Balance Sheets was as follows: Financial Statement Line March 31, 2023 December 31, 2022 Assets Operating lease assets Other assets $ 1,096 $ 1,278 Financing lease assets Property and equipment, net 2 51 Total lease assets $ 1,098 $ 1,329 Liabilities Operating lease liabilities Operating lease liability $ 1,412 $ 1,689 Financing lease liabilities Other liabilities — 2 Total lease liabilities $ 1,412 $ 1,691 The components of lease expenses were as follows: Three Months Ended March 31, 2023 2022 Operating lease expense $ 222 $ 160 Financing lease expense: Amortization of leased assets 7 129 Net lease expense $ 229 $ 289 At March 31, 2023, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total Remaining in 2023 $ 682 $ — $ 682 2024 593 — 593 2025 222 — 222 2026 11 — 11 2027 — — — Thereafter — — — Total undiscounted future minimum lease payments 1,508 — 1,508 Less: Imputed interest (96) — (96) Present value of lease liabilities $ 1,412 $ — $ 1,412 Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: March 31, 2023 December 31, 2022 Weighted average remaining lease term (months) Operating leases 23 25 Financing leases — 9 Weighted average discount rate Operating leases 3.70 % 3.79 % Financing leases — % 3.27 % There were no other cash or non-cash related activities during the three months ended March 31, 2023 and 2022. Capital lease amortization expenses are included in depreciation expense in our Unaudited Condensed Consolidated Statements of Comprehensive Loss. See Note 7 of these Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding depreciation expense, Note 11 for information regarding commitments related to long-term debt, and Note 14 for information regarding commitments related to regulatory actions. Subleases We previously leased and occupied office space in which we no longer operate. Effective October 1, 2022, this office space is now subleased to a third-party. This sublease is effective from October 1, 2022 through July 31, 2025, with no option to extend. During the three months ended March 31, 2023, we recognized $33,000 of income related to this sublease, exclusive of the lease expense associated with the original lease. During the year ended December 31, 2022, we recognized $297,000 of income related to this sublease, exclusive of the lease expense associated with the original lease. Additionally, as a result of the sublease, we evaluated our right-of-use asset associated with the original lease for impairment, using the undiscounted cash flows from the sublease. During the year ended December 31, 2022, we recognized impairment of $175,000, which was recognized in the results of our personal lines operating segment. Employee Retention Credit A series of legislation was enacted in the United States during 2020 and 2021 in response to the COVID-19 pandemic that provided financial relief for businesses impacted by government-mandated shutdowns, work stoppages, or other losses suffered by employers. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided an employee retention credit, which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee. During the second quarter of 2022, we evaluated our eligibility and filed for a $10,161,000 refund in connection with our Employee Retention Tax Credit for the tax year ended December 31, 2021. As of March 31, 2022, we have received $5,718,000 from the Internal Revenue Service related to this refund. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We have not recorded the recognition of this gain contingency, except for what has already been received and what was received after the balance sheet date prior to finalizing our results for the quarter, prior to settlement of the underlying event. While we believe the likelihood of the refund approval being reversed is low, a loss contingency to the extent of the refunds received and recognized is present. We will continue to monitor the matter for further developments that could affect the outcome of these contingencies and will make any appropriate adjustments each quarter. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR EXPECTED CREDIT LOSSES We are exposed to credit losses primarily through four different pools of assets based on similar risk characteristics: premiums receivable for direct written business; reinsurance recoverables from ceded losses to our reinsurers; our investment holdings; and our notes 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 tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2023 and 2022: March 31, 2023 December 31, 2022 Provision for expected credit losses Write-offs March 31, 2023 Premiums Receivable $ 32 $ (34) $ 29 $ 27 Reinsurance Recoverables 333 (183) — 150 Total $ 365 $ (217) $ 29 $ 177 March 31, 2022 December 31, 2021 Provision for expected credit losses Write-offs March 31, 2022 Premiums Receivable $ 16 $ (14) $ 10 $ 12 Reinsurance Recoverables 58 22 — 80 Total $ 74 $ 8 $ 10 $ 92 |
Statutory Accounting and Regula
Statutory Accounting and Regulation | 3 Months Ended |
Mar. 31, 2023 | |
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. Effective June 1, 2022, our insurance subsidiaries JIC and ACIC were merged, with ACIC being the surviving entity. Effective May 31, 2022, our former insurance subsidiaries UPC and FSIC were merged, with UPC being the surviving entity. Both UPC and ACIC are domiciled in Florida, while IIC is domiciled in New York. At March 31, 2023, and during the three months then ended, ACIC and IIC met all regulatory requirements of the states in which they operate. As of December 31, 2022, UPC was determined to be insolvent and effective February 27, 2023 was placed into receivership by the DFS. During 2023, we received an assessment notice from the Florida Insurance Guaranty Association (FIGA). This assessment will be 0.7% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. This assessment is in addition to the 1.3% assessment, described below, and is recoupable from policyholders. During 2022, we received an assessment notice from FIGA. This assessment will be 1.3% on direct written premium of all covered lines of business in Florida to cover the cost of an insurance company facing insolvency. The National Association of Insurance Commissioners (NAIC) has Risk-Based Capital (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 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 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. Additionally, in connection with our former subsidiary UPC's plan for run off, IIC has agreed to not pay ordinary dividends without prior approval of the New York Department of Financial Services until January 1, 2025. Our insurance subsidiaries must each file with the various insurance regulatory authorities an “Annual Statement” which reports, among other items, statutory net income (loss) and surplus as regards policyholders, which is called stockholders' equity under GAAP. The table below details the statutory net income (loss) for each of our regulated entities for the three months ended March 31, 2023 and 2022. Three Months Ended March 31, 2023 2022 ACIC (1) 18,230 6,110 IIC (2,203) (3,985) Total $ 16,027 $ 2,125 (1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022. 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 March 31, 2023, we met these requirements. The table below details the amount of surplus as regards policyholders for each of our regulated entities at March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 ACIC (1) 101,811 77,511 IIC 23,966 26,152 Total $ 125,777 $ 103,663 (1) ACIC results are inclusive of JIC as these entities were merged effective June 1, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE LOSS We report changes in other comprehensive income (loss) items within comprehensive income (loss) on the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), and we include accumulated other comprehensive income (loss) as a component of stockholders' equity on our Unaudited Condensed Consolidated Balance Sheets. The table below details the components of accumulated other comprehensive loss at period end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2022 $ (33,041) $ 2,094 $ (30,947) Changes in net unrealized losses on investments 5,574 (315) 5,259 Reclassification adjustment for realized losses (1,260) 315 (945) Impact of deconsolidation of discontinued operations $ (3) $ 1,007 $ 1,004 March 31, 2023 $ (28,730) $ 3,101 $ (25,629) |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, 2023 2022 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ — $ — $ 0.06 $ 2,589 In July 2019, our Board of Directors authorized a stock repurchase plan of up to $25,000,000 of our common stock. As of March 31, 2023, 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 17 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | ) STOCK-BASED COMPENSATION We account for stock-based compensation under the fair value recognition provisions of ASC Topic 718 - Compensation - Stock Compensation . We recognize stock-based compensation cost over the award’s requisite service period on a straight-line basis for time-based restricted stock grants and performance-based restricted stock grants. We record forfeitures as they occur for all stock-based compensation. The following table presents our total stock-based compensation expense: Three Months Ended March 31, 2023 2022 Employee stock-based compensation expense Pre-tax $ 309 $ 390 Post-tax (1) 244 308 Director stock-based compensation expense Pre-tax 26 62 Post-tax (1) 21 49 (1) The after tax amounts are determined using the 21% corporate federal tax rate. We had approximately $1,709,000 of unrecognized stock compensation expense at March 31, 2023 related to non-vested stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 1.8 years. We had approximately $10,000 of unrecognized director stock-based compensation expense at March 31, 2023 related to non-vested director stock-based compensation granted, which we expect to recognize over a weighted-average period of approximately 0.1 years. Restricted stock, restricted stock units and performance stock units Stock-based compensation cost for restricted stock awards, restricted stock units and performance stock units is measured based on the closing fair market value of our common stock on the date of grant, which vest in equal installments over the requisite service period of typically three years. Restricted stock awards granted to non-employee directors vest over a one-year period. Each restricted stock unit and performance stock unit represents our obligation to deliver to the holder one share of common stock upon vesting. Performance stock units vest based on the Company's return on average equity compared to a defined group of peer companies. On the grant date, we issue the target number of performance stock units. They are subject to forfeitures if performance goals are not met. The actual number of performance stock units earned can vary from zero to 150 percent of the target for the 2023, 2022, and 2021 awards. We did not grant any shares of restricted common stock during the three month period ended March 31, 2023. We granted 114,866 shares of restricted common stock during the three month period ended March 31, 2022, which had a weighted-average grant date fair value of $3.59 per share. 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, 2022 714,239 $ 2.73 Granted — — Less: Forfeited 856 3.59 Less: Vested 44,457 4.40 Outstanding as of March 31, 2023 668,926 $ 2.62 Stock options Stock option fair value was estimated on the grant date using the Black-Scholes-Merton formula. Stock options vest in equal installments over the requisite service period of typically three years. The following weighted-average assumptions were used to value the stock options granted: 2023 2022 Expected annual dividend yield — % — % Expected volatility — % 49.66 % Risk-free interest rate — % 2.92 % Expected term N/A 6 years The expected annual dividend yield for our options granted during 2022 is based on no dividends being paid in future quarters. The expected volatility is a historical volatility calculated based on the daily closing prices over a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date. Expected term takes into account the three-year graded vesting term and the 10-year contractual term of the option. We did not grant any stock options during the three month periods ended March 31, 2023 and 2022. 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, 2022 1,250,685 $ 3.71 7.66 $ — Granted — — — — Less: Forfeited — — — — Less: Expired 161,925 3.05 — — Less: Exercised — — — — Outstanding as of March 31, 2023 1,088,760 $ 3.81 8.55 $ 451 Vested as of March 31, 2023 (1) 532,797 $ 7.26 7.79 $ 112 Exercisable as of March 31, 2023 270,861 $ 6.57 7.89 $ 112 (1) The vested shares are calculated based on all vested shares at March 31, 2023, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSWe evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Pending Accounting Pronouncements | (a) Changes to Significant Accounting Policies During the three months ended March 31, 2023, our former subsidiary, UPC, was placed into receivership with the DFS. As described in Note 1 , effective February 27, 2023, this receivership divested our ownership of UPC. This disposal was evaluated for qualification as a discontinued operation. The results of operations of business are reported as discontinued operations when the disposal represents a strategic shift that will have a major effect on the entity's operations and financial results. When a business is identified for discontinued operations reporting: • Results for prior periods are retroactively reclassified as discontinued operations; • Results of operations are reported in a single line, net of tax, in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss); and • Assets and liabilities are reported as held for disposal in the Unaudited Condensed Consolidated Balance Sheets Additional details by major classification of operating results and financial position are included in Note 3 . There have been no other changes to our significant accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022. (b) Pending Accounting Pronouncements |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Assets & Liabilities | The results from discontinued operations for the three months ended March 31, 2023 and 2022 are presented below. Results From Discontinued Operations Three Months Ended March 31, 2023 2022 REVENUE: Gross premiums written $ (120,608) $ 146,828 Change in gross unearned premiums 198,154 59,726 Gross premiums earned 77,546 206,554 Ceded premiums earned (48,203) (163,443) Net premiums earned 29,343 43,111 Net investment income 2,182 1,075 Net realized investment gains (losses) 1,343 (1,806) Net unrealized gains (losses) on equity securities 2,080 (1,498) Other revenue 71 170 Total revenue 35,019 41,052 EXPENSES: Losses and loss adjustment expenses 33,978 64,691 Policy acquisition costs 8,361 24,070 Operating expenses 513 1,645 General and administrative expenses 240 570 Interest expense 22 20 Total expenses 43,114 90,996 Loss before other income (8,095) (49,944) Other income (loss) — 9 Loss before income taxes (8,095) (49,935) Provision (benefit) for income taxes (9,217) (12,031) Income (loss) from discontinued operations, net of tax $ 1,122 $ (37,904) As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $229,183,000 for the period. This gain was driven by the negative equity position of UPC. The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below. Major Classes of Assets and Liabilities Disposed Closing (1) December 31, 2022 ASSETS Fixed maturities, available-for-sale 1,380 171,781 Equity securities 272 23,363 Other investments 12,882 12,952 Cash and cash equivalents 224,824 158,990 Restricted cash 7,758 7,730 Accrued investment income 875 1,457 Premiums receivable, net 22,733 46,736 Reinsurance recoverable on paid and unpaid losses, net 548,929 834,863 Ceded unearned premiums 75,262 122,533 Deferred policy acquisition costs, net (89) (2,046) Other assets 53,675 33,548 Total assets $ 948,501 $ 1,411,907 LIABILITIES Unpaid losses and loss adjustment expenses 920,431 1,103,980 Unearned premiums 98,655 286,842 Reinsurance payable on premiums 12,612 29,394 Payments outstanding 144,238 213,058 Accounts payable and accrued expenses 1,361 (872) Other liabilities (3,731) 5,692 Notes payable, net 4,118 4,118 Total Liabilities $ 1,177,684 $ 1,642,212 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented. Three Months Ended March 31, 2023 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 176,641 $ 10,482 $ — $ 187,123 Change in gross unearned premiums (44,607) 1,960 — (42,647) Gross premiums earned 132,034 12,442 — 144,476 Ceded premiums earned (53,374) (3,778) — (57,152) Net premiums earned 78,660 8,664 — 87,324 Net investment income 1,786 782 21 2,589 Net realized gains (losses) (83) — — (83) Net unrealized losses on equity securities 473 — 1 474 Management fee income — 9,668 — 9,668 Other revenue — 4,075 — 4,075 Total revenues 80,836 23,189 22 104,047 EXPENSES: Losses and loss adjustment expenses 13,901 5,172 — 19,073 Policy acquisition costs 25,166 1,761 — 26,927 Operating expenses 96 5,431 124 5,651 General and administrative expenses (2) 2,754 6,951 132 9,837 Interest expense — — 2,719 2,719 Total expenses 41,917 19,315 2,975 64,207 Income (loss) before other income 38,919 3,874 (2,953) 39,840 Other income (loss) — 803 (215) 588 Income (loss) before income taxes $ 38,919 $ 4,677 (3,168) 40,428 Provision for income taxes 9,855 9,855 Net income (loss) $ (13,023) $ 30,573 Less: Net loss attributable to noncontrolling interests — — Net income (loss) attributable to UIHC $ (13,023) $ 30,573 Loss ratio, net (3) (4) 17.7 % 59.7 % 21.9 % Expense ratio (3) (5) 35.6 % 163.2 % 48.6 % Combined ratio (3) (6) 53.3 % 222.9 % 70.5 % Total segment assets $ 1,304,499 $ 130,045 $ 10,842 $ 1,445,386 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $1,260,000 and $812,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses. (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. Three Months Ended March 31, 2022 Commercial Personal (1) Adjustments Consolidated REVENUE: Gross premiums written $ 127,964 $ 14,450 $ — $ 142,414 Change in gross unearned premiums (20,499) 818 — (19,681) Gross premiums earned 107,465 15,268 — 122,733 Ceded premiums earned (62,022) (2,965) — (64,987) Net premiums earned 45,443 12,303 — 57,746 Net investment income 1,127 268 9 1,404 Net realized gains 2 35 — 37 Net unrealized losses on equity securities (769) — (1) (770) Management fee income — 50,206 — 50,206 Other revenue — 8,738 — 8,738 Total revenues 45,803 71,550 8 117,361 EXPENSES: Losses and loss adjustment expenses 14,114 18,404 — 32,518 Policy acquisition costs 16,678 35,474 — 52,152 Operating expenses 1,109 9,403 91 10,603 General and administrative expenses (2) 2,320 12,734 381 15,435 Interest expense — — 2,359 2,359 Total expenses 34,221 76,015 2,831 113,067 Income (loss) before other income 11,582 (4,465) (2,823) 4,294 Other income — (277) 1,610 1,333 Income (loss) before income taxes $ 11,582 $ (4,742) (1,213) 5,627 Provision for income taxes 980 980 Net income (loss) $ (2,193) $ 4,647 Less: Net income attributable to noncontrolling interests (85) (85) Net income (loss) attributable to UIHC $ (2,108) $ 4,732 Loss ratio, net (3) (4) (7) 31.1 % 149.6 % 56.3 % Expense ratio (3) (5) (7) 44.2 % 468.3 % 135.4 % Combined ratio (3) (6) (7) 75.3 % 617.9 % 191.7 % Total segment assets $ 949,359 $ 179,208 $ 17,507 $ 1,146,074 (1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations. (2) Included in our General and Administrative expenses is $1,512,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. (3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below. (4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses . (5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses. (6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt and Equity Securities, FV-NI | |
Schedule of Available-for-sale Securities Reconciliation | The following table details fixed-maturity available-for-sale securities, by major investment category, at March 31, 2023 and December 31, 2022: Cost or Adjusted/Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2023 U.S. government and agency securities $ 3,491 $ — $ 82 $ 3,409 Foreign government 1,000 — 9 991 States, municipalities and political subdivisions 31,924 15 3,357 28,582 Public utilities 8,913 — 1,093 7,820 Corporate securities 99,324 58 13,659 85,723 Mortgage-backed securities 64,285 — 8,283 56,002 Asset-backed securities 30,536 36 2,366 28,206 Total fixed maturities $ 239,473 $ 109 $ 28,849 $ 210,733 December 31, 2022 U.S. government and agency securities $ 2,490 $ — $ 105 $ 2,385 Foreign government 1,000 — 9 991 States, municipalities and political subdivisions 30,958 2 4,065 26,895 Public utilities 8,936 — 1,242 7,694 Corporate securities 99,062 20 15,739 83,343 Mortgage-backed securities 65,251 — 9,136 56,115 Asset-backed securities 30,038 9 2,788 27,259 Total fixed maturities $ 237,735 $ 31 $ 33,084 $ 204,682 |
Equity Securities Fair Value | Equity securities are summarized as follows: March 31, 2023 December 31, 2022 Estimated Fair Value Percent of Total Estimated Fair Value Percent of Total Mutual funds $ 16,181 100.0 % $ 15,657 100.0 % |
Schedule of Realized Gain (Loss) | The following table details our realized gains (losses) by major investment category for the three months ended March 31, 2023 and 2022, respectively: 2023 2022 Gains Fair Value at Sale Gains Fair Value at Sale Three Months Ended March 31, Fixed maturities $ 4 $ 5,292 $ 41 $ 12,192 Equity securities — — — — Short-term investments — 126 — — Total realized gains 4 5,418 41 12,192 Fixed maturities (87) (41) (4) 251 Equity securities — — — — Short-term investments — — — — Total realized losses (87) (41) (4) 251 Net realized investment gains (losses) $ (83) $ 5,377 $ 37 $ 12,443 |
Investments Classified by Contractual Maturity Date | The table below summarizes our fixed maturities at March 31, 2023 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. March 31, 2023 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Due in one year or less $ 7,097 3.0 % $ 7,016 3.3 % Due after one year through five years 50,754 21.2 46,402 22.0 Due after five years through ten years 82,508 34.5 69,386 32.9 Due after ten years 4,293 1.8 3,721 1.8 Asset and mortgage-backed securities 94,821 39.5 84,208 40.0 Total $ 239,473 100.0 % $ 210,733 100.0 % |
Investment Income | The following table summarizes our net investment income by major investment category: Three Months Ended March 31, 2023 2022 Fixed maturities $ 1,272 $ 1,431 Equity securities 81 66 Cash and cash equivalents 1,304 22 Other investments 6 55 Other assets — — Investment income 2,663 1,574 Investment expenses (74) (170) Net investment income $ 2,589 $ 1,404 |
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 March 31, 2023 U.S. government and agency securities 1 $ 9 $ 990 2 $ 73 $ 1,421 Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 8 49 3,732 45 3,308 23,324 Public utilities — — — 12 1,093 7,819 Corporate securities 35 547 10,964 115 13,112 71,582 Mortgage-backed securities 12 248 3,749 116 8,035 52,254 Asset-backed securities 7 36 3,013 54 2,330 22,632 Total fixed maturities 64 $ 898 $ 23,439 344 $ 27,951 $ 179,032 December 31, 2022 U.S. government and agency securities 3 $ 105 $ 2,385 — $ — $ — Foreign governments 1 9 991 — — — States, municipalities and political subdivisions 21 540 7,306 31 3,525 18,853 Public utilities 8 193 2,286 4 1,049 5,408 Corporate securities 78 2,279 24,594 77 13,460 57,765 Mortgage-backed securities 48 1,282 15,259 80 7,854 40,856 Asset-backed securities 16 795 6,397 46 1,993 19,028 Total fixed maturities 175 $ 5,203 $ 59,218 238 $ 27,881 $ 141,910 (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 March 31, 2023 and December 31, 2022: Total Level 1 Level 2 Level 3 March 31, 2023 U.S. government and agency securities $ 3,409 $ — $ 3,409 $ — Foreign government 991 — 991 — States, municipalities and political subdivisions 28,582 — 28,582 — Public utilities 7,820 — 7,820 — Corporate securities 85,723 — 85,723 — Mortgage-backed securities 56,002 — 56,002 — Asset-backed securities 28,206 — 28,206 — Total fixed maturities 210,733 — 210,733 — Mutual funds 16,181 16,181 — — Total investments $ 226,914 $ 16,181 $ 210,733 $ — December 31, 2022 U.S. government and agency securities $ 2,385 $ — $ 2,385 $ — Foreign government 991 — 991 — States, municipalities and political subdivisions 26,895 — 26,895 — Public utilities 7,694 — 7,694 — Corporate securities 83,343 — 83,343 — Mortgage-backed securities 56,115 — 56,115 — Asset-backed securities 27,259 — 27,259 — Total fixed maturities 204,682 — 204,682 — Mutual Funds 15,657 15,657 — — Total equity securities 15,657 15,657 — — Other investments (1) 125 — 125 — Total investments $ 220,464 $ 15,657 $ 204,807 $ — (1) Other investments included in the fair value hierarchy exclude these limited partnership interests that are measured at estimated fair value using the net asset value per share (or its equivalent) practical expedient. |
Schedule of Investments in Limited Partnerships | The information presented in the table below is as of March 31, 2023: Book Value Unrealized Gain Unrealized Loss Fair Value March 31, 2023 Limited partnership investments (1) $ 2,917 $ 633 $ — $ 3,550 |
Restrictions on Cash and Cash Equivalents | The following table presents the components of restricted assets: March 31, 2023 December 31, 2022 Trust funds $ 49,046 $ 45,364 Cash on deposit (regulatory deposits) 625 624 Total restricted cash $ 49,671 $ 45,988 |
Securities Owned and Other Investments Not Readily Marketable Disclosure | The table below shows the carrying value of those securities held on deposit with regulators. March 31, 2023 December 31, 2022 Invested assets on deposit (regulatory deposits) $ 2,491 $ 2,616 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table shows the computation of basic and diluted EPS for the three month periods ended March 31, 2023 and 2022, respectively: Three Months Ended March 31, 2023 2022 Numerator: Net income (loss) attributable to UIHC common stockholders $ 260,878 $ (33,172) Denominator: Weighted-average shares outstanding 43,124,825 42,980,691 Effect of dilutive securities 450,015 — Weighted-average diluted shares 43,574,840 42,980,691 Earnings available to UIHC common stockholders per share Basic $ 6.05 $ (0.77) Diluted $ 5.99 $ (0.77) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: March 31, December 31, Computer hardware and software (software in progress of $76 and $82, respectively) $ 29,746 $ 29,760 Office furniture and equipment 798 1,414 Leasehold improvements 316 753 Leased vehicles (1) 11 1,080 Total, at cost 30,871 33,007 Less: accumulated depreciation and amortization (12,753) (13,416) Property and equipment, net $ 18,118 $ 19,591 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets: March 31, 2023 December 31, 2022 Intangible assets subject to amortization $ 10,560 $ 11,372 Indefinite-lived intangible assets (1) 1,198 1,398 Total $ 11,758 $ 12,770 (1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses. |
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 March 31, 2023 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.0 34,661 (24,910) 9,751 Trade names acquired 1.0 6,381 (5,572) 809 Total $ 83,830 $ (73,270) $ 10,560 December 31, 2022 Value of business acquired — $ 42,788 $ (42,788) $ — Agency agreements acquired 4.3 34,661 (24,300) 10,361 Trade names acquired 1.3 6,381 (5,370) 1,011 Total $ 83,830 $ (72,458) $ 11,372 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows: Year ending December 31, Estimated Amortization Expense Remaining in 2023 $ 2,435 2024 2,640 2025 2,438 2026 2,438 2027 609 2028 — |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverables | Reinsurance recoverable at the balance sheet dates consists of the following: March 31, December 31, 2023 2022 Reinsurance recoverable on unpaid losses and loss adjustment expenses $ 646,003 $ 732,254 Reinsurance recoverable on paid losses and loss adjustment expenses 146,347 64,292 Reinsurance recoverable (1) $ 792,350 $ 796,546 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table below shows the analysis of our reserve for unpaid losses for the three months ended March 31, 2023 and 2022 on a GAAP basis: March 31, 2023 2022 Balance at January 1 $ 842,958 $ 250,642 Less: reinsurance recoverable on unpaid losses 732,254 176,096 Net balance at January 1 $ 110,704 $ 74,546 Incurred related to: Current year 22,238 35,582 Prior years (3,165) (3,064) Total incurred $ 19,073 $ 32,518 Paid related to: Current year 13,303 17,236 Prior years 14,112 18,429 Total paid $ 27,415 $ 35,665 Net balance at March 31 $ 102,362 $ 71,399 Plus: reinsurance recoverable on unpaid losses 646,003 168,174 Balance at March 31 $ 748,365 $ 239,573 Composition of reserve for unpaid losses and LAE: Case reserves $ 284,679 $ 119,969 IBNR reserves 463,686 119,604 Balance at March 31 $ 748,365 $ 239,573 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The table below presents all long-term debt outstanding as of March 31, 2023 and December 31, 2022: Effective Interest Rate Carrying Value at Maturity March 31, 2023 December 31, 2022 Senior Notes December 15, 2027 7.25% $ 150,000 $ 150,000 Florida State Board of Administration Note (1) July 1, 2026 N/A — — Truist Term Note Payable (2) May 26, 2031 N/A — — Total long-term debt $ 150,000 $ 150,000 |
Debt Issuance Cost Rollforward | The table below presents the rollforward of our debt issuance costs paid, in conjunction with the debt instruments described above, during the three months ended March 31, 2023 and 2022: 2023 2022 Balance at January 1, $ 1,645 $ 1,998 Additions — — Amortization (83) (84) Balance at March 31, $ 1,562 $ 1,914 |
Commitments and Contingencies L
Commitments and Contingencies Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expenses were as follows: Three Months Ended March 31, 2023 2022 Operating lease expense $ 222 $ 160 Financing lease expense: Amortization of leased assets 7 129 Net lease expense $ 229 $ 289 |
Lease Assets and Liabilities | The classification of operating and finance lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows: Financial Statement Line March 31, 2023 December 31, 2022 Assets Operating lease assets Other assets $ 1,096 $ 1,278 Financing lease assets Property and equipment, net 2 51 Total lease assets $ 1,098 $ 1,329 Liabilities Operating lease liabilities Operating lease liability $ 1,412 $ 1,689 Financing lease liabilities Other liabilities — 2 Total lease liabilities $ 1,412 $ 1,691 |
Weighted Average Lease Terms | Weighted average remaining lease term and discount rate related to operating and finance leases were as follows: March 31, 2023 December 31, 2022 Weighted average remaining lease term (months) Operating leases 23 25 Financing leases — 9 Weighted average discount rate Operating leases 3.70 % 3.79 % Financing leases — % 3.27 % |
Lessee, Operating Lease, Liability, Maturity | At March 31, 2023, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows: Operating Leases Finance Leases Total Remaining in 2023 $ 682 $ — $ 682 2024 593 — 593 2025 222 — 222 2026 11 — 11 2027 — — — Thereafter — — — Total undiscounted future minimum lease payments 1,508 — 1,508 Less: Imputed interest (96) — (96) Present value of lease liabilities $ 1,412 $ — $ 1,412 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Credit Loss Allowance Activity [Table] | The following tables summarize our allowance for expected credit losses by pooled asset for the three months ended March 31, 2023 and 2022: March 31, 2023 December 31, 2022 Provision for expected credit losses Write-offs March 31, 2023 Premiums Receivable $ 32 $ (34) $ 29 $ 27 Reinsurance Recoverables 333 (183) — 150 Total $ 365 $ (217) $ 29 $ 177 March 31, 2022 December 31, 2021 Provision for expected credit losses Write-offs March 31, 2022 Premiums Receivable $ 16 $ (14) $ 10 $ 12 Reinsurance Recoverables 58 22 — 80 Total $ 74 $ 8 $ 10 $ 92 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 loss at period end: Pre-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount December 31, 2022 $ (33,041) $ 2,094 $ (30,947) Changes in net unrealized losses on investments 5,574 (315) 5,259 Reclassification adjustment for realized losses (1,260) 315 (945) Impact of deconsolidation of discontinued operations $ (3) $ 1,007 $ 1,004 March 31, 2023 $ (28,730) $ 3,101 $ (25,629) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of 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): Three Months Ended March 31, 2023 2022 Per Share Amount Aggregate Amount Per Share Amount Aggregate Amount First Quarter $ — $ — $ 0.06 $ 2,589 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
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, 2022 1,250,685 $ 3.71 7.66 $ — Granted — — — — Less: Forfeited — — — — Less: Expired 161,925 3.05 — — Less: Exercised — — — — Outstanding as of March 31, 2023 1,088,760 $ 3.81 8.55 $ 451 Vested as of March 31, 2023 (1) 532,797 $ 7.26 7.79 $ 112 Exercisable as of March 31, 2023 270,861 $ 6.57 7.89 $ 112 (1) The vested shares are calculated based on all vested shares at March 31, 2023, inclusive of those that have since expired. The weighted average exercise prices, weighted-average remaining contractual term and aggregate intrinsic value is calculated based on only vested shares that are outstanding and exercisable at March 31, 2023. |
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, 2022 714,239 $ 2.73 Granted — — Less: Forfeited 856 3.59 Less: Vested 44,457 4.40 Outstanding as of March 31, 2023 668,926 $ 2.62 |
Share-based Payment Arrangement, Activity | The following table presents our total stock-based compensation expense: Three Months Ended March 31, 2023 2022 Employee stock-based compensation expense Pre-tax $ 309 $ 390 Post-tax (1) 244 308 Director stock-based compensation expense Pre-tax 26 62 Post-tax (1) 21 49 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted-average assumptions were used to value the stock options granted: 2023 2022 Expected annual dividend yield — % — % Expected volatility — % 49.66 % Risk-free interest rate — % 2.92 % Expected term N/A 6 years |
Organization, Consolidation a_2
Organization, Consolidation and Presentation (Details) | 3 Months Ended |
Mar. 31, 2023 subsidiary | |
Number of Wholly-Owned Subsidiaries | |
Number of Wholly Owned Subsidiaries | 2 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increase (Decrease) in Unearned Premiums | $ 145,540 | $ 39,731 | ||
Investment Income, Net | 2,589 | 1,404 | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 210,733 | $ 204,682 | ||
Equity Securities, FV-NI | 16,181 | 15,657 | ||
Other investments (amortized cost of $16,780 and $17,131 | 3,550 | 3,675 | ||
Cash and Cash Equivalents | 92,586 | 70,903 | ||
Restricted Cash | 49,671 | 45,988 | ||
Accrued Investment Income | 1,818 | 1,605 | ||
Property and equipment, net | 18,118 | 19,591 | ||
Premiums receivable, net (credit allowance of $28 and $32) | 48,120 | 39,301 | ||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563) | 792,350 | 796,546 | ||
Prepaid Reinsurance Premiums | 65,702 | 90,496 | ||
Deferred policy acquisition costs | 59,897 | 60,979 | ||
Other assets, net | 15,426 | 3,920 | ||
Disposal Group, Including Discontinued Operation, Assets | 0 | 1,411,907 | ||
Unpaid losses and loss adjustment expenses | 748,365 | 239,573 | 842,958 | $ 250,642 |
Unearned Premiums | 301,625 | 258,978 | ||
Reinsurance Payable | 33,908 | 30,503 | ||
Payments outstanding | 2,326 | 2,000 | ||
Accounts Payable | 89,582 | 75,374 | ||
Other Liabilities | 36,242 | 17,466 | ||
Notes Payable | 148,438 | 148,355 | ||
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 1,642,212 | ||
Continuing Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gross premiums written | 187,123 | 142,414 | ||
Increase (Decrease) in Unearned Premiums | (42,647) | (19,681) | ||
Gross premiums earned | 144,476 | 122,733 | ||
Ceded premiums earned | (57,152) | (64,987) | ||
Premiums Earned, Net, Property and Casualty | 87,324 | 57,746 | ||
Investment Income, Net | 2,589 | 1,404 | ||
Gain (Loss) on Investments | (83) | 37 | ||
Increase (Decrease) in Equity Securities, FV-NI | 474 | (770) | ||
Other revenue | 4,075 | 8,738 | ||
Revenues | 104,047 | 117,361 | ||
Losses and loss adjustment expenses | 19,073 | 32,518 | ||
Policy acquisition costs | 26,927 | 52,152 | ||
Operating Costs and Expenses | 5,651 | 10,603 | ||
General and administrative expenses | 9,837 | 15,435 | ||
Interest expense | 2,719 | 2,359 | ||
Costs and Expenses | 64,207 | 113,067 | ||
Operating Income (Loss) | 39,840 | 4,294 | ||
Other income | 588 | 1,333 | ||
Provision for income taxes | 9,855 | 980 | ||
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gross premiums written | (120,608) | 146,828 | ||
Increase (Decrease) in Unearned Premiums | 198,154 | 59,726 | ||
Gross premiums earned | 77,546 | 206,554 | ||
Ceded premiums earned | (48,203) | (163,443) | ||
Premiums Earned, Net, Property and Casualty | 29,343 | 43,111 | ||
Investment Income, Net | 2,182 | 1,075 | ||
Gain (Loss) on Investments | 1,343 | (1,806) | ||
Increase (Decrease) in Equity Securities, FV-NI | 2,080 | (1,498) | ||
Other revenue | 71 | 170 | ||
Revenues | 35,019 | 41,052 | ||
Losses and loss adjustment expenses | 33,978 | 64,691 | ||
Policy acquisition costs | 8,361 | 24,070 | ||
Operating Costs and Expenses | 513 | 1,645 | ||
General and administrative expenses | 240 | 570 | ||
Interest expense | 22 | 20 | ||
Costs and Expenses | 43,114 | 90,996 | ||
Operating Income (Loss) | (8,095) | (49,944) | ||
Other income | 0 | 9 | ||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (8,095) | (49,935) | ||
Provision for income taxes | (9,217) | (12,031) | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 1,122 | $ (37,904) | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 1,380 | 171,781 | ||
Equity Securities, FV-NI | 272 | 23,363 | ||
Other investments (amortized cost of $16,780 and $17,131 | 12,882 | 12,952 | ||
Cash and Cash Equivalents | 224,824 | 158,990 | ||
Restricted Cash | 7,758 | 7,730 | ||
Accrued Investment Income | 875 | 1,457 | ||
Premiums receivable, net (credit allowance of $28 and $32) | 22,733 | 46,736 | ||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments (credit allowance of $552 and $563) | 548,929 | 834,863 | ||
Prepaid Reinsurance Premiums | 75,262 | 122,533 | ||
Deferred policy acquisition costs | (89) | (2,046) | ||
Other assets, net | 53,675 | 33,548 | ||
Disposal Group, Including Discontinued Operation, Assets | 948,501 | 1,411,907 | ||
Unpaid losses and loss adjustment expenses | 920,431 | 1,103,980 | ||
Unearned Premiums | 98,655 | 286,842 | ||
Reinsurance Payable | 12,612 | 29,394 | ||
Payments outstanding | 144,238 | 213,058 | ||
Accounts Payable | 1,361 | (872) | ||
Other Liabilities | (3,731) | 5,692 | ||
Notes Payable | 4,118 | 4,118 | ||
Disposal Group, Including Discontinued Operation, Liabilities | $ 1,177,684 | $ 1,642,212 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||
Increase (Decrease) in Unearned Premiums | $ 145,540 | $ 39,731 | |
Investment Income, Net | 2,589 | 1,404 | |
Unrealized Gain (Loss) on Investments | 2,554 | (2,268) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 260,878 | (33,257) | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (85) | |
Net Income (Loss), Parent | $ 260,878 | $ (33,172) | |
Loss Ratio | 21.90% | 56.30% | |
Underwriting Expense Ratio | 48.60% | 135.40% | |
Combined Ratio | 70.50% | 191.70% | |
Assets | $ 1,445,386 | $ 1,146,074 | $ 2,837,496 |
Continuing Operations | |||
Segment Reporting Information | |||
Gross premiums written | 187,123 | 142,414 | |
Increase (Decrease) in Unearned Premiums | (42,647) | (19,681) | |
Gross premiums earned | 144,476 | 122,733 | |
Ceded premiums earned | (57,152) | (64,987) | |
Premiums Earned, Net, Property and Casualty | 87,324 | 57,746 | |
Investment Income, Net | 2,589 | 1,404 | |
Gain (Loss) on Investments | (83) | 37 | |
Unrealized Gain (Loss) on Investments | 474 | (770) | |
Other revenue | 4,075 | 8,738 | |
Revenues | 104,047 | 117,361 | |
Losses and loss adjustment expenses | 19,073 | 32,518 | |
Policy acquisition costs | 26,927 | 52,152 | |
Operating Costs and Expenses | 5,651 | 10,603 | |
General and administrative expenses | 9,837 | 15,435 | |
Interest expense | 2,719 | 2,359 | |
Costs and Expenses | 64,207 | 113,067 | |
Operating Income (Loss) | 39,840 | 4,294 | |
Other income | 588 | 1,333 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 40,428 | 5,627 | |
Provision for income taxes | 9,855 | 980 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 30,573 | 4,647 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (85) | |
Net Income (Loss), Parent | 30,573 | 4,732 | |
Insurance Agency Management Fee | 9,668 | 50,206 | |
Commercial Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 176,641 | 127,964 | |
Increase (Decrease) in Unearned Premiums | (44,607) | (20,499) | |
Gross premiums earned | 132,034 | 107,465 | |
Ceded premiums earned | (53,374) | (62,022) | |
Premiums Earned, Net, Property and Casualty | 78,660 | 45,443 | |
Investment Income, Net | 1,786 | 1,127 | |
Gain (Loss) on Investments | (83) | 2 | |
Unrealized Gain (Loss) on Investments | 473 | (769) | |
Other revenue | 0 | 0 | |
Revenues | 80,836 | 45,803 | |
Losses and loss adjustment expenses | 13,901 | 14,114 | |
Policy acquisition costs | 25,166 | 16,678 | |
Operating Costs and Expenses | 96 | 1,109 | |
General and administrative expenses | 2,754 | 2,320 | |
Interest expense | 0 | 0 | |
Costs and Expenses | 41,917 | 34,221 | |
Operating Income (Loss) | 38,919 | 11,582 | |
Other income | 0 | 0 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 38,919 | $ 11,582 | |
Loss Ratio | 17.70% | 31.10% | |
Underwriting Expense Ratio | 35.60% | 44.20% | |
Combined Ratio | 53.30% | 75.30% | |
Assets | $ 1,304,499 | $ 949,359 | |
Personal Lines Reporting Segment | |||
Segment Reporting Information | |||
Gross premiums written | 10,482 | 14,450 | |
Increase (Decrease) in Unearned Premiums | 1,960 | 818 | |
Gross premiums earned | 12,442 | 15,268 | |
Ceded premiums earned | (3,778) | (2,965) | |
Premiums Earned, Net, Property and Casualty | 8,664 | 12,303 | |
Investment Income, Net | 782 | 268 | |
Gain (Loss) on Investments | 0 | 35 | |
Unrealized Gain (Loss) on Investments | 0 | 0 | |
Other revenue | 4,075 | 8,738 | |
Revenues | 23,189 | 71,550 | |
Losses and loss adjustment expenses | 5,172 | 18,404 | |
Policy acquisition costs | 1,761 | 35,474 | |
Operating Costs and Expenses | 5,431 | 9,403 | |
General and administrative expenses | 6,951 | 12,734 | |
Interest expense | 0 | 0 | |
Costs and Expenses | 19,315 | 76,015 | |
Operating Income (Loss) | 3,874 | (4,465) | |
Other income | 803 | (277) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 4,677 | $ (4,742) | |
Loss Ratio | 59.70% | 149.60% | |
Underwriting Expense Ratio | 163.20% | 468.30% | |
Combined Ratio | 222.90% | ||
Assets | $ 130,045 | $ 179,208 | |
Insurance Agency Management Fee | 9,668 | 50,206 | |
Adjustments and Reconciling Items | |||
Segment Reporting Information | |||
Gross premiums written | 0 | 0 | |
Increase (Decrease) in Unearned Premiums | 0 | 0 | |
Gross premiums earned | 0 | 0 | |
Ceded premiums earned | 0 | 0 | |
Premiums Earned, Net, Property and Casualty | 0 | 0 | |
Investment Income, Net | 21 | 9 | |
Gain (Loss) on Investments | 0 | 0 | |
Unrealized Gain (Loss) on Investments | 1 | (1) | |
Other revenue | 0 | 0 | |
Revenues | 22 | 8 | |
Losses and loss adjustment expenses | 0 | 0 | |
Policy acquisition costs | 0 | 0 | |
Operating Costs and Expenses | 124 | 91 | |
General and administrative expenses | 132 | 381 | |
Interest expense | 2,719 | 2,359 | |
Costs and Expenses | 2,975 | 2,831 | |
Operating Income (Loss) | (2,953) | (2,823) | |
Other income | (215) | 1,610 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (3,168) | (1,213) | |
Provision for income taxes | 9,855 | 980 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (13,023) | (2,193) | |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | (85) | |
Net Income (Loss), Parent | (13,023) | (2,108) | |
Assets | $ 10,842 | $ 17,507 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Available-for-sale Securities | ||
Credit Loss Change, Available-for-Sale Investments | $ 0 | $ 0 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities | ||
Fair Value | $ 210,733 | $ 204,682 |
U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 3,491 | 2,490 |
Fair Value | 3,409 | 2,385 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 82 | 105 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 1,000 | 1,000 |
Fair Value | 991 | 991 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 9 | 9 |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 31,924 | 30,958 |
Fair Value | 28,582 | 26,895 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 15 | 2 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 3,357 | 4,065 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 8,913 | 8,936 |
Fair Value | 7,820 | 7,694 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 1,093 | 1,242 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 99,324 | 99,062 |
Fair Value | 85,723 | 83,343 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 58 | 20 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 13,659 | 15,739 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 64,285 | 65,251 |
Fair Value | 56,002 | 56,115 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 8,283 | 9,136 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 30,536 | 30,038 |
Fair Value | 28,206 | 27,259 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 36 | 9 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 2,366 | 2,788 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities, cost | 239,473 | 237,735 |
Fair Value | 210,733 | 204,682 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 109 | 31 |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | $ 28,849 | $ 33,084 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value at Sale | ||
Fair value at sale | $ 5,418 | $ 12,192 |
Fair value at sale | (41) | 251 |
Net fair value at sale | 5,377 | 12,443 |
Debt Securities, Available-for-Sale, Realized Gain | 4 | 41 |
Debt Securities, Available-for-Sale, Realized Loss | (87) | (4) |
Debt Securities, Available-for-Sale, Realized Gain (Loss) | (83) | 37 |
Fixed Maturities | ||
Fair Value at Sale | ||
Fair value at sale | 5,292 | 12,192 |
Fair value at sale | (41) | 251 |
Debt Securities, Available-for-Sale, Realized Gain | 4 | 41 |
Debt Securities, Available-for-Sale, Realized Loss | (87) | (4) |
Equity Securities | ||
Fair Value at Sale | ||
Fair value at sale | 0 | 0 |
Fair value at sale | 0 | 0 |
Equity Securities, FV-NI, Realized Gain | 0 | 0 |
Equity Securities, FV-NI, Realized Loss | 0 | 0 |
Short-term Investments | ||
Fair Value at Sale | ||
Fair value at sale | 126 | 0 |
Fair value at sale | 0 | 0 |
Debt Securities, Available-for-Sale, Realized Gain | 0 | 0 |
Debt Securities, Available-for-Sale, Realized Loss | $ 0 | $ 0 |
Investments - Investments Class
Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Total | $ 210,733 | $ 204,682 |
Fixed Maturities | ||
Cost or Amortized Cost | ||
Due in one year or less | 7,097 | |
Due after one year through five years | 50,754 | |
Due after five years through ten years | 82,508 | |
Due after ten years | 4,293 | |
Asset and mortgage backed securities | 94,821 | |
Cost or adjusted/amortized cost | $ 239,473 | 237,735 |
Percent of Total | ||
Due in one year or less | 3% | |
Due after one year through five years | 21.20% | |
Due after five years through ten years | 34.50% | |
Due after ten years | 1.80% | |
Asset and mortgage backed securities | 39.50% | |
Total | 100% | |
Fair Value | ||
Due in one year or less | $ 7,016 | |
Due after one year through five years | 46,402 | |
Due after five years through ten years | 69,386 | |
Due after ten years | 3,721 | |
Asset and mortgage backed securities | 84,208 | |
Total | $ 210,733 | $ 204,682 |
Percent of Total | ||
Due in one year or less | 3.30% | |
Due after one year through five years | 22% | |
Due after five years through ten years | 32.90% | |
Due after ten years | 1.80% | |
Asset and mortgage backed securities | 40% | |
Total | 100% |
Investments - Investment Income
Investments - Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Investment Income | ||
Investment income | $ 2,663 | $ 1,574 |
Investment expenses | (74) | (170) |
Net investment income | 2,589 | 1,404 |
Fixed Maturities | ||
Net Investment Income | ||
Investment income | 1,272 | 1,431 |
Equity Securities | ||
Net Investment Income | ||
Investment income | 81 | 66 |
Cash and cash equivalents | ||
Net Investment Income | ||
Investment income | 1,304 | 22 |
Other Investments | ||
Net Investment Income | ||
Investment income | 6 | 55 |
Other Assets | ||
Net Investment Income | ||
Investment income | $ 0 | $ 0 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
U.S. Government and Agency Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 1 | 3 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 9 | $ 105 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 990 | $ 2,385 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 2 | 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 73 | $ 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 1,421 | $ 0 |
States, Municipalities and Political Subdivisions | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 8 | 21 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 49 | $ 540 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 3,732 | $ 7,306 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 45 | 31 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 3,308 | $ 3,525 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 23,324 | $ 18,853 |
Public Utilities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 0 | 8 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 193 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 0 | $ 2,286 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 12 | 4 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 1,093 | $ 1,049 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 7,819 | $ 5,408 |
Corporate Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 35 | 78 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 547 | $ 2,279 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 10,964 | $ 24,594 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 115 | 77 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 13,112 | $ 13,460 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 71,582 | $ 57,765 |
Mortgage-backed securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 12 | 48 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 248 | $ 1,282 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 3,749 | $ 15,259 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 116 | 80 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 8,035 | $ 7,854 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 52,254 | $ 40,856 |
Asset-backed Securities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 7 | 16 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 36 | $ 795 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 3,013 | $ 6,397 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 54 | 46 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,330 | $ 1,993 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 22,632 | $ 19,028 |
Fixed Maturities | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 64 | 175 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 898 | $ 5,203 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 23,439 | $ 59,218 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 344 | 238 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 27,951 | $ 27,881 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 179,032 | $ 141,910 |
Foreign Government | ||
Twelve Months or More | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | security | 1 | 1 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 9 | $ 9 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 991 | $ 991 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | security | 0 | 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | $ 0 | $ 0 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | $ 210,733 | $ 204,682 |
Debt Securities, Trading, and Equity Securities, FV-NI | 226,914 | 220,464 |
U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 3,409 | 2,385 |
Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 991 | 991 |
States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 28,582 | 26,895 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 7,820 | 7,694 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 85,723 | 83,343 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 56,002 | 56,115 |
Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 28,206 | 27,259 |
Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 210,733 | 204,682 |
Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 15,657 | |
Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 125 | |
Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 16,181 | 15,657 |
Level 1 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 16,181 | 15,657 |
Level 1 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 1 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 15,657 | |
Level 1 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 0 | |
Level 1 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 16,181 | 15,657 |
Level 2 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 210,733 | 204,807 |
Level 2 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 3,409 | 2,385 |
Level 2 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 991 | 991 |
Level 2 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 28,582 | 26,895 |
Level 2 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 7,820 | 7,694 |
Level 2 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 85,723 | 83,343 |
Level 2 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 56,002 | 56,115 |
Level 2 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 28,206 | 27,259 |
Level 2 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 210,733 | 204,682 |
Level 2 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
Level 2 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 125 | |
Level 2 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | 0 | 0 |
Level 3 | ||
Schedule of Available-for-sale Securities | ||
Debt Securities, Trading, and Equity Securities, FV-NI | 0 | 0 |
Level 3 | U.S. Government and Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Foreign Government | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | States, Municipalities and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Fixed Maturities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | 0 |
Level 3 | Equity Securities | ||
Schedule of Available-for-sale Securities | ||
Fixed maturities (amortized cost of $559,163 and $672,139 | 0 | |
Level 3 | Other Long-term Investments | ||
Schedule of Available-for-sale Securities | ||
Other Investments | 0 | |
Level 3 | Mutual Fund | ||
Schedule of Available-for-sale Securities | ||
Equity securities, fair value | $ 0 | $ 0 |
Investments - Schedule of Other
Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Investments | ||
Fair Value | $ 210,733 | $ 204,682 |
Other Long-term Investments | ||
Other Investments | ||
Fair Value | 125 | |
Fixed maturities, cost | 2,917 | $ 3,072 |
Limited Partnership | ||
Other Investments | ||
Fixed maturities, cost | 2,917 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Gain, before Tax | 633 | |
Debt Securities, Available-for-Sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Fair Value of Limited Partnership Interest | $ 3,550 |
Investments - Equity Securities
Investments - Equity Securities, FV-NI (Details) - Mutual Fund - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI | ||
Fair value | $ 16,181 | $ 15,657 |
Percent of Total | 100% | 100% |
Investments - Restricted Cash (
Investments - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items | ||
Assets Held-in-trust | $ 49,046 | $ 45,364 |
Restricted Cash | 49,671 | 45,988 |
Regulatory Assets, Fair Value Disclosure | 625 | 624 |
Security Deposit | $ 2,491 | $ 2,616 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income attributable to UIHC common stockholders | $ 260,878 | $ (33,172) |
Denominator | ||
Weighted-average shares outstanding | 43,124,825 | 42,980,691 |
Effect of dilutive securities | 450,015 | 0 |
Weighted-average diluted shares | 43,574,840 | 42,980,691 |
Basic earnings per share | $ 6.05 | $ (0.77) |
Diluted earnings per share | $ 5.99 | $ (0.77) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 1,260 | $ 1,710 | |
Software in progress | 76 | $ 82 | |
Property, Plant and Equipment, Disposals | 616 | 13,202 | |
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | 603 | 12,691 | |
Leased Vehicle Disposal | 1,069 | 1,222 | |
Accumulated Depreciation - Leased Vehicles Disposed of | $ 1,037 | 1,114 | |
Gain on Leased Vehicle Disposal | $ 422 | 738 | |
Building Disposal | 13,369 | ||
Accumulated Depreciation, Buildings Disposed of | 5,129 | ||
Gain on Building Disposal | $ 12,164 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Total, at cost | $ 30,871 | $ 33,007 |
Less: Accumulated Depreciation and Amortization, Property, Plant, and Equipment | (12,753) | (13,416) |
Property, Plant and Equipment, Net | 18,118 | 19,591 |
Office Equipment | ||
Property, Plant and Equipment | ||
Total, at cost | 798 | 1,414 |
Computer Equipment | ||
Property, Plant and Equipment | ||
Total, at cost | 29,746 | 29,760 |
Leasehold Improvements | ||
Property, Plant and Equipment | ||
Total, at cost | 316 | 753 |
Vehicles | ||
Property, Plant and Equipment | ||
Total, at cost | $ 11 | $ 1,080 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 812 | $ 812 | |
Goodwill | 59,476 | $ 59,476 | |
Goodwill, Impairment Loss | 13,569 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 13,569 | ||
Goodwill - Commercial Lines | 59,476 | ||
Gain (Loss) on Disposition of Intangible Assets | $ 200 | $ 2,359 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 83,830 | $ 83,830 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (73,270) | (72,458) | |
Finite-Lived Intangible Assets, Net | 10,560 | 11,372 | |
Value of Business Acquired | |||
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 | (24,910) | (24,300) | |
Finite-Lived Intangible Assets, Net | $ 9,751 | 10,361 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | 4 years 4 months | |
Trade Names | |||
Acquired Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 6,381 | 6,381 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,572) | (5,370) | |
Finite-Lived Intangible Assets, Net | $ 809 | $ 1,011 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | 1 year 4 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 2,435 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 2,640 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 2,438 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 2,438 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 609 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 1,198 | $ 1,398 |
Finite-Lived Intangible Assets, Net | 10,560 | 11,372 |
Intangible Assets, Net (Excluding Goodwill) | $ 11,758 | $ 12,770 |
Reinsurance (Details)
Reinsurance (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Reinsurance Retention Policy | |
Document Period End Date | Mar. 31, 2023 |
Event Retention Level | $ 16,400 |
Catastrophe Excess of Loss | |
Reinsurance Retention Policy | |
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | 2,500,000 |
All Other Perils Excess of Loss | |
Reinsurance Retention Policy | |
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | 101,000 |
Interboro Insurance | |
Reinsurance Retention Policy | |
Event Retention Level | 3,000 |
Interboro Insurance | Catastrophe Excess of Loss | |
Reinsurance Retention Policy | |
Reinsurance, Excess Retention, Amount Reinsured, Per Policy | $ 200,000 |
Reinsurance Recoverables (Detai
Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Reinsurance Recoverable | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 646,003 | $ 732,254 | $ 168,174 | $ 176,096 |
Reinsurance Recoverable for Paid Claims and Claims Adjustments | 146,347 | 64,292 | ||
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | $ 792,350 | $ 796,546 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Unpaid losses and loss adjustment expenses | $ 748,365 | $ 239,573 | $ 842,958 | $ 250,642 |
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 646,003 | 168,174 | 732,254 | 176,096 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 102,362 | 71,399 | $ 110,704 | $ 74,546 |
Current Year Claims and Claims Adjustment Expense | 22,238 | 35,582 | ||
Prior Year Claims and Claims Adjustment Expense | (3,165) | 3,064 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 19,073 | 32,518 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 13,303 | 17,236 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 14,112 | 18,429 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 27,415 | 35,665 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | 284,679 | 119,969 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount | $ 463,686 | $ 119,604 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 13, 2017 | May 26, 2016 | Sep. 22, 2006 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument | |||||
Notes Payable | $ 148,438 | $ 148,355 | |||
BB&T Term Note Payable | |||||
Debt Instrument | |||||
Notes Payable | $ 5,200 | ||||
Interest rate (percentage) | 1.65% | ||||
Debt Instrument, Term | 15 years | ||||
Florida State Board of Administration | |||||
Debt Instrument | |||||
Notes Payable | $ 20,000 | ||||
Debt Instrument, Term | 20 years | ||||
150M Senior Notes | |||||
Debt Instrument | |||||
Notes Payable | $ 150,000 | ||||
Interest rate (percentage) | 6.25% | ||||
Debt Instrument, Term | 10 years |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 13, 2017 | May 26, 2016 | |
Debt Instrument | ||||
Long-term Debt, Fair Value | $ 150,000 | $ 150,000 | ||
150M Senior Notes | ||||
Debt Instrument | ||||
Debt Instrument, Maturity Date | Dec. 15, 2027 | |||
Interest rate (percentage) | 6.25% | |||
Debt Instrument, Interest Rate, Effective Percentage | 7.25% | |||
Long-term Debt, Fair Value | $ 150,000 | 150,000 | ||
BB&T Term Note Payable | ||||
Debt Instrument | ||||
Debt Instrument, Maturity Date | May 26, 2031 | |||
Interest rate (percentage) | 1.65% | |||
Long-term Debt, Fair Value | $ 0 | 0 | ||
Florida State Board of Administration | ||||
Debt Instrument | ||||
Debt Instrument, Maturity Date | Jul. 01, 2026 | |||
Long-term Debt, Fair Value | $ 0 | $ 0 |
Debt Issuance Cost Rollforward
Debt Issuance Cost Rollforward (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||||
Debt Issuance Costs, Gross | $ 0 | $ 0 | ||
Accumulated Amortization, Debt Issuance Costs | (83) | (84) | ||
Debt Issuance Costs, Net | $ 1,562 | $ 1,645 | $ 1,914 | $ 1,998 |
Commitments and Contingencies_2
Commitments and Contingencies Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | |
Lease Costs | |||
Operating Lease, Expense | $ 222 | $ 160 | |
Finance Lease, Right-of-Use Asset, Amortization | 7 | 129 | |
Lease, Cost | 229 | $ 289 | |
Operating Leases, Income Statement, Sublease Revenue | $ 33 | $ 297 |
Commitments and Contingencies_3
Commitments and Contingencies Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description | ||
Operating Lease, Right-of-Use Asset | $ 1,096 | $ 1,278 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 2 | 51 |
Total Lease Assets | 1,098 | 1,329 |
Operating Lease, Liability | 1,412 | 1,689 |
Finance Lease, Liability | 0 | 2 |
Total Lease Liability | $ 1,412 | $ 1,691 |
Commitments and Contingencies W
Commitments and Contingencies Weighted Average Lease Terms (Details) | Mar. 31, 2023 Rate | Dec. 31, 2022 Rate |
Weighted Average Terms | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | 3.79% |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 11 months | 2 years 1 month |
Finance Lease, Weighted Average Discount Rate, Percent | 0% | 3.27% |
Finance Lease, Weighted Average Remaining Lease Term | 0 years | 9 months |
Commitments and Contingencies S
Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Future Minimum Rental Payments | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 682 | |
Finance Lease, Liability, to be Paid, Year One | 0 | |
Total Lease Future Payments Year 1 | 682 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 593 | |
Finance Lease, Liability, to be Paid, Year Two | 0 | |
Total Lease Future Payments Year 2 | 593 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 222 | |
Finance Lease, Liability, to be Paid, Year Three | 0 | |
Total Lease Future Payments Year 3 | 222 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 11 | |
Finance Lease, Liability, to be Paid, Year Four | 0 | |
Total Lease Future Payments Year 4 | 11 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 0 | |
Finance Lease, Liability, to be Paid, Year Five | 0 | |
Total Lease Future Payments Year 5 | 0 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 0 | |
Finance Lease, Liability, to be Paid, after Year Five | 0 | |
Total Lease Future Payments Thereafter | 0 | |
Operating Leases, Future Minimum Payments Due | 1,508 | |
Finance Lease, Liability, Payment, Due | 0 | |
Total Lease Future Payments | 1,508 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (96) | |
Finance Lease, Liability, Undiscounted Excess Amount | 0 | |
Total Lease Liability Undiscounted Excess Amount | (96) | |
Operating Lease, Liability | 1,412 | $ 1,689 |
Finance Lease, Liability | 0 | 2 |
Total Lease Liability | $ 1,412 | $ 1,691 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Partnership unfunded commitments | $ 4,242 | $ 4,238 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Loss Allowance Activity | ||||
Premium Receivable, Allowance for Credit Loss | $ 27 | $ 12 | $ 32 | $ 16 |
Reinsurance Recoverable, Allowance for Credit Loss | 150 | 80 | 333 | 58 |
Financing Receivable, Allowance for Credit Loss | 0 | 0 | ||
Total Credit Loss Allowances | 177 | 92 | $ 365 | $ 74 |
Premium Receivable, Credit Loss Expense (Reversal) | (34) | (14) | ||
Reinsurance Recoverable, Credit Loss Expense (Reversal) | (183) | 22 | ||
Total Credit Loss Allowance Expenses | (217) | 8 | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | 29 | 10 | ||
Reinsurance recoverable, allowance for credit loss, writeoff | 0 | 0 | ||
Total Credit Loss Allowance Writeoffs | $ 29 | $ 10 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Insurance [Abstract] | |||
Statutory capital and surplus balance | $ 125,777 | $ 103,663 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | 16,027 | $ 2,125 | |
Statutory capital and surplus balance | 125,777 | 103,663 | |
Statutory net income (loss) | 16,027 | 2,125 | |
American Coastal Insurance Company | |||
Insurance [Abstract] | |||
Statutory capital and surplus balance | 101,811 | 77,511 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | 18,230 | 6,110 | |
Statutory capital and surplus balance | 101,811 | 77,511 | |
Statutory net income (loss) | 18,230 | 6,110 | |
Interboro Insurance | |||
Insurance [Abstract] | |||
Statutory capital and surplus balance | 23,966 | 26,152 | |
Statutory Net Income [Line Items] | |||
Statutory net income (loss) | (2,203) | (3,985) | |
Statutory capital and surplus balance | 23,966 | $ 26,152 | |
Statutory net income (loss) | $ (2,203) | $ (3,985) |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI before Tax, Attributable to Parent | $ (28,730) | $ (33,041) | |
Accumulated Other Comprehensive Income (Loss), Tax (Expense) Benefit | 3,101 | 2,094 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (25,629) | $ (30,947) | |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | (4,231) | $ 27,689 | |
Reclassification adjustment for net realized investment (gains) losses | (83) | $ (1,769) | |
Impact of deconsolidation of former entity, tax impact | 1,007 | ||
Impact of deconsolidation of former entity, pre-tax | (3) | ||
Impact of deconsolidation of former entity, net of tax | 1,004 | ||
Consolidated Entity Excluding Noncontrolling Interests | |||
Accumulated Other Comprehensive Income (Loss) | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | 5,574 | ||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), before Adjustment, Tax | (315) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 5,259 | ||
Reclassification adjustment for net realized investment (gains) losses | (1,260) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 315 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ (945) |
Schedule of Dividends Declared
Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock | ||
Dividends declared per share (in usd per share) | $ 0 | $ 0.06 |
Aggregate amount of dividends | $ 0 | $ 2,589 |
Common Stock, Dividends, Per Share, Cash Paid | $ 2,589 |
Stockholders' Equity Narrative
Stockholders' Equity Narrative (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Stockholders' Equity Narrative [Abstract] | |
Stock Repurchase Program, Authorized Amount | $ 25,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) year | Mar. 31, 2022 USD ($) | |
Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized Stock Compensation Expense | $ 1,709 | |
Weighted average remaining expense period | year | 1.8 | |
Pre-Tax Expense | $ 309 | $ 390 |
Post-Tax Expense | 244 | 308 |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized Stock Compensation Expense | $ 10 | |
Weighted average remaining expense period | year | 0.1 | |
Pre-Tax Expense | $ 26 | 62 |
Post-Tax Expense | $ 21 | $ 49 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Common Stock Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Granted shares | 0 | 114,866 | |
Less: Forfeited shares | 856 | ||
Less: Vested shares | 44,457 | ||
Outstanding shares | 668,926 | 714,239 | |
Granted (fair value) | $ 0 | $ 3.59 | |
Less: Forfeited (fair value) | 3.59 | ||
Less: Vested (fair value) | 4.40 | ||
Outstanding (fair value) | $ 2.62 | $ 2.73 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions - Stock Options (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 Rate | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | |
Expected volatility | 49.66% | |
Risk-free interest rate | 2.92% |
Stock-Based Compensation - No_2
Stock-Based Compensation - Non-Vested Stock Options (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Option, Exercise Price Range | ||
Granted shares | 0 | |
Less: Forfeited shares | 0 | |
Outstanding shares | 1,088,760 | 1,250,685 |
Vested Shares | 532,797 | |
Exercisable shares | 270,861 | |
Granted (Weighted-Average Exercise) | $ 0 | |
Less: Forfeited (Weighted-Average Exercise) | 0 | |
Less: Exercised, (Weighted Average Exercise Price) | 0 | |
Outstanding (Weight-Average Exercise) | 3.81 | $ 3.71 |
Vested (Weighted-Average Exercise) | 7.26 | |
Exercisable (Weighted-Average Exercise) | $ 6.57 | |
Outstanding Options, weighted average remaining contractual term | 8 years 6 months | 7 years 8 months |
Vested weighted average remaining contractual term | 7 years 10 months | |
Exercisable weighted average remaining contractual term | 7 years 11 months | |
Granted Options, Intrinsic Value | $ 0 | |
Forfeited Options, Intrinsic Value | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 3.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 161,925 | |
Exercised Options, Intrinsic Value | $ 0 | |
Outstanding Options, Intrinsic Value | 451,000 | $ 0 |
Vested Options, Intrinsic value | 112,000 | |
Exercisable Options, Intrinsic Value | $ 112,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years |