Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39392 | |
Entity Registrant Name | TREAN INSURANCE GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-4512647 | |
Entity Address, Address Line One | 150 Lake Street West | |
Entity Address, City or Town | Wayzata | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55391 | |
City Area Code | 952 | |
Local Phone Number | 974-2200 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | TIG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 51,202,136 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001801754 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
Fixed maturities, at fair value (amortized cost of $499,544 and $465,459, respectively) | $ 466,819 | $ 471,061 |
Equity securities, at fair value (cost $34,248 and $984, respectively) | 30,698 | 969 |
Total investments | 497,517 | 472,030 |
Cash and cash equivalents | 100,716 | 129,577 |
Restricted cash | 299 | 407 |
Accrued investment income | 2,736 | 2,344 |
Premiums and other receivables | 153,822 | 141,920 |
Income taxes receivable | 969 | 460 |
Reinsurance recoverable | 388,801 | 377,241 |
Prepaid reinsurance premiums | 115,459 | 129,411 |
Deferred policy acquisition cost, net | 16,195 | 13,344 |
Property and equipment, net | 7,590 | 7,632 |
Right of use asset | 3,807 | 4,530 |
Goodwill | 142,347 | 142,347 |
Intangible assets, net | 70,116 | 73,114 |
Other assets | 10,906 | 8,658 |
Total assets | 1,511,280 | 1,503,015 |
Liabilities | ||
Unpaid loss and loss adjustment expenses | 577,686 | 544,320 |
Unearned premiums | 219,949 | 219,940 |
Funds held under reinsurance agreements | 200,338 | 199,410 |
Reinsurance premiums payable | 45,250 | 45,130 |
Accounts payable and accrued expenses | 23,601 | 29,448 |
Lease liability | 4,178 | 4,976 |
Deferred tax liability | 539 | 7,520 |
Debt | 29,621 | 30,362 |
Total liabilities | 1,101,162 | 1,081,106 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $0.01 par value per share (600,000,000 authorized; 51,202,136 and 51,176,887 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively) | 512 | 512 |
Additional paid-in capital | 289,174 | 288,623 |
Retained earnings | 146,221 | 128,390 |
Accumulated other comprehensive income (loss) | (25,789) | 4,384 |
Total stockholders' equity | 410,118 | 421,909 |
Total liabilities and stockholders' equity | $ 1,511,280 | $ 1,503,015 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 499,544 | $ 465,459 |
Equity securities, cost | $ 34,248 | $ 984 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 51,202,136 | 51,176,887 |
Common stock, outstanding (in shares) | 51,202,136 | 51,176,887 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Gross written premiums | $ 154,189 | $ 156,551 | $ 315,592 | $ 303,281 |
Decrease (increase) in gross unearned premiums | 2,953 | (17,927) | 89 | (36,358) |
Gross earned premiums | 157,142 | 138,624 | 315,681 | 266,923 |
Ceded earned premiums | (91,132) | (90,681) | (185,494) | (177,846) |
Net earned premiums | 66,010 | 47,943 | 130,187 | 89,077 |
Net investment income (loss) | (391) | 2,103 | 2,185 | 4,375 |
Net realized gains | 1,349 | 10 | 302 | 23 |
Other revenue | 1,804 | 1,229 | 5,005 | 5,884 |
Total revenue | 68,772 | 51,285 | 137,679 | 99,359 |
Expenses | ||||
Losses and loss adjustment expenses | 40,887 | 29,725 | 80,080 | 54,606 |
General and administrative expenses | 21,679 | 15,267 | 39,979 | 27,158 |
Other expenses | 268 | 845 | 268 | 845 |
Intangible asset amortization | 1,500 | 1,413 | 2,999 | 2,827 |
Noncash stock compensation | 403 | 419 | 559 | 630 |
Interest expense | 467 | 425 | 875 | 852 |
Total expenses | 65,204 | 48,094 | 124,760 | 86,918 |
Gains (losses) on embedded derivatives | 3,356 | (686) | 9,592 | 1,990 |
Other income | 24 | 35 | 47 | 156 |
Income before taxes | 6,948 | 2,540 | 22,558 | 14,587 |
Income tax expense | 1,457 | 414 | 4,727 | 3,019 |
Net income | $ 5,491 | $ 2,126 | $ 17,831 | $ 11,568 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.11 | $ 0.04 | $ 0.35 | $ 0.23 |
Diluted (in dollars per share) | $ 0.11 | $ 0.04 | $ 0.35 | $ 0.23 |
Weighted average shares outstanding: | ||||
Weighted average number of shares outstanding - basic (in shares) | 51,197,111 | 51,152,979 | 51,187,509 | 51,150,881 |
Weighted average number of shares outstanding - diluted (in shares) | 51,197,533 | 51,166,587 | 51,187,720 | 51,173,204 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,491 | $ 2,126 | $ 17,831 | $ 11,568 |
Unrealized investment gains (losses): | ||||
Unrealized investment gains (losses) arising during the period | (15,470) | 2,325 | (39,274) | (6,251) |
Income tax expense (benefit) | (3,254) | 488 | (8,247) | (1,313) |
Unrealized investment gains (losses), net of tax | (12,216) | 1,837 | (31,027) | (4,938) |
Less reclassification adjustments to: | ||||
Net realized investment gains (losses) included in net realized gains (losses) | (54) | 10 | (1,081) | 23 |
Income tax expense (benefit) | (11) | 2 | (227) | 5 |
Total reclassifications included in net income, net of tax | (43) | 8 | (854) | 18 |
Other comprehensive income (loss) | (12,173) | 1,829 | (30,173) | (4,956) |
Total comprehensive income (loss) | $ (6,682) | $ 3,955 | $ (12,342) | $ 6,612 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2020 | 51,148,782 | ||||
Shareholders' equity beginning balance at Dec. 31, 2020 | $ 410,107 | $ 511 | $ 287,110 | $ 13,426 | $ 109,060 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation expense | 630 | 630 | |||
Common stock issued pursuant to equity compensation awards, net of shares repurchased (in shares) | 8,222 | ||||
Common stock issuances pursuant to equity compensation awards, net of shares repurchased | (6) | (6) | |||
Other comprehensive loss | (4,956) | (4,956) | |||
Net income | 11,568 | 11,568 | |||
Ending balance (in shares) at Jun. 30, 2021 | 51,157,004 | ||||
Shareholders' equity ending balance at Jun. 30, 2021 | 417,343 | $ 511 | 287,734 | 8,470 | 120,628 |
Beginning balance (in shares) at Mar. 31, 2021 | 51,148,782 | ||||
Shareholders' equity beginning balance at Mar. 31, 2021 | 412,975 | $ 511 | 287,321 | 6,641 | 118,502 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation expense | 419 | 419 | |||
Common stock issued pursuant to equity compensation awards, net of shares repurchased (in shares) | 8,222 | ||||
Common stock issuances pursuant to equity compensation awards, net of shares repurchased | (6) | (6) | |||
Other comprehensive loss | 1,829 | 1,829 | |||
Net income | 2,126 | 2,126 | |||
Ending balance (in shares) at Jun. 30, 2021 | 51,157,004 | ||||
Shareholders' equity ending balance at Jun. 30, 2021 | $ 417,343 | $ 511 | 287,734 | 8,470 | 120,628 |
Beginning balance (in shares) at Dec. 31, 2021 | 51,176,887 | 51,176,887 | |||
Shareholders' equity beginning balance at Dec. 31, 2021 | $ 421,909 | $ 512 | 288,623 | 4,384 | 128,390 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation expense | 559 | 559 | |||
Common stock issued pursuant to equity compensation awards, net of shares repurchased (in shares) | 25,249 | ||||
Common stock issuances pursuant to equity compensation awards, net of shares repurchased | (8) | (8) | |||
Other comprehensive loss | (30,173) | (30,173) | |||
Net income | $ 17,831 | 17,831 | |||
Ending balance (in shares) at Jun. 30, 2022 | 51,202,136 | 51,202,136 | |||
Shareholders' equity ending balance at Jun. 30, 2022 | $ 410,118 | $ 512 | 289,174 | (25,789) | 146,221 |
Beginning balance (in shares) at Mar. 31, 2022 | 51,192,196 | ||||
Shareholders' equity beginning balance at Mar. 31, 2022 | 416,397 | $ 512 | 288,771 | (13,616) | 140,730 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation expense | 403 | 403 | |||
Common stock issued pursuant to equity compensation awards, net of shares repurchased (in shares) | 9,940 | ||||
Common stock issuances pursuant to equity compensation awards, net of shares repurchased | 0 | $ 0 | 0 | ||
Other comprehensive loss | (12,173) | (12,173) | |||
Net income | $ 5,491 | 5,491 | |||
Ending balance (in shares) at Jun. 30, 2022 | 51,202,136 | 51,202,136 | |||
Shareholders' equity ending balance at Jun. 30, 2022 | $ 410,118 | $ 512 | $ 289,174 | $ (25,789) | $ 146,221 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||
Net income | $ 17,831 | $ 11,568 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 3,380 | 3,374 |
Stock compensation | 559 | 630 |
Unrealized gains on embedded derivatives | (11,036) | (3,189) |
Net losses on investments | (302) | (23) |
Unrealized losses on equity securities | 3,441 | 0 |
Bond amortization and accretion | 824 | 1,174 |
Deferred income taxes | 1,040 | (781) |
Deferred financing costs | 84 | 84 |
Changes in operating assets and liabilities: | ||
Accrued investment income | (392) | 129 |
Premiums and other receivables | (11,902) | (22,714) |
Reinsurance recoverable on paid and unpaid losses | (11,560) | (18,730) |
Prepaid reinsurance premiums | 13,952 | (13,033) |
Right of use asset | 723 | 959 |
Other assets | (5,101) | (6,623) |
Unpaid loss and loss adjustment expenses | 33,366 | 44,742 |
Unearned premiums | 8 | 36,401 |
Funds held under reinsurance agreements | 11,963 | 3,080 |
Reinsurance premiums payable | 120 | (5,388) |
Accounts payable and accrued expenses | (5,616) | (4,011) |
Lease liability | (798) | (1,038) |
Income taxes payable and receivable | (509) | (3,791) |
Net cash provided by operating activities | 40,075 | 22,820 |
Investing activities | ||
Payments for capital expenditures | (339) | (73) |
Proceeds from sale of equity method investment | 0 | 232 |
Purchase of investments, available for sale | (156,514) | (104,183) |
Proceeds from investments sold, matured or repaid | 88,641 | 38,425 |
Net cash used in investing activities | (68,212) | (65,599) |
Financing activities | ||
Shares redeemed for payroll taxes | (7) | (6) |
Principal payments on debt | (825) | (619) |
Net cash used in financing activities | (832) | (625) |
Net decrease in cash, cash equivalents and restricted cash | (28,969) | (43,404) |
Cash, cash equivalents and restricted cash – beginning of period | 129,984 | 157,234 |
Cash, cash equivalents and restricted cash – end of period | 101,015 | 113,830 |
Disaggregation of cash and restricted cash: | ||
Cash and cash equivalents | 100,716 | |
Restricted cash | 299 | |
Total cash, cash equivalents and restricted cash | 101,015 | 113,830 |
Supplemental disclosure of cash flow information: | ||
Interest | 791 | 768 |
Income taxes | 4,368 | 7,548 |
Non-cash investing and financing activity: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 281 | 31 |
Non-cash transfer of investments to settle funds held for reinsurance | 0 | 13,562 |
Non-cash transfer of investments to settle amounts held for others in accounts payable | 0 | 26,211 |
Operating cash flows from operating leases | $ 1,257 | $ 1,217 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Trean Insurance Group, Inc. (together with its wholly owned subsidiaries, the "Company") provides products and services to the specialty insurance market. Historically, the Company has focused on specialty casualty markets management believes are under-served and where the Company’s expertise allows the Company to achieve higher rates, such as niche workers' compensation markets and small- to medium-sized specialty casualty insurance programs. The Company underwrites specialty-casualty insurance products both through programs where the Company partners with other organizations ("Program Partners"), and also through Company owned managing general agencies ("Owned MGAs"). The Company also provides Program Partners with a variety of services, including issuing carrier services, claims administration, and reinsurance brokerage from which the Company generates fee-based revenues. The Company's wholly owned subsidiaries include: (i) Benchmark Holding Company, a property and casualty insurance holding company, which owns Benchmark Insurance Company ("Benchmark"), a property and casualty insurance company domiciled in the state of Kansas, American Liberty Insurance Company ("ALIC"), a property and casualty insurance company domiciled in the state of Utah, 7710 Insurance Company ("7710"), a property and casualty insurance company domiciled in the state of South Carolina and Benchmark Specialty Insurance Company ("BSIC"), a property and casualty insurance company domiciled in the state of Arkansas; (ii) Trean Compstar Holdings, LLC, a limited liability company created originally for the purchase of Compstar Insurance Services LLC, a California-based general agency; and (iii) Trean Corporation ("Trean Corp"), a reinsurance intermediary manager and a managing general agent, which consists of the following wholly owned subsidiaries: (a) Trean Reinsurance Services, LLC ("TRS"), a reinsurance intermediary broker; Benchmark Administrators LLC (BIC Admin"), a claims third-party administrator; (b) Western Integrated Care, LLC ("WIC"), a managed care organization; and (c) Westcap Insurance Services, LLC ("Westcap"), a managing general agent based in California. The accompanying condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to the Quarterly Report on Form 10-Q under the Securities Exchange Act of 1934, as amended. Accordingly, they do not contain all of the information included in the Company's annual consolidated financial statements and notes. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s condensed consolidated financial position and results of operations for the periods presented have been included. Although management believes the disclosures and information presented are adequate, these interim condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Use of estimates While preparing the condensed consolidated financial statements, the Company has made certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require extensive use of estimates include the reserves for unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables, investments, goodwill, and other intangible assets. Except for the captions on the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income, generally, the term loss(es) is used to collectively refer to both losses and LAE. Accounting pronouncements Recently adopted policies In January 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 (ASU 2020-01). This update addresses the accounting for certain equity securities upon the application or discontinuation of the equity method of accounting. Further, the update addresses scope considerations for forward contracts and purchased options on certain securities. ASU 2020-01 is effective for annual periods beginning after December 15, 2021, including interim periods thereafter. The Company adopted this standard effective January 1, 2022. Adoption of this standard did not have a material impact on the condensed consolidated financial statements. Pending policies The Company completed its initial public offering in July 2020, and is an emerging growth company as defined under federal securities laws. As such, the Company has elected to adopt pending accounting policies under the dates required for private companies. Therefore, the dates included within this section reflect the effective dates for the adoption of new accounting policies required by private companies. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (ASU 2020-03). This update represents changes to clarify and improve the codification to allow for easier application by eliminating inconsistencies and providing clarification on items such as (i) the application of fair value option disclosures; (ii) the accounting for fees related to modifications of debt; and (iii) aligning the contractual term of a net investment in a lease in accordance with ASC Topic 326, Financial Instruments - Credit Losses , and the lease term determined in accordance with ASC Topic 842, Leases . The Company adopted items (i) and (ii) effective January 1, 2020 and will adopt item (iii) on January 1, 2023. Adoption of this standard has not had, and is not expected to have, a material impact on the condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update requires financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Additionally, credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which the fair value is below the amortized cost. ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company will adopt this standard effective January 1, 2023. The Company is currently evaluating the impact of this standard on the condensed consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionsWestern Integrated CareEffective July 6, 2021, Trean Corp acquired 100% ownership of WIC for a total purchase price of $5,500, which includes $1,500 that is contingent on WIC's future earnings, as defined in the agreement. WIC is a managed care organization that offers services to workers' compensation insurers to enable employees who are injured on the job to access qualified medical treatment. The Company recorded $1,501 of goodwill and intangible assets of $3,624 associated with the business combination. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments include assets and liabilities carried at fair value. The inputs to valuation techniques used to measure fair value are prioritized into a three level hierarchy. The fair value hierarchy is as follows: Level 1 : Fair values primarily based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 : Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 : Fair values primarily based on valuations derived when one or more of the significant inputs are unobservable. With little or no observable market, the determination of fair value uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. The Company classifies the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. The following tables present the estimated fair value of the Company’s significant financial instruments. June 30, 2022 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government and government securities $ 51,678 $ — $ — $ 51,678 Foreign governments — 392 — 392 States, territories and possessions — 10,274 — 10,274 Political subdivisions of states territories and possessions — 35,925 — 35,925 Special revenue and special assessment obligations — 99,528 — 99,528 Industrial and public utilities — 102,514 — 102,514 Commercial mortgage-backed securities — 98,807 — 98,807 Residential mortgage-backed securities — 19,087 — 19,087 Other loan-backed securities — 43,830 — 43,830 Total fixed maturities 51,678 415,141 — 466,819 Equity securities 12,490 18,208 — 30,698 Total investments $ 64,168 $ 433,349 $ — $ 497,517 Embedded derivatives on funds held under reinsurance agreements $ (1,422) $ (9,342) $ — $ (10,764) Debt — 30,112 — 30,112 December 31, 2021 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government and government securities $ 2,392 $ 39,042 $ — $ 41,434 Foreign governments — 2,490 — 2,490 States, territories and possessions — 10,766 — 10,766 Political subdivisions of states, territories and possessions — 40,002 — 40,002 Special revenue and special assessment obligations — 95,991 — 95,991 Industrial and public utilities — 103,257 — 103,257 Commercial mortgage-backed securities — 118,218 — 118,218 Residential mortgage-backed securities — 17,368 — 17,368 Other loan-backed securities — 41,425 — 41,425 Hybrid securities — 110 — 110 Total fixed maturities 2,392 468,669 — 471,061 Equity securities — 969 — 969 Total investments $ 2,392 $ 469,638 $ — $ 472,030 Embedded derivatives on funds held under reinsurance agreements $ (4) $ 275 $ — $ 271 Debt — 30,938 — 30,938 Fixed maturities and equity securities: The Company, through its third-party pricing service provider, uses a variety of sources to estimate the fair value of investments such as Refinitiv (formerly Reuters), PricingDirect, ICE Data Services, and for equities, Bloomberg or S&P Capital IQ Pro. Equity securities are generally valued at the closing price on the exchange on which they are primarily traded as provided by a third-party pricing service. Fixed income securities are generally valued at an evaluated bid as provided by a third-party pricing service. Securities and other assets generally valued using third-party pricing services may also be valued at broker/dealer indications. Values obtained from third-party pricing services can utilize several market data sources for inputs such as transaction data, yield, quality, coupon rate, maturity, issue type, trading characteristics, and other market activity. To validate the reasonableness of the prices, the Company performs various qualitative and quantitative procedures such as analysis of recent trading activity, analytical review of fair values and an evaluation of the underlying pricing methodologies. Based on these procedures, the Company did not adjust the prices or quotes from the third-party pricing service. Embedded derivatives: The Company enters into funds held contracts under reinsurance agreements, which create embedded derivatives on the underlying investments. These embedded derivatives are valued based upon the unrealized gain or loss position of the funds held portfolio, which is determined consistent with other investments using third-party pricing services. To validate the reasonableness of the quoted prices, the Company performs various qualitative and quantitative procedures such as analysis of recent activity, analytical review of fair values and an evaluation of the underlying pricing methodologies. Based on these procedures, the Company did not adjust the prices or quotes from the third-party pricing service. Debt: The Company holds debt related to its secured credit facility. The Company has determined that the remaining balance of the debt reflected its fair value as this would represent the total amount to repay the debt. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Fixed income securities include bonds, asset-backed securities, and redeemable preferred securities. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available-for-sale and are carried at fair value. Equity securities primarily include common stocks, mutual funds, and non-redeemable preferred stocks, which are carried at fair value. The cost or amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company's fixed maturities investments are as follows: June 30, 2022 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and government securities $ 53,592 $ — $ (1,914) $ 51,678 Foreign governments 400 — (8) 392 States, territories and possessions 11,102 22 (850) 10,274 Political subdivisions of states, territories and possessions 39,098 77 (3,250) 35,925 Special revenue and special assessment obligations 107,939 241 (8,652) 99,528 Industrial and public utilities 106,575 98 (4,159) 102,514 Commercial mortgage-backed securities 110,538 49 (11,780) 98,807 Residential mortgage-backed securities 20,076 — (989) 19,087 Other loan-backed securities 44,880 2 (1,052) 43,830 Hybrid securities 5,344 — (560) 4,784 Total fixed maturities available for sale $ 499,544 $ 489 $ (33,214) $ 466,819 December 31, 2021 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and government securities $ 41,490 $ 113 $ (169) $ 41,434 Foreign governments 2,500 — (10) 2,490 States, territories and possessions 10,593 189 (16) 10,766 Political subdivisions of states, territories and possessions 39,170 975 (143) 40,002 Special revenue and special assessment obligations 93,664 2,920 (593) 95,991 Industrial and public utilities 100,774 2,835 (352) 103,257 Commercial mortgage-backed securities 119,378 591 (1,751) 118,218 Residential mortgage-backed securities 16,549 843 (24) 17,368 Other loan-backed securities 41,236 248 (59) 41,425 Hybrid securities 105 5 — 110 Total fixed maturities available for sale $ 465,459 $ 8,719 $ (3,117) $ 471,061 The following table illustrates the Company’s gross unrealized losses and fair value of fixed maturities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2022 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities: U.S. government and government securities $ 50,142 $ (1,826) $ 1,536 $ (88) $ 51,678 $ (1,914) Foreign governments 392 (8) — — 392 (8) States, territories and possessions 7,811 (767) 242 (83) 8,053 (850) Political subdivisions of states, territories and possessions 26,849 (3,220) 269 (30) 27,118 (3,250) Special revenue and special assessment obligations 73,580 (7,989) 3,614 (663) 77,194 (8,652) Industrial and public utilities 72,164 (3,800) 3,039 (359) 75,203 (4,159) Commercial mortgage-backed securities 58,330 (5,634) 36,500 (6,146) 94,830 (11,780) Residential mortgage-backed securities 19,088 (989) — — 19,088 (989) Other loan-backed securities 35,611 (847) 4,233 (205) 39,844 (1,052) Total fixed maturities $ 348,752 $ (25,640) $ 49,433 $ (7,574) $ 398,185 $ (33,214) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities: U.S. government and government securities $ 26,935 $ (168) $ 23 $ (1) $ 26,958 $ (169) Foreign governments 2,490 (10) — — 2,490 (10) States, territories and possessions 935 (16) — — 935 (16) Political subdivisions of states, territories and possessions 11,115 (143) — — 11,115 (143) Special revenue and special assessment obligations 29,917 (593) — — 29,917 (593) Industrial and public utilities 24,042 (286) 1,058 (66) 25,100 (352) Commercial mortgage-backed securities 80,126 (1,565) 6,212 (186) 86,338 (1,751) Residential mortgage-backed securities 4,539 (24) — — 4,539 (24) Other loan-backed securities 20,153 (36) 2,477 (23) 22,630 (59) Total fixed maturities $ 200,252 $ (2,841) $ 9,770 $ (276) $ 210,022 $ (3,117) The unrealized losses on the Company’s available for sale securities as of June 30, 2022 and December 31, 2021 were primarily attributable to an increase in interest rates, which predominantly impacted fixed maturities acquired since the second quarter of 2020. The amortized cost and estimated fair value of fixed maturities as of June 30, 2022, by contractual maturity, are as follows: Cost or Amortized Cost Fair Value Available for sale: Due in one year or less $ 33,743 $ 33,635 Due after one year but before five years 134,093 129,546 Due after five years but before ten years 90,804 84,479 Due after ten years 65,410 57,435 Commercial mortgage-backed securities 110,538 98,807 Residential mortgage-backed securities 20,076 19,087 Other loan-backed securities 44,880 43,830 Total $ 499,544 $ 466,819 Actual maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on investments included in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed maturities: Gains $ 4 $ 18 $ 113 $ 98 Losses (58) (8) (1,194) (75) Total fixed maturities (54) 10 (1,081) 23 Funds held investments: Gains 11 — 19 — Losses (1) — (17) — Total funds held investments 10 — 2 — Equity securities: Equity method investments: Gains 1,400 — 1,400 — Losses (7) — (19) — Total equity securities 1,393 — 1,381 — Total net realized gains $ 1,349 $ 10 $ 302 $ 23 Net investment income (loss) consists of the following for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed maturities $ 1,807 $ 1,577 $ 3,561 $ 3,137 Income on funds held investments 774 519 1,442 1,199 Equity securities 456 6 610 36 Unrealized losses on equity securities (3,441) — (3,441) — Interest earned on cash and short-term investments 13 1 13 3 Net investment income (loss) $ (391) $ 2,103 $ 2,185 $ 4,375 Net realized and unrealized gains (losses) on equity securities recognized during the three and six months ended June 30, 2022 and 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Equity securities: Net realized gains (losses) on sales of equity securities $ 1,393 $ — $ 1,381 $ — Change in net unrealized gains (losses) of equity securities (3,441) (2) (3,441) 15 Net realized and unrealized gains (losses) on equity securities $ (2,048) $ (2) $ (2,060) $ 15 The net unrealized gains (losses) on equity securities still held as of June 30, 2022, and included in investment income were $(3,435) and $(3,423) for the three and six months ended June 30, 2022, respectively. The net unrealized gains (losses) on equity securities still held as of June 30, 2021, and included in investment income were $(2) and $15 for the three and six months ended June 30, 2021, respectively. Embedded derivatives The Company enters into funds held contracts under reinsurance agreements which create embedded derivatives that are measured at fair value. The embedded derivatives within the Company's funds held under reinsurance agreements relate to a total return swap on the underlying investments. These embedded derivatives had no impact on total operating, investing, and financing activities as presented on the Company’s condensed consolidated statements of cash flows during the six months ended June 30, 2022 and 2021. Total funds held under reinsurance agreements include the following: June 30, 2022 December 31, 2021 Funds held under reinsurance agreements, at cost $ 211,102 $ 199,139 Embedded derivatives, at fair value (10,764) 271 Total funds held under reinsurance agreements $ 200,338 $ 199,410 Gains (losses) on embedded derivatives consists of the following for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Change in fair value of embedded derivatives $ 4,140 $ (167) $ 11,036 $ 3,189 Effect of net investment income on funds held investments (774) (519) (1,442) (1,199) Effect of realized gains on funds held investments (10) — (2) — Total gains (losses) on embedded derivatives $ 3,356 $ (686) $ 9,592 $ 1,990 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments On January 3, 2020, the Company sold 15% of its previous 25% ownership in Trean Intermediaries ("TRI") for cash proceeds of $3,000, resulting in a remaining ownership interest of 10%. The Company sold all of its remaining ownership interest in TRI during the third quarter of 2021 for $1,888. The sale agreement included an earn-out that would increase the amount received based on TRI's future performance. The Company received an earn-out payment of $1,400, which was included in net realized gains (losses) on the consolidated statements of operations for the three and six months ended June 30, 2022. The Company recorded $50 of revenue for the three months ended June 30, 2022 and 2021, and $100 of revenue for the six months ended June 30, 2022 and 2021 for consulting services provided to TRI. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following: June 30, 2022 December 31, 2021 Secured credit facility $ 30,112 $ 30,938 Less: unamortized deferred financing costs (491) (576) Net debt $ 29,621 $ 30,362 Secured Credit Facility On July 16, 2020, the Company entered into a new Amended and Restated Credit Agreement that, among other things, extended the Company's credit facility for a period of five years through May 26, 2025, and increased its term loan facility by $11,707, resulting in a total term loan debt amount of $33,000 and a revolving credit facility of $2,000 at the time of closing. The loan has a variable interest rate of the London Interbank Offer Rate ("LIBOR") plus 4.50%, which was 5.51% and 4.64% as of June 30, 2022 and December 31, 2021, respectively. The outstanding principal balance of the loan is to be repaid in quarterly installments, which escalate from $206 to $825. All equity securities of the subsidiaries of the Company (other than Benchmark Holding Company and its subsidiaries) have been pledged as collateral. The Company recorded $425 and $383 of interest expense with its credit facility during the three months ended June 30, 2022 and 2021, respectively. During the six months ended June 30, 2022 and 2021, the Company recorded $791 and $768 of interest expense, respectively, associated with its credit facility. The terms of the credit facility require the Company to maintain certain financial covenants and ratios. The Company was in compliance with all covenants and ratios as of June 30, 2022. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue from contracts with customers, included in other revenue, includes brokerage, management, third-party administrative, and consulting and other fee-based revenue. Revenue from contracts with customers was $1,804 and $5,005 for the three and six months ended June 30, 2022, respectively, compared to $1,229 and $5,884 for the three and six months ended June 30, 2021, respectively. The following table presents the revenues recognized from contracts with customers included in the condensed consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Brokerage $ 1,222 $ 770 $ 3,815 $ 4,225 Managing general agent fees 84 30 168 319 Third-party administrator fees 249 376 572 754 Consulting and other fee-based revenue 249 53 450 586 Total revenue from contracts with customers $ 1,804 $ 1,229 $ 5,005 $ 5,884 The Company did not have any contract liabilities as of June 30, 2022 or December 31, 2021. The following table provides information related to the contract assets from contracts with customers. Contract assets are included within other assets on the condensed consolidated balance sheets. June 30, 2022 December 31, 2021 Contract assets $ 4,368 $ 3,353 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense for interim periods is measured using an estimated effective income tax rate for the annual period. The Company's effective tax rate was 21.0% for the three and six months ended months ended June 30, 2022.The Company’s effective tax rate was 16.3% and 20.7% for the three and six months ended June 30, 2021, respectively, which differed from the statutory rate primarily due the impact of tax-exempt municipal income on the Company's investments. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expense | 6 Months Ended |
Jun. 30, 2022 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expense | Liability for Unpaid Losses and Loss Adjustment Expense The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Unpaid losses and LAE reserves at beginning of period $ 550,981 $ 485,532 $ 544,320 $ 457,817 Less losses ceded through reinsurance (364,279) (353,158) (369,008) (335,655) Net unpaid losses and LAE at beginning of period 186,702 132,374 175,312 122,162 Incurred losses and LAE related to: Current period 41,304 30,178 80,872 55,085 Prior period (417) (453) (792) (479) Total incurred losses and LAE 40,887 29,725 80,080 54,606 Paid losses and LAE, net of reinsurance, related to: Current period 16,304 8,950 21,698 12,473 Prior period 12,873 9,190 35,282 20,336 Total paid losses and LAE 29,177 18,140 56,980 32,809 Net unpaid losses and LAE at end of period 198,412 143,959 198,412 143,959 Plus losses ceded through reinsurance 379,274 358,601 379,274 358,601 Unpaid losses and LAE reserves at end of period $ 577,686 $ 502,560 $ 577,686 $ 502,560 As a result of changes in estimates of insured events in prior years, the provision for unpaid losses and LAE decreased by approximately $417 and $792 for the three and six months ended June 30, 2022, respectively, and $453 and $479 for the three and six months ended June 30, 2021. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company utilizes reinsurance contracts to reduce its exposure to losses in all aspects of its insurance business. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not relieve the Company from its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial strength of potential reinsurers and continually monitors the financial condition of its reinsurers. A summary of the impact of ceded reinsurance on premiums written and premiums earned is as follows: Three Months Ended June 30, 2022 2021 Gross Assumed Ceded Net Gross Assumed Ceded Net Written premiums $ 150,519 $ 3,670 $ (85,519) $ 68,670 $ 153,049 $ 3,502 $ (101,306) $ 55,245 Earned premiums 154,556 2,586 (91,132) 66,010 136,362 2,262 (90,681) 47,943 Six Months Ended June 30, 2022 2021 Gross Assumed Ceded Net Gross Assumed Ceded Net Written premiums $ 309,886 $ 5,706 $ (171,444) $ 144,148 $ 297,947 $ 5,334 $ (190,790) $ 112,491 Earned premiums 310,760 4,921 (185,494) 130,187 262,766 4,157 (177,846) 89,077 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company's leases consist of operating leases for office space and equipment. The Company determines if an arrangement is a lease at its inception. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Some of the Company's leases include options to extend the term, which are only included in the lease liability and right-of-use asset calculation when it is reasonably certain the Company will exercise an option. The Company's leases have remaining terms ranging from one month to 57 months, some of which have options to extend the lease for up to an additional 60 months. As of June 30, 2022, the lease liability and right-of-use assets did not include the impact of any lease extension options as it is not reasonably certain that the Company will exercise the extension options. Total lease expense for the three months ended June 30, 2022 was $623, inclusive of $27 in variable lease expense. Total lease expense for the three months ended June 30, 2021 was $597, inclusive of $18 in variable lease expense. The Company also sublets some of its leased office space and recorded $22 and $23 of sublease income for the three months ended June 30, 2022 and 2021, respectively, which is included in other income on the condensed consolidated statements of operations. Total lease expense for the six months ended June 30, 2022 was $1,240, inclusive of $51 in variable lease expense. Total lease expense for the six months ended June 30, 2021 was $1,205, inclusive of $27 in variable lease expense. The Company also sublets some of its leased office space and recorded $43 and $41 of sublease income for the six months ended June 30, 2022 and 2021, respectively, which is included in other income on the condensed consolidated statement of operations. Supplemental balance sheet information, the weighted average remaining lease term and weighted average discount rate related to leases were as follows: June 30, 2022 December 31, 2021 Right of use asset $ 3,807 $ 4,530 Lease liability $ 4,178 $ 4,976 Weighted average remaining lease term 2.13 years 2.42 years Weighted average discount rate 5.97 % 6.33 % Future maturities of lease liabilities as of June 30, 2022 are as follows: Operating Leases 2022 $ 1,245 2023 1,928 2024 1,063 2025 163 2026 41 Total lease payments 4,442 Less: imputed interest (264) Total lease liabilities $ 4,178 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity Common Stock The Company currently has authorized 600,000,000 shares of common stock with a par value of $0.01. As of June 30, 2022 and December 31, 2021, there were 51,202,136 and 51,176,887 shares of common stock issued and outstanding, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares outstanding during reported periods. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during reported periods and is calculated using the treasury stock method. The following table presents the calculation of basic and diluted EPS of common stock: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income — basic and diluted $ 5,491 $ 2,126 $ 17,831 $ 11,568 Weighted average number of shares outstanding — basic 51,197,111 51,152,979 51,187,509 51,150,881 Effect of dilutive securities: Restricted stock units 422 13,608 211 22,323 Dilutive shares 422 13,608 211 22,323 Weighted average number of shares outstanding — diluted 51,197,533 51,166,587 51,187,720 51,173,204 Earnings per share: Basic $ 0.11 $ 0.04 $ 0.35 $ 0.23 Diluted $ 0.11 $ 0.04 $ 0.35 $ 0.23 At June 30, 2022 and June 30, 2021, there were restricted stock units and stock options totaling 595,852 and 284,059, respectively, excluded from the computation of diluted weighted-average shares outstanding because their inclusion would have been anti-dilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ (13,616) $ 6,641 $ 4,384 $ 13,426 Other comprehensive gain (loss), net of tax: Unrealized investment gains (losses): Unrealized investment gains (losses) arising during the period (15,470) 2,325 (39,274) (6,251) Income tax expense (benefit) (3,254) 488 (8,247) (1,313) Unrealized investment gains (losses), net of tax (12,216) 1,837 (31,027) (4,938) Less reclassification adjustments to: Net realized investment gains (losses) included in net realized gains (losses) (54) 10 (1,081) 23 Income tax expense (benefit) (11) 2 (227) 5 Total reclassifications included in net income, net of tax (43) 8 (854) 18 Other comprehensive income (loss) (12,173) 1,829 (30,173) (4,956) Balance at end of period $ (25,789) $ 8,470 $ (25,789) $ 8,470 |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation As of June 30, 2022, the Company has one incentive plan, the Trean Insurance Group, Inc. 2020 Omnibus Incentive Plan, (the "2020 Omnibus Plan"). The purposes of the 2020 Omnibus Plan are to provide additional incentive to selected officers, employees, non-employee directors, independent contractors, and consultants of the Company whose contributions are essential to the growth and success of the business of the Company and its affiliates, to strengthen the commitment and motivate such individuals to faithfully and diligently perform their responsibilities and to attract competent and dedicated individuals whose efforts will result in the long-term growth and profitability of the Company and its affiliates. The 2020 Omnibus Plan is administered by the Compensation, Nominating, and Corporate Governance Committee of the Company's board of directors and provides for the issuance of up to 5,058,085 shares of the Company's common stock granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses, other stock awards, or any combination of the foregoing. Stock Options Stock compensation expense related to stock option awards was $45 and $34 for the three months ended June 30, 2022 and 2021, respectively, and $96 and $69 for the six months ended June 30, 2022 and 2021, respectively. Actual forfeitures are recognized as they occur. Employee stock option awards granted set forth, among other things, the option exercise price, the option term, provisions regarding option exercisability, and whether the option is intended to be an incentive stock option ("ISO") or a nonqualified stock option ("NQ"). Stock options may be granted to employees at such exercise prices as the Company’s board of directors may determine but not less than 100% of the fair market value of the underlying stock as of the date of grant. Employee options vest one third annually over a period of three years and have contractual terms of ten years from the date of grant. The fair value of each time-based vesting option award is estimated on the date of grant using the Black-Scholes option pricing model that uses assumptions noted in the following table. The Company’s expected volatility for the period was based on a weighted average expected volatility of an industry peer group of insurance companies of similar size, life cycle, and lines of business. Expected term is calculated using the simplified method taking into consideration the option's contractual life and vesting terms. The Company’s stock option grants qualify as plain vanilla options and as such the Company uses the simplified method in estimating its expected option term as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its common shares have been publicly traded. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yields were not used in the fair value computations as the Company has never declared or paid dividends on its common stock and currently intends to retain earnings for use in operations. Fiscal 2022 Fiscal 2021 Expected volatility 29.8% 29.8% Expected term 6 years 6 years Risk-free interest rate 1.92% 1.32% A summary of the status of the Company's stock option activity as of June 30, 2022 and changes during the six-month period then ended are as follows: Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Weighted Average Remaining Contract Term Balance outstanding, December 31, 2021 120,187 $ 16.06 Granted 64,694 $ 7.04 Forfeited or cancelled (13,125) $ 16.07 Balance outstanding, June 30, 2022 171,756 $ 12.66 $ — 8.64 years Balance vested and exercisable, June 30, 2022 38,500 $ 16.04 $ — 8.33 years The weighted average grant-date fair value of options granted in the six months ended June 30, 2022 and 2021 was $2.30 and $5.49, respectively. As of June 30, 2022, total unrecognized compensation cost related to stock options was $363 and is expected to be recognized over a weighted average period of approximately 1.1 years. Restricted Stock Units Compensation expense relating to restricted stock unit grants was $358 and $385 for the three months ended June 30, 2022 and 2021, respectively, and $463 and $561 for the six months ended June 30, 2022 and 2021, respectively. Actual forfeitures are recognized as they occur. As of June 30, 2022, there was $2,906 of total unrecognized compensation cost related to non-vested restricted stock unit grants, which is expected to be recognized over a weighted average life of 1.9 years. The total fair value of restricted stock units vested during the three and six months ended June 30, 2022 was $67 and $144, respectively, and $136 during the three and six months ended June 30, 2021. The Company has granted time-based restricted stock units ("RSUs"), performance stock units ("PSUs"), and market-based stock units ("MSUs") to certain key employees as part of the Company's long-term incentive program. The estimated fair value of restricted stock units is based on the grant date closing price of the Company's common stock for time-based and performance-based vesting awards. A Monte Carlo valuation model is used to estimate the fair value for market-based vesting awards. RSUs generally vest in three equal annual installments beginning one year from the grant date and are amortized as compensation expense over the three-year vesting period. The Company has also granted time-based restricted stock units to non-employee directors as part of the Company's annual director compensation program. Each time-based restricted stock grant to non-employee directors vests on the day immediately preceding the next annual meeting of stockholders following the date of grant. The grants are amortized as director compensation expense over the vesting period. The Company recognizes compensation expense on PSUs ratably over the requisite performance period of the award and to the extent management views the performance goal attainment as probable. The Company recognizes compensation expense on MSUs ratably over the requisite performance period of the award. For the 2022 and 2021 fiscal year, the Company granted PSUs to certain key employees pursuant to the Company's 2020 Omnibus Plan. The number of shares earned is based on the Company’s achievement of pre-established target threshold goals for total gross written premiums over a three-year performance measurement period. The performance goals allow for a payout ranging from 0% to 200% of the target award. If performance satisfies minimum requirements to result in shares of Company common stock being awarded, the number of shares will be determined between 50% and 200% of target thresholds, as defined in the applicable award agreements. Any earned PSU will vest if the employee’s service has been continuous through the vesting date. Any PSU not earned because of failure to achieve the minimum performance goal at the end of the performance period will be immediately forfeited. The grant date fair value of the PSUs was determined based on the grant date closing price of the Company’s stock. For the 2022 and 2021 fiscal year, the Company granted MSUs to certain key employees pursuant to the Company's 2020 Omnibus Plan. The number of restricted stock units earned is based on the Company’s cumulative total shareholder return ("TSR"), as defined in the applicable award agreement, over a three-year performance measurement period. If TSR satisfies minimum requirements to result in shares being awarded, the number of shares will be determined between 50% and 200% shown in the table below. Any MSU not earned because of failure to achieve the minimum performance goal at the end of the performance period will be immediately forfeited. Grant date fair values were determined using a Monte Carlo valuation model based on the following assumptions: Fiscal 2022 Fiscal 2021 Total grant date fair value $ 391 $ 845 Total grant date fair value per share $ 6.04 $ 13.92 Expected volatility 40.0 % 35.0 % Weighted average expected life 2.81 years 2.77 years Risk-free interest rate 1.79 % 0.27 % The percent of the target MSU that will be earned based on the Company’s TSR is as follows: Cumulative TSR % Fiscal 2022 Fiscal 2021 Percent of Units Vested Below 29.2% Below 25.1% 0% 29.2% 25.1% 50% 52.1% 47.2% 100% 74.9% and above 69.3% and above 200% A summary of the status of the Company’s non-vested restricted stock unit activity as of June 30, 2022 and changes during the six-month period then ended is as follows: RSUs MSUs PSUs Total Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested outstanding, December 31, 2021 117,109 $ 15.53 50,861 $ 13.92 101,748 $ 17.50 269,718 $ 15.97 Granted 87,308 $ 6.88 64,709 $ 6.04 64,693 $ 7.04 216,710 $ 6.88 Vested (26,901) $ 14.81 — $ — — $ — (26,901) $ 14.81 Forfeited or cancelled (10,313) $ 16.42 (7,038) $ 13.92 (14,080) $ 17.50 (31,431) $ 16.34 Non-vested outstanding, June 30, 2022 167,203 $ 11.08 108,532 $ 9.22 152,361 $ 13.06 428,096 $ 11.31 |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of estimates | Use of estimates While preparing the condensed consolidated financial statements, the Company has made certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require extensive use of estimates include the reserves for unpaid losses and loss adjustment expenses ("LAE"), reinsurance recoverables, investments, goodwill, and other intangible assets. Except for the captions on the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income, generally, the term loss(es) is used to collectively refer to both losses and LAE. |
Accounting pronouncements | Accounting pronouncements Recently adopted policies In January 2020, the Financial Accounting Standards Board ("FASB") issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 (ASU 2020-01). This update addresses the accounting for certain equity securities upon the application or discontinuation of the equity method of accounting. Further, the update addresses scope considerations for forward contracts and purchased options on certain securities. ASU 2020-01 is effective for annual periods beginning after December 15, 2021, including interim periods thereafter. The Company adopted this standard effective January 1, 2022. Adoption of this standard did not have a material impact on the condensed consolidated financial statements. Pending policies The Company completed its initial public offering in July 2020, and is an emerging growth company as defined under federal securities laws. As such, the Company has elected to adopt pending accounting policies under the dates required for private companies. Therefore, the dates included within this section reflect the effective dates for the adoption of new accounting policies required by private companies. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments (ASU 2020-03). This update represents changes to clarify and improve the codification to allow for easier application by eliminating inconsistencies and providing clarification on items such as (i) the application of fair value option disclosures; (ii) the accounting for fees related to modifications of debt; and (iii) aligning the contractual term of a net investment in a lease in accordance with ASC Topic 326, Financial Instruments - Credit Losses , and the lease term determined in accordance with ASC Topic 842, Leases . The Company adopted items (i) and (ii) effective January 1, 2020 and will adopt item (iii) on January 1, 2023. Adoption of this standard has not had, and is not expected to have, a material impact on the condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). This update requires financial assets measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Additionally, credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses, with the amount of the allowance limited to the amount by which the fair value is below the amortized cost. ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company will adopt this standard effective January 1, 2023. The Company is currently evaluating the impact of this standard on the condensed consolidated financial statements. |
Fair value measurements | Fair Value Measurements The Company’s financial instruments include assets and liabilities carried at fair value. The inputs to valuation techniques used to measure fair value are prioritized into a three level hierarchy. The fair value hierarchy is as follows: Level 1 : Fair values primarily based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 : Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 : Fair values primarily based on valuations derived when one or more of the significant inputs are unobservable. With little or no observable market, the determination of fair value uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Options | The following tables present the estimated fair value of the Company’s significant financial instruments. June 30, 2022 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government and government securities $ 51,678 $ — $ — $ 51,678 Foreign governments — 392 — 392 States, territories and possessions — 10,274 — 10,274 Political subdivisions of states territories and possessions — 35,925 — 35,925 Special revenue and special assessment obligations — 99,528 — 99,528 Industrial and public utilities — 102,514 — 102,514 Commercial mortgage-backed securities — 98,807 — 98,807 Residential mortgage-backed securities — 19,087 — 19,087 Other loan-backed securities — 43,830 — 43,830 Total fixed maturities 51,678 415,141 — 466,819 Equity securities 12,490 18,208 — 30,698 Total investments $ 64,168 $ 433,349 $ — $ 497,517 Embedded derivatives on funds held under reinsurance agreements $ (1,422) $ (9,342) $ — $ (10,764) Debt — 30,112 — 30,112 December 31, 2021 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government and government securities $ 2,392 $ 39,042 $ — $ 41,434 Foreign governments — 2,490 — 2,490 States, territories and possessions — 10,766 — 10,766 Political subdivisions of states, territories and possessions — 40,002 — 40,002 Special revenue and special assessment obligations — 95,991 — 95,991 Industrial and public utilities — 103,257 — 103,257 Commercial mortgage-backed securities — 118,218 — 118,218 Residential mortgage-backed securities — 17,368 — 17,368 Other loan-backed securities — 41,425 — 41,425 Hybrid securities — 110 — 110 Total fixed maturities 2,392 468,669 — 471,061 Equity securities — 969 — 969 Total investments $ 2,392 $ 469,638 $ — $ 472,030 Embedded derivatives on funds held under reinsurance agreements $ (4) $ 275 $ — $ 271 Debt — 30,938 — 30,938 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The cost or amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company's fixed maturities investments are as follows: June 30, 2022 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and government securities $ 53,592 $ — $ (1,914) $ 51,678 Foreign governments 400 — (8) 392 States, territories and possessions 11,102 22 (850) 10,274 Political subdivisions of states, territories and possessions 39,098 77 (3,250) 35,925 Special revenue and special assessment obligations 107,939 241 (8,652) 99,528 Industrial and public utilities 106,575 98 (4,159) 102,514 Commercial mortgage-backed securities 110,538 49 (11,780) 98,807 Residential mortgage-backed securities 20,076 — (989) 19,087 Other loan-backed securities 44,880 2 (1,052) 43,830 Hybrid securities 5,344 — (560) 4,784 Total fixed maturities available for sale $ 499,544 $ 489 $ (33,214) $ 466,819 December 31, 2021 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and government securities $ 41,490 $ 113 $ (169) $ 41,434 Foreign governments 2,500 — (10) 2,490 States, territories and possessions 10,593 189 (16) 10,766 Political subdivisions of states, territories and possessions 39,170 975 (143) 40,002 Special revenue and special assessment obligations 93,664 2,920 (593) 95,991 Industrial and public utilities 100,774 2,835 (352) 103,257 Commercial mortgage-backed securities 119,378 591 (1,751) 118,218 Residential mortgage-backed securities 16,549 843 (24) 17,368 Other loan-backed securities 41,236 248 (59) 41,425 Hybrid securities 105 5 — 110 Total fixed maturities available for sale $ 465,459 $ 8,719 $ (3,117) $ 471,061 |
Schedule of Continuous Unrealized Loss Position | The following table illustrates the Company’s gross unrealized losses and fair value of fixed maturities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2022 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities: U.S. government and government securities $ 50,142 $ (1,826) $ 1,536 $ (88) $ 51,678 $ (1,914) Foreign governments 392 (8) — — 392 (8) States, territories and possessions 7,811 (767) 242 (83) 8,053 (850) Political subdivisions of states, territories and possessions 26,849 (3,220) 269 (30) 27,118 (3,250) Special revenue and special assessment obligations 73,580 (7,989) 3,614 (663) 77,194 (8,652) Industrial and public utilities 72,164 (3,800) 3,039 (359) 75,203 (4,159) Commercial mortgage-backed securities 58,330 (5,634) 36,500 (6,146) 94,830 (11,780) Residential mortgage-backed securities 19,088 (989) — — 19,088 (989) Other loan-backed securities 35,611 (847) 4,233 (205) 39,844 (1,052) Total fixed maturities $ 348,752 $ (25,640) $ 49,433 $ (7,574) $ 398,185 $ (33,214) December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed maturities: U.S. government and government securities $ 26,935 $ (168) $ 23 $ (1) $ 26,958 $ (169) Foreign governments 2,490 (10) — — 2,490 (10) States, territories and possessions 935 (16) — — 935 (16) Political subdivisions of states, territories and possessions 11,115 (143) — — 11,115 (143) Special revenue and special assessment obligations 29,917 (593) — — 29,917 (593) Industrial and public utilities 24,042 (286) 1,058 (66) 25,100 (352) Commercial mortgage-backed securities 80,126 (1,565) 6,212 (186) 86,338 (1,751) Residential mortgage-backed securities 4,539 (24) — — 4,539 (24) Other loan-backed securities 20,153 (36) 2,477 (23) 22,630 (59) Total fixed maturities $ 200,252 $ (2,841) $ 9,770 $ (276) $ 210,022 $ (3,117) |
Summary of Investments by Contractual Maturity | The amortized cost and estimated fair value of fixed maturities as of June 30, 2022, by contractual maturity, are as follows: Cost or Amortized Cost Fair Value Available for sale: Due in one year or less $ 33,743 $ 33,635 Due after one year but before five years 134,093 129,546 Due after five years but before ten years 90,804 84,479 Due after ten years 65,410 57,435 Commercial mortgage-backed securities 110,538 98,807 Residential mortgage-backed securities 20,076 19,087 Other loan-backed securities 44,880 43,830 Total $ 499,544 $ 466,819 |
Summary of Realized Gain (Loss) on Investments | Realized gains and losses on investments included in the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed maturities: Gains $ 4 $ 18 $ 113 $ 98 Losses (58) (8) (1,194) (75) Total fixed maturities (54) 10 (1,081) 23 Funds held investments: Gains 11 — 19 — Losses (1) — (17) — Total funds held investments 10 — 2 — Equity securities: Equity method investments: Gains 1,400 — 1,400 — Losses (7) — (19) — Total equity securities 1,393 — 1,381 — Total net realized gains $ 1,349 $ 10 $ 302 $ 23 |
Summary of Net Investment Income | Net investment income (loss) consists of the following for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed maturities $ 1,807 $ 1,577 $ 3,561 $ 3,137 Income on funds held investments 774 519 1,442 1,199 Equity securities 456 6 610 36 Unrealized losses on equity securities (3,441) — (3,441) — Interest earned on cash and short-term investments 13 1 13 3 Net investment income (loss) $ (391) $ 2,103 $ 2,185 $ 4,375 |
Summary of Unrealized Gain (Loss) on Investments | Net realized and unrealized gains (losses) on equity securities recognized during the three and six months ended June 30, 2022 and 2021 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Equity securities: Net realized gains (losses) on sales of equity securities $ 1,393 $ — $ 1,381 $ — Change in net unrealized gains (losses) of equity securities (3,441) (2) (3,441) 15 Net realized and unrealized gains (losses) on equity securities $ (2,048) $ (2) $ (2,060) $ 15 |
Schedule of Funds Held Under Reinsurance Agreements | Total funds held under reinsurance agreements include the following: June 30, 2022 December 31, 2021 Funds held under reinsurance agreements, at cost $ 211,102 $ 199,139 Embedded derivatives, at fair value (10,764) 271 Total funds held under reinsurance agreements $ 200,338 $ 199,410 |
Summary of Embedded Derivatives, Gain (Loss) | Gains (losses) on embedded derivatives consists of the following for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Change in fair value of embedded derivatives $ 4,140 $ (167) $ 11,036 $ 3,189 Effect of net investment income on funds held investments (774) (519) (1,442) (1,199) Effect of realized gains on funds held investments (10) — (2) — Total gains (losses) on embedded derivatives $ 3,356 $ (686) $ 9,592 $ 1,990 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following: June 30, 2022 December 31, 2021 Secured credit facility $ 30,112 $ 30,938 Less: unamortized deferred financing costs (491) (576) Net debt $ 29,621 $ 30,362 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents the revenues recognized from contracts with customers included in the condensed consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Brokerage $ 1,222 $ 770 $ 3,815 $ 4,225 Managing general agent fees 84 30 168 319 Third-party administrator fees 249 376 572 754 Consulting and other fee-based revenue 249 53 450 586 Total revenue from contracts with customers $ 1,804 $ 1,229 $ 5,005 $ 5,884 |
Schedule of Contract with Customer, Contract Assets | The following table provides information related to the contract assets from contracts with customers. Contract assets are included within other assets on the condensed consolidated balance sheets. June 30, 2022 December 31, 2021 Contract assets $ 4,368 $ 3,353 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Losses and Loss Adjustment Expense | The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Unpaid losses and LAE reserves at beginning of period $ 550,981 $ 485,532 $ 544,320 $ 457,817 Less losses ceded through reinsurance (364,279) (353,158) (369,008) (335,655) Net unpaid losses and LAE at beginning of period 186,702 132,374 175,312 122,162 Incurred losses and LAE related to: Current period 41,304 30,178 80,872 55,085 Prior period (417) (453) (792) (479) Total incurred losses and LAE 40,887 29,725 80,080 54,606 Paid losses and LAE, net of reinsurance, related to: Current period 16,304 8,950 21,698 12,473 Prior period 12,873 9,190 35,282 20,336 Total paid losses and LAE 29,177 18,140 56,980 32,809 Net unpaid losses and LAE at end of period 198,412 143,959 198,412 143,959 Plus losses ceded through reinsurance 379,274 358,601 379,274 358,601 Unpaid losses and LAE reserves at end of period $ 577,686 $ 502,560 $ 577,686 $ 502,560 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Summary of Effects of Reinsurance | A summary of the impact of ceded reinsurance on premiums written and premiums earned is as follows: Three Months Ended June 30, 2022 2021 Gross Assumed Ceded Net Gross Assumed Ceded Net Written premiums $ 150,519 $ 3,670 $ (85,519) $ 68,670 $ 153,049 $ 3,502 $ (101,306) $ 55,245 Earned premiums 154,556 2,586 (91,132) 66,010 136,362 2,262 (90,681) 47,943 Six Months Ended June 30, 2022 2021 Gross Assumed Ceded Net Gross Assumed Ceded Net Written premiums $ 309,886 $ 5,706 $ (171,444) $ 144,148 $ 297,947 $ 5,334 $ (190,790) $ 112,491 Earned premiums 310,760 4,921 (185,494) 130,187 262,766 4,157 (177,846) 89,077 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information, the weighted average remaining lease term and weighted average discount rate related to leases were as follows: June 30, 2022 December 31, 2021 Right of use asset $ 3,807 $ 4,530 Lease liability $ 4,178 $ 4,976 Weighted average remaining lease term 2.13 years 2.42 years Weighted average discount rate 5.97 % 6.33 % |
Schedule of Future Maturities of Lease Liabilities | Future maturities of lease liabilities as of June 30, 2022 are as follows: Operating Leases 2022 $ 1,245 2023 1,928 2024 1,063 2025 163 2026 41 Total lease payments 4,442 Less: imputed interest (264) Total lease liabilities $ 4,178 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted EPS of common stock: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income — basic and diluted $ 5,491 $ 2,126 $ 17,831 $ 11,568 Weighted average number of shares outstanding — basic 51,197,111 51,152,979 51,187,509 51,150,881 Effect of dilutive securities: Restricted stock units 422 13,608 211 22,323 Dilutive shares 422 13,608 211 22,323 Weighted average number of shares outstanding — diluted 51,197,533 51,166,587 51,187,720 51,173,204 Earnings per share: Basic $ 0.11 $ 0.04 $ 0.35 $ 0.23 Diluted $ 0.11 $ 0.04 $ 0.35 $ 0.23 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income (loss) for unrealized gains and losses on available-for-sale securities: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ (13,616) $ 6,641 $ 4,384 $ 13,426 Other comprehensive gain (loss), net of tax: Unrealized investment gains (losses): Unrealized investment gains (losses) arising during the period (15,470) 2,325 (39,274) (6,251) Income tax expense (benefit) (3,254) 488 (8,247) (1,313) Unrealized investment gains (losses), net of tax (12,216) 1,837 (31,027) (4,938) Less reclassification adjustments to: Net realized investment gains (losses) included in net realized gains (losses) (54) 10 (1,081) 23 Income tax expense (benefit) (11) 2 (227) 5 Total reclassifications included in net income, net of tax (43) 8 (854) 18 Other comprehensive income (loss) (12,173) 1,829 (30,173) (4,956) Balance at end of period $ (25,789) $ 8,470 $ (25,789) $ 8,470 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Fiscal 2022 Fiscal 2021 Expected volatility 29.8% 29.8% Expected term 6 years 6 years Risk-free interest rate 1.92% 1.32% |
Summary of Stock Option Activity | A summary of the status of the Company's stock option activity as of June 30, 2022 and changes during the six-month period then ended are as follows: Stock Options Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Weighted Average Remaining Contract Term Balance outstanding, December 31, 2021 120,187 $ 16.06 Granted 64,694 $ 7.04 Forfeited or cancelled (13,125) $ 16.07 Balance outstanding, June 30, 2022 171,756 $ 12.66 $ — 8.64 years Balance vested and exercisable, June 30, 2022 38,500 $ 16.04 $ — 8.33 years |
Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions | Grant date fair values were determined using a Monte Carlo valuation model based on the following assumptions: Fiscal 2022 Fiscal 2021 Total grant date fair value $ 391 $ 845 Total grant date fair value per share $ 6.04 $ 13.92 Expected volatility 40.0 % 35.0 % Weighted average expected life 2.81 years 2.77 years Risk-free interest rate 1.79 % 0.27 % |
Summary of Share-based Payment Award, Total Shareholder Return | The percent of the target MSU that will be earned based on the Company’s TSR is as follows: Cumulative TSR % Fiscal 2022 Fiscal 2021 Percent of Units Vested Below 29.2% Below 25.1% 0% 29.2% 25.1% 50% 52.1% 47.2% 100% 74.9% and above 69.3% and above 200% |
Summary of Nonvested Restricted Stock Unit Activity | A summary of the status of the Company’s non-vested restricted stock unit activity as of June 30, 2022 and changes during the six-month period then ended is as follows: RSUs MSUs PSUs Total Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested outstanding, December 31, 2021 117,109 $ 15.53 50,861 $ 13.92 101,748 $ 17.50 269,718 $ 15.97 Granted 87,308 $ 6.88 64,709 $ 6.04 64,693 $ 7.04 216,710 $ 6.88 Vested (26,901) $ 14.81 — $ — — $ — (26,901) $ 14.81 Forfeited or cancelled (10,313) $ 16.42 (7,038) $ 13.92 (14,080) $ 17.50 (31,431) $ 16.34 Non-vested outstanding, June 30, 2022 167,203 $ 11.08 108,532 $ 9.22 152,361 $ 13.06 428,096 $ 11.31 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jul. 06, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 142,347 | $ 142,347 | |
Finite-lived intangible assets, net | $ 70,116 | $ 73,114 | |
Western Integrated Care, LLC | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100% | ||
Consideration transferred | $ 5,500 | ||
Due to related parties | 1,500 | ||
Goodwill | 1,501 | ||
Finite-lived intangible assets, net | $ 3,624 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | $ 466,819 | $ 471,061 |
Equity securities | 30,698 | 969 |
Total investments | 497,517 | 472,030 |
Embedded derivatives on funds held under reinsurance agreements | (10,764) | 271 |
Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 30,112 | 30,938 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 51,678 | 2,392 |
Embedded derivatives on funds held under reinsurance agreements | (1,422) | (4) |
Level 1 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 415,141 | 468,669 |
Embedded derivatives on funds held under reinsurance agreements | (9,342) | 275 |
Level 2 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 30,112 | 30,938 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Embedded derivatives on funds held under reinsurance agreements | 0 | 0 |
Level 3 | Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0 | 0 |
Total investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 497,517 | 472,030 |
Total investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 64,168 | 2,392 |
Total investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 433,349 | 469,638 |
Total investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | 0 |
U.S. government and government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 51,678 | 41,434 |
U.S. government and government securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 51,678 | 2,392 |
U.S. government and government securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 39,042 |
U.S. government and government securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 392 | 2,490 |
Foreign governments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Foreign governments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 392 | 2,490 |
Foreign governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
States, territories and possessions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 10,274 | 10,766 |
States, territories and possessions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
States, territories and possessions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 10,274 | 10,766 |
States, territories and possessions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Political subdivisions of states territories and possessions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 35,925 | 40,002 |
Political subdivisions of states territories and possessions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Political subdivisions of states territories and possessions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 35,925 | 40,002 |
Political subdivisions of states territories and possessions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Special revenue and special assessment obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 99,528 | 95,991 |
Special revenue and special assessment obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Special revenue and special assessment obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 99,528 | 95,991 |
Special revenue and special assessment obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Industrial and public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 102,514 | 103,257 |
Industrial and public utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Industrial and public utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 102,514 | 103,257 |
Industrial and public utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 98,807 | 118,218 |
Commercial mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 98,807 | 118,218 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 19,087 | 17,368 |
Residential mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 19,087 | 17,368 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Other loan-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 43,830 | 41,425 |
Other loan-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Other loan-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 43,830 | 41,425 |
Other loan-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | 0 |
Hybrid securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 4,784 | 110 |
Hybrid securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | |
Hybrid securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 110 | |
Hybrid securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities: | 0 | |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 30,698 | 969 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 12,490 | 0 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 18,208 | 969 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | $ 0 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fixed maturities: | ||
Cost or Amortized Cost | $ 499,544 | $ 465,459 |
Gross Unrealized Gains | 489 | 8,719 |
Gross Unrealized Losses | (33,214) | (3,117) |
Fair Value | 466,819 | 471,061 |
U.S. government and government securities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 53,592 | 41,490 |
Gross Unrealized Gains | 0 | 113 |
Gross Unrealized Losses | (1,914) | (169) |
Fair Value | 51,678 | 41,434 |
Foreign governments | ||
Fixed maturities: | ||
Cost or Amortized Cost | 400 | 2,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (8) | (10) |
Fair Value | 392 | 2,490 |
States, territories and possessions | ||
Fixed maturities: | ||
Cost or Amortized Cost | 11,102 | 10,593 |
Gross Unrealized Gains | 22 | 189 |
Gross Unrealized Losses | (850) | (16) |
Fair Value | 10,274 | 10,766 |
Political subdivisions of states, territories and possessions | ||
Fixed maturities: | ||
Cost or Amortized Cost | 39,098 | 39,170 |
Gross Unrealized Gains | 77 | 975 |
Gross Unrealized Losses | (3,250) | (143) |
Fair Value | 35,925 | 40,002 |
Special revenue and special assessment obligations | ||
Fixed maturities: | ||
Cost or Amortized Cost | 107,939 | 93,664 |
Gross Unrealized Gains | 241 | 2,920 |
Gross Unrealized Losses | (8,652) | (593) |
Fair Value | 99,528 | 95,991 |
Industrial and public utilities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 106,575 | 100,774 |
Gross Unrealized Gains | 98 | 2,835 |
Gross Unrealized Losses | (4,159) | (352) |
Fair Value | 102,514 | 103,257 |
Commercial mortgage-backed securities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 110,538 | 119,378 |
Gross Unrealized Gains | 49 | 591 |
Gross Unrealized Losses | (11,780) | (1,751) |
Fair Value | 98,807 | 118,218 |
Residential mortgage-backed securities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 20,076 | 16,549 |
Gross Unrealized Gains | 0 | 843 |
Gross Unrealized Losses | (989) | (24) |
Fair Value | 19,087 | 17,368 |
Other loan-backed securities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 44,880 | 41,236 |
Gross Unrealized Gains | 2 | 248 |
Gross Unrealized Losses | (1,052) | (59) |
Fair Value | 43,830 | 41,425 |
Hybrid securities | ||
Fixed maturities: | ||
Cost or Amortized Cost | 5,344 | 105 |
Gross Unrealized Gains | 0 | 5 |
Gross Unrealized Losses | (560) | 0 |
Fair Value | $ 4,784 | $ 110 |
Investments - Schedule of Conti
Investments - Schedule of Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | $ 348,752 | $ 200,252 |
Unrealized Loss, less than 12 months | (25,640) | (2,841) |
Fair Value, 12 months or more | 49,433 | 9,770 |
Unrealized Loss, 12 months or more | (7,574) | (276) |
Fair Value | 398,185 | 210,022 |
Unrealized Loss | (33,214) | (3,117) |
U.S. government and government securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 50,142 | 26,935 |
Unrealized Loss, less than 12 months | (1,826) | (168) |
Fair Value, 12 months or more | 1,536 | 23 |
Unrealized Loss, 12 months or more | (88) | (1) |
Fair Value | 51,678 | 26,958 |
Unrealized Loss | (1,914) | (169) |
Foreign governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 392 | 2,490 |
Unrealized Loss, less than 12 months | (8) | (10) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value | 392 | 2,490 |
Unrealized Loss | (8) | (10) |
States, territories and possessions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 7,811 | 935 |
Unrealized Loss, less than 12 months | (767) | (16) |
Fair Value, 12 months or more | 242 | 0 |
Unrealized Loss, 12 months or more | (83) | 0 |
Fair Value | 8,053 | 935 |
Unrealized Loss | (850) | (16) |
Political subdivisions of states, territories and possessions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 26,849 | 11,115 |
Unrealized Loss, less than 12 months | (3,220) | (143) |
Fair Value, 12 months or more | 269 | 0 |
Unrealized Loss, 12 months or more | (30) | 0 |
Fair Value | 27,118 | 11,115 |
Unrealized Loss | (3,250) | (143) |
Special revenue and special assessment obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 73,580 | 29,917 |
Unrealized Loss, less than 12 months | (7,989) | (593) |
Fair Value, 12 months or more | 3,614 | 0 |
Unrealized Loss, 12 months or more | (663) | 0 |
Fair Value | 77,194 | 29,917 |
Unrealized Loss | (8,652) | (593) |
Industrial and public utilities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 72,164 | 24,042 |
Unrealized Loss, less than 12 months | (3,800) | (286) |
Fair Value, 12 months or more | 3,039 | 1,058 |
Unrealized Loss, 12 months or more | (359) | (66) |
Fair Value | 75,203 | 25,100 |
Unrealized Loss | (4,159) | (352) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 58,330 | 80,126 |
Unrealized Loss, less than 12 months | (5,634) | (1,565) |
Fair Value, 12 months or more | 36,500 | 6,212 |
Unrealized Loss, 12 months or more | (6,146) | (186) |
Fair Value | 94,830 | 86,338 |
Unrealized Loss | (11,780) | (1,751) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 19,088 | 4,539 |
Unrealized Loss, less than 12 months | (989) | (24) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value | 19,088 | 4,539 |
Unrealized Loss | (989) | (24) |
Other loan-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Fair Value, less than 12 months | 35,611 | 20,153 |
Unrealized Loss, less than 12 months | (847) | (36) |
Fair Value, 12 months or more | 4,233 | 2,477 |
Unrealized Loss, 12 months or more | (205) | (23) |
Fair Value | 39,844 | 22,630 |
Unrealized Loss | $ (1,052) | $ (59) |
Investments - Summary of Invest
Investments - Summary of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Cost or Amortized Cost | ||
Due in one year or less | $ 33,743 | |
Due after one year but before five years | 134,093 | |
Due after five years but before ten years | 90,804 | |
Due after ten years | 65,410 | |
Cost or Amortized Cost | 499,544 | $ 465,459 |
Fair Value | ||
Due in one year or less | 33,635 | |
Due after one year but before five years | 129,546 | |
Due after five years but before ten years | 84,479 | |
Due after ten years | 57,435 | |
Fair Value | 466,819 | 471,061 |
Commercial mortgage-backed securities | ||
Cost or Amortized Cost | ||
Cost or Amortized Cost | 110,538 | 119,378 |
Fair Value | ||
Fair Value | 98,807 | 118,218 |
Residential mortgage-backed securities | ||
Cost or Amortized Cost | ||
Cost or Amortized Cost | 20,076 | 16,549 |
Fair Value | ||
Fair Value | 19,087 | 17,368 |
Other loan-backed securities | ||
Cost or Amortized Cost | ||
Cost or Amortized Cost | 44,880 | 41,236 |
Fair Value | ||
Fair Value | $ 43,830 | $ 41,425 |
Investments - Summary of Realiz
Investments - Summary of Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fixed maturities: | ||||
Gains | $ 4 | $ 18 | $ 113 | $ 98 |
Losses | (58) | (8) | (1,194) | (75) |
Total fixed maturities | (54) | 10 | (1,081) | 23 |
Funds held investments: | ||||
Gains | 11 | 0 | 19 | 0 |
Losses | (1) | 0 | (17) | 0 |
Total funds held investments | 10 | 0 | 2 | 0 |
Equity securities: | ||||
Gains | 1,400 | 0 | 1,400 | 0 |
Losses | (7) | 0 | (19) | 0 |
Total equity securities | 1,393 | 0 | 1,381 | 0 |
Total net realized gains | $ 1,349 | $ 10 | $ 302 | $ 23 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Investment Income [Line Items] | ||||
Net investment income (loss) | $ (391) | $ 2,103 | $ 2,185 | $ 4,375 |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Net investment income (loss) | 1,807 | 1,577 | 3,561 | 3,137 |
Income on funds held investments | ||||
Net Investment Income [Line Items] | ||||
Net investment income (loss) | 774 | 519 | 1,442 | 1,199 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Net investment income (loss) | 456 | 6 | 610 | 36 |
Interest earned on cash and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Net investment income (loss) | 13 | 1 | 13 | 3 |
Unrealized losses on equity securities | ||||
Net Investment Income [Line Items] | ||||
Net investment income (loss) | $ (3,441) | $ 0 | $ (3,441) | $ 0 |
Investments - Summary of Unreal
Investments - Summary of Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net realized gains (losses) on sales of equity securities | $ 1,393 | $ 0 | $ 1,381 | $ 0 |
Change in net unrealized gains (losses) of equity securities | (3,441) | (2) | (3,441) | 15 |
Net realized and unrealized gains (losses) on equity securities | $ (2,048) | $ (2) | $ (2,060) | $ 15 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Investment Income [Line Items] | ||||
Change in net unrealized gains (losses) of equity securities | $ (3,441) | $ 0 | ||
Investment Income | ||||
Net Investment Income [Line Items] | ||||
Change in net unrealized gains (losses) of equity securities | $ (3,435) | $ (2) | $ (3,423) | $ 15 |
Investments - Schedule of Funds
Investments - Schedule of Funds Held Under Reinsurance Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Funds held under reinsurance agreements, at cost | $ 211,102 | $ 199,139 |
Embedded derivatives, at fair value | (10,764) | 271 |
Total funds held under reinsurance agreements | $ 200,338 | $ 199,410 |
Investments - Summary of Embedd
Investments - Summary of Embedded Derivatives, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Investment Income [Line Items] | ||||
Change in fair value of embedded derivatives | $ 4,140 | $ (167) | $ 11,036 | $ 3,189 |
Effect of realized gains on funds held investments | (10) | 0 | (2) | 0 |
Gains (losses) on embedded derivatives | 3,356 | (686) | 9,592 | 1,990 |
Income on funds held investments | ||||
Net Investment Income [Line Items] | ||||
Effect of net investment income on funds held investments | $ (774) | $ (519) | $ (1,442) | $ (1,199) |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jan. 03, 2020 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 02, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of equity method investments | $ 0 | $ 232 | |||||
Realized gain (loss) on sale | $ 1,400 | 1,400 | |||||
Trean Intermediaries | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage sold | 15% | ||||||
Ownership percentage | 25% | ||||||
Proceeds from sale of equity method investments | $ 3,000 | $ 1,888 | |||||
Cumulative percentage ownership after all transactions | 10% | ||||||
Income from equity method investments | $ 50 | $ 50 | $ 100 | $ 100 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less: unamortized deferred financing costs | $ (491) | $ (576) |
Net debt | 29,621 | 30,362 |
Secured credit facility | ||
Debt Instrument [Line Items] | ||
Secured credit facility | $ 30,112 | $ 30,938 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Secured credit facility - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Dec. 31, 2021 | Jul. 16, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amended and Restated Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Extension term | 5 years | ||||||
Increase (decrease) to term loan debt amount | $ 11,707 | ||||||
Amended and Restated Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly installment payments | $ 206 | ||||||
Amended and Restated Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly installment payments | 825 | ||||||
Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 5.51% | 4.64% | 4.50% | ||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 33,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest expense | $ 425 | $ 383 | $ 791 | $ 768 | |||
Revolving Credit Facility | Amended and Restated Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 2,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenues | $ 1,804 | $ 1,229 | $ 5,005 | $ 5,884 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 1,804 | $ 1,229 | $ 5,005 | $ 5,884 |
Brokerage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 1,222 | 770 | 3,815 | 4,225 |
Managing general agent fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 84 | 30 | 168 | 319 |
Third-party administrator fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 249 | 376 | 572 | 754 |
Consulting and other fee-based revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 249 | $ 53 | $ 450 | $ 586 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract with Customer, Contract Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 4,368 | $ 3,353 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, percent | 21% | 16.30% | 21% | 20.70% |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid losses and LAE reserves at beginning of period | $ 550,981 | $ 485,532 | $ 544,320 | $ 457,817 |
Less losses ceded through reinsurance | (364,279) | (353,158) | (369,008) | (335,655) |
Net unpaid losses and LAE at beginning of period | 186,702 | 132,374 | 175,312 | 122,162 |
Incurred losses and LAE related to: | ||||
Current period | 41,304 | 30,178 | 80,872 | 55,085 |
Prior period | (417) | (453) | (792) | (479) |
Total incurred losses and LAE | 40,887 | 29,725 | 80,080 | 54,606 |
Paid losses and LAE, net of reinsurance, related to: | ||||
Current period | 16,304 | 8,950 | 21,698 | 12,473 |
Prior period | 12,873 | 9,190 | 35,282 | 20,336 |
Total paid losses and LAE | 29,177 | 18,140 | 56,980 | 32,809 |
Net unpaid losses and LAE at end of period | 198,412 | 143,959 | 198,412 | 143,959 |
Plus losses ceded through reinsurance | 379,274 | 358,601 | 379,274 | 358,601 |
Unpaid losses and LAE reserves at end of period | $ 577,686 | $ 502,560 | $ 577,686 | $ 502,560 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Written premiums | ||||
Gross | $ 150,519 | $ 153,049 | $ 309,886 | $ 297,947 |
Assumed | 3,670 | 3,502 | 5,706 | 5,334 |
Ceded | (85,519) | (101,306) | (171,444) | (190,790) |
Net written premiums | 68,670 | 55,245 | 144,148 | 112,491 |
Earned premiums | ||||
Gross | 154,556 | 136,362 | 310,760 | 262,766 |
Assumed | 2,586 | 2,262 | 4,921 | 4,157 |
Ceded | (91,132) | (90,681) | (185,494) | (177,846) |
Net earned premiums | $ 66,010 | $ 47,943 | $ 130,187 | $ 89,077 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Renewal term | 60 months | 60 months | ||
Lease expense | $ 623 | $ 597 | $ 1,240 | $ 1,205 |
Variable lease expense | 27 | 18 | 51 | 27 |
Sublease income | $ 22 | $ 23 | $ 43 | $ 41 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 1 month | 1 month | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of contract | 57 months | 57 months |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right of use asset | $ 3,807 | $ 4,530 |
Lease liability | $ 4,178 | $ 4,976 |
Weighted average remaining lease term | 2 years 1 month 17 days | 2 years 5 months 1 day |
Weighted average discount rate | 5.97% | 6.33% |
Leases - Schedule of Future Mat
Leases - Schedule of Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 1,245 | |
2023 | 1,928 | |
2024 | 1,063 | |
2025 | 163 | |
2026 | 41 | |
Total lease payments | 4,442 | |
Less: imputed interest | (264) | |
Total lease liabilities | $ 4,178 | $ 4,976 |
Equity (Details)
Equity (Details) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 51,202,136 | 51,176,887 |
Common stock, outstanding (in shares) | 51,202,136 | 51,176,887 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income — basic and diluted | $ 5,491 | $ 2,126 | $ 17,831 | $ 11,568 |
Weighted average number of shares outstanding — basic | ||||
Weighted average number of shares outstanding - basic (in shares) | 51,197,111 | 51,152,979 | 51,187,509 | 51,150,881 |
Effect of dilutive securities: | ||||
Dilutive securities (in shares) | 422 | 13,608 | 211 | 22,323 |
Weighted average number of shares outstanding — diluted | ||||
Weighted average number of shares outstanding - diluted (in shares) | 51,197,533 | 51,166,587 | 51,187,720 | 51,173,204 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.11 | $ 0.04 | $ 0.35 | $ 0.23 |
Diluted (in dollars per share) | $ 0.11 | $ 0.04 | $ 0.35 | $ 0.23 |
Excluded: Antidilutive common stock equivalents (in shares) | 595,852 | 284,059 | ||
Restricted stock units (RSUs) (in shares) | ||||
Effect of dilutive securities: | ||||
Dilutive securities (in shares) | 422 | 13,608 | 211 | 22,323 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Shareholders' equity beginning balance | $ 416,397 | $ 412,975 | $ 421,909 | $ 410,107 |
Less reclassification adjustments to: | ||||
Other comprehensive loss | (12,173) | 1,829 | (30,173) | (4,956) |
Shareholders' equity ending balance | 410,118 | 417,343 | 410,118 | 417,343 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Shareholders' equity beginning balance | (13,616) | 6,641 | 4,384 | 13,426 |
Less reclassification adjustments to: | ||||
Other comprehensive loss | (12,173) | 1,829 | (30,173) | (4,956) |
Shareholders' equity ending balance | (25,789) | 8,470 | (25,789) | 8,470 |
Unrealized investment gain (loss) | ||||
Unrealized investment gains (losses): | ||||
Unrealized investment gains (losses) arising during the period | (15,470) | 2,325 | (39,274) | (6,251) |
Income tax expense (benefit) | (3,254) | 488 | (8,247) | (1,313) |
Unrealized investment gains (losses), net of tax | (12,216) | 1,837 | (31,027) | (4,938) |
Less reclassification adjustments to: | ||||
Net realized investment gains (losses) included in net realized gains (losses) | (54) | 10 | (1,081) | 23 |
Income tax expense (benefit) | (11) | 2 | (227) | 5 |
Total reclassifications included in net income, net of tax | (43) | 8 | (854) | 18 |
Other comprehensive loss | $ (12,173) | $ 1,829 | $ (30,173) | $ (4,956) |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 559 | $ 630 | ||
Cost not yet recognized, weighted average period for recognition | 8 years 7 months 20 days | |||
2020 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 5,058,085 | 5,058,085 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 45 | $ 34 | $ 96 | $ 69 |
Weighted average grant-date fair value of options granted (in dollars per share) | $ 2.30 | $ 5.49 | ||
Unrecognized compensation cost related to stock options | 363 | $ 363 | ||
Cost not yet recognized, weighted average period for recognition | 1 year 1 month 6 days | |||
Stock Options | Share-based Payment Arrangement, Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Contractual term from date of grant (in years) | 10 years | |||
Stock Options | Share-based Payment Arrangement, Employee | Share-based payment arrangement, tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Stock Options | Share-based Payment Arrangement, Employee | Share-based payment arrangement, tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Stock Options | Share-based Payment Arrangement, Employee | Share-based payment arrangement, tranche three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | 358 | 385 | $ 463 | $ 561 |
Vesting period (in years) | 3 years | |||
Cost not yet recognized, weighted average period for recognition | 1 year 10 months 24 days | |||
Non-vested non-option stock-based compensation expense | 2,906 | $ 2,906 | ||
Fair value of restricted stock units vested | $ 67 | $ 136 | $ 144 | $ 136 |
Restricted Stock Units (RSUs) | Share-based payment arrangement, tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Restricted Stock Units (RSUs) | Share-based payment arrangement, tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Restricted Stock Units (RSUs) | Share-based payment arrangement, tranche three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Performance Stock Units | Minimum | Share-based payment arrangement, tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout rate (percentage) | 0% | 0% | ||
Performance Stock Units | Minimum | Share-based payment arrangement, tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout rate (percentage) | 50% | 50% | ||
Performance Stock Units | Maximum | Share-based payment arrangement, tranche four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout rate (percentage) | 200% | 200% | ||
Market-Based Stock Units (MSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period (in years) | 3 years | |||
Market-Based Stock Units (MSUs) | Share-based payment arrangement, tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0% | |||
Market-Based Stock Units (MSUs) | Share-based payment arrangement, tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50% | |||
Market-Based Stock Units (MSUs) | Share-based payment arrangement, tranche three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 100% | |||
Market-Based Stock Units (MSUs) | Share-based payment arrangement, tranche four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200% |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Expected volatility | 29.80% | 29.80% |
Expected term | 6 years | 6 years |
Risk-free interest rate | 1.92% | 1.32% |
Stock Compensation - Summary of
Stock Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Stock Options | |
Options outstanding, beginning balance (in shares) | shares | 120,187 |
Granted (in shares) | shares | 64,694 |
Forfeited or cancelled (in shares) | shares | (13,125) |
Options outstanding, ending balance (in shares) | shares | 171,756 |
Options exercisable (in shares) | shares | 38,500 |
Weighted Average Exercise Price Per Share | |
Options outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 16.06 |
Grants in period, weighted average exercise price (in dollars per share) | $ / shares | 7.04 |
Forfeited or cancelled in period, weighted average exercise price (in dollars per share) | $ / shares | 16.07 |
Options outstanding, weighted average exercise price, ending balance (in dollars per share) | $ / shares | 12.66 |
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 16.04 |
Options outstanding, aggregate intrinsic value | $ | $ 0 |
Options vested or expected to vest, aggregate intrinsic value | $ | $ 0 |
Options outstanding, weighted average outstanding (in years) | 8 years 7 months 20 days |
Options vested or expected to vest, weighted average remaining (in years) | 8 years 3 months 29 days |
Stock Compensation - Schedule_2
Stock Compensation - Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 29.80% | 29.80% |
Weighted average expected life | 6 years | 6 years |
Risk-free interest rate | 1.92% | 1.32% |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total grant date fair value | $ 391 | $ 845 |
Total grant date fair value per share (in dollars per share) | $ 6.04 | $ 13.92 |
Expected volatility | 40% | 35% |
Weighted average expected life | 2 years 9 months 21 days | 2 years 9 months 7 days |
Risk-free interest rate | 1.79% | 0.27% |
Stock Compensation - Summary _2
Stock Compensation - Summary of Share-based Payment Award, Total Shareholder Return (Details) - Market-Based Stock Units (MSUs) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share-based payment arrangement, tranche one | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative TSR % | 29.20% | 25.10% |
Percent of Units Vested | 0% | |
Share-based payment arrangement, tranche two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative TSR % | 29.20% | 25.10% |
Percent of Units Vested | 50% | |
Share-based payment arrangement, tranche three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative TSR % | 52.10% | 47.20% |
Percent of Units Vested | 100% | |
Share-based payment arrangement, tranche four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cumulative TSR % | 74.90% | 69.30% |
Percent of Units Vested | 200% |
Stock Compensation - Summary _3
Stock Compensation - Summary of Nonvested Restricted Stock Unit Activity (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Shares | |
Non-vested outstanding, beginning balance (in shares) | shares | 269,718 |
Granted (in shares) | shares | 216,710 |
Vested (in shares) | shares | (26,901) |
Forfeited or cancelled (in shares) | shares | (31,431) |
Non-vested outstanding, ending balance (in shares) | shares | 428,096 |
Weighted Average Grant Date Fair Value | |
Non-vested outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 15.97 |
Grants in period, weighted average exercise price (in dollars per share) | $ / shares | 6.88 |
Vested in period, weighted average exercise price (in dollars per share) | $ / shares | 14.81 |
Forfeited or cancelled in period, weighted average exercise price (in dollars per share) | $ / shares | 16.34 |
Non-vested outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 11.31 |
Restricted Stock Units (RSUs) | |
Shares | |
Non-vested outstanding, beginning balance (in shares) | shares | 117,109 |
Granted (in shares) | shares | 87,308 |
Vested (in shares) | shares | (26,901) |
Forfeited or cancelled (in shares) | shares | (10,313) |
Non-vested outstanding, ending balance (in shares) | shares | 167,203 |
Weighted Average Grant Date Fair Value | |
Non-vested outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 15.53 |
Grants in period, weighted average exercise price (in dollars per share) | $ / shares | 6.88 |
Vested in period, weighted average exercise price (in dollars per share) | $ / shares | 14.81 |
Forfeited or cancelled in period, weighted average exercise price (in dollars per share) | $ / shares | 16.42 |
Non-vested outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 11.08 |
Market-Based Stock Units (MSUs) | |
Shares | |
Non-vested outstanding, beginning balance (in shares) | shares | 50,861 |
Granted (in shares) | shares | 64,709 |
Vested (in shares) | shares | 0 |
Forfeited or cancelled (in shares) | shares | (7,038) |
Non-vested outstanding, ending balance (in shares) | shares | 108,532 |
Weighted Average Grant Date Fair Value | |
Non-vested outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 13.92 |
Grants in period, weighted average exercise price (in dollars per share) | $ / shares | 6.04 |
Vested in period, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Forfeited or cancelled in period, weighted average exercise price (in dollars per share) | $ / shares | 13.92 |
Non-vested outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 9.22 |
Performance Stock Units (PSUs) | |
Shares | |
Non-vested outstanding, beginning balance (in shares) | shares | 101,748 |
Granted (in shares) | shares | 64,693 |
Vested (in shares) | shares | 0 |
Forfeited or cancelled (in shares) | shares | (14,080) |
Non-vested outstanding, ending balance (in shares) | shares | 152,361 |
Weighted Average Grant Date Fair Value | |
Non-vested outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 17.50 |
Grants in period, weighted average exercise price (in dollars per share) | $ / shares | 7.04 |
Vested in period, weighted average exercise price (in dollars per share) | $ / shares | 0 |
Forfeited or cancelled in period, weighted average exercise price (in dollars per share) | $ / shares | 17.50 |
Non-vested outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 13.06 |