Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33251 | |
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 65-0231984 | |
Entity Address, Address Line One | 1110 W. Commercial Blvd. | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33309 | |
City Area Code | 954 | |
Local Phone Number | 958-1200 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | UVE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 29,185,808 | |
Entity Central Index Key | 0000891166 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Available-for-sale debt securities, at fair value, net of allowance for credit loss of $683 and $920 (amortized cost: $1,173,967 and $1,152,852) | $ 1,031,558 | $ 1,014,626 | |
Equity securities, at fair value (cost: $92,554 and $102,431) | 76,995 | 85,469 | |
Investment real estate, net | 5,572 | 5,711 | |
Total invested assets | 1,114,125 | 1,105,806 | |
Cash and cash equivalents | 343,532 | 388,706 | |
Restricted cash and cash equivalents | [1] | 69,488 | 2,635 |
Prepaid reinsurance premiums | 379,501 | 282,427 | |
Reinsurance recoverable | 322,986 | 808,850 | |
Premiums receivable, net | 88,536 | 69,574 | |
Property and equipment, net | 48,729 | 51,404 | |
Deferred policy acquisition costs | 114,590 | 103,654 | |
Income taxes recoverable | 2,026 | 1,528 | |
Deferred income tax asset, net | 49,326 | 57,258 | |
Other assets | 26,016 | 18,312 | |
Total assets | 2,558,855 | 2,890,154 | |
LIABILITIES: | |||
Unpaid losses and loss adjustment expenses | 551,007 | 1,038,790 | |
Unearned premiums | 1,040,067 | 943,854 | |
Advance premium | 76,030 | 54,964 | |
Book overdraft | 12,208 | 0 | |
Reinsurance payable, net | 388,294 | 384,504 | |
Commission payable | 22,751 | 18,541 | |
Other liabilities and accrued expenses | 64,800 | 58,836 | |
Long-term debt, net | 102,196 | 102,769 | |
Total liabilities | 2,257,353 | 2,602,258 | |
Commitments and Contingencies (Note 12) | |||
STOCKHOLDERS’ EQUITY: | |||
Cumulative convertible preferred stock | 0 | 0 | |
Common stock | 473 | 472 | |
Treasury shares, at cost - 18,080 and 16,790 | (257,143) | (238,758) | |
Additional paid-in capital | 115,922 | 112,509 | |
Accumulated other comprehensive income (loss), net of taxes | (107,115) | (103,782) | |
Retained earnings | 549,365 | 517,455 | |
Total stockholders’ equity | 301,502 | 287,896 | |
Total liabilities and stockholders’ equity | $ 2,558,855 | $ 2,890,154 | |
[1]See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and "—Note 14(Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, allowance for credit loss | $ 683 | $ 920 |
Available for sale debt securities, amortized cost | 1,173,967 | 1,152,852 |
Equity securities, amortized cost | $ 92,554 | $ 102,431 |
Cumulative convertible preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding (in shares) | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference (in USD per share) | $ 9.99 | $ 9.99 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 55,000,000 | 55,000,000 |
Common stock, shares issued (in shares) | 47,266,000 | 47,179,000 |
Common stock, shares outstanding (in shares) | 29,186,000 | 30,389,000 |
Treasury stock, shares (in shares) | 18,080,000 | 16,790,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUES | ||||
Direct premiums written | $ 531,988 | $ 500,677 | $ 1,489,216 | $ 1,429,685 |
Change in unearned premium | (57,677) | (48,227) | (96,213) | (133,827) |
Direct premium earned | 474,311 | 452,450 | 1,393,003 | 1,295,858 |
Ceded premium earned | (143,271) | (161,819) | (476,465) | (459,102) |
Premiums earned, net | 331,040 | 290,631 | 916,538 | 836,756 |
Net investment income | 12,755 | 6,074 | 34,735 | 15,337 |
Net realized gains (losses) on investments | (431) | 292 | (337) | (375) |
Net change in unrealized gains (losses) of equity securities | (1,285) | (4,150) | 1,403 | (16,430) |
Commission revenue | 10,830 | 12,592 | 43,098 | 35,157 |
Policy fees | 5,111 | 5,272 | 14,662 | 15,991 |
Other revenue | 2,028 | 2,099 | 6,027 | 5,862 |
Total revenues | 360,048 | 312,810 | 1,016,126 | 892,298 |
OPERATING COSTS AND EXPENSES | ||||
Losses and loss adjustment expenses | 287,972 | 330,444 | 717,853 | 715,854 |
General and administrative expenses | 78,322 | 73,973 | 230,924 | 231,561 |
Total operating costs and expenses | 366,294 | 404,417 | 948,777 | 947,415 |
Interest and amortization of debt issuance costs | 1,631 | 1,630 | 4,896 | 4,969 |
INCOME (LOSS) BEFORE INCOME TAXES | (7,877) | (93,237) | 62,453 | (60,086) |
Income tax expense (benefit) | (1,962) | (20,962) | 15,629 | (12,718) |
NET INCOME (LOSS) | $ (5,915) | $ (72,275) | $ 46,824 | $ (47,368) |
Basic earnings (loss) per common share (in USD per share) | $ (0.20) | $ (2.36) | $ 1.56 | $ (1.54) |
Weighted average common shares outstanding - Basic (in shares) | 29,617 | 30,604 | 30,087 | 30,858 |
Diluted earnings (loss) per common share (in USD per share) | $ (0.20) | $ (2.36) | $ 1.54 | $ (1.54) |
Weighted average common shares outstanding - Diluted (in shares) | 29,617 | 30,604 | 30,378 | 30,858 |
Cash dividend declared per common share (in USD per share) | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (5,915) | $ (72,275) | $ 46,824 | $ (47,368) |
Other comprehensive income (loss), net of taxes | (11,258) | (27,531) | (3,333) | (100,097) |
Comprehensive income (loss) | $ (17,173) | $ (99,806) | $ 43,491 | $ (147,465) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Performance Share Units | Restricted Stock Units | Treasury Shares | Treasury Shares Performance Share Units | Treasury Shares Restricted Stock Units | Common stock | Common stock Performance Share Units | Common stock Restricted Stock Units | Preferred Shares Issued | Additional Paid-In Capital | Additional Paid-In Capital Performance Share Units | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |||
Treasury Shares, beginning balance (in shares) at Dec. 31, 2021 | (15,797,000) | ||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2021 | 47,018,000 | ||||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Dec. 31, 2021 | 10,000 | ||||||||||||||||
Beginning balance at Dec. 31, 2021 | $ 429,702 | $ (227,115) | $ 470 | $ 0 | $ 108,202 | $ 563,713 | $ (15,568) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of equity instruments other than options (in shares) | (9,000) | [1] | (6,000) | [1] | (33,000) | (27,000) | |||||||||||
Vesting of equity instruments other than options | $ (104) | $ (105) | $ (104) | $ (105) | $ 1 | $ (1) | |||||||||||
Retirement of treasury shares (in shares) | (15,000) | [1] | (15,000) | ||||||||||||||
Retirement of treasury shares | 0 | $ 209 | (209) | ||||||||||||||
Purchases of treasury stock (in shares) | (320,000) | ||||||||||||||||
Purchases of treasury stock | (3,879) | $ (3,879) | |||||||||||||||
Share-based compensation | 1,107 | 1,107 | |||||||||||||||
Net income (loss) | 17,537 | 17,537 | |||||||||||||||
Other comprehensive income (loss), net of taxes | (42,910) | (42,910) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,007) | (5,007) | |||||||||||||||
Treasury Shares, ending balance (in shares) at Mar. 31, 2022 | (16,117,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Mar. 31, 2022 | 47,063,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Mar. 31, 2022 | 10,000 | ||||||||||||||||
Ending balance at Mar. 31, 2022 | 396,341 | $ (230,994) | $ 471 | $ 0 | 109,099 | 576,243 | (58,478) | ||||||||||
Treasury Shares, beginning balance (in shares) at Dec. 31, 2021 | (15,797,000) | ||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2021 | 47,018,000 | ||||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Dec. 31, 2021 | 10,000 | ||||||||||||||||
Beginning balance at Dec. 31, 2021 | 429,702 | $ (227,115) | $ 470 | $ 0 | 108,202 | 563,713 | (15,568) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | (47,368) | ||||||||||||||||
Other comprehensive income (loss), net of taxes | (100,097) | ||||||||||||||||
Treasury Shares, ending balance (in shares) at Sep. 30, 2022 | (16,603,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Sep. 30, 2022 | 47,116,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Sep. 30, 2022 | 10,000 | ||||||||||||||||
Ending balance at Sep. 30, 2022 | 260,637 | $ (236,915) | $ 471 | $ 0 | 111,397 | 501,349 | (115,665) | ||||||||||
Treasury Shares, beginning balance (in shares) at Mar. 31, 2022 | (16,117,000) | ||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Mar. 31, 2022 | 47,063,000 | ||||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Mar. 31, 2022 | 10,000 | ||||||||||||||||
Beginning balance at Mar. 31, 2022 | 396,341 | $ (230,994) | $ 471 | $ 0 | 109,099 | 576,243 | (58,478) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Grants of restricted stock award (in shares) | 53,000 | ||||||||||||||||
Grants of restricted stock awards | 0 | ||||||||||||||||
Purchases of treasury stock (in shares) | (283,000) | ||||||||||||||||
Purchases of treasury stock | (3,502) | $ (3,502) | |||||||||||||||
Share-based compensation | 990 | 990 | |||||||||||||||
Net income (loss) | 7,370 | 7,370 | |||||||||||||||
Other comprehensive income (loss), net of taxes | (29,656) | (29,656) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (4,992) | (4,992) | |||||||||||||||
Treasury Shares, ending balance (in shares) at Jun. 30, 2022 | (16,400,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Jun. 30, 2022 | 47,116,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Jun. 30, 2022 | 10,000 | ||||||||||||||||
Ending balance at Jun. 30, 2022 | 366,551 | $ (234,496) | $ 471 | $ 0 | 110,089 | 578,621 | (88,134) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Purchases of treasury stock (in shares) | (203,000) | ||||||||||||||||
Purchases of treasury stock | (2,419) | $ (2,419) | |||||||||||||||
Share-based compensation | 1,308 | 1,308 | |||||||||||||||
Net income (loss) | (72,275) | (72,275) | |||||||||||||||
Other comprehensive income (loss), net of taxes | (27,531) | (27,531) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (4,997) | ||||||||||||||||
Treasury Shares, ending balance (in shares) at Sep. 30, 2022 | (16,603,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Sep. 30, 2022 | 47,116,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Sep. 30, 2022 | 10,000 | ||||||||||||||||
Ending balance at Sep. 30, 2022 | $ 260,637 | $ (236,915) | $ 471 | $ 0 | 111,397 | 501,349 | (115,665) | ||||||||||
Treasury Shares, beginning balance (in shares) at Dec. 31, 2022 | (16,790,000) | (16,790,000) | |||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2022 | 47,179,000 | 47,179,000 | |||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Dec. 31, 2022 | 10,000 | 10,000 | |||||||||||||||
Beginning balance at Dec. 31, 2022 | $ 287,896 | $ (238,758) | $ 472 | $ 0 | 112,509 | 517,455 | (103,782) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Vesting of equity instruments other than options (in shares) | (6,000) | [2] | (16,000) | [2] | (16,000) | (48,000) | |||||||||||
Vesting of equity instruments other than options | $ (64) | $ (160) | $ (64) | $ (160) | |||||||||||||
Stock option exercises (in shares) | (54,000) | [2] | (63,000) | ||||||||||||||
Stock option exercises | 838 | $ (90) | 928 | ||||||||||||||
Retirement of treasury shares (in shares) | (76,000) | [2] | (76,000) | ||||||||||||||
Retirement of treasury shares | (928) | $ 314 | (1,242) | ||||||||||||||
Share-based compensation | 1,230 | 1,230 | |||||||||||||||
Net income (loss) | 24,173 | 24,173 | |||||||||||||||
Other comprehensive income (loss), net of taxes | 13,791 | 13,791 | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (4,970) | (4,970) | |||||||||||||||
Treasury Shares, ending balance (in shares) at Mar. 31, 2023 | (16,790,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Mar. 31, 2023 | 47,230,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Mar. 31, 2023 | 10,000 | ||||||||||||||||
Ending balance at Mar. 31, 2023 | $ 321,806 | $ (238,758) | $ 472 | $ 0 | 113,425 | 536,658 | (89,991) | ||||||||||
Treasury Shares, beginning balance (in shares) at Dec. 31, 2022 | (16,790,000) | (16,790,000) | |||||||||||||||
Common Shares Issued, beginning balance (in shares) at Dec. 31, 2022 | 47,179,000 | 47,179,000 | |||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Dec. 31, 2022 | 10,000 | 10,000 | |||||||||||||||
Beginning balance at Dec. 31, 2022 | $ 287,896 | $ (238,758) | $ 472 | $ 0 | 112,509 | 517,455 | (103,782) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income (loss) | 46,824 | ||||||||||||||||
Other comprehensive income (loss), net of taxes | $ (3,333) | ||||||||||||||||
Treasury Shares, ending balance (in shares) at Sep. 30, 2023 | (18,080,000) | (18,080,000) | |||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Sep. 30, 2023 | 47,266,000 | 47,266,000 | |||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Sep. 30, 2023 | 10,000 | 10,000 | |||||||||||||||
Ending balance at Sep. 30, 2023 | $ 301,502 | $ (257,143) | $ 473 | $ 0 | 115,922 | 549,365 | (107,115) | ||||||||||
Treasury Shares, beginning balance (in shares) at Mar. 31, 2023 | (16,790,000) | ||||||||||||||||
Common Shares Issued, beginning balance (in shares) at Mar. 31, 2023 | 47,230,000 | ||||||||||||||||
Preferred Shares Issued, beginning balance (in shares) at Mar. 31, 2023 | 10,000 | ||||||||||||||||
Beginning balance at Mar. 31, 2023 | 321,806 | $ (238,758) | $ 472 | $ 0 | 113,425 | 536,658 | (89,991) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Grants of restricted stock award (in shares) | 36,000 | ||||||||||||||||
Grants of restricted stock awards | 0 | $ 1 | (1) | ||||||||||||||
Purchases of treasury stock (in shares) | (396,000) | ||||||||||||||||
Purchases of treasury stock | (6,088) | $ (6,088) | |||||||||||||||
Share-based compensation | 1,261 | 1,261 | |||||||||||||||
Net income (loss) | 28,566 | 28,566 | |||||||||||||||
Other comprehensive income (loss), net of taxes | (5,866) | (5,866) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | (5,007) | (5,007) | |||||||||||||||
Treasury Shares, ending balance (in shares) at Jun. 30, 2023 | (17,186,000) | ||||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Jun. 30, 2023 | 47,266,000 | ||||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Jun. 30, 2023 | 10,000 | ||||||||||||||||
Ending balance at Jun. 30, 2023 | 334,672 | $ (244,846) | $ 473 | $ 0 | 114,685 | 560,217 | (95,857) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Purchases of treasury stock (in shares) | (894,000) | ||||||||||||||||
Purchases of treasury stock | (12,297) | $ (12,297) | |||||||||||||||
Share-based compensation | 1,237 | 1,237 | |||||||||||||||
Net income (loss) | (5,915) | (5,915) | |||||||||||||||
Other comprehensive income (loss), net of taxes | (11,258) | (11,258) | |||||||||||||||
Declaration of dividends ($0.16 per common share and $0.25 per preferred share) | $ (4,937) | (4,937) | |||||||||||||||
Treasury Shares, ending balance (in shares) at Sep. 30, 2023 | (18,080,000) | (18,080,000) | |||||||||||||||
Common Shares Issued shares, ending balance (in shares) at Sep. 30, 2023 | 47,266,000 | 47,266,000 | |||||||||||||||
Preferred Shares Issued, ending balance (in shares) at Sep. 30, 2023 | 10,000 | 10,000 | |||||||||||||||
Ending balance at Sep. 30, 2023 | $ 301,502 | $ (257,143) | $ 473 | $ 0 | $ 115,922 | $ 549,365 | $ (107,115) | ||||||||||
[1]All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, restricted stock vested, performance share units vested, or restricted stock units vested. These shares have been cancelled by the Company.[2] All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, restricted stock vested, performance share units vested, or restricted stock units vested. These shares have been cancelled by the Company. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividend declared per common share (in USD per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
Cash dividend declared per preferred share (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |||
Cash flows from operating activities: | |||||
Net cash provided by (used in) operating activities | $ 70,631 | $ 223,157 | |||
Cash flows from investing activities: | |||||
Proceeds from sale of property and equipment | 34 | 65 | |||
Purchases of property and equipment | (2,869) | (4,388) | |||
Purchases of equity securities | (32,558) | (67,733) | |||
Purchases of available-for-sale debt securities | (103,560) | (178,788) | |||
Proceeds from sales of equity securities | $ 5,597 | 42,830 | 26,667 | ||
Proceeds from sales of available-for-sale debt securities | 3,985 | 24,855 | |||
Maturities of available-for-sale debt securities | 77,676 | 59,291 | |||
Net cash provided by (used in) investing activities | (14,462) | (140,031) | |||
Cash flows from financing activities: | |||||
Debt issuance costs paid | 0 | (131) | |||
Preferred stock dividend | (8) | (8) | |||
Common stock dividend | (14,679) | (14,880) | |||
Purchase of treasury stock | (18,385) | (9,800) | |||
Payments related to tax withholding for share-based compensation | (314) | (209) | |||
Repayment of debt | (1,104) | (1,103) | |||
Net cash provided by (used in) financing activities | (34,490) | (26,131) | |||
Cash and cash equivalents and restricted cash and cash equivalents: | |||||
Net increase (decrease) during the period | 21,679 | 56,995 | |||
Balance, beginning of period | 391,341 | 253,143 | |||
Balance, end of period | 413,020 | 413,020 | 310,138 | ||
Cash and cash equivalents, and restricted cash and cash equivalents within the Consolidated Balance Sheets | |||||
Cash and cash equivalents | 343,532 | 343,532 | |||
Restricted cash and cash equivalents | 69,488 | [1] | 69,488 | [1] | |
Total cash and cash equivalents and restricted cash and cash equivalents | $ 413,020 | $ 413,020 | $ 310,138 | ||
[1]See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and "—Note 14(Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Universal Insurance Holdings, Inc. (“UVE”, and together with its wholly-owned subsidiaries, “the Company”) is a Delaware corporation incorporated in 1990. The Company is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution, and claims. Through its wholly-owned insurance company subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”, and together with UPCIC, the “Insurance Entities”), the Company is principally engaged in the property and casualty insurance business offered primarily through its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance offered in 19 states as of September 30, 2023, including Florida, which comprises the majority of the Company’s policies in force. See “—Note 5 (Insurance Operations)” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and investment returns on funds invested on cash flows in excess of those retained and used for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed on behalf of the Insurance Entities, policy fees collected from policyholders by the Company’s wholly-owned managing general agent subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The Company’s wholly-owned adjusting company receives claims-handling fees from the Insurance Entities. The Insurance Entities are reimbursed for these fees on claims that are subject to recovery under the Insurance Entities’ respective reinsurance programs. These fees, after expenses, are recorded in the Condensed Consolidated Financial Statements as an adjustment to losses and loss adjustment expense (“LAE”). Basis of Presentation and Consolidation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 28, 2023. The Condensed Consolidated Balance Sheet at December 31, 2022 was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ condensed consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting PoliciesThe Company reported Significant Accounting Policies in its Annual Report on Form 10-K for the year ended December 31, 2022. There are no new or revised disclosures required on a quarterly basis. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-Sale Securities The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): September 30, 2023 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 25,950 $ — $ — $ (1,193) $ 24,757 Corporate bonds 791,691 (537) 37 (91,834) 699,357 Mortgage-backed and asset-backed securities 328,327 — 15 (44,571) 283,771 Municipal bonds 17,139 (4) — (2,422) 14,713 Redeemable preferred stock 10,860 (142) — (1,758) 8,960 Total $ 1,173,967 $ (683) $ 52 $ (141,778) $ 1,031,558 December 31, 2022 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 12,602 $ — $ — $ (938) $ 11,664 Corporate bonds 788,737 (729) 130 (93,077) 695,061 Mortgage-backed and asset-backed securities 327,166 — 148 (39,707) 287,607 Municipal bonds 14,924 (2) — (2,551) 12,371 Redeemable preferred stock 9,423 (189) — (1,311) 7,923 Total $ 1,152,852 $ (920) $ 278 $ (137,584) $ 1,014,626 The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): September 30, 2023 December 31, 2022 Average Credit Ratings Fair Value % of Total Fair Value % of Total AAA $ 312,769 30.3 % $ 297,475 29.3 % AA 130,994 12.7 % 154,975 15.3 % A 346,486 33.6 % 327,427 32.3 % BBB 240,563 23.3 % 232,316 22.9 % No Rating Available 746 0.1 % 2,433 0.2 % Total $ 1,031,558 100.0 % $ 1,014,626 100.0 % The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc. (“S&P”), Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position. The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Amortized Fair Value Amortized Fair Value Mortgage-backed securities: Agency $ 164,291 $ 135,263 $ 157,672 $ 133,928 Non-agency 63,960 53,119 60,328 50,478 Asset-backed securities: Auto loan receivables 54,287 52,588 62,128 59,370 Credit card receivables 1,657 1,614 657 612 Other receivables 44,132 41,187 46,381 43,219 Total $ 328,327 $ 283,771 $ 327,166 $ 287,607 The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): September 30, 2023 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 8 $ 20,094 $ (457) 5 $ 6,645 $ (734) Corporate bonds 17 6,768 (47) 296 362,421 (52,225) Mortgage-backed and asset-backed securities 38 60,995 (1,813) 186 220,254 (42,762) Municipal bonds 3 1,414 (30) 3 6,756 (1,323) Redeemable preferred stock 2 784 (74) 4 1,102 (235) Total 68 $ 90,055 $ (2,421) 494 $ 597,178 $ (97,279) December 31, 2022 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 2 $ 2,721 $ (110) 5 $ 8,943 $ (828) Corporate bonds 40 26,563 (2,910) 247 325,992 (46,451) Mortgage-backed and asset-backed securities 64 52,751 (2,974) 146 219,189 (36,733) Municipal bonds — — — 3 6,621 (1,458) Redeemable preferred stock 1 95 (51) — — — Total 107 $ 82,130 $ (6,045) 401 $ 560,745 $ (85,470) Unrealized losses on available-for-sale debt securities in the above table as of September 30, 2023 have not been recognized into income as credit losses because the issuers are of high credit quality (investment grade securities), management does not intend to sell nor does it believe it is more likely than not it will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. There were no material factors impacting any one category or specific security requiring an accrual for credit loss. The issuers continue to make principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity. The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2021 $ 371 $ 1 $ 117 $ 489 Provision for (or reversal of) credit loss expense 358 1 72 431 Balance, December 31, 2022 729 2 189 920 Provision for (or reversal of) credit loss expense (192) 2 (47) (237) Balance, September 30, 2023 $ 537 $ 4 $ 142 $ 683 For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not, that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agencies, market sentiment and trends and adverse conditions specifically related to the security, among other quantitative and qualitative factors utilized for establishing an estimate for credit losses. If the assessment indicates that a credit loss exists, the present values of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense and are reported in general and administrative expenses in the Condensed Consolidated Statements of Income. Losses are charged against the allowance when management believes an available-for-sale debt security is confirmed as uncollected or when either of the criteria regarding intent or requirement to sell is met. The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): September 30, 2023 Amortized Cost Fair Value Due in one year or less $ 110,000 $ 107,919 Due after one year through five years 593,152 539,398 Due after five years through ten years 434,732 356,024 Due after ten years 32,281 25,091 Perpetual maturity securities 3,802 3,126 Total $ 1,173,967 $ 1,031,558 All securities, except those with perpetual maturities, were categorized in the table above utilizing years to effective maturity. Effective maturity takes into consideration all forms of potential prepayment, such as call features or prepayment schedules, which shorten the lifespan of contractual maturity dates. The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Proceeds from sales and maturities (fair value): Available-for-sale debt securities $ 34,934 $ 30,929 $ 81,661 $ 84,146 Equity securities $ 5,597 $ 8,975 $ 42,830 $ 26,667 Gross realized gains on sale of securities: Available-for-sale debt securities $ 29 $ — $ 34 $ 242 Equity securities $ 18 $ 571 $ 1,570 $ 1,119 Gross realized losses on sale of securities: Available-for-sale debt securities $ (39) $ (210) $ (766) $ (1,665) Equity securities $ (439) $ (69) $ (1,175) $ (71) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Available-for-sale debt securities $ 6,325 $ 4,847 $ 18,122 $ 13,791 Equity securities 953 740 2,874 1,965 Cash and cash equivalents (1) 5,961 1,069 15,113 1,324 Other (2) 127 122 395 371 Total investment income 13,366 6,778 36,504 17,451 Less: Investment expenses (3) (611) (704) (1,769) (2,114) Net investment income $ 12,755 $ 6,074 $ 34,735 $ 15,337 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. Equity Securities The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period $ (1,129) $ (4,150) $ (831) $ (16,387) Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): September 30, December 31, 2023 2022 Income Producing: Investment real estate $ 7,097 $ 7,097 Less: Accumulated depreciation (1,525) (1,386) Investment real estate, net $ 5,572 $ 5,711 The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Depreciation expense on investment real estate $ 46 $ 46 $ 139 $ 139 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1 st of each year. The Company’s current reinsurance programs consist principally of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. Notwithstanding the purchase of such reinsurance, the Company is responsible for certain retained loss amounts before reinsurance attaches and for insured losses related to catastrophes and other events that exceed coverage provided by or otherwise are not within the scope of the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due. To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2023 Due from as of Reinsurer AM Best Standard Moody’s September 30, 2023 December 31, 2022 Florida Hurricane Catastrophe Fund “FHCF” (1) n/a n/a n/a $ 62,095 $ 134,411 Various Lloyd’s of London Syndicates (2) A A+ n/a 34,367 101,482 DaVinci Reinsurance Ltd. A A+ A3 28,586 48,115 Renaissance Reinsurance Ltd. A+ A+ A1 20,935 38,768 Chubb Tempest Reinsurance, Ltd. A++ AA Aa3 18,194 51,319 Ada Re, Ltd (3) n/a n/a n/a 12,251 — Everest Reinsurance Co A+ A+ A1 11,668 11,536 Upsilon RFO RE Ltd. (3) n/a n/a n/a 10,930 11,201 Aeolus Re Ltd. (3) n/a n/a n/a 10,493 — Allianz Risk Transfer (Bermuda) Ltd. n/a n/a n/a — 285,323 Markel Bermuda Ltd. n/a n/a n/a — 50,981 D E Shaw Re (Bermuda) Ltd. (3) n/a n/a n/a — 16,680 Munich Reinsurance America Inc. n/a n/a n/a — 14,616 Lumen Re Ltd. n/a n/a n/a — 8,913 Total (4) $ 209,519 $ 773,345 (1) No rating is available, because the fund is not rated. (2) No rating available for Moody’s Investors Service, Inc. (3) No rating is available, because the reinsurer is fully collateralized with a trust agreement. (4) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2023 2022 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 531,988 $ 474,311 $ 308,860 $ 500,677 $ 452,450 $ 1,269,344 Ceded 2,717 (143,271) (20,888) (23,956) (161,819) (938,900) Net $ 534,705 $ 331,040 $ 287,972 $ 476,721 $ 290,631 $ 330,444 Nine Months Ended September 30, 2023 2022 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 1,489,216 $ 1,393,003 $ 770,161 $ 1,429,685 $ 1,295,858 $ 1,724,729 Ceded (573,539) (476,465) (52,308) (670,339) (459,102) (1,008,875) Net $ 915,677 $ 916,538 $ 717,853 $ 759,346 $ 836,756 $ 715,854 The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2023 2022 Prepaid reinsurance premiums $ 379,501 $ 282,427 Reinsurance recoverable on paid losses and LAE $ 66,299 $ 10,170 Reinsurance recoverable on unpaid losses and LAE 256,687 798,680 Reinsurance recoverable $ 322,986 $ 808,850 |
Insurance Operations
Insurance Operations | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Insurance Operations | Insurance Operations Deferred Policy Acquisition Costs The Company defers certain costs in connection with written premium, called Deferred Policy Acquisition Costs (“DPAC”). DPAC is amortized over the effective period of the related insurance policies. The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 DPAC, beginning of period $ 107,047 $ 110,983 $ 103,654 $ 108,822 Capitalized Costs 60,470 55,552 167,357 165,983 Amortization of DPAC (52,927) (54,674) (156,421) (162,944) DPAC, end of period $ 114,590 $ 111,861 $ 114,590 $ 111,861 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation (“FLOIR”). The Insurance Entities are also subject to regulations and standards of regulatory authorities in other states where they are licensed, although as Florida-domiciled insurers, their principal regulatory authority is the FLOIR. These standards and regulations include a requirement that the Insurance Entities maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned funds of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by the Insurance Entities to their immediate parent company, Protection Solutions, Inc. (“PSI”, formerly known as Universal Insurance Holding Company of Florida), without prior regulatory approval is limited by the provisions of the Florida Insurance Code. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. In accordance with Florida Insurance Code and based on the calculations performed by the Company as of December 31, 2022, UPCIC and APPCIC currently are not able to pay any ordinary dividends during 2023 . For the nine months ended September 30, 2023 and 2022, no dividends were paid from the Insurance Entities to PSI. The Florida Insurance Code requires a residential property insurance company to maintain a statutory surplus as to policyholders of at least $15.0 million or ten percent of the insurer’s total liabilities, whichever is greater. The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differs from GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Statutory capital and surplus UPCIC $ 294,002 $ 400,866 APPCIC $ 24,802 $ 22,786 Ten percent of total liabilities UPCIC $ 164,130 $ 151,190 APPCIC $ 2,551 $ 2,023 As of the dates in the table above, the Insurance Entities each exceeded the minimum statutory capitalization requirement. The Insurance Entities also met the capitalization requirements of the other states in which they are licensed as of September 30, 2023. Annually, the Insurance Entities each are also required to adhere to prescribed premium-to-capital surplus ratios and each have met those requirements. The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Combined net income (loss) $ (77,035) $ (67,404) $ (105,440) $ (79,479) The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,292 $ 3,246 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Balance at beginning of period $ 663,019 $ 186,349 $ 1,038,790 $ 346,216 Less: Reinsurance recoverable (495,250) (18,972) (798,680) (115,860) Net balance at beginning of period 167,769 167,377 240,110 230,356 Incurred related to: Current year 270,266 327,729 683,004 708,774 Prior years 17,706 2,715 34,849 7,080 Total incurred 287,972 330,444 717,853 715,854 Paid related to: Current year 178,384 216,735 369,425 453,350 Prior years (16,963) 57,227 294,218 269,001 Total paid 161,421 273,962 663,643 722,351 Net balance at end of period 294,320 223,859 294,320 223,859 Plus: Reinsurance recoverable 256,687 929,768 256,687 929,768 Balance at end of period $ 551,007 $ 1,153,627 $ 551,007 $ 1,153,627 Prior years’ development was $17.7 million in the third quarter ended September 30, 2023 compared to $2.7 million in the third quarter ended September 30, 2022. Prior years’ development was $34.8 million in the nine months ended September 30, 2023 compared to $7.1 million in the nine months ended September 30, 2022. In 2023 prior year development was the result of increased costs to settle prior year claims compared to previous estimates particularly related to non-CAT events occurring in prior years. Prior years claims predate the most significant recent property insurance reform legislation enacted in late 2022 in Florida and therefore have not benefited significantly from the statutory changes. Paid claims related to prior years in the third quarter ended September 30, 2023 include the impact of a number of commutations, including the commutation with the FHCF. Prior years’ development was $2.7 million during the three months ended September 30, 2022. The net prior years’ reserve development for the three months ended September 30, 2022 was principally due to Hurricane Irma. Prior years’ reserve development was $7.1 million during the nine months ended September 30, 2022. The net prior years’ reserve development for the nine months ended September 30, 2022 was principally due to Hurricane Irma development of $7.0 million in the period. Hurricane Matthew net losses increased $0.1 million. Additionally, the Company concluded a favorable commutation during the nine months ended September 30, 2022 , favorably increasing ceded prior year loss payments which was offset by a provisory direct prior year IBNR amount, resulting in no net effect . |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2023 2022 Surplus note $ 4,411 $ 5,515 5.625% Senior unsecured notes 100,000 100,000 Total principal amount 104,411 105,515 Less: unamortized debt issuance costs (2,215) (2,746) Total long-term debt, net $ 102,196 $ 102,769 Surplus Note In 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program. The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. Principal and interest are paid periodically pursuant to the terms of the surplus note. UPCIC was in compliance with the terms of the surplus note as of September 30, 2023. Senior Unsecured Notes On November 23, 2021, the Company entered into Note Purchase Agreements with certain institutional accredited investors and qualified institutional buyers pursuant to which the Company issued and sold $100 million of 5.625% Senior Unsecured Notes due 2026 (the “Notes”). The Note Purchase Agreements contain certain customary representations, warranties and covenants made by the Company. The Notes were offered and sold by the Company in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended. On March 24, 2022, the Registration Statement registering the exchange of Notes for registered Notes was declared effective by the Securities and Exchange Commission, and all of the Notes have since been exchanged for registered Notes with identical financial terms. The Notes are senior unsecured debt obligations that bear interest at the rate of 5.625% per annum, payable semi-annually in arrears on May 30 th and November 30 th of each year, beginning on May 30, 2022. The Notes are subject to adjustment from time to time in the event of a downgrade or subsequent upgrade of the rating assigned to the Notes. The Notes mature on November 30, 2026 at which time the entire $100.0 million of principal is due and payable. At any time on or after November 30, 2023, the Company may redeem all or part of the Notes at redemption prices (expressed as percentages of the principal amount) equal to (i) 102.81250% for the twelve-month period beginning on November 30, 2023; (ii) 101.40625% for the twelve-month period beginning on November 30, 2024 and (iii) 100.0% at any time thereafter, plus accrued and unpaid interest up to, but not including the redemption date. The indenture governing the Notes contains financial covenants, terms, events of default and related cure provisions that are customary in agreements used in connection with similar transactions. As of September 30, 2023, the Company was in compliance with all applicable covenants, including financial covenants. T he Notes are unsecured senior obligations of the Company, are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank equally in right of payment to the Unsecured Revolving Loan described below. Unsecured Revolving Loan On June 30, 2023, the Company entered into a committed and unsecured $40.0 million revolving credit line with JP Morgan Chase Bank, N.A. This agreement succeeded the previous $37.5 million revolving credit line with J.P. Morgan Chase, N.A., entered into on October 31, 2022. As of September 30, 2023, the Company has not borrowed any amount under this revolving loan. The Company must pay an annual commitment of 0.50% of the unused portion of the commitment. Borrowings mature on June 29, 2024, 364 days after the inception date and carry an interest rate of prime rate plus a margin of 2% . The credit line is subject to annual renewals. The credit line contains customary financial and other covenants, with which the Company is in compliance. Interest Expense The following table provides interest expense related to long-term debt during the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest Expense: Surplus note $ 47 $ 49 $ 146 $ 115 5.625% Senior unsecured notes 1,407 1,406 4,219 4,328 Non-cash expense (1) 177 175 531 526 Total $ 1,631 $ 1,630 $ 4,896 $ 4,969 (1) Represents amortization of debt issuance costs. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity From time to time, the Company’s Board of Directors may authorize share repurchase programs under which the Company may repurchase shares of the Company’s common stock in the open market. The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Repurchased During the Aggregate Price Per Plan Dollar Amount Nine Months Ended September 30, Purchase Share Completed or Date Authorized Expiration Date Authorized 2023 2022 Price Repurchased Expired June 12, 2023 June 10, 2025 $ 20,000 889,566 — $ 12,231 $ 13.75 December 15, 2022 (1) December 15, 2024 $ 7,997 400,691 — $ 6,154 $ 15.36 August 2023 November 3, 2020 (1) November 3, 2022 $ 20,000 — 806,324 $ 9,800 $ 12.15 November 2022 (1) In November 2020, our Board of Directors authorized a share repurchase of up to $20 million of shares of common stock, which expired in November 2022. At the end of this prior authorization, the Company had repurchased slightly more than $12 million of shares of common stock. On December 15, 2022, our Board of Directors authorized a successor share repurchase program under which the Company was authorized to repurchase up to $8.0 million of shares of common stock through December 15, 2024, which represented the unused portion of the predecessor authorization. See the “Condensed Consolidated Statements of Stockholders’ Equity” for a roll-forward of treasury shares. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities at the enacted tax rates. We review our deferred tax assets regularly for recoverability. As of September 30, 2023, we determined that we did not need a valuation allowance on our gross deferred tax assets. Although realization of the deferred tax assets is not assured, management believes that it is more likely than not the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes. For the nine months ended September 30, 2023, there was no current reporting period activity recorded in the operating statement or the balance sheet related to uncertain tax positions. The effective tax rate for the three months ended September 30, 2023 was 24.9% compared to 22.5% for the same period last year. The effective tax rate for the nine months ended September 30, 2023 was 25.0% compared to 21.2% for the same period last year. The provision for income taxes differed from the statutory rate as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Federal statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increases (decrease) resulting from: State income tax, net of federal tax benefit 9.5 % 1.5 % 1.5 % 0.5 % Disallowed compensation (6.5) % (0.1) % 2.8 % (1.8) % Effect of rate change — % — % — % 1.4 % Nondeductible expenses (0.1) % — % 0.3 % (0.1) % Dividend received deduction 1.2 % 0.1 % (0.5) % 0.3 % Other, net (0.2) % — % (0.1) % (0.1) % Effective tax rate 24.9 % 22.5 % 25.0 % 21.2 % |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is computed based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from the impact of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stock, and conversion of preferred stock. In loss periods, the impact of common shares issuable upon the exercises of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stock, and conversion of preferred stock are excluded from the calculation of diluted loss per share, as the inclusion of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units, non-vested restricted stocks, and conversion of preferred stock would have an anti-dilutive effect. There is no difference between basic and diluted loss per share. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings (loss) per share computations for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator for EPS: Net income (loss) $ (5,915) $ (72,275) $ 46,824 $ (47,368) Less: Preferred stock dividends (3) (3) (8) (8) Income (loss) available to common stockholders $ (5,918) $ (72,278) $ 46,816 $ (47,376) Denominator for EPS: Weighted average common shares outstanding 29,617 30,604 30,087 30,858 Plus: Assumed conversion of share-based compensation (1) — — 266 — Assumed conversion of preferred stock — — 25 — Weighted average diluted common shares outstanding 29,617 30,604 30,378 30,858 Basic earnings (loss) per common share $ (0.20) $ (2.36) $ 1.56 $ (1.54) Diluted earnings (loss) per common share $ (0.20) $ (2.36) $ 1.54 $ (1.54) (1) Represents the dilutive effect of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units and non-vested restricted stock. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2023 2022 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (14,942) $ (3,677) $ (11,265) $ (36,715) $ (9,026) $ (27,689) Less: Reclassification adjustments for (gains) losses realized in net income (loss) 10 3 7 210 52 158 Other comprehensive income (loss) $ (14,932) $ (3,674) $ (11,258) $ (36,505) $ (8,974) $ (27,531) Nine Months Ended September 30, 2023 2022 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (5,151) $ (1,266) $ (3,885) $ (134,148) $ (32,978) $ (101,170) Less: Reclassification adjustments for (gains) losses realized in net income (loss) 732 180 552 1,423 350 1,073 Other comprehensive income (loss) $ (4,419) $ (1,086) $ (3,333) $ (132,725) $ (32,628) $ (100,097) The following table provides the reclassification adjustments for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Details about Accumulated Amount Reclassified from Accumulated Affected Line Item in the Statement Where Net Three Months Ended Nine Months Ended 2023 2022 2023 2022 Unrealized gains (losses) on $ (10) $ (210) $ (732) $ (1,423) Net realized gains (losses) on 3 52 180 350 Income tax expense (benefit) Total reclassification for the period $ (7) $ (158) $ (552) $ (1,073) Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts The Company purchases reinsurance coverage to protect its capital and to limit its losses when certain major events occur. The Company’s reinsurance commitments generally run from June 1 st of the current year to May 31 st of the following year. Certain of the Company’s reinsurance agreements are for periods longer than one year. Amounts payable for coverage during the current June 1 st to May 31 st contract period are recorded as “Reinsurance Payable, net” in the Condensed Consolidated Balance Sheet. Multi-year contract commitments for future years will be recorded at the commencement of the coverage period. Amounts payable for future reinsurance contract years that the Company is obligated to pay are: (1) $72.7 million in 2024 and (2) $52.6 million in 2025. Lawsuits and Legal Proceedings From time to time, lawsuits are filed against the Company or the Company may become involved in other legal proceedings. Many of these lawsuits or legal proceedings involve claims under policies that the Company underwrites and for which it reserves. The Company is also involved in various other legal proceedings and litigation unrelated to claims under the Company’s policies that arise in the ordinary course of business operations. The Company contests liability and/or the amount of damages as it considers appropriate according to the facts and circumstances of each matter. The Insurance Entities are obligated by regulation and by contract to commute their losses under reimbursement agreements with the FHCF. The commutation process results in a final estimate of, and payment to the insurer for, remaining reimbursable losses attributable to a reimbursement contract year in exchange for a release of future FHCF obligations for that contract year. On June 1, 2023, the Insurance Entities began their respective commutation processes for the 2017-18 reimbursement contract year. In the third quarter, each of the Insurance Entities successfully reached an agreement with the FHCF on the amount of the FHCF’s final payment in commutation without the need for dispute resolution. In accordance with applicable accounting guidance, the Company establishes reserves intended to encompass claims-related lawsuits or legal proceedings and establishes an accrued liability for other legal matters when those matters present loss contingencies that are both probable and estimable. Lawsuits and legal proceedings are subject to many uncertain factors that generally cannot be predicted with certainty, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates that the reasonably possible losses for legal matters in excess of a related accrued liability, including reserves, or where there is no accrued liability, and for which the Company is able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: • Level 1 — Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Summary of Significant Valuation Techniques for Assets Measured at Fair Value on a Recurring Basis Level 1 Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. Mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. Level 2 U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate bonds: Comprise investment-grade debt securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance, and credit spreads. Municipal bonds: Comprise debt securities issued by a state, municipality, or county. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Redeemable preferred stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. As required by GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of September 30, 2023 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 24,757 $ — $ 24,757 Corporate bonds — 699,357 — 699,357 Mortgage-backed and asset-backed securities — 283,771 — 283,771 Municipal bonds — 14,713 — 14,713 Redeemable preferred stock — 8,960 — 8,960 Equity Securities: Common stock 14,786 — — 14,786 Mutual funds 62,209 — — 62,209 Total assets accounted for at fair value $ 76,995 $ 1,031,558 $ — $ 1,108,553 Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 11,664 $ — $ 11,664 Corporate bonds — 695,061 — 695,061 Mortgage-backed and asset-backed securities — 287,607 — 287,607 Municipal bonds — 12,371 — 12,371 Redeemable preferred stock — 7,923 — 7,923 Equity Securities: Common stock 15,313 — — 15,313 Mutual funds 70,156 — — 70,156 Total assets accounted for at fair value $ 85,469 $ 1,014,626 $ — $ 1,100,095 The Company utilizes third-party independent pricing services that provide a price quote for each available-for-sale debt security and equity security. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any available-for-sale debt security or equity security included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): As of September 30, 2023 As of December 31, 2022 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Liabilities (debt): Surplus note (1) $ 4,411 $ 4,151 $ 5,515 $ 5,126 5.625% Senio r unsecured notes (2) 100,000 91,564 100,000 100,350 Total debt $ 104,411 $ 95,715 $ 105,515 $ 105,476 (1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for the purpose of establishing the fair value of the note (Level 3). (2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company utilizes a captive reinsurance arrangement that uses Isosceles Insurance Ltd., a Bermuda licensed insurance company, pursuant to which the parties established a Bermuda separate account named “Separate Account UVE-01” as UVE’s captive. This captive is a VIE in the normal course of business and is consolidated since the Company is the primary beneficiary. The VIE files a federal tax return; however, the VIE is domiciled in Bermuda and therefore is not subject to state income taxes. Effective June 1, 2023, the VIE entered into a new reinsurance arrangement with UPCIC and APPCIC for the 2023-2024 All States Reinsurance Program. On June 1, 2022, the VIE entered into a reinsurance arrangement with UPCIC, which was effective June 1, 2022 through May 31, 2023. On September 28, 2022, Hurricane Ian made landfall on the Gulf Coast of Florida which triggered a full policy limit loss, totaling $66 million. Amounts due under this policy were fully paid in September 2022 by the VIE to UPCIC, pursuant to the terms of the agreement. The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash held in a reinsurance trust account, which can be used only to settle specific reinsurance obligations of the VIE as of the dates presented (in thousands): As of September 30, 2023 December 31, 2022 Restricted cash and cash equivalents $ 66,853 $ — |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the condensed consolidated financial statements as of September 30, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ (5,915) | $ 28,566 | $ 24,173 | $ (72,275) | $ 7,370 | $ 17,537 | $ 46,824 | $ (47,368) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 28, 2023. The Condensed Consolidated Balance Sheet at December 31, 2022 was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ condensed consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries, as well as variable interest entities (“VIE”) in which the Company is determined to be the primary beneficiary. All material intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates is in the recognition of liabilities for unpaid losses, loss adjustment expenses, subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cost or Amortized Cost and Fair Value of Securities Available for Sale | The following table provides the amortized cost and fair value of available-for-sale debt securities as of the dates presented (in thousands): September 30, 2023 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 25,950 $ — $ — $ (1,193) $ 24,757 Corporate bonds 791,691 (537) 37 (91,834) 699,357 Mortgage-backed and asset-backed securities 328,327 — 15 (44,571) 283,771 Municipal bonds 17,139 (4) — (2,422) 14,713 Redeemable preferred stock 10,860 (142) — (1,758) 8,960 Total $ 1,173,967 $ (683) $ 52 $ (141,778) $ 1,031,558 December 31, 2022 Amortized Allowance for Expected Credit Losses Gross Gross Fair Value Debt Securities: U.S. government obligations and agencies $ 12,602 $ — $ — $ (938) $ 11,664 Corporate bonds 788,737 (729) 130 (93,077) 695,061 Mortgage-backed and asset-backed securities 327,166 — 148 (39,707) 287,607 Municipal bonds 14,924 (2) — (2,551) 12,371 Redeemable preferred stock 9,423 (189) — (1,311) 7,923 Total $ 1,152,852 $ (920) $ 278 $ (137,584) $ 1,014,626 |
Schedule of Credit Quality of Investment Securities | The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): September 30, 2023 December 31, 2022 Average Credit Ratings Fair Value % of Total Fair Value % of Total AAA $ 312,769 30.3 % $ 297,475 29.3 % AA 130,994 12.7 % 154,975 15.3 % A 346,486 33.6 % 327,427 32.3 % BBB 240,563 23.3 % 232,316 22.9 % No Rating Available 746 0.1 % 2,433 0.2 % Total $ 1,031,558 100.0 % $ 1,014,626 100.0 % |
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Amortized Fair Value Amortized Fair Value Mortgage-backed securities: Agency $ 164,291 $ 135,263 $ 157,672 $ 133,928 Non-agency 63,960 53,119 60,328 50,478 Asset-backed securities: Auto loan receivables 54,287 52,588 62,128 59,370 Credit card receivables 1,657 1,614 657 612 Other receivables 44,132 41,187 46,381 43,219 Total $ 328,327 $ 283,771 $ 327,166 $ 287,607 |
Schedule of Fair Value and Gross Unrealized Losses on Securities Available for Sale | The following tables summarize available-for-sale debt securities, aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position, for which no allowance for expected credit losses has been recorded as of the dates presented (in thousands): September 30, 2023 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 8 $ 20,094 $ (457) 5 $ 6,645 $ (734) Corporate bonds 17 6,768 (47) 296 362,421 (52,225) Mortgage-backed and asset-backed securities 38 60,995 (1,813) 186 220,254 (42,762) Municipal bonds 3 1,414 (30) 3 6,756 (1,323) Redeemable preferred stock 2 784 (74) 4 1,102 (235) Total 68 $ 90,055 $ (2,421) 494 $ 597,178 $ (97,279) December 31, 2022 Less Than 12 Months 12 Months or Longer Number of Fair Value Unrealized Number of Fair Value Unrealized Debt Securities: U.S. government obligations and agencies 2 $ 2,721 $ (110) 5 $ 8,943 $ (828) Corporate bonds 40 26,563 (2,910) 247 325,992 (46,451) Mortgage-backed and asset-backed securities 64 52,751 (2,974) 146 219,189 (36,733) Municipal bonds — — — 3 6,621 (1,458) Redeemable preferred stock 1 95 (51) — — — Total 107 $ 82,130 $ (6,045) 401 $ 560,745 $ (85,470) |
Schedule of Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a reconciliation of the beginning and ending balances for expected credit losses on available-for-sale debt securities (in thousands): Corporate Bonds Municipal Bonds Redeemable Total Balance, December 31, 2021 $ 371 $ 1 $ 117 $ 489 Provision for (or reversal of) credit loss expense 358 1 72 431 Balance, December 31, 2022 729 2 189 920 Provision for (or reversal of) credit loss expense (192) 2 (47) (237) Balance, September 30, 2023 $ 537 $ 4 $ 142 $ 683 |
Schedule of Amortized Cost and Fair Value of Investments With Contractual Maturities | The following table presents the amortized cost and fair value of investments with maturities as of the date presented (in thousands): September 30, 2023 Amortized Cost Fair Value Due in one year or less $ 110,000 $ 107,919 Due after one year through five years 593,152 539,398 Due after five years through ten years 434,732 356,024 Due after ten years 32,281 25,091 Perpetual maturity securities 3,802 3,126 Total $ 1,173,967 $ 1,031,558 |
Schedule of Securities Available for Sale | The following table provides certain information related to available-for-sale debt securities, equity securities and investment in real estate during the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Proceeds from sales and maturities (fair value): Available-for-sale debt securities $ 34,934 $ 30,929 $ 81,661 $ 84,146 Equity securities $ 5,597 $ 8,975 $ 42,830 $ 26,667 Gross realized gains on sale of securities: Available-for-sale debt securities $ 29 $ — $ 34 $ 242 Equity securities $ 18 $ 571 $ 1,570 $ 1,119 Gross realized losses on sale of securities: Available-for-sale debt securities $ (39) $ (210) $ (766) $ (1,665) Equity securities $ (439) $ (69) $ (1,175) $ (71) |
Schedule of Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Available-for-sale debt securities $ 6,325 $ 4,847 $ 18,122 $ 13,791 Equity securities 953 740 2,874 1,965 Cash and cash equivalents (1) 5,961 1,069 15,113 1,324 Other (2) 127 122 395 371 Total investment income 13,366 6,778 36,504 17,451 Less: Investment expenses (3) (611) (704) (1,769) (2,114) Net investment income $ 12,755 $ 6,074 $ 34,735 $ 15,337 (1) Includes interest earned on restricted cash and cash equivalents. (2) Includes investment income earned on real estate investments. (3) Includes custodial fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Schedule of Details on Realized and Unrealized Gains and Losses Related to Equity Securities | The following table provides the unrealized gains and losses recognized for the periods presented on equity securities still held at the end of the reported period (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period $ (1,129) $ (4,150) $ (831) $ (16,387) |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): September 30, December 31, 2023 2022 Income Producing: Investment real estate $ 7,097 $ 7,097 Less: Accumulated depreciation (1,525) (1,386) Investment real estate, net $ 5,572 $ 5,711 |
Schedule of Depreciation Expense Related to Investment Real Estate | The following table provides the depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Depreciation expense on investment real estate $ 46 $ 46 $ 139 $ 139 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Ratings from Rating Agencies and Unsecured Amounts Due from Reinsurers Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2023 Due from as of Reinsurer AM Best Standard Moody’s September 30, 2023 December 31, 2022 Florida Hurricane Catastrophe Fund “FHCF” (1) n/a n/a n/a $ 62,095 $ 134,411 Various Lloyd’s of London Syndicates (2) A A+ n/a 34,367 101,482 DaVinci Reinsurance Ltd. A A+ A3 28,586 48,115 Renaissance Reinsurance Ltd. A+ A+ A1 20,935 38,768 Chubb Tempest Reinsurance, Ltd. A++ AA Aa3 18,194 51,319 Ada Re, Ltd (3) n/a n/a n/a 12,251 — Everest Reinsurance Co A+ A+ A1 11,668 11,536 Upsilon RFO RE Ltd. (3) n/a n/a n/a 10,930 11,201 Aeolus Re Ltd. (3) n/a n/a n/a 10,493 — Allianz Risk Transfer (Bermuda) Ltd. n/a n/a n/a — 285,323 Markel Bermuda Ltd. n/a n/a n/a — 50,981 D E Shaw Re (Bermuda) Ltd. (3) n/a n/a n/a — 16,680 Munich Reinsurance America Inc. n/a n/a n/a — 14,616 Lumen Re Ltd. n/a n/a n/a — 8,913 Total (4) $ 209,519 $ 773,345 (1) No rating is available, because the fund is not rated. (2) No rating available for Moody’s Investors Service, Inc. (3) No rating is available, because the reinsurer is fully collateralized with a trust agreement. (4) Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses. |
Schedule of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2023 2022 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 531,988 $ 474,311 $ 308,860 $ 500,677 $ 452,450 $ 1,269,344 Ceded 2,717 (143,271) (20,888) (23,956) (161,819) (938,900) Net $ 534,705 $ 331,040 $ 287,972 $ 476,721 $ 290,631 $ 330,444 Nine Months Ended September 30, 2023 2022 Premiums Premiums Losses and Loss Premiums Premiums Losses and Loss Direct $ 1,489,216 $ 1,393,003 $ 770,161 $ 1,429,685 $ 1,295,858 $ 1,724,729 Ceded (573,539) (476,465) (52,308) (670,339) (459,102) (1,008,875) Net $ 915,677 $ 916,538 $ 717,853 $ 759,346 $ 836,756 $ 715,854 |
Schedule of Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2023 2022 Prepaid reinsurance premiums $ 379,501 $ 282,427 Reinsurance recoverable on paid losses and LAE $ 66,299 $ 10,170 Reinsurance recoverable on unpaid losses and LAE 256,687 798,680 Reinsurance recoverable $ 322,986 $ 808,850 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Beginning and Ending Balances and Changes in DPAC, Net of DRCC | The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 DPAC, beginning of period $ 107,047 $ 110,983 $ 103,654 $ 108,822 Capitalized Costs 60,470 55,552 167,357 165,983 Amortization of DPAC (52,927) (54,674) (156,421) (162,944) DPAC, end of period $ 114,590 $ 111,861 $ 114,590 $ 111,861 |
Schedule of Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC | The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differs from GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Statutory capital and surplus UPCIC $ 294,002 $ 400,866 APPCIC $ 24,802 $ 22,786 Ten percent of total liabilities UPCIC $ 164,130 $ 151,190 APPCIC $ 2,551 $ 2,023 The following table summarizes combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Combined net income (loss) $ (77,035) $ (67,404) $ (105,440) $ (79,479) The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, 2023 December 31, 2022 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,292 $ 3,246 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Changes in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Balance at beginning of period $ 663,019 $ 186,349 $ 1,038,790 $ 346,216 Less: Reinsurance recoverable (495,250) (18,972) (798,680) (115,860) Net balance at beginning of period 167,769 167,377 240,110 230,356 Incurred related to: Current year 270,266 327,729 683,004 708,774 Prior years 17,706 2,715 34,849 7,080 Total incurred 287,972 330,444 717,853 715,854 Paid related to: Current year 178,384 216,735 369,425 453,350 Prior years (16,963) 57,227 294,218 269,001 Total paid 161,421 273,962 663,643 722,351 Net balance at end of period 294,320 223,859 294,320 223,859 Plus: Reinsurance recoverable 256,687 929,768 256,687 929,768 Balance at end of period $ 551,007 $ 1,153,627 $ 551,007 $ 1,153,627 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2023 2022 Surplus note $ 4,411 $ 5,515 5.625% Senior unsecured notes 100,000 100,000 Total principal amount 104,411 105,515 Less: unamortized debt issuance costs (2,215) (2,746) Total long-term debt, net $ 102,196 $ 102,769 |
Schedule of Interest Expense | The following table provides interest expense related to long-term debt during the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest Expense: Surplus note $ 47 $ 49 $ 146 $ 115 5.625% Senior unsecured notes 1,407 1,406 4,219 4,328 Non-cash expense (1) 177 175 531 526 Total $ 1,631 $ 1,630 $ 4,896 $ 4,969 (1) Represents amortization of debt issuance costs. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | The following table presents repurchases of the Company’s common stock for the periods presented (in thousands, except total number of shares repurchased and per share data): Total Number of Shares Average Repurchased During the Aggregate Price Per Plan Dollar Amount Nine Months Ended September 30, Purchase Share Completed or Date Authorized Expiration Date Authorized 2023 2022 Price Repurchased Expired June 12, 2023 June 10, 2025 $ 20,000 889,566 — $ 12,231 $ 13.75 December 15, 2022 (1) December 15, 2024 $ 7,997 400,691 — $ 6,154 $ 15.36 August 2023 November 3, 2020 (1) November 3, 2022 $ 20,000 — 806,324 $ 9,800 $ 12.15 November 2022 (1) In November 2020, our Board of Directors authorized a share repurchase of up to $20 million of shares of common stock, which expired in November 2022. At the end of this prior authorization, the Company had repurchased slightly more than $12 million of shares of common stock. On December 15, 2022, our Board of Directors authorized a successor share repurchase program under which the Company was authorized to repurchase up to $8.0 million of shares of common stock through December 15, 2024, which represented the unused portion of the predecessor authorization. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciles Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The provision for income taxes differed from the statutory rate as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Federal statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increases (decrease) resulting from: State income tax, net of federal tax benefit 9.5 % 1.5 % 1.5 % 0.5 % Disallowed compensation (6.5) % (0.1) % 2.8 % (1.8) % Effect of rate change — % — % — % 1.4 % Nondeductible expenses (0.1) % — % 0.3 % (0.1) % Dividend received deduction 1.2 % 0.1 % (0.5) % 0.3 % Other, net (0.2) % — % (0.1) % (0.1) % Effective tax rate 24.9 % 22.5 % 25.0 % 21.2 % |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominator of Basic and Diluted Earnings (Loss) Per Share Computations | The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings (loss) per share computations for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator for EPS: Net income (loss) $ (5,915) $ (72,275) $ 46,824 $ (47,368) Less: Preferred stock dividends (3) (3) (8) (8) Income (loss) available to common stockholders $ (5,918) $ (72,278) $ 46,816 $ (47,376) Denominator for EPS: Weighted average common shares outstanding 29,617 30,604 30,087 30,858 Plus: Assumed conversion of share-based compensation (1) — — 266 — Assumed conversion of preferred stock — — 25 — Weighted average diluted common shares outstanding 29,617 30,604 30,378 30,858 Basic earnings (loss) per common share $ (0.20) $ (2.36) $ 1.56 $ (1.54) Diluted earnings (loss) per common share $ (0.20) $ (2.36) $ 1.54 $ (1.54) (1) Represents the dilutive effect of common shares issuable upon the exercise of stock options, non-vested performance share units, non-vested restricted stock units and non-vested restricted stock. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2023 2022 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (14,942) $ (3,677) $ (11,265) $ (36,715) $ (9,026) $ (27,689) Less: Reclassification adjustments for (gains) losses realized in net income (loss) 10 3 7 210 52 158 Other comprehensive income (loss) $ (14,932) $ (3,674) $ (11,258) $ (36,505) $ (8,974) $ (27,531) Nine Months Ended September 30, 2023 2022 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (5,151) $ (1,266) $ (3,885) $ (134,148) $ (32,978) $ (101,170) Less: Reclassification adjustments for (gains) losses realized in net income (loss) 732 180 552 1,423 350 1,073 Other comprehensive income (loss) $ (4,419) $ (1,086) $ (3,333) $ (132,725) $ (32,628) $ (100,097) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassification adjustments for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Details about Accumulated Amount Reclassified from Accumulated Affected Line Item in the Statement Where Net Three Months Ended Nine Months Ended 2023 2022 2023 2022 Unrealized gains (losses) on $ (10) $ (210) $ (732) $ (1,423) Net realized gains (losses) on 3 52 180 350 Income tax expense (benefit) Total reclassification for the period $ (7) $ (158) $ (552) $ (1,073) Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured for at Fair Value on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s assets measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of September 30, 2023 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 24,757 $ — $ 24,757 Corporate bonds — 699,357 — 699,357 Mortgage-backed and asset-backed securities — 283,771 — 283,771 Municipal bonds — 14,713 — 14,713 Redeemable preferred stock — 8,960 — 8,960 Equity Securities: Common stock 14,786 — — 14,786 Mutual funds 62,209 — — 62,209 Total assets accounted for at fair value $ 76,995 $ 1,031,558 $ — $ 1,108,553 Fair Value Measurements As of December 31, 2022 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: U.S. government obligations and agencies $ — $ 11,664 $ — $ 11,664 Corporate bonds — 695,061 — 695,061 Mortgage-backed and asset-backed securities — 287,607 — 287,607 Municipal bonds — 12,371 — 12,371 Redeemable preferred stock — 7,923 — 7,923 Equity Securities: Common stock 15,313 — — 15,313 Mutual funds 70,156 — — 70,156 Total assets accounted for at fair value $ 85,469 $ 1,014,626 $ — $ 1,100,095 |
Schedule of Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): As of September 30, 2023 As of December 31, 2022 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Liabilities (debt): Surplus note (1) $ 4,411 $ 4,151 $ 5,515 $ 5,126 5.625% Senio r unsecured notes (2) 100,000 91,564 100,000 100,350 Total debt $ 104,411 $ 95,715 $ 105,515 $ 105,476 (1) The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for the purpose of establishing the fair value of the note (Level 3). (2) The fair value of the senior unsecured notes was determined based on pricing from quoted prices for similar assets in active markets and was included as Level 2. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents, on a consolidated basis, the balance sheet classification and exposure of restricted cash held in a reinsurance trust account, which can be used only to settle specific reinsurance obligations of the VIE as of the dates presented (in thousands): As of September 30, 2023 December 31, 2022 Restricted cash and cash equivalents $ 66,853 $ — |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | Sep. 30, 2023 state |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states | 19 |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 1,173,967 | $ 1,152,852 | |
Allowance for Expected Credit Losses | (683) | (920) | $ (489) |
Gross Unrealized Gains | 52 | 278 | |
Gross Unrealized Losses | (141,778) | (137,584) | |
Fair Value | 1,031,558 | 1,014,626 | |
U.S. government obligations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 25,950 | 12,602 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1,193) | (938) | |
Fair Value | 24,757 | 11,664 | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 791,691 | 788,737 | |
Allowance for Expected Credit Losses | (537) | (729) | |
Gross Unrealized Gains | 37 | 130 | |
Gross Unrealized Losses | (91,834) | (93,077) | |
Fair Value | 699,357 | 695,061 | |
Mortgage-backed and asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 328,327 | 327,166 | |
Allowance for Expected Credit Losses | 0 | 0 | |
Gross Unrealized Gains | 15 | 148 | |
Gross Unrealized Losses | (44,571) | (39,707) | |
Fair Value | 283,771 | 287,607 | |
Municipal bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 17,139 | 14,924 | |
Allowance for Expected Credit Losses | (4) | (2) | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2,422) | (2,551) | |
Fair Value | 14,713 | 12,371 | |
Redeemable preferred stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 10,860 | 9,423 | |
Allowance for Expected Credit Losses | (142) | (189) | $ (117) |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1,758) | (1,311) | |
Fair Value | $ 8,960 | $ 7,923 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 1,031,558 | $ 1,014,626 |
% of Total Fair Value | 100% | 100% |
AAA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 312,769 | $ 297,475 |
% of Total Fair Value | 30.30% | 29.30% |
AA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 130,994 | $ 154,975 |
% of Total Fair Value | 12.70% | 15.30% |
A | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 346,486 | $ 327,427 |
% of Total Fair Value | 33.60% | 32.30% |
BBB | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 240,563 | $ 232,316 |
% of Total Fair Value | 23.30% | 22.90% |
No Rating Available | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 746 | $ 2,433 |
% of Total Fair Value | 0.10% | 0.20% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,173,967 | $ 1,152,852 |
Fair Value | 1,031,558 | 1,014,626 |
Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 328,327 | 327,166 |
Fair Value | 283,771 | 287,607 |
Agency | Mortgage-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 164,291 | 157,672 |
Fair Value | 135,263 | 133,928 |
Non-agency | Mortgage-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 63,960 | 60,328 |
Fair Value | 53,119 | 50,478 |
Auto loan receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,287 | 62,128 |
Fair Value | 52,588 | 59,370 |
Credit card receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,657 | 657 |
Fair Value | 1,614 | 612 |
Other receivables | Asset-backed securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 44,132 | 46,381 |
Fair Value | $ 41,187 | $ 43,219 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Details) $ in Thousands | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 68 | 107 |
Less than 12 months, Fair value | $ 90,055 | $ 82,130 |
Less than 12 months, Unrealized losses | $ (2,421) | $ (6,045) |
12 months or longer, Number of issues | security | 494 | 401 |
12 months or longer, Fair value | $ 597,178 | $ 560,745 |
12 months or longer, Unrealized losses | $ (97,279) | $ (85,470) |
Fixed Maturities | U.S. government obligations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 8 | 2 |
Less than 12 months, Fair value | $ 20,094 | $ 2,721 |
Less than 12 months, Unrealized losses | $ (457) | $ (110) |
12 months or longer, Number of issues | security | 5 | 5 |
12 months or longer, Fair value | $ 6,645 | $ 8,943 |
12 months or longer, Unrealized losses | $ (734) | $ (828) |
Fixed Maturities | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 17 | 40 |
Less than 12 months, Fair value | $ 6,768 | $ 26,563 |
Less than 12 months, Unrealized losses | $ (47) | $ (2,910) |
12 months or longer, Number of issues | security | 296 | 247 |
12 months or longer, Fair value | $ 362,421 | $ 325,992 |
12 months or longer, Unrealized losses | $ (52,225) | $ (46,451) |
Fixed Maturities | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 38 | 64 |
Less than 12 months, Fair value | $ 60,995 | $ 52,751 |
Less than 12 months, Unrealized losses | $ (1,813) | $ (2,974) |
12 months or longer, Number of issues | security | 186 | 146 |
12 months or longer, Fair value | $ 220,254 | $ 219,189 |
12 months or longer, Unrealized losses | $ (42,762) | $ (36,733) |
Fixed Maturities | Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 3 | 0 |
Less than 12 months, Fair value | $ 1,414 | $ 0 |
Less than 12 months, Unrealized losses | $ (30) | $ 0 |
12 months or longer, Number of issues | security | 3 | 3 |
12 months or longer, Fair value | $ 6,756 | $ 6,621 |
12 months or longer, Unrealized losses | $ (1,323) | $ (1,458) |
Fixed Maturities | Redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Number of issues | security | 2 | 1 |
Less than 12 months, Fair value | $ 784 | $ 95 |
Less than 12 months, Unrealized losses | $ (74) | $ (51) |
12 months or longer, Number of issues | security | 4 | 0 |
12 months or longer, Fair value | $ 1,102 | $ 0 |
12 months or longer, Unrealized losses | $ (235) | $ 0 |
Investments - AFS Allowance for
Investments - AFS Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | $ 920 | $ 489 |
Provision for (or reversal of) credit loss expense | (237) | 431 |
Expected credit loss on available-for-sale debt securities at end of period | 683 | 920 |
Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 729 | 371 |
Provision for (or reversal of) credit loss expense | (192) | 358 |
Expected credit loss on available-for-sale debt securities at end of period | 537 | 729 |
Municipal Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 2 | 1 |
Provision for (or reversal of) credit loss expense | 2 | 1 |
Expected credit loss on available-for-sale debt securities at end of period | 4 | 2 |
Redeemable Preferred Stock | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Expected credit loss on available-for-sale debt securities at beginning of period | 189 | 117 |
Provision for (or reversal of) credit loss expense | (47) | 72 |
Expected credit loss on available-for-sale debt securities at end of period | $ 142 | $ 189 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 110,000 | |
Due after one year through five years | 593,152 | |
Due after five years through ten years | 434,732 | |
Due after ten years | 32,281 | |
Perpetual maturity securities | 3,802 | |
Amortized Cost | 1,173,967 | $ 1,152,852 |
Fair Value | ||
Due in one year or less | 107,919 | |
Due after one year through five years | 539,398 | |
Due after five years through ten years | 356,024 | |
Due after ten years | 25,091 | |
Perpetual maturity securities | 3,126 | |
Fair Value | $ 1,031,558 | $ 1,014,626 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales and maturities (fair value) available for sale on debt securities | $ 34,934 | $ 30,929 | $ 81,661 | $ 84,146 |
Proceeds from sales and maturities equity securities | 5,597 | 8,975 | 42,830 | 26,667 |
Gross realized gains on available for sale on debt securities | 29 | 0 | 34 | 242 |
Gross realized gains on available for sale equity securities | 18 | 571 | 1,570 | 1,119 |
Gross realized losses on available for sale on debt securities | (39) | (210) | (766) | (1,665) |
Gross realized losses on equity securities | $ (439) | $ (69) | $ (1,175) | $ (71) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 13,366 | $ 6,778 | $ 36,504 | $ 17,451 |
Less: Investment expenses | (611) | (704) | (1,769) | (2,114) |
Net investment income | 12,755 | 6,074 | 34,735 | 15,337 |
Available-for-sale debt securities | ||||
Net Investment Income [Line Items] | ||||
Investment income | 6,325 | 4,847 | 18,122 | 13,791 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Investment income | 953 | 740 | 2,874 | 1,965 |
Cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Investment income | 5,961 | 1,069 | 15,113 | 1,324 |
Other | ||||
Net Investment Income [Line Items] | ||||
Investment income | $ 127 | $ 122 | $ 395 | $ 371 |
Investments - Summary of Detail
Investments - Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) recognized during the reported period on equity securities still held at the end of the reported period | $ (1,129) | $ (4,150) | $ (831) | $ (16,387) |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 5,572 | $ 5,711 |
Income Producing: | ||
Real Estate [Line Items] | ||
Investment real estate | 7,097 | 7,097 |
Less: Accumulated depreciation | (1,525) | (1,386) |
Investment real estate, net | $ 5,572 | $ 5,711 |
Investments - Schedule of Depre
Investments - Schedule of Depreciation Expense Related to Investment Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Real Estate Investment | ||||
Real Estate [Line Items] | ||||
Depreciation expense on investment real estate | $ 46 | $ 46 | $ 139 | $ 139 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity, Total | Amounts Due From Reinsurers | Customers with Greater than 3% of Equity | |
Effects of Reinsurance [Line Items] | |
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | $ 209,519 | $ 773,345 |
Florida Hurricane Catastrophe Fund “FHCF” | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 62,095 | 134,411 |
Ada Re, Ltd | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 12,251 | 0 |
Upsilon RFO Re Ltd | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 10,930 | 11,201 |
Aeolus Re Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 10,493 | 0 |
Allianz Risk Transfer (Bermuda) Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 285,323 |
Markel Bermuda Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 50,981 |
D E Shaw Re (Bermuda) Ltd | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 16,680 |
Munich Reinsurance America Inc. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 14,616 |
Lumen Re Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 0 | 8,913 |
AM Best, A Rating | Standard & Poor's, A Plus Rating | Various Lloyd’s of London Syndicates | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 34,367 | 101,482 |
AM Best, A Rating | Standard & Poor's, A Plus Rating | Moody's, A3 Rating | DaVinci Reinsurance Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 28,586 | 48,115 |
AM Best Company A Plus Rating | Standard & Poor's, A Plus Rating | Moody's A1 Rating | Renaissance Reinsurance Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 20,935 | 38,768 |
AM Best Company A Plus Rating | Standard & Poor's, A Plus Rating | Moody's A1 Rating | Everest Reinsurance Co | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | 11,668 | 11,536 |
AM Best, A++ Rating | Standard & Poor's, AA Rating | Moody's, Aa3 Rating | Chubb Tempest Reinsurance, Ltd. | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | $ 18,194 | $ 51,319 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reinsurance Disclosures [Abstract] | ||||
Direct premiums written | $ 531,988 | $ 500,677 | $ 1,489,216 | $ 1,429,685 |
Ceded premiums written | 2,717 | |||
Ceded premiums written | (23,956) | (573,539) | (670,339) | |
Net premiums written | 534,705 | 476,721 | 915,677 | 759,346 |
Direct premiums earned | 474,311 | 452,450 | 1,393,003 | 1,295,858 |
Ceded premiums earned | (143,271) | (161,819) | (476,465) | (459,102) |
Premiums earned, net | 331,040 | 290,631 | 916,538 | 836,756 |
Direct losses and loss adjustment expenses | 308,860 | 1,269,344 | 770,161 | 1,724,729 |
Ceded losses and loss adjustment expenses | (20,888) | (938,900) | (52,308) | (1,008,875) |
Net losses and loss adjustment expenses | $ 287,972 | $ 330,444 | $ 717,853 | $ 715,854 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums (Payable) and Reinsurance Recoverable and Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Reinsurance Disclosures [Abstract] | ||||||
Prepaid reinsurance premiums | $ 379,501 | $ 282,427 | ||||
Reinsurance recoverable on paid losses and LAE | 66,299 | 10,170 | ||||
Reinsurance recoverable on unpaid losses and LAE | 256,687 | $ 495,250 | 798,680 | $ 929,768 | $ 18,972 | $ 115,860 |
Reinsurance recoverable | $ 322,986 | $ 808,850 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Policy Acquisition Costs [Roll Forward] | ||||
DPAC, beginning of period | $ 107,047 | $ 110,983 | $ 103,654 | $ 108,822 |
Capitalized Costs | 60,470 | 55,552 | 167,357 | 165,983 |
Amortization of DPAC | (52,927) | (54,674) | (156,421) | (162,944) |
DPAC, end of period | $ 114,590 | $ 111,861 | $ 114,590 | $ 111,861 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
UPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Dividend paid to immediate parent company | $ 0 | |
APPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Dividend paid to immediate parent company | $ 0 | |
UPCIC and APPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Minimum capitalization rate | 10% | |
UPCIC and APPCIC | Minimum | ||
Statutory Accounting Practices [Line Items] | ||
Minimum capitalization amount | $ 15,000,000 |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
UPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 294,002 | $ 400,866 |
Ten percent of total liabilities | 164,130 | 151,190 |
APPCIC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 24,802 | 22,786 |
Ten percent of total liabilities | $ 2,551 | $ 2,023 |
Insurance Operations - Summary
Insurance Operations - Summary of Combined Net Income for UPCIC and APPCIC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Insurance [Abstract] | ||||
Combined net income (loss) | $ (77,035) | $ (67,404) | $ (105,440) | $ (79,479) |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 3,292 | $ 3,246 |
Restricted cash and cash equivalents | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 2,635 | $ 2,635 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 663,019 | $ 186,349 | $ 1,038,790 | $ 346,216 |
Less: Reinsurance recoverable | (495,250) | (18,972) | (798,680) | (115,860) |
Net balance at beginning of period | 167,769 | 167,377 | 240,110 | 230,356 |
Incurred related to current year | 270,266 | 327,729 | 683,004 | 708,774 |
Incurred related to prior years | 17,706 | 2,715 | 34,849 | 7,080 |
Total incurred | 287,972 | 330,444 | 717,853 | 715,854 |
Paid related to current year | 178,384 | 216,735 | 369,425 | 453,350 |
Paid related to prior years | (16,963) | |||
Paid related to prior years | 57,227 | 294,218 | 269,001 | |
Total paid | 161,421 | 273,962 | 663,643 | 722,351 |
Net balance at end of period | 294,320 | 223,859 | 294,320 | 223,859 |
Plus: Reinsurance recoverable | 256,687 | 929,768 | 256,687 | 929,768 |
Balance at end of period | $ 551,007 | $ 1,153,627 | $ 551,007 | $ 1,153,627 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred related to prior years | $ 17,706 | $ 2,715 | $ 34,849 | $ 7,080 |
Adverse Prior Years' Reserve Development | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred related to prior years | $ 2,700 | 7,100 | ||
Hurricane Irma | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred related to prior years | 7,000 | |||
Hurricane Matthew | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred related to prior years | $ 100 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 104,411 | $ 105,515 |
Less: unamortized debt issuance costs | (2,215) | (2,746) |
Total long-term debt, net | 102,196 | 102,769 |
Surplus note | ||
Debt Instrument [Line Items] | ||
Total principal amount | 4,411 | 5,515 |
5.625% Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 100,000 | $ 100,000 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | Jun. 30, 2023 | Nov. 23, 2021 | Sep. 30, 2023 | Oct. 31, 2022 | Dec. 31, 2006 |
Revolving Credit Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2% | ||||
2023 Revolving Loan | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | $ 37,500,000 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||
Line of credit facility, expiration period | 364 days | ||||
Surplus note | |||||
Debt Instrument [Line Items] | |||||
Unsecured term loan agreement | $ 25,000,000 | ||||
Note term | 20 years | ||||
Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Repurchased amount | $ 100,000,000 | ||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Unsecured term loan agreement | $ 100,000,000 | ||||
Stated percentage | 5.625% | 5.625% | |||
Maturity year of debt instrument | 2026 | ||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 102.8125% | ||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 101.40625% | ||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument [Line Items] | |||||
Redemption price | 100% |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Total | $ 1,631 | $ 1,630 | $ 4,896 | $ 4,969 |
Non-cash expense | 177 | 175 | 531 | 526 |
Surplus note | ||||
Debt Instrument [Line Items] | ||||
Total | 47 | 49 | 146 | 115 |
5.625% Senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Total | $ 1,407 | $ 1,406 | $ 4,219 | $ 4,328 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares Repurchased (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 15, 2022 | Nov. 30, 2020 | |
Equity [Line Items] | |||||||||
Shares repurchased during the period | $ 12,297,000 | $ 6,088,000 | $ 2,419,000 | $ 3,502,000 | $ 3,879,000 | ||||
Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | $ 12,000,000 | ||||||||
June 12, 2023 | |||||||||
Equity [Line Items] | |||||||||
Shares repurchased (in shares) | 889,566 | 0 | |||||||
Shares repurchased during the period | $ 12,231,000 | ||||||||
Shares repurchased during period (in USD per share) | $ 13.75 | ||||||||
June 12, 2023 | Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | 20,000,000 | $ 20,000,000 | |||||||
December 15, 2022 | |||||||||
Equity [Line Items] | |||||||||
Shares repurchased (in shares) | 400,691 | 0 | |||||||
Shares repurchased during the period | $ 6,154,000 | ||||||||
Shares repurchased during period (in USD per share) | $ 15.36 | ||||||||
December 15, 2022 | Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | $ 7,997,000 | $ 7,997,000 | $ 8,000,000 | ||||||
November 3, 2020 | |||||||||
Equity [Line Items] | |||||||||
Shares repurchased (in shares) | 0 | 806,324 | |||||||
Shares repurchased during the period | $ 9,800,000 | ||||||||
Shares repurchased during period (in USD per share) | $ 12.15 | ||||||||
November 3, 2020 | Maximum | |||||||||
Equity [Line Items] | |||||||||
Amount of stock repurchase plan authorized | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 24.90% | 22.50% | 25% | 21.20% |
Income Taxes - Reconciles Statu
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 21% | 21% | 21% | 21% |
Increases (decrease) resulting from: | ||||
State income tax, net of federal tax benefit | 9.50% | 1.50% | 1.50% | 0.50% |
Disallowed compensation | (6.50%) | (0.10%) | 2.80% | (1.80%) |
Effect of rate change | 0% | 0% | 0% | 1.40% |
Nondeductible expenses | (0.10%) | 0% | 0.30% | (0.10%) |
Dividend received deduction | 1.20% | 0.10% | (0.50%) | 0.30% |
Other, net | (0.20%) | 0% | (0.10%) | (0.10%) |
Effective tax rate | 24.90% | 22.50% | 25% | 21.20% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator for EPS: | ||||||||
Net income (loss) | $ (5,915) | $ 28,566 | $ 24,173 | $ (72,275) | $ 7,370 | $ 17,537 | $ 46,824 | $ (47,368) |
Less: Preferred stock dividends | (3) | (3) | (8) | (8) | ||||
Income (loss) available to common stockholders | $ (5,918) | $ (72,278) | $ 46,816 | $ (47,376) | ||||
Denominator for EPS: | ||||||||
Weighted average common shares outstanding (in shares) | 29,617 | 30,604 | 30,087 | 30,858 | ||||
Plus: Assumed conversion of share-based compensation (in shares) | 0 | 0 | 266 | 0 | ||||
Assumed conversion of preferred stock (in shares) | 0 | 0 | 25 | 0 | ||||
Weighted average diluted common shares outstanding (in shares) | 29,617 | 30,604 | 30,378 | 30,858 | ||||
Basic earnings (loss) per common share (in USD per share) | $ (0.20) | $ (2.36) | $ 1.56 | $ (1.54) | ||||
Diluted earnings (loss) per common share (in USD per share) | $ (0.20) | $ (2.36) | $ 1.54 | $ (1.54) |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
After-tax | ||||||||
Other comprehensive income (loss) | $ (11,258) | $ (5,866) | $ 13,791 | $ (27,531) | $ (29,656) | $ (42,910) | $ (3,333) | $ (100,097) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||||||
Pre-tax | ||||||||
Unrealized holding gains (losses) arising during the period | (14,942) | (36,715) | (5,151) | (134,148) | ||||
Less: Reclassification adjustments for (gains) losses realized in net income (loss) | 10 | 210 | 732 | 1,423 | ||||
Other comprehensive income (loss) | (14,932) | (36,505) | (4,419) | (132,725) | ||||
Tax | ||||||||
Unrealized holding gains (losses) arising during the period | (3,677) | (9,026) | (1,266) | (32,978) | ||||
Less: Reclassification adjustments for (gains) losses realized in net income (loss) | 3 | 52 | 180 | 350 | ||||
Other comprehensive income (loss) | (3,674) | (8,974) | (1,086) | (32,628) | ||||
After-tax | ||||||||
Unrealized holding gains (losses) arising during the period | (11,265) | (27,689) | (3,885) | (101,170) | ||||
Less: Reclassification adjustments for (gains) losses realized in net income (loss) | 7 | 158 | 552 | 1,073 | ||||
Other comprehensive income (loss) | $ (11,258) | $ (27,531) | $ (3,333) | $ (100,097) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net realized gains (losses) on sale on investments | $ (431) | $ 292 | $ (337) | $ (375) | ||||
Income tax expense (benefit) | 1,962 | 20,962 | (15,629) | 12,718 | ||||
Net income (loss) | (5,915) | $ 28,566 | $ 24,173 | (72,275) | $ 7,370 | $ 17,537 | 46,824 | (47,368) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net realized gains (losses) on sale on investments | (10) | (210) | (732) | (1,423) | ||||
Income tax expense (benefit) | 3 | 52 | 180 | 350 | ||||
Net income (loss) | $ (7) | $ (158) | $ (552) | $ (1,073) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Reinsurance Contracts: 2024-01-01 | |
Reinsurance Retention Policy [Line Items] | |
Reinsurance payable, due in fiscal year | $ 72.7 |
Reinsurance Contracts: 2025-01-01 | |
Reinsurance Retention Policy [Line Items] | |
Reinsurance payable, due in second year | $ 52.6 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,031,558 | $ 1,014,626 |
Equity Securities | 76,995 | 85,469 |
U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,757 | 11,664 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 699,357 | 695,061 |
Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 283,771 | 287,607 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,713 | 12,371 |
Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 8,960 | 7,923 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,108,553 | 1,100,095 |
Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,757 | 11,664 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 699,357 | 695,061 |
Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 283,771 | 287,607 |
Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,713 | 12,371 |
Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 8,960 | 7,923 |
Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 14,786 | 15,313 |
Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 62,209 | 70,156 |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 76,995 | 85,469 |
Level 1 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 14,786 | 15,313 |
Level 1 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 62,209 | 70,156 |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 1,031,558 | 1,014,626 |
Level 2 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,757 | 11,664 |
Level 2 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 699,357 | 695,061 |
Level 2 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 283,771 | 287,607 |
Level 2 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,713 | 12,371 |
Level 2 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 8,960 | 7,923 |
Level 2 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level 2 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | U.S. government obligations and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Redeemable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Nov. 23, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying Value | $ 104,411 | $ 105,515 | |
Estimated Fair Value | 95,715 | 105,476 | |
Surplus note | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying Value | $ 4,411 | 5,515 | |
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2026 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Stated percentage | 5.625% | 5.625% | |
Surplus note | Surplus note | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying Value | $ 4,411 | 5,515 | |
Estimated Fair Value | 4,151 | 5,126 | |
5.625% Senior unsecured notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Carrying Value | 100,000 | 100,000 | |
Estimated Fair Value | $ 91,564 | $ 100,350 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | Sep. 28, 2022 USD ($) |
Hurricane Ian | |
Variable Interest Entity [Line Items] | |
Ceded losses and loss adjustment expenses | $ 66 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Restricted cash and cash equivalents | [1] | $ 69,488 | $ 2,635 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Restricted cash and cash equivalents | $ 66,853 | $ 0 | |
[1]See “—Note 5 (Insurance Operations)” for a discussion of the nature of the restrictions for restricted cash and cash equivalents and "—Note 14(Variable Interest Entities)” for a discussion of restricted cash held in a trust account. |