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Captive Insurance Operations (Notes)
 12 Months Ended
Dec. 31, 2025
Captive Insurance Operations [Abstract]  
Insurance Disclosure Captive Insurance Operations
Effective January 1, 2025, the MSI Cell was licensed and participates as a quota share reinsurer on two of MSI’s multifamily programs, renters and master tenant legal liability, for the purpose of further participating in underwriting results. The reinsurance quota share contracts feature an adjustment to assumed premium based on the loss ratio performance of the business assumed.
As of December 31, 2025, assumed premium receivable was $18.5 million and is included as a component of assumed premiums, commissions and fees receivable, net on the consolidated balance sheet and accounted for as a funds withheld receivable, net of actual claims paid. As of December 31, 2025, assumed premiums unearned was $1.9 million and is included as a component of accrued expenses and other current liabilities on the consolidated balance sheet.
For the year ended December 31, 2025, assumed premium earned was $22.6 million and is included in commissions and fees in the consolidated statement of comprehensive loss. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. No such adjustments were made during the year ended December 31, 2025.
The table below provides a rollforward of unpaid losses and loss adjustment reserve:
(in thousands)For the Year Ended
December 31, 2025
Balance at beginning of period$— 
Incurred losses and LAE19,052 
Actual claims paid(5,980)
Balance at end of period$13,072 
In December 2024, the initial funding to capitalize the Captive was $12.1 million, provided by Baldwin Holdings substantially in the form of a letter of credit. During August 2025, the Tennessee Department of Commerce and Insurance accepted an amendment to the letter of credit, which reduced funding for the Captive to $8.1 million. The Captive maintains capital of $8.0 million in excess of the minimum statutory amount required by regulatory authorities. The statutory capital and surplus of the Captive was $10.0 million as of December 31, 2025, as allowed by prescribed practices by the Tennessee Department of Commerce and Insurance.