Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill, both at December 31, 2021 and 2020 was $73,045,000. There was no goodwill acquired or disposed of during the years ended December 31, 2021 and 2020.

We completed our most recent goodwill impairment testing during the fourth quarter of 2021 and determined that there was no impairment in the value of the asset as of December 31, 2021. As of this testing, the carrying value of our personal lines reporting unit was negative. In addition, our commercial lines reporting unit’s fair value was 5.0% higher than the unit’s carrying value. Based on our analysis of our commercial lines results, market conditions, and future projections, we do not believe that our commercial lines reporting unit is at risk of being impaired in the future. Goodwill allocated to our personal lines and commercial lines reporting units was $13,570,000 and $59,475,000, respectively, at December 31, 2021.

No impairment loss in the value of goodwill was recognized during the years ended December 31, 2021, 2020 and 2019. Additionally, there was no accumulated impairment related to goodwill at December 31, 2021 or 2020.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at:


	December 31, 2021		December 31, 2020
Intangible assets subject to amortization	$	14,618	$	18,173
Indefinite-lived intangible assets(1)	3,757		3,757
Total	$	18,375	$	21,930

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:


	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
2021
Value of Business Acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	5.3	34,661		(21,863)		12,798
Trade names acquired	2.3	6,381		(4,561)		1,820
Total		$	83,830	$	(69,212)	$	14,618
2020
Value of Business Acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	6.1	34,661		(19,116)		15,545
Trade names acquired	3.3	6,381		(3,753)		2,628
Total		$	83,830	$	(65,657)	$	18,173

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the years ended December 31, 2021 and 2020.

Amortization expense of our intangible assets was $3,555,000, $4,267,000 and $5,355,000 for the years ended December 31, 2021, 2020 and 2019, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows:


Year ending December 31,	Estimated Amortization Expense
2022	$	3,246
2023	3,246
2024	2,640
2025	2,438
2026	2,438