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Segment Reporting
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure
3)    SEGMENT REPORTING

Our reportable segments, while in the same industry, have experienced differences in loss patterns and profitability during 2021, which has led to a shift in how our CODM views these segments. In addition, the underwriting restrictions for our personal lines and commercial lines vary as we have experienced differences in the frequency, severity, and type of losses for each of these segments.

Personal Lines Business

Our personal lines business provides structure, content and liability coverage for standard single-family homeowners, renters and condominium unit owners, through our subsidiaries UPC, FSIC, and IIC. Personal residential products are offered in all states in which we write business. We include coverage to policyholders for loss or damage to dwellings, detached structures or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism.

We have developed a unique and proprietary homeowners’ product. This product uses a granular approach to pricing for catastrophe perils. We have focused on using independent agencies as a channel of distribution for our personal lines business. As of December 31, 2021, one agency, Allstate, represents more than 10% of our personal lines revenue. All of our personal lines business is managed internally.

Commercial Lines Business

Our commercial lines business primarily provides commercial multi-peril property insurance for residential condominium associations and apartments in Florida, through our subsidiaries ACIC and JIC. We include coverage to policyholders for loss or damage to buildings, inventory or equipment caused by covered causes of loss such as fire, wind, hail, water, theft and vandalism. During 2020, we began writing this commercial residential coverage through our subsidiary JIC, in South Carolina and Texas.

All of our commercial lines business is administered by outside managing general underwriters, AmRisc and International Catastrophe Insurance Managers (ICAT). AmRisc handles the underwriting, claims processing and premium collection for our
ACIC commercial business and JIC’s commercial business written in Florida. In return, AmRisc is reimbursed through monthly management fees. ICAT handles the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and are also reimbursed through monthly management fees.

Please note the following similarities pertaining to the accounting and transactions of our operating segments for the years ended December 31, 2021, 2020 and 2019:

•Both operating segments follow the accounting policies outlined in Note 2;
•Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the years ended December 31, 2020 and 2019.

The tables below presents the information for each of the reportable segments profit or loss as well as segment assets for the years ended December 31, 2021, 2020 and 2019.
Year Ended December 31, 2021
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$422,238 $907,207 $— $1,329,445 
Change in gross unearned premiums(11,975)90,973 — 78,998 
Gross premiums earned410,263 998,180 — 1,408,443 
Ceded premiums earned(237,056)(581,626)— (818,682)
Net premiums earned173,207 416,554 — 589,761 
Net investment income4,764 8,962 46 13,772 
Net realized gains (losses)(34)3,601 — 3,567 
Net unrealized gains on equity securities1,471 1,766 — 3,237 
Other revenue— 24,190 — 24,190 
Total revenues179,408 455,073 46 634,527 
EXPENSES:
Losses and loss adjustment expenses54,718 367,416 — 422,134 
Policy acquisition costs80,198 93,376 — 173,574 
Operating expenses4,873 51,004 380 56,257 
General and administrative expenses (2)
7,599 47,927 1,686 57,212 
Interest expense— 89 9,302 9,391 
Total expenses147,388 559,812 11,368 718,568 
Income (loss) before other income 32,020 (104,739)(11,322)(84,041)
Other income1 183 — 184 
Income (loss) before income taxes$32,021 $(104,556)(11,322)(83,857)
Benefit for income taxes(23,989)(23,989)
Net income (loss)$12,667 $(59,868)
Less: Net loss attributable to noncontrolling interests(1,949)(1,949)
Net income (loss) attributable to UIHC$14,616 $(57,919)
Loss ratio, net (3) (4)
31.6 %88.2 %71.6 %
Expense ratio (3) (5)
53.5 %46.2 %48.7 %
Combined ratio (3) (6)
85.1 %134.4 %120.3 %
Total segment assets$1,011,562 $1,234,875 $452,136 $2,698,573 
(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.
(2) Included in our General and Administrative expenses is $7,419,000 and $3,397,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.
(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.
(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.
(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.
(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.
Year Ended December 31, 2020
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$393,263 $1,063,600 $— $1,456,863 
Change in gross unearned premiums(3,456)(46,427)— (49,883)
Gross premiums earned389,807 1,017,173 — 1,406,980 
Ceded premiums earned(194,477)(446,840)— (641,317)
Net premiums earned195,330 570,333 — 765,663 
Net investment income7,882 15,723 520 24,125 
Net realized gains23,760 37,960 4,971 66,691 
Net unrealized losses on equity securities(9,506)(15,244)(2,812)(27,562)
Other revenue1 17,738 — 17,739 
Total revenues217,467 626,510 2,679 846,656 
EXPENSES:
Losses and loss adjustment expenses92,097 516,219 — 608,316 
Policy acquisition costs98,276 137,726 — 236,002 
Operating expenses3,440 49,255 181 52,876 
General and administrative expenses (2)
7,685 58,385 5,987 72,057 
Interest expense28 89 9,465 9,582 
Total expenses201,526 761,674 15,633 978,833 
Income (loss) before other income 15,941 (135,164)(12,954)(132,177)
Other income7 67 — 74 
Income (loss) before income taxes$15,948 $(135,097)(12,954)(132,103)
Benefit for income taxes(36,605)(36,605)
Net income (loss)$23,651 $(95,498)
Less: Net income attributable to noncontrolling interests956 956 
Net income (loss) attributable to UIHC$22,695 $(96,454)
Loss ratio, net (3) (4)
47.1 %90.5 %79.4 %
Expense ratio (3) (5)
56.0 %43.0 %47.1 %
Combined ratio (3) (6)
103.1 %133.5 %126.5 %
Total segment assets$939,691 $1,369,797 $539,453 $2,848,941 
(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items as these subsidiaries directly support our personal lines operations.
(2) Included in our General and Administrative expenses is $7,664,000 and $3,264,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.
(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.
(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.
(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.
(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.
Year Ended December 31, 2019
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$406,913 $973,355 $— $1,380,268 
Change in gross unearned premiums(10,318)(36,424)— (46,742)
Gross premiums earned396,595 936,931 — 1,333,526 
Ceded premiums earned(176,854)(404,272)— (581,126)
Net premiums earned219,741 532,659 — 752,400 
Net investment income11,005 17,984 1,156 30,145 
Net realized gains657 508 63 1,228 
Net unrealized gains on equity securities8,936 11,789 4,036 24,761 
Other revenue— 16,582 — 16,582 
Total revenues240,339 579,522 5,255 825,116 
EXPENSES:
Losses and loss adjustment expenses97,585 401,908 — 499,493 
Policy acquisition costs98,578 139,690 — 238,268 
Operating expenses2,979 41,111 220 44,310 
General and administrative expenses (2)
7,749 56,177 2,063 65,989 
Interest expense87 195 9,499 9,781 
Total expenses206,978 639,081 11,782 857,841 
Income (loss) before other income 33,361 (59,559)(6,527)(32,725)
Other income15 104 — 119 
Income (loss) before income taxes$33,376 $(59,455)(6,527)(32,606)
Benefit for income taxes(3,121)(3,121)
Net loss$(3,406)$(29,485)
Less: Net income attributable to noncontrolling interests387 387 
Net loss attributable to UIHC$(3,793)$(29,872)
Loss ratio, net (3) (4)
44.4 %75.5 %66.4 %
Expense ratio (3) (5)
49.7 %44.5 %46.3 %
Combined ratio (3) (6)
94.1 %120.0 %112.7 %
Total segment assets$921,143 $902,750 $643,325 $2,467,218 
(1) Our personal lines income statement also includes amounts related to subsidiaries outside of our insurance companies. We have included these items, as these subsidiaries directly support our personal lines operations.
(2) Included in our General and Administrative expenses is $8,745,000 and $3,252,000 of depreciation and amortization expense related to our personal and commercial assets, respectively.
(3) As these are calculated ratios, the addition of the ratios will not result in the same value as the consolidated ratio. To calculate the consolidated ratio please see the corresponding footnote below.
(4) Loss ratio, net is calculated as losses and LAE net of losses ceded to reinsurers, relative to net premiums earned. Management uses this operating metric to analyze our loss trends and believes it is useful for investors to evaluate this component separately from our other operating expenses.
(5) Expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned. Management uses this operating metric to analyze our expense trends and believes it is useful for investors to evaluate these components separately from our loss expenses.
(6) Combined ratio is the sum of the loss ratio, net and expense ratio. Management uses this operating metric to analyze our total expense trends and believes it is a key indicator for investors when evaluating the overall profitability of our business.