Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill, both at March 31, 2022 and December 31, 2021, was $73,045,000. There was no goodwill acquired or disposed of during the three-month periods ended March 31, 2022 and 2021.

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 both March 31, 2022 and December 31, 2021.

No impairment loss in the value of goodwill was recognized during the three-month periods ended March 31, 2022 and 2021. Additionally, there was no accumulated impairment related to goodwill at March 31, 2022 or December 31, 2021.

Intangible Assets

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


	March 31, 2022		December 31, 2021
Intangible assets subject to amortization	$	13,806	$	14,618
Indefinite-lived intangible assets(1)	3,757		3,757
Total	$	17,563	$	18,375

(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
March 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	5.0	34,661		(22,472)		12,189
Trade names acquired	2.0	6,381		(4,764)		1,617
Total		$	83,830	$	(70,024)	$	13,806

December 31, 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

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2022 and 2021.

Amortization expense of our intangible assets was $812,000 and $1,043,000 for the three months ended March 31, 2022 and 2021, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2022 and over the next five years is as follows:


Year ending December 31,	Estimated Amortization Expense
Remaining in 2022	$	2,435
2023	3,246
2024	2,640
2025	2,438
2026	2,438
2027	609