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Segment Reporting
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure
3)    SEGMENT REPORTING

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. 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. We also write 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 is also reimbursed through monthly management fees. In 2022, the Company terminated its agreement with ICAT. Termination of this agreement is effective May 31, 2022.

Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2022 and 2021:

•Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2021;
•Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the three months ended March 31, 2022 and 2021 and the receipt of HCI common stock during the three months ended March 31, 2021, in connection with our renewal rights agreement (Northeast Renewal Agreement) to sell UPC's personal lines homeowners business in Connecticut, Massachusetts, New Jersey and Rhode Island to HCPCI..

The tables below present the information for each of the reportable segments profit or loss as well as segment assets for the three months ended March 31, 2022 and 2021.
Three Months Ended March 31, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$127,964 $151,511 $— $279,475 
Change in gross unearned premiums(20,499)60,230 — 39,731 
Gross premiums earned107,465 211,741 — 319,206 
Ceded premiums earned(62,022)(156,327)— (218,349)
Net premiums earned45,443 55,414 — 100,857 
Net investment income1,127 1,342 9 2,478 
Net realized gains (losses)2 (1,771)— (1,769)
Net unrealized losses on equity securities(769)(1,498)(1)(2,268)
Other revenue— 3,068 — 3,068 
Total revenues45,803 56,555 8 102,366 
EXPENSES:
Losses and loss adjustment expenses14,114 77,254 — 91,368 
Policy acquisition costs16,678 9,338 — 26,016 
Operating expenses1,109 11,048 91 12,248 
General and administrative expenses (2)
2,320 13,304 381 16,005 
Interest expense— 20 2,359 2,379 
Total expenses34,221 110,964 2,831 148,016 
Income (loss) before other income 11,582 (54,409)(2,823)(45,650)
Other income (loss)— (267)1,610 1,343 
Income (loss) before income taxes$11,582 $(54,676)(1,213)(44,307)
Benefit for income taxes(11,050)(11,050)
Net income (loss)$9,837 $(33,257)
Less: Net loss attributable to noncontrolling interests(85)(85)
Net income (loss) attributable to UIHC$9,922 $(33,172)
Loss ratio, net (3) (4)
31.1 %139.4 %90.6 %
Expense ratio (3) (5)
44.2 %60.8 %53.8 %
Combined ratio (3) (6)
75.3 %200.2 %144.4 %
Total segment assets$949,359 $1,080,724 $399,372 $2,429,455 
(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 $1,512,000 and $885,000 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.
Three Months Ended March 31, 2021
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$108,040 $203,598 $— $311,638 
Change in gross unearned premiums(9,822)54,847 — 45,025 
Gross premiums earned98,218 258,445 — 356,663 
Ceded premiums earned(56,366)(154,348)— (210,714)
Net premiums earned41,852 104,097 — 145,949 
Net investment income1,222 2,350 11 3,583 
Net realized gains9 494 — 503 
Net unrealized losses on equity securities114 2,450 — 2,564 
Other revenue— 9,190 — 9,190 
Total revenues43,197 118,581 11 161,789 
EXPENSES:
Losses and loss adjustment expenses13,806 101,975 — 115,781 
Policy acquisition costs18,263 22,558 — 40,821 
Operating expenses1,269 11,930 23 13,222 
General and administrative expenses (2)
1,904 13,343 635 15,882 
Interest expense— 15 2,360 2,375 
Total expenses35,242 149,821 3,018 188,081 
Income (loss) before other income 7,955 (31,240)(3,007)(26,292)
Other income— 10 — 10 
Income (loss) before income taxes$7,955 $(31,230)(3,007)(26,282)
Benefit for income taxes(7,822)(7,822)
Net income (loss)$4,815 $(18,460)
Less: Net income attributable to noncontrolling interests(689)(689)
Net income (loss) attributable to UIHC$5,504 $(17,771)
Loss ratio, net (3) (4)
33.0 %98.0 %79.3 %
Expense ratio (3) (5)
51.2 %45.9 %47.9 %
Combined ratio (3) (6)
84.2 %143.9 %127.2 %
Total segment assets$889,104 $1,400,193 $514,027 $2,803,324 
(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 $2,162,000 and $817,000 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.