Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill, both at June 30, 2022 and December 31, 2021, was $73,045,000. There was no goodwill acquired or disposed of during the three or six month periods ended June 30, 2022 and 2021.

As a result of the merging of FSIC into UPC and JIC into ACIC, we completed our most recent goodwill impairment testing during the second quarter of 2022 and determined that there was no impairment in the value of the asset as of June 30, 2022. As of this testing, the carrying value of our personal lines reporting unit was negative. Goodwill allocated to our personal lines and commercial lines reporting units was $13,570,000 and $59,475,000, respectively, at both June 30, 2022 and December 31, 2021.

No impairment loss in the value of goodwill was recognized during the three or six month periods ended June 30, 2022 and 2021. Additionally, there was no accumulated impairment related to goodwill at June 30, 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:


	June 30, 2022		December 31, 2021
Intangible assets subject to amortization	$	12,994	$	14,618
Indefinite-lived intangible assets(1)	3,757		3,757
Total	$	16,751	$	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
June 30, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.8	34,661		(23,082)		11,579
Trade names acquired	1.8	6,381		(4,966)		1,415
Total		$	83,830	$	(70,836)	$	12,994

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 six months ended June 30, 2022 and 2021.

Amortization expense of our intangible assets was $812,000 and $889,000 for the three months ended June 30, 2022 and 2021, respectively. Amortization expense of our intangible assets was $1,624,000 and $1,932,000 for the six months ended June 30, 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	$	1,623
2023	3,246
2024	2,640
2025	2,438
2026	2,438
2027	609