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Segment Reporting
 6 Months Ended
Jun. 30, 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 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 subsidiary ACIC. 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 wrote commercial residential coverage through our subsidiary JIC, in South Carolina and Texas. Effective June 1, 2022 JIC was merged into ACIC, with ACIC being the surviving entity. As a result, the commercial residential policies originally written by JIC will not be renewed effective May 31, 2022.

All of our commercial lines business is administered by an outside managing general underwriter, AmRisc, LLC (AmRisc). This includes handling the underwriting, claims processing and premium collection related to our commercial business. In return, AmRisc is reimbursed through monthly management fees. International Catastrophe Insurance Managers (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 and six months ended June 30, 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 and six months ended June 30, 2022 and 2021, and the receipt of HCI common stock during the three months ended March 31, 2021, in connection with our Northeast Renewal Agreement.

The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three and six months ended June 30, 2022 and 2021.
Three Months Ended June 30, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$181,067 $179,079 $— $360,146 
Change in gross unearned premiums(67,849)13,461 — (54,388)
Gross premiums earned113,218 192,540 — 305,758 
Ceded premiums earned(61,771)(132,582)— (194,353)
Net premiums earned51,447 59,958 — 111,405 
Net investment income1,476 1,654 10 3,140 
Net realized gains (losses)(79)1 — (78)
Net unrealized losses on equity securities(2,390)(2,693)(1)(5,084)
Other revenue— 6,410 — 6,410 
Total revenues50,454 65,330 9 115,793 
EXPENSES:
Losses and loss adjustment expenses8,194 81,880 — 90,074 
Policy acquisition costs19,928 9,060 — 28,988 
Operating expenses1,127 11,805 87 13,019 
General and administrative expenses (2)
2,421 11,571 502 14,494 
Interest expense— 31 2,363 2,394 
Total expenses31,670 114,347 2,952 148,969 
Income (loss) before other income 18,784 (49,017)(2,943)(33,176)
Other income (loss)2 212 57 271 
Income (loss) before income taxes$18,786 $(48,805)(2,886)(32,905)
Benefit for income taxes36,150 36,150 
Net income (loss)$(39,036)$(69,055)
Less: Net loss attributable to noncontrolling interests(26)(26)
Net income (loss) attributable to UIHC$(39,010)$(69,029)
Loss ratio, net (3) (4)
15.9 %136.6 %80.9 %
Expense ratio (3) (5)
45.6 %54.1 %50.7 %
Combined ratio (3) (6)
61.5 %190.7 %131.6 %
Total segment assets$1,352,713 $836,517 $304,824 $2,494,054 
(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 $1,357,000 and $877,000 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 June 30, 2021
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$155,982 $270,442 $— $426,424 
Change in gross unearned premiums(54,424)(15,567)— (69,991)
Gross premiums earned101,558 254,875 — 356,433 
Ceded premiums earned(58,729)(152,244)— (210,973)
Net premiums earned42,829 102,631 — 145,460 
Net investment income1,150 2,521 12 3,683 
Net realized gains (losses)(41)(83)— (124)
Net unrealized losses on equity securities242 2,196 — 2,438 
Other revenue— 3,997 — 3,997 
Total revenues44,180 111,262 12 155,454 
EXPENSES:
Losses and loss adjustment expenses18,368 99,696 — 118,064 
Policy acquisition costs17,591 23,736 — 41,327 
Operating expenses932 12,533 17 13,482 
General and administrative expenses (2)
1,738 10,952 422 13,112 
Interest expense— 32 2,225 2,257 
Total expenses38,629 146,949 2,664 188,242 
Income (loss) before other income 5,551 (35,687)(2,652)(32,788)
Other income (loss)— 15 — 15 
Income (loss) before income taxes$5,551 $(35,672)(2,652)(32,773)
Benefit for income taxes(9,352)(9,352)
Net income (loss)$6,700 $(23,421)
Less: Net loss attributable to noncontrolling interests89 89 
Net income (loss) attributable to UIHC$6,611 $(23,510)
Loss ratio, net (3) (4)
42.9 %97.1 %81.2 %
Expense ratio (3) (5)
47.3 %46.0 %46.7 %
Combined ratio (3) (6)
90.2 %143.1 %127.9 %
Total segment assets$1,087,909 $1,569,041 $491,722 $3,148,672 
(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 $2,003,000 and $816,000 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.
Six Months Ended June 30, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$309,031 $330,590 $— $639,621 
Change in gross unearned premiums(88,348)73,691 — (14,657)
Gross premiums earned220,683 404,281 — 624,964 
Ceded premiums earned(123,793)(288,909)— (412,702)
Net premiums earned96,890 115,372 — 212,262 
Net investment income2,603 2,996 19 5,618 
Net realized gains (losses)(77)(1,770)— (1,847)
Net unrealized losses on equity securities(3,159)(4,191)(2)(7,352)
Other revenue— 9,478 — 9,478 
Total revenues96,257 121,885 17 218,159 
EXPENSES:
Losses and loss adjustment expenses22,308 159,134 — 181,442 
Policy acquisition costs36,606 18,398 — 55,004 
Operating expenses2,236 22,853 178 25,267 
General and administrative expenses (2)
4,741 24,875 883 30,499 
Interest expense— 51 4,722 4,773 
Total expenses65,891 225,311 5,783 296,985 
Income (loss) before other income 30,366 (103,426)(5,766)(78,826)
Other income (loss)2 (55)1,667 1,614 
Income (loss) before income taxes$30,368 $(103,481)(4,099)(77,212)
Benefit for income taxes25,100 25,100 
Net income (loss)$(29,199)$(102,312)
Less: Net loss attributable to noncontrolling interests(111)(111)
Net income (loss) attributable to UIHC$(29,088)$(102,201)
Loss ratio, net (3) (4)
23.0 %137.9 %85.5 %
Expense ratio (3) (5)
45.0 %57.3 %52.2 %
Combined ratio (3) (6)
68.0 %195.2 %137.7 %
Total segment assets$1,352,713 $836,517 $304,824 $2,494,054 
(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 $2,869,000 and $1,762,000 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.
Six Months Ended June 30, 2021
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$264,022 $474,040 $— $738,062 
Change in gross unearned premiums(64,246)39,280 — (24,966)
Gross premiums earned199,776 513,320 — 713,096 
Ceded premiums earned(115,095)(306,592)— (421,687)
Net premiums earned84,681 206,728 — 291,409 
Net investment income2,372 4,871 23 7,266 
Net realized gains(32)411 — 379 
Net unrealized losses on equity securities356 4,646 — 5,002 
Other revenue— 13,187 — 13,187 
Total revenues87,377 229,843 23 317,243 
EXPENSES:
Losses and loss adjustment expenses32,174 201,671 — 233,845 
Policy acquisition costs35,854 46,294 — 82,148 
Operating expenses2,201 24,463 40 26,704 
General and administrative expenses (2)
3,642 24,295 1,057 105728,994 
Interest expense— 47 4,585 4,632 
Total expenses73,871 296,770 5,682 376,323 
Income (loss) before other income 13,506 (66,927)(5,659)(59,080)
Other income— 25 — 25 
Income (loss) before income taxes$13,506 $(66,902)(5,659)(59,055)
Benefit for income taxes(17,174)(17,174)
Net income (loss)$11,515 $(41,881)
Less: Net income attributable to noncontrolling interests(600)(600)
Net income (loss) attributable to UIHC$12,115 $(41,281)
Loss ratio, net (3) (4)
38.0 %97.6 %80.2 %
Expense ratio (3) (5)
49.2 %46.0 %47.3 %
Combined ratio (3) (6)
87.2 %143.6 %127.5 %
Total segment assets$1,087,909 $1,569,041 $491,722 $3,148,672 
(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 $4,165,000 and $1,633,000 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.