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Segment Reporting | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Reporting Disclosure | 3) SEGMENT REPORTING Our reportable segments, while in the same industry, experienced differences in loss patterns and profitability during 2021, which 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 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, 2022, 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 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 was effective May 31, 2022. Please note the following similarities pertaining to the accounting and transactions of our operating segments for the years ended December 31, 2022, 2021 and 2020: •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, 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 presents the information for each of the reportable segments profit or loss as well as segment assets for the years ended December 31, 2022, 2021 and 2020.
|  | Year Ended December 31, 2022
|  | Commercial |  | Personal (1) |  | Adjustments |  | Consolidated
REVENUE: |  |  |  |  |  |  |  |
Gross premiums written |  | $ | 508,243 |  |  | $ | 615,820 |  |  | $ | — |  |  | $ | 1,124,063 |
Change in gross unearned premiums |  | (44,029) |  |  | 143,149 |  |  | — |  |  | 99,120 |
Gross premiums earned |  | 464,214 |  |  | 758,969 |  |  | — |  |  | 1,223,183 |
Ceded premiums earned |  | (245,293) |  |  | (515,264) |  |  | — |  |  | (760,557) |
Net premiums earned |  | 218,921 |  |  | 243,705 |  |  | — |  |  | 462,626 |
Net investment income |  | 5,861 |  |  | 8,097 |  |  | 53 |  |  | 14,011 |
Net realized losses |  | (6,511) |  |  | (25,571) |  |  | — |  |  | (32,082) |
Net unrealized losses on equity securities |  | (1,966) |  |  | (4,617) |  |  | (2) |  |  | (6,585) |
Other revenue |  | 1,178 |  |  | 16,271 |  |  | 3 |  |  | 17,452 |
Total revenues |  | 217,483 |  |  | 237,885 |  |  | 54 |  |  | 455,422 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 87,143 |  |  | 550,504 |  |  | — |  |  | 637,647 |
Policy acquisition costs |  | 80,996 |  |  | 75,093 |  |  | — |  |  | 156,089 |
Operating expenses |  | 3,926 |  |  | 39,270 |  |  | 436 |  |  | 43,632 |
General and administrative expenses (2) |  | 9,579 |  |  | 52,318 |  |  | 1,420 |  |  | 63,317 |
Interest expense |  | — |  |  | 131 |  |  | 9,482 |  |  | 9,613 |
Total expenses |  | 181,644 |  |  | 717,316 |  |  | 11,338 |  |  | 910,298 |
Income (loss) before other income |  | 35,839 |  |  | (479,431) |  |  | (11,284) |  |  | (454,876) |
Other income (loss) |  | 2 |  |  | (1,722) |  |  | 12,115 |  |  | 10,395 |
Income (loss) before income taxes |  | $ | 35,841 |  |  | $ | (481,153) |  |  | 831 |  |  | (444,481) |
Provision for income taxes |  |  |  |  |  | 25,485 |  |  | 25,485 |
Net loss |  |  |  |  |  | $ | (24,654) |  |  | $ | (469,966) |
Less: Net loss attributable to noncontrolling interests |  |  |  |  |  | (111) |  |  | (111) |
Net loss attributable to UIHC |  |  |  |  |  | $ | (24,543) |  |  | $ | (469,855) |
Loss ratio, net (3) (4) |  | 39.8 | % |  | 225.9 | % |  |  |  | 137.8 | %
Expense ratio (3) (5) |  | 43.2 | % |  | 68.4 | % |  |  |  | 56.9 | %
Combined ratio (3) (6) |  | 83.0 | % |  | 294.3 | % |  |  |  | 194.7 | %
Total segment assets |  | $ | 1,588,385 |  |  | $ | 1,284,999 |  |  | $ | (35,888) |  |  | $ | 2,837,496 |
(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 $19,299,000 and $3,246,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively. Personal lines depreciation and amortization expenses includes $13,569,000 related to the impairment of goodwill. (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, 2021
|  | Commercial |  | Personal (1) |  | Adjustments |  | Consolidated
REVENUE: |  |  |  |  |  |  |  |
Gross premiums written |  | $ | 422,238 |  |  | $ | 907,207 |  |  | $ | — |  |  | $ | 1,329,445 |
Change in gross unearned premiums |  | (11,975) |  |  | 90,973 |  |  | — |  |  | 78,998 |
Gross premiums earned |  | 410,263 |  |  | 998,180 |  |  | — |  |  | 1,408,443 |
Ceded premiums earned |  | (237,056) |  |  | (581,626) |  |  | — |  |  | (818,682) |
Net premiums earned |  | 173,207 |  |  | 416,554 |  |  | — |  |  | 589,761 |
Net investment income |  | 4,764 |  |  | 8,962 |  |  | 46 |  |  | 13,772 |
Net realized gains (losses) |  | (34) |  |  | 3,601 |  |  | — |  |  | 3,567 |
Net unrealized gains on equity securities |  | 1,471 |  |  | 1,766 |  |  | — |  |  | 3,237 |
Other revenue |  | — |  |  | 24,190 |  |  | — |  |  | 24,190 |
Total revenues |  | 179,408 |  |  | 455,073 |  |  | 46 |  |  | 634,527 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 54,718 |  |  | 367,416 |  |  | — |  |  | 422,134 |
Policy acquisition costs |  | 80,198 |  |  | 93,376 |  |  | — |  |  | 173,574 |
Operating expenses |  | 4,873 |  |  | 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 expenses |  | 147,388 |  |  | 559,812 |  |  | 11,368 |  |  | 718,568 |
Income (loss) before other income |  | 32,020 |  |  | (104,739) |  |  | (11,322) |  |  | (84,041) |
Other income |  | 1 |  |  | 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) |  | Adjustments |  | Consolidated
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 earned |  | 389,807 |  |  | 1,017,173 |  |  | — |  |  | 1,406,980 |
Ceded premiums earned |  | (194,477) |  |  | (446,840) |  |  | — |  |  | (641,317) |
Net premiums earned |  | 195,330 |  |  | 570,333 |  |  | — |  |  | 765,663 |
Net investment income |  | 7,882 |  |  | 15,723 |  |  | 520 |  |  | 24,125 |
Net realized gains |  | 23,760 |  |  | 37,960 |  |  | 4,971 |  |  | 66,691 |
Net unrealized losses on equity securities |  | (9,506) |  |  | (15,244) |  |  | (2,812) |  |  | (27,562) |
Other revenue |  | 1 |  |  | 17,738 |  |  | — |  |  | 17,739 |
Total revenues |  | 217,467 |  |  | 626,510 |  |  | 2,679 |  |  | 846,656 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 92,097 |  |  | 516,219 |  |  | — |  |  | 608,316 |
Policy acquisition costs |  | 98,276 |  |  | 137,726 |  |  | — |  |  | 236,002 |
Operating expenses |  | 3,440 |  |  | 49,255 |  |  | 181 |  |  | 52,876 |
General and administrative expenses (2) |  | 7,685 |  |  | 58,385 |  |  | 5,987 |  |  | 72,057 |
Interest expense |  | 28 |  |  | 89 |  |  | 9,465 |  |  | 9,582 |
Total expenses |  | 201,526 |  |  | 761,674 |  |  | 15,633 |  |  | 978,833 |
Income (loss) before other income |  | 15,941 |  |  | (135,164) |  |  | (12,954) |  |  | (132,177) |
Other income |  | 7 |  |  | 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 interests |  |  |  |  |  | 956 |  |  | 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 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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