Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill at December 31, 2022 was $59,476,000. The carrying amount of goodwill at December 31, 2021 and 2020 was $73,045,000.

For the 2022 annual goodwill impairment tests we utilized the quantitative assessment for our commercial lines reporting segment, determining that the goodwill was not impaired for the reporting segment. During the third quarter of 2022, as a result of the strategic decision to place UPC into an orderly runoff, we recognized an impairment of our personal lines reporting segment’s goodwill totaling $13,569,000. We completed our most recent goodwill impairment testing during the fourth quarter and determined that there was no additional impairment in the value of the asset as of December 31, 2022.

Goodwill allocated to our commercial lines reporting segment was $59,476,000 at December 31, 2022. There was no goodwill allocated to our personal lines reporting segment at December 31, 2022. Goodwill allocated to our personal lines and commercial lines reporting segments was $13,569,000 and $59,476,000, respectively, at both December 31, 2021 and 2020.

There was no additional goodwill acquired or disposed of during the years ended December 31, 2022, 2021 and 2020. Accumulated impairment related to goodwill was $13,569,000 at December 31, 2022. There was no accumulated impairment related to goodwill at December 31, 2021 and 2020.

Intangible Assets

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


	December 31, 2022		December 31, 2021
Intangible assets subject to amortization	$	11,371	$	14,618
Indefinite-lived intangible assets(1)	1,398		3,757
Total	$	12,769	$	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
2022
Value of Business Acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,301)		10,360
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,459)	$	11,371
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 years ended December 31, 2022 and 2021, however, during the year ended December 31, 2022, we disposed of intangible assets totaling $2,359,000.

Amortization expense of our intangible assets was $3,247,000, $3,555,000 and $4,267,000 for the years ended December 31, 2022, 2021 and 2020, respectively.

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


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