Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

) GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill at March 31, 2023 and December 31, 2022 was $59,476,000.

No impairment in the value of goodwill was recognized during the three month period ended March 31, 2023. As a result of the strategic decision to place our former subsidiary UPC into an orderly runoff, we recognized an impairment of our personal lines reporting unit's goodwill totaling $13,569,000 during the third quarter of 2022. The goodwill attributable to our commercial lines reporting unit was most recently tested for impairment during the fourth quarter of 2022. It was 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 unit was $59,476,000 at March 31, 2023 and December 31, 2022. There was no goodwill allocated to our personal lines reporting unit at March 31, 2023 and December 31, 2022.

There was no goodwill acquired or disposed of during the three month periods ended March 31, 2023 and 2022. Accumulated impairment related to goodwill was $13,569,000 at March 31, 2023 and December 31, 2022.

Intangible Assets

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


	March 31, 2023		December 31, 2022
Intangible assets subject to amortization	$	10,560	$	11,372
Indefinite-lived intangible assets(1)	1,198		1,398
Total	$	11,758	$	12,770

(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
March 31, 2023
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.0	34,661		(24,910)		9,751
Trade names acquired	1.0	6,381		(5,572)		809
Total		$	83,830	$	(73,270)	$	10,560

December 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,300)		10,361
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,458)	$	11,372

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended March 31, 2023 and 2022. However during the three months ended March 31, 2023 and year ended December 31, 2022, we disposed of intangible assets totaling $200,000 and $2,359,000, respectively.

Amortization expense of our intangible assets was $812,000 and $812,000 for the three months ended March 31, 2023 and 2022, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2023 and over the next five years is as follows:


Year ending December 31,	Estimated Amortization Expense
Remaining in 2023	$	2,435
2024	2,640
2025	2,438
2026	2,438
2027	609
2028	—