Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Segment Reporting Information, by Segment

The tables below present the information for each of the reportable segment's profit or loss, as well as segment assets for the three months ended March 31, 2023 and 2022. We have restated our segments to reflect the divestiture of UPC during the first quarter of 2023, excluding the result of the entity for all periods presented.


	Three Months Ended March 31, 2023
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	176,641		$	10,482		$	—	$	187,123
Change in gross unearned premiums	(44,607)			1,960			—		(42,647)
Gross premiums earned	132,034			12,442			—		144,476
Ceded premiums earned	(53,374)			(3,778)			—		(57,152)
Net premiums earned	78,660			8,664			—		87,324
Net investment income	1,786			782			21		2,589
Net realized gains (losses)	(83)			—			—		(83)
Net unrealized losses on equity securities	473			—			1		474
Management fee income	—			9,668			—		9,668
Other revenue	—			4,075			—		4,075
Total revenues	80,836			23,189			22		104,047
EXPENSES:
Losses and loss adjustment expenses	13,901			5,172			—		19,073
Policy acquisition costs	25,166			1,761			—		26,927
Operating expenses	96			5,431			124		5,651
General and administrative expenses (2)	2,754			6,951			132		9,837
Interest expense	—			—			2,719		2,719
Total expenses	41,917			19,315			2,975		64,207
Income (loss) before other income	38,919			3,874			(2,953)		39,840
Other income (loss)	—			803			(215)		588
Income (loss) before income taxes	$	38,919		$	4,677		(3,168)		40,428
Provision for income taxes							9,855		9,855
Net income (loss)							$	(13,023)	$	30,573
Less: Net loss attributable to noncontrolling interests							—		—
Net income (loss) attributable to UIHC							$	(13,023)	$	30,573

Loss ratio, net (3) (4)	17.7		%	59.7		%			21.9		%
Expense ratio (3) (5)	35.6		%	163.2		%			48.6		%
Combined ratio (3) (6)	53.3		%	222.9		%			70.5		%

Total segment assets	$	1,304,499		$	130,045		$	10,842	$	1,445,386

(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 $1,260,000 and $812,000 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 March 31, 2022
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	127,964		$	14,450		$	—	$	142,414
Change in gross unearned premiums	(20,499)			818			—		(19,681)
Gross premiums earned	107,465			15,268			—		122,733
Ceded premiums earned	(62,022)			(2,965)			—		(64,987)
Net premiums earned	45,443			12,303			—		57,746
Net investment income	1,127			268			9		1,404
Net realized gains	2			35			—		37
Net unrealized losses on equity securities	(769)			—			(1)		(770)
Management fee income	—			50,206			—		50,206
Other revenue	—			8,738			—		8,738
Total revenues	45,803			71,550			8		117,361
EXPENSES:
Losses and loss adjustment expenses	14,114			18,404			—		32,518
Policy acquisition costs	16,678			35,474			—		52,152
Operating expenses	1,109			9,403			91		10,603
General and administrative expenses (2)	2,320			12,734			381		15,435
Interest expense	—			—			2,359		2,359
Total expenses	34,221			76,015			2,831		113,067
Income (loss) before other income	11,582			(4,465)			(2,823)		4,294
Other income	—			(277)			1,610		1,333
Income (loss) before income taxes	$	11,582		$	(4,742)		(1,213)		5,627
Provision for income taxes							980		980
Net income (loss)							$	(2,193)	$	4,647
Less: Net income attributable to noncontrolling interests							(85)		(85)
Net income (loss) attributable to UIHC							$	(2,108)	$	4,732








Loss ratio, net (3) (4) (7)	31.1		%	149.6		%			56.3		%
Expense ratio (3) (5) (7)	44.2		%	468.3		%			135.4		%
Combined ratio (3) (6) (7)	75.3		%	617.9		%			191.7		%

Total segment assets	$	949,359		$	179,208		$	17,507	$	1,146,074

(2) Included in our General and Administrative expenses is $1,512,000 and $885,000 of depreciation and amortization expense related to our personal and commercial lines assets, respectively.