XML 39 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Discontinued Operations and Disposal Groups (Tables)
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Assets & Liabilities
The results from discontinued operations for the three and six months ended June 30, 2023 and 2022 are presented below.

Results From Discontinued Operations
Three Months Ended
 June 30,		Six Months Ended
June 30,
2023202220232022
REVENUE:
Gross premiums written$— $174,094 $(120,608)$320,922 
Change in gross unearned premiums— 13,243 198,154 72,969 
Gross premiums earned— 187,337 77,546 393,891 
Ceded premiums earned— (140,463)(48,203)(303,906)
Net premiums earned— 46,874 29,343 89,985 
Net investment income— 1,301 2,182 2,375 
Net realized investment gains (losses)— (1)1,343 (1,807)
Net unrealized gains (losses) on equity securities— (2,693)2,080 (4,191)
Other revenue— 6,411 2,717 9,474 
Total revenue— 51,892 37,665 95,836 
EXPENSES:
Losses and loss adjustment expenses1,191 76,051 36,417 141,115 
Policy acquisition costs(170)5,418 (1,522)11,126 
Operating expenses507 9,199 4,503 17,740 
General and administrative expenses1,275 6,286 2,559 14,227 
Interest expense— 31 22 50 
Total expenses2,803 96,985 41,979 184,258 
Loss before other income(2,803)(45,093)(4,314)(88,422)
Other income (loss)— 13 — 23 
Loss before income taxes(2,803)(45,080)(4,314)(88,399)
Provision (benefit) for income taxes(230)10,664 (214)329 
Income (loss) from discontinued operations, net of tax$(2,573)$(55,744)$(4,100)$(88,728)

As of February 28, 2023, the Company completed the disposal of its former subsidiary, UPC. This divestiture resulted in a gain of $238,440,000 for the three months ended March 31, 2023. This gain was driven by the negative equity position of UPC.
The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer and December 31, 2022 are presented below.

Major Classes of Assets and Liabilities Disposed
Closing (1)
December 31, 2022
ASSETS
Fixed maturities, available-for-sale$1,380 $171,781 
Equity securities272 23,363 
Other investments12,882 12,952 
Cash and cash equivalents224,824 158,990 
Restricted cash7,758 7,730 
Accrued investment income875 1,457 
Premiums receivable, net22,733 46,736 
Reinsurance recoverable on paid and unpaid losses, net548,929 834,863 
Ceded unearned premiums75,262 122,533 
Deferred policy acquisition costs, net(89)(2,046)
Other assets53,675 33,548 
Total assets$948,501 $1,411,907 
LIABILITIES
Unpaid losses and loss adjustment expenses920,431 1,103,980 
Unearned premiums98,655 286,842 
Reinsurance payable on premiums12,612 29,394 
Payments outstanding144,238 213,058 
Accounts payable and accrued expenses1,361 (872)
Other liabilities3,476 14,658 
Notes payable, net4,118 4,118 
Total Liabilities$1,184,891 $1,651,178 
(1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity.

In addition, the major classes of assets and liabilities remaining related to activities directly supporting the business conducted by UPC are outlined in the table below as of June 30, 2023 and December 31, 2022.
Major Classes of Assets and Liabilities Held for Disposal
June 30, 2023December 31, 2022
ASSETS
Property and equipment, net12,105 14,299 
Deferred policy acquisition costs— 8,609 
Total assets$12,105 $22,908 
LIABILITIES
Commissions Payable1,795 987 
Unearned Policy Fees— 2,652 
Total Liabilities$1,795 $3,639 

The discontinued operations of the Company incurred $488,000 and $748,000 of amortization expense during the six months ended June 30, 2023 and 2022, respectively. There were no other noncash transactions for either period.