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Segment Reporting | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Segment Reporting Disclosure | ) SEGMENT REPORTING 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 subsidiary IIC. Personal residential products are offered in New York. 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. 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 were not 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) handled the underwriting and premium collection for JIC’s commercial business written in South Carolina and Texas and was also reimbursed through monthly management fees. Effective May 31, 2022, the Company terminated its agreement with ICAT. Please note the following similarities pertaining to the accounting and transactions of our operating segments for the three months ended March 31, 2023 and 2022: •Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2022; •Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for the three months ended March 31, 2023 and 2022. 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 |
Other revenue |  | — |  |  | 16 |  |  | — |  |  | 16 |
Total revenues |  | 80,836 |  |  | 9,462 |  |  | 22 |  |  | 90,320 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 13,901 |  |  | 2,511 |  |  | — |  |  | 16,412 |
Policy acquisition costs |  | 25,166 |  |  | 1,806 |  |  | — |  |  | 26,972 |
Operating expenses |  | 96 |  |  | 1,948 |  |  | 124 |  |  | 2,168 |
General and administrative expenses (2) |  | 2,754 |  |  | 5,907 |  |  | 132 |  |  | 8,793 |
Interest expense |  | — |  |  | — |  |  | 2,719 |  |  | 2,719 |
Total expenses |  | 41,917 |  |  | 12,172 |  |  | 2,975 |  |  | 57,064 |
Income (loss) before other income |  | 38,919 |  |  | (2,710) |  |  | (2,953) |  |  | 33,256 |
Other income (loss) |  | — |  |  | 803 |  |  | (215) |  |  | 588 |
Income (loss) before income taxes |  | $ | 38,919 |  |  | $ | (1,907) |  |  | (3,168) |  |  | 33,844 |
Provision for income taxes |  |  |  |  |  | 3,477 |  |  | 3,477 |
Net income (loss) |  |  |  |  |  | $ | (6,645) |  |  | $ | 30,367 |
Less: Net loss attributable to noncontrolling interests |  |  |  |  |  | — |  |  | — |
Net income (loss) attributable to UIHC |  |  |  |  |  | $ | (6,645) |  |  | $ | 30,367 |
Loss ratio, net (3) (4) |  | 17.7 | % |  | 29.0 | % |  |  |  | 18.9 | %
Expense ratio (3) (5) |  | 35.6 | % |  | 111.5 | % |  |  |  | 43.4 | %
Combined ratio (3) (6) |  | 53.3 | % |  | 140.5 | % |  |  |  | 62.3 | %
Total segment assets |  | $ | 1,304,499 |  |  | $ | 118,700 |  |  | $ | 10,842 |  |  | $ | 1,434,041 |
(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 $1,007,000 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) |
Other revenue |  | — |  |  | 15 |  |  | — |  |  | 15 |
Total revenues |  | 45,803 |  |  | 12,621 |  |  | 8 |  |  | 58,432 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 14,114 |  |  | 12,201 |  |  | — |  |  | 26,315 |
Policy acquisition costs |  | 16,678 |  |  | 3,630 |  |  | — |  |  | 20,308 |
Operating expenses |  | 1,109 |  |  | 2,507 |  |  | 91 |  |  | 3,707 |
General and administrative expenses (2) |  | 2,320 |  |  | 5,363 |  |  | 381 |  |  | 8,064 |
Interest expense |  | — |  |  | — |  |  | 2,359 |  |  | 2,359 |
Total expenses |  | 34,221 |  |  | 23,701 |  |  | 2,831 |  |  | 60,753 |
Income (loss) before other income |  | 11,582 |  |  | (11,080) |  |  | (2,823) |  |  | (2,321) |
Other income |  | — |  |  | (277) |  |  | 1,610 |  |  | 1,333 |
Income (loss) before income taxes |  | $ | 11,582 |  |  | $ | (11,357) |  |  | (1,213) |  |  | (988) |
Provision for income taxes |  |  |  |  |  | (715) |  |  | (715) |
Net income (loss) |  |  |  |  |  | $ | (498) |  |  | $ | (273) |
Less: Net income attributable to noncontrolling interests |  |  |  |  |  | (85) |  |  | (85) |
Net income (loss) attributable to UIHC |  |  |  |  |  | $ | (413) |  |  | $ | (188) |
Loss ratio, net (3) (4) (7) |  | 31.1 | % |  | 99.2 | % |  |  |  | 45.6 | %
Expense ratio (3) (5) (7) |  | 44.2 | % |  | 93.5 | % |  |  |  | 55.6 | %
Combined ratio (3) (6) (7) |  | 75.3 | % |  | 192.7 | % |  |  |  | 101.1 | %
Total segment assets |  | $ | 949,359 |  |  | $ | 156,443 |  |  | $ | 17,507 |  |  | $ | 1,123,309 |
(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 $1,074,000 and $885,000 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.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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