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Segment Reporting
 3 Months Ended
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)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$176,641 $10,482 $— $187,123 
Change in gross unearned premiums(44,607)1,960 — (42,647)
Gross premiums earned132,034 12,442 — 144,476 
Ceded premiums earned(53,374)(3,778)— (57,152)
Net premiums earned78,660 8,664 — 87,324 
Net investment income1,786 782 21 2,589 
Net realized gains (losses)(83)— — (83)
Net unrealized losses on equity securities473 — 1 474 
Other revenue— 16 — 16 
Total revenues80,836 9,462 22 90,320 
EXPENSES:
Losses and loss adjustment expenses13,901 2,511 — 16,412 
Policy acquisition costs25,166 1,806 — 26,972 
Operating expenses96 1,948 124 2,168 
General and administrative expenses (2)
2,754 5,907 132 8,793 
Interest expense— — 2,719 2,719 
Total expenses41,917 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 $(1,907)(3,168)33,844 
Provision for income taxes3,477 3,477 
Net income (loss)$(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)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$127,964 $14,450 $— $142,414 
Change in gross unearned premiums(20,499)818 — (19,681)
Gross premiums earned107,465 15,268 — 122,733 
Ceded premiums earned(62,022)(2,965)— (64,987)
Net premiums earned45,443 12,303 — 57,746 
Net investment income1,127 268 9 1,404 
Net realized gains2 35 — 37 
Net unrealized losses on equity securities(769)— (1)(770)
Other revenue— 15 — 15 
Total revenues45,803 12,621 8 58,432 
EXPENSES:
Losses and loss adjustment expenses14,114 12,201 — 26,315 
Policy acquisition costs16,678 3,630 — 20,308 
Operating expenses1,109 2,507 91 3,707 
General and administrative expenses (2)
2,320 5,363 381 8,064 
Interest expense— — 2,359 2,359 
Total expenses34,221 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.