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Discontinued Operations and Disposal Groups (Tables) | 9 Months Ended
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Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Disposal Groups, Assets & Liabilities | The results from discontinued operations for the three and nine months ended September 30, 2023 and 2022 are presented below.
Results From Discontinued Operations |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
REVENUE: |  |  |  |  |  |  |  |
Gross premiums written |  | $ | — |  |  | $ | 168,587 |  |  | $ | (120,608) |  |  | $ | 489,509 |
Change in gross unearned premiums |  | — |  |  | 7,810 |  |  | 198,154 |  |  | 80,779 |
Gross premiums earned |  | — |  |  | 176,397 |  |  | 77,546 |  |  | 570,288 |
Ceded premiums earned |  | — |  |  | (130,437) |  |  | (48,203) |  |  | (434,343) |
Net premiums earned |  | — |  |  | 45,960 |  |  | 29,343 |  |  | 135,945 |
Net investment income |  | — |  |  | 2,033 |  |  | 2,182 |  |  | 4,408 |
Net realized investment gains (losses) |  | — |  |  | (4) |  |  | 1,343 |  |  | (1,811) |
Net unrealized gains (losses) on equity securities |  | — |  |  | (1,622) |  |  | 2,080 |  |  | (5,813) |
Other revenue |  | — |  |  | 4,650 |  |  | 2,717 |  |  | 14,124 |
Total revenue |  | — |  |  | 51,017 |  |  | 37,665 |  |  | 146,853 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 851 |  |  | 64,443 |  |  | 37,268 |  |  | 205,558 |
Policy acquisition costs |  | — |  |  | 12,914 |  |  | (1,522) |  |  | 24,040 |
Operating expenses |  | 153 |  |  | 6,492 |  |  | 4,656 |  |  | 24,232 |
General and administrative expenses |  | 2,872 |  |  | 10,433 |  |  | 5,431 |  |  | 24,660 |
Interest expense |  | — |  |  | 34 |  |  | 22 |  |  | 84 |
Total expenses |  | 3,876 |  |  | 94,316 |  |  | 45,855 |  |  | 278,574 |
Loss before other income |  | (3,876) |  |  | (43,299) |  |  | (8,190) |  |  | (131,721) |
Other income (loss) |  | — |  |  | 14 |  |  | — |  |  | 37 |
Loss before income taxes |  | (3,876) |  |  | (43,285) |  |  | (8,190) |  |  | (131,684) |
Provision (benefit) for income taxes |  | (71) |  |  | 153 |  |  | (285) |  |  | 482 |
Income (loss) from discontinued operations, net of tax |  | $ | (3,805) |  |  | $ | (43,438) |  |  | $ | (7,905) |  |  | $ | (132,166) |
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 securities |  | 272 |  |  | 23,363 |
Other investments |  | 12,882 |  |  | 12,952 |
Cash and cash equivalents |  | 224,824 |  |  | 158,990 |
Restricted cash |  | 7,758 |  |  | 7,730 |
Accrued investment income |  | 875 |  |  | 1,457 |
Premiums receivable, net |  | 22,733 |  |  | 46,736 |
Reinsurance recoverable on paid and unpaid losses, net |  | 548,929 |  |  | 834,863 |
Ceded unearned premiums |  | 75,262 |  |  | 122,533 |
Deferred policy acquisition costs, net |  | (89) |  |  | (2,046) |
Other assets |  | 51,625 |  |  | 33,548 |
Total assets |  | $ | 946,451 |  |  | $ | 1,411,907 |
LIABILITIES |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | 920,431 |  |  | $ | 1,103,980 |
Unearned premiums |  | 98,655 |  |  | 286,842 |
Reinsurance payable on premiums |  | 12,612 |  |  | 29,394 |
Payments outstanding |  | 144,238 |  |  | 213,058 |
Accounts payable and accrued expenses |  | 1,361 |  |  | (872) |
Other liabilities |  | 3,476 |  |  | 14,658 |
Notes payable, net |  | 4,118 |  |  | 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 September 30, 2023 and December 31, 2022.
Major Classes of Assets and Liabilities Held for Disposal |  |  |  |
|  | September 30, 2023 |  | December 31, 2022
ASSETS |  |  |  |
Property and equipment, net |  | $ | 11,183 |  |  | $ | 14,299 |
Deferred policy acquisition costs |  | — |  |  | 8,609 |
Total assets |  | $ | 11,183 |  |  | $ | 22,908 |
LIABILITIES |  |  |  |
Commissions Payable |  | $ | 1,792 |  |  | $ | 987 |
Unearned Policy Fees |  | — |  |  | 2,652 |
Total Liabilities |  | $ | 1,792 |  |  | $ | 3,639 |
The discontinued operations of the Company incurred $2,604,000 and $6,482,000 of amortization expense during the nine months ended September 30, 2023 and 2022, respectively. There were no other noncash transactions for either period.

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