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Segment Reporting
 9 Months Ended
Sep. 30, 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.

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 AmCoastal. 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 AmCoastal, with AmCoastal 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 and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 2023 and 2022. We have restated our segments to reflect the discontinued operations disclosed in Note 3, excluding the result of the entity for all periods presented.
Three Months Ended September 30, 2023
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$93,986 $9,886 $— $103,872 
Change in gross unearned premiums63,791 (1,903)— 61,888 
Gross premiums earned157,777 7,983 — 165,760 
Ceded premiums earned(107,512)(2,440)— (109,952)
Net premiums earned50,265 5,543 — 55,808 
Net investment income1,884 805 20 2,709 
Net realized gains (losses)4 (2)— 2 
Net unrealized losses on equity securities177 1 (1)177 
Other revenue— 18 — 18 
Total revenues52,330 6,365 19 58,714 
EXPENSES:
Losses and loss adjustment expenses9,818 3,946 — 13,764 
Policy acquisition costs13,604 1,996 — 15,600 
Operating expenses717 1,984 98 2,799 
General and administrative expenses2,244 3,674 213 6,131 
Interest expense— — 2,718 2,718 
Total expenses26,383 11,600 3,029 41,012 
Income (loss) before other income 25,947 (5,235)(3,010)17,702 
Other income (loss)— (226)— (226)
Income (loss) before income taxes$25,947 $(5,461)(3,010)17,476 
Provision for income taxes3,103 3,103 
Net income (loss)$(6,113)$14,373 
Less: Net loss attributable to noncontrolling interests— — 
Net income (loss) attributable to ACIC$(6,113)$14,373 
Loss ratio, net (2) (3)
19.5 %71.2 %24.7 %
Expense ratio (2) (4)
33.0 %138.1 %44.0 %
Combined ratio (2) (5)
52.5 %209.3 %68.7 %
Total segment assets$1,317,830 $(233,158)$53,834 $1,138,506 
(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) 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.
(3) 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.
(4) 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.
(5) 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 September 30, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$76,867 $26,286 $— $103,153 
Change in gross unearned premiums42,953 (7,746)— 35,207 
Gross premiums earned119,820 18,540 — 138,360 
Ceded premiums earned(60,301)(7,833)— (68,134)
Net premiums earned59,519 10,707 — 70,226 
Net investment income1,756 465 15 2,236 
Net realized gains (losses)— (4)— (4)
Net unrealized losses on equity securities(897)— — (897)
Other revenue1,178 10 3 1,191 
Total revenues61,556 11,178 18 72,752 
EXPENSES:
Losses and loss adjustment expenses34,229 18,536 — 52,765 
Policy acquisition costs22,430 3,600 — 26,030 
Operating expenses717 2,296 110 3,123 
General and administrative expenses2,428 13,211 320 15,959 
Interest expense— — 2,358 2,358 
Total expenses59,804 37,643 2,788 100,235 
Income (loss) before other income 1,752 (26,465)(2,770)(27,483)
Other income (loss)10 (39)— (29)
Income (loss) before income taxes$1,762 $(26,504)(2,770)(27,512)
Provision for income taxes(66)(66)
Net income (loss)$(2,704)$(27,446)
Less: Net loss attributable to noncontrolling interests— — 
Net income (loss) attributable to ACIC$(2,704)$(27,446)
Loss ratio, net (2) (3)
57.5 %173.1 %75.1 %
Expense ratio (2) (4)
43.0 %178.5 %64.2 %
Combined ratio (2) (5)
100.5 %351.6 %139.3 %
Total segment assets$1,354,893 $(403,891)$229,342 $1,180,344 
(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) 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.
(3) 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.
(4) 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.
(5) 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.
Nine Months Ended September 30, 2023
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$507,449 $27,431 $— $534,880 
Change in gross unearned premiums(71,827)5,382 — (66,445)
Gross premiums earned435,622 32,813 — 468,435 
Ceded premiums earned(232,711)(9,423)— (242,134)
Net premiums earned202,911 23,390 — 226,301 
Net investment income5,536 2,391 63 7,990 
Net realized gains (losses)(6,787)(19)— (6,806)
Net unrealized losses on equity securities790 1 1 792 
Other revenue— 52 — 52 
Total revenues202,450 25,815 64 228,329 
EXPENSES:
Losses and loss adjustment expenses39,964 11,127 — 51,091 
Policy acquisition costs62,296 5,821 — 68,117 
Operating expenses2,314 5,601 326 8,241 
General and administrative expenses7,629 13,353 525 21,507 
Interest expense— — 8,156 8,156 
Total expenses112,203 35,902 9,007 157,112 
Income (loss) before other income 90,247 (10,087)(8,943)71,217 
Other income (loss)— 1,383 (215)1,168 
Income (loss) before income taxes$90,247 $(8,704)(9,158)72,385 
Provision for income taxes7,293 7,293 
Net income (loss)$(16,451)$65,092 
Less: Net loss attributable to noncontrolling interests— — 
Net income (loss) attributable to ACIC$(16,451)$65,092 
Loss ratio, net (2) (3)
19.7 %47.6 %22.6 %
Expense ratio (2) (4)
35.6 %105.9 %43.2 %
Combined ratio (2) (5)
55.3 %153.5 %65.8 %
Total segment assets$1,317,830 $(233,158)$53,834 $1,138,506 
(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) 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.
(3) 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.
(4) 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.
(5) 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.
Nine Months Ended September 30, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$385,898 $67,301 $— $453,199 
Change in gross unearned premiums(45,395)(17,228)— (62,623)
Gross premiums earned340,503 50,073 — 390,576 
Ceded premiums earned(184,094)(13,978)— (198,072)
Net premiums earned156,409 36,095 — 192,504 
Net investment income4,359 1,086 34 5,479 
Net realized gains(77)33 — (44)
Net unrealized losses on equity securities(4,056)— (2)(4,058)
Other revenue1,178 32 3 1,213 
Total revenues157,813 37,246 35 195,094 
EXPENSES:
Losses and loss adjustment expenses56,537 36,575 — 93,112 
Policy acquisition costs59,036 10,872 — 69,908 
Operating expenses2,953 7,409 288 10,650 
General and administrative expenses7,169 23,859 1,203 32,231 
Interest expense— — 7,080 7,080 
Total expenses125,695 78,715 8,571 212,981 
Income (loss) before other income 32,118 (41,468)(8,536)(17,887)
Other income12 (117)1,667 1,562 
Income (loss) before income taxes$32,130 $(41,585)(6,869)(16,325)
Provision for income taxes24,705 24,705 
Net income (loss)$(31,574)$(41,030)
Less: Net income attributable to noncontrolling interests(111)(111)
Net income (loss) attributable to ACIC$(31,463)$(40,919)
Loss ratio, net (2) (3)
36.1 %101.3 %48.4 %
Expense ratio (2) (4)
44.2 %116.7 %58.6 %
Combined ratio (2) (5)
80.3 %218.0 %107.0 %
Total segment assets$1,354,893 $(403,891)$229,342 $1,180,344 
(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) 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.
(3) 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.
(4) 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.
(5) 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.