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Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Disclosure )    SEGMENT REPORTING
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.

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.

Please note the following similarities pertaining to the accounting and transactions of our operating segments for the years ended December 31, 2023, 2022 and 2021:

•Both operating segments follow the accounting policies outlined in Note 2;
•Neither operating segment experienced significant noncash transactions outside of depreciation and amortization for any years presented.

The tables below present the information for each of the reportable segments profit or loss for the years ended December 31, 2023, 2022 and 2021.
Year Ended December 31, 2023
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$635,709 $34,334 $— $670,043 
Change in gross unearned premiums(40,993)6,914 — (34,079)
Gross premiums earned594,716 41,248 — 635,964 
Ceded premiums earned(342,664)(11,416)— (354,080)
Net premiums earned252,052 29,832 — 281,884 
Net investment income7,356 3,119 99 10,574 
Net realized investment losses(6,790)(18)— (6,808)
Net unrealized gains on equity securities813 — 1 814 
Other revenue— 79 — 79 
Total revenues253,431 33,012 100 286,543 
EXPENSES:
Losses and loss adjustment expenses46,299 16,562 — 62,861 
Policy acquisition costs75,436 7,910 — 83,346 
Operating expenses3,008 6,809 423 10,240 
General and administrative expenses10,620 17,979 890 29,489 
Interest expense— — 10,875 10,875 
Total expenses135,363 49,260 12,188 196,811 
Income (loss) before other income 118,068 (16,248)(12,088)89,732 
Other income (loss)60 2,394 (215)2,239 
Income (loss) before income taxes$118,128 $(13,854)(12,303)91,971 
Provision for income taxes9,773 9,773 
Net income (loss)$(22,076)$82,198 
Less: Net loss attributable to noncontrolling interests— — 
Net income (loss) attributable to ACIC$(22,076)$82,198 
Loss ratio, net (2) (3)
18.4 %55.5 %22.3 %
Expense ratio (2) (4)
35.3 %109.6 %43.7 %
Combined ratio (2) (5)
53.7 %165.1 %66.0 %
(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.
Year Ended December 31, 2022
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$508,243 $64,100 $— $572,343 
Change in gross unearned premiums(44,029)7,055 — (36,974)
Gross premiums earned464,214 71,155 — 535,369 
Ceded premiums earned(245,293)(20,730)— (266,023)
Net premiums earned218,921 50,425 — 269,346 
Net investment income5,861 1,759 53 7,673 
Net realized investment gains (losses)(6,511)28 — (6,483)
Net unrealized losses on equity securities(1,966)— (2)(1,968)
Other revenue1,178 42 3 1,223 
Total revenues217,483 52,254 54 269,791 
EXPENSES:
Losses and loss adjustment expenses87,143 47,662 — 134,805 
Policy acquisition costs80,996 14,322 — 95,318 
Operating expenses3,926 9,367 436 13,729 
General and administrative expenses9,579 31,282 1,420 42,281 
Interest expense— 1 9,482 9,483 
Total expenses181,644 102,634 11,338 295,616 
Income (loss) before other income 35,839 (50,380)(11,284)(25,825)
Other income2 (1,774)12,115 10,343 
Income (loss) before income taxes$35,841 $(52,154)831 (15,482)
Provision for income taxes24,522 24,522 
Net income (loss)$(23,691)$(40,004)
Less: Net loss attributable to noncontrolling interests(111)(111)
Net income (loss) attributable to ACIC$(23,580)$(39,893)
Loss ratio, net (2) (3)
39.8 %94.5 %50.0 %
Expense ratio (2) (4)
43.2 %109.0 %56.2 %
Combined ratio (2) (5)
83.0 %203.5 %106.2 %
(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.
Year Ended December 31, 2021
Commercial
Personal (1)
AdjustmentsConsolidated
REVENUE:
Gross premiums written$422,238 $62,289 $— $484,527 
Change in gross unearned premiums(11,975)(6,793)— (18,768)
Gross premiums earned410,263 55,496 — 465,759 
Ceded premiums earned(237,056)(7,574)— (244,630)
Net premiums earned173,207 47,922 — 221,129 
Net investment income4,764 1,091 46 5,901 
Net realized investment gains (losses)(34)172 — 138 
Net unrealized gains on equity securities1,471 — — 1,471 
Other revenue— 46 — 46 
Total revenues179,408 49,231 46 228,685 
EXPENSES:
Losses and loss adjustment expenses54,718 34,333 — 89,051 
Policy acquisition costs80,198 13,001 — 93,199 
Operating expenses4,873 11,005 380 16,258 
General and administrative expenses7,599 22,135 1,686 31,420 
Interest expense— 1 9,302 9,303 
Total expenses147,388 80,475 11,368 239,231 
Income (loss) before other income 32,020 (31,244)(11,322)(10,546)
Other income1 128 — 129 
Income (loss) before income taxes$32,021 $(31,116)(11,322)(10,417)
Benefit for income taxes(6,699)(6,699)
Net income (loss)$(4,623)$(3,718)
Less: Net income attributable to noncontrolling interests(1,949)(1,949)
Net income (loss) attributable to ACIC$(2,674)$(1,769)
Loss ratio, net (2) (3)
31.6 %71.6 %40.3 %
Expense ratio (2) (4)
53.5 %96.3 %63.7 %
Combined ratio (2) (5)
85.1 %167.9 %104.0 %
(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.

Depreciation and amortization related to our commercial lines operating segment totaled $3,247,000, $3,246,000, and $3,397,000 for the years ended December 31, 2023, 2022 and 2021 respectively.

Depreciation and amortization related to our personal lines operating segment totaled $1,602,000, $14,446,000, and $5,070,000 for the years ended December 31, 2023, 2022 and 2021 respectively. December 31, 2022 includes $10,156,000 related to the impairment of goodwill.
The tables below present the segment assets as of December 31, 2023 and 2022.

Assets by Segment as of December 31, 2023
CommercialPersonalAdjustmentsTotal
Assets by Segment before eliminations$944,212 $195,120 $(87,044)$1,052,288 
Adjustment by Segment for eliminations(48,053)(110,021)158,074 — 
Assets by Segment after eliminations$896,159 $85,099 $71,030 $1,052,288 

Assets by Segment as of December 31, 2022
CommercialPersonalAdjustmentsTotal
Assets by Segment before eliminations$1,588,385 $(149,816)$(35,888)$1,402,681 
Adjustment by Segment for eliminations(318,316)279,119 39,197 — 
Assets by Segment after eliminations$1,270,069 $129,303 $3,309 $1,402,681 
Disposal Groups, Including Discontinued Operations, Disclosure
3)    DISCONTINUED OPERATIONS

On August 25, 2022, we announced that our former subsidiary UPC had filed plans for withdrawal in the states of Florida, Louisiana, and Texas and intended to file a plan for withdrawal in the state of New York. All filed plans entailed non-renewing personal lines policies in these states. Additionally, we announced that Demotech, an insurance rating agency, notified UPC of its intent to withdraw UPC's Financial Stability Rating. On December 5, 2022, the FLOIR issued Consent Order No. 303643-22-CO that provided for the administrative supervision and approval of the plan of run-off for UPC (the "Consent Order"). The Consent Order provided formal approval of UPC's Plan of Run-Off (the "Plan") to facilitate a solvent wind down of its affairs in an orderly fashion. On February 10, 2023, we announced that a solvent run-off of UPC was unlikely, driven by Hurricane Ian losses which exhausted UPC's reinsurance coverage. On February 27, 2023, UPC was placed into receivership with the DFS which divested our ownership of UPC.

In the first quarter of 2023, the assets and liabilities of UPC were divested. In addition, activities provided by our entities, SCS, SLS and UIM, related directly to supporting the business conducted by UPC have been included. The assets and liabilities for the balance sheet as of December 31, 2022 are retrospectively reclassified as held for disposal, and the results of UPC and activities related directly to supporting the business conducted by UPC are presented as discontinued operations for all periods presented.
The results from discontinued operations for the year ended December 31, 2023, 2022 and 2021 are presented below.

Results From Discontinued Operations
Year Ended December 31,
202320222021
REVENUE:
Gross premiums written$(120,608)$551,720 $844,918 
Change in gross unearned premiums198,154 136,094 97,766 
Gross premiums earned77,546 687,814 942,684 
Ceded premiums earned(48,203)(494,534)(574,052)
Net premiums earned29,343 193,280 368,632 
Net investment income2,182 6,338 7,871 
Net realized investment gains (losses)1,343 (25,599)3,429 
Net unrealized gains (losses) on equity securities2,080 (4,617)1,766 
Other revenue2,717 16,229 24,144 
Total revenue37,665 185,631 405,842 
EXPENSES:
Losses and loss adjustment expenses36,898 502,842 333,083 
Policy acquisition costs(1,522)60,771 80,375 
Operating expenses5,170 29,903 39,999 
General and administrative expenses6,137 21,036 25,791 
Interest expense22 130 88 
Total expenses46,705 614,682 479,336 
Loss before other income(9,040)(429,051)(73,494)
Other income (loss)(2,004)52 54 
Loss before income taxes(11,044)(428,999)(73,440)
Provision (benefit) for income taxes(317)963 (17,290)
Loss from discontinued operations, net of tax$(10,727)$(429,962)$(56,150)


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 year ended December 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 assets51,625 33,548 
Total assets$946,451 $1,411,907 
LIABILITIES
Unpaid losses and loss adjustment expenses$920,431 $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 December 31, 2023 and 2022.

Major Classes of Assets and Liabilities Held for Disposal
December 31, 2023December 31, 2022
ASSETS
Property and equipment, net$8,095 $14,299 
Deferred policy acquisition costs— 8,609 
Total assets$8,095 $22,908 
LIABILITIES
Commissions Payable$— $987 
Unearned Policy Fees— 2,652 
Total Liabilities$— $3,639 
The Company incurred $3,441,000 of amortization related to capitalized software attributable to its discontinued operations during the year ended December 31, 2023. The Company incurred $3,413,000 of impairment related to goodwill and $1,440,000 of amortization related to capitalized software attributable to its discontinued operations during the year ended December 31, 2022. The Company incurred $2,349,000 of amortization related to capitalized software during the year ended December 31, 2021. There were no other noncash transactions for either period.