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Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The tables below present the information for each of the reportable segment's profit or loss for the three months ended March 31, 2024 and 2023.
|  | Three Months Ended March 31, 2024
|  | Commercial |  | Personal (1) |  | Adjustments |  | Consolidated
REVENUE: |  |  |  |  |  |  |  |
Gross premiums written |  | $ | 184,601 |  |  | $ | 12,857 |  |  | $ | — |  |  | $ | 197,458 |
Change in gross unearned premiums |  | (24,331) |  |  | (4,305) |  |  | — |  |  | (28,636) |
Gross premiums earned |  | 160,270 |  |  | 8,552 |  |  | — |  |  | 168,822 |
Ceded premiums earned |  | (97,639) |  |  | (2,453) |  |  | — |  |  | (100,092) |
Net premiums earned |  | 62,631 |  |  | 6,099 |  |  | — |  |  | 68,730 |
Net investment income |  | 3,468 |  |  | 772 |  |  | 268 |  |  | 4,508 |
Net realized investment losses |  | — |  |  | — |  |  | — |  |  | — |
Net unrealized losses on equity securities |  | (50) |  |  | — |  |  | — |  |  | (50) |
Other revenue |  | — |  |  | 16 |  |  | — |  |  | 16 |
Total revenues |  | 66,049 |  |  | 6,887 |  |  | 268 |  |  | 73,204 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  | 11,553 |  |  | 4,353 |  |  | — |  |  | 15,906 |
Policy acquisition costs |  | 12,181 |  |  | (388) |  |  | — |  |  | 11,793 |
Operating expenses |  | 2,187 |  |  | 536 |  |  | 86 |  |  | 2,809 |
General and administrative expenses |  | 7,333 |  |  | 2,090 |  |  | 150 |  |  | 9,573 |
Interest expense |  | — |  |  | — |  |  | 2,719 |  |  | 2,719 |
Total expenses |  | 33,254 |  |  | 6,591 |  |  | 2,955 |  |  | 42,800 |
Income (loss) before other income |  | 32,795 |  |  | 296 |  |  | (2,687) |  |  | 30,404 |
Other income (loss) |  | — |  |  | 810 |  |  | — |  |  | 810 |
Income (loss) before income taxes |  | $ | 32,795 |  |  | $ | 1,106 |  |  | (2,687) |  |  | 31,214 |
Provision for income taxes |  |  |  |  |  | 7,615 |  |  | 7,615 |
Net income (loss) |  |  |  |  |  | $ | (10,302) |  |  | $ | 23,599 |
Loss ratio, net (2) (3) |  | 18.4 | % |  | 71.4 | % |  |  |  | 23.1 | %
Expense ratio (2) (4) |  | 34.6 | % |  | 36.7 | % |  |  |  | 35.2 | %
Combined ratio (2) (5) |  | 53.0 | % |  | 108.1 | % |  |  |  | 58.3 | %
(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 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 investment 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 |  | 2,754 |  |  | 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 |  | — |  |  | 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 |
Loss ratio, net (2) (3) |  | 17.7 | % |  | 29.0 | % |  |  |  | 18.9 | %
Expense ratio (2) (4) |  | 35.6 | % |  | 111.5 | % |  |  |  | 43.4 | %
Combined ratio (2) (5) |  | 53.3 | % |  | 140.5 | % |  |  |  | 62.3 | %
(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 $812,000 and $812,000 for the three months ended March 31, 2024 and 2023, respectively. Depreciation and amortization related to our personal lines operating segment totaled $1,273,000 and $1,007,000 for the three months ended March 31, 2024 and 2023, respectively. The tables below present the segment assets as of March 31, 2024 and December 31, 2023.
Assets by Segment as of |  |  |  |  |  |
|  | Commercial |  | Personal |  | Adjustments |  | Total
March 31, 2024 |  | $ | 903,446 |  |  | $ | 103,947 |  |  | $ | 69,918 |  |  | $ | 1,077,311 |
December 31, 2023 |  | 896,159 |  |  | 85,099 |  |  | 71,030 |  |  | 1,052,288 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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