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Discontinued Operations and Disposal Groups (Tables) | 3 Months Ended
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Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Disposal Groups, Assets & Liabilities | The results from discontinued operations for the three months ended March 31, 2024 and 2023 are presented below.
Results From Discontinued Operations |  |  |  |  |  |  |  |
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2024 |  | 2023
REVENUE: |  |  |  |  |  |  |  |
Gross premiums written |  |  |  |  |  | $ | — |  |  | $ | (120,608) |
Change in gross unearned premiums |  |  |  |  |  | — |  |  | 198,154 |
Gross premiums earned |  |  |  |  |  | — |  |  | 77,546 |
Ceded premiums earned |  |  |  |  |  | — |  |  | (48,203) |
Net premiums earned |  |  |  |  |  | — |  |  | 29,343 |
Net investment income |  |  |  |  |  | — |  |  | 2,182 |
Net realized investment gains |  |  |  |  |  | — |  |  | 1,343 |
Net unrealized gains on equity securities |  |  |  |  |  | — |  |  | 2,080 |
Other revenue |  |  |  |  |  | — |  |  | 2,717 |
Total revenue |  |  |  |  |  | — |  |  | 37,665 |
EXPENSES: |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  | — |  |  | 35,226 |
Policy acquisition costs |  |  |  |  |  | — |  |  | (1,352) |
Operating expenses |  |  |  |  |  | — |  |  | 3,996 |
General and administrative expenses |  |  |  |  |  | — |  |  | 1,284 |
Interest expense |  |  |  |  |  | — |  |  | 22 |
Total expenses |  |  |  |  |  | — |  |  | 39,176 |
Loss before other income |  |  |  |  |  | — |  |  | (1,511) |
Other income |  |  |  |  |  | — |  |  | — |
Loss before income taxes |  |  |  |  |  | — |  |  | (1,511) |
Provision (benefit) for income taxes |  |  |  |  |  | — |  |  | 16 |
Loss from discontinued operations, net of tax |  |  |  |  |  | $ | — |  |  | $ | (1,527) |
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 prior to the divestiture. The major classes of assets and liabilities transferred as a result of the transaction as of the date of transfer are presented below.
Major Classes of Assets and Liabilities Disposed |  |  |  |
|  | Closing (1) |  |
ASSETS |  |  |  |
Fixed maturities, available-for-sale |  | $ | 1,380 |  |  |
Equity securities |  | 272 |  |  |
Other investments |  | 12,882 |  |  |
Cash and cash equivalents |  | 224,824 |  |  |
Restricted cash |  | 7,758 |  |  |
Accrued investment income |  | 875 |  |  |
Premiums receivable, net |  | 22,733 |  |  |
Reinsurance recoverable on paid and unpaid losses, net |  | 548,929 |  |  |
Ceded unearned premiums |  | 75,262 |  |  |
Deferred policy acquisition costs, net |  | (89) |  |  |
Other assets |  | 51,625 |  |  |
Total assets |  | $ | 946,451 |  |  |
LIABILITIES |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | 920,431 |  |  |
Unearned premiums |  | 98,655 |  |  |
Reinsurance payable on premiums |  | 12,612 |  |  |
Payments outstanding |  | 144,238 |  |  |
Accounts payable and accrued expenses |  | 1,361 |  |  |
Other liabilities |  | 3,476 |  |  |
Notes payable, net |  | 4,118 |  |  |
Total Liabilities |  | $ | 1,184,891 |  |  |
(1) The Company divested its ownership on February 27, 2023, the date the DFS was appointed as receiver of the entity. During the first quarter of 2024, due to a change in circumstances, the Company evaluated its capitalized software, previously classified as held for disposal at December 31, 2023. As a result of this evaluation, it was determined that the use case of the software by the Company has shifted. The Company has reclassified this asset and the associated amortization expense in the current period presented within this footnote in accordance with GAAP guidance, resulting in amortization expense for the capitalized software being captured in continuing operations prospectively. Property & equipment of $8,095,000 at December 31, 2023 was also reclassed at March 31, 2024, before current quarter amortization. As a result of the reclassification in the first quarter of 2024, described above, the Company held no assets or liabilities for disposal at March 31, 2024. At December 31, 2023, assets held for disposal consisted of property & equipment totaling $8,095,000. There were no liabilities held for disposal at December 31, 2023. In addition, other than the item related to capitalized software noted above, there were no non-cash transactions during the three months ended March 31, 2024. During the three months ended March 31, 2023, amortization attributed to discontinued operations totaled $252,000.

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