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Segment Reporting | 3 Months Ended
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Mar. 31, 2024
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. All of our commercial lines business is administered by an outside managing general underwriter, 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. 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 three months ended March 31, 2024 and 2023: •Both operating segments follow the accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2023; •Neither operating segment experienced significant non-cash transactions outside of depreciation and amortization for the three months ended March 31, 2024 and 2023. 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 The entire disclosure for reporting segments including data and tables. 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