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Discontinued Operations and Disposal Groups (Tables)
 3 Months Ended
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,
20242023
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 securities272 
Other investments12,882 
Cash and cash equivalents224,824 
Restricted cash7,758 
Accrued investment income875 
Premiums receivable, net22,733 
Reinsurance recoverable on paid and unpaid losses, net548,929 
Ceded unearned premiums75,262 
Deferred policy acquisition costs, net(89)
Other assets51,625 
Total assets$946,451 
LIABILITIES
Unpaid losses and loss adjustment expenses$920,431 
Unearned premiums98,655 
Reinsurance payable on premiums12,612 
Payments outstanding144,238 
Accounts payable and accrued expenses1,361 
Other liabilities3,476 
Notes payable, net4,118 
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.