Discontinued Operations and Disposal Groups (Tables)

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations - Results of Ops IIC

The results from IIC's discontinued operations for the three and six months ended June 30, 2024 and 2023 are presented below.


IIC Results From Discontinued Operations
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
REVENUE:
Gross premiums written	$	6,002	$	7,063	$	18,859	$	17,545
Change in gross unearned premiums	2,756		1,299		(1,549)		(2,682)
Gross premiums earned	8,758		8,362		17,310		14,863
Ceded premiums earned	(2,316)		(3,207)		(4,769)		(7,025)
Net premiums earned	6,442		5,155		12,541		7,838
Net investment income	533		597		1,024		1,143
Net realized investment losses	(53)		(17)		(53)		(17)

Other revenue	15		18		31		34
Total revenue	6,937		5,753		13,543		8,998
EXPENSES:
Losses and loss adjustment expenses	5,887		4,670		9,319		7,181
Policy acquisition costs	1,984		2,019		4,182		3,825
Operating expenses	291		228		763		561
General and administrative expenses	134		169		792		351

Total expenses	8,296		7,086		15,056		11,918


Loss before income taxes	(1,359)		(1,333)		(1,513)		(2,920)
Provision (benefit) for income taxes (1)	(1,340)		(441)		(1,384)		(830)
Loss from discontinued operations, net of tax	$	(19)	$	(892)	$	(129)	$	(2,090)

(1) Includes $1,007,000 in tax benefit related to discontinued operations outside of IIC stand-alone results.

Discontinued Operations - Assets & Liabilities IIC

The major classes of IIC assets and liabilities as of June 30, 2024 and December 31, 2023 are presented below.


IIC Major Classes of Assets and Liabilities Disposed
	June 30, 2024		December 31, 2023
ASSETS
Fixed maturities, available-for-sale	$	38,428	$	42,316


Cash and cash equivalents	19,773		14,832

Accrued investment income	337		337
Premiums receivable, net	1,579		1,350
Reinsurance recoverable on paid and unpaid losses, net	289		282
Ceded unearned premiums	7,425		3,846
Deferred policy acquisition costs, net	3,555		3,892
Intangible assets, net	775		775
Other assets	1,544		1,418
Total assets	$	73,705	$	69,048

LIABILITIES
Unpaid losses and loss adjustment expenses	$	20,915	$	22,483
Unearned premiums	18,450		16,900
Reinsurance payable on premiums	7,069		2,312
Payments outstanding	2,380		1,410
Accounts payable and accrued expenses	423		501
Operating lease liability	20		37
Other liabilities	783		487

Total Liabilities	$	50,040	$	44,130

Discontinued Operations - Assets & Liabilities UPC

The major classes of assets and liabilities transferred as a result of the UPC transaction as of the date of transfer are presented below.


UPC 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.

Discontinued Operations - Results of Ops UPC

The results from UPC's discontinued operations, including the supporting activities provided by SCS, SLS and UIM for the three and six months ended June 30, 2024 and 2023 are presented below.


UPC Results From Discontinued Operations
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		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	—		1,191		—		36,417
Policy acquisition costs	—		(170)		—		(1,522)
Operating expenses	—		507		—		4,503
General and administrative expenses	—		1,275		—		2,559
Interest expense	—		—		—		22
Total expenses	—		2,803		—		41,979


Loss before income taxes	—		(2,803)		—		(4,314)
Provision (benefit) for income taxes	—		(230)		—		(214)
Loss from discontinued operations, net of tax	$	—	$	(2,573)	$	—	$	(4,100)