Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill at December 31, 2024, 2023, and 2022 was $59,476,000.

For the 2024 annual goodwill impairment test, we utilized the quantitative assessment for our goodwill, determining that it was not impaired. This testing took place during the fourth quarter of 2024. As a result of the strategic decision to place our former subsidiary, UPC, into an orderly runoff, we recognized an impairment of our goodwill totaling $10,156,000 during the third quarter of 2022 related to IIC.

There was no additional goodwill acquired or disposed of during the years ended December 31, 2024, 2023 and 2022. Accumulated impairment related to goodwill was $10,156,000 at December 31, 2024, 2023 and 2022, attributable wholly to IIC.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as other assets on our Consolidated Balance Sheets at:


	December 31, 2024		December 31, 2023
Intangible assets subject to amortization	$	5,485	$	8,125
Indefinite-lived intangible assets(1)	423		423
Total	$	5,908	$	8,548

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:


	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
2024

Agency agreements acquired	2.3	34,661		(29,176)		5,485
Trade names acquired	—	6,381		(6,381)		—
Total		$	41,042	$	(35,557)	$	5,485
2023

Agency agreements acquired	3.3	34,661		(26,738)		7,923
Trade names acquired	0.3	6,381		(6,179)		202
Total		$	41,042	$	(32,917)	$	8,125

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the years ended December 31, 2024 and 2023; however, during the year ended December 31, 2023, we disposed of intangible assets totaling $200,000.

Amortization expense of our intangible assets was $2,640,000, $3,247,000 and $3,247,000 for the years ended December 31, 2024, 2023 and 2022, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows:


Year ending December 31,	Estimated Amortization Expense
2025	$	2,439
2026	2,438
2027	609
2028	—
2029	—