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Discontinued Operations | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 4) DISCONTINUED OPERATIONS On May 9, 2024, the Company entered into the Sale Agreement with Forza in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of IIC. Forza’s application to acquire IIC was approved by the NYDFS on February 13, 2025 and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impact. The Company also recognized a $1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which was included in accumulated other comprehensive loss on the Company's Consolidated Balance Sheet prior to the sale. The total tax benefit related to the sale and realized loss on fixed maturity portfolio was $528,000. The results from IIC's discontinued operations for the three and six months ended June 30, 2025 and 2024 are presented below. IIC Results from Discontinued Operations
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 (2) |  |  | 2024 |  |  | 2025 |  |  | 2024 |
REVENUE: |  |  |  |  |  |  |  |  |  |  |  |
Gross premiums written |  | $ | — |  |  | $ | 6,002 |  |  | $ | 13,120 |  |  | $ | 18,859 |
Change in gross unearned premiums |  |  | — |  |  |  | 2,756 |  |  |  | (3,336 | ) |  |  | (1,549 | )
Gross premiums earned |  |  | — |  |  |  | 8,758 |  |  |  | 9,784 |  |  |  | 17,310 |
Ceded premiums earned |  |  | — |  |  |  | (2,316 | ) |  |  | (2,528 | ) |  |  | (4,769 | )
Net premiums earned |  |  | — |  |  |  | 6,442 |  |  |  | 7,256 |  |  |  | 12,541 |
Net investment income |  |  | — |  |  |  | 533 |  |  |  | 538 |  |  |  | 1,024 |
Net realized investment losses |  |  | — |  |  |  | (53 | ) |  |  | (2 | ) |  |  | (53 | )
Other revenue |  |  | — |  |  |  | 15 |  |  |  | 16 |  |  |  | 31 |
Total revenue |  |  | — |  |  |  | 6,937 |  |  |  | 7,808 |  |  |  | 13,543 |
EXPENSES: |  |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  | — |  |  |  | 5,887 |  |  |  | 3,179 |  |  |  | 9,319 |
Policy acquisition costs |  |  | — |  |  |  | 1,984 |  |  |  | 1,906 |  |  |  | 4,182 |
General and administrative expenses |  |  | — |  |  |  | 425 |  |  |  | 546 |  |  |  | 1,555 |
Total expenses |  |  | — |  |  |  | 8,296 |  |  |  | 5,631 |  |  |  | 15,056 |
Income (loss) before income taxes |  |  | — |  |  |  | (1,359 | ) |  |  | 2,177 |  |  |  | (1,513 | )
Provision (benefit) for income taxes(1) |  |  | — |  |  |  | (1,340 | ) |  |  | 540 |  |  |  | (1,384 | )
Income (loss) from discontinued operations, net of tax |  | $ | — |  |  | $ | (19 | ) |  | $ | 1,637 |  |  | $ | (129 | )
(1) Includes $1,007,000 in tax benefit related to discontinued operations outside of IIC stand-alone results for the three and six months ended June 30, 2024. (2) Excludes loss on sale and realization of unrealized losses on fixed maturity portfolio, the details of which are described above and are not operational results related to IIC. The major classes of IIC assets and liabilities transferred as a result of the sale as of the date of sale and December 31, 2024 are presented below. IIC Major Classes of Assets and Liabilities Sold and Disposed
|  | April 1, 2025 |  |  | December 31, 2024 |
ASSETS |  |  |  |  |  |
Fixed maturities, available-for-sale |  | $ | 40,925 |  |  | $ | 38,523 |
Other investments |  |  | 988 |  |  |  | 978 |
Cash and cash equivalents |  |  | 21,206 |  |  |  | 22,897 |
Accrued investment income |  |  | 297 |  |  |  | 317 |
Premiums receivable, net |  |  | 3,174 |  |  |  | 1,606 |
Reinsurance recoverable on paid and unpaid losses, net |  |  | 265 |  |  |  | 259 |
Ceded unearned premiums |  |  | 2,004 |  |  |  | 4,075 |
Deferred policy acquisition costs, net |  |  | 4,462 |  |  |  | 3,647 |
Intangible assets, net |  |  | 775 |  |  |  | 775 |
Other assets |  |  | 488 |  |  |  | 166 |
Total assets |  | $ | 74,584 |  |  | $ | 73,243 |
LIABILITIES |  |  |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | 21,391 |  |  | $ | 21,499 |
Unearned premiums |  |  | 23,574 |  |  |  | 20,238 |
Reinsurance payable on premiums |  |  | — |  |  |  | 3,966 |
Payments outstanding |  |  | 2,223 |  |  |  | 3,091 |
Accounts payable and accrued expenses |  |  | 101 |  |  |  | 1,058 |
Operating lease liability |  |  | 65 |  |  |  | 69 |
Other liabilities |  |  | 1,402 |  |  |  | 21 |
Total liabilities |  | $ | 48,756 |  |  | $ | 49,942 |
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 shifted. The Company reclassified this asset and the associated amortization expense in 2024 in accordance with GAAP guidance, resulting in amortization expense for the capitalized software being captured in continuing operations prospectively. The value of this capitalized software at the time of reclassification was $8,095,000. There were no other non-cash transactions during the six months ended June 30, 2025 and 2024.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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