Sale of Renewal Rights

9 Months Ended

Sep. 30, 2023

Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]

On August 8, 2022, the Company sold the renewal rights related to its Farm, Ranch & Stable business for policies written on or after August 8, 2022 to Everett Cash Mutual Insurance Company for $30.0 million. The Company retained the unearned premium reserves for business written prior to August 8, 2022.

The gross proceeds from this sale of $30.0 million are included in other income on the Company’s consolidated statements of operations. In addition, the Company also recorded an impairment of goodwill, intangible assets, software, and lease costs in the amount of $0.6 million, $5.1 million, $0.5 million, and $0.5 million, respectively, for the quarter and nine months ended September 30, 2022. Legal expenses and merger and acquisition fees related to the sale were $2.5 million for the quarter and nine months ended September 30, 2022.

The impairments and expenses related to sale are included on the Company’s consolidated statements of operations for the quarter and nine months ended September 30, 2022 as follows:


(Dollars in thousands)
Acquisition costs and other underwriting expenses	$	1,034
Corporate and other operating expenses		8,142
Total impairments and expenses related to sale	$	9,176