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Discontinued Operations (As Restated) | 6 Months Ended
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Jun. 30, 2024
Discontinued Operations [Abstract] |
Discontinued Operations (As Restated) |
| 19. | Discontinued Operations (As Restated)
On May 7, 2024, we entered into a definitive agreement to sell our subsidiary, Westminster, to Scott Insurance Holdings, for a cash purchase price of $10,500, as well as a $1,772 post-closing adjustment pursuant to the purchase agreement, for a net amount of $12,272. The sale closed on June 30, 2024, and we reported an after-tax loss on the sale of discontinued operations of $11,148. For additional information see Part I, Item 1, Note 2 “Basis of Presentation and Accounting Policies” of this Form 10-Q/A. The assets and liabilities associated with discontinued operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The Company’s Consolidated Statements of Cash Flows presents operating, investing, and financing cash flows of the discontinued operations separately. The major assets and liability categories were as follows as of the dates indicated:
|  | June 30, 2024 |  |  | December 31, 2023 |
Assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 15,656 |
Fixed income securities, at fair value |  |  | — |  |  |  | 58,332 |
Equity securities, at fair value |  |  | — |  |  |  | 5,784 |
Total cash and investments |  |  | — |  |  |  | 79,772 |
Premiums and agents’ balances receivable |  |  | — |  |  |  | 17,904 |
Deferred policy acquisition costs |  |  | — |  |  |  | 7,330 |
Reinsurance premiums receivable |  |  | — |  |  |  | 5,464 |
Reinsurance recoverables on losses |  |  | — |  |  |  | 42,509 |
Accrued investment income |  |  | — |  |  |  | 438 |
Property and equipment, net |  |  | — |  |  |  | 2,445 |
Deferred income taxes |  |  | — |  |  |  | (815 | )
Goodwill and other intangibles |  |  | — |  |  |  | 7,311 |
Other assets |  |  | — |  |  |  | 99 |
Total assets of discontinued operations |  | $ | — |  |  | $ | 162,457 |
Liabilities: |  |  |  |  |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | — |  |  | $ | 97,934 |
Unearned premiums |  |  | — |  |  |  | 38,000 |
Income tax payable (receivable) |  |  | — |  |  |  | (59 | )
Accrued expenses and other liabilities |  |  | — |  |  |  | 5,422 |
Total liabilities of discontinued operations |  | $ | — |  |  | $ | 141,297 |
Summary operating results of discontinued operations were as follows for the periods indicated:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 15,383 |  |  | $ | 15,311 |  |  | $ | 31,056 |  |  | $ | 30,067 |
Fee and other income |  |  | 7 |  |  |  | 9 |  |  |  | 14 |  |  |  | 22 |
Net investment income |  |  | 621 |  |  |  | 582 |  |  |  | 1,419 |  |  |  | 1,130 |
Net investment gains (losses) |  |  | (256 | ) |  |  | (1 | ) |  |  | 116 |  |  |  | 12 |
Total revenues |  |  | 15,755 |  |  |  | 15,901 |  |  |  | 32,605 |  |  |  | 31,231 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  | 11,441 |  |  |  | 17,429 |  |  |  | 23,506 |  |  |  | 35,129 |
Amortization of deferred policy acquisition costs |  |  | 4,083 |  |  |  | 3,795 |  |  |  | 7,928 |  |  |  | 7,379 |
Other underwriting and general expenses |  |  | 1,495 |  |  |  | 1,820 |  |  |  | 3,088 |  |  |  | 3,675 |
Total expenses |  |  | 17,019 |  |  |  | 23,044 |  |  |  | 34,522 |  |  |  | 46,183 |
Loss before income taxes |  |  | (1,264 | ) |  |  | (7,143 | ) |  |  | (1,917 | ) |  |  | (14,952 | )
Income tax benefit |  |  | (268 | ) |  |  | (1,484 | ) |  |  | (405 | ) |  |  | (2,979 | )
Net loss |  | $ | (996 | ) |  | $ | (5,659 | ) |  | $ | (1,512 | ) |  | $ | (11,973 | )
Loss per common share from discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.05 | ) |  | $ | (0.26 | ) |  | $ | (0.07 | ) |  | $ | (0.56 | )
Diluted |  | $ | (0.05 | ) |  | $ | (0.26 | ) |  | $ | (0.07 | ) |  | $ | (0.56 | )

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