AMERICAN COASTAL INSURANCE Corp 10-Q for FY2023 Q1

AMERICAN COASTAL INSURANCE Corp (ACIC)

10-Q 2023-05-19 For: 2023-03-31

Added on April 12, 2026

About this 10-Q

AMERICAN COASTAL INSURANCE Corp filed this 10-Q on May 19, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $260.88M; compared with a net loss of $33.17M a year earlier
Diluted EPS: $5.99; compared with -$0.77 a year earlier

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Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share	UIHC	Nasdaq Stock Market LLC


PART I. FINANCIAL INFORMATION
	Item 1. Financial Statements	4
	Condensed Consolidated Balance Sheets (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	5
	Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	36
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	55
	Item 4. Controls and Procedures	55
PART II. OTHER INFORMATION
	Item 1. Legal Proceedings	55
	Item 1A. Risk Factors	56
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	56
	Item 3. Defaults Upon Senior Securities	56
	Item 4. Mine Safety Disclosures	56
	Item 5. Other Information	56
	Item 6. Exhibits	56
Signatures		57


	March 31, 2023		December 31, 2022
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale (amortized cost of $239,473 and $237,735, respectively)	$	210,733	$	204,682
Equity securities	16,181		15,657
Other investments (amortized cost of $2,917 and $3,072, respectively)	3,550		3,675

Total investments	$	230,464	$	224,014
Cash and cash equivalents	92,586		70,903
Restricted cash	49,671		45,988
Total cash, cash equivalents and restricted cash	$	142,257	$	116,891
Accrued investment income	1,818		1,605
Property and equipment, net	18,118		19,591
Premiums receivable, net (credit allowance of $27 and $32, respectively)	48,120		39,301
Reinsurance recoverable on paid and unpaid losses, net (credit allowance of $150 and $333, respectively)	792,350		796,546
Ceded unearned premiums	65,702		90,496
Goodwill	59,476		59,476
Deferred policy acquisition costs, net	59,897		60,979
Intangible assets, net	11,758		12,770
Other assets	15,426		3,920
Assets held for disposal	—		1,411,907
Total Assets	$	1,445,386	$	2,837,496
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	748,365	$	842,958
Unearned premiums	301,625		258,978
Reinsurance payable on premiums	33,908		30,503
Payments outstanding	2,326		2,000
Accounts payable and accrued expenses	89,582		75,374
Operating lease liability	1,412		1,689
Other liabilities	36,242		17,466
Notes payable, net	148,438		148,355
Liabilities held for disposal	—		1,642,212
Total Liabilities	$	1,361,898	$	3,019,535
Commitments and contingencies (Note 11)
Stockholders' Equity:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding	$	—	$	—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 43,486,442 and 43,492,256 issued, respectively; 43,274,359 and 43,280,173 outstanding, respectively	4		4
Additional paid-in capital	395,966		395,631
Treasury shares, at cost: 212,083 shares	(431)		(431)
Accumulated other comprehensive loss	(25,629)		(30,947)
Retained earnings (deficit)	(286,422)		(546,296)


Total Stockholders' Equity (Deficit)	$	83,488	$	(182,039)
Total Liabilities and Stockholders' Equity	$	1,445,386	$	2,837,496


	Three Months Ended
	March 31,
		2023		2022
REVENUE:
Gross premiums written		$	187,123	$	142,414
Change in gross unearned premiums		(42,647)		(19,681)
Gross premiums earned		144,476		122,733
Ceded premiums earned		(57,152)		(64,987)
Net premiums earned		87,324		57,746
Net investment income		2,589		1,404
Net realized investment gains (losses)		(83)		37
Net unrealized gains (losses) on equity securities		474		(770)
Management fee income		9,668		50,206
Other revenue		4,075		8,738
Total revenue		104,047		117,361
EXPENSES:
Losses and loss adjustment expenses		19,073		32,518
Policy acquisition costs		26,927		52,152
Operating expenses		5,651		10,603
General and administrative expenses		9,837		15,435
Interest expense		2,719		2,359
Total expenses		64,207		113,067
Income before other income		39,840		4,294
Other income		588		1,333
Income before income taxes		40,428		5,627
Provision for income taxes		9,855		980
Income from continuing operations, net of tax		$	30,573	$	4,647
Income (loss) from discontinued operations, net of tax		230,305		(37,904)
Net income (loss)		$	260,878	$	(33,257)
Less: Net loss attributable to NCI		—		(85)
Net income (loss) attributable to UIHC		$	260,878	$	(33,172)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on investments		4,231		(27,689)
Reclassification adjustment for net realized investment losses		83		1,769

Income tax benefit related to items of other comprehensive income (loss)		—		6,236
Total comprehensive income (loss)		$	265,192	$	(52,941)
Less: Comprehensive loss attributable to NCI		—		(643)
Comprehensive income (loss) attributable to UIHC		$	265,192	$	(52,298)

Weighted average shares outstanding
Basic		43,124,825		42,980,691
Diluted		43,574,840		42,980,691

Earnings available to UIHC common stockholders per share
Basic
Continuing operations		$	0.71	$	0.11
Discontinued operations		5.34		(0.88)
Total		$	6.05	$	(0.77)
Diluted
Continuing operations		$	0.70	$	0.11
Discontinued operations		5.29		(0.88)
Total		$	5.99	$	(0.77)


	Common Stock			Additional Paid-in Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Deficit		Stockholders' Equity Attributable to UIHC		NCI		Total Stockholders’ Equity
	Number of Shares	Dollars

December 31, 2021	43,370,442	$	4	$	394,268	$	(431)	$	(6,531)	$	(74,904)	$	312,406	$	19,551	$	331,957
Net loss	—	—		—		—		—		(33,172)		(33,172)		(85)		(33,257)
Other comprehensive loss, net	—	—		—		—		(19,126)		—		(19,126)		(558)		(19,684)
Stock Compensation	(112,847)	—		452		—		—		—		452		—		452

Cash dividends on common stock ($0.06 per common share)	—	—		—		—		—		(2,589)		(2,589)		—		(2,589)


March 31, 2022	43,257,595	$	4	$	394,720	$	(431)	$	(25,657)	$	(110,665)	$	257,971	$	18,908	$	276,879


	Three Months Ended March 31,
	2023		2022
OPERATING ACTIVITIES
Net income (loss)	$	260,878	$	(33,257)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,155		2,606
Bond amortization and accretion	160		1,634
Net realized losses (gains) on investments	(1,260)		1,769
Net unrealized losses (gains) on equity securities	(2,554)		2,268
Provision for uncollectable premiums	5		12
Provision for uncollectable reinsurance recoverables	183		168

Deferred income taxes, net	15,767		(11,351)
Stock based compensation	335		452

Settlement of receivable owed by HCI in connection with purchase agreement	—		3,800
Gain on sale of property and equipment	(422)		(1,528)
Fixed asset disposal	524		343
Disposition of former subsidiary	(229,183)		—
Changes in operating assets and liabilities:
Accrued investment income	369		437
Premiums receivable	15,178		2,265
Reinsurance recoverable on paid and unpaid losses	289,946		85,140
Ceded unearned premiums	72,064		146,667
Deferred policy acquisition costs, net	(875)		(7,193)
Other assets	(31,630)		(4,618)
Receivable from sale of building	—		3,236
Unpaid losses and loss adjustment expenses	(278,142)		(117,236)
Unearned premiums	(145,540)		(39,731)
Reinsurance payable on premiums	(13,376)		(51,714)
Payments outstanding	(68,493)		(10,246)
Accounts payable and accrued expenses	16,440		(2,924)
Operating lease liability	(277)		(183)
Other liabilities	(6,416)		8,291
Net cash provided by (used in) operating activities	$	(104,164)	$	(20,893)
INVESTING ACTIVITIES
Proceeds from sales, maturities and repayments of:
Fixed maturities	178,211		85,978
Equity securities	24,163		88
Other investments	227		1,063

Purchases of:
Fixed maturities	(7,439)		(13,415)
Equity securities	(80)		(3,121)
Other investments	—		(459)
Proceeds from sale of property and equipment	464		730
Cost of property, equipment and capitalized software acquired	(154)		(1,406)
Disposition of cash on divestiture of subsidiary	(232,582)		—
Net cash provided by (used in) investing activities	$	(37,190)	$	69,458
FINANCING ACTIVITIES

Repayments of borrowings	—		(381)
Dividends	—		(2,589)


Net cash used in financing activities	$	—	$	(2,970)
Increase in cash, cash equivalents and restricted cash, including cash classified as assets held for disposal	(141,354)		45,595
Cash, cash equivalents and restricted cash at beginning of period	283,611		245,278


Cash, cash equivalents and restricted at end of period	$	142,257	$	290,873
Supplemental Cash Flows Information
Interest paid	$	—	$	35
Income taxes paid	$	5,325	$	77


Results From Discontinued Operations
	Three Months Ended March 31,
	2023		2022
REVENUE:
Gross premiums written	$	(120,608)	$	146,828
Change in gross unearned premiums	198,154		59,726
Gross premiums earned	77,546		206,554
Ceded premiums earned	(48,203)		(163,443)
Net premiums earned	29,343		43,111
Net investment income	2,182		1,075
Net realized investment gains (losses)	1,343		(1,806)
Net unrealized gains (losses) on equity securities	2,080		(1,498)
Other revenue	71		170
Total revenue	35,019		41,052
EXPENSES:
Losses and loss adjustment expenses	33,978		64,691
Policy acquisition costs	8,361		24,070
Operating expenses	513		1,645
General and administrative expenses	240		570
Interest expense	22		20
Total expenses	43,114		90,996
Loss before other income	(8,095)		(49,944)
Other income (loss)	—		9
Loss before income taxes	(8,095)		(49,935)
Provision (benefit) for income taxes	(9,217)		(12,031)
Income (loss) from discontinued operations, net of tax	$	1,122	$	(37,904)


Major Classes of Assets and Liabilities Disposed
	Closing (1)		December 31, 2022
ASSETS
Fixed maturities, available-for-sale	1,380		171,781
Equity securities	272		23,363
Other investments	12,882		12,952
Cash and cash equivalents	224,824		158,990
Restricted cash	7,758		7,730
Accrued investment income	875		1,457
Premiums receivable, net	22,733		46,736
Reinsurance recoverable on paid and unpaid losses, net	548,929		834,863
Ceded unearned premiums	75,262		122,533
Deferred policy acquisition costs, net	(89)		(2,046)
Other assets	53,675		33,548
Total assets	$	948,501	$	1,411,907

LIABILITIES
Unpaid losses and loss adjustment expenses	920,431		1,103,980
Unearned premiums	98,655		286,842
Reinsurance payable on premiums	12,612		29,394
Payments outstanding	144,238		213,058
Accounts payable and accrued expenses	1,361		(872)
Other liabilities	(3,731)		5,692
Notes payable, net	4,118		4,118
Total Liabilities	$	1,177,684	$	1,642,212


	Three Months Ended March 31, 2023
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	176,641		$	10,482		$	—	$	187,123
Change in gross unearned premiums	(44,607)			1,960			—		(42,647)
Gross premiums earned	132,034			12,442			—		144,476
Ceded premiums earned	(53,374)			(3,778)			—		(57,152)
Net premiums earned	78,660			8,664			—		87,324
Net investment income	1,786			782			21		2,589
Net realized gains (losses)	(83)			—			—		(83)
Net unrealized losses on equity securities	473			—			1		474
Management fee income	—			9,668			—		9,668
Other revenue	—			4,075			—		4,075
Total revenues	80,836			23,189			22		104,047
EXPENSES:
Losses and loss adjustment expenses	13,901			5,172			—		19,073
Policy acquisition costs	25,166			1,761			—		26,927
Operating expenses	96			5,431			124		5,651
General and administrative expenses (2)	2,754			6,951			132		9,837
Interest expense	—			—			2,719		2,719
Total expenses	41,917			19,315			2,975		64,207
Income (loss) before other income	38,919			3,874			(2,953)		39,840
Other income (loss)	—			803			(215)		588
Income (loss) before income taxes	$	38,919		$	4,677		(3,168)		40,428
Provision for income taxes							9,855		9,855
Net income (loss)							$	(13,023)	$	30,573
Less: Net loss attributable to noncontrolling interests							—		—
Net income (loss) attributable to UIHC							$	(13,023)	$	30,573

Loss ratio, net (3) (4)	17.7		%	59.7		%			21.9		%
Expense ratio (3) (5)	35.6		%	163.2		%			48.6		%
Combined ratio (3) (6)	53.3		%	222.9		%			70.5		%

Total segment assets	$	1,304,499		$	130,045		$	10,842	$	1,445,386


	Three Months Ended March 31, 2022
	Commercial			Personal (1)			Adjustments		Consolidated
REVENUE:
Gross premiums written	$	127,964		$	14,450		$	—	$	142,414
Change in gross unearned premiums	(20,499)			818			—		(19,681)
Gross premiums earned	107,465			15,268			—		122,733
Ceded premiums earned	(62,022)			(2,965)			—		(64,987)
Net premiums earned	45,443			12,303			—		57,746
Net investment income	1,127			268			9		1,404
Net realized gains	2			35			—		37
Net unrealized losses on equity securities	(769)			—			(1)		(770)
Management fee income	—			50,206			—		50,206
Other revenue	—			8,738			—		8,738
Total revenues	45,803			71,550			8		117,361
EXPENSES:
Losses and loss adjustment expenses	14,114			18,404			—		32,518
Policy acquisition costs	16,678			35,474			—		52,152
Operating expenses	1,109			9,403			91		10,603
General and administrative expenses (2)	2,320			12,734			381		15,435
Interest expense	—			—			2,359		2,359
Total expenses	34,221			76,015			2,831		113,067
Income (loss) before other income	11,582			(4,465)			(2,823)		4,294
Other income	—			(277)			1,610		1,333
Income (loss) before income taxes	$	11,582		$	(4,742)		(1,213)		5,627
Provision for income taxes							980		980
Net income (loss)							$	(2,193)	$	4,647
Less: Net income attributable to noncontrolling interests							(85)		(85)
Net income (loss) attributable to UIHC							$	(2,108)	$	4,732








Loss ratio, net (3) (4) (7)	31.1		%	149.6		%			56.3		%
Expense ratio (3) (5) (7)	44.2		%	468.3		%			135.4		%
Combined ratio (3) (6) (7)	75.3		%	617.9		%			191.7		%

Total segment assets	$	949,359		$	179,208		$	17,507	$	1,146,074


	Cost or Adjusted/Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	$	3,491	$	—	$	82	$	3,409
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	31,924		15		3,357		28,582
Public utilities	8,913		—		1,093		7,820
Corporate securities	99,324		58		13,659		85,723
Mortgage-backed securities	64,285		—		8,283		56,002
Asset-backed securities	30,536		36		2,366		28,206

Total fixed maturities	$	239,473	$	109	$	28,849	$	210,733

December 31, 2022
U.S. government and agency securities	$	2,490	$	—	$	105	$	2,385
Foreign government	1,000		—		9		991
States, municipalities and political subdivisions	30,958		2		4,065		26,895
Public utilities	8,936		—		1,242		7,694
Corporate securities	99,062		20		15,739		83,343
Mortgage-backed securities	65,251		—		9,136		56,115
Asset-backed securities	30,038		9		2,788		27,259

Total fixed maturities	$	237,735	$	31	$	33,084	$	204,682


	March 31, 2023				December 31, 2022
	Estimated Fair Value		Percent of Total		Estimated Fair Value		Percent of Total

Mutual funds	$	16,181	100.0	%	$	15,657	100.0	%


	2023				2022
	Gains (Losses)		Fair Value at Sale		Gains (Losses)		Fair Value at Sale










Three Months Ended March 31,
Fixed maturities	$	4	$	5,292	$	41	$	12,192
Equity securities	—		—		—		—
Short-term investments	—		126		—		—
Total realized gains	4		5,418		41		12,192
Fixed maturities	(87)		(41)		(4)		251
Equity securities	—		—		—		—
Short-term investments	—		—		—		—
Total realized losses	(87)		(41)		(4)		251
Net realized investment gains (losses)	$	(83)	$	5,377	$	37	$	12,443


	March 31, 2023
	Cost or Amortized Cost		Percent of Total		Fair Value		Percent of Total
Due in one year or less	$	7,097	3.0	%	$	7,016	3.3	%
Due after one year through five years	50,754		21.2		46,402		22.0
Due after five years through ten years	82,508		34.5		69,386		32.9
Due after ten years	4,293		1.8		3,721		1.8
Asset and mortgage-backed securities	94,821		39.5		84,208		40.0
Total	$	239,473	100.0	%	$	210,733	100.0	%


	Less Than Twelve Months					Twelve Months or More
	Number of Securities(1)	Gross Unrealized Losses		Fair Value		Number of Securities(1)	Gross Unrealized Losses		Fair Value
March 31, 2023
U.S. government and agency securities	1	$	9	$	990	2	$	73	$	1,421
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	8	49		3,732		45	3,308		23,324
Public utilities	—	—		—		12	1,093		7,819
Corporate securities	35	547		10,964		115	13,112		71,582
Mortgage-backed securities	12	248		3,749		116	8,035		52,254
Asset-backed securities	7	36		3,013		54	2,330		22,632

Total fixed maturities	64	$	898	$	23,439	344	$	27,951	$	179,032

December 31, 2022
U.S. government and agency securities	3	$	105	$	2,385	—	$	—	$	—
Foreign governments	1	9		991		—	—		—
States, municipalities and political subdivisions	21	540		7,306		31	3,525		18,853
Public utilities	8	193		2,286		4	1,049		5,408
Corporate securities	78	2,279		24,594		77	13,460		57,765
Mortgage-backed securities	48	1,282		15,259		80	7,854		40,856
Asset-backed securities	16	795		6,397		46	1,993		19,028

Total fixed maturities	175	$	5,203	$	59,218	238	$	27,881	$	141,910


	March 31, 2023		December 31, 2022



Computer hardware and software (software in progress of $76 and $82, respectively)	$	29,746	$	29,760
Office furniture and equipment	798		1,414
Leasehold improvements	316		753
Leased vehicles(1)	11		1,080
Total, at cost	30,871		33,007
Less: accumulated depreciation and amortization	(12,753)		(13,416)
Property and equipment, net	$	18,118	$	19,591


	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
March 31, 2023
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.0	34,661		(24,910)		9,751
Trade names acquired	1.0	6,381		(5,572)		809
Total		$	83,830	$	(73,270)	$	10,560

December 31, 2022
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	4.3	34,661		(24,300)		10,361
Trade names acquired	1.3	6,381		(5,370)		1,011
Total		$	83,830	$	(72,458)	$	11,372


Year ending December 31,	Estimated Amortization Expense
Remaining in 2023	$	2,435
2024	2,640
2025	2,438
2026	2,438
2027	609
2028	—


	March 31,
	2023		2022
Balance at January 1	$	842,958	$	250,642
Less: reinsurance recoverable on unpaid losses	732,254		176,096
Net balance at January 1	$	110,704	$	74,546

Incurred related to:
Current year	22,238		35,582
Prior years	(3,165)		(3,064)
Total incurred	$	19,073	$	32,518
Paid related to:
Current year	13,303		17,236
Prior years	14,112		18,429
Total paid	$	27,415	$	35,665

Net balance at March 31	$	102,362	$	71,399
Plus: reinsurance recoverable on unpaid losses	646,003		168,174
Balance at March 31	$	748,365	$	239,573

Composition of reserve for unpaid losses and LAE:
Case reserves	$	284,679	$	119,969
IBNR reserves	463,686		119,604
Balance at March 31	$	748,365	$	239,573


	Total		Level 1		Level 2		Level 3
March 31, 2023
U.S. government and agency securities	$	3,409	$	—	$	3,409	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	28,582		—		28,582		—
Public utilities	7,820		—		7,820		—
Corporate securities	85,723		—		85,723		—
Mortgage-backed securities	56,002		—		56,002		—
Asset-backed securities	28,206		—		28,206		—

Total fixed maturities	210,733		—		210,733		—
Mutual funds	16,181		16,181		—		—





Total investments	$	226,914	$	16,181	$	210,733	$	—

December 31, 2022
U.S. government and agency securities	$	2,385	$	—	$	2,385	$	—
Foreign government	991		—		991		—
States, municipalities and political subdivisions	26,895		—		26,895		—
Public utilities	7,694		—		7,694		—
Corporate securities	83,343		—		83,343		—
Mortgage-backed securities	56,115		—		56,115		—
Asset-backed securities	27,259		—		27,259		—

Total fixed maturities	204,682		—		204,682		—
Mutual Funds	15,657		15,657		—		—



Total equity securities	15,657		15,657		—		—
Other investments (1)	125		—		125		—
Total investments	$	220,464	$	15,657	$	204,807	$	—


	Book Value		Unrealized Gain		Unrealized Loss		Fair Value
March 31, 2023
Limited partnership investments (1)	$	2,917	$	633	$	—	$	3,550


	March 31, 2023		December 31, 2022
Trust funds	$	49,046	$	45,364
Cash on deposit (regulatory deposits)	625		624
Total restricted cash	$	49,671	$	45,988


	March 31, 2023		December 31, 2022
Invested assets on deposit (regulatory deposits)	$	2,491	$	2,616


	March 31, 2023		December 31, 2022
Intangible assets subject to amortization	$	10,560	$	11,372
Indefinite-lived intangible assets(1)	1,198		1,398
Total	$	11,758	$	12,770


	March 31,		December 31,
	2023		2022
Reinsurance recoverable on unpaid losses and loss adjustment expenses	$	646,003	$	732,254
Reinsurance recoverable on paid losses and loss adjustment expenses	146,347		64,292
Reinsurance recoverable (1)	$	792,350	$	796,546


		Effective Interest Rate	Carrying Value at
	Maturity		March 31, 2023		December 31, 2022
Senior Notes	December 15, 2027	7.25%	$	150,000	$	150,000
Florida State Board of Administration Note (1)	July 1, 2026	N/A	—		—
Truist Term Note Payable (2)	May 26, 2031	N/A	—		—
Total long-term debt			$	150,000	$	150,000


	2023		2022
Balance at January 1,	$	1,645	$	1,998
Additions	—		—
Amortization	(83)		(84)
Balance at March 31,	$	1,562	$	1,914


	Financial Statement Line	March 31, 2023		December 31, 2022
Assets
Operating lease assets	Other assets	$	1,096	$	1,278
Financing lease assets	Property and equipment, net	2		51
Total lease assets		$	1,098	$	1,329

Liabilities
Operating lease liabilities	Operating lease liability	$	1,412	$	1,689
Financing lease liabilities	Other liabilities	—		2
Total lease liabilities		$	1,412	$	1,691


	Operating Leases		Finance Leases		Total
Remaining in 2023	$	682	$	—	$	682
2024	593		—		593
2025	222		—		222
2026	11		—		11
2027	—		—		—
Thereafter	—		—		—
Total undiscounted future minimum lease payments	1,508		—		1,508
Less: Imputed interest	(96)		—		(96)
Present value of lease liabilities	$	1,412	$	—	$	1,412


	March 31, 2023		December 31, 2022
Weighted average remaining lease term (months)
Operating leases	23		25
Financing leases	—		9

Weighted average discount rate
Operating leases	3.70	%	3.79	%
Financing leases	—	%	3.27	%


March 31, 2023	December 31, 2022		Provision for expected credit losses		Write-offs		March 31, 2023
Premiums Receivable	$	32	$	(34)	$	29	$	27
Reinsurance Recoverables	333		(183)		—		150

Total	$	365	$	(217)	$	29	$	177

March 31, 2022	December 31, 2021		Provision for expected credit losses		Write-offs		March 31, 2022
Premiums Receivable	$	16	$	(14)	$	10	$	12
Reinsurance Recoverables	58		22		—		80

Total	$	74	$	8	$	10	$	92


	March 31, 2023		December 31, 2022
ACIC(1)	101,811		77,511
IIC	23,966		26,152
Total	$	125,777	$	103,663


	Pre-Tax Amount		Tax (Expense) Benefit		Net-of-Tax Amount
December 31, 2022	$	(33,041)	$	2,094	$	(30,947)
Changes in net unrealized losses on investments	5,574		(315)		5,259
Reclassification adjustment for realized losses	(1,260)		315		(945)
Impact of deconsolidation of discontinued operations	$	(3)	$	1,007	$	1,004
March 31, 2023	$	(28,730)	$	3,101	$	(25,629)


	Number of Restricted Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2022	714,239	$	2.73
Granted	—	—
Less: Forfeited	856	3.59
Less: Vested	44,457	4.40
Outstanding as of March 31, 2023	668,926	$	2.62


	2023		2022
Expected annual dividend yield	—	%	—	%
Expected volatility	—	%	49.66	%
Risk-free interest rate	—	%	2.92	%
Expected term	N/A		6 years


	Number of Stock Options	Weighted Average Exercise Prices		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,250,685	$	3.71	7.66	$	—
Granted	—	—		—	—
Less: Forfeited	—	—		—	—
Less: Expired	161,925	3.05		—	—
Less: Exercised	—	—		—	—
Outstanding as of March 31, 2023	1,088,760	$	3.81	8.55	$	451

Vested as of March 31, 2023(1)	532,797	$	7.26	7.79	$	112
Exercisable as of March 31, 2023	270,861	$	6.57	7.89	$	112


	Personal				Commercial
	2023		2022		2023		2022






Three Months Ended March 31,
Non-at-Risk	(1.6)	%	(1.2)	%	(0.4)	%	(0.5)	%
Quota Share	—	%	—	%	(6.7)	%	(17.8)	%
All Other	(28.8)	%	(18.2)	%	(33.3)	%	(39.4)	%
Total Ceding Ratio	(30.4)	%	(19.4)	%	(40.4)	%	(57.7)	%


	2023					2022
	Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact		Number of Events	Incurred Loss and LAE (1)		Combined Ratio Impact






Three Months Ended March 31,
Current period catastrophe losses incurred
Named and numbered storms	—	$	—	—	%	—	$	—	—	%
All other catastrophe loss events	3	3,071		3.5	%	3	6,555		11.4	%
Total	3	$	3,071	3.5	%	3	$	6,555	11.4	%


($ in thousands)	Three Months Ended March 31,
	2023		2022		Change
Direct Written and Assumed Premium by State (1)
Florida	$	176,611	$	125,764	$	50,847
Texas	(9)		1,986		(1,995)
New York	10,482		14,450		(3,968)
South Carolina	—		93		(93)
Total direct written premium by state	187,084		142,293		44,791
Assumed premium (2)	39		121		(82)
Total gross written premium by state	$	187,123	$	142,414	$	44,709

Gross Written Premium by Line of Business
Personal property	$	10,482	$	14,450	$	(3,968)
Commercial property	176,641		127,964		48,677
Total gross written premium by line of business	$	187,123	$	142,414	$	44,709