INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

INTANGIBLE ASSETS

The carrying value of our goodwill was zero at December 31, 2020 and $15,091 at December 31, 2019, respectively. During the third quarter of 2020, we completed our annual quantitative analysis of goodwill. As a result of the quantitative analysis, we impaired the remaining balance of our goodwill of $15,091 as of September 30, 2020 based on the following factors: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, as a result of the COVID-19 pandemic and due to recent weather related catastrophes; (ii) recent elevated commercial auto loss ratios; and (iii) the fair value of our stock trading significantly below book value. The Company used a weighting of the income and market approaches to determine the fair value of the reporting unit.

Our major classes of intangible assets are presented in the following table:

	Year Ended December 31,
	2020		2019
Agency relationships	$	10,338	$	10,338
Accumulated amortization - agency relationships	(7,307)		(6,731)
	$	3,031	$	3,607
Software	$	3,260	$	3,260
Accumulated amortization - software	(3,260)		(3,260)
	$	—	$	—
Trade names	$	1,978	$	1,978
Accumulated amortization - trade names	(1,286)		(1,154)
	$	692	$	824
Favorable contract	$	286	$	286
Accumulated amortization - favorable contract	(286)		(286)
	$	—	$	—
State insurance licenses (1)	$	3,020	$	3,020
Net intangible assets	$	6,743	$	7,451

(1) The intangible asset for licenses has an indefinite life and therefore is not amortized.

The estimated useful lives assigned to our major classes of amortizable intangible assets are as follows:

	Useful Life
Agency relationships	Fifteen years
Software	Two years
Trade names	Fifteen years
Favorable contract	Two years

Our estimated aggregate amortization expense for each of the next five years is as follows:

2021	$	709
2022	709
2023	709
2024	709
2025	709