Segment Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Information by Reportable Segment

The following table summarizes our net earned premiums:

	Net Earned Premium
	2022			2021			2020
Commercial		84	%		89	%		92	%
Personal		16	%		11	%		8	%
Total		100	%		100	%		100	%

The wholesale agency business sells insurance products on behalf of the Company’s commercial and personal lines businesses as well as to third-party insurers. Certain acquisition costs incurred by the commercial and personal lines businesses are reflected as commission revenue for the wholesale agency business and are eliminated in the Eliminations category.

In addition to the reportable segments, the Company maintains a Corporate and Other category to reconcile segment results to the consolidated totals. The Corporate and Other category includes: (i) corporate operating expenses such as salaries and related benefits of the Company’s executive management team, some finance and information technology personnel, and other corporate headquarters expenses, (ii) interest expense on the Company’s debt obligations; (iii) depreciation and amortization on property and equipment, and (iv) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains, and change in fair value of equity securities on the consolidated statements of operations. The Company’s assets on the consolidated balance sheet are not allocated to the reportable segments.

The following tables present information by reportable segment (dollars in thousands):

Year Ended December 31, 2022	Commercial Lines			Personal Lines			Under-writing			Wholesale Agency			Corp-orate			Elim-inations			Total
Gross written premiums	$	116,868		$	21,151		$	138,019		$	—		$	—		$	—		$	138,019
Net written premiums	$	72,318		$	18,914		$	91,232		$	—		$	—		$	—		$	91,232
Net earned premiums	$	80,823		$	15,888		$	96,711		$	—		$	—		$	—		$	96,711
Other income		245			82			327			5,712			271			(3,542	)		2,768
Segment revenue		81,068			15,970			97,038			5,712			271			(3,542	)		99,479
Loss and loss adjustment expenses, net		70,762			10,678			81,440			—			—			—			81,440
Policy acquisition costs		17,682			4,604			22,286			3,653			—			(3,760	)		22,179
Operating expenses		13,069			1,936			15,005			2,612			1,192			(20	)		18,789
Loss portfolio transfer risk fee		5,400			—			—			—			—			—			5,400
Segment expenses		106,913			17,218			118,731			6,265			1,192			(3,780	)		127,808
Segment underwriting gain (loss)		(25,845	)		(1,248	)		(21,693	)		(553	)		(921	)		238			(28,329	)
Net investment income										32				3,011						3,043
Net realized investment gains (losses)														(1,505	)					(1,505	)
Change in fair value of equity securities														403						403
Gain from VSRM Transaction														8,810						8,810
Other gains											(1	)		60						59
Interest expense											(42	)		(2,929	)					(2,971	)
Income (loss) before income taxes	$	(25,845	)	$	(1,248	)	$	(21,693	)	$	(564	)	$	6,929		$	238		$	(20,490	)
Selected Balance Sheet Data:
Deferred policy acquisition costs	$	7,683		$	2,796											$	(189	)	$	10,290
Unearned premiums		56,565			11,322															67,887
Unpaid losses and loss adjustment expenses		159,558			5,981															165,539

Year Ended December 31, 2021	Commercial Lines			Personal Lines		Under-writing			Wholesale Agency			Corp-orate			Elim-inations			Total
Gross written premiums	$	117,075		$	15,020	$	132,095		$	—		$	—		$	—		$	132,095
Net written premiums	$	87,307		$	14,122	$	101,429		$	—		$	—		$	—		$	101,429
Net earned premiums	$	87,759		$	11,043	$	98,802		$	—		$	—		$	—		$	98,802
Other income		215			143		358			5,848			365			(3,900	)		2,671
Segment revenue		87,974			11,186		99,160			5,848			365			(3,900	)		101,473
Loss and loss adjustment expenses, net		63,868			5,993		69,861			—			—			—			69,861
Policy acquisition costs		25,687			3,307		28,994			3,727			—			(4,270	)		28,451
Operating expenses		11,648			1,357		13,005			2,382			1,122			—			16,509
Segment expenses		101,203			10,657		111,860			6,109			1,122			(4,270	)		114,821
Segment underwriting gain (loss)		(13,229	)		529		(12,700	)		(261	)		(757	)	$	370			(13,348	)
Net investment income													1,968						1,968
Net realized investment gains													2,878						2,878
Change in fair value of equity securities													(2,020	)					(2,020	)
Other gains													11,664						11,664
Interest expense													(2,852	)					(2,852	)
Income (loss) before income taxes	$	(13,229	)	$	529	$	(12,700	)	$	(261	)	$	10,881		$	370		$	(1,710	)
Selected Balance Sheet Data:
Deferred policy acquisition costs	$	10,619		$	2,075										$	(427	)	$	12,267
Unearned premiums		57,491			7,778														65,269
Unpaid losses and loss adjustment expenses		135,084			4,001														139,085

Year Ended December 31, 2020	Commercial Lines			Personal Lines		Under-writing			Wholesale Agency			Corp-orate			Elim-inations			Total
Gross written premiums	$	102,763		$	8,572	$	111,335		$	—		$	—		$	—		$	111,335
Net written premiums	$	85,385		$	7,555	$	92,940		$	—		$	—		$	—		$	92,940
Net earned premiums	$	82,409		$	6,694	$	89,103		$	—		$	—		$	—		$	89,103
Other income		242			150		392			7,571			245			(5,593	)		2,615
Segment revenue		82,651			6,844		89,495			7,571			245			(5,593	)		91,718
Loss and loss adjustment expenses, net		53,263			2,965		56,228			—			—			—			56,228
Policy acquisition costs		25,051			2,044		27,095			4,938			—			(5,928	)		26,105
Operating expenses		12,644			1,069		13,713			3,107			1,648			—			18,468
Segment expenses		90,958			6,078		97,036			8,045			1,648			(5,928	)		100,801
Segment underwriting gain (loss)		(8,307	)		766		(7,541	)		(474	)		(1,403	)	$	335			(9,083	)
Net investment income													3,156						3,156
Net realized investment gains													8,126						8,126
Change in fair value of equity securities													228						228
Other gains													260						260
Interest expense													(2,925	)					(2,925	)
Income (loss) before income taxes	$	(8,307	)	$	766	$	(7,541	)	$	(474	)	$	7,442		$	335		$	(238	)
Selected Balance Sheet Data:
Deferred policy acquisition costs	$	11,858		$	1,183										$	(798	)	$	12,243
Unearned premiums		51,535			4,689														56,224
Unpaid losses and loss adjustment expenses		106,662			4,608														111,270