Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Note 13. Segment Reporting

The Company has two operating segments—insurance and asset management. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. Our insurance segment consists of the operations of our Cayman Islands-based reinsurance subsidiary, FGRe, which, as of December 31, 2022, included our seven reinsurance agreements, as well as the returns associated with the investments made by our reinsurance operations, which, up until the sale of its final shares held in October 2022, included the Company’s FedNat common stock investment, as well as a portion of our investments in the SPACs which we have sponsored. Net premiums earned within this segment relates entirely to property and casualty assumed premium. Our asset management segment includes our investment in the Fund, as well as our investment advisory agreement with FedNat.

The following table presents the financial information for each segment that is specifically identifiable or based on allocations using internal methodology as of and for the twelve months ended December 31, 2022 and 2021. The ‘other’ category in the table below consists largely of corporate general and administrative expenses which have not been allocated to a specific segment. Segment assets for the “other” category primarily consist of unrestricted cash in the amounts of $3.0 million and $14.2 million as of December 31, 2022 and 2021, respectively.

(in thousands)

For the year ended December 31, 2022	Insurance			Asset Management		Other			Total
Net premiums earned	$	12,998		$	–	$	–		$	12,998
Net investment income		3,160			3,617		–			6,777
Other income		–			195		125			320
Total revenue		16,158			3,812		125			20,095
Income (loss) before income tax		4,798			3,765		(7,475	)		1,088
As of December 31, 2022
Segment assets	$	27,086		$	19,070	$	3,319		$	49,475
For the year ended December 31, 2021
Net premiums earned	$	4,864		$	-	$	–		$	4,864
Net investment (loss) income		(2,535	)		5,080		-			2,545
Other income		-			186		-			186
Total revenue		2,329			5,266		-			7,595
Income (loss) before income tax		(4,173	)		4,665		(7,825	)		(7,333	)
As of December 31, 2021
Segment assets	$	14,657		$	11,413	$	14,759		$	40,829