Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations [Abstract]

Discontinued Operations

19. Discontinued Operations

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 $7,762. For additional information see Part I, Item 1, Note 2 “Basis of Presentation and Accounting Policies” of this Form 10-Q.

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	$	(0.41	)	$	(0.26	)	$	(0.44	)	$	(0.56	)
Diluted	$	(0.41	)	$	(0.26	)	$	(0.44	)	$	(0.56	)