v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 15 -- Segment Information

The Company identifies its operating divisions based on managerial emphasis, organizational structure and revenue source. The Company has five reportable segments: Insurance Operations, Exzeo Group, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo Group segment includes insurance solutions, information technology operations, and its management company’s activities. The Reciprocal Exchange Operations segment represents the insurance operations of CORE and Tailrow. The Real Estate segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The Corporate and Other segment represents the activities of the holding companies and any other companies, such as CRM and TRM, that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.

For the three months ended June 30, 2025 and 2024, revenue from the Insurance Operations segment before intracompany elimination represented 77.9% and 85.6%, respectively, and revenue from the Exzeo Group segment represented 16.3% and 8.9%, respectively, of total revenue of all operating segments. For the six months ended June 30, 2025 and 2024, revenue from the Insurance Operations segment before intracompany elimination represented 77.5% and 85.4%, respectively, and revenue from the Exzeo Group segment represented 16.5% and 10.7%, respectively, of total revenue of all operating segments. As of June 30, 2025 and December 31, 2024, Insurance Operations’ total assets represented 81.0% and 83.6%, respectively, and Exzeo Group’s total assets represented 6.0% and 3.7%, respectively, of the combined assets of all operating segments.

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

 

For Three Months Ended
June 30, 2025

 

Insurance
Operations

 

 

Exzeo
Group

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/ Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

282,269

 

 

$

—

 

 

$

21,639

 

 

$

—

 

 

$

—

 

 

$

(1,280

)

 

$

302,628

 

Premiums ceded

 

 

(95,017

)

 

 

—

 

 

 

(8,785

)

 

 

—

 

 

 

—

 

 

 

1,280

 

 

 

(102,522

)

Net premiums earned

 

 

187,252

 

 

 

—

 

 

 

12,854

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

200,106

 

Net income from investment portfolio

 

 

14,583

 

 

 

763

 

 

 

974

 

 

 

—

 

 

 

2,129

 

 

 

(669

)

 

 

17,780

 

Policy fee income

 

 

302

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

1,160

 

 

 

1,467

 

Other

 

 

3,602

 

 

 

56,091

 

 

 

4

 

 

 

3,493

 

 

 

2,548

 

 

 

(63,171

)

 

 

2,567

 

Total revenue

 

 

205,739

 

 

 

56,854

 

 

 

13,832

 

 

 

3,493

 

 

 

4,682

 

 

 

(62,680

)

 

 

221,920

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

82,365

 

 

 

—

 

 

 

4,842

 

 

 

—

 

 

 

—

 

 

 

(22,750

)

 

 

64,457

 

Amortization of deferred policy
  acquisition costs

 

 

27,027

 

 

 

—

 

 

 

1,415

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,442

 

Other policy acquisition expenses

 

 

15,268

 

 

 

10,074

 

 

 

2,836

 

 

 

—

 

 

 

1,339

 

 

 

(27,408

)

 

 

2,109

 

Stock-based compensation expense

 

 

325

 

 

 

706

 

 

 

—

 

 

 

—

 

 

 

1,664

 

 

 

—

 

 

 

2,695

 

Interest expense

 

 

—

 

 

 

—

 

 

 

1,124

 

 

 

215

 

 

 

3,529

 

 

 

(1,124

)

 

 

3,744

 

Depreciation and amortization

 

 

611

 

 

 

731

 

 

 

—

 

 

 

640

 

 

 

194

 

 

 

(505

)

 

 

1,671

 

Personnel and other operating expenses

 

 

12,071

 

 

 

16,454

 

 

 

808

 

 

 

2,064

 

 

 

5,443

 

 

 

(12,430

)

 

 

24,410

 

Total expenses

 

 

137,667

 

 

 

27,965

 

 

 

11,025

 

 

 

2,919

 

 

 

12,169

 

 

 

(64,217

)

 

 

127,528

 

Income (loss) before income taxes (d)

 

$

68,072

 

 

$

28,889

 

 

$

2,807

 

 

$

574

 

 

$

(7,487

)

 

$

1,537

 

 

$

94,392

 

Total revenue from non-affiliates (e)

 

$

201,670

 

 

$

2,513

 

 

$

15,112

 

 

$

2,629

 

 

$

1,327

 

 

 

 

 

 

 

Gross premiums written

 

$

337,502

 

 

$

—

 

 

$

19,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations includes $1,280 earned from reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo Group and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

 

For Three Months Ended
June 30, 2024

 

Insurance
Operations

 

 

Exzeo
Group

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/ Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

251,969

 

 

$

—

 

 

$

12,804

 

 

$

—

 

 

$

—

 

 

$

(1,212

)

 

$

263,561

 

Premiums ceded

 

 

(71,656

)

 

 

—

 

 

 

(6,269

)

 

 

—

 

 

 

—

 

 

 

1,212

 

 

 

(76,713

)

Net premiums earned

 

 

180,313

 

 

 

—

 

 

 

6,535

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

186,848

 

Net income from investment portfolio

 

 

11,966

 

 

 

129

 

 

 

139

 

 

 

—

 

 

 

3,975

 

 

 

1,417

 

 

 

17,626

 

Policy fee income

 

 

56

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,033

 

 

 

1,089

 

Other

 

 

4,268

 

 

 

27,893

 

 

 

9

 

 

 

5,834

 

 

 

3,611

 

 

 

(40,933

)

 

 

682

 

Total revenue

 

 

196,603

 

 

 

28,022

 

 

 

6,683

 

 

 

5,834

 

 

 

7,586

 

 

 

(38,483

)

 

 

206,245

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

80,064

 

 

 

—

 

 

 

1,605

 

 

 

—

 

 

 

—

 

 

 

(3,345

)

 

 

78,324

 

Amortization of deferred policy
  acquisition costs

 

 

21,863

 

 

 

—

 

 

 

88

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,951

 

Other policy acquisition expenses

 

 

10,490

 

 

 

7,552

 

 

 

1,805

 

 

 

—

 

 

 

—

 

 

 

(18,346

)

 

 

1,501

 

Stock-based compensation expense

 

 

319

 

 

 

656

 

 

 

—

 

 

 

—

 

 

 

1,401

 

 

 

—

 

 

 

2,376

 

Interest expense

 

 

—

 

 

 

1,806

 

 

 

559

 

 

 

221

 

 

 

3,231

 

 

 

(2,365

)

 

 

3,452

 

Depreciation and amortization

 

 

612

 

 

 

657

 

 

 

—

 

 

 

418

 

 

 

162

 

 

 

(285

)

 

 

1,564

 

Personnel and other operating expenses

 

 

14,864

 

 

 

10,821

 

 

 

52

 

 

 

1,629

 

 

 

4,140

 

 

 

(10,455

)

 

 

21,051

 

Total expenses

 

 

128,212

 

 

 

21,492

 

 

 

4,109

 

 

 

2,268

 

 

 

8,934

 

 

 

(34,796

)

 

 

130,219

 

Income (loss) before income taxes (d)

 

$

68,391

 

 

$

6,530

 

 

$

2,574

 

 

$

3,566

 

 

$

(1,348

)

 

$

(3,687

)

 

$

76,026

 

Total revenue from non-affiliates (e)

 

$

191,798

 

 

$

1,162

 

 

$

7,895

 

 

$

4,992

 

 

$

2,195

 

 

 

 

 

 

 

Gross premiums written

 

$

270,867

 

 

$

—

 

 

$

36,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations include $1,212 earned from the reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo Group and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

 

For Six Months Ended
June 30, 2025

 

Insurance
Operations

 

 

Exzeo
Group

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

564,404

 

 

$

—

 

 

$

41,086

 

 

$

—

 

 

$

—

 

 

$

(2,479

)

 

$

603,011

 

Premiums ceded

 

 

(188,444

)

 

 

—

 

 

 

(16,192

)

 

 

—

 

 

 

—

 

 

 

2,479

 

 

 

(202,157

)

Net premiums earned

 

 

375,960

 

 

 

—

 

 

 

24,894

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400,854

 

Net income from investment portfolio

 

 

25,442

 

 

 

1,161

 

 

 

1,754

 

 

 

—

 

 

 

3,894

 

 

 

(1,459

)

 

 

30,792

 

Policy fee income

 

 

2,531

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

1,160

 

 

 

3,696

 

Other

 

 

6,348

 

 

 

108,498

 

 

 

(5

)

 

 

6,333

 

 

 

6,203

 

 

 

(124,366

)

 

 

3,011

 

Total revenue

 

 

410,281

 

 

 

109,659

 

 

 

26,643

 

 

 

6,333

 

 

 

10,102

 

 

 

(124,665

)

 

 

438,353

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

153,180

 

 

 

—

 

 

 

7,614

 

 

 

—

 

 

 

—

 

 

 

(37,046

)

 

 

123,748

 

Amortization of deferred policy
  acquisition costs

 

 

52,271

 

 

 

—

 

 

 

2,482

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

54,753

 

Other policy acquisition expenses

 

 

33,601

 

 

 

22,741

 

 

 

5,357

 

 

 

—

 

 

 

3,467

 

 

 

(62,081

)

 

 

3,085

 

Stock-based compensation expense

 

 

798

 

 

 

1,429

 

 

 

—

 

 

 

—

 

 

 

3,440

 

 

 

—

 

 

 

5,667

 

Interest expense

 

 

—

 

 

 

—

 

 

 

2,232

 

 

 

431

 

 

 

6,697

 

 

 

(2,232

)

 

 

7,128

 

Depreciation and amortization

 

 

1,222

 

 

 

1,439

 

 

 

—

 

 

 

1,150

 

 

 

385

 

 

 

(879

)

 

 

3,317

 

Personnel and other operating expenses

 

 

23,315

 

 

 

30,966

 

 

 

1,063

 

 

 

3,797

 

 

 

9,598

 

 

 

(22,815

)

 

 

45,924

 

Total expenses

 

 

264,387

 

 

 

56,575

 

 

 

18,748

 

 

 

5,378

 

 

 

23,587

 

 

 

(125,053

)

 

 

243,622

 

Income (loss) before income taxes (d)

 

$

145,894

 

 

$

53,084

 

 

$

7,895

 

 

$

955

 

 

$

(13,485

)

 

$

388

 

 

$

194,731

 

Total revenue from non-affiliates (e)

 

$

402,720

 

 

$

2,911

 

 

$

29,122

 

 

$

4,604

 

 

$

2,165

 

 

 

 

 

 

 

Gross premiums written

 

$

597,031

 

 

$

—

 

 

$

48,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations include $2,479 earned from the reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo Group and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

 

For Six Months Ended
June 30, 2024

 

Insurance
Operations

 

 

Exzeo
Group

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

505,441

 

 

$

—

 

 

$

16,429

 

 

$

—

 

 

$

—

 

 

$

(1,665

)

 

$

520,205

 

Premiums ceded

 

 

(137,997

)

 

 

—

 

 

 

(8,487

)

 

 

—

 

 

 

—

 

 

 

1,665

 

 

 

(144,819

)

Net premiums earned

 

 

367,444

 

 

 

—

 

 

 

7,942

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

375,386

 

Net income from investment portfolio

 

 

24,724

 

 

 

142

 

 

 

195

 

 

 

—

 

 

 

8,669

 

 

 

598

 

 

 

34,328

 

Policy fee income

 

 

1,075

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,033

 

 

 

2,108

 

Other

 

 

7,360

 

 

 

60,822

 

 

 

9

 

 

 

9,281

 

 

 

4,641

 

 

 

(81,076

)

 

 

1,037

 

Total revenue

 

 

400,603

 

 

 

60,964

 

 

 

8,146

 

 

 

9,281

 

 

 

13,310

 

 

 

(79,445

)

 

 

412,859

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

164,088

 

 

 

—

 

 

 

2,873

 

 

 

—

 

 

 

—

 

 

 

(8,715

)

 

 

158,246

 

Amortization of deferred policy
  acquisition costs

 

 

42,794

 

 

 

—

 

 

 

88

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

42,882

 

Other policy acquisition expenses

 

 

25,905

 

 

 

18,710

 

 

 

2,351

 

 

 

—

 

 

 

—

 

 

 

(44,257

)

 

 

2,709

 

Stock-based compensation expense

 

 

688

 

 

 

1,357

 

 

 

—

 

 

 

—

 

 

 

1,913

 

 

 

—

 

 

 

3,958

 

Interest expense

 

 

—

 

 

 

3,306

 

 

 

1,371

 

 

 

444

 

 

 

6,157

 

 

 

(4,677

)

 

 

6,601

 

Depreciation and amortization

 

 

1,224

 

 

 

1,271

 

 

 

—

 

 

 

798

 

 

 

322

 

 

 

(561

)

 

 

3,054

 

Personnel and other operating expenses

 

 

28,297

 

 

 

22,690

 

 

 

106

 

 

 

3,063

 

 

 

7,873

 

 

 

(20,076

)

 

 

41,953

 

Total expenses

 

 

262,996

 

 

 

47,334

 

 

 

6,789

 

 

 

4,305

 

 

 

16,265

 

 

 

(78,286

)

 

 

259,403

 

Income (loss) before income taxes (d)

 

$

137,607

 

 

$

13,630

 

 

$

1,357

 

 

$

4,976

 

 

$

(2,955

)

 

$

(1,159

)

 

$

153,456

 

Total revenue from non-affiliates (e)

 

$

392,601

 

 

$

1,175

 

 

$

9,811

 

 

$

7,598

 

 

$

4,979

 

 

 

 

 

 

 

Gross premiums written

 

$

506,366

 

 

$

—

 

 

$

55,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations include $1,665 earned from the reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo Group and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

 

The following table presents gross premium earned by geographic location:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Florida

 

$

272,473

 

 

$

234,264

 

 

$

543,278

 

 

$

461,513

 

Non-Florida

 

 

30,155

 

 

 

29,297

 

 

 

59,733

 

 

 

58,692

 

   Gross premiums earned

 

$

302,628

 

 

$

263,561

 

 

$

603,011

 

 

$

520,205

 

 

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Segments

 

 

 

 

 

 

Insurance Operations

 

$

2,058,706

 

 

$

1,905,878

 

Exzeo Group

 

 

159,534

 

 

 

89,441

 

Reciprocal Exchange Operations

 

 

129,418

 

 

 

105,556

 

Real Estate

 

 

109,015

 

 

 

96,795

 

Corporate and Other

 

 

180,610

 

 

 

175,282

 

Consolidation and Elimination

 

 

(284,177

)

 

 

(142,739

)

Total assets

 

$

2,353,106

 

 

$

2,230,213