v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

19. Segment Information

The Company is engaged in the sale of property and casualty insurance products and has organized its business model around two classes of insurance businesses: commercial lines and personal lines business. Within these two businesses, the Company offers various insurance products to niche commercial businesses in the commercial lines reportable segment and homeowners in the personal lines reportable segment. As of December 31, 2025, all commercial lines business is in run off..

The Company defines its operating segments as components of the business where separate financial information is available and used by the chief operating decision maker in deciding how to allocate resources to its segments and in assessing its performance. In assessing performance of its operating segments, the Company’s chief operating decision maker, the Chief Executive Officer, reviews a number of financial measures including gross written premiums, net earned premiums, losses and LAE, net of reinsurance recoveries, and other revenue and expenses. The primary measure used for making decisions about resources to be allocated to an operating segment and assessing its performance is segment underwriting gain or loss which is defined as segment revenues, consisting of net earned premiums and other income, less segment expenses, consisting of losses and LAE, policy acquisition costs and operating expenses of the operating segments. Operating expenses primarily include compensation and related benefits for personnel, policy issuance and claims systems, rent and utilities. All of the Company’s insurance activities are conducted in the U.S. with a concentration of activity in Texas. In mid-2024, the Company exited the Oklahoma homeowners business. For the years ended December 31, 2025 and 2024, gross written premiums attributable to Texas were 79.5% and 50.6%, respectively, of the Company’s total gross written premiums.

In addition to the reportable segments, the Company maintains a Corporate category to reconcile segment results to the consolidated totals. The Corporate 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, 2025

Commercial
Lines

 

 

Personal
Lines

 

 

Corporate

 

 

Total

 

Gross written premiums

$

8,712

 

 

$

51,128

 

 

$

—

 

 

$

59,840

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

$

(1,629

)

 

$

22,977

 

 

$

—

 

 

$

21,348

 

 

 

 

 

 

 

 

 

 

 

 

Net earned premiums

$

2,553

 

 

$

29,834

 

 

$

—

 

 

$

32,387

 

Other income

 

—

 

 

 

—

 

 

 

142

 

 

 

142

 

Segment revenue

 

2,553

 

 

 

29,834

 

 

 

142

 

 

 

32,529

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses, net

 

15,952

 

 

 

22,589

 

 

 

—

 

 

 

38,541

 

Policy acquisition costs

 

(79

)

 

 

8,484

 

 

 

—

 

 

 

8,405

 

Operating expenses

 

1,395

 

 

 

6,344

 

 

 

3,731

 

 

 

11,470

 

Segment expenses

 

17,268

 

 

 

37,417

 

 

 

3,731

 

 

 

58,416

 

 

 

 

 

 

 

 

 

 

 

 

Segment underwriting gain (loss)

 

(14,715

)

 

 

(7,583

)

 

 

(3,589

)

 

 

(25,887

)

Net investment income

 

 

 

 

 

 

 

5,037

 

 

 

5,037

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

(716

)

 

 

(716

)

Change in fair value of equity securities

 

 

 

 

 

 

 

234

 

 

 

234

 

Change in fair value of contingent considerations

 

 

 

 

 

 

 

6,220

 

 

 

6,220

 

Interest expense

 

 

 

 

 

 

 

3,185

 

 

 

3,185

 

Income (loss) before income taxes

$

(14,715

)

 

$

(7,583

)

 

$

4,001

 

 

$

(18,297

)

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Deferred policy acquisition costs

$

—

 

 

$

2,696

 

 

 

 

 

$

2,696

 

Unearned premiums

 

2,472

 

 

 

23,231

 

 

 

 

 

 

25,703

 

Reinsurance recoverables on unpaid losses

 

60,620

 

 

 

3,289

 

 

 

 

 

 

63,909

 

Unpaid losses and loss adjustment expenses

 

135,551

 

 

 

10,711

 

 

 

 

 

 

146,262

 

 

 

Year Ended December 31, 2024

 

Commercial
Lines

 

 

Personal
Lines

 

 

Corporate

 

 

Total

 

Gross written premiums

 

$

26,686

 

 

$

45,367

 

 

$

—

 

 

$

72,053

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

14,541

 

 

$

34,797

 

 

$

—

 

 

$

49,338

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

28,160

 

 

$

32,702

 

 

$

—

 

 

$

60,862

 

Other income

 

 

69

 

 

 

48

 

 

 

211

 

 

 

328

 

Segment revenue

 

 

28,229

 

 

 

32,750

 

 

 

211

 

 

 

61,190

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss and loss adjustment expenses, net

 

 

52,155

 

 

 

21,147

 

 

 

—

 

 

 

73,302

 

Policy acquisition costs

 

 

4,323

 

 

 

9,012

 

 

 

—

 

 

 

13,335

 

Operating expenses

 

 

4,080

 

 

 

4,444

 

 

 

3,307

 

 

 

11,831

 

Segment expenses

 

 

60,558

 

 

 

34,603

 

 

 

3,307

 

 

 

98,468

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment underwriting gain (loss)

 

 

(32,329

)

 

 

(1,853

)

 

 

(3,096

)

 

 

(37,278

)

Net investment income

 

 

 

 

 

 

 

 

5,763

 

 

 

5,763

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(125

)

 

 

(125

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

(203

)

 

 

(203

)

Other gains (losses)

 

 

 

 

 

 

 

 

500

 

 

 

500

 

Change in fair value of contingent considerations

 

 

 

 

 

 

 

 

146

 

 

 

146

 

Interest expense

 

 

 

 

 

 

 

 

4,883

 

 

 

4,883

 

Income (loss) before income taxes

 

$

(32,329

)

 

$

(1,853

)

 

$

(1,898

)

 

$

(36,080

)

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred policy acquisition costs

 

$

934

 

 

$

5,446

 

 

 

 

 

$

6,380

 

Unearned premiums

 

 

7,644

 

 

 

22,946

 

 

 

 

 

 

30,590

 

Reinsurance recoverables on unpaid losses

 

 

82,029

 

 

 

2,461

 

 

 

 

 

 

84,490

 

Unpaid losses and loss adjustment expenses

 

 

182,154

 

 

 

7,131

 

 

 

 

 

 

189,285