v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

Note 13 -- Segment Information

The Company has five reportable segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, the Company’s property and casualty insurance and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo segment represents Exzeo’s operations related to insurance technology and operations solutions for property and casualty insurance carriers. The Reciprocal Exchange Operations segment represents the insurance operations of consolidated reciprocal insurance exchanges that are owned by their policyholders. The Real Estate segment represents the operations of the Company’s commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for internal use. The Corporate and Other segment represents the activities of the holding companies and any other operations that do not meet the quantitative and qualitative thresholds for a reportable segment.

The Company’s segments are based on the manner in which the Company’s Chief Executive Officer, who is the chief operating decision maker (the “CODM”), evaluates performance and makes decisions regarding the allocation of resources. The CODM evaluates performance and allocates resources using various measures primarily through reviews of various operational performance packages, investor presentations, and the Company’s SEC filings, as well as through the approval of the Company’s annual budget and forecast. The Company’s reported segment profit measure is income (loss) before income taxes as this measure is most consistent with the amounts included in the consolidated statements of income. Intersegment transactions are not eliminated from segment results while intrasegment transactions are eliminated from segment results. The accounting policies of the Company’s reportable segments are the same as those of the Company, except as otherwise noted. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations.

 

The following tables present segment information reconciled to the Company’s consolidated statements of income for the periods presented:

 

For Three Months Ended
March 31, 2026

 

Insurance
Operations

 

 

Exzeo

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/ Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

291,151

 

 

$

—

 

 

$

36,457

 

 

$

—

 

 

$

—

 

 

$

(1,402

)

 

$

326,206

 

Premiums ceded

 

 

(96,520

)

 

 

—

 

 

 

(8,937

)

 

 

—

 

 

 

—

 

 

 

1,402

 

 

 

(104,055

)

Net premiums earned

 

 

194,631

 

 

 

—

 

 

 

27,520

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

222,151

 

Net income from investment portfolio

 

 

11,935

 

 

 

2,512

 

 

 

1,267

 

 

 

—

 

 

 

1,078

 

 

 

(655

)

 

 

16,137

 

Policy fee income

 

 

1,465

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

395

 

 

 

(284

)

 

 

1,576

 

Other

 

 

3,839

 

 

 

55,533

 

 

 

(268

)

 

 

4,196

 

 

 

5,184

 

 

 

(65,466

)

 

 

3,018

 

Total revenue

 

 

211,870

 

 

 

58,045

 

 

 

28,519

 

 

 

4,196

 

 

 

6,657

 

 

 

(66,405

)

 

 

242,882

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

73,562

 

 

 

—

 

 

 

8,928

 

 

 

—

 

 

 

—

 

 

 

(16,890

)

 

 

65,600

 

Amortization of deferred policy
  acquisition costs

 

 

27,839

 

 

 

—

 

 

 

2,050

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29,889

 

Other policy acquisition expenses

 

 

18,924

 

 

 

12,173

 

 

 

4,644

 

 

 

—

 

 

 

2,846

 

 

 

(36,706

)

 

 

1,881

 

Stock-based compensation expense

 

 

680

 

 

 

739

 

 

 

—

 

 

 

—

 

 

 

1,940

 

 

 

—

 

 

 

3,359

 

Interest expense

 

 

—

 

 

 

—

 

 

 

1,110

 

 

 

456

 

 

 

467

 

 

 

(1,110

)

 

 

923

 

Depreciation and amortization

 

 

421

 

 

 

730

 

 

 

—

 

 

 

857

 

 

 

163

 

 

 

(722

)

 

 

1,449

 

Personnel and other operating expenses

 

 

10,805

 

 

 

16,816

 

 

 

312

 

 

 

2,515

 

 

 

4,940

 

 

 

(10,991

)

 

 

24,397

 

Total expenses

 

 

132,231

 

 

 

30,458

 

 

 

17,044

 

 

 

3,828

 

 

 

10,356

 

 

 

(66,419

)

 

 

127,498

 

Income (loss) before income taxes (d)

 

$

79,639

 

 

$

27,587

 

 

$

11,475

 

 

$

368

 

 

$

(3,699

)

 

$

14

 

 

$

115,384

 

Total revenue from non-affiliates (e)

 

$

207,420

 

 

$

4,724

 

 

$

29,921

 

 

$

3,331

 

 

$

532

 

 

 

 

 

 

 

Gross premiums written

 

$

253,364

 

 

$

—

 

 

$

27,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $1,402 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 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
March 31, 2025

 

Insurance
Operations

 

 

Exzeo

 

 

Reciprocal
Exchange
Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

282,135

 

 

$

—

 

 

$

19,447

 

 

$

—

 

 

$

—

 

 

$

(1,199

)

 

$

300,383

 

Premiums ceded

 

 

(93,427

)

 

 

—

 

 

 

(7,407

)

 

 

—

 

 

 

—

 

 

 

1,199

 

 

 

(99,635

)

Net premiums earned

 

 

188,708

 

 

 

—

 

 

 

12,040

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

200,748

 

Net income from investment portfolio

 

 

10,859

 

 

 

398

 

 

 

780

 

 

 

—

 

 

 

1,765

 

 

 

(790

)

 

 

13,012

 

Policy fee income

 

 

2,229

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,229

 

Other

 

 

2,746

 

 

 

52,407

 

 

 

(9

)

 

 

2,840

 

 

 

3,655

 

 

 

(61,195

)

 

 

444

 

Total revenue

 

 

204,542

 

 

 

52,805

 

 

 

12,811

 

 

 

2,840

 

 

 

5,420

 

 

 

(61,985

)

 

 

216,433

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

70,815

 

 

 

—

 

 

 

2,772

 

 

 

—

 

 

 

—

 

 

 

(14,296

)

 

 

59,291

 

Amortization of deferred policy
   acquisition costs

 

 

25,244

 

 

 

—

 

 

 

1,067

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,311

 

Other policy acquisition expenses

 

 

18,333

 

 

 

12,667

 

 

 

2,521

 

 

 

—

 

 

 

2,128

 

 

 

(34,673

)

 

 

976

 

Stock-based compensation expense

 

 

473

 

 

 

723

 

 

 

—

 

 

 

—

 

 

 

1,776

 

 

 

—

 

 

 

2,972

 

Interest expense

 

 

—

 

 

 

—

 

 

 

1,108

 

 

 

216

 

 

 

3,168

 

 

 

(1,108

)

 

 

3,384

 

Depreciation and amortization

 

 

611

 

 

 

708

 

 

 

—

 

 

 

510

 

 

 

191

 

 

 

(374

)

 

 

1,646

 

Personnel and other operating expenses

 

 

11,244

 

 

 

14,512

 

 

 

255

 

 

 

1,733

 

 

 

4,155

 

 

 

(10,385

)

 

 

21,514

 

Total expenses

 

 

126,720

 

 

 

28,610

 

 

 

7,723

 

 

 

2,459

 

 

 

11,418

 

 

 

(60,836

)

 

 

116,094

 

Income (loss) before income taxes (d)

 

$

77,822

 

 

$

24,195

 

 

$

5,088

 

 

$

381

 

 

$

(5,998

)

 

$

(1,149

)

 

$

100,339

 

Total revenue from non-affiliates (e)

 

$

201,050

 

 

$

398

 

 

$

14,010

 

 

$

1,975

 

 

$

838

 

 

 

 

 

 

 

Gross premiums written

 

$

259,529

 

 

$

—

 

 

$

29,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $1,199 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 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

 

 

 

March 31,

 

 

 

2026

 

 

2025

 

Florida

 

$

297,099

 

 

$

270,805

 

Non-Florida

 

 

29,107

 

 

 

29,578

 

   Gross premiums earned

 

$

326,206

 

 

$

300,383

 

 

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

 

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Segments

 

 

 

 

 

 

Insurance Operations

 

$

1,890,443

 

 

$

1,895,081

 

Exzeo

 

 

379,768

 

 

 

347,734

 

Reciprocal Exchange Operations

 

 

198,263

 

 

 

184,453

 

Real Estate

 

 

137,223

 

 

 

130,971

 

Corporate and Other

 

 

145,671

 

 

 

120,686

 

Consolidation and Elimination

 

 

(140,287

)

 

 

(149,997

)

Total assets

 

$

2,611,081

 

 

$

2,528,928

 

As of March 31, 2026 and December 31, 2025, substantially all of the Company’s assets were located in Florida.