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

14. 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. All commercial lines business is in runoff.

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. For the three months ended March 31, 2026 and 2025, gross written premiums attributable to Texas were 93.6% and 81.9%, 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 and (iii) all investment income activity. All investment income activity is reported within net investment income, net realized investment gains (losses), 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):

 

Three months ended
March 31, 2026

 

Personal
Lines

 

 

Commercial Lines

 

 

Corporate

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

11,487

 

 

$

(18

)

 

$

—

 

 

$

11,469

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

6,091

 

 

$

(16

)

 

$

—

 

 

$

6,075

 

 

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

5,792

 

 

$

133

 

 

$

—

 

 

$

5,925

 

Segment revenue

 

 

5,792

 

 

 

133

 

 

 

—

 

 

 

5,925

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

3,600

 

 

 

(271

)

 

 

—

 

 

 

3,329

 

Policy acquisition costs

 

 

1,558

 

 

 

—

 

 

 

—

 

 

 

1,558

 

Operating expenses

 

 

512

 

 

 

865

 

 

 

723

 

 

 

2,100

 

Segment expenses

 

 

5,670

 

 

 

594

 

 

 

723

 

 

 

6,987

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment gain (loss)

 

$

122

 

 

$

(461

)

 

$

(723

)

 

$

(1,062

)

Net investment income

 

 

 

 

 

 

 

 

1,110

 

 

 

1,110

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(14

)

 

 

(14

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

30

 

 

 

30

 

Change in fair value of contingent considerations

 

 

 

 

 

 

 

 

4,490

 

 

 

4,490

 

Other income

 

 

 

 

 

 

 

 

6

 

 

 

6

 

Interest expense

 

 

 

 

 

 

 

 

1,976

 

 

 

1,976

 

Income (loss) before income taxes

 

$

122

 

 

$

(461

)

 

$

2,923

 

 

$

2,584

 

 

Three months ended
March 31, 2025

 

Personal
Lines

 

 

Commercial
Lines

 

 

Corporate

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

14,126

 

 

$

2,047

 

 

$

—

 

 

$

16,173

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

12,444

 

 

$

(1,604

)

 

$

—

 

 

$

10,840

 

 

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

8,984

 

 

$

1,331

 

 

$

—

 

 

$

10,315

 

Other income

 

 

23

 

 

 

—

 

 

 

42

 

 

 

65

 

Segment revenue

 

 

9,007

 

 

 

1,331

 

 

 

42

 

 

 

10,380

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

7,769

 

 

 

1,505

 

 

 

—

 

 

 

9,274

 

Policy acquisition costs

 

 

2,724

 

 

 

(47

)

 

 

—

 

 

 

2,677

 

Operating expenses

 

 

2,192

 

 

 

384

 

 

 

285

 

 

 

2,861

 

Segment expenses

 

 

12,685

 

 

 

1,842

 

 

 

285

 

 

 

14,812

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment gain (loss)

 

$

(3,678

)

 

$

(511

)

 

$

(243

)

 

$

(4,432

)

Net investment income

 

 

 

 

 

 

 

 

1,289

 

 

 

1,289

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Change in fair value of equity securities

 

 

 

 

 

 

 

 

(192

)

 

 

(192

)

Change in fair value of contingent considerations

 

 

 

 

 

 

 

 

4,395

 

 

 

4,395

 

Interest expense

 

 

 

 

 

 

 

 

541

 

 

 

541

 

Income (loss) before income taxes

 

$

(3,678

)

 

$

(511

)

 

$

4,711

 

 

$

522