v3.26.1
INSURANCE OPERATIONS
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
INSURANCE OPERATIONS INSURANCE OPERATIONS
Deferred Policy Acquisition Costs
The Company defers certain costs incurred in connection with written premiums, called Deferred Policy Acquisition Costs (“DPAC”). DPAC is amortized over the effective period of the related insurance policies.
The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
DPAC, beginning of period$126,159 $115,830 $128,564 $121,178 
Capitalized Costs74,690 70,321 135,697 124,428 
Amortization of DPAC(65,627)(60,930)(129,039)(120,385)
DPAC, end of period$135,222 $125,221 $135,222 $125,221 
Regulatory Requirements and Restrictions
UPCIC and APPCIC (the “Insurance Entities”) are subject to regulations and standards of the Florida Office of Insurance Regulation (“FLOIR”). The Insurance Entities are also subject to regulations and standards of regulatory authorities in other states
where they are licensed, although as Florida-domiciled insurers, their principal regulatory authority is the FLOIR. These standards and regulations include a requirement that the Insurance Entities maintain specified levels of statutory capital surplus and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned funds of the regulated insurance company subsidiary and are limited based on the subsidiary insurer’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by the Insurance Entities to their immediate parent company, Protection Solutions, Inc. (“PSI”), without prior regulatory approval is limited by the provisions of the Florida Insurance Code. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding 12 months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval.
No dividends were paid to PSI by the Insurance Entities during the six months ended June 30, 2026, or the year ended December 31, 2025. As of both dates, UPCIC did not meet the threshold for capacity to pay ordinary dividends; APPCIC met the regulatory threshold but did not declare or pay any dividend.
The Florida Insurance Code requires a residential property insurance company to maintain statutory capital and surplus as to policyholders of at least $15.0 million or ten percent of the insurer’s total liabilities, whichever is greater. The following table presents the unaudited amount of capital and surplus calculated in accordance with statutory accounting principles, which differs from GAAP, and an amount representing ten percent of total liabilities for each of the Insurance Entities as of the dates presented (in thousands):
June 30, 2026December 31, 2025
Statutory capital and surplus
  UPCIC $499,686 $475,952 
  APPCIC$34,332 $33,142 
Ten percent of total liabilities
  UPCIC$186,600 $170,473 
  APPCIC$3,092 $2,664 
As of the dates in the table above, the Insurance Entities each exceeded the minimum statutory capitalization requirement. The Insurance Entities also met the capitalization requirements of the other states in which they are licensed as of June 30, 2026.
The following table summarizes the unaudited combined net income (loss) for the Insurance Entities determined in accordance with statutory accounting practices for the periods presented (in thousands):
Three Months Ended June 30,Six Months Ended
June 30,
 2026202520262025
Combined net income (loss) $31,834 $55,186 $31,179 $46,944 
The Insurance Entities each are required annually to comply with the National Association of Insurance Commissioners’ (“NAIC”) risk-based capital (“RBC”) requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are used by regulators to determine appropriate regulatory actions relating to insurers who show signs of a weak or deteriorating condition. Based on their annual reports, each Insurance Entity reported total adjusted capital in excess of the NAIC and state-based RBC requirements as of December 31, 2025.
The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands):
June 30, 2026December 31, 2025
Restricted cash and cash equivalents
     Florida
$1,800 $1,800 
     Georgia
35 35 
     North Carolina
800 800 
Virginia
— 335 
Total
$2,635 $2,970 
Investments
     Hawaii
$— $2,958 
     Massachusetts
130 130 
     South Carolina
137 139 
     Virginia
332 339 
Total
$599 $3,566