Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions BICI is party to the AmFam Quota Share Agreement, which has been effective since 2020. Under the quota share agreement, BICI assumes 100% of all Casualty, Professional Liability, Healthcare Liability, and Baleen Specialty risks, net of inuring third-party reinsurance, written on behalf of AmFam by BSUI. AmFam receives a Ceding Fee on net premiums assumed by BICI. BICI is required to set aside assets in a trust to secure a portion of its reinsurance recoverable obligation under the agreement. Under the MGA Agreements, BSUI is permitted to issue insurance policies on behalf of the AmFam Issuing Carriers and is also responsible for providing accounting, claims handling and other necessary services to the AmFam Issuing Carriers to support its respective regulatory, statutory and other compliance requirements. BSUI is entitled to commission in exchange for these services, which is adjusted to equal actual costs for each month in accordance with the terms of the MGA Agreements. In 2026 and 2025, BICI entered into a ceded quota share reinsurance treaty and a ceded excess of loss reinsurance treaty with reinsurers, in which a separate subsidiary of AmFam participated. In addition, BICI also entered into a ceded cyber liability quota share reinsurance treaty with reinsurers, in which a subsidiary of AmFam also participated. For the three months ended June 30, 2026 and 2025, Bowhead incurred $4.8 million and $3.0 million of Ceding Fees under the AmFam Quota Share Agreement, respectively, and ceded $11.5 million and $9.5 million of written premiums to AmFam under the ceded reinsurance treaties described above, respectively. For the six months ended June 30, 2026 and 2025, Bowhead incurred $8.9 million and $5.4 million of Ceding Fees under the AmFam Quota Share Agreement, respectively, and ceded $19.9 million and $16.3 million of written premiums to AmFam under these ceded reinsurance treaties described above, respectively. On August 6, 2025, Bowhead entered into a usage-based service agreement with Bold Penguin, an insuretech company owned by AmFam, that streamlines small business insurance submissions. Expenses associated with the service contract are recognized as operating expenses within the Company’s Condensed Consolidated Statements of Income and Comprehensive Income. Future contractual commitments are reflected within fixed and determinable purchase obligations within Note 14. For the three months ended June 30, 2026 and 2025, Bowhead incurred $0.3 million and nil of operating expenses, respectively, under the agreement with Bold Penguin. For the six months ended June 30, 2026 and 2025, Bowhead incurred $0.6 million and nil of operating expenses, respectively, under the agreement with Bold Penguin. For the three and six months ended June 30, 2026, BSUI bound $21.0 thousand and $59.8 thousand of written premiums through American Family Brokerage Inc., a subsidiary of AmFam, respectively, compared to nil for the same periods in 2025. BICI assumed 100% of the premiums, net of inuring third-party reinsurance, through the AmFam Quota Share Agreement.
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