v3.26.1
Note 14 - Business Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combination [Abstract]  
Summary of Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed at the date of acquisition:

 

 

 

Amount

 

 

 

($ in thousands)

 

Cash and cash equivalents

 

$

67,683

 

Investments

 

 

113,149

 

Receivables (premiums and investment income)

 

 

14,520

 

Reinsurance recoverable

 

 

5,652

 

Intangible assets

 

 

66,500

 

Value of business acquired (VOBA)

 

 

26,532

 

Other assets

 

 

1,350

 

Total assets

 

 

295,386

 

 

 

 

Accounts payable and other accrued liabilities

 

 

11,088

 

Reserve for losses and loss adjustment expenses

 

 

22,178

 

Unearned premiums

 

 

33,730

 

Income taxes payable

 

 

829

 

Deferred tax liability

 

 

18,655

 

Net assets acquired

 

 

208,906

 

Goodwill

 

$

105,097

 
Summary of Intangible Assets were Comprised

Intangible assets were comprised of the following:

 

 

 

Amount

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

Useful Life

 

Amortization

 

Valuation Approach

Customer relationships

 

$

60,800

 

 

8 years

 

Straight-line

 

Multi-period excess earnings method

Non-compete agreements

 

$

700

 

 

5 years

 

Straight-line

 

With-and-without method

State licenses

 

 

5,000

 

 

Indefinite

 

Not amortized

 

Multi-period excess earnings method

Total intangible assets

 

$

66,500

 

 

 

 

 

 

 
Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined results of operations of the Company and Gray Surety as if the acquisition had occurred on January 1, 2025. The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results that would have occurred had the acquisition been completed on January 1, 2025, nor does it purport to project the future results of operations of the combined company. Significant pro forma adjustments include amortization of VOBA, acquisition-related financing costs, transactions costs, and related income tax

effects. The pro forma results reflect the revised provisional purchase-price allocation and related amortization as of June 30, 2026.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(Unaudited, $ in thousands)

 

 

(Unaudited, $ in thousands)

 

Pro forma revenue

 

$

314,423

 

 

$

224,973

 

 

$

600,244

 

 

$

417,189

 

Pro forma net income

 

 

52,592

 

 

 

43,689

 

 

 

99,344

 

 

 

79,815