v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Information [Abstract]  
Segment Information
18. Segment Information

 

We have five reportable operating segments, which consist of Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other (which primarily consists of commercial, assumed reinsurance, and our excess liability business). We operate only in the U.S., and no single customer or agent provides 10 percent or more of our revenues. The following tables provide available information of these segments for the three- and six-month periods ended June 30, 2026 and 2025.

 

Our chief operating decision maker is our President and Chief Executive Officer (“CEO”). The primary profitability measurement used by the CEO to review segment operating results is underwriting gain (loss). The CEO uses segment underwriting gain (loss) to allocate resources (including employee, financial, and capital resources) for each segment predominantly in the annual planning process. Segment underwriting gain (loss) is used to monitor segment results compared to prior period, forecasted results, and the annual plan.

 

We do not assign or allocate all line items in our Consolidated Statement of Operations or Consolidated Balance Sheets to our operating segments. Those line items include fee and other income, net investment income, net investment gains (losses), and income tax expense (benefit) within the Consolidated Statement of Operations. For the Consolidated Balance Sheets, those items include cash and investments, reinsurance premiums receivable or payable, income taxes recoverable or payable, accrued investment income, property and equipment, deferred income taxes, other assets, accrued expenses and other liabilities, and shareholders’ equity.

 

    Three Months Ended June 30, 2026  
    Private
Passenger Auto		     Non-Standard
Auto		     Home and
Farm		     Crop     All Other     Total  
Direct premiums earned   $ 22,652     $ 943     $ 29,319     $ 13,908     $ 4,282     $ 71,104  
Assumed premiums earned     —       —       —       556       2,063       2,619  
Ceded premiums earned     (558 )     (1 )     (3,201 )     (3,957 )     (989 )     (8,706 )
Net premiums earned     22,094       942       26,118       10,507       5,356       65,017  
                                                 
Direct losses and loss adjustment expenses     12,761       (1,524 )     29,129       8,324       1,146       49,836  
Assumed losses and loss adjustment expenses     —       —       —       1,762       626       2,388  
Ceded losses and loss adjustment expenses     (71 )     —       (796 )     (2,414 )     (526 )     (3,807 )
Net losses and loss adjustment expenses     12,690       (1,524 )     28,333       7,672       1,246       48,417  
                                                 
Gross margin     9,404       2,466       (2,215 )     2,835       4,110       16,600  
                                                 
Amortization of deferred policy acquisition costs     4,545       162       5,448       900       1,181       12,236  
Other underwriting and general expenses (1)     3,037       757       3,949       1,079       529       9,351  
Underwriting and general expenses     7,582       919       9,397       1,979       1,710       21,587  
Underwriting gain (loss)     1,822       1,547       (11,612 )     856       2,400       (4,987 )
                                                 
Net investment income                                             2,810  
Net investment gains (losses)                                             2,063  
Fee and other income                                             344  
Income (loss) before income taxes                                             230  
Income tax expense (benefit)                                             84  
Net income (loss)                                           $ 146  
                                                 
Operating Ratios:                                                
Loss and loss adjustment expense ratio     57.4%       (161.8% )     108.5%       73.0%       23.3%       74.5%  
Expense ratio     34.3%       97.6%       36.0%       18.8%       31.9%       33.2%  
Combined ratio     91.7%       (64.2% )     144.5%       91.8%       55.2%       107.7%  
                                                 
                                                 
Balances at June 30, 2026:                                                
Premiums and agents’ balances receivable   $ 26,595     $ 15     $ 12,479     $ 34,763     $ 3,937     $ 77,789  
Deferred policy acquisition costs     7,099       16       11,276       1,815       1,689       21,895  
Reinsurance recoverables on losses     670       —       2,536       2,423       6,812       12,441  
Receivable from Federal Crop Insurance Corporation     —       —       —       16,380       —       16,380  
Unpaid losses and loss adjustment expenses     30,808       45,688       35,826       11,155       11,280       134,757  
Unearned premiums     38,478       392       61,393       22,963       9,198       132,424  

 

(1) Other underwriting and general expenses for each segment include expenses related to compensation, vendor services, and other administrative items.

 

    Three Months Ended June 30, 2025  
    Private
Passenger Auto		     Non-Standard
Auto		     Home and
Farm		     Crop     All Other     Total  
Direct premiums earned   $ 24,168     $ 14,526     $ 27,382     $ 12,658     $ 3,808     $ 82,542  
Assumed premiums earned     —       —       —       537       159       696  
Ceded premiums earned     (1,245 )     (21 )     (6,071 )     (2,484 )     (412 )     (10,233 )
Net premiums earned     22,923       14,505       21,311       10,711       3,555       73,005  
                                                 
Direct losses and loss adjustment expenses     14,617       16,860       65,924       10,464       1,517       109,382  
Assumed losses and loss adjustment expenses     —       —       —       399       (115 )     284  
Ceded losses and loss adjustment expenses     (917 )     —       (38,913 )     (2,395 )     (834 )     (43,059 )
Net losses and loss adjustment expenses     13,700       16,860       27,011       8,468       568       66,607  
                                                 
Gross margin     9,223       (2,355 )     (5,700 )     2,243       2,987       6,398  
                                                 
Amortization of deferred policy acquisition costs     4,899       4,263       5,363       1,076       773       16,374  
Other underwriting and general expenses (1)     2,492       2,180       3,099       541       88       8,400  
Underwriting and general expenses     7,391       6,443       8,462       1,617       861       24,774  
Underwriting gain (loss)     1,832       (8,798 )     (14,162 )     626       2,126       (18,376 )
                                                 
Net investment income                                             3,146  
Net investment gains (losses)                                             (410 )
Fee and other income                                             316  
Income (loss) before income taxes                                             (15,324 )
Income tax expense (benefit)                                             (3,273 )
Net income (loss)                                           $ (12,051 )
                                                 
Operating Ratios:                                                
Loss and loss adjustment expense ratio     59.8%       116.2%       126.7%       79.1%       16.0%       91.2%  
Expense ratio     32.2%       44.4%       39.7%       15.1%       24.2%       33.9%  
Combined ratio     92.0%       160.6%       166.4%       94.2%       40.2%       125.1%  
                                                 
                                                 
Balances at June 30, 2025:                                                
Premiums and agents’ balances receivable   $ 28,498     $ 6,534     $ 12,204     $ 35,006     $ 3,362     $ 85,604  
Deferred policy acquisition costs     7,187       5,109       10,518       2,049       1,457       26,320  
Reinsurance recoverables on losses     3,148       —       40,346       2,356       5,428       51,278  
Receivable from Federal Crop Insurance Corporation     —       —       —       11,332       —       11,332  
Unpaid losses and loss adjustment expenses     32,194       77,151       72,399       10,494       11,292       203,530  
Unearned premiums     40,510       17,341       55,544       21,177       8,317       142,889  

 

(1) Other underwriting and general expenses for each segment include expenses related to compensation, vendor services, and other administrative items.

 

    Six Months Ended June 30, 2026  
    Private
Passenger Auto		     Non-Standard
Auto		     Home and
Farm		     Crop     All Other     Total  
Direct premiums earned   $ 45,500     $ 3,551     $ 58,104     $ 13,890     $ 8,450     $ 129,495  
Assumed premiums earned     —       —       —       556       4,046       4,602  
Ceded premiums earned     (1,110 )     (5 )     (6,292 )     (4,609 )     (1,951 )     (13,967 )
Net premiums earned     44,390       3,546       51,812       9,837       10,545       120,130  
                                                 
Direct losses and loss adjustment expenses     23,058       1,058       39,845       8,001       1,943       73,905  
Assumed losses and loss adjustment expenses     —       —       —       1,762       747       2,509  
Ceded losses and loss adjustment expenses     (76 )     —       (1,151 )     (2,784 )     (630 )     (4,641 )
Net losses and loss adjustment expenses     22,982       1,058       38,694       6,979       2,060       71,773  
                                                 
Gross margin     21,408       2,488       13,118       2,858       8,485       48,357  
                                                 
Amortization of deferred policy acquisition costs     9,082       1,063       11,030       970       1,977       24,122  
Other underwriting and general expenses (1)     6,195       1,501       7,865       1,026       1,414       18,001  
Underwriting and general expenses     15,277       2,564       18,895       1,996       3,391       42,123  
Underwriting gain (loss)     6,131       (76 )     (5,777 )     862       5,094       6,234  
                                                 
Net investment income                                             5,465  
Net investment gains (losses)                                             3,767  
Fee and other income                                             474  
Income (loss) before income taxes                                             15,940  
Income tax expense (benefit)                                             3,286  
Net income (loss)                                           $ 12,654  
                                                 
Operating Ratios:                                                
Loss and loss adjustment expense ratio     51.8%       29.8%       74.7%       70.9%       19.5%       59.7%  
Expense ratio     34.4%       72.3%       36.5%       20.3%       32.2%       35.1%  
Combined ratio     86.2%       102.1%       111.2%       91.2%       51.7%       94.8%  

 

(1) Other underwriting and general expenses for each segment include expenses related to compensation, vendor services, and other administrative items.

 

    Six Months Ended June 30, 2025  
    Private
Passenger Auto		     Non-Standard
Auto		     Home and
Farm		     Crop     All Other     Total  
Direct premiums earned   $ 47,996     $ 32,804     $ 53,892     $ 12,643     $ 7,369     $ 154,704  
Assumed premiums earned     —       —       —       537       198       735  
Ceded premiums earned     (2,415 )     (46 )     (8,861 )     (2,845 )     (770 )     (14,937 )
Net premiums earned     45,581       32,758       45,031       10,335       6,797       140,502  
                                                 
Direct losses and loss adjustment expenses     28,115       31,397       75,857       10,592       3,800       149,761  
Assumed losses and loss adjustment expenses     —       —       —       399       (348 )     51  
Ceded losses and loss adjustment expenses     (920 )     —       (39,058 )     (3,024 )     (1,678 )     (44,680 )
Net losses and loss adjustment expenses     27,195       31,397       36,799       7,967       1,774       105,132  
                                                 
Gross margin     18,386       1,361       8,232       2,368       5,023       35,370  
                                                 
Amortization of deferred policy acquisition costs     9,385       10,587       10,400       1,100       1,430       32,902  
Other underwriting and general expenses (1)     5,384       4,137       5,895       541       1,075       17,032  
Underwriting and general expenses     14,769       14,724       16,295       1,641       2,505       49,934  
Underwriting gain (loss)     3,617       (13,363 )     (8,063 )     727       2,518       (14,564 )
                                                 
Net investment income                                             5,984  
Net investment gains (losses)                                             459  
Fee and other income                                             546  
Income (loss) before income taxes                                             (7,575 )
Income tax expense (benefit)                                             (1,984 )
Net income (loss)                                           $ (5,591 )
                                                 
Operating Ratios:                                                
Loss and loss adjustment expense ratio     59.7%       95.8%       81.7%       77.1%       26.1%       74.8%  
Expense ratio     32.4%       44.9%       36.2%       15.9%       36.9%       35.5%  
Combined ratio     92.1%       140.7%       117.9%       93.0%       63.0%       110.3%  

 

(1) Other underwriting and general expenses for each segment include expenses related to compensation, vendor services, and other administrative items.