v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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 has historically offered various insurance products to niche commercial businesses in the commercial lines reportable segment and to homeowners in the personal lines reportable segment. All commercial lines of business are in runoff, and the Company is currently offering only personal lines insurance products.

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 several 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, 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 six months ended June 30, 2026 and 2025, gross written premiums attributable to Texas were 94.0% and 81.0%, 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
June 30, 2026

 

Personal
Lines

 

 

Commercial Lines

 

 

Total

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

13,073

 

 

$

(3

)

 

$

13,070

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

16,632

 

 

$

20

 

 

$

16,652

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

6,703

 

 

$

105

 

 

$

6,808

 

Segment revenue

 

 

6,703

 

 

 

105

 

 

 

6,808

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

4,033

 

 

 

(2,361

)

 

 

 

Policy acquisition costs

 

 

1,913

 

 

 

13

 

 

 

 

Operating expenses

 

 

445

 

 

 

689

 

 

 

 

Segment underwriting gain (loss)

 

 

312

 

 

 

1,764

 

 

 

2,076

 

 

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

Other corporate expenses

 

 

 

 

 

 

 

$

1,197

 

Net investment income

 

 

 

 

 

 

 

 

1,040

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(87

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

81

 

Change in fair value of contingent considerations

 

 

 

 

 

 

 

 

1,220

 

Other income

 

 

 

 

 

 

 

 

80

 

Interest expense

 

 

 

 

 

 

 

 

677

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

2,536

 

 

Three months ended
June 30, 2025

 

Personal
Lines

 

 

Commercial
Lines

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

17,889

 

 

$

3,190

 

 

$

21,079

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

1,816

 

 

$

(433

)

 

$

1,383

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

9,096

 

 

$

468

 

 

$

9,564

 

Segment revenue

 

 

9,096

 

 

 

468

 

 

 

9,564

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

5,552

 

 

 

1,012

 

 

 

 

Policy acquisition costs

 

 

2,596

 

 

 

(309

)

 

 

 

Operating expenses

 

 

2,211

 

 

 

500

 

 

 

 

Segment underwriting gain (loss)

 

 

(1,263

)

 

 

(735

)

 

 

(1,998

)

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

Other corporate expenses

 

 

 

 

 

 

 

$

1,657

 

Net investment income

 

 

 

 

 

 

 

 

1,298

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(28

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

(65

)

Change in fair value of contingent considerations

 

 

 

 

 

 

 

 

5,355

 

Other income

 

 

 

 

 

 

 

 

10

 

Interest expense

 

 

 

 

 

 

 

 

864

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

2,051

 

 

Six months ended
June 30, 2026

 

Personal
Lines

 

 

Commercial
Lines

 

 

Total

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

24,560

 

 

$

(21

)

 

$

24,539

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

22,723

 

 

$

4

 

 

$

22,727

 

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

12,495

 

 

$

238

 

 

$

12,733

 

Segment revenue

 

 

12,495

 

 

 

238

 

 

 

12,733

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

7,633

 

 

 

(2,632

)

 

 

 

Policy acquisition costs

 

 

3,471

 

 

 

13

 

 

 

 

Operating expenses

 

 

957

 

 

 

1,554

 

 

 

 

Segment underwriting gain (loss)

 

 

434

 

 

 

1,303

 

 

 

1,737

 

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

Other corporate expenses

 

 

 

 

 

 

 

$

1,920

 

Net investment income

 

 

 

 

 

 

 

 

2,150

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(101

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

111

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

5,710

 

Other Income

 

 

 

 

 

 

 

 

86

 

Interest expense

 

 

 

 

 

 

 

 

2,653

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

5,120

 

 

Six months ended
June 30, 2025

 

Personal
Lines

 

 

Commercial
Lines

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

32,015

 

 

$

5,237

 

 

$

37,252

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

$

14,259

 

 

$

(2,036

)

 

$

12,223

 

 

 

 

 

 

 

 

 

Net earned premiums

 

$

18,080

 

 

$

1,799

 

 

$

19,879

 

Segment revenue

 

 

18,080

 

 

 

1,799

 

 

 

19,879

 

 

 

 

 

 

 

 

 

 

Losses and LAE, net

 

 

13,321

 

 

 

2,517

 

 

 

 

Policy acquisition costs

 

 

5,317

 

 

 

(353

)

 

 

 

Operating expenses

 

 

4,403

 

 

 

884

 

 

 

 

Segment underwriting gain (loss)

 

 

(4,961

)

 

 

(1,249

)

 

 

(6,210

)

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

Other corporate expenses

 

 

 

 

 

 

 

$

1,942

 

Net investment income

 

 

 

 

 

 

 

 

2,587

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

(25

)

Change in fair value of equity securities

 

 

 

 

 

 

 

 

(257

)

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

9,750

 

Other income

 

 

 

 

 

 

 

 

75

 

Interest expense

 

 

 

 

 

 

 

 

1,405

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

2,573