v3.26.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Obligations under Multi-Year Reinsurance Contracts
The Company purchases reinsurance coverage to protect its capital and to limit its losses when certain major events
occur. The Company’s reinsurance commitments generally run from June 1 of the current year to May 31 of the
following year. From time to time, certain of the Company’s reinsurance agreements may be for periods longer than
one year. Amounts payable for coverage during the current June 1 to May 31 contract period are recorded as
reinsurance payable in the condensed consolidated balance sheets. Multi-year contract commitments for future years
are recorded at the beginning of the coverage period. As of June 30, 2026 and December 31, 2025, there were no
multi-year reinsurance contract obligations.
Litigation
Lawsuits and other legal proceedings are filed against the Company from time to time. Many of these legal
proceedings involve claims under insurance policies that the Company underwrites. The Company is also involved
in various other legal proceedings and litigation unrelated to claims under the Company’s contracts, which arise in
the ordinary course of business. The Company accrues amounts resulting from claim-related legal proceedings in
unpaid losses and loss adjustment expenses during the period it determines an unfavorable outcome becomes
probable and amounts can be estimated. Management believes that the resolution of these legal actions will not have
a material impact on the Company’s condensed consolidated financial statements. The Company contests liability
and/or the amount of damages as appropriate in each pending matter.
Florida Insurance Guaranty Association
In April 2023, the Florida Insurance Guaranty Association (“FIGA”) issued an order for the collection of a 1.0%
FIGA assessment policy surcharge for policies effective October 1, 2023 through September 30, 2024. The order
directed member insurance companies to collect policy surcharge amounts in advance and to remit those surcharge
amounts to FIGA on a quarterly basis. The Company recorded an accrued liability totaling $3,091 and $1,690,
respectively, in other liability and accrued expenses as of June 30, 2026 and December 31, 2025, which represents
the policy surcharge amounts collected, but unremitted to FIGA as of that date.