Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

Note 14 -- Segment Information

The Company identifies its operating divisions based on managerial emphasis, organizational structure and revenue source. The Company has five reportable segments: HCPCI insurance operations, TypTap Group, reciprocal exchange operations, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under TypTap Group and reciprocal exchange operations, are grouped together into one reportable segment under HCPCI insurance operations. The TypTap Group segment includes its property and casualty insurance operations, information technology operations and its management company’s activities. The reciprocal exchange segment represents the insurance operations of CORE, a consolidated VIE. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies and any other companies, such as CRM, that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.

For the three months ended June 30, 2024 and 2023, revenues from the HCPCI insurance operations segment before intracompany elimination represented 57.3% and 65.1%, respectively, and revenues from the TypTap Group segment represented 37.2% and 33.4%, respectively, of total revenues of all operating segments. For the six months ended June 30, 2024 and 2023, revenues from the HCPCI insurance operations segment before intracompany elimination represented 60.2% and 63.3%, respectively, and revenues from the TypTap Group segment represented 35.7% and 34.9%, respectively, of total revenues of all operating segments. At June 30, 2024 and December 31, 2023, HCPCI insurance operations’ total assets represented 54.9% and 55.3%, respectively, and TypTap Group’s total assets represented 32.0% and 33.6%, respectively, of the combined assets of all operating segments.

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

For Three Months Ended June 30, 2024	HCPCI Insurance Operations			TypTap Group			Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	150,357		$	107,055		$	12,804		$	—	$	—		$	(6,655	)	$	263,561
Premiums ceded		(46,828	)		(30,271	)		(6,269	)		—		—			6,655			(76,713	)
Net premiums earned		103,529			76,784			6,535			—		—			—			186,848
Net income from investment portfolio		7,087			5,008			139			—		3,975			1,417			17,626
Policy fee income		571			518			—			—		—			—			1,089
Other		3,689			3,556			9			5,834		3,611			(16,017	)		682
Total revenue		114,876			85,866			6,683			5,834		7,586			(14,600	)		206,245
Expenses:
Losses and loss adjustment expenses		37,856			38,790			1,605			—		—			73			78,324
Amortization of deferred policy   acquisition costs		11,017			10,846			88			—		—			—			21,951
Other policy acquisition expenses		609			514			1,805			—		—			(1,427	)		1,501
Stock-based compensation expense		319			656			—			—		1,401			—			2,376
Interest expense		—			1,806			559			221		3,231			(2,365	)		3,452
Depreciation and amortization		139			1,130			—			418		162			(285	)		1,564
Personnel and other operating expenses		14,457			10,210			52			1,629		4,140			(9,437	)		21,051
Total expenses		64,397			63,952			4,109			2,268		8,934			(13,441	)		130,219
Income (loss) before income taxes (d)	$	50,479		$	21,914		$	2,574		$	3,566	$	(1,348	)	$	(1,159	)	$	76,026
Total revenue from non-affiliates (e)	$	105,143		$	89,947		$	7,895		$	4,992	$	2,265
Gross premiums written	$	191,774		$	79,093		$	36,035

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina operations and management fees for attorney-in-fact services.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $143,702 from HCPCI and $6,655 from a reinsurance company.

(d)The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions between the reciprocal exchange operations and the AIF operations. The reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while the AIF operations recognize service fee revenues according to U.S. GAAP revenue recognition standards. Although both service fee expenses and revenues are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.

(e)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

For Three Months Ended June 30, 2023	HCPCI Insurance Operations			TypTap Group			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	101,790		$	85,071		$	—	$	—		$	(4,915	)	$	181,946
Premiums ceded		(40,453	)		(30,848	)		—		—			4,911			(66,390	)
Net premiums earned		61,337			54,223			—		—			(4	)		115,556
Net income from investment portfolio		4,393			3,602			—		1,627			(161	)		9,461
Policy fee income		551			918			—		—			—			1,469
Other		3,717			1,190			2,132		677			(6,875	)		841
Total revenue		69,998			59,933			2,132		2,304			(7,040	)		127,327
Expenses:
Losses and loss adjustment expenses		27,653			34,937			—		—			(700	)		61,890
Amortization of deferred policy acquisition   costs		10,000			11,422			—		—			—			21,422
Other policy acquisition expenses		617			597			—		—			(18	)		1,196
Stock-based compensation expense		498			658			—		711			—			1,867
Interest expense		—			430			67		2,600			(430	)		2,667
Depreciation and amortization		141			1,030			326		204			(236	)		1,465
Personnel and other operating expenses		8,916			9,938			1,501		1,855			(5,656	)		16,554
Total expenses		47,825			59,012			1,894		5,370			(7,040	)		107,061
Income (loss) before income taxes	$	22,173		$	921		$	238	$	(3,066	)	$	—		$	20,266
Total revenue from non-affiliates (d)	$	62,240		$	67,411		$	1,325	$	1,735
Gross premiums written	$	140,545		$	39,438

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina operations.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $96,875 from HCPCI and $4,915 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

For Six Months Ended June 30, 2024	HCPCI Insurance Operations			TypTap Group			Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	305,739		$	210,803		$	16,429		$	—	$	—		$	(12,766	)	$	520,205
Premiums ceded		(90,154	)		(58,944	)		(8,487	)		—		—			12,766			(144,819	)
Net premiums earned		215,585			151,859			7,942			—		—			—			375,386
Net income from investment portfolio		15,315			9,551			195			—		8,669			598			34,328
Policy fee income		1,075			1,033			—			—		—			—			2,108
Other		7,227			5,051			9			9,281		4,641			(25,172	)		1,037
Total revenue		239,202			167,494			8,146			9,281		13,310			(24,574	)		412,859
Expenses:
Losses and loss adjustment expenses		76,870			79,343			2,873			—		—			(840	)		158,246
Amortization of deferred policy   acquisition costs		21,153			21,641			88			—		—			—			42,882
Other policy acquisition expenses		1,188			1,033			2,351			—		—			(1,863	)		2,709
Stock-based compensation expense		688			1,357			—			—		1,913			—			3,958
Interest expense		—			3,306			1,371			444		6,157			(4,677	)		6,601
Depreciation and amortization		277			2,218			—			798		322			(561	)		3,054
Personnel and other operating expenses		26,205			20,180			106			3,063		7,873			(15,474	)		41,953
Total expenses		126,381			129,078			6,789			4,305		16,265			(23,415	)		259,403
Income (loss) before income taxes (d)	$	112,821		$	38,416		$	1,357		$	4,976	$	(2,955	)	$	(1,159	)	$	153,456
Total revenue from non-affiliates (e)	$	220,099		$	178,030		$	9,811		$	7,598	$	6,350
Gross premiums written	$	283,649		$	222,717		$	55,522

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina operations and management fees for attorney-in-fact services.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $292,973 from HCPCI and $12,766 from a reinsurance company.

(d)The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions between the reciprocal exchange operations and the AIF operations. The reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while the AIF operations recognize service fee revenues according to U.S. GAAP revenue recognition standards. Although both service fee expenses and revenues are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.

(e)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

For Six Months Ended June 30, 2023	HCPCI Insurance Operations			TypTap Group			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	198,781		$	172,683		$	—	$	—		$	(9,450	)	$	362,014
Premiums ceded		(80,648	)		(65,671	)		—		—			9,420			(136,899	)
Net premiums earned		118,133			107,012			—		—			(30	)		225,115
Net income from investment portfolio		7,347			6,981			—		3,527			8,701			26,556
Gain from sales of real estate investments		—			—			8,936		—			(8,936	)		—
Policy fee income		1,114			1,445			—		—			—			2,559
Other		8,370			2,833			5,055		1,272			(15,404	)		2,126
Total revenue		134,964			118,271			13,991		4,799			(15,669	)		256,356
Expenses:
Losses and loss adjustment expenses		56,435			67,993			—		—			(1,973	)		122,455
Amortization of deferred policy acquisition   costs		19,621			23,285			—		—			—			42,906
Other policy acquisition expenses		1,272			1,208			—		—			(48	)		2,432
Stock-based compensation expense		994			1,487			—		1,492			—			3,973
Interest expense		—			861			270		5,198			(861	)		5,468
Depreciation and amortization		280			1,986			953		406			(773	)		2,852
Loss on extinguishment of debt		—			—			177		—			(177	)		—
Personnel and other operating expenses		18,835			19,371			3,055		3,444			(11,837	)		32,868
Total expenses		97,437			116,191			4,455		10,540			(15,669	)		212,954
Income (loss) before income taxes	$	37,527		$	2,080		$	9,536	$	(5,741	)	$	—		$	43,402
Total revenue from non-affiliates (d)	$	119,169		$	128,697		$	12,376	$	3,661
Gross premiums written	$	225,698		$	154,139

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina operations.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $189,331 from HCPCI and $9,450 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

	June 30,			December 31,
	2024			2023
Segments:
HCPCI Insurance Operations	$	1,021,739		$	933,116
TypTap Group		665,767			623,366
Reciprocal Exchange Operations		79,756			25,000
Real Estate Operations		136,895			132,257
Corporate and Other		324,136			233,952
Consolidation and Elimination		(316,912	)		(136,375	)
Total assets	$	1,911,381		$	1,811,316