Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill, both at September 30, 2020 and December 31, 2019, was $73,045,000. There was no goodwill acquired or disposed of during the three or nine month periods ended September 30, 2020 and 2019.

We completed our most recent goodwill impairment testing during the fourth quarter of 2019 and determined that there was no impairment in the value of the asset as of December 31, 2019. The future potential impacts of COVID-19 on the operating results of our reporting units are uncertain, as we continue to monitor the global economic volatility. However, we remain committed to our strategic plan to realize our long-term forecasts. As a result of our analysis, and in consideration of the totality of events and circumstances, we did not identify any triggering events of impairment during the three and nine month periods ended September 30, 2020.

No impairment loss in the value of goodwill was recognized during the three or nine month periods ended September 30, 2020 and 2019. Additionally, there was no accumulated impairment related to goodwill at September 30, 2020 or December 31, 2019.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Unaudited Condensed Consolidated Balance Sheets:

	September 30, 2020		December 31, 2019
Intangible assets subject to amortization	$	19,216	$	22,440
Indefinite-lived intangible assets(1)	3,639		3,639
Total	$	22,855	$	26,079

(1) Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:

	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount
September 30, 2020
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	6.3	34,661		(18,275)		16,386
Trade names acquired	3.5	6,381		(3,551)		2,830
Total		$	83,830	$	(64,614)	$	19,216
December 31, 2019
Value of business acquired	—	$	42,788	$	(42,788)	$	—
Agency agreements acquired	6.8	34,661		(15,658)		19,003
Trade names acquired	4.3	6,381		(2,944)		3,437
Total		$	83,830	$	(61,390)	$	22,440

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three and nine months ended September 30, 2020 and 2019.

Amortization expense of our intangible assets was $1,043,000 and $1,326,000 for the three months ended September 30, 2020 and 2019, respectively. Amortization expense of intangible assets was $3,224,000 and $4,030,000 for the nine months ended September 30, 2020 and 2019, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company during the remainder of 2020 and over the next five years is as follows:

Year ending December 31,	Estimated Amortization Expense
Remaining in 2020	$	1,043
2021	3,555
2022	3,246
2023	3,246
2024	2,640
2025	2,438