Segment Information

3 Months Ended

Mar. 31, 2025

Segment Information [Abstract]

Segment Information

20. Segment Information

We have five reportable operating segments of our continuing operations, 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). Prior to the sale of Westminster on June 30, 2024, we also reported a Commercial segment that consisted primarily of Westminster’s balances and results. Subsequent to the sale, Westminster is reported as part of discontinued operations, which is not included in our segment information. The commercial business that remains a part of our continuing operations has been included in the All Other segment for the current and prior periods presented. 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-months ended March 31, 2025 and 2024.

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. For purposes of evaluating profitability of the Non-Standard Auto segment, we combine the policy fees paid by the insured with the underwriting gain or loss as its primary profitability measure. As a result, these fees are allocated to the Non-Standard Auto segment (included in fee and other income) in the tables below. The remaining fee and other income amounts are not allocated to any segment.

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 net investment income, net investment gains, fee and other income excluding Non-Standard Auto, and income tax expense within the Unaudited Consolidated Statement of Operations. For the Consolidated Balance Sheets, those items include cash and investments, property and equipment, other assets, accrued expenses and other liabilities, income taxes recoverable, and shareholders’ equity.

	Three Months Ended March 31, 2025
	Private Passenger Auto			Non-Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	23,828		$	18,278		$	26,511		$	(15	)	$	3,559		$	72,161
Assumed premiums earned		—			—			—			—			39			39
Ceded premiums earned		(1,170	)		(25	)		(2,790	)		(361	)		(357	)		(4,703	)
Net premiums earned		22,658			18,253			23,721			(376	)		3,241			67,497
Direct losses and loss adjustment expenses		13,498			14,538			9,932			129			2,282			40,379
Assumed losses and loss adjustment expenses		—			—			—			—			(233	)		(233	)
Ceded losses and loss adjustment expenses		(3	)		—			(145	)		(628	)		(845	)		(1,621	)
Net losses and loss adjustment expenses		13,495			14,538			9,787			(499	)		1,204			38,525
Gross margin		9,163			3,715			13,934			123			2,037			28,972
Amortization of deferred policy acquisition costs		4,486			6,324			5,037			24			657			16,528
Other underwriting and general expenses (1)		2,892			1,957			2,796			—			987			8,632
Underwriting and general expenses		7,378			8,281			7,833			24			1,644			25,160
Underwriting gain (loss)		1,785			(4,566	)		6,101			99			393			3,812
Fee and other income					221												230
					(4,345	)
Net investment income																	2,838
Net investment gains																	869
Income before income taxes																	7,749
Income tax expense																	1,289
Net income																$	6,460
Operating Ratios:
Loss and loss adjustment expense ratio		59.6%			79.6%			41.3%			132.7%			37.1%			57.1%
Expense ratio		32.6%			45.4%			33.0%			(6.4)%			50.7%			37.3%
Combined ratio		92.2%			125.0%			74.3%			126.3%			87.8%			94.4%
Balances at March 31, 2025:
Premiums and agents’ balances receivable	$	26,159		$	9,676		$	10,446		$	30		$	2,909		$	49,220
Deferred policy acquisition costs		6,759			6,362			9,400			—			1,292			23,813
Reinsurance recoverables on losses		2,228			—			1,706			11			4,701			8,646
Receivable from Federal Crop Insurance Corporation		—			—			—			11,474			—			11,474
Goodwill and other intangibles		—			100			—			—			—			100
Unpaid losses and loss adjustment expenses		28,726			77,321			19,467			35			10,337			135,886
Unearned premiums		38,266			22,996			53,358			—			7,443			122,063

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

	Three Months Ended March 31, 2024
	Private Passenger Auto			Non-Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	23,225		$	25,058		$	24,245		$	(204	)	$	3,074		$	75,398
Assumed premiums earned		—			—			—			—			151			151
Ceded premiums earned		(1,123	)		(69	)		(2,831	)		(1,345	)		(297	)		(5,665	)
Net premiums earned		22,102			24,989			21,414			(1,549	)		2,928			69,884
Direct losses and loss adjustment expenses		11,409			16,869			12,782			(1,962	)		2,421			41,519
Assumed losses and loss adjustment expenses		—			—			—			—			45			45
Ceded losses and loss adjustment expenses		(116	)		—			(601	)		405			(1,108	)		(1,420	)
Net losses and loss adjustment expenses		11,293			16,869			12,181			(1,557	)		1,358			40,144
Gross margin		10,809			8,120			9,233			8			1,570			29,740
Amortization of deferred policy acquisition costs		4,038			8,288			3,960			16			515			16,817
Other underwriting and general expenses (1)		2,982			2,015			2,736			(18	)		990			8,705
Underwriting and general expenses		7,020			10,303			6,696			(2	)		1,505			25,522
Underwriting gain (loss)		3,789			(2,183	)		2,537			10			65			4,218
Fee and other income					350												404
					(1,833	)
Net investment income																	2,755
Net investment gains																	1,456
Income before income taxes																	8,833
Income tax expense																	1,898
Net income																$	6,935
Operating Ratios:
Loss and loss adjustment expense ratio		51.1%			67.5%			56.9%			100.5%			46.4%			57.4%
Expense ratio		31.8%			41.2%			31.3%			0.1%			51.4%			36.5%
Combined ratio		82.9%			108.7%			88.2%			100.6%			97.8%			93.9%
Balances at March 31, 2024:
Premiums and agents’ balances receivable	$	24,562		$	22,720		$	10,269		$	—		$	2,428		$	59,979
Deferred policy acquisition costs		6,295			12,978			8,621			—			1,054			28,948
Reinsurance recoverables on losses		88			—			2,970			33			3,255			6,346
Receivable from Federal Crop Insurance Corporation		—			—			—			13,913			—			13,913
Goodwill and other intangibles		—			2,728			—			—			—			2,728
Unpaid losses and loss adjustment expenses		25,610			65,228			20,124			92			9,477			120,531
Unearned premiums		36,095			42,641			48,751			—			6,240			133,727

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