Deferred Policy Acquisition Costs, Net

9 Months Ended

Sep. 30, 2021

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs, Net

Deferred Policy Acquisition Costs, Net

Deferred policy acquisition costs, net ("DPAC") consists of the following (in thousands):

	September 30, 2021		December 31, 2020
	(unaudited)
Deferred policy acquisition costs	$	11,363	$	10,511
Deferred ceding commission [1]	(104)		(1,202)
Accumulated amortization	(9,690)		(8,653)
Deferred policy acquisition costs, net	$	1,569	$	656

[1] As of June 30, 2021, the Company had commuted all of its reinsurance agreements. Balance from this period onward represents deferred commissions from the Company's relationship with NGI. See Note 1, Overview and Basis of Presentation for more detail regarding NGI.

For the three months ended September 30, 2021 and 2020 (unaudited), total amortization expense was approximately $0.3 million and $0.4 million , respectively. For the nine months ended September 30, 2021 and 2020 (unaudited), total amortization expense was approximately $1.0 million and $1.2 million, respectively. During all periods presented the amortization expense was included as part of sales, marketing and other acquisition costs in the Company’s consolidated statements of operations.