Segment Information

9 Months Ended

Sep. 30, 2023

Segment Information [Abstract]

Segment Information

6 - Segment Information

We evaluate the performance of our personal lines and commercial lines segments based upon the underwriting results of our insurance subsidiaries using statutory accounting principles (“SAP”) that various state insurance departments prescribe or permit. Our management uses SAP to measure the performance of our insurance subsidiaries instead of United States generally accepted accounting principles (“GAAP”). SAP financial measures are considered non-GAAP financial measures under applicable SEC rules because they include or exclude certain items that the most comparable GAAP financial measures do not ordinarily include or exclude.

Financial data by segment for the three and nine months ended September 30, 2023 and 2022 is as follows:

	Three Months Ended September 30,
	2023			2022
	(in thousands)
Revenues:
Premiums earned:
Commercial lines	$	135,432		$	127,497
Personal lines		88,961			78,625
GAAP premiums earned		224,393			206,122
Net investment income		10,536			8,569
Investment losses		(1,243	)		(2,358	)
Other		242			505
Total revenues	$	233,928		$	212,838
Loss before income tax benefit:
Underwriting gain (loss):
Commercial lines	$	9,957		$	(12,100	)
Personal lines		(20,016	)		(9,126	)
SAP underwriting loss		(10,059	)		(21,226	)
GAAP adjustments		(118	)		1,430
GAAP underwriting loss		(10,177	)		(19,796	)
Net investment income		10,536			8,569
Investment losses		(1,243	)		(2,358	)
Other		(121	)		216
Loss before income tax benefit	$	(1,005	)	$	(13,369	)

	Nine Months Ended September 30,
	2023			2022
	(in thousands)
Revenues:
Premiums earned:
Commercial lines	$	399,427		$	378,680
Personal lines		256,459			230,819
GAAP premiums earned		655,886			609,499
Net investment income		30,143			24,631
Investment gains (losses)		930			(10,811	)
Other		911			1,457
Total revenues	$	687,870		$	624,776
Income (loss) before income tax expense (benefit):
Underwriting loss:
Commercial lines	$	(4,024	)	$	(16,873	)
Personal lines		(24,950	)		(12,654	)
SAP underwriting loss		(28,974	)		(29,527	)
GAAP adjustments		5,968			7,984
GAAP underwriting loss		(23,006	)		(21,543	)
Net investment income		30,143			24,631
Investment gains (losses)		930			(10,811	)
Other		(522	)		1
Income (loss) before income tax expense (benefit)	$	7,545		$	(7,722	)