XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have one reportable segment: management operations. All segment revenue is derived in the United States, the majority of which is from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange, our sole customer, as further described in Note 3, "Revenue". Our chief operating decision maker ("CODM") is our Executive Council, which includes our Chief Executive Officer ("CEO"), Chief Financial Officer, executive vice presidents and certain senior vice presidents reporting directly to the CEO as applicable. The CODM assesses performance for the management operations segment and decides how to allocate resources based on net income, as reported in our Consolidated Statements of Operations. Net income is used to monitor budget versus actual results. Total assets as reported in our Consolidated Statements of Financial Position, all of which are located in the United States, are reviewed by the CODM for purposes of decision making. The accounting policies of our management operations segment are the same as those described in Note 2, "Significant Accounting Policies, of Notes to Consolidated Financial Statements" included in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 27, 2025.

The following table presents our management operations segment revenue, significant segment expenses regularly provided to the CODM and net income:

Three months ended June 30,Six months ended June 30,
(in thousands)2025202420252024
Management fee revenue$842,149 $777,937 $1,614,843 $1,460,557 
Administrative services reimbursement revenue212,644 206,028 422,917 397,595 
Service agreement revenue5,304 6,473 11,736 12,987 
Total operating revenue1,060,097 990,438 2,049,496 1,871,139 
Commissions463,442 419,951 900,302 795,711 
Underwriting and policy processing51,907 50,733 103,167 98,901 
Information technology57,669 50,599 122,454 104,089 
Sales and advertising19,781 16,954 37,156 34,161 
Customer service11,390 10,346 23,077 20,426 
Administrative and other44,091 45,619 89,874 91,236 
Cost of operations - policy issuance and renewal services648,280 594,202 1,276,030 1,144,524 
Cost of operations - administrative services212,644 206,028 422,917 397,595 
Total operating expenses (1)
860,924 800,230 1,698,947 1,542,119 
Operating income199,173 190,208 350,549 329,020 
Total investment income19,600 13,827 39,136 28,906 
Other income1,974 3,292 5,808 6,703 
Income tax expense46,062 43,424 82,391 76,174 
Net income$174,685 $163,903 $313,102 $288,455 

(1)    Management operations segment depreciation and amortization expense included in "Total operating expenses" as reported on our Consolidated Statements of Operations totaled $16.1 million and $13.8 million in the second quarter of 2025 and 2024, respectively, and $31.9 million and $27.1 million for the six months ended June 30, 2025 and 2024, respectively. The Exchange and its insurance subsidiaries reimbursed us for approximately 29% and 28% in the six months ended June 30, 2025 and 2024, respectively, for depreciation and amortization expense on assets supporting administrative services. See our Consolidated Statements of Cash Flows for segment expenditures on fixed asset additions.