0001519449-23-000031 | 10-Q | XBRL Viewer | Skyward Specialty Insurance Group INC

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Premium Receivable, Allowance for Credit Loss

The following table sets forth the changes in the allowance for expected credit losses on premiums receivable for the six months ended June 30, 2023.


($ in thousands)	Allowance for Credit Losses
Balance at December 31, 2022	$	629
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023	—
Current period change for estimated uncollectible premiums	409
Write-offs of uncollectible premiums receivable	(56)
Balance at March 31, 2023	$	982
Current period change for estimated uncollectible premiums	37
Write-offs of uncollectible premiums receivable	(96)
Recoveries of amounts previously written off	18
Balance at June 30, 2023	$	941

Reinsurance Recoverable, Credit Quality Indicator

A summary of the Company’s reinsurance recoverables net of credit enhancements by A.M. Best rating as of June 30, 2023 was as follows:


A.M. Best Rating	June 30, 2023
A- and above	98.6	%
B++ to B+	1.4

Not rated	—

Reinsurance Recoverable, Allowance for Credit Loss

The following table sets forth the changes in the allowance for estimated uncollectible reinsurance for the six months ended June 30, 2023:


($ in thousands)	Allowance for Credit Losses
Balance at December 31, 2022	$	—
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023	2,295
Current period change for estimated uncollectible reinsurance	—
Write-offs of uncollectible reinsurance recoverables	—
Balance at March 31, 2023	$	2,295
Current period change for estimated uncollectible reinsurance	—
Write-offs of uncollectible reinsurance recoverables	—
Balance at June 30, 2023	$	2,295

Related Party Transactions - Westaim Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Unrealized losses	$ (5,038)	$ 14,514	$ (8,783)	$ 19,883
Skyward Specialty Insurance Group \| Westaim HIIG LP
Related Party Transaction [Line Items]
Ownership interest			28.40%		44.50%
Limited partner \| Westaim
Related Party Transaction [Line Items]
Unrealized losses			$ 1,100		$ 2,300

Stockholders’ Equity	6 Months Ended
Stockholders’ Equity	Jun. 30, 2023
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Reverse Stock Split On September 23, 2022, the Board of Directors approved a 4-for-1 reverse stock split of the Company’s common stock. The reverse stock split became effective January 3, 2023. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the reverse stock split of common stock for all periods presented. Initial Public Offering On January 4, 2023, the Company announced the launch of its initial public offering (“IPO”) of its common stock. On January 12, 2023, the Company priced its IPO of 8,952,383 shares of its common stock, with 4,750,000 shares offered by the Company and 4,202,383 shares sold by selling stockholders, at a public price of $15.00 per share. The shares began trading on January 13, 2023 on the Nasdaq Global Select Market under the ticker symbol “SKWD.” The Company completed its IPO on January 18, 2023. The underwriters exercised in full their option to purchase 1,342,857 additional shares of common stock from the selling stockholders, at a price per share of $15.00. The Company’s net proceeds from the IPO were approximately $62.0 million, after deducting underwriting discounts and specific incremental expenses directly attributable to the IPO. Upon the closing of its IPO, the Company filed an amended and restated certificate of incorporation which, among other things, increased the number of authorized shares consisting of 500,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. Preferred Shares Conversion The Preferred Shares had preference in liquidation over common stock in the amount of the face value of $50.00 per share and any declared but unpaid dividends to related common shares at the applicable conversion rate. The Preferred Shares provided the holder the option at any time to convert the Preferred Shares into common stock based on the Option Conversion Rate. At December 31, 2022, the Company had 1,969,660 Preferred Shares that could be converted to 16,305,113 common shares based on a conversion price equal to $6.04 per common share. The Preferred Shares were subject to mandatory conversion upon the closing of an IPO at the Mandatory Conversion Rate. At December 31, 2022, the Mandatory Conversion Rate allowed the holder of the Preferred Shares the right to convert into common stock based on a conversion price equal to $6.04 per common share. On January 18, 2023, the 1,969,660 Preferred Shares converted to 16,305,113 shares of common stock upon the Company’s closing of its IPO.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Underwriting, Acquisition and Insurance Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Income and Expenses [Abstract]
Amortization of policy acquisition costs	$ 23,136	$ 14,714	$ 44,371	$ 28,135
Other operating and general expenses	33,547	29,669	63,967	56,783
Total underwriting, acquisition and insurance expenses	$ 56,683	$ 44,383	$ 108,338	$ 84,918

- Definition

Amount of amortization expense (reversal of expense) for deferred policy acquisition costs.

+ References + Details

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,564	$ 1,292	$ 9,730	$ 5,561
Effective tax rate	22.20%	20.30%	21.70%	20.60%
Cash paid for federal income taxes	$ 4,200		$ 4,200	$ 0

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements of Skyward Specialty Insurance Group, Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the disclosures required by GAAP for complete consolidated financial statements. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair statement of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited annual consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates. Recent Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and fixed maturity securities, by introducing an approach based on expected losses. The expected loss approach required entities to incorporate considerations of historical information, current information, and reasonable and supportable forecasts. The Company adopted ASU 2016-13 effective January 1, 2023 using the modified retrospective approach, by which a cumulative-effect adjustment was made to retained earnings as of the date of adoption. In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for mortgage loans effective January 1, 2023 as targeted transition relief. The adoption of ASU 2016-13 resulted in a $2.3 million increase in accumulated deficit, net of tax. Updates to Significant Accounting Policies The following accounting policies have been updated to reflect the Company's adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments as described above. Investments Available-for-sale Investments in fixed maturities that are classified as available-for-sale are carried at fair value. For available-for-sale fixed maturities in an unrealized loss position, the Company first determines whether there is an intent to sell the security or if it is more likely than not that the Company will be required to sell the security before maturity or recovery of its cost basis. If either of these criteria were met, the amortized cost of the security is written down to fair value with the losses recognized in net investment gains (losses) on the consolidated statements of operations. If neither of the these criteria were met, the Company determines whether unrealized losses are due to credit-related factors. If the unrealized losses are due to credit-related factors, an allowance for credit losses is determined using a present value of cash flows compared to the amortized cost of the security. The allowance for credit losses is limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in net investment income on the consolidated statements of operations. Credit losses that are limited by the fair value of the security are recognized in stockholders’ equity, net of taxes, as a component of accumulated other comprehensive (loss) income. Unrealized losses that are not credit-related continue to be recognized in stockholders’ equity, net of taxes, as a component of accumulated other comprehensive (loss) income. Held-to-maturity Investments in fixed maturity securities that are held-to-maturity are carried at amortized cost net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate from Moody’s table of estimated multi-year cumulative loss rates for asset backed securities. This historical loss rate is adjusted for current conditions and reasonable and supportable forecasts. Changes in the allowance for credit losses are recognized in net investment income on the consolidated statements of operations. Mortgage loans The Company elected the fair value option in accounting for mortgage loans effective January 1, 2023 as targeted transition relief. Under the fair value option, mortgage loans are measured at fair value, and changes in unrealized gains and losses on mortgage loans are reported in net investment gains (losses) on the condensed consolidated statements of operations. Interest income and amortization continue to be recognized in net investment income on the consolidated statements of operations. Reinsurance Reinsurance Recoverables Reinsurance recoverables are carried net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate using the A.M. Best impairment rate and rating transition study which provides historical loss data of similarly rated reinsurance companies based on the expected duration of the receivables. This historical loss rate is adjusted for current conditions and reasonable and supportable forecasts and consideration of current economic conditions. Changes in the allowance for credit losses are recognized in underwriting, acquisition and insurance expenses on the consolidated statements of operations. Premiums Premium receivables are carried net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate using historical write-offs and aging of receivables. This historical loss rate is adjusted for current conditions, reasonable and supportable forecasts and our ability to cancel coverage on a policy after premium is considered past due. Changes in the allowance for credit losses are recognized in underwriting, acquisition and insurance expenses on the consolidated statements of operations.

Other Long-Term Investments - Carrying Value of Equity Method Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	$ 79,390	$ 86,789
Arena Special Opportunities Fund, LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	41,364	44,504
JVM Funds LLC
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	21,190	22,473
Arena SOP LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	5,956	8,734
RISCOM
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	4,342	4,037
Hudson Ventures Fund II LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	3,623	3,551
Dowling Capital Partners LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	2,133	1,965
Universa Black Swan LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	421	1,325
Brewer Lane Ventures Fund II LP units
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	$ 361	$ 200

Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost
Due in less than one year	$ 27,565
Due after one year through five years	233,387
Due after five years through ten years	125,247
Due after ten years	50,376
Gross Amortized Cost	819,762	$ 662,616
Fair Value
Due in less than one year	26,980
Due after one year through five years	221,664
Due after five years through ten years	114,920
Due after ten years	45,452
Total	767,491	607,572
Mortgage-backed securities
Amortized Cost
Without single maturity date	233,992
Fair Value
Without single maturity date	214,925
Asset-backed securities
Amortized Cost
Without single maturity date	149,195
Fair Value
Without single maturity date	143,550
Total	$ 143,550	$ 109,824

Stockholders’ Equity - Narrative (Details) $ / shares in Units, $ in Thousands				6 Months Ended
	Jan. 18, 2023 USD ($) $ / shares shares	Jan. 12, 2023 $ / shares shares	Sep. 23, 2022	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Proceeds from initial public offering \| $				$ 66,262	$ 0
Common stock, shares authorized (in shares)	500,000,000			500,000,000		168,000,000
Common stock, par value (in USD per share) \| $ / shares	$ 0.01			$ 0.01		$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000			10,000,000		2,000,000
Preferred stock, par value (in USD per share) \| $ / shares	$ 0.01			$ 0.01		$ 0.01
Preferred stock, liquidation preference (in USD per share) \| $ / shares				$ 50.00
Preferred stock, shares outstanding (in shares)	1,969,660			0		1,969,660
Common shares upon conversion of preferred shares (in shares)						16,305,113
Preferred stock, convertible, conversion price (in USD per share) \| $ / shares						$ 6.04
Convertible preferred stock (in shares)	16,305,113
Equity conversion ratio			0.25
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued (in shares)		8,952,383
Sale of stock, price per share (in USD per share) \| $ / shares		$ 15.00
Proceeds from initial public offering \| $	$ 62,000
IPO - Shares From Company
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued (in shares)		4,750,000
IPO - Shares From Existing Shareholders
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued (in shares)		4,202,383
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued (in shares)	1,342,857

Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Contingently issuable instruments (treasury stock method)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	58	0	0
Market condition awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	0	25,774	0
Performance condition awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,014	0	68,585	0
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	922	0	237,125	0
Options (treasury stock method)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	315	0	357,059	0

Other Long-Term Investments - Investment in RISCOM (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract]
Recorded investment balance	$ 79,390	$ 86,789
RISCOM
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract]
Underlying equity	2,719	2,292
Difference	1,623	1,745
Recorded investment balance	$ 4,342	$ 4,037

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth the Company’s income tax expense and effective tax rates for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,						Six months ended June 30,
($ in thousands	2023			2022			2023			2022
Income tax expense	$	5,564		$	1,292		$	9,730		$	5,561
Effective tax rate	22.2		%	20.3		%	21.7		%	20.6		%

Commission and Fee Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total commission and fee income	$ 2,240	$ 2,060	$ 3,732	$ 2,290
SUA commission revenue
Disaggregation of Revenue [Line Items]
Total commission and fee income	1,385	1,361	2,242	1,503
SUA fee income
Disaggregation of Revenue [Line Items]
Total commission and fee income	805	664	1,261	505
Other
Disaggregation of Revenue [Line Items]
Total commission and fee income	$ 50	$ 35	$ 229	$ 282

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Equity Awards

The following table sets forth the Company’s equity awards, target payout ranges and authorized target restricted stock and stock units for the six months ended June 30, 2023 and 2022:

Award
Payout Range

Requisite
Service Period

Target
Stock and Stock Units

Six months ended June 30, 2023

Market condition awards

0%–150%

3 years

37,622

Performance condition awards

0%–150%

3 years

92,904

Service condition awards

N/A

1–4 years

962,028

Stock options

N/A

3–4 years

759,990

1,852,544

Six months ended June 30, 2022

Market condition awards

0%–150%

3 years

28,495

Performance condition awards

0%–150%

3 years

26,210

Service condition awards

N/A

1–3 years

137,706

192,411

The following table sets forth option activity for the six months ended June 30, 2023:


	Weighted-Average Exercise Price		Stock
Outstanding at January 1, 2023			—
Granted	$	15.00	759,990
Exercised			—
Forfeited			—
Outstanding at June 30, 2023			759,990

Schedule of Nonvested Share Activity

The following table sets forth the Company’s restricted stock and restricted stock units activity for the six months ended June 30, 2023 and 2022:


	Weighted-Average Grant-Date Fair Value		Stock and Stock Units
Non-vested at January 1, 2023	$	12.55	419,896
Granted	16.00		1,092,554
Vested	12.91		(32,496)
Forfeited	15.07		(25,176)
Non-vested at June 30, 2023	$	15.08	1,454,778

Non-vested at January 1, 2022	$	13.23	375,643
Granted	13.16		192,411
Vested	15.87		(113,625)
Forfeited	12.69		(1,950)
Non-vested at June 30, 2022	$	12.54	452,479

Commission and Fee Income - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract asset after allowance for credit loss	$ 1.7	$ 1.3	$ 1.5	$ 1.2

Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Losses and Loss Adjustment Expenses

The following table sets forth the reconciliation of unpaid losses and loss adjustment expenses (“LAE”) as reported in the condensed consolidated balance sheets as of and for the six months ended June 30, 2023 and 2022:



($ in thousands)	2023		2022
Reserves for losses and LAE, beginning of period	$	1,141,757	$	979,549
Less: reinsurance recoverable on unpaid claims, beginning of period	(435,986)		(381,338)
Reserves for losses and LAE, beginning of period, net of reinsurance	705,771		598,211
Incurred, net of reinsurance, related to:
Current period	240,010		181,790
Prior years	—		—
Total incurred, net of reinsurance	240,010		181,790
Paid, net of reinsurance, related to:
Current period	29,124		30,865
Prior years	133,757		110,318
Total paid	162,881		141,183
Net reserves for losses and LAE, end of period	782,900		638,818
Plus: reinsurance recoverable on unpaid claims, end of period	441,227		397,567
Reserves for losses and LAE, end of period	$	1,224,127	$	1,036,385

Other Long-Term Investments - Unfunded Commitment of Equity Method Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Unfunded Commitment	$ 6,307	$ 6,982
Brewer Lane Ventures Fund II LP units
Schedule of Equity Method Investments [Line Items]
Unfunded Commitment	4,610	4,800
Dowling Capital Partners LP units
Schedule of Equity Method Investments [Line Items]
Unfunded Commitment	386	386
Hudson Ventures Fund II LP units
Schedule of Equity Method Investments [Line Items]
Unfunded Commitment	$ 1,311	$ 1,796

Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions

Westaim

As of June 30, 2023 and December 31, 2022, Westaim and Westaim HIIG LP owned 28.4% and 44.5%, respectively, of the Company’s common stock. The changes in ownership percentage were primarily due to the IPO, conversion of preferred stock to common stock, and secondary offering.

The Company’s investment in Westaim was included in equity securities on the consolidated balance sheets. The unrealized loss on this investment as of June 30, 2023 and December 31, 2022 were $1.1 million and $2.3 million, respectively.

Prior to the closing of the IPO, Westaim performed consulting and certain other services for the Company pursuant to a Management Services Agreement. This agreement terminated pursuant to its terms upon the closing of the IPO.

RISCOM

RISCOM provides the Company with wholesale brokerage services. RISCOM and the Company also have a managing general agency agreement. The Company holds a 20% ownership interest in RISCOM.

Net earned premium and gross commission expense related to these agreements for the three and six months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Net earned premium	$	19,916	$	22,508	$	42,101	$	43,526
Commissions	6,149		5,759		13,002		13,107

Premiums receivable as of June 30, 2023 and December 31, 2022 were $17.0 million and $9.9 million, respectively.

Reinsurance

The Company has reinsurance agreements with Everest Re, an affiliate of Mt. Whitney Securities, LLC, which was a limited partner of Westaim HIIG LP through November 30, 2022, and holder of preferred shares. During the three and six months ended June 30, 2023, Mt. Whitney Securities divested their entire ownership of the Company’s equity securities. Reinsurance premiums ceded during the three and six months ended June 30, 2022 related to the agreement were $22.6 million and $42.2 million, respectively. Reinsurance recoverable from Everest Re, net of premium payables at December 31, 2022 were $177.5 million.

Other

Advisory and professional services fees and expense reimbursements paid to various affiliated stockholders and directors for the three and six months ended June 30, 2023 were $0.5 million and $2.6 million, respectively, compared to $1.5 million and $2.2 million, respectively, for the three and six months ended June 30, 2022.

See Note 4 and 5 for investments involving affiliated companies and additional related party transactions.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Other Long-Term investments

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Other Long-Term Investments

Equity Method Investments

The Company’s ownership interests in most of its equity method investments range from approximately 3% to less than 50% where the Company has significant influence but not control.

The carrying value of the Company’s equity method investments as of June 30, 2023 and December 31, 2022 were as follows:


($ in thousands)	June 30, 2023		December 31, 2022
Arena Special Opportunities Fund, LP units	$	41,364	$	44,504
JVM Funds LLC units	21,190		22,473
Arena SOP LP units	5,956		8,734
RISCOM	4,342		4,037
Hudson Ventures Fund 2 LP units	3,623		3,551
Dowling Capital Partners LP units	2,133		1,965
Universa Black Swan LP units	421		1,325
Brewer Lane Ventures Fund II LP units	361		200
	$	79,390	$	86,789

The following table sets forth the components of net investment (loss) income from equity method investments for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Dowling Capital Partners LP units	$	338	$	41	$	605	$	555
RISCOM	224		808		305		826
Brewer Lane Ventures Fund II LP	(29)		—		(29)		—
Hudson Ventures Fund II LP units	(158)		332		(413)		396
JVM Funds LLC	(221)		(955)		(641)		(768)
Universa Black Swan LP units	(348)		(1,057)		(904)		(1,550)
Arena SOP LP units	(727)		1,631		(2,778)		7,771
Arena Special Opportunities Fund, LP units	(1,183)		1,443		(2,913)		4,245
	$	(2,104)	$	2,243	$	(6,768)	$	11,475

The following table sets forth the unfunded commitment of equity method investments as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Brewer Lane Ventures Fund II LP units	$	4,610	$	4,800
Hudson Ventures Fund 2 LP units	1,311		1,796
Dowling Capital Partners LP units	386		386
	$	6,307	$	6,982

The difference between the cost of an investment and its proportionate share of the underlying equity in net assets is allocated to the various assets and liabilities of the equity method investment. The Company amortizes the difference in net assets over the same useful life of a similar asset as the underlying equity method investment. For investment in RISCOM, a similar asset would be agent relationships. The Company amortizes this difference over a 15-year useful life.

The following table sets forth the Company’s recorded investment in RISCOM compared to its share of underlying equity as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Investment in RISCOM:
Underlying equity	$	2,719	$	2,292
Difference	1,623		1,745
Recorded investment balance	$	4,342	$	4,037

The following table sets forth the Company’s recorded investment in JVM Funds LLC compared to its share of underlying equity as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Investment in JVM Funds LLC:
Underlying equity	$	20,358	$	21,565
Difference	832		908
Recorded investment balance	$	21,190	$	22,473

Investment in Bank Holding Company

The Company carries its investment in Captex Bancshares at cost, less impairment or observable changes in price. The Company reviews this investment for impairment or observable changes in price during each reporting period. There were no impairments or observable changes in price during the six months ended June 30, 2023 and the year ended December 31, 2022.

Investment in Indirect Loans and Loan Collateral

As of June 30, 2023 and December 31, 2022, the Company held indirect investments in collateralized loans and loan collateral through SMA1 and SMA2.

The carrying value and unfunded commitment of the SMA1 and SMA2 as of June 30, 2023 and December 31, 2022 were as follows:


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying Value		Unfunded Commitment		Carrying Value		Unfunded Commitment
SMA1	$	32,867	$	—	$	36,426	$	—
SMA2	8,779		—		2,010		—
Investment in indirect loans and loan collateral	$	41,646	$	—	$	38,436	$	—

Investment in Trust

The Company carries its investment in the common stock of the Delos Capital Trust n/k/a HIIG Capital Trust I (“Trust”) at cost. There were no impairments or observable changes in price during the six months ended June 30, 2023 and 2022.

Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3 - Measurement Input, Incremental Cost of Capital	Jun. 30, 2023
High
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable	14.53%
Low
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable	5.15%
Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans receivable	7.14%

Allowance for Credit Losses- Reinsurance Recoverable, Credit Quality Indicator (Details) - Reinsurer concentration risk - Reinsurance recoverable including reinsurance premium paid	6 Months Ended
	Jun. 30, 2023
A- and above
Ceded Credit Risk [Line Items]
Concentration risk, percentage	98.60%
B++ to B+
Ceded Credit Risk [Line Items]
Concentration risk, percentage	1.40%
Not rated
Ceded Credit Risk [Line Items]
Concentration risk, percentage	0.00%

Related Party Transactions - Other Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Professional fees and reimbursements \| Related Party
Related Party Transaction [Line Items]
Professional fees	$ 0.5	$ 1.5	$ 2.6	$ 2.2

Investments - Proceeds from Sales (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Fixed maturity securities, available-for sale	$ 19,363	$ 7,590
Equity securities	$ 17,583	$ 19,981

Mortgage Loans

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Mortgage Loans

The Company has invested in Separately Managed Accounts (“SMA1” and “SMA2”), managed by Arena Investors, LP (“Arena”), which is affiliated with The Westaim Corporation (“Westaim”) who, directly and through Westaim HIIG LP (a limited partnership controlled by Westaim), is the Company’s largest stockholder. As of June 30, 2023 and December 31, 2022, the Company held direct investments in mortgage loans from various creditors through SMA1 and SMA2.

The Company’s mortgage loan portfolios are primarily senior loans on real estate across the U.S. The loans earn interest at a fixed spread above a prime rate, mature in approximately 1 to 2 years from loan origination and the principal amounts of the loans range between 61% to 80% property’s appraised value at the time the loans were made. Mortgage loan participations are carried at fair value as of June 30, 2023 and cost adjusted for unamortized premiums, discounts, and loan fees as of December 31, 2022.

The carrying value of the Company’s mortgage loans as of June 30, 2023 and December 31, 2022 were as follows:


($ in thousands)	June 30, 2023		December 31, 2022
Commercial	$	16,075	$	15,309
Retail	9,201		16,516
Hospitality	4,845		4,915
Multi-family	2,641		5,593
Office	—		3,197
Industrial	—		6,329
	$	32,762	$	51,859

The Company’s gross investment income for mortgage loans for the three months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Commercial	$	555	$	155	$	1,049	$	365
Retail	416		235		1,011		479
Hospitality	132		103		293		148
Office	97		134		203		222
Multi-family	75		199		192		316

Industrial	—		138		—		252
	$	1,275	$	964	$	2,748	$	1,782

The uncollectible amounts on loans, on an individual loan basis, are determined based upon consultations and advice from the Company’s specialized investment manager and consideration of any adverse situations that could affect the borrower’s ability to repay, the estimated value of underlying collateral, and other relevant factors. The Company writes off the uncollectible amount in the period it was determined to be uncollectible. There was no write-off for uncollectible amounts during the three and six months ended June 30, 2023 and 2022.

As of June 30, 2023 and December 31, 2022, approximately $0.0 million and $6.4 million of mortgage loans, respectively, were in the process of foreclosure. The carrying value of the mortgage loans in foreclosure is the lower of cost adjusted for unamortized premiums, discounts, and loan fees or the fair value of the collateral less costs to sell.

Fair Value Measurements - Summary of Subordinated Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Term loan, due December 31, 2024 \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 50,000
Term loan, due December 31, 2024 \| Fair Value
Debt Instrument [Line Items]
Long-term debt	0	50,000
Revolving credit facility \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	50,000	0
Revolving credit facility \| Fair Value
Debt Instrument [Line Items]
Long-term debt	50,000	0
Notes payable \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	50,000	50,000
Notes payable \| Fair Value
Debt Instrument [Line Items]
Long-term debt	50,000	50,000
Junior subordinated interest debentures \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	59,162	59,137
Junior subordinated interest debentures \| Fair Value
Debt Instrument [Line Items]
Long-term debt	59,794	59,794
Unsecured subordinated notes \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	19,488	19,472
Unsecured subordinated notes \| Fair Value
Debt Instrument [Line Items]
Long-term debt	18,278	18,934
Subordinated debt, net of debt issuance costs \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	78,650	78,609
Subordinated debt, net of debt issuance costs \| Fair Value
Debt Instrument [Line Items]
Long-term debt	$ 78,072	$ 78,728

Mortgage Loans (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The carrying value of the Company’s mortgage loans as of June 30, 2023 and December 31, 2022 were as follows:


($ in thousands)	June 30, 2023		December 31, 2022
Commercial	$	16,075	$	15,309
Retail	9,201		16,516
Hospitality	4,845		4,915
Multi-family	2,641		5,593
Office	—		3,197
Industrial	—		6,329
	$	32,762	$	51,859

Investment Income

The following table sets forth the proceeds from sales of available-for-sale fixed maturity securities and equity securities for the six months ended June 30, 2023 and 2022:



($ in thousands)	2023		2022
Fixed maturity securities, available-for sale	$	19,363	$	7,590
Equity securities	17,583		19,981

The following table sets forth the components of net investment income for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Income:
Fixed maturity securities, available-for sale	$	7,583	$	3,967	$	14,259	$	7,191
Fixed maturity securities, held-to-maturity	1,251		1,405		2,254		3,342
Equity securities	1,044		1,001		1,770		1,739
Equity method investments	(2,104)		2,243		(6,768)		11,475
Mortgage loans	1,275		964		2,748		1,782
Indirect loans	(1,929)		3,074		(3,248)		4,732
Short-term investments and cash	3,186		183		4,975		210
Other	29		(2)		9		(18)
Total investment income	10,335		12,835		15,999		30,453
Investment expenses	(1,752)		(2,305)		(2,770)		(4,774)
Net investment income	$	8,583	$	10,530	$	13,229	$	25,679

The Company’s gross investment income for mortgage loans for the three months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Commercial	$	555	$	155	$	1,049	$	365
Retail	416		235		1,011		479
Hospitality	132		103		293		148
Office	97		134		203		222
Multi-family	75		199		192		316

Industrial	—		138		—		252
	$	1,275	$	964	$	2,748	$	1,782

Other Long-Term Investments - Investment in JVN Funds (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Recorded investment balance	$ 79,390	$ 86,789
JVM Funds LLC
Schedule of Equity Method Investments [Line Items]
Underlying equity	20,358	21,565
Difference	832	908
Recorded investment balance	$ 21,190	$ 22,473

Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

The following tables set forth the amortized cost and the fair value by investment category at June 30, 2023 and December 31, 2022:


($ in thousands)	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
June 30, 2023
Fixed maturity securities, available-for-sale:
U.S. government securities	$	45,979	$	—	$	(1,496)	$	—	$	44,483
Corporate securities and miscellaneous	313,127		800		(20,367)		—		293,560
Municipal securities	77,469		88		(6,584)		—		70,973
Residential mortgage-backed securities	214,187		144		(17,385)		—		196,946
Commercial mortgage-backed securities	19,805		—		(1,826)		—		17,979
Asset-backed securities	149,195		121		(5,766)		—		143,550
Total fixed maturity securities, available-for-sale	$	819,762	$	1,153	$	(53,424)	$	—	$	767,491
Fixed maturity securities, held-to-maturity:
Asset-backed securities	$	47,504	$	—	$	(4,585)	$	(332)	$	42,587
Total fixed maturity securities, held-to-maturity	$	47,504	$	—	$	(4,585)	$	(332)	$	42,587


($ in thousands)	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss		Fair Value
December 31, 2022
Fixed maturity securities, available-for-sale:
U.S. government securities	$	50,416	$	1	$	(1,876)	$	48,541
Corporate securities and miscellaneous	255,116		767		(20,754)		235,129
Municipal securities	65,836		24		(8,133)		57,727
Residential mortgage-backed securities	134,844		218		(15,206)		119,856
Commercial mortgage-backed securities	40,129		50		(3,684)		36,495
Asset-backed securities	116,275		91		(6,542)		109,824
Total fixed maturity securities, available-for-sale	$	662,616	$	1,151	$	(56,195)	$	607,572
Fixed maturity securities, held-to-maturity:
Asset-backed securities	$	52,467	$	—	$	(5,696)	$	46,771
Total fixed maturity securities, held-to-maturity	$	52,467	$	—	$	(5,696)	$	46,771

The following table sets forth the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at June 30, 2023:



($ in thousands)	Amortized Cost		Fair Value
Due in less than one year	$	27,565	$	26,980
Due after one year through five years	233,387		221,664
Due after five years through ten years	125,247		114,920
Due after ten years	50,376		45,452
Mortgage-backed securities	233,992		214,925
Asset-backed securities	149,195		143,550
Total	$	819,762	$	767,491

Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Also, changing interest rates, tax considerations or other factors may result in portfolio sales prior to maturity.

The Company’s fixed maturity securities, held-to-maturity, at June 30, 2023 consisted entirely of asset backed securities that were not due at a single maturity date.

The following tables set forth the gross unrealized losses and the corresponding fair values of investments, aggregated by length of time that individual securities had been in a continuous unrealized loss position as of June 30, 2023 and December 31, 2022:


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2023
Fixed maturity securities, available-for-sale:
U.S. government securities	$	18,718	$	(428)	$	25,765	$	(1,068)	$	44,483	$	(1,496)
Corporate securities and miscellaneous	126,693		(3,796)		130,980		(16,571)		257,673		(20,367)
Municipal securities	30,290		(1,079)		34,000		(5,505)		64,290		(6,584)
Residential mortgage-backed securities	111,829		(3,663)		76,276		(13,722)		188,105		(17,385)
Commercial mortgage-backed securities	7,688		(206)		10,291		(1,620)		17,979		(1,826)
Asset-backed securities	72,084		(1,367)		62,502		(4,399)		134,586		(5,766)
Total fixed maturity securities, available-for-sale	367,302		(10,539)		339,814		(42,885)		707,116		(53,424)
Fixed maturity securities, held-to-maturity:
Asset-backed securities	1,845		(22)		40,742		(4,563)		42,587		(4,585)
Total fixed maturity securities, held-to-maturity:	1,845		(22)		40,742		(4,563)		42,587		(4,585)
Total	$	369,147	$	(10,561)	$	380,556	$	(47,448)	$	749,703	$	(58,009)


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2022
Fixed maturity securities, available-for-sale:
U.S. government securities	$	28,966	$	(603)	$	18,577	$	(1,273)	$	47,543	$	(1,876)
Corporate securities and miscellaneous	171,506		(16,063)		34,283		(4,691)		205,789		(20,754)
Municipal securities	51,701		(7,236)		3,689		(897)		55,390		(8,133)
Residential mortgage-backed securities	56,246		(4,152)		52,778		(11,054)		109,024		(15,206)
Commercial mortgage-backed securities	25,836		(1,488)		8,583		(2,196)		34,419		(3,684)
Asset-backed securities	74,684		(3,351)		25,820		(3,191)		100,504		(6,542)
Total fixed maturity securities, available-for-sale	408,939		(32,893)		143,730		(23,302)		552,669		(56,195)
Fixed maturity securities, held-to-maturity:
Asset-backed securities	46,771		(5,696)		—		—		46,771		(5,696)
Total fixed maturity securities, held-to-maturity:	46,771		(5,696)		—		—		46,771		(5,696)
Total	$	455,710	$	(38,589)	$	143,730	$	(23,302)	$	599,440	$	(61,891)

The Company regularly monitors its available-for-sale fixed maturity securities that have fair values less than cost or amortized cost for signs of impairment, an assessment that requires significant management judgment regarding the evidence known. Such judgments could change in the future as more information becomes known, which could negatively impact the amounts reported. Among the factors that management considers for fixed maturity securities are the financial condition of the issuer including receipt of scheduled principal and interest cash flows, and intent to sell, including if it is more likely than not that the Company will be required to sell the investments before recovery.

As of June 30, 2023, the Company had 735 lots of fixed maturity securities in an unrealized loss position. The Company does not have an intent to sell these securities and it is not more likely than not that the Company will be required to sell these securities before maturity or recovery of its cost basis. The Company determined that no credit impairment existed in the gross unrealized holding losses because the credit ratings of these securities were consistent with the credit ratings when purchased and/or at origination, there were no adverse changes in financial condition of the issuer and no adverse credit quality events in underlying assets. The Company attributed the unrealized losses to the changes in interest rates.

The following table sets forth the components of net investment gains (losses) for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Gross realized gains
Fixed maturity securities, available-for sale	$	211	$	94	$	704	$	110
Equity securities	814		1,046		2,041		2,877
Other	—		5		1		36
Total	1,025		1,145		2,746		3,023
Gross realized losses
Fixed maturity securities, available-for sale	(218)		(217)		(456)		(492)
Equity securities	(472)		(783)		(4,761)		(1,438)
Other	(1)		(5)		(1)		(22)
Total	(691)		(1,005)		(5,218)		(1,952)
Net unrealized gains (losses) on investments
Equity securities	5,038		(14,514)		8,783		(19,883)
Mortgage loans	(21)		—		1		—
Net investment gains (losses)	$	5,351	$	(14,374)	$	6,312	$	(18,812)

The following table sets forth the proceeds from sales of available-for-sale fixed maturity securities and equity securities for the six months ended June 30, 2023 and 2022:



($ in thousands)	2023		2022
Fixed maturity securities, available-for sale	$	19,363	$	7,590
Equity securities	17,583		19,981

The following table sets forth the components of net investment income for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Income:
Fixed maturity securities, available-for sale	$	7,583	$	3,967	$	14,259	$	7,191
Fixed maturity securities, held-to-maturity	1,251		1,405		2,254		3,342
Equity securities	1,044		1,001		1,770		1,739
Equity method investments	(2,104)		2,243		(6,768)		11,475
Mortgage loans	1,275		964		2,748		1,782
Indirect loans	(1,929)		3,074		(3,248)		4,732
Short-term investments and cash	3,186		183		4,975		210
Other	29		(2)		9		(18)
Total investment income	10,335		12,835		15,999		30,453
Investment expenses	(1,752)		(2,305)		(2,770)		(4,774)
Net investment income	$	8,583	$	10,530	$	13,229	$	25,679

The following table sets forth the change in net unrealized (losses) gains on the Company’s investment portfolio, net of deferred income taxes, included in other comprehensive (loss) income for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Fixed maturity securities	$	(7,013)	$	(18,692)	$	2,773	$	(39,457)
Deferred income taxes	1,473		3,925		(572)		8,286
Total	$	(5,540)	$	(14,767)	$	2,201	$	(31,171)

Condensed Consolidated Statements of Cash Flows(Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net income	$ 35,008	$ 21,376
Adjustments to reconcile net income to net cash provided by operating activities	73,469	42,640
Net cash provided by operating activities	108,477	64,016
Cash flows from investing activities:
Purchase of fixed maturity securities, available-for-sale	(192,749)	(129,636)
Purchase of illiquid investments	(885)	(2,560)
Purchase of equity securities	(19,192)	(33,899)
Purchase of intangible assets	(50)	0
Proceeds from (investment in) direct and indirect loans	14,032	(14,411)
Purchase of property and equipment	(1,198)	(564)
Sales and maturities of investment securities	60,075	51,891
Distributions from equity method investments	1,079	1,689
Change in short-term investments	(69,512)	45,251
Receivable for securities sold	2,767	2,992
Cash provided by deposit accounting	7,549	3,571
Net cash used in investment activities	(198,084)	(75,676)
Cash flows from financing activities:
Employee share purchases	193	2,150
Draw on revolving line of credit	50,000	0
Repayment of term loan	(50,000)	0
Proceeds from initial public offering	66,262	0
Net cash provided by financing activities	66,455	2,150
Net decrease in cash and cash equivalents and restricted cash	(23,152)	(9,510)
Cash and cash equivalents and restricted cash at beginning of period	125,011	107,274
Cash and cash equivalents and restricted cash at end of period	101,859	97,764
Supplemental disclosure of cash flow information:
Cash paid for interest	5,194	2,366
Cash paid for federal income taxes	$ 4,200	$ 0

Fair Value Measurements - Fair Value, Measure on Recurring Basis, Unobservable Input Reconciliation (Details) - Mortgage Loans - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 42,335	$ 52,842
Total gains for the period recognized in net investment gains (losses)	(21)	22
Issuances	30	892
Settlements	(9,582)	(11,421)
Ending balance	32,762	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$ 3	$ (14)

Underwriting, Acquisition and Insurance Expenses

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Underwriting, Acquisition and Insurance Expenses

The following table sets forth the components of underwriting, acquisition and insurance expenses for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Amortization of policy acquisition costs	$	23,136	$	14,714	$	44,371	$	28,135
Other operating and general expenses	33,547		29,669		63,967		56,783
Total underwriting, acquisition and insurance expenses	$	56,683	$	44,383	$	108,338	$	84,918

Related Party Transactions - Resinsurance Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Ceded premiums earned	$ 137,628	$ 110,060	$ 256,586	$ 217,566
Reinsurance recoverable for paid and unpaid claims	$ 582,922		$ 582,922		$ 581,359
Everest Reinsurance Co \| Reinsurance agreement \| Affiliated entity
Related Party Transaction [Line Items]
Ceded premiums earned		$ 22,600		$ 42,200
Reinsurance recoverable for paid and unpaid claims					$ 177,500

Stock Based Compensation - Schedule of Nonvested Share Activity (Details) - Restricted Stock Awards And Units - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Weighted-Average Grant-Date Fair Value
Non-vested, beginning period (in dollars per share)	$ 12.55	$ 13.23
Granted (in dollars per share)	16.00	13.16
Vested (in dollars per share)	12.91	15.87
Forfeited (in dollars per share)	15.07	12.69
Non-vested, ending period (in dollars per share)	$ 15.08	$ 12.54
Stock and Stock Units
Non-vested, beginning period (in shares)	419,896	375,643
Granted (in shares)	1,092,554	192,411
Vested (in shares)	(32,496)	(113,625)
Forfeited (in shares)	(25,176)	(1,950)
Non-vested, ending period (in shares)	1,454,778	452,479

Related Party Transactions - RISCOM Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2016	Dec. 31, 2022
Related Party Transaction [Line Items]
Net earned premium	$ 194,347	$ 146,076	$ 377,178	$ 287,803
Premiums receivable, net	266,345		266,345			$ 139,215
Affiliated entity \| Agency agreement \| RISCOM
Related Party Transaction [Line Items]
Agreement, ownership interest					20.00%
Net earned premium	19,916	22,508	42,101	43,526
Commissions	6,149	$ 5,759	13,002	$ 13,107
Premiums receivable, net	$ 17,000		$ 17,000			$ 9,900

Mortgage Loans - Portfolios (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	$ 32,762		$ 32,762		$ 51,859
Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	1,275	$ 964	2,748	$ 1,782
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	9,201		9,201		16,516
Retail \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	416	235	1,011	479
Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	0		0		6,329
Industrial \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	0	138	0	252
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	16,075		16,075		15,309
Commercial \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	555	155	1,049	365
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	2,641		2,641		5,593
Multi-family \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	75	199	192	316
Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	0		0		3,197
Office \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	97	134	203	222
Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans	4,845		4,845		$ 4,915
Hospitality \| Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total investment income	$ 132	$ 103	$ 293	$ 148

Reinsurance - Reinsurance Recoverables and Ceded Premiums (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Insurance [Abstract]
Ceded unpaid losses and LAE	$ 441,227		$ 435,986	$ 397,567	$ 381,338
Ceded paid losses and LAE	115,672		107,228
Loss portfolio transfer	28,318		38,145
Allowance for credit losses	(2,295)	$ (2,295)	0
Reinsurance recoverables	582,922		581,359
Ceded unearned premium	$ 267,672		$ 157,645

Other Long-Term Investments - Narrative (Details)	6 Months Ended
Other Long-Term Investments - Narrative (Details)	Jun. 30, 2023
RISCOM
Schedule of Equity Method Investments [Line Items]
Useful life	15 years

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders’ equity (accumulated deficit)	$ 522,678	$ 507,146	$ 421,662	$ 419,607	$ 428,619	$ 426,080
Period of adoption, adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders’ equity (accumulated deficit)			$ (2,276)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
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-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Earnings Per Share - Schedule of Earnings Per Share, Excluded from Basic Earnings (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,054,510	1,143,412	1,054,510	1,143,412
Common shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,054,510	83,811	1,054,510	83,811
Preferred shares, if converted
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	1,059,601	0	1,059,601

Commitment and Contingencies	6 Months Ended
Commitment and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is named as a defendant in various legal actions arising from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating the losses and loss adjustment expense reserves. Also, from time to time, the Company is a defendant in various legal actions that relate to bad faith claims, disputes with third parties or that involve alleged errors and omissions. The Company records accruals for these items to the extent the losses are probable and reasonably estimable. Although the ultimate outcome of these matters cannot be determined at this time, based on present information, the availability of insurance coverage and advice received from outside legal counsel, the Company believes the resolution of any such matters will not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Indemnification In conjunction with the sale of business assets and subsidiaries, the Company has provided indemnifications to certain of the buyers. Certain indemnifications cover typical representations and warranties related to the responsibilities to perform under the sales contracts. The amount of potential exposure covered by the indemnifications is difficult to determine because the indemnifications cover a variety of matters, operations and scenarios. Certain of these indemnifications have no time limit. At this time, the Company does not have reason to believe any such significant claims exist.

Allowance for Credit Losses

6 Months Ended

Jun. 30, 2023

Credit Loss [Abstract]

Allowance for Credit Losses

Premiums Receivable

The following table sets forth the changes in the allowance for expected credit losses on premiums receivable for the six months ended June 30, 2023.


($ in thousands)	Allowance for Credit Losses
Balance at December 31, 2022	$	629
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023	—
Current period change for estimated uncollectible premiums	409
Write-offs of uncollectible premiums receivable	(56)
Balance at March 31, 2023	$	982
Current period change for estimated uncollectible premiums	37
Write-offs of uncollectible premiums receivable	(96)
Recoveries of amounts previously written off	18
Balance at June 30, 2023	$	941

Reinsurance Recoverables

The Company analyzes the credit risk associated with its reinsurance recoverables by monitoring the financial strength rating of its reinsurers from A.M. Best, a widely recognized rating agency with an exclusive insurance industry focus. The Company assesses the financial strength rating annually and updated throughout the year as A.M. Best provides updates on ratings and outlooks. The Company assesses the adequacy of various forms of credit enhancements such as reinsurance payables, letters of credit and funds held. A summary of the Company’s reinsurance recoverables net of credit enhancements by A.M. Best rating as of June 30, 2023 was as follows:


A.M. Best Rating	June 30, 2023
A- and above	98.6	%
B++ to B+	1.4

Not rated	—

The Company considers reinsurance balances to be past due when they are 90 days past due. The following table sets forth the changes in the allowance for estimated uncollectible reinsurance for the six months ended June 30, 2023:


($ in thousands)	Allowance for Credit Losses
Balance at December 31, 2022	$	—
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023	2,295
Current period change for estimated uncollectible reinsurance	—
Write-offs of uncollectible reinsurance recoverables	—
Balance at March 31, 2023	$	2,295
Current period change for estimated uncollectible reinsurance	—
Write-offs of uncollectible reinsurance recoverables	—
Balance at June 30, 2023	$	2,295

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Net earned premiums	$ 194,347	$ 146,076	$ 377,178	$ 287,803
Commission and fee income	2,240	2,060	3,732	2,290
Net investment income	8,583	10,530	13,229	25,679
Net investment gains (losses)	5,351	(14,374)	6,312	(18,812)
Total revenues	210,521	144,292	400,451	296,960
Expenses:
Losses and loss adjustment expenses	124,405	91,801	239,305	181,790
Underwriting, acquisition and insurance expenses	56,683	44,383	108,338	84,918
Interest expense	2,466	1,365	4,618	2,542
Amortization expense	486	386	873	773
Other expenses	1,465	0	2,579	0
Total expenses	185,505	137,935	355,713	270,023
Income before income taxes	25,016	6,357	44,738	26,937
Income tax expense	5,564	1,292	9,730	5,561
Net income	19,452	5,065	35,008	21,376
Net income attributable to participating securities	0	2,437	1,402	10,283
Net income attributable to common stockholders	19,452	2,628	33,606	11,093
Comprehensive income (loss):
Net income	19,452	5,065	35,008	21,376
Unrealized gains and losses on investments:
Net change in unrealized (losses) gains on investments, net of tax	(4,375)	(14,797)	3,413	(31,502)
Reclassification adjustment for (losses) gains on securities no longer held, net of tax	(1,165)	30	(1,212)	331
Total other comprehensive (loss) income	(5,540)	(14,767)	2,201	(31,171)
Comprehensive income (loss)	$ 13,912	$ (9,702)	$ 37,209	$ (9,795)
Per share data:
Basic earnings per share (in dollar per share)	$ 0.53	$ 0.16	$ 0.97	$ 0.67
Diluted earnings per share (in dollar per share)	$ 0.51	$ 0.16	$ 0.93	$ 0.66
Weighted-average common shares outstanding
Basic (in shares)	36,603,779	16,449,810	34,746,874	16,449,810
Diluted (in shares)	38,143,585	32,660,316	37,503,914	32,600,247

Investments - Debt Securities, Trading, and Equity Securities, FV-NI (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	$ 819,762	$ 662,616
Gross Unrealized Gains	1,153	1,151
Gross Unrealized Losses	(53,424)	(56,195)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	767,491	607,572
Fixed maturity securities, held-to-maturity:
Gross Amortized Cost	47,504	52,467
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(4,585)	(5,696)
Allowance for Credit Losses	(332)
Total fixed maturity securities, held-to-maturity	42,587	46,771
U.S. government securities
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	45,979	50,416
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(1,496)	(1,876)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	44,483	48,541
Corporate securities and miscellaneous
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	313,127	255,116
Gross Unrealized Gains	800	767
Gross Unrealized Losses	(20,367)	(20,754)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	293,560	235,129
Municipal securities
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	77,469	65,836
Gross Unrealized Gains	88	24
Gross Unrealized Losses	(6,584)	(8,133)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	70,973	57,727
Residential mortgage-backed securities
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	214,187	134,844
Gross Unrealized Gains	144	218
Gross Unrealized Losses	(17,385)	(15,206)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	196,946	119,856
Commercial mortgage-backed securities
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	19,805	40,129
Gross Unrealized Gains	0	50
Gross Unrealized Losses	(1,826)	(3,684)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	17,979	36,495
Asset-backed securities
Fixed maturity securities, available-for-sale:
Gross Amortized Cost	149,195	116,275
Gross Unrealized Gains	121	91
Gross Unrealized Losses	(5,766)	(6,542)
Allowance for Credit Losses	0
Total fixed maturity securities, available-for-sale	143,550	109,824
Fixed maturity securities, held-to-maturity:
Gross Amortized Cost	47,504	52,467
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(4,585)	(5,696)
Allowance for Credit Losses	(332)
Total fixed maturity securities, held-to-maturity	$ 42,587	$ 46,771

Stock Based Compensation - Summary of Options Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Stock
Outstanding, beginning of period (in shares)	0
Granted (in shares)	759,990
Exercised (in shares)	0
Forfeited (in shares)	0
Outstanding, ending of period (in shares)	759,990
Weighted-Average Exercise Price
Granted, weighted average exercise price (in usd per share) \| $ / shares	$ 15.00
Outstanding, weighted average exercise price (in usd per share) \| $ / shares

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 19,452	$ 15,556	$ 5,065	$ 16,311	$ 35,008	$ 21,376

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (f)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
-Subparagraph (b)(2)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
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-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section S99
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-Subparagraph (SX 210.6-09(1)(d))
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-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
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Reference 31: http://www.xbrl.org/2003/role/disclosureRef
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Reference 32: http://www.xbrl.org/2003/role/exampleRef
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Reference 34: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
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Reference 37: http://www.xbrl.org/2003/role/disclosureRef
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Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Investment Income [Line Items]
Total investment income	$ 10,335	$ 12,835	$ 15,999	$ 30,453
Investment expenses	(1,752)	(2,305)	(2,770)	(4,774)
Net investment income	8,583	10,530	13,229	25,679
Fixed maturity securities, available-for sale
Net Investment Income [Line Items]
Total investment income	7,583	3,967	14,259	7,191
Fixed maturity securities, held-to-maturity
Net Investment Income [Line Items]
Total investment income	1,251	1,405	2,254	3,342
Equity securities
Net Investment Income [Line Items]
Total investment income	1,044	1,001	1,770	1,739
Equity method investments
Net Investment Income [Line Items]
Total investment income	(2,104)	2,243	(6,768)	11,475
Mortgage loans
Net Investment Income [Line Items]
Total investment income	1,275	964	2,748	1,782
Indirect loans
Net Investment Income [Line Items]
Total investment income	(1,929)	3,074	(3,248)	4,732
Short-term investments and cash
Net Investment Income [Line Items]
Total investment income	3,186	183	4,975	210
Other
Net Investment Income [Line Items]
Total investment income	$ 29	$ (2)	$ 9	$ (18)

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth a reconciliation of the numerator and denominator of basic and diluted earnings per share computations contained in the period-ended consolidated financial statements for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands, except for share and per share amounts)	2023		2022		2023		2022
Numerator
Net income	$	19,452	$	5,065	$	35,008	$	21,376
Less: Undistributed income allocated to participating securities	—		(2,437)		(1,402)		(10,283)
Net income attributable to common stockholders (numerator for basic earnings per share)	19,452		2,628		33,606		11,093
Add back: Undistributed income allocated to participating securities	—		2,437		1,402		10,283
Net income (numerator for diluted earnings per share under the two-class method)	$	19,452	$	5,065	$	35,008	$	21,376
Denominator
Basic weighted-average common shares	36,603,779		16,449,810		34,746,874		16,449,810

Preferred shares (if converted method)	—		15,249,373		1,449,343		15,249,373
Contingently issuable instruments (treasury stock method)	763,590		524,165		740,396		527,525
Market condition awards (contingently issuable)	85,979		112,454		73,033		99,393
Performance awards (contingently issuable)	73,087		58,184		41,348		49,375
Restricted stock units (treasury stock method)	525,999		266,330		397,950		224,771
Options (treasury stock method)	91,151		—		54,970		—
Diluted weighted-average common share equivalents	38,143,585		32,660,316		37,503,914		32,600,247
Basic earnings per share	$	0.53	$	0.16	$	0.97	$	0.67
Diluted earnings per share	$	0.51	$	0.16	$	0.93	$	0.66

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table sets forth the weighted-average instruments that were

excluded from the calculation of diluted weighted-average common share equivalents during the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022

Contingently issuable instruments (treasury stock method)	—	58	—	—
Market condition awards (contingently issuable)	—	—	25,774	—
Performance awards (contingently issuable)	1,014	—	68,585	—
Restricted stock units (treasury stock method)	922	—	237,125	—
Options (treasury stock method)	315	—	357,059	—

The following table sets forth common share equivalents of contingently issuable instruments (in shares) that were excluded from basic earnings per share for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
Common shares	1,054,510	83,811	1,054,510	83,811
Preferred shares, if converted	—	1,059,601	—	1,059,601
Total	1,054,510	1,143,412	1,054,510	1,143,412

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Related Party Transactions

Net earned premium and gross commission expense related to these agreements for the three and six months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Net earned premium	$	19,916	$	22,508	$	42,101	$	43,526
Commissions	6,149		5,759		13,002		13,107

Other Long-Term Investments (Tables)

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Carrying Value of Equity Method Investments

The carrying value of the Company’s equity method investments as of June 30, 2023 and December 31, 2022 were as follows:


($ in thousands)	June 30, 2023		December 31, 2022
Arena Special Opportunities Fund, LP units	$	41,364	$	44,504
JVM Funds LLC units	21,190		22,473
Arena SOP LP units	5,956		8,734
RISCOM	4,342		4,037
Hudson Ventures Fund 2 LP units	3,623		3,551
Dowling Capital Partners LP units	2,133		1,965
Universa Black Swan LP units	421		1,325
Brewer Lane Ventures Fund II LP units	361		200
	$	79,390	$	86,789

The following table sets forth the components of net investment (loss) income from equity method investments for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Dowling Capital Partners LP units	$	338	$	41	$	605	$	555
RISCOM	224		808		305		826
Brewer Lane Ventures Fund II LP	(29)		—		(29)		—
Hudson Ventures Fund II LP units	(158)		332		(413)		396
JVM Funds LLC	(221)		(955)		(641)		(768)
Universa Black Swan LP units	(348)		(1,057)		(904)		(1,550)
Arena SOP LP units	(727)		1,631		(2,778)		7,771
Arena Special Opportunities Fund, LP units	(1,183)		1,443		(2,913)		4,245
	$	(2,104)	$	2,243	$	(6,768)	$	11,475

The following table sets forth the unfunded commitment of equity method investments as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Brewer Lane Ventures Fund II LP units	$	4,610	$	4,800
Hudson Ventures Fund 2 LP units	1,311		1,796
Dowling Capital Partners LP units	386		386
	$	6,307	$	6,982

The following table sets forth the Company’s recorded investment in RISCOM compared to its share of underlying equity as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Investment in RISCOM:
Underlying equity	$	2,719	$	2,292
Difference	1,623		1,745
Recorded investment balance	$	4,342	$	4,037

The following table sets forth the Company’s recorded investment in JVM Funds LLC compared to its share of underlying equity as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Investment in JVM Funds LLC:
Underlying equity	$	20,358	$	21,565
Difference	832		908
Recorded investment balance	$	21,190	$	22,473

As of June 30, 2023 and December 31, 2022, the Company held indirect investments in collateralized loans and loan collateral through SMA1 and SMA2.

The carrying value and unfunded commitment of the SMA1 and SMA2 as of June 30, 2023 and December 31, 2022 were as follows:


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying Value		Unfunded Commitment		Carrying Value		Unfunded Commitment
SMA1	$	32,867	$	—	$	36,426	$	—
SMA2	8,779		—		2,010		—
Investment in indirect loans and loan collateral	$	41,646	$	—	$	38,436	$	—

Allowance for Credit Losses - Premium Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Premium Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 982	$ 629
Current period change for estimated uncollectible premiums	37	409
Write-offs of uncollectible premiums receivable	(96)	(56)
Recoveries of amounts previously written off	18
Ending balance	$ 941	$ 982
Period of adoption, adjustment
Premium Receivable, Allowance for Credit Loss [Roll Forward]
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023			$ 0

Investments (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Trading, and Equity Securities, FV-NI

The following tables set forth the amortized cost and the fair value by investment category at June 30, 2023 and December 31, 2022:


($ in thousands)	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
June 30, 2023
Fixed maturity securities, available-for-sale:
U.S. government securities	$	45,979	$	—	$	(1,496)	$	—	$	44,483
Corporate securities and miscellaneous	313,127		800		(20,367)		—		293,560
Municipal securities	77,469		88		(6,584)		—		70,973
Residential mortgage-backed securities	214,187		144		(17,385)		—		196,946
Commercial mortgage-backed securities	19,805		—		(1,826)		—		17,979
Asset-backed securities	149,195		121		(5,766)		—		143,550
Total fixed maturity securities, available-for-sale	$	819,762	$	1,153	$	(53,424)	$	—	$	767,491
Fixed maturity securities, held-to-maturity:
Asset-backed securities	$	47,504	$	—	$	(4,585)	$	(332)	$	42,587
Total fixed maturity securities, held-to-maturity	$	47,504	$	—	$	(4,585)	$	(332)	$	42,587


($ in thousands)	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss		Fair Value
December 31, 2022
Fixed maturity securities, available-for-sale:
U.S. government securities	$	50,416	$	1	$	(1,876)	$	48,541
Corporate securities and miscellaneous	255,116		767		(20,754)		235,129
Municipal securities	65,836		24		(8,133)		57,727
Residential mortgage-backed securities	134,844		218		(15,206)		119,856
Commercial mortgage-backed securities	40,129		50		(3,684)		36,495
Asset-backed securities	116,275		91		(6,542)		109,824
Total fixed maturity securities, available-for-sale	$	662,616	$	1,151	$	(56,195)	$	607,572
Fixed maturity securities, held-to-maturity:
Asset-backed securities	$	52,467	$	—	$	(5,696)	$	46,771
Total fixed maturity securities, held-to-maturity	$	52,467	$	—	$	(5,696)	$	46,771

Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and fair value of available-for-sale fixed maturity securities by contractual maturity at June 30, 2023:



($ in thousands)	Amortized Cost		Fair Value
Due in less than one year	$	27,565	$	26,980
Due after one year through five years	233,387		221,664
Due after five years through ten years	125,247		114,920
Due after ten years	50,376		45,452
Mortgage-backed securities	233,992		214,925
Asset-backed securities	149,195		143,550
Total	$	819,762	$	767,491

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2023
Fixed maturity securities, available-for-sale:
U.S. government securities	$	18,718	$	(428)	$	25,765	$	(1,068)	$	44,483	$	(1,496)
Corporate securities and miscellaneous	126,693		(3,796)		130,980		(16,571)		257,673		(20,367)
Municipal securities	30,290		(1,079)		34,000		(5,505)		64,290		(6,584)
Residential mortgage-backed securities	111,829		(3,663)		76,276		(13,722)		188,105		(17,385)
Commercial mortgage-backed securities	7,688		(206)		10,291		(1,620)		17,979		(1,826)
Asset-backed securities	72,084		(1,367)		62,502		(4,399)		134,586		(5,766)
Total fixed maturity securities, available-for-sale	367,302		(10,539)		339,814		(42,885)		707,116		(53,424)
Fixed maturity securities, held-to-maturity:
Asset-backed securities	1,845		(22)		40,742		(4,563)		42,587		(4,585)
Total fixed maturity securities, held-to-maturity:	1,845		(22)		40,742		(4,563)		42,587		(4,585)
Total	$	369,147	$	(10,561)	$	380,556	$	(47,448)	$	749,703	$	(58,009)


	Less than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2022
Fixed maturity securities, available-for-sale:
U.S. government securities	$	28,966	$	(603)	$	18,577	$	(1,273)	$	47,543	$	(1,876)
Corporate securities and miscellaneous	171,506		(16,063)		34,283		(4,691)		205,789		(20,754)
Municipal securities	51,701		(7,236)		3,689		(897)		55,390		(8,133)
Residential mortgage-backed securities	56,246		(4,152)		52,778		(11,054)		109,024		(15,206)
Commercial mortgage-backed securities	25,836		(1,488)		8,583		(2,196)		34,419		(3,684)
Asset-backed securities	74,684		(3,351)		25,820		(3,191)		100,504		(6,542)
Total fixed maturity securities, available-for-sale	408,939		(32,893)		143,730		(23,302)		552,669		(56,195)
Fixed maturity securities, held-to-maturity:
Asset-backed securities	46,771		(5,696)		—		—		46,771		(5,696)
Total fixed maturity securities, held-to-maturity:	46,771		(5,696)		—		—		46,771		(5,696)
Total	$	455,710	$	(38,589)	$	143,730	$	(23,302)	$	599,440	$	(61,891)

Gain (Loss) on Securities

The following table sets forth the components of net investment gains (losses) for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Gross realized gains
Fixed maturity securities, available-for sale	$	211	$	94	$	704	$	110
Equity securities	814		1,046		2,041		2,877
Other	—		5		1		36
Total	1,025		1,145		2,746		3,023
Gross realized losses
Fixed maturity securities, available-for sale	(218)		(217)		(456)		(492)
Equity securities	(472)		(783)		(4,761)		(1,438)
Other	(1)		(5)		(1)		(22)
Total	(691)		(1,005)		(5,218)		(1,952)
Net unrealized gains (losses) on investments
Equity securities	5,038		(14,514)		8,783		(19,883)
Mortgage loans	(21)		—		1		—
Net investment gains (losses)	$	5,351	$	(14,374)	$	6,312	$	(18,812)

Investment Income

The following table sets forth the proceeds from sales of available-for-sale fixed maturity securities and equity securities for the six months ended June 30, 2023 and 2022:



($ in thousands)	2023		2022
Fixed maturity securities, available-for sale	$	19,363	$	7,590
Equity securities	17,583		19,981

The following table sets forth the components of net investment income for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Income:
Fixed maturity securities, available-for sale	$	7,583	$	3,967	$	14,259	$	7,191
Fixed maturity securities, held-to-maturity	1,251		1,405		2,254		3,342
Equity securities	1,044		1,001		1,770		1,739
Equity method investments	(2,104)		2,243		(6,768)		11,475
Mortgage loans	1,275		964		2,748		1,782
Indirect loans	(1,929)		3,074		(3,248)		4,732
Short-term investments and cash	3,186		183		4,975		210
Other	29		(2)		9		(18)
Total investment income	10,335		12,835		15,999		30,453
Investment expenses	(1,752)		(2,305)		(2,770)		(4,774)
Net investment income	$	8,583	$	10,530	$	13,229	$	25,679

The Company’s gross investment income for mortgage loans for the three months ended June 30, 2023 and 2022 were as follows:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Commercial	$	555	$	155	$	1,049	$	365
Retail	416		235		1,011		479
Hospitality	132		103		293		148
Office	97		134		203		222
Multi-family	75		199		192		316

Industrial	—		138		—		252
	$	1,275	$	964	$	2,748	$	1,782

Schedule of Accumulated Other Comprehensive Income (Loss)


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Fixed maturity securities	$	(7,013)	$	(18,692)	$	2,773	$	(39,457)
Deferred income taxes	1,473		3,925		(572)		8,286
Total	$	(5,540)	$	(14,767)	$	2,201	$	(31,171)

Commission and Fee Income (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table sets forth the Company’s disaggregated revenues from contracts with customers for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
SUA commission revenue	$	1,385	$	1,361	$	2,242	$	1,503
SUA fee income	805		664		1,261		505
Other	50		35		229		282
Total commission and fee income	$	2,240	$	2,060	$	3,732	$	2,290

Reinsurance - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Insurance [Abstract]
Market value of trust funds	$ 134.2
Deposit asset	$ 34.3	$ 41.8

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $819,762 and $662,616, respectively)	$ 767,491	$ 607,572
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $332 as of June 30, 2023)	47,172	52,467
Equity securities, at fair value	127,861	120,169
Mortgage loans (at fair value as of June 30, 2023; at amortized cost as of December 31, 2022)	32,762	51,859
Other long-term investments	124,845	129,142
Short-term investments, at fair value	190,670	121,158
Total investments	1,290,801	1,082,367
Cash and cash equivalents	67,506	45,438
Restricted cash	34,353	79,573
Premiums receivable, net	266,345	139,215
Reinsurance recoverables, net	582,922	581,359
Ceded unearned premium	267,672	157,645
Deferred policy acquisition costs	93,364	68,938
Deferred income taxes	32,017	36,188
Goodwill and intangible assets, net	89,181	89,870
Other assets	83,011	82,846
Total assets	2,807,172	2,363,439
Liabilities:
Reserves for losses and loss adjustment expenses	1,224,127	1,141,757
Unearned premiums	591,237	442,509
Deferred ceding commission	54,191	29,849
Reinsurance and premium payables	198,948	113,696
Funds held for others	41,152	36,858
Accounts payable and accrued liabilities	46,189	48,499
Notes payable	50,000	50,000
Subordinated debt, net of debt issuance costs	78,650	78,609
Total liabilities	2,284,494	1,941,777
Stockholders’ equity
Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000 shares authorized, 0 and 1,969,660 shares issued and outstanding, respectively	0	20
Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares authorized, 37,674,063 and 16,832,955 shares issued, respectively	377	168
Treasury stock, $0.01 par value, 0 and 233,289 shares, respectively	0	(2)
Additional paid-in capital	642,988	577,289
Stock notes receivable	(6,718)	(6,911)
Accumulated other comprehensive loss	(41,284)	(43,485)
Accumulated deficit	(72,685)	(105,417)
Total stockholders’ equity	522,678	421,662
Total liabilities and stockholders’ equity	$ 2,807,172	$ 2,363,439

Notes Payable	6 Months Ended
Notes Payable	Jun. 30, 2023
Debt Disclosure [Abstract]
Notes Payable	Notes Payable The Company entered into an agreement to obtain a new unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of participating banks during the six months ended June 30, 2023. The Revolving Credit Facility provided the Company with up to a $150.0 million revolving credit facility, with an accordion that can increase the capacity by $50.0 million, and a letter of credit sub-facility of up to $30.0 million. During the six months ended June 30, 2023, the Company drew $50.0 million on the Revolving Credit Facility and used the proceeds to pay off the principal on its existing term loan. The Company subsequently terminated the existing term loan and revolving line of credit. Interest on the Revolving Credit Facility is payable quarterly. The interest rate on the Revolving Credit Facility is the Secured Overnight Financing Rate (“SOFR”) plus a margin of between 150 and 190 basis points based on the ratio of debt to total capital and a credit spread adjustment of 10 basis points. At June 30, 2023, the six-month SOFR on the Revolving Credit Facility was 4.66%, plus a margin of 1.60%. The Company was subject to covenants on the Revolving Credit Facility based on minimum net worth, maximum debt to capital ratio, minimum A.M. Best Rating and minimum liquidity. As of June 30, 2023, the Company was in compliance with all covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Other Long-Term Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule of Equity Method Investments [Line Items]
Net investment income	$ 8,583	$ 10,530	$ 13,229	$ 25,679
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(2,104)	2,243	(6,768)	11,475
Dowling Capital Partners LP units \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	338	41	605	555
RISCOM \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	224	808	305	826
Brewer Lane Ventures Fund II LP \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(29)	0	(29)	0
Hudson Ventures Fund II LP units \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(158)	332	(413)	396
JVM Funds LLC \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(221)	(955)	(641)	(768)
Universa Black Swan LP units \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(348)	(1,057)	(904)	(1,550)
Arena SOP LP units \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	(727)	1,631	(2,778)	7,771
Arena Special Opportunities Fund, LP units \| Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Net investment income	$ (1,183)	$ 1,443	$ (2,913)	$ 4,245

Notes Payable - Narrative (Details) - Revolving credit facility - Line of Credit	6 Months Ended
	Jun. 30, 2023 USD ($)
Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Accordion feature, increase limit	50,000,000
Proceeds from long-term debt	50,000,000
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000
Secured Overnight Financing Rate (SOFR) \| Revolving credit facility
Debt Instrument [Line Items]
Basis spread on variable rate	1.60%
Debt instrument, variable rate	4.66%
Secured Overnight Financing Rate (SOFR) \| Revolving credit facility \| Low
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Secured Overnight Financing Rate (SOFR) \| Revolving credit facility \| High
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
Credit Spread Adjustment \| Revolving credit facility \| Low
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%

Stock Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

On September 23, 2022, the Compensation Committee of the Company’s Board of Directors (“Compensation Committee”) approved the Company’s 2022 Long-Term Incentive Plan (the “2022 Plan”), which became effective on January 12, 2023. The 2022 Plan provides for the granting of restricted stock, restricted stock units, performance stock units, stock options as well as cash-based performance awards, to select employees and non-employee directors of the Company. The 2022 Plan stated that 3,200,516 shares of common stock were available for issuance.

On September 23, 2022, the Compensation Committee approved the Company’s 2022 Employee Stock Purchase Plan (the “ESPP”), which became effective on May 15, 2023. Under the ESPP, employees are granted options to purchase shares at the lower of 85% of the fair market value at the time of grant or 85% of the fair market value at the time of exercise through payroll withholding. Options to purchase shares are granted twice yearly or on or about June 1 and December 1, and are exercisable on or about the succeeding November 30 and May 31, respectively. The ESPP stated that 376,531 shares of common stock were available for issuance.

In December 2020, the Compensation Committee approved a Long Term Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the granting of restricted stock, restricted stock units and performance stock units (collectively “restricted stock units” or “stock units”), as well as cash-based performance awards, to select employees and non-employee directors of the Company.

The Compensation Committee granted 1,092,554 and 192,411 restricted stock and restricted stock units during the six months ended June 30, 2023 and 2022, under the 2022 Plan and 2021 Plans, respectively. Members of the Board of Directors were granted 19,284 and 15,196 restricted stock during the six months ended June 30, 2023 and 2022, respectively, with a service period of 1 year. The fair value of restricted stock and restricted stock units under the 2022 Plan for awards granted at the time of the Company’s IPO were granted at the IPO price of $15.00 per share. The fair value of subsequent grants were equal to the closing stock price on the date the restricted stock units were granted.

The Compensation Committee granted 759,990 stock options during the six months ended June 30, 2023. The grant date fair value of the options under the 2022 Plan was determined using the Black-Scholes model where the term was the contractual term of 10 years less the weighted average service period. The volatility was determined based on the historical volatility of comparable publicly traded insurance companies.

The grant date fair value of options under the ESPP was determined using the Black-Scholes model where the term was the length of time between the grant date and the date the options are exercisable of 6 months. The volatility was determined based on the historical volatility of comparable publicly traded insurance companies.

The restricted stock and restricted stock units granted to employees and the Board of Directors during the six months ended June 30, 2023 and 2022 were valued at approximately $17.5 million and $2.5 million, respectively, based on the grant date fair value. The stock options granted to employees during the six months ended June 30, 2023 were valued at approximately $4.4 million based on the grant date fair value.

The following table sets forth the Company’s equity awards, target payout ranges and authorized target restricted stock and stock units for the six months ended June 30, 2023 and 2022:

Award
Payout Range

Requisite
Service Period

Target
Stock and Stock Units

Six months ended June 30, 2023

Market condition awards

0%–150%

3 years

37,622

Performance condition awards

0%–150%

3 years

92,904

Service condition awards

N/A

1–4 years

962,028

Stock options

N/A

3–4 years

759,990

1,852,544

Six months ended June 30, 2022

Market condition awards

0%–150%

3 years

28,495

Performance condition awards

0%–150%

3 years

26,210

Service condition awards

N/A

1–3 years

137,706

192,411

The following table sets forth option activity for the six months ended June 30, 2023:


	Weighted-Average Exercise Price		Stock
Outstanding at January 1, 2023			—
Granted	$	15.00	759,990
Exercised			—
Forfeited			—
Outstanding at June 30, 2023			759,990

The intrinsic value of each option is determined based on the difference between the fair value of the underlying share and the exercise price of the underlying option. The aggregate intrinsic value of options outstanding at June 30, 2023 was $7.9 million. The weighted-average remaining contractual life of the options outstanding at June 30, 2023 was 9.5 years.

The following table sets forth the Company’s restricted stock and restricted stock units activity for the six months ended June 30, 2023 and 2022:


	Weighted-Average Grant-Date Fair Value		Stock and Stock Units
Non-vested at January 1, 2023	$	12.55	419,896
Granted	16.00		1,092,554
Vested	12.91		(32,496)
Forfeited	15.07		(25,176)
Non-vested at June 30, 2023	$	15.08	1,454,778

Non-vested at January 1, 2022	$	13.23	375,643
Granted	13.16		192,411
Vested	15.87		(113,625)
Forfeited	12.69		(1,950)
Non-vested at June 30, 2022	$	12.54	452,479

The total fair value of shares vested at June 30, 2023 and 2022 were $0.8 million and $1.8 million, respectively.

As of June 30, 2023 the total unrecognized compensation cost related to non-vested, share-based compensation awards was $20.3 million and the weighted average period over which that cost is expected to be recognized is 1.9 years. For the three and six months ended June 30, 2023, the Company recognized $2.0 million and $3.9 million of stock based compensation expense, respectively. For the three and six months ended June 30, 2022, the Company recognized $0.7 million and $1.2 million, of stock based compensation expense, respectively.

Other Long-Term Investments - Schedule of Indirect Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 79,390	$ 86,789
Unfunded Commitment	6,307	6,982
Investment in indirect loans and loan collateral
Schedule of Equity Method Investments [Line Items]
Carrying Value	41,646	38,436
Unfunded Commitment	0	0
Investment in indirect loans and loan collateral \| SMA1
Schedule of Equity Method Investments [Line Items]
Carrying Value	32,867	36,426
Unfunded Commitment	0	0
Investment in indirect loans and loan collateral \| SMA2
Schedule of Equity Method Investments [Line Items]
Carrying Value	8,779	2,010
Unfunded Commitment	$ 0	$ 0

Investments - Net Investment Losses (Gains) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Gross realized gains
Fixed maturity securities, available-for sale	$ 211	$ 94	$ 704	$ 110
Equity securities	814	1,046	2,041	2,877
Other	0	5	1	36
Total	1,025	1,145	2,746	3,023
Gross realized losses
Fixed maturity securities, available-for sale	(218)	(217)	(456)	(492)
Equity securities	(472)	(783)	(4,761)	(1,438)
Other	(1)	(5)	(1)	(22)
Total	(691)	(1,005)	(5,218)	(1,952)
Net unrealized gains (losses) on investments
Equity securities	5,038	(14,514)	8,783	(19,883)
Mortgage loans	(21)	0	1	0
Net investment gains (losses)	$ 5,351	$ (14,374)	$ 6,312	$ (18,812)

Stock Based Compensation - Summary of Equity Awards (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jan. 12, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common shares (in shares)			3,200,516
Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common shares (in shares)	1,852,544	192,411
Market condition awards \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	3 years	3 years
Authorized target common shares (in shares)	37,622	28,495
Market condition awards \| Low \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award Payout Range	0.00%	0.00%
Market condition awards \| High \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award Payout Range	150.00%	150.00%
Performance condition awards \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	3 years	3 years
Authorized target common shares (in shares)	92,904	26,210
Performance condition awards \| Low \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award Payout Range	0.00%	0.00%
Performance condition awards \| High \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award Payout Range	150.00%	150.00%
Service condition awards \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common shares (in shares)	962,028	137,706
Service condition awards \| Low \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	1 year	1 year
Service condition awards \| High \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	4 years	3 years
Options (treasury stock method) \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common shares (in shares)	759,990
Options (treasury stock method) \| Low \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	3 years
Options (treasury stock method) \| High \| Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Requisite Service Period	4 years

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs and Valuation Techniques

The following table sets forth the range and weighted average, weighted by relative fair value, of the spread as of June 30, 2023:



	June 30, 2023
High	14.53	%
Low	5.15	%
Weighted average	7.14	%

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the Company’s investments within the fair value hierarchy at June 30, 2023 and December 31, 2022:


June 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	44,483	$	—	$	—	$	44,483
Corporate securities and miscellaneous	—		293,560		—		293,560
Municipal securities	—		70,973		—		70,973
Residential mortgage-backed securities	—		196,946		—		196,946
Commercial mortgage-backed securities	—		17,979		—		17,979
Asset-backed securities	—		143,550		—		143,550
Total fixed maturity securities, available-for-sale	44,483		723,008		—		767,491
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		42,587		42,587
Total fixed maturity securities, held-to-maturity	—		—		42,587		42,587
Common stocks:
Consumer discretionary	1,963		—		—		1,963
Consumer staples	14,792		—		—		14,792
Energy	3,008		—		—		3,008
Finance	20,890		—		—		20,890
Industrial	11,501		—		—		11,501
Information technology	3,599		—		—		3,599
Materials	3,706		—		—		3,706
Other	2,215		—		—		2,215
Total common stocks	61,674		—		—		61,674
Preferred stocks:
Consumer staples	—		423		—		423
Finance	—		4,746		—		4,746
Industrial	—		1,067		—		1,067
Other	—		711		—		711
Total preferred stocks	—		6,947		—		6,947
Mutual funds:
Fixed income	5,218		—		—		5,218
Equity	53,549		—		—		53,549
Commodity	473		—		—		473
Total mutual funds	59,240		—		—		59,240
Total equity securities	120,914		6,947		—		127,861
Mortgage loans	—		—		32,762		32,762
Short-term investments	190,670		—		—		190,670
Total investments	$	356,067	$	729,955	$	75,349	$	1,161,371


December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	48,541	$	—	$	—	$	48,541
Corporate securities and miscellaneous	—		235,129		—		235,129
Municipal securities	—		57,727		—		57,727
Residential mortgage-backed securities	—		119,856		—		119,856
Commercial mortgage-backed securities	—		36,495		—		36,495
Asset-backed securities	—		109,824		—		109,824
Total fixed maturity securities, available-for-sale	48,541		559,031		—		607,572
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		46,771		46,771
Total fixed maturity securities, held-to-maturity:	—		—		46,771		46,771
Common stocks:
Consumer discretionary	1,948		—		—		1,948
Consumer staples	12,036		—		—		12,036
Energy	3,241		—		—		3,241
Finance	22,636		—		—		22,636
Industrial	9,452		—		—		9,452
Information technology	2,284		—		—		2,284
Materials	2,820		—		—		2,820
Other	1,579		—		—		1,579
Total common stocks	55,996		—		—		55,996
Preferred stocks:
Consumer staples	—		117		—		117
Finance	—		7,085		—		7,085
Industrial	—		1,020		—		1,020
Other	—		549		—		549
Total preferred stocks	—		8,771		—		8,771
Mutual funds:
Fixed income	5,068		—		—		5,068
Equity	49,773		—		—		49,773
Commodity	561		—		—		561
Total mutual funds	55,402		—		—		55,402
Total equity securities	111,398		8,771		—		120,169
Mortgage loans	—		—		52,842		52,842
Short-term investments	121,158		—		—		121,158
Total investments	$	281,097	$	567,802	$	99,613	$	948,512

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table sets forth the changes in the fair value of instruments carried at fair value with a Level 3 measurement during the three months ended June 30, 2023:


($ in thousands)	Mortgage Loans
Balance at December 31, 2022	$	52,842
Total gains for the period recognized in net investment gains (losses)	$	22
Issuances	$	892
Settlements	$	(11,421)
Balance at March 31, 2023	$	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	(14)

Total gains for the period recognized in net investment gains (losses)	$	(21)
Issuances	$	30
Settlements	$	(9,582)
Balance at June 30, 2023	$	32,762
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	3

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table sets forth the changes in the fair value of instruments carried at fair value with a Level 3 measurement during the three months ended June 30, 2023:


($ in thousands)	Mortgage Loans
Balance at December 31, 2022	$	52,842
Total gains for the period recognized in net investment gains (losses)	$	22
Issuances	$	892
Settlements	$	(11,421)
Balance at March 31, 2023	$	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	(14)

Total gains for the period recognized in net investment gains (losses)	$	(21)
Issuances	$	30
Settlements	$	(9,582)
Balance at June 30, 2023	$	32,762
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	3

Summary of Subordinated Debt

The following table sets forth the Company’s carrying and fair values of notes payable and subordinated debt as of June 30, 2023 and December 31, 2022:


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes Payable
Term loan, due December 31, 2024	$	—	$	—	$	50,000	$	50,000
Revolving credit facility	50,000		50,000		—		—
Notes payable	$	50,000	$	50,000	$	50,000	$	50,000
Subordinated Debt
Junior subordinated interest debentures	$	59,162	$	59,794	$	59,137	$	59,794
Unsecured subordinated notes	19,488		18,278		19,472		18,934
Subordinated debt, net of debt issuance costs	$	78,650	$	78,072	$	78,609	$	78,728

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Investments - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available for sale, fair value
Less than 12 Months	$ 367,302	$ 408,939
12 Months or More	339,814	143,730
Total	707,116	552,669
Available for sale, gross unrealized losses
Less than 12 Months	(10,539)	(32,893)
12 Months or More	(42,885)	(23,302)
Total	(53,424)	(56,195)
Held-to-maturity, fair value
Less than 12 Months	1,845	46,771
12 Months or More	40,742	0
Total	42,587	46,771
Held-to-maturity, gross unrealized losses
Less than 12 Months	(22)	(5,696)
12 Months or More	(4,563)	0
Total	(4,585)	(5,696)
Available-for-sale and held-to-maturity, fair value
Less than 12 Months	369,147	455,710
12 Months or More	380,556	143,730
Total	749,703	599,440
Available-for-sale and held-to-maturity, gross unrealized losses
Less than 12 Months	(10,561)	(38,589)
12 Months or More	(47,448)	(23,302)
Total	(58,009)	(61,891)
U.S. government securities
Available for sale, fair value
Less than 12 Months	18,718	28,966
12 Months or More	25,765	18,577
Total	44,483	47,543
Available for sale, gross unrealized losses
Less than 12 Months	(428)	(603)
12 Months or More	(1,068)	(1,273)
Total	(1,496)	(1,876)
Corporate securities and miscellaneous
Available for sale, fair value
Less than 12 Months	126,693	171,506
12 Months or More	130,980	34,283
Total	257,673	205,789
Available for sale, gross unrealized losses
Less than 12 Months	(3,796)	(16,063)
12 Months or More	(16,571)	(4,691)
Total	(20,367)	(20,754)
Municipal securities
Available for sale, fair value
Less than 12 Months	30,290	51,701
12 Months or More	34,000	3,689
Total	64,290	55,390
Available for sale, gross unrealized losses
Less than 12 Months	(1,079)	(7,236)
12 Months or More	(5,505)	(897)
Total	(6,584)	(8,133)
Residential mortgage-backed securities
Available for sale, fair value
Less than 12 Months	111,829	56,246
12 Months or More	76,276	52,778
Total	188,105	109,024
Available for sale, gross unrealized losses
Less than 12 Months	(3,663)	(4,152)
12 Months or More	(13,722)	(11,054)
Total	(17,385)	(15,206)
Commercial mortgage-backed securities
Available for sale, fair value
Less than 12 Months	7,688	25,836
12 Months or More	10,291	8,583
Total	17,979	34,419
Available for sale, gross unrealized losses
Less than 12 Months	(206)	(1,488)
12 Months or More	(1,620)	(2,196)
Total	(1,826)	(3,684)
Asset-backed securities
Available for sale, fair value
Less than 12 Months	72,084	74,684
12 Months or More	62,502	25,820
Total	134,586	100,504
Available for sale, gross unrealized losses
Less than 12 Months	(1,367)	(3,351)
12 Months or More	(4,399)	(3,191)
Total	(5,766)	(6,542)
Held-to-maturity, fair value
Less than 12 Months	1,845	46,771
12 Months or More	40,742	0
Total	42,587	46,771
Held-to-maturity, gross unrealized losses
Less than 12 Months	(22)	(5,696)
12 Months or More	(4,563)	0
Total	$ (4,585)	$ (5,696)

Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The following table sets forth the Company’s income tax expense and effective tax rates for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,						Six months ended June 30,
($ in thousands	2023			2022			2023			2022
Income tax expense	$	5,564		$	1,292		$	9,730		$	5,561
Effective tax rate	22.2		%	20.3		%	21.7		%	20.6		%

The effective tax rate will differ from the statutory rate of 21 percent due to permanent differences for disallowed expenses for tax and beneficial adjustments for tax-exempt income and dividends-received deduction.

The Company paid federal income taxes of $4.2 million during the three and six months ended June 30, 2023.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Investments - Narrative (Details)	Jun. 30, 2023 position
Investments, Debt and Equity Securities [Abstract]
Unrealized loss position aged over 12 months, number of positions	735

Reinsurance (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Effects of Reinsurance

The following table sets forth the effects of reinsurance on written and earned premiums and losses and loss adjustment expenses for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,
	2023				2022
($ in thousands)	Written		Earned		Written		Earned
Direct premiums	$	332,062	$	283,762	$	276,694	$	230,203
Assumed premiums	89,932		48,213		49,533		25,933
Ceded premiums	(208,257)		(137,628)		(137,496)		(110,060)
Net premiums	$	213,737	$	194,347	$	188,731	$	146,076
Ceded losses and LAE incurred			$	99,981			$	68,060


	Six months ended June 30,
	2023				2022
($ in thousands)	Written		Earned		Written		Earned
Direct premiums	$	640,275	$	546,419	$	525,329	$	452,840
Assumed premiums	142,217		87,345		83,540		52,529
Ceded premiums	(366,614)		(256,586)		(284,737)		(217,566)
Net premiums	$	415,878	$	377,178	$	324,132	$	287,803
Ceded losses and LAE incurred			$	164,775			$	129,587

Ceded Credit Risk

The following table sets forth the components of reinsurance recoverables and ceded unearned premium as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Ceded unpaid losses and LAE	$	441,227	$	435,986
Ceded paid losses and LAE	115,672		107,228
Loss portfolio transfer	28,318		38,145
Allowance for credit losses	(2,295)		—
Reinsurance recoverables	$	582,922	$	581,359
Ceded unearned premium	$	267,672	$	157,645

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company’s financial instruments include assets and liabilities carried at fair value, as well as assets and liabilities carried at cost or amortized cost but disclosed at fair value in its consolidated financial statements. In determining fair value, the market approach is generally applied, which uses prices and other relevant data based on market transactions involving identical or comparable assets and liabilities.

The Company uses data primarily provided by third-party investment managers or pricing vendors to determine the fair value of its investments. Periodic analyses are performed on prices received from third parties to determine whether the prices are reasonable estimates of fair value. The analyses include a review of month-to-month price fluctuations and, as needed, a comparison of pricing services’ valuations to other pricing services’ valuations for the identical security.

The Company classifies its financial instruments into the following three-level hierarchy:

Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement

date.

Level 2 - Inputs are other than quoted prices included in Level 1 that are observable for the asset or liability through

corroboration with market data at the measurement date.

Level 3 - Unobservable inputs that reflect management’s best estimate of what market participants would use in

pricing the asset or liability at the measurement date.

The following methods and assumptions were used in estimating the fair value disclosures for financial instruments in the accompanying consolidated financial statements and in these notes:

U.S. government securities, mutual funds and common stock

The Company uses unadjusted quoted prices for identical instruments in an active exchange to measure fair value which represent Level 1 inputs.

Preferred stocks, municipal securities, corporate securities and miscellaneous

The Company uses a pricing model that utilizes market-based inputs such as trades in an illiquid market for a particular security or trades in active markets for securities with similar characteristics. The model considers other inputs such as benchmark yields, issuer spreads, security terms and conditions, and other market data. These represent Level 2 fair value inputs.

Commercial mortgage-backed securities, residential mortgage-backed securities and asset-backed securities

The Company uses a pricing model that utilizes market-based inputs that may include dealer quotes, market spreads, and yield curves. It may evaluate individual tranches in a security by determining cash flows using the security’s terms and conditions, collateral performance, credit information benchmark yields and estimated prepayments. These represent Level 2 fair value inputs.

Mortgage loans

Mortgage loans have variable interest rates and are collateralized by real property. The Company determines fair value of mortgage loans using the income approach utilizing inputs that are observable and unobservable (Level 3). The unobservable input consists of the spread applied to a prime rate used to discount cash flows. The spread represents the incremental cost of capital based on the borrower’s ability to make future payments and the value of the collateral relative to the loan balance and is subject to judgement and uncertainty.

The following table sets forth the range and weighted average, weighted by relative fair value, of the spread as of June 30, 2023:



	June 30, 2023
High	14.53	%
Low	5.15	%
Weighted average	7.14	%

The following tables set forth the Company’s investments within the fair value hierarchy at June 30, 2023 and December 31, 2022:


June 30, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	44,483	$	—	$	—	$	44,483
Corporate securities and miscellaneous	—		293,560		—		293,560
Municipal securities	—		70,973		—		70,973
Residential mortgage-backed securities	—		196,946		—		196,946
Commercial mortgage-backed securities	—		17,979		—		17,979
Asset-backed securities	—		143,550		—		143,550
Total fixed maturity securities, available-for-sale	44,483		723,008		—		767,491
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		42,587		42,587
Total fixed maturity securities, held-to-maturity	—		—		42,587		42,587
Common stocks:
Consumer discretionary	1,963		—		—		1,963
Consumer staples	14,792		—		—		14,792
Energy	3,008		—		—		3,008
Finance	20,890		—		—		20,890
Industrial	11,501		—		—		11,501
Information technology	3,599		—		—		3,599
Materials	3,706		—		—		3,706
Other	2,215		—		—		2,215
Total common stocks	61,674		—		—		61,674
Preferred stocks:
Consumer staples	—		423		—		423
Finance	—		4,746		—		4,746
Industrial	—		1,067		—		1,067
Other	—		711		—		711
Total preferred stocks	—		6,947		—		6,947
Mutual funds:
Fixed income	5,218		—		—		5,218
Equity	53,549		—		—		53,549
Commodity	473		—		—		473
Total mutual funds	59,240		—		—		59,240
Total equity securities	120,914		6,947		—		127,861
Mortgage loans	—		—		32,762		32,762
Short-term investments	190,670		—		—		190,670
Total investments	$	356,067	$	729,955	$	75,349	$	1,161,371


December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Fixed maturity securities, available-for-sale:
U.S. government securities	$	48,541	$	—	$	—	$	48,541
Corporate securities and miscellaneous	—		235,129		—		235,129
Municipal securities	—		57,727		—		57,727
Residential mortgage-backed securities	—		119,856		—		119,856
Commercial mortgage-backed securities	—		36,495		—		36,495
Asset-backed securities	—		109,824		—		109,824
Total fixed maturity securities, available-for-sale	48,541		559,031		—		607,572
Fixed maturity securities, held-to-maturity:
Asset-backed securities	—		—		46,771		46,771
Total fixed maturity securities, held-to-maturity:	—		—		46,771		46,771
Common stocks:
Consumer discretionary	1,948		—		—		1,948
Consumer staples	12,036		—		—		12,036
Energy	3,241		—		—		3,241
Finance	22,636		—		—		22,636
Industrial	9,452		—		—		9,452
Information technology	2,284		—		—		2,284
Materials	2,820		—		—		2,820
Other	1,579		—		—		1,579
Total common stocks	55,996		—		—		55,996
Preferred stocks:
Consumer staples	—		117		—		117
Finance	—		7,085		—		7,085
Industrial	—		1,020		—		1,020
Other	—		549		—		549
Total preferred stocks	—		8,771		—		8,771
Mutual funds:
Fixed income	5,068		—		—		5,068
Equity	49,773		—		—		49,773
Commodity	561		—		—		561
Total mutual funds	55,402		—		—		55,402
Total equity securities	111,398		8,771		—		120,169
Mortgage loans	—		—		52,842		52,842
Short-term investments	121,158		—		—		121,158
Total investments	$	281,097	$	567,802	$	99,613	$	948,512

The following table sets forth the changes in the fair value of instruments carried at fair value with a Level 3 measurement during the three months ended June 30, 2023:


($ in thousands)	Mortgage Loans
Balance at December 31, 2022	$	52,842
Total gains for the period recognized in net investment gains (losses)	$	22
Issuances	$	892
Settlements	$	(11,421)
Balance at March 31, 2023	$	42,335
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	(14)

Total gains for the period recognized in net investment gains (losses)	$	(21)
Issuances	$	30
Settlements	$	(9,582)
Balance at June 30, 2023	$	32,762
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end	$	3

The Company measures certain assets, including investments in indirect loans and loan collateral, equity method investments and other invested assets, at fair value on a nonrecurring basis only when they are deemed to be impaired.

In addition to the preceding disclosures on assets and liabilities recorded at fair value in the consolidated balance sheets, the Company is also required to disclose the fair values of certain other financial instruments for which it is practicable to estimate fair value. Estimated fair value amounts, defined as the quoted market price of a financial instrument, have been determined using available market information and other appropriate valuation methodologies. However, considerable judgements are required in developing the estimates of fair value where quoted market prices are not available. Accordingly, these estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions or estimating methodologies may have an effect on the estimated fair value amounts.

The following methods and assumptions were used in estimating the fair value disclosures of other financial instruments:

Fixed maturity securities, held-to-maturity: Fixed maturity securities, held-to-maturity consists of senior and junior notes with target rates of return. As of June 30, 2023, the Company determined the fair value of these instruments using the income approach utilizing inputs that are unobservable (Level 3).

Notes payable: The carrying value approximates the estimated fair value for notes payable as the notes payable accrue interest at current market rates plus a spread. The Company determines fair value using the income approach utilizing inputs that are available (Level 2).

Subordinated debt: Subordinated debt consists of two debt instruments, the Junior Subordinated Interest Debentures, due September 15, 2036, and Unsecured Subordinated Notes, due May 24, 2039. The carrying value of the Junior Subordinated Interest Debentures approximates the estimated fair value as the instrument accrues interest at current market rates plus a spread. Unsecured Subordinated Notes have a fixed interest rate. The Company determines the fair value of these instruments using the income approach utilizing inputs that are observable (Level 2).

The following table sets forth the Company’s carrying and fair values of notes payable and subordinated debt as of June 30, 2023 and December 31, 2022:


	June 30, 2023				December 31, 2022
($ in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes Payable
Term loan, due December 31, 2024	$	—	$	—	$	50,000	$	50,000
Revolving credit facility	50,000		50,000		—		—
Notes payable	$	50,000	$	50,000	$	50,000	$	50,000
Subordinated Debt
Junior subordinated interest debentures	$	59,162	$	59,794	$	59,137	$	59,794
Unsecured subordinated notes	19,488		18,278		19,472		18,934
Subordinated debt, net of debt issuance costs	$	78,650	$	78,072	$	78,609	$	78,728

Other financial instruments qualify as insurance-related products and are specifically exempted from fair value disclosure requirements.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share


	Three months ended June 30,				Six months ended June 30,
($ in thousands, except for share and per share amounts)	2023		2022		2023		2022
Numerator
Net income	$	19,452	$	5,065	$	35,008	$	21,376
Less: Undistributed income allocated to participating securities	—		(2,437)		(1,402)		(10,283)
Net income attributable to common stockholders (numerator for basic earnings per share)	19,452		2,628		33,606		11,093
Add back: Undistributed income allocated to participating securities	—		2,437		1,402		10,283
Net income (numerator for diluted earnings per share under the two-class method)	$	19,452	$	5,065	$	35,008	$	21,376
Denominator
Basic weighted-average common shares	36,603,779		16,449,810		34,746,874		16,449,810

Preferred shares (if converted method)	—		15,249,373		1,449,343		15,249,373
Contingently issuable instruments (treasury stock method)	763,590		524,165		740,396		527,525
Market condition awards (contingently issuable)	85,979		112,454		73,033		99,393
Performance awards (contingently issuable)	73,087		58,184		41,348		49,375
Restricted stock units (treasury stock method)	525,999		266,330		397,950		224,771
Options (treasury stock method)	91,151		—		54,970		—
Diluted weighted-average common share equivalents	38,143,585		32,660,316		37,503,914		32,600,247
Basic earnings per share	$	0.53	$	0.16	$	0.97	$	0.67
Diluted earnings per share	$	0.51	$	0.16	$	0.93	$	0.66

The Company’s preferred shares participate in dividends and distributions with common stock on an as-converted basis and represent a participating security. Instruments awarded to employees that provide the holder the right to purchase common stock at a fixed price were included as potential common shares, weighted for the portion of the period they were granted, if dilutive.

Anti-dilutive instruments are excluded from the calculation of diluted weighted-average common share equivalents as they would have an anti-dilutive impact. The following table sets forth the weighted-average instruments that were

excluded from the calculation of diluted weighted-average common share equivalents during the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022

Contingently issuable instruments (treasury stock method)	—	58	—	—
Market condition awards (contingently issuable)	—	—	25,774	—
Performance awards (contingently issuable)	1,014	—	68,585	—
Restricted stock units (treasury stock method)	922	—	237,125	—
Options (treasury stock method)	315	—	357,059	—

The Company’s common and preferred shares financed by stock notes are contingently issuable instruments where the holder must return, all or part of, the shares if the stock notes are not paid off. The following table sets forth common share equivalents of contingently issuable instruments (in shares) that were excluded from basic earnings per share for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,		Six months ended June 30,
	2023	2022	2023	2022
Common shares	1,054,510	83,811	1,054,510	83,811
Preferred shares, if converted	—	1,059,601	—	1,059,601
Total	1,054,510	1,143,412	1,054,510	1,143,412

The impact of the contingently issuable instruments on diluted earnings per share was calculated using the treasury stock method and included in the reconciliation of the denominator of the basic and diluted earnings per share computations for the three and six months ended June 30, 2023 and 2022.

Underwriting, Acquisition and Insurance Expenses (Tables)

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Schedule of Underwriting, Acquisition and Insurance Expenses

The following table sets forth the components of underwriting, acquisition and insurance expenses for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
Amortization of policy acquisition costs	$	23,136	$	14,714	$	44,371	$	28,135
Other operating and general expenses	33,547		29,669		63,967		56,783
Total underwriting, acquisition and insurance expenses	$	56,683	$	44,383	$	108,338	$	84,918

Allowance for Credit Losses - Reinsurance Recoverable (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,295	$ 0
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023	2,295	2,295
Current period change for estimated uncollectible reinsurance	0	0
Write-offs of uncollectible reinsurance recoverables	0	0
Ending balance	$ 2,295	2,295
Period of adoption, adjustment
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ 2,295
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023

Reinsurance

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Reinsurance

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. The Company remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations.

The following table sets forth the effects of reinsurance on written and earned premiums and losses and loss adjustment expenses for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,
	2023				2022
($ in thousands)	Written		Earned		Written		Earned
Direct premiums	$	332,062	$	283,762	$	276,694	$	230,203
Assumed premiums	89,932		48,213		49,533		25,933
Ceded premiums	(208,257)		(137,628)		(137,496)		(110,060)
Net premiums	$	213,737	$	194,347	$	188,731	$	146,076
Ceded losses and LAE incurred			$	99,981			$	68,060


	Six months ended June 30,
	2023				2022
($ in thousands)	Written		Earned		Written		Earned
Direct premiums	$	640,275	$	546,419	$	525,329	$	452,840
Assumed premiums	142,217		87,345		83,540		52,529
Ceded premiums	(366,614)		(256,586)		(284,737)		(217,566)
Net premiums	$	415,878	$	377,178	$	324,132	$	287,803
Ceded losses and LAE incurred			$	164,775			$	129,587

The following table sets forth the components of reinsurance recoverables and ceded unearned premium as of June 30, 2023 and December 31, 2022:


($ in thousands)	June 30, 2023		December 31, 2022
Ceded unpaid losses and LAE	$	441,227	$	435,986
Ceded paid losses and LAE	115,672		107,228
Loss portfolio transfer	28,318		38,145
Allowance for credit losses	(2,295)		—
Reinsurance recoverables	$	582,922	$	581,359
Ceded unearned premium	$	267,672	$	157,645

The Company entered into agreements with several of its reinsurers, whereby the reinsurer established funded trust accounts with the Company as the sole beneficiary. These trust accounts provide the Company additional security to collect claim recoverables under reinsurance contracts and the Company does not carry these on the balance sheet because the Company will only have custody over these accounts upon the failure of the reinsurer to pay amounts due. At June 30, 2023, the market value of these accounts was approximately $134.2 million. The agreements provide that, as was customary in the past, the reinsurer will continue claim payment reimbursements without disturbing the trust balances. The trust amount will be adjusted periodically, by mutual agreement, based on loss reserve recoverables.

Certain ceded reinsurance contracts that transfer only significant timing risk and do not transfer sufficient underwriting risk are accounted for using the deposit method of accounting. The Company’s deposit asset at June 30, 2023 and December 31, 2022 was $34.3 million and $41.8 million, respectively, and was included in other assets on the condensed consolidated balance sheets.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements of Skyward Specialty Insurance Group, Inc. (the “Company”) have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the disclosures required by GAAP for complete consolidated financial statements. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair statement of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited annual consolidated financial statements.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates.
Recent Account Standards Adopted and Updates to Significant Accounting Policies	Recent Accounting Standards Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and fixed maturity securities, by introducing an approach based on expected losses. The expected loss approach required entities to incorporate considerations of historical information, current information, and reasonable and supportable forecasts. The Company adopted ASU 2016-13 effective January 1, 2023 using the modified retrospective approach, by which a cumulative-effect adjustment was made to retained earnings as of the date of adoption. In connection with the adoption of ASU 2016-13, the Company elected the fair value option in accounting for mortgage loans effective January 1, 2023 as targeted transition relief. The adoption of ASU 2016-13 resulted in a $2.3 million increase in accumulated deficit, net of tax. Updates to Significant Accounting Policies The following accounting policies have been updated to reflect the Company's adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments as described above.
Investments	Investments Available-for-sale Investments in fixed maturities that are classified as available-for-sale are carried at fair value. For available-for-sale fixed maturities in an unrealized loss position, the Company first determines whether there is an intent to sell the security or if it is more likely than not that the Company will be required to sell the security before maturity or recovery of its cost basis. If either of these criteria were met, the amortized cost of the security is written down to fair value with the losses recognized in net investment gains (losses) on the consolidated statements of operations. If neither of the these criteria were met, the Company determines whether unrealized losses are due to credit-related factors. If the unrealized losses are due to credit-related factors, an allowance for credit losses is determined using a present value of cash flows compared to the amortized cost of the security. The allowance for credit losses is limited to the amount by which fair value is below amortized cost. Changes in the allowance for credit losses are recognized in net investment income on the consolidated statements of operations. Credit losses that are limited by the fair value of the security are recognized in stockholders’ equity, net of taxes, as a component of accumulated other comprehensive (loss) income. Unrealized losses that are not credit-related continue to be recognized in stockholders’ equity, net of taxes, as a component of accumulated other comprehensive (loss) income. Held-to-maturity Investments in fixed maturity securities that are held-to-maturity are carried at amortized cost net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate from Moody’s table of estimated multi-year cumulative loss rates for asset backed securities. This historical loss rate is adjusted for current conditions and reasonable and supportable forecasts. Changes in the allowance for credit losses are recognized in net investment income on the consolidated statements of operations. Mortgage loans The Company elected the fair value option in accounting for mortgage loans effective January 1, 2023 as targeted transition relief. Under the fair value option, mortgage loans are measured at fair value, and changes in unrealized gains and losses on mortgage loans are reported in net investment gains (losses) on the condensed consolidated statements of operations. Interest income and amortization continue to be recognized in net investment income on the consolidated statements of operations.
Reinsurance	Reinsurance Reinsurance Recoverables Reinsurance recoverables are carried net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate using the A.M. Best impairment rate and rating transition study which provides historical loss data of similarly rated reinsurance companies based on the expected duration of the receivables. This historical loss rate is adjusted for current conditions and reasonable and supportable forecasts and consideration of current economic conditions. Changes in the allowance for credit losses are recognized in underwriting, acquisition and insurance expenses on the consolidated statements of operations.
Premiums	Premiums Premium receivables are carried net of an allowance for credit losses. The allowance for credit losses represents the current estimate of expected credit losses. The Company develops a historical loss rate using historical write-offs and aging of receivables. This historical loss rate is adjusted for current conditions, reasonable and supportable forecasts and our ability to cancel coverage on a policy after premium is considered past due. Changes in the allowance for credit losses are recognized in underwriting, acquisition and insurance expenses on the consolidated statements of operations.
Fair Value	The following methods and assumptions were used in estimating the fair value disclosures for financial instruments in the accompanying consolidated financial statements and in these notes: U.S. government securities, mutual funds and common stock The Company uses unadjusted quoted prices for identical instruments in an active exchange to measure fair value which represent Level 1 inputs. Preferred stocks, municipal securities, corporate securities and miscellaneous The Company uses a pricing model that utilizes market-based inputs such as trades in an illiquid market for a particular security or trades in active markets for securities with similar characteristics. The model considers other inputs such as benchmark yields, issuer spreads, security terms and conditions, and other market data. These represent Level 2 fair value inputs. Commercial mortgage-backed securities, residential mortgage-backed securities and asset-backed securities The Company uses a pricing model that utilizes market-based inputs that may include dealer quotes, market spreads, and yield curves. It may evaluate individual tranches in a security by determining cash flows using the security’s terms and conditions, collateral performance, credit information benchmark yields and estimated prepayments. These represent Level 2 fair value inputs. Mortgage loans Mortgage loans have variable interest rates and are collateralized by real property. The Company determines fair value of mortgage loans using the income approach utilizing inputs that are observable and unobservable (Level 3). The unobservable input consists of the spread applied to a prime rate used to discount cash flows. The spread represents the incremental cost of capital based on the borrower’s ability to make future payments and the value of the collateral relative to the loan balance and is subject to judgement and uncertainty. The following methods and assumptions were used in estimating the fair value disclosures of other financial instruments: Fixed maturity securities, held-to-maturity: Fixed maturity securities, held-to-maturity consists of senior and junior notes with target rates of return. As of June 30, 2023, the Company determined the fair value of these instruments using the income approach utilizing inputs that are unobservable (Level 3). Notes payable: The carrying value approximates the estimated fair value for notes payable as the notes payable accrue interest at current market rates plus a spread. The Company determines fair value using the income approach utilizing inputs that are available (Level 2). Subordinated debt: Subordinated debt consists of two debt instruments, the Junior Subordinated Interest Debentures, due September 15, 2036, and Unsecured Subordinated Notes, due May 24, 2039. The carrying value of the Junior Subordinated Interest Debentures approximates the estimated fair value as the instrument accrues interest at current market rates plus a spread. Unsecured Subordinated Notes have a fixed interest rate. The Company determines the fair value of these instruments using the income approach utilizing inputs that are observable (Level 2).

- Definition

Disclosure of accounting policy for investment in financial asset.

+ References + Details

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Period of adoption, adjustment	Preferred Stock	Common Stock	Treasury Stock	Additional Paid-in Capital	Stock Notes Receivable	Accumulated Other Comprehensive Loss	Accumulated Deficit	Accumulated Deficit Period of adoption, adjustment
Stockholders' equity beginning balance at Dec. 31, 2021	$ 426,080		$ 20	$ 168	$ (2)	$ 575,159	$ (9,092)	$ 4,640	$ (144,813)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity transactions	690					502	188
Reclassification of stock notes receivable to other assets	1,942						1,942
Net income	16,311								16,311
Other comprehensive income (loss), net of tax	(16,404)							(16,404)
Stockholders' equity ending balance at Mar. 31, 2022	428,619		20	168	(2)	575,661	(6,962)	(11,764)	(128,502)
Stockholders' equity beginning balance at Dec. 31, 2021	426,080		20	168	(2)	575,159	(9,092)	4,640	(144,813)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,376
Other comprehensive income (loss), net of tax	(31,171)
Stockholders' equity ending balance at Jun. 30, 2022	419,607		20	168	(2)	576,331	(6,942)	(26,531)	(123,437)
Stockholders' equity beginning balance at Dec. 31, 2021	426,080		20	168	(2)	575,159	(9,092)	4,640	(144,813)
Stockholders' equity ending balance at Dec. 31, 2022	$ 421,662	$ (2,276)	20	168	(2)	577,289	(6,911)	(43,485)	(105,417)	$ (2,276)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Stockholders' equity beginning balance at Mar. 31, 2022	$ 428,619		20	168	(2)	575,661	(6,962)	(11,764)	(128,502)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity transactions	690					670	20
Net income	5,065								5,065
Other comprehensive income (loss), net of tax	(14,767)							(14,767)
Stockholders' equity ending balance at Jun. 30, 2022	419,607		20	168	(2)	576,331	(6,942)	(26,531)	(123,437)
Stockholders' equity beginning balance at Dec. 31, 2022	421,662	(2,276)	20	168	(2)	577,289	(6,911)	(43,485)	(105,417)	(2,276)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity transactions	2,057					1,864	193
Preferred stock conversion to common shares	0		(20)	161	2	(143)
Proceeds from initial public offering, net	62,406			48		62,358
Net income	15,556								15,556
Other comprehensive income (loss), net of tax	7,741							7,741
Stockholders' equity ending balance at Mar. 31, 2023	507,146		0	377	0	641,368	(6,718)	(35,744)	(92,137)
Stockholders' equity beginning balance at Dec. 31, 2022	421,662	$ (2,276)	20	168	(2)	577,289	(6,911)	(43,485)	(105,417)	$ (2,276)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,008
Other comprehensive income (loss), net of tax	2,201
Stockholders' equity ending balance at Jun. 30, 2023	522,678		0	377	0	642,988	(6,718)	(41,284)	(72,685)
Stockholders' equity beginning balance at Mar. 31, 2023	507,146		0	377	0	641,368	(6,718)	(35,744)	(92,137)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity transactions	2,011					2,011
Proceeds from initial public offering, net	(391)					(391)
Net income	19,452								19,452
Other comprehensive income (loss), net of tax	(5,540)							(5,540)
Stockholders' equity ending balance at Jun. 30, 2023	$ 522,678		$ 0	$ 377	$ 0	$ 642,988	$ (6,718)	$ (41,284)	$ (72,685)

- Definition

Indicates amendment to accounting standards.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Equity impact of the value of new stock issued during the period. Includes shares issued in an initial public offering or a secondary public offering.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

+ Details

Losses and Loss Adjustment Expenses - Schedule of Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Reserves for losses and LAE, beginning of period	$ 1,141,757	$ 979,549
Less: reinsurance recoverable on unpaid claims, beginning of period	(435,986)	(381,338)
Reserves for losses and LAE, beginning of period, net of reinsurance	705,771	598,211
Incurred, net of reinsurance, related to:
Current period	240,010	181,790
Prior years	0	0
Total incurred, net of reinsurance	240,010	181,790
Paid, net of reinsurance, related to:
Current period	29,124	30,865
Prior years	133,757	110,318
Total paid	162,881	141,183
Net reserves for losses and LAE, end of period	782,900	638,818
Plus: reinsurance recoverable on unpaid claims, end of period	441,227	397,567
Reserves for losses and LAE, end of period	$ 1,224,127	$ 1,036,385

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Reinsurance - Schedule of Premiums Written and Earned (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Written
Direct premiums	$ 332,062	$ 276,694	$ 640,275	$ 525,329
Assumed premiums	89,932	49,533	142,217	83,540
Ceded premiums	(208,257)	(137,496)	(366,614)	(284,737)
Net premiums	213,737	188,731	415,878	324,132
Earned
Direct premiums	283,762	230,203	546,419	452,840
Assumed premiums	48,213	25,933	87,345	52,529
Ceded premiums	(137,628)	(110,060)	(256,586)	(217,566)
Net premiums	194,347	146,076	377,178	287,803
Ceded losses and LAE incurred	$ 99,981	$ 68,060	$ 164,775	$ 129,587

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-41591
Entity Registrant Name	SKYWARD SPECIALTY INSURANCE GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1957288
Entity Address, Address Line One	800 Gessner Road
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024-4284
City Area Code	713
Local Phone Number	935-4800
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	SKWD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,674,063
Entity Central Index Key	0001519449
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator
Net income	$ 19,452	$ 5,065	$ 35,008	$ 21,376
Less: Undistributed income allocated to participating securities	0	(2,437)	(1,402)	(10,283)
Net income attributable to common stockholders	19,452	2,628	33,606	11,093
Add back: Undistributed income allocated to participating securities	0	2,437	1,402	10,283
Net income (numerator for diluted earnings per share under the two-class method)	$ 19,452	$ 5,065	$ 35,008	$ 21,376
Denominator
Basic (in shares)	36,603,779	16,449,810	34,746,874	16,449,810
Preferred shares (if converted method) (in shares)	0	15,249,373	1,449,343	15,249,373
Contingently issuable instruments (treasury stock method) (in shares)	763,590	524,165	740,396	527,525
Diluted weighted-average common share equivalents (in shares)	38,143,585	32,660,316	37,503,914	32,600,247
Basic earnings per share (in dollar per share)	$ 0.53	$ 0.16	$ 0.97	$ 0.67
Diluted earnings per share (in dollar per share)	$ 0.51	$ 0.16	$ 0.93	$ 0.66
Market condition awards
Denominator
Unvested common shares (in shares)	0	0	25,774	0
Awards (in shares)	85,979	112,454	73,033	99,393
Performance condition awards
Denominator
Unvested common shares (in shares)	1,014	0	68,585	0
Awards (in shares)	73,087	58,184	41,348	49,375
Stock options
Denominator
Unvested common shares (in shares)	922	0	237,125	0
Awards (in shares)	525,999	266,330	397,950	224,771
Options (treasury stock method)
Denominator
Unvested common shares (in shares)	315	0	357,059	0
Awards (in shares)	91,151	0	54,970	0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Amortized cost	$ 819,762	$ 662,616
Allowance for credit losses	$ 332
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	1,969,660
Preferred stock, shares outstanding (in shares)	0	1,969,660
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	168,000,000
Common stock, shares issued (in shares)	37,674,063	16,832,955
Treasury stock, par value (in USD per share)	$ 0.01	$ 0.01
Treasury stock (in shares)	0	233,289

Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense



($ in thousands)	2023		2022
Reserves for losses and LAE, beginning of period	$	1,141,757	$	979,549
Less: reinsurance recoverable on unpaid claims, beginning of period	(435,986)		(381,338)
Reserves for losses and LAE, beginning of period, net of reinsurance	705,771		598,211
Incurred, net of reinsurance, related to:
Current period	240,010		181,790
Prior years	—		—
Total incurred, net of reinsurance	240,010		181,790
Paid, net of reinsurance, related to:
Current period	29,124		30,865
Prior years	133,757		110,318
Total paid	162,881		141,183
Net reserves for losses and LAE, end of period	782,900		638,818
Plus: reinsurance recoverable on unpaid claims, end of period	441,227		397,567
Reserves for losses and LAE, end of period	$	1,224,127	$	1,036,385

Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 12, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common share (in shares)					3,200,516
Options granted (in shares)			759,990
Aggregate intrinsic value of options	$ 7.9		$ 7.9
Weighted average remaining contractual life of options			9 years 6 months
Unrecognized compensation cost	20.3		$ 20.3
Unrecognized compensation cost, recognition period			1 year 10 months 24 days
Stock based compensation expense	$ 2.0	$ 0.7	$ 3.9	$ 1.2
IPO
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Sale of stock, price per share (in USD per share)					$ 15.00
Employee Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common share (in shares)	376,531		376,531
Purchase price of common stock, percent			85.00%
Restricted Stock Awards And Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)			1,092,554	192,411
Fair value of shares vested in period			$ 0.8	$ 1.8
Options (treasury stock method)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Contractual term			10 years
Long Term Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common share (in shares)	1,852,544	192,411	1,852,544	192,411
Stock options granted to employees			$ 4.4
Long Term Incentive Plan \| Restricted Stock Awards And Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)			1,092,554	192,411
Shares granted, value			$ 17.5	$ 2.5
Long Term Incentive Plan \| Options (treasury stock method)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Authorized target common share (in shares)	759,990		759,990
Long Term Incentive Plan \| Director \| Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)			19,284	15,196
Requisite service period			1 year

Investments - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Fixed maturity securities	$ (7,013)		$ (18,692)		$ 2,773	$ (39,457)
Deferred income taxes	1,473		3,925		(572)	8,286
Total other comprehensive (loss) income	$ (5,540)	$ 7,741	$ (14,767)	$ (16,404)	$ 2,201	$ (31,171)

Mortgage Loans - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans in foreclosure	$ 0.0	$ 6.4
Low
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment, term	1 year
Percentage of property appraisal value	61.00%
High
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment, term	2 years
Percentage of property appraisal value	80.00%

Commission and Fee Income

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Commission and Fee Income

Skyward Underwriters Agency, Inc. (“SUA”), a subsidiary of the Company, is a managing general insurance agent and reinsurance broker for property and casualty and accident and health risks in specialty niche markets. Commission and fee income is primarily generated from SUA for the placement of insurance policies on either a third-party insurance or reinsurance company.

The following table sets forth the Company’s disaggregated revenues from contracts with customers for the three and six months ended June 30, 2023 and 2022:


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2023		2022		2023		2022
SUA commission revenue	$	1,385	$	1,361	$	2,242	$	1,503
SUA fee income	805		664		1,261		505
Other	50		35		229		282
Total commission and fee income	$	2,240	$	2,060	$	3,732	$	2,290

The Company’s contract assets from commission and fee income as of June 30, 2023 and December 31, 2022 were $1.7 million and $1.3 million, respectively. Contract assets were $1.5 million and $1.2 million as of June 30, 2022 and December 31, 2021, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details