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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 16. Commitments and Contingencies The Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations. The Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs. The Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the c laimants. The following table summa rizes the fair value of the annuities at December 31, 2023, that the Company has purchased to satisfy its obligations.
Life Insurance Company |  | A.M. Best Rating |  | Statement Value of Annuities Exceeding 1% of Statutory Surplus |
|  |  |  | (in thousands) |
Pacific Life Insurance Company |  | A+ |  | $ | 20,961 |
Metropolitan Tower Life Insurance Company |  | A+ |  |  | 15,173 |
American General Life Insurance Company |  | A |  |  | 14,171 |
United of Omaha Life Insurance Company |  | A+ |  |  | 10,316 |
Brighthouse Financial Life Insurance Company |  | A |  |  | 9,039 |
New York Life Insurance Company |  | A++ |  |  | 8,271 |
Berkshire Hathaway Life Insurance Company of Nebraska |  | A++ |  |  | 7,226 |
John Hancock Life Insurance Company |  | A+ |  |  | 5,569 |
Athene Annuity and Life Company |  | A |  |  | 3,644 |
Protective Life Insurance Company |  | A+ |  |  | 3,514 |
Wilton Reassurance Company |  | A+ |  |  | 2,971 |
Other |  |  |  |  | 6,041 |
|  |  |  | $ | 106,896 |
Substantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better. The Compan y has operating and finance leases for office space and equipment. Our leases have remaining lease terms of one month to 47 months, some of which include options to extend the leases for up to five years. The components of lease expense were as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
|  | (in thousands) |
Operating lease cost |  | $ | 108 |  |  | $ | 103 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 320 |  |  |  | 193 |
Interest on lease liabilities |  |  | 8 |  |  |  | 9 |
Total finance lease cost |  | $ | 328 |  |  | $ | 202 |
Supplemental cash flow information related to leases was as follows:
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
|  | (in thousands) |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | (77 | ) |  | $ | (87 | )
Operating cash flows from finance leases |  |  | 8 |  |  |  | 9 |
Financing cash flows from finance leases |  |  | 91 |  |  |  | 58 |
Right-of-use assets obtained in the exchange for the lease obligations wer e as follows:
|  | December 31, |
|  | 2023 |  |  | 2022 |
|  | (in thousands) |
Operating leases |  | $ | 26 |  |  | $ | 45 |
Finance leases |  |  | 99 |  |  |  | 122 |
Supplemental balance sheet information related to leases wa s as follows:
|  | December 31, 2023 |  |  | December 31, 2022 |  |  | Balance Sheet Classification
|  | (in thousands) |  |  |
Operating leases: |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 29 |  |  | $ | 106 |  |  | Other assets
Operating lease liabilities |  | $ | 29 |  |  | $ | 106 |  |  | Accounts payable and other liabilities
Finance leases: |  |  |  |  |  |  |  |
Finance lease right-of-use assets |  | $ | 462 |  |  | $ | 362 |  |  |
Finance lease accumulated amortization right-of-use assets |  |  | (320 | ) |  |  | (193 | ) |  |
Property and equipment, net |  | $ | 142 |  |  | $ | 169 |  |  | Property and equipment, net
Finance lease liabilities |  | $ | 238 |  |  | $ | 230 |  |  | Accounts payable and other liabilities
|  | December 31,
|  | 2023 |  | 2022
Weighted average remaining lease term: |  |  |  |  |  |  |  |
Operating leases |  |  | 0.7 |  | years |  |  | 1.2 |  | years
Finance leases |  |  | 2.9 |  | years |  |  | 3.0 |  | years
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 6.66 | % |  |  |  | 1.59 | % |
Finance leases |  |  | 5.52 | % |  |  |  | 3.33 | % |
The following is a ma turity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2023:
|  | Operating Leases |  |  | Finance Leases |
|  | (in thousands) |
2024 |  | $ | 29 |  |  | $ | 97 |
2025 |  |  | 1 |  |  |  | 93 |
2026 |  |  | — |  |  |  | 49 |
2027 |  |  | — |  |  |  | 22 |
2028 |  |  | — |  |  |  | — |
Total lease payments |  |  | 30 |  |  |  | 261 |
Less imputed interest |  |  | 1 |  |  |  | 23 |
Total |  | $ | 29 |  |  | $ | 238 |
Rental expense was $0.1 million in 2023, $0.1 million in 2022 and $0.2 million in 2021.

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