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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the provision for income taxes:

			Year Ended December 31,
			2024						2023						2022
Federal:
Current			$	17,992					$	11,798					$	(171)
Deferred			401						(2,908)						18,823
Provision for Federal income tax expense			18,393						8,890						18,652
State:
Current			4,446						3,128						1,518
Deferred			957						(2,562)						5,315
Provision for State income tax expense			5,403						566						6,833
Provision for income taxes			$	23,796					$	9,456					$	25,485

Income tax expense is included in the financial statements as follows:

			Year Ended December 31,
			2024						2023						2022
Continuing operations			$	25,340					$	10,876					$	26,233
Discontinued operations			(1,544)						(1,420)						(748)
Reported income tax provision			$	23,796					$	9,456					$	25,485

Tax Expense Reconciliation

The actual income tax expense attributable to continuing operations differs from the expected income tax expense attributable to continuing operations computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows:

			Year Ended December 31,
			2024												2023												2022
Expected income tax expense at federal rate			$	21,348					21.0		%				$	20,176					21.0		%				$	354					21.0		%
State tax expense, net of federal deduction benefit			5,771						5.7						2,584						2.7						(217)						(12.9)
Dividend received deduction			(30)						—						(6)						—						(24)						(1.4)
Non-Deductible Goodwill			—						—						—						—						715						42.5
Other permanent items			(116)						(0.1)						50						0.1						214						12.7
Prior period accrual adjustment			(501)						(0.5)						126						0.1						469						27.9
Outside basis in subsidiary			8,970						8.8						—						—						189						11.2
Change in valuation allowance			(12,476)						(12.3)						(12,177)						(12.7)						24,426						1,453.1
Change in enacted tax rate			2,375						2.3						(54)						(0.1)						110						6.5
Other, net			(1)						—						177						0.2						(3)						(0.2)
Reported income tax expense			$	25,340					24.9		%				$	10,876					11.3		%				$	26,233					(1,560.6)		%

Schedule of Deferred Tax Assets and Liabilities

The table below summarizes the significant components of our net deferred tax asset (liability):

			December 31,
			2024						2023
Deferred tax assets:
Unearned premiums			$	6,985					$	6,571
Unrealized loss			3,575						4,875
Tax-related discount on loss reserve			620						627
R&D tax credit carryforward			1,610						1,610
Investments			2,592						2,072
Bad debt expense			848						2,729
Equity compensation			797						582
Dual consolidated loss carryforward			4,737						4,745
Net operating loss carryforward			7,740						4,297
Outside basis in subsidiary			32,138						44,802
Other			1,205						1,427
Total pre-allowance deferred tax assets			62,847						74,337
Valuation allowance			(43,212)						(56,491)
Total deferred tax assets			19,635						17,846
Deferred tax liabilities:
Deferred acquisitions costs			(14,108)						(8,033)
Intangible assets			(1,616)						(2,279)
Prepaid expenses			(472)						(435)
Investments			(131)						(105)
Fixed assets			(377)						(1,698)
Total deferred tax liabilities			(16,704)						(12,550)
Net deferred tax asset			$	2,931					$	5,296

Net deferred tax asset is included in the financial statements as follows:

			Year Ended December 31,
			2024						2023
Continuing operations			$	2,931					$	5,296
Discontinued operations			—						—
Net deferred tax asset			$	2,931					$	5,296

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2024:

						December 31, 2024
Balance at January 1						$	666
Decrease based on tax positions related to prior years						—
Balance at December 31						$	666

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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