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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The Company’s income before provision for income taxes consisted of the following:
| Year Ended December 31,
| 2025 |  | 2024
U.S. | $87,954 |  | $46,505
Foreign | 27,103 |  | 4,534
Income before provision for income taxes | $115,057 |  | $51,039
The following table summarizes the provision for income taxes:
| Year Ended December 31,
| 2025 |  | 2024
Current: |  |  |
Federal | $17,228 |  | $9,757
State | 4,306 |  | 2,931
Foreign | 4,427 |  | 952
Total current tax expense | 25,961 |  | 13,640
Deferred: |  |  |
Federal | (8,267) |  | (1,943)
State | (2,258) |  | (400)
Foreign | — |  | —
Total deferred income tax expense | $(10,525) |  | $(2,343)
Total income tax expense | $15,436 |  | $11,297
Effective tax rate | 13.4% |  | 22.1%
Summary of Provision for Income Taxes and Reconciliation | The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the statutory federal income tax amount and rate to our global effective tax amount and rate for the year ended December 31, 2025:
| Year Ended December 31, 2025
| Amount |  | Rate
Income tax expense computed at U.S. federal statutory rates | $24,162 |  | 21.0%
State income tax expense(1) | 4,191 |  | 3.6
Foreign tax effects: |  |  |
Bermuda | (4,427) |  | (3.8)
Other foreign jurisdictions | — |  | —
Effects of cross-border tax laws: |  |  |
Subpart F income inclusion | 4,427 |  | 3.8
Foreign tax credit | — |  | —
Other | — |  | —
Tax credits: |  |  |
Research and development credit | — |  | —
Changes in valuation allowances | — |  | —
Nontaxable or nondeductible items: |  |  |
IRC Section 162(m) executive compensation | 2,061 |  | 1.8
Tax status change of nontaxable entity | (9,722) |  | (8.4)
Nontaxable entity activity | (5,791) |  | (5.0)
Other | 323 |  | 0.3
Changes in unrecognized tax benefits | — |  | —
Other adjustments | 212 |  | 0.2
Income tax expense at global effective rate | $15,436 |  | 13.4%
(1)The state that contributes to the majority (greater than 50%) of the tax effect in this category is Florida. The following table presents the required disclosures prior to our adoption of ASU 2023-09 and reconciles the statutory federal income tax rate to the actual global effective tax rate for the year ended December 31, 2024:
| Year Ended December 31, 2024
| Amount |  | Rate
Income tax expense computed at U.S. federal statutory rates | $10,718 |  | 21.0%
State income tax expense | 1,840 |  | 3.6
Loss of partnerships and other pass-through entities | (1,851) |  | (3.6)
Nondeductible items | 37 |  | 0.1
Other | 553 |  | 1.1
Income tax expense at effective rate | $11,297 |  | 22.1%
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows:
| December 31,
| 2025 |  | 2024
Deferred tax assets |  |  |
Unpaid losses and loss adjustment expense | $900 |  | $671
Unearned premiums | 9,936 |  | 7,772
Net unrealized losses on investments | — |  | 118
Unearned revenue | 25,688 |  | —
Capital loss carryforward | — |  | 1
Change in ROU liabilities | 115 |  | —
Other | 203 |  | 12
Total deferred tax assets | 36,842 |  | 8,574
Valuation allowance | — |  | —
Net deferred tax assets | 36,842 |  | 8,574
Deferred tax liabilities: |  |  |
Deferred policy acquisition costs | (22,399) |  | (5,272)
Fixed assets | (1,408) |  | —
Excess ceding commission | (2,575) |  | (3,971)
Prepaid expenses | (472) |  | —
Policy acquisition costs | (592) |  | —
Net unrealized gains on investments | (649) |  | —
Accrued expenses | 51 |  | —
Change in ROU assets | (113) |  | —
Other | (49) |  | (453)
Total deferred tax liabilities | (28,206) |  | (9,696)
Net deferred tax liabilities | $8,636 |  | $(1,122)
Summary of Income Taxes Paid | The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025, and has included the following table as a result of adoption, which presents income taxes paid (net of refunds received) for the year ended December 31, 2025:
| Year Ended December 31, 2025
Federal | $27,685
State: |
Florida(1) | 7,615
Other states | 35
Foreign taxes: |
Bermuda | —
Total cash paid for income taxes | $35,335
(1)Florida is the only state that represents taxes paid that were greater than 5% of total taxes paid. The following table summarizes the income taxes paid for the year ended December 31,2024:
| Year Ended December 31, 2024
Cash paid during the year for: |
Income taxes, net of refunds | $1,000

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