XML 63 R49.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income (Loss) before Income Taxes from its Non-U.S. Subsidiaries and U.S. Subsidiaries |
Year Ended December 31, 2020 (Dollars in thousands) |  | Non-U.S. Subsidiaries |  |  | U.S. Subsidiaries |  |  | Eliminations |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 46,654 |  |  | $ | 559,949 |  |  | $ | — |  |  | $ | 606,603 |
Net written premiums |  | $ | 46,654 |  |  | $ | 501,513 |  |  | $ | — |  |  | $ | 548,167 |
Net earned premiums |  | $ | 53,384 |  |  | $ | 514,315 |  |  | $ | — |  |  | $ | 567,699 |
Net investment income |  |  | 17,186 |  |  |  | 20,348 |  |  |  | (9,142 | ) |  |  | 28,392 |
Net realized investment losses |  |  | (3,867 | ) |  |  | (10,795 | ) |  |  | — |  |  |  | (14,662 | )
Other income |  |  | 148 |  |  |  | 1,970 |  |  |  | — |  |  |  | 2,118 |
Total revenues |  |  | 66,851 |  |  |  | 525,838 |  |  |  | (9,142 | ) |  |  | 583,547 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 12,874 |  |  |  | 323,327 |  |  |  | — |  |  |  | 336,201 |
Acquisition costs and other underwriting expenses |  |  | 17,827 |  |  |  | 197,780 |  |  |  | — |  |  |  | 215,607 |
Corporate and other operating expenses |  |  | 23,357 |  |  |  | 18,641 |  |  |  | — |  |  |  | 41,998 |
Interest expense |  |  | 869 |  |  |  | 24,065 |  |  |  | (9,142 | ) |  |  | 15,792 |
Loss on extinguishment of debt |  |  | 3,060 |  |  |  | — |  |  |  | — |  |  |  | 3,060 |
Income (loss) before income taxes |  | $ | 8,864 |  |  | $ | (37,975 | ) |  | $ | — |  |  | $ | (29,111 | )
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit):
|  | Years Ended December 31, |
(Dollars in thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
Current income tax expense: |  |  |  |  |  |  |  |  |
Foreign |  | $ | 4 |  |  | $ | 54 |  |  | $ | — |
U.S. Federal |  |  | 422 |  |  |  | — |  |  |  | 163 |
Total current income tax expense |  |  | 426 |  |  |  | 54 |  |  |  | 163 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 2,395 |  |  |  | 3,395 |  |  |  | (8,268 | )
Total deferred income tax expense (benefit) |  |  | 2,395 |  |  |  | 3,395 |  |  |  | (8,268 | )
Total income tax expense (benefit) |  | $ | 2,821 |  |  | $ | 3,449 |  |  | $ | (8,105 | )
Differences in Tax Provision for Financial Statement Purposes and Expected Tax Provision at Weighted Average Tax Rate | The following table summarizes the differences between the tax provision for financial statement purposes and the expected tax provision at the weighted average tax rate:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
(Dollars in thousands) |  | Amount |  |  | % of Pre- Tax Income |  |  | Amount |  |  | % of Pre- Tax Income |  |  | Amount |  |  | % of Pre- Tax Income |
Expected tax provision at weighted average |  | $ | 414 |  |  |  | 21.0 | % |  | $ | 6,889 |  |  |  | 21.0 | % |  | $ | (7,975 | ) |  |  | 27.4 | %
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax exempt interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2 | ) |  |  | — |
Dividend exclusion |  |  | (89 | ) |  |  | (4.5 | ) |  |  | (78 | ) |  |  | (0.2 | ) |  |  | (202 | ) |  |  | 0.7 |
Non-deductible interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,773 |  |  |  | (6.1 | )
Change in tax status |  |  | 700 |  |  |  | 35.5 |  |  |  | — |  |  |  | — |  |  |  | (1,704 | ) |  |  | 5.8 |
Parent income treated as partnership for tax |  |  | 2,156 |  |  |  | 109.4 |  |  |  | (4,057 | ) |  |  | (12.4 | ) |  |  | (533 | ) |  |  | 1.8 |
Other |  |  | (360 | ) |  |  | (18.3 | ) |  |  | 695 |  |  |  | 2.1 |  |  |  | 538 |  |  |  | (1.8 | )
Effective income tax expense (benefit) |  | $ | 2,821 |  |  |  | 143.1 | % |  | $ | 3,449 |  |  |  | 10.5 | % |  | $ | (8,105 | ) |  |  | 27.8 | %
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets at December 31, 2022 and 2021 are presented below:
(Dollars in thousands) |  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Discounted unpaid losses and loss adjustment expenses |  | $ | 9,522 |  |  | $ | 8,696 |
Unearned premiums |  |  | 10,581 |  |  |  | 11,049 |
Net operating loss carryforward |  |  | 24,454 |  |  |  | 28,584 |
Partnership K1 basis differences |  |  | 1,234 |  |  |  | 795 |
Loss on derivative instruments |  |  | — |  |  |  | 1,763 |
Capital loss carryforwards |  |  | 2,338 |  |  |  | — |
Investment impairments |  |  | 124 |  |  |  | 147 |
Stock options |  |  | 1,465 |  |  |  | 2,008 |
Stat-to-GAAP reinsurance reserve |  |  | 1,668 |  |  |  | 1,517 |
Unrealized loss on securities available-for-sale |  |  | 10,568 |  |  |  | — |
Depreciation and amortization |  |  | 1,211 |  |  |  | 1,613 |
Intercompany transfers |  |  | — |  |  |  | — |
Other |  |  | 1,353 |  |  |  | 1,826 |
Total deferred tax assets |  |  | 64,518 |  |  |  | 57,998 |
Deferred tax liabilities: |  |  |  |  |  |
Intangible assets |  |  | 3,146 |  |  |  | 4,395 |
Unrealized gain on securities available-for-sale and investments in limited partnerships included in accumulated other comprehensive income |  |  | — |  |  |  | 1,601 |
Deferred acquisition costs |  |  | 13,628 |  |  |  | 12,670 |
Partnership K1 basis differences |  |  | — |  |  |  | 1,709 |
Other |  |  | 645 |  |  |  | 294 |
Total deferred tax liabilities |  |  | 17,419 |  |  |  | 20,669 |
Total net deferred tax assets |  | $ | 47,099 |  |  | $ | 37,329 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration