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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

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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.

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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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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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