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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The following table summarizes the components of income tax expense:

		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Current income tax expense:
Foreign		$	41			$	14			$	4
U.S. Federal			374				2,207				422
Total current income tax expense			415				2,221				426
Deferred income tax expense:
U.S. Federal			11,300				5,326				2,395
Total deferred income tax expense			11,300				5,326				2,395
Total income tax expense		$	11,715			$	7,547			$	2,821

Difference Between Actual Income Tax Expense and Differences from the Income Tax Calculated at the Statutory U S Federal Tax Rate

The following table summarizes the differences between the actual income tax expense and differences from the income tax calculated at the statutory U.S. federal tax rate:

		Years Ended December 31,
		2024								2023								2022
(Dollars in thousands)		Amount				% of Pre- Tax Income				Amount				% of Pre- Tax Income				Amount				% of Pre- Tax Income
U.S. federal income tax at statutory rate		$	11,541				21.0	%		$	6,925				21.0	%		$	414				21.0	%
Adjustments:
Non-deductible executive compensation			420				0.7				1,753				5.3				—				—
Dividend exclusion			(61	)			(0.1	)			(76	)			(0.2	)			(89	)			(4.5	)
Meals & entertainment			56				0.1				—				—				—				—
Change in tax status			—				—				—				—				700				35.5
Parent income treated as partnership for tax			(934	)			(1.7	)			(1,260	)			(3.8	)			2,156				109.4
Transaction costs			653				1.2				—				—				—				—
Other			40				0.1				205				0.6				(360	)			(18.3	)
Income tax expense		$	11,715				21.3	%		$	7,547				22.9	%		$	2,821				143.1	%

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, 2024 and 2023 are presented below:

(Dollars in thousands)		2024				2023
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses		$	9,429			$	9,668
Unearned premiums			7,564				7,472
Net operating loss carryforward			4,352				16,540
Partnership K1 basis differences			943				753
Capital loss carryforwards			4,546				4,241
Investment impairments			390				337
Stock options			462				416
Stat-to-GAAP reinsurance reserve			1,668				1,668
Unrealized loss on securities available-for-sale			2,526				5,583
Depreciation and amortization			—				1,368
Software			1,045				1,260
Intangible assets			3,805				—
Goodwill			172				—
Other			1,799				998
Total deferred tax assets			38,701				50,304
Deferred tax liabilities:
Intangible assets			2,961				3,036
Deferred acquisition costs			8,639				8,914
Bond discount			3,989				1,550
Other			653				2
Total deferred tax liabilities			16,242				13,502
Total net deferred tax assets		$	22,459			$	36,802

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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
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-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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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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