Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Deferred Policy Acquisition Costs

4.Deferred Policy Acquisition Costs

Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or the renewal of existing insurance policies. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance policy.

We also defer a portion of employee total compensation costs directly related to time spent performing specific acquisition or renewal activities.

These costs are deferred and expensed over the life of the related policies. Major categories of the Company’s deferred policy acquisition costs are summarized as follows:

	December 31,
	2025		2024
	(in thousands)
Agents’ commissions	$	14,733	$	13,466
Premium taxes		3,074		2,828
Deferred underwriting expenses		3,278		2,857
Total deferred policy acquisition costs	$	21,085	$	19,151

The following table summarizes the activity in the deferred policy acquisition costs:

	Year Ended December 31,
	2025			2024			2023
	(in thousands)
Balance, beginning of year	$	19,151		$	17,975		$	17,401
Policy acquisition costs deferred		46,158			43,348			41,433
Amortization expense during the year		(44,224	)		(42,172	)		(40,859	)
Balance, end of year	$	21,085		$	19,151		$	17,975