Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Summary of income tax expense in the Consolidated Statements of Operations

	Years Ended December 31,
	2022		2021		2020
Current Income Taxes:
Federal	$	21,317	$	28,222	$	31,133
State		74		15		267
		21,391		28,237		31,400
Deferred Income Taxes:
Federal		(8,371)		5,323		5,159
State		—		—		—
		(8,371)		5,323		5,159
Total income tax expense	$	13,020	$	33,560	$	36,559

Schedule of sources of the difference and the tax effects

	Years Ended December 31,
	2022		2021		2020
Federal income tax expense at statutory rate	$	12,512	$	34,496	$	36,702
Investment income, net		(559)		(1,060)		(1,394)
State taxes, net		58		11		211
Nondeductible expenses		468		613		697
Tax related to share-based stock compensation		222		(101)		(298)
Other, net		319		(399)		641
Total income tax expense	$	13,020	$	33,560	$	36,559

Schedule of deferred income tax asset (liability) representing the tax effects of temporary differences attributable to the Company's consolidated federal tax return group

	Years Ended December 31,
	2022		2021
Deferred tax assets:
Discounting of loss reserves	$	4,790	$	5,447
Discounting of unearned premium reserve		17,546		16,813
Net unrealized losses on investments		16,917		—
Bad debt allowance		329		430
Employee benefits		4,506		4,364
Rent incentive		684		797
Total deferred tax assets before valuation allowance		44,772		27,851
Valuation allowance for deferred tax assets		—		—
Total deferred tax assets		44,772		27,851
Deferred tax liabilities:
Deferred acquisition costs		(15,872)		(15,335)
Investments		(2,662)		(10,319)
Net unrealized gains on investments		—		(11,025)
Loss reserve transition adjustment		(831)		(1,108)
Software development costs		(2,913)		(3,591)
Premium acquisition expenses		(461)		(380)
Depreciation		(959)		(1,333)
Total deferred tax liabilities		(23,698)		(43,091)
Net deferred tax assets (liability)	$	21,074	$	(15,240)