Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

A summary of income tax expense (benefit) is as follows:

	Years Ended December 31,
	2023			2022			2021
Current:
Federal	$	23,997		$	(3,853	)	$	2,332
State		5,431			(275	)		415
Foreign		67			194			102
Total current taxes		29,495			(3,934	)		2,849
Deferred:
Federal		(738	)		(7,828	)		489
State		(365	)		(2,023	)		653
Foreign		1			(30	)		—
Total deferred taxes		(1,102	)		(9,881	)		1,142
Income tax expense (benefit)	$	28,393		$	(13,815	)	$	3,991

Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate

The reasons for the differences between the statutory federal income tax rate and the effective tax rate are summarized as follows:

	Years Ended December 31,
	2023						2022						2021
	Amount			%			Amount			%			Amount			%
Income taxes at statutory rate	$	24,706			21.0		$	(14,368	)		21.0		$	2,359			21.0
Increase (decrease) in income taxes    resulting from:
State income taxes, net of federal    tax benefits		4,951			4.2			(2,812	)		4.1			402			3.6
Effects of tax rate changes		(155	)		(0.1	)		—			—			437			3.9
Stock-based compensation		(49	)		—			(431	)		0.6			(298	)		(2.7	)
Non-deductible executive compensation		1,035			0.9			1,252			(1.8	)		1,008			9.0
Change in valuation allowance		(2,549	)		(2.2	)		2,549			(3.7	)		—			—
Other		454			0.3			(5	)		—			83			0.7
Income tax expense (benefit)	$	28,393			24.1		$	(13,815	)		20.2		$	3,991			35.5

Significant Components of Net Deferred Income Tax Liabilities

Significant components of the Company’s net deferred income tax assets (liabilities) are as follows:

	December 31,
	2023			2022
Deferred tax assets:
Unearned premiums	$	19,378		$	12,588
Losses and loss adjustment expenses		3,331			3,013
Stock-based compensation		1,878			1,570
Unearned revenue		1,089			426
Net unrealized investment losses		732			428
Basis difference related to convertible senior notes		516			300
Accrued expenses		175			163
Credit losses		156			244
Organizational costs		116			128
Bad debt reserve		16			44
Net operating loss carryforwards		—			13,883
Other		17			85
Total deferred tax assets		27,404			32,872
Valuation allowance		—			(2,549	)
Total deferred tax assets, net of valuation allowance		27,404			30,323
Deferred tax liabilities:
Gain on involuntary conversion		(11,460	)		(12,500	)
Deferred policy acquisition costs		(11,272	)		(12,156	)
Basis difference related to partnership investments		(2,249	)		(2,942	)
Prepaid expenses		(573	)		(703	)
Intangible assets		(541	)		(1,878	)
Property and equipment		(271	)		(1,515	)
Other		(526	)		(333	)
Total deferred tax liabilities		(26,892	)		(32,027	)
Net deferred tax assets (liabilities)	$	512		$	(1,704	)