Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table summarizes the provision for income taxes:

	Year Ended December 31,
	2025		2024		2023
Federal:
Current	$	21,289	$	17,992	$	11,798
Deferred		7,388		401		(2,908	)
Provision for Federal income tax expense		28,677		18,393		8,890
State:
Current		4,379		4,446		3,128
Deferred		2,896		957		(2,562	)
Provision for State income tax expense		7,275		5,403		566
Provision for income taxes	$	35,952	$	23,796	$	9,456

Income tax expense is included in the financial statements as follows:

	Year Ended December 31,
	2025		2024			2023
Continuing operations	$	35,939	$	25,340		$	10,876
Discontinued operations		13		(1,544	)		(1,420	)
Reported income tax provision	$	35,952	$	23,796		$	9,456

Tax Expense Reconciliation

The actual income tax expense attributable to continuing operations differs from the expected income tax expense attributable to continuing operations computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows:

	Year Ended December 31,
	2025						2024						2023
	Amount			Percent			Amount			Percent			Amount			Percent
Pretax income
United States	$	104,127					$	89,659					$	77,220
Foreign		38,607						12,000						18,860
Total pretax income		142,734						101,659						96,080
US federal statutory tax rate		29,974			21.0	%		21,348			21.0	%		20,176			21.0	%
State and local income tax, net of federal income tax effect(1)		6,353			4.5			4,550			4.5			1,032			1.1
Foreign tax effects
Bermuda
Foreign tax statutory exemption		7			—			(56	)		(0.1	)		(188	)		(0.2	)
Cayman Islands
Foreign rate differential(2)		(8,114	)		(5.7	)		(2,464	)		(2.4	)		(3,773	)		(3.9	)
Effects of cross-border tax laws
US tax on foreign insurance income		8,107			5.7			2,520			2.5			3,961			4.1
Changes in valuation allowance		(17,810	)		(12.5	)		(8,881	)		(8.7	)		(10,678	)		(11.1	)
Nontaxable or nondeductible items
Unrealized gain on outside basis of subsidiary		16,819			11.8			8,970			8.8			—			—
Other items		603			0.4			(647	)		(0.7	)		346			0.3
Reported income tax expense	$	35,939			25.2	%	$	25,340			24.9	%	$	10,876			11.3	%

(1) For the years ended December 31, 2025 and 2023, the state of Florida makes up the majority (greater than 50%) of our state and local income tax effects. For the year ended December 31, 2024, the states of Florida and Louisiana make up the majority (greater than 50%) of our state and local income tax effects.

(2) The foreign rate differential is calculated by taking pretax net income times the foreign tax rate less the US federal statutory rate. For the years ended December 31, 2025, 2024, and 2023, our foreign tax rate is 0% and the US federal statutory rate is 21%. For the years ended December 31, 2025, 2024 and 2023, our pretax income related to the Cayman Islands is $38,639,000, $11,732,000, and $17,966,000, respectively.

Schedule of Deferred Tax Assets and Liabilities

The table below summarizes the significant components of our net deferred tax asset (liability):

	December 31,
	2025			2024
Deferred tax assets:
Unearned premiums	$	7,019		$	6,985
Unrealized loss		244			3,575
Tax-related discount on loss reserve		275			620
R&D tax credit carryforward		1,610			1,610
Investments		2,712			2,592
Bad debt expense		328			848
Equity compensation		1,143			797
Dual consolidated loss carryforward		4,406			4,737
Net operating loss carryforward		1,702			7,740
Outside basis in subsidiary		12,360			32,138
Other		114			1,205
Total pre-allowance deferred tax assets		31,913			62,847
Valuation allowance		(20,246	)		(43,212	)
Total deferred tax assets		11,667			19,635
Deferred tax liabilities:
Deferred acquisitions costs		(17,668	)		(14,108	)
Intangible assets		(842	)		(1,616	)
Prepaid expenses		(487	)		(472	)
Investments		(67	)		(131	)
Fixed assets		(155	)		(377	)
Total deferred tax liabilities		(19,219	)		(16,704	)
Net deferred tax asset (liability)	$	(7,552	)	$	2,931

Net deferred tax asset (liability) is included in the financial statements as follows:

	Year Ended December 31,
	2025			2024
Continuing operations	$	(7,552	)	$	2,931
Discontinued operations		—			—
Net deferred tax asset (liability)	$	(7,552	)	$	2,931

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2025:

	December 31, 2025
Balance at January 1	$	666
Decrease based on tax positions related to prior years		—
Balance at December 31	$	666