Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

The income tax expense (benefit) is comprised of the following (dollars in thousands):

	Year Ended December 31,
	2024			2023
Current tax expense (benefit)	$	(1,840	)	$	(681	)
Deferred tax expense (benefit)		—			328
Total income tax expense (benefit)	$	(1,840	)	$	(353	)

Summary of Income Tax Expense (Benefit) Reconciliation

The income tax expense (benefit) differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% in 2024 and 2023 to pretax income as a result of the following (dollars in thousands):

	Year Ended December 31,
	2024			2023
Income (loss) before income taxes	$	(36,080	)	$	(27,632	)
Statutory U.S. federal income tax rate		(7,577	)		(5,803	)
State income taxes, net of federal benefit		2,753			(1,609	)
Tax‑exempt investment income and dividend received deduction		(9	)		(13	)
Nondeductible meals and entertainment		43			73
Valuation allowance on deferred tax assets		2,708			7,026
Deferred corrections		2			139
Other		240			(166	)
Income tax expense (benefit)	$	(1,840	)	$	(353	)
Effective tax rate		5.1	%		1.3	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands):

	December 31,
	2024			2023
Deferred tax assets:
Discounted unpaid losses and loss adjustment expenses	$	1,774		$	1,749
Unearned premiums		1,079			1,648
Net operating loss carryforwards		13,647			16,960
Net unrealized losses on investments		2,603			2,780
State net operating loss carryforwards		3,890			6,523
Other		218			112
Gross deferred tax assets		23,211			29,772
Less valuation allowance		(19,747	)		(28,013	)
Total deferred tax assets, net of allowance		3,464			1,759
Deferred tax liabilities:
Investment basis difference		348			208
Tax rate change transition discounting		45			92
Deferred policy acquisition costs		909			1,320
Installment sale gain		1,816
Deferred intercompany gain		141
Intangible assets		115			115
Property and equipment		—			24
Other		90			—
Total deferred tax liabilities		3,464			1,759
Net deferred tax liability	$	—		$	—