Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

Summary of Gain on Sale of CIS

The gain on sale of CIS is calculated as follows:

Total consideration at closing	$	46,552
First contingent consideration as of August 30, 2024		4,894
Second and third contingent considerations as of August 30, 2024		8,030
Total consideration	$	59,476
Less:
Carrying value of CIS net assets	$	556
Transaction costs and other adjustments		4,339
Gain on sale of CIS	$	54,581

Summary of Discontinued Operations

The major assets and liabilities that comprise the carrying value of CIS’s net assets as of August 30, 2024 are presented as follows:

	August 30, 2024
Cash	$	7,184
Premiums receivable		30,603
Other assets		2,190
Total assets	$	39,977
Less:
Premiums payable	$	33,272
Commissions payable		1,800
Unearned commissions		2,052
Other liabilities		2,297
Total liabilities	$	39,421
Total carrying value of CIS net assets	$	556

Below represents statements of operations of the discontinued operations for the year ended December 31, 2024:

Discontinued Operations
Consolidated Statement of Operations	Year Ended December 31,
	2024
Revenue and Other Income from operations
Commission revenue	$	32,944
Investment income		86
Other income		376
Total revenue and other income from operations		33,406
Expenses
Policy acquisition costs		29,099
Administrative expenses		5,023
Total expenses		34,122
Income (loss) from operations before income taxes		(716	)
Gains from sale and disposal transactions
Gain on sale of CIS		54,581
Gain on sale of SSU		6,459
Gain from sale of renewal rights		—
Total gains from sale and disposal transactions		61,040
Income before income taxes		60,324
Equity earnings (loss) in Affiliate, net of tax		97
Income tax expense (benefit)		1,834
Net income from discontinued operations	$	58,587

The Company’s accounting policy for net cash received from the sale of discontinued operations is to show a cash inflow from investing activities in continuing operations. As such, the Company reflected $54.8 million in proceeds received from the sale of discontinued operations in the investing section of our cash flow for the year ended December 31, 2024.

Below represents statements of cash flows of the discontinued operations for the year ended December 31, 2024:

Discontinued Operations Statement of Cash Flows	Year Ended December 31,
	2024
Cash flows from Operating Activities
Net income from discontinued operations	$	58,587
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Gains on sale of CIS		(54,581	)
Gain on sale of SSU		(6,459	)
Gain from sale of renewal rights		—
Deferred income tax expense		—
Equity (earnings) loss in subsidiary		(97	)
Allocated expense from Corporate		1,147
Other		755
Changes in Assets & Liabilities:
Premiums receivable		(30,598	)
Settlement of intercompany balances		(2,507	)
Change in deferred acquisition costs		1,933
Intercompany receivables		4,154
Other receivables		(1,692	)
Income taxes payable		(655	)
Premiums payable		33,272
Other liabilities		3,463
Net cash provided by (used in) operating activities		6,722
Cash flows from Investing Activities
Cash disposed in CIS sale		(7,184	)
Proceeds from sale of renewal rights		—
Additional true-up Contribution to SSU		—
Net cash provided by (used in) investing activities		(7,184	)
Change in cash from discontinued operations		(462	)
Cash at beginning of period from discontinued operations		462
Cash at end of period from discontinued operations		-