Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Actual income tax expense (benefit) for the three months ended March 31, 2017 and 2016 varies from the amount that would result by applying the applicable statutory federal income tax rate of 34% to income before income taxes as summarized in the following table:

	As of March 31,
	2017		2016
Income tax benefit at statutory income tax rate		130	$	(576	)
State income tax (net of federal tax benefit)		2		(5	)
Other		3		3
Income tax benefit	$	135	$	(578	)

The Company carries a net deferred income tax asset of $268 and $420 at March 31, 2017 and December 31, 2016, respectively, all of which the Company believes is more likely than not to be fully realized based upon management’s assessment of future taxable income. Significant components of the Company’s net deferred tax assets are as follows:

	March 31, 2017		December 31, 2016
Deferred income tax assets:
Loss and loss adjustment expense reserves	$	36	$	35
Unearned premium reserves		1,474		1,503
Net operating loss carryforwards		187		235
Share-based compensation		268		316
Other		263		270
Deferred income tax assets	$	2,228	$	2,359
Deferred income tax liabilities:
Deferred policy acquisition costs	$	1,505	$	1,492
State deferred taxes		392		397
Other		63		50
Deferred income tax liabilities	$	1,960	$	1,939
Net deferred income tax assets	$	268	$	420

As of March 31, 2017, the Company had no unrecognized tax benefits. The Company analyzed its tax positions in accordance with the provisions of Accounting Standards Codification Topic 740, Income Taxes, and has determined that there are currently no uncertain tax positions. The Company generally recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense (benefit).