Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Reconciliation of the Difference Between Federal Income Tax Provision (Benefit) and Expected Tax Provision (Benefit)

A reconciliation of the difference between the Company’s total income tax provision and the expected tax provision using the U.S. Federal statutory tax rate of 21% is as follows:


	Year Ended December 31,
	2025				2024				2023
(Amounts in thousands)	Amount		%		Amount		%		Amount		%
Federal income tax expense (benefit) at statutory rate	$	10,614	21.0	%	$	(14,935)	21.0	%	$	18,252	21.0	%
Net U.S. state and local income tax expense	536		1.1	%	115		(0.2)	%	316		0.4	%
Bermuda and U.S. statutory tax rate difference	3,004		5.9	%	6,531		(9.2)	%	6,923		8.0	%
Research and development tax credits	(272)		(0.5)	%	(267)		0.4	%	(936)		(1.1)	%
Tax-exempt investment income	(218)		(0.4)	%	(216)		0.3	%	(230)		(0.3)	%
Dividends received deduction	(325)		(0.6)	%	(461)		0.7	%	(386)		(0.4)	%
Excess tax expense on share based compensation	984		1.9	%	740		(1.0)	%	449		0.5	%
Provision to return and amended tax returns	21		—	%	393		(0.6)	%	725		0.8	%
Excess §162(m) compensation	312		0.6	%	399		(0.6)	%	522		0.6	%
Business interest expense from Domestication	(14,078)		(27.9)	%	—		—	%	—		—	%
Other	145		0.3	%	67		(0.1)	%	70		0.1	%
Total income tax expense (benefit)	$	723	1.4	%	$	(7,634)	10.7	%	$	25,705	29.6	%

Schedule of Net Deferred Tax Asset

The significant components of net deferred tax assets at the corporate income tax rate of 21% for the years ended December 31, 2025 and 2024 are summarized as follows:


	December 31,
	2025		2024
	(in thousands)
Deferred tax assets:
Accrued compensation expenses	$	3,838	$	3,696
Reserve for losses and loss adjustment expenses	39,211		32,823
Unearned premiums	10,257		11,580
Share based compensation	1,042		1,543
Allowance for credit losses	4,731		4,496
Invested assets	—		1,124
Business interest expense	14,078		—
Net unrealized losses	8,806		18,595
Other	907		4,466
Total deferred tax assets	82,870		78,323
Deferred tax liabilities:
Intangible assets	6,686		6,709
Deferred policy acquisition costs	6,570		6,337
Invested assets	489		—
Equity method investments	2,813		2,792
Other	1,416		1,315
Total deferred tax liabilities	17,974		17,153
Net deferred tax assets	$	64,896	$	61,170