Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of net deferred tax assets

The components of the net deferred tax assets are as follows ($ in millions):

	December 31,
	2022		2021
Deferred tax assets:
Net operating loss carryforwards	$	262.2	$	127.4
Deferred ceding commission	8.6		7.8
Lease liabilities	5.6		3.4
Unrealized loss on investments	5.5		—
Net unearned premium	5.3		2.6
Stock-based compensation	3.7		2.4
Charitable contribution	1.6		0.9
Startup costs	0.5		0.7
Other	—		0.6
Total gross deferred tax assets	293.0		145.8
Deferred tax liabilities:
Right-of-use assets	(3.8)		(3.3)
Depreciation and amortization	(1.0)		(2.2)
Deferred acquisition costs	(1.4)		(1.3)
Other	(3.8)		—
Total gross deferred tax liabilities	(10.0)		(6.8)
Valuation allowance	(283.0)		(139.0)
Total deferred tax assets, net	$	—	$	—

Loss before tax

Loss before tax consists of the following ($ in millions):

	December 31,
	2022		2021		2020
United States	$	(225.5)	$	(240.3)	$	(123.6)
Foreign	(69.3)		6.7		2.8
Total	$	(294.8)	$	(233.6)	$	(120.8)

Income tax expense

Income tax expense consists of the following ($ in millions):

	December 31,
	2022		2021		2020
Current:
Federal	$	—	$	—	$	—
State	—		—		—
Foreign	3.0		7.7		1.5
Total current	3.0		7.7		1.5
Deferred:
Federal	$	—	$	—	$	—
State	—		—		—
Foreign	—		—		—
Total deferred	—		—		—
Total income tax expense	$	3.0	$	7.7	$	1.5

Unrecognized Tax Benefits Roll Forward

We do not believe it is reasonably possible that our unrecognized tax benefits could increase or decrease within the next 12 months.

Balance at December 31, 2021	$	—
Increase (decrease) on tax positions for prior years	—
Increase (decrease) on tax positions for current year	8.0
Settlements with taxing authorities	—
Reduction due to lapse of the applicable statute of limitations	—
Balance at December 31, 2022	$	8.0

Effective income tax rate reconciliation

A reconciliation of the Company's statutory income tax rate to the Company's effective income tax rate is as follows:

	December 31,
	2022		2021		2020
Income at US statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.5	%	(8.4)	%	12.8	%
Permanent differences	(3.7)	%	(1.7)	%	(1.2)	%
Return to provision	—	%	(0.9)	%	—	%
Foreign rate differential	0.2	%	0.6	%	0.2	%
Valuation allowance	(18.1)	%	(13.7)	%	(33.9)	%
Uncertain tax position	(2.7)	%	—	%	—	%
Other	(0.2)	%	(0.2)	%	(0.1)	%
Total income taxes	(1.0)	%	(3.3)	%	(1.2)	%