Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Schedule of federal income tax expense (benefit)

	Years Ended
	December 31,
	2018		2017		2016
		(in thousands)
Current	$	(6)	$	11	$	—
Deferred		—		1,134		(337)
Income tax expense (benefit)	$	(6)	$	1,145	$	(337)

Schedule of deferred tax assets and liabilities

	December 31,
	2018		2017
	(in thousands)
Deferred tax assets:
Losses and LAE reserve discount	$	22	$	22
Net operating losses		702		1,476
Investment amortization		119		119
Unearned premiums		1,914		2,469
Capitalized organizational costs		304		334
Unrealized losses on investments		505		—
Other		306		457
Total deferred tax assets	$	3,872	$	4,877
Deferred tax liabilities:
Deferred acquisition costs	$	(2,127)	$	(3,184)
Unrealized gains on investments		—		(734)
Other		(68)		(12)
Total deferred tax liabilities		(2,195)		(3,930)
Net deferred tax asset before valuation allowance		1,677		947
Valuation allowance		(1,677)		(947)
Total net deferred tax assets	$	—	$	—

Schedule of effective tax rate

	Years Ended December 31,
	2018				2017				2016
	($ in thousands)
Expense computed at federal tax rate	$	3,825	21.00	%	$	1,675	34.00	%	$	2,135	34.00	%
Non‑U.S. group member income		(4,409)	(24.21)	%		(1,632)	(33.12)	%		(2,093)	(33.34)	%
Dividend received deduction and tax‑exempt interest		(144)	(0.79)	%		(467)	(9.47)	%		(415)	(6.61)	%
Impact of tax reform		—	—			580	11.76	%		—	—
Valuation allowance		678	3.72	%		947	19.23	%		—	—
Other		44	0.24	%		42	0.83	%		36	0.58	%
Income tax expense (benefit)	$	(6)	(0.03)	%	$	1,145	23.23	%	$	(337)	(5.37)	%