Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 15. Income Taxes

Provision for income taxes for the three months ended March 31, 2025, and 2024, were $0.9 million and $0.2 million, respectively, and the effective tax rates for these periods were 19.5% and (1.4)%, respectively. The difference between our effective tax rates for the 2025 and 2024 periods and the U.S. statutory rate of 21% was primarily due to a full valuation allowance related to our net deferred tax assets.

Our income tax provision for the three months ended March 31, 2025 includes the recognition of deferred federal income tax expense of $0.9 million which was recognized in conjunction with the formation of the Reciprocal and subsequent sale of HOA to the Reciprocal. The deferred tax expense associated with this event is driven by changes to our scheduled reversal of deferred tax liabilities and assets, which is a function of the underlying impact the event has on our Federal consolidated income tax filing group.