Employee Benefit Plans

3 Months Ended

Mar. 31, 2025

Employee Benefit Plans

Employee Benefit Plans

Employee Benefit Plans

Bonus Plans

Employee Bonus Plan

For the three months ended March 31, 2025, the Company accrued approximately $123,932 ("Cash Payments") related to an employee bonus plan (the "Bonus Plan"), of which $28,257 is allocated and recorded in loss and LAE, and $95,676 is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income. In addition to the Cash Payments, the Bonus Plan also calls for a restricted stock award to the Company's senior leadership team ("SLT") in an amount up to their Cash Payments if certain performance metrics have been met. The performance metrics for the three months ended March 31, 2025 were not met, and, accordingly, no amount has been accrued for such period for the SLT bonus. For the three months ended March 31, 2024, the Company did not accrue for, or pay, bonuses related to the Bonus Plan.

Executive Bonus Plan

For the three months ended March 31, 2025, the Company accrued approximately $26,000 for a bonus pursuant to the Third Amended Golden Employment Agreement, of which $23,000 is recorded in other underwriting expenses, and $3,000 is recorded in other operating expenses on the accompanying condensed consolidated statements of income and comprehensive income. For the three months ended March 31, 2024, the Company did not accrue for, or pay, bonuses related to the Second Amended Golden Employment Agreement.

401(k) Plan

The Company maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for its qualified employees. The Company matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company incurred approximately $113,000 and $72,000, respectively, of expense for the three months ended March 31, 2025 and 2024, related to the 401(k) Plan, which is recorded in other underwriting expenses on the accompanying condensed consolidated statements of income and comprehensive income.