Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Allocation of Total Income Taxes

Total income taxes were allocated as follows:

	2023			2022
Total tax expense (benefit) on income	$	(394	)	$	571
Tax expense (benefit) on components of shareholders’ equity:
Net unrealized income (losses) on investment securities		1,602			(10,589	)
Total tax expense (benefit)	$	1,208		$	(10,018	)

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense (benefit) is as follows:

	2023			2022
Federal income tax provision at the statutory rate	$	(119	)	$	440
Statutory rate		21	%		21	%
Dividends-received deduction		(24	)		(24	)
Meals and entertainment		15			61
Vested stock and club dues		16			14
Parking disallowance		17			17
Penalties and fines		—			149
Adjustment for prior years’ estimates to actual		(299	)		(86	)
Income tax expense (benefit)	$	(394	)	$	571
Effective tax rate		69.7	%		27.2	%

Deferred Tax Liabilities and Assets

Deferred tax assets and liabilities at December 31, 2023 and 2022 were comprised of the following:

	2023			2022
Deferred tax assets:
Deferred acquisition costs	$	8,808		$	7,953
Net unrealized investment losses		3,342			4,489
Insurance reserves		2,898			1,597
Impaired assets		791			791
Bad debts and other		337			252
Net operating loss		559			—
Total deferred tax assets		16,735			15,082
Deferred tax liabilities:
Deferred and uncollected premiums	$	(1,053	)	$	(835	)
Net unrealized investment gains		—			—
Other		—			(84	)
Total deferred tax liabilities		(1,053	)		(919	)
Net deferred tax asset	$	15,682		$	14,163

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were:

	2023			2022
Current – Federal	$	2,727		$	2,390
Deferred – Federal		(3,121	)		(1,819	)
Total	$	(394	)	$	571