Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

A summary of income tax (benefit) expense is as follows:

	Years Ended December 31,
	2022			2021		2020
Current:
Federal	$	(3,853	)	$	2,332	$	1,089
State		(275	)		415		30
Foreign		194			102		106
Total current taxes		(3,934	)		2,849		1,225
Deferred:
Federal		(7,828	)		489		6,694
State		(2,023	)		653		1,436
Foreign		(30	)		—		(7	)
Total deferred taxes		(9,881	)		1,142		8,123
Income tax (benefit) expense	$	(13,815	)	$	3,991	$	9,348

Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate

The reasons for the differences between the statutory federal income tax rate and the effective tax rate are summarized as follows:

	Years Ended December 31,
	2022						2021						2020
	Amount			%			Amount			%			Amount			%
Income taxes at statutory rate	$	(14,368	)		21.0		$	2,359			21.0		$	7,755			21.0
(Decrease) increase in income taxes    resulting from:
State income taxes, net of federal    tax benefits		(2,812	)		4.1			402			3.6			1,364			3.7
Effects of tax rate changes		—			—			437			3.9			—			—
Stock-based compensation		(431	)		0.6			(298	)		(2.7	)		(296	)		(0.8	)
Non-deductible executive compensation		1,252			(1.8	)		1,008			9.0			757			2.0
Change in valuation allowance		2,549			(3.7	)		—			—			—			—
Other		(5	)		—			83			0.7			(232	)		(0.6	)
Income tax (benefit) expense	$	(13,815	)		20.2		$	3,991			35.5		$	9,348			25.3

Significant Components of Net Deferred Income Tax Liabilities

Significant components of the Company’s net deferred income tax liabilities are as follows:

	December 31,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	13,883		$	—
Unearned premiums		12,588			14,174
Losses and loss adjustment expenses		3,013			2,591
Stock-based compensation		1,570			1,660
Prepaid expenses		—			658
Unearned revenue		426			237
Net unrealized investment losses		428			—
Basis difference related to convertible senior notes		300			169
Accrued expenses		163			110
Credit losses		244			151
Organizational costs		128			102
Bad debt reserve		44			56
Other		85			—
Total deferred tax assets		32,872			19,908
Valuation allowance		(2,549	)		—
Total deferred tax assets, net of valuation allowance		30,323			19,908
Deferred tax liabilities:
Gain on involuntary conversion		(12,500	)		(9,202	)
Deferred policy acquisition costs		(12,156	)		(15,089	)
Intangible assets		(1,878	)		(2,450	)
Basis difference related to partnership investments		(2,942	)		(1,313	)
Prepaid expenses		(703	)		—
Net unrealized investment gains		—			(1,539	)
Property and equipment		(1,515	)		(1,511	)
Other		(333	)		(543	)
Total deferred tax liabilities		(32,027	)		(31,647	)
Net deferred tax liabilities	$	(1,704	)	$	(11,739	)