Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 17 -- Income Taxes A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. The Company evaluates the realizability of its deferred tax assets each quarter, and as of March 31, 2025, based on all of the available evidence, management concluded that it is more likely than not that the deferred tax assets will be realized other than a valuation allowance on the sale of TTIC by Exzeo to HCI in the amount of $544 related to the deferred intercompany taxable loss that arose during the third quarter of 2024. The Company did not have a valuation allowance established as of March 31, 2024. During the three months ended March 31, 2025 and 2024, the Company recorded approximately $26,109 and $20,474 of income tax expense, respectively, resulting in effective tax rates of 26.0% and 26.4%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to a higher prior year effect tax rate resulting from certain non-deductible compensation expense for the first quarter of 2024. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |