Income Taxes |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2025 | |||
| Income Tax Disclosure [Abstract] | |||
| Income Taxes |
AIIG and its non-insurance subsidiaries, are included in a single partnership return for United States federal and state income tax purposes and are not subject to United States income tax. AIICFL is organized as a corporation and is a taxable entity. Consequently, the taxable income of AIIG and its non-insurance subsidiaries is reported to its members for inclusion in the respective income tax returns. The Company’s LLC Operating Agreement requires distributions to members in order for each member to pay federal income taxes that may be owed by them due to the taxable income attributable to them from their interests in the Company. During the three months ended March 31, 2025 and 2024, the Company recorded approximately $4,813 and $1,201, respectively, of income tax expense, which resulted in effective tax rates of 11.2% and 9.0%, respectively. The Company has evaluated the circumstances for the three months ended March 31, 2025 and 2024, respectively, and determined that it is unable to make a reliable estimate of its ordinary income or related tax expense for the fiscal year. Therefore, the Company has calculated the income tax expense for the three months ended March 31, 2025 and 2024, respectively, based on the discrete effective tax rate. The Company’s estimated effective tax rate differs from the statutory federal tax rate due to state and income taxes as well as certain nondeductible and tax-exempt items.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. As of December 31, 2024, management concluded, based on the evaluation of the positive and negative evidence, that it is more likely than not that the deferred tax assets will be realized and therefore no valuation allowance on the Company’s deferred tax assets is required. 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. |