Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth the components of the Company’s income tax expense for the years ended December 31, 2024, 2023 and 2022:



($ in thousands)	2024		2023		2022
Current income tax expense	$	42,626	$	14,736	$	120
Deferred tax (benefit) expense related to temporary differences	(8,715)		9,382		10,267
Total income tax expense	$	33,911	$	24,118	$	10,387

Schedule of Effective Income Tax Rate Reconciliation

The following table sets forth the differences between income taxes expected at the federal statutory income tax rate of 21% and the reported income tax expense for the years ended December 31, 2024, 2023 and 2022:



	2024				2023				2022
($ in thousands)	Amount		Percentage		Amount		Percentage		Amount		Percentage
Income tax expense at federal statutory rate	$	32,075	21.0	%	$	23,121	21.0	%	$	10,454	21.0	%
Tax advantaged investments	(239)		(0.2)		(295)		(0.3)		(324)		(0.7)
Other	2,075		1.4		1,292		1.2		257		0.6
Total income tax expense	$	33,911	22.2	%	$	24,118	21.9	%	$	10,387	20.9	%

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2024 and 2023:



($ in thousands)	2024		2023
Deferred tax assets:
Unearned premiums	$	18,178	$	15,365
Losses and loss adjustment expenses	16,967		11,581
Net operating losses	9,389		10,655


Unrealized losses on fixed maturity securities, available-for-sale	5,893		6,113
Stock options/awards	2,453		1,714
Other	6,067		4,237
Total deferred tax assets	58,947		49,665
Less valuation allowance	(586)		(586)
Total deferred tax assets after valuation allowance	58,361		49,079
Deferred tax liabilities:
Deferred policy acquisition costs	15,277		11,528
Unrealized gains on equity securities	4,818		3,243
Other long-term investments	2,625		6,460
Depreciation	1,426		1,260
Section 481(a) adjustment	1,391		3,477


Other	2,338		1,120
Total deferred tax liabilities	27,875		27,088
Deferred income taxes	$	30,486	$	21,991