Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2026

Deferred Policy Acquisition Costs Disclosures [Abstract]

5. Deferred Policy Acquisition Costs

The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the three months ended March 31, 2026 and 2025. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (dollars in thousands):


	Three Months Ended March 31,
	2026			2025
Balance at beginning of period	$	2,696		$	6,380

Deferred policy acquisition costs		1,687			2,944
Amortization of policy acquisition costs		(1,558	)		(2,677	)
Net change		129			267

Balance at end of period	$	2,825		$	6,647