Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Total income taxes were allocated as follows:

	Year Ended December 31
	2025			2024
Total tax expense (benefit) on income	$	1,704		$	(232	)
Tax expense (benefit) on components of shareholders’ equity:
Unrealized gains and losses on available-for-sale fixed maturity securities, including reclassification adjustments		1,590			(689	)
LDTI future policy benefit discount-rate remeasurement, net of the related reinsurance-recoverable effect		(259	)		1,843
Total tax expense on components of shareholders’ equity		1,331			1,154
Total tax expense	$	3,035		$	922

Reconciliation of Income Tax Expense (Benefit)

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as follows:

	Year Ended December 31
	2025			2024
Federal income tax provision at the statutory rate	$	1,621		$	(342	)
Statutory rate		21	%		21	%

Dividends-received deduction		(25	)		(25	)
Meals and entertainment		70			77
Vested stock and club dues		10			3
Parking disallowance		25			20
Adjustment for prior years’ estimates to actual		3			35
Income tax expense (benefit)	$	1,704		$	(232	)
Effective tax rate		22.1	%		14.3	%

State income taxes, net of federal income tax effect⁽¹⁾⁽²⁾		187			213

⁽¹⁾ State income taxes were paid to various states and are included in general and administrative expenses in the Consolidated Statement of Operations.

⁽²⁾ State taxes in Florida made up the majority of the tax effect in this category.

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities at December 31, 2025 and 2024 were comprised of the following:

	2025			2024
Deferred tax assets:
Deferred acquisition costs	$	11,098		$	10,264
Net unrealized investment losses		1,815			3,303
Impaired assets		894			791
Bad debts and other		303			207
Net operating loss		1,503			1,945
Other		37			1,324
Total deferred tax assets		15,650			17,834
Deferred tax liabilities:
Deferred and uncollected premiums	$	(348	)	$	(738	)
Insurance reserves		(258	)		(1,126	)
Total deferred tax liabilities		(606	)		(1,864	)
Net deferred tax asset	$	15,044		$	15,970

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were:

	Year Ended December 31
	2025			2024
Federal
Current U.S. income tax expense	$	2,109		$	1,124
Deferred U.S. income tax expense (benefit)		(405	)		(1,356	)
	$	1,704		$	(232	)