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Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue
 12 Months Ended
Dec. 31, 2022
Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue  
Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Note 8 - Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

 

Deferred policy acquisition costs incurred and policy-related ceding commission revenue are deferred and amortized to income on property and casualty insurance business as follows:

 

 

 

 Years ended

 

 

 

 December 31,

 

 

 

 2022

 

 

 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred policy acquisition costs, net of deferred ceding commission revenue, beginning of year

 

$12,490,479

 

 

$20,048,996

 

 

 

 

 

 

 

 

 

 

Cost incurred and deferred:

 

 

 

 

 

 

 

 

Commissions and brokerage

 

 

36,354,386

 

 

 

35,128,938

 

Other underwriting and policy acquisition costs

 

 

9,154,706

 

 

 

8,841,557

 

Ceding commission revenue

 

 

(7,236,720)

 

 

(7,257,909)

Net deferred policy acquisition costs

 

 

38,272,372

 

 

 

36,712,586

 

Additional deferred ceding commission revenue due to inception of quota share

 

 

-

 

 

 

(9,686,577)

Amortization

 

 

(37,562,967)

 

 

(34,584,526)

 

 

 

709,405

 

 

 

(7,558,517)

 

 

 

 

 

 

 

 

 

Net deferred policy acquisition costs, net of deferred ceding commission revenue, end of year

 

$13,199,884

 

 

$12,490,479

 

Deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2022 and 2021 are as follows:

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

Deferred policy acquisition costs

 

$23,819,453

 

 

$22,238,987

 

Deferred ceding commission revenue

 

 

(10,619,569)

 

 

(9,748,508)

Balance at end of period

 

$13,199,884

 

 

$12,490,479