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v3.26.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2026
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company reports results of operations for its reportable segments consistent with the manner in which its chief operating decision maker ("CODM") reviews the business to assess performance and allocate resources. The Company identifies its CODM to be its President and Chief Executive Officer. The Company evaluates the results of its single reportable segment as follows: Insurance operations are evaluated on underwriting results (net premiums earned, ceding commission earned, other income, loss and loss adjustment expenses, commission expense, and other underwriting expenses), equating to the components of the net combined ratio. Investments from the insurance operations are primarily evaluated on net investment income and its return on equity contribution. Net losses on investments, gain on sale of real estate, other operating expenses are corporate expenses, depreciation and amortization, interest expense, and income tax, which are broken out below the insurance operations components of the net combined ratio to return to the consolidated net income. The Company's CODM uses these measures of profit or loss predominantly in the annual budget and forecasting process, considering budget-to-actual variances throughout the year. The CODM also uses these profit measures for evaluating (i) financial performance, (ii) pricing in the Company's insurance operations, and (iii) employee compensation. The Company does not allocate items not included in the net combined ratio. Such items include net losses on investments, gain on sale of real estate, depreciation and amortization, interest expense, corporate expenses included in other operating expenses, and assets to these segments. The Company does not allocate income taxes to its segments. The Company does not manage those segments on after-tax results. The following tables reconcile the revenue and expense components of the net combined ratio to consolidated net (loss) income for the periods presented.
|  |  | Three months ended March 31,
|  |  |  |  | 2026 |  | 2025
Revenue components of net combined ratio |  |  |  |  |  |  |
Net premiums earned |  |  |  |  | $ | 55,868,814 |  |  | $ | 43,523,063 |
Ceding commission revenue |  |  |  |  | 1,403,876 |  |  | 2,958,691 |
Other income |  |  |  |  | 180,789 |  |  | 139,954 |
Total revenue components of net combined ratio |  |  |  |  | 57,453,479 |  |  | 46,621,708 |
Expense components of net combined ratio |  |  |  |  |  |  |
Loss and loss adjustment expenses |  |  |  |  | 45,574,384 |  |  | 27,175,078 |
Commission expense |  |  |  |  | 10,195,412 |  |  | 9,312,880 |
Other underwriting expenses |  |  |  |  | 8,361,273 |  |  | 7,405,422 |
Total expense components of net combined ratio |  |  |  |  | 64,131,069 |  |  | 43,893,380 |
Operating segment net (loss) income |  |  |  |  | (6,677,590) |  |  | 2,728,328 |
Reconciliation of net income components |  |  |  |  |  |  |
excluded from net combined ratio: |  |  |  |  |  |  |
Revenue components excluded from net combined ratio |  |  |  |  |  |  |
Net investment income |  |  |  |  | 3,337,581 |  |  | 2,048,596 |
Net loss on investments |  |  |  |  | (1,015,347) |  |  | (137,979) |
Gain on sale of real estate |  |  |  |  | - |  |  | 1,965,989 |
Other income |  |  |  |  | 23 |  |  | 461 |
Total revenue components excluded |  |  |  |  |  |  |
from net combined ratio |  |  |  |  | 2,322,257 |  |  | 3,877,067 |
Expense components excluded from net combined ratio |  |  |  |  |  |  |
Other operating expenses |  |  |  |  | 2,260,547 |  |  | 1,035,737 |
Depreciation and amortization |  |  |  |  | 715,507 |  |  | 623,863 |
Interest expense |  |  |  |  | 69,855 |  |  | 227,454 |
Income tax |  |  |  |  | (1,592,992) |  |  | 835,681 |
Total expense components excluded |  |  |  |  |  |  |
from net combined ratio |  |  |  |  | 1,452,917 |  |  | 2,722,735 |
Total net loss components |  |  |  |  |  |  |
excluded from net combined ratio: |  |  |  |  | 869,340 |  |  | 1,154,332 |
Consolidated net (loss) income |  |  |  |  | $ | (5,808,250) |  |  | $ | 3,882,660 |
The following table shows the calculation of the net combined ratio and return on equity from net investment income for the periods presented.
|  |  | Three months ended |
|  |  | March 31, |
|  |  |  |  | 2026 |  | 2025 |
Net combined ratio |  |  |  |  |  |  |  |
Net loss ratio |  |  |  |  | 81.6 | % |  | 62.4 | % |
Net underwriting expense ratio |  |  |  |  | 30.4 | % |  | 31.3 | % |
Net combined ratio |  |  |  |  | 112.0 | % |  | 93.7 | % |
Reconciliation of net underwriting expense ratio: |  |  |  |  |  |  |  |
Commission expense and other |  |  |  |  |  |  |  |
underwriting expenses |  |  |  |  | $ | 18,556,685 |  |  | $ | 16,718,302 |  |
Less: Ceding commission revenue |  |  |  |  | (1,403,876) |  |  | (2,958,691) |  |
Less: Other income |  |  |  |  | (180,789) |  |  | (139,954) |  |
Total commission expense and other |  |  |  |  |  |  |  |
underwriting expenses |  |  |  |  | $ | 16,972,020 |  |  | $ | 13,619,657 |  |
Net earned premium |  |  |  |  | $ | 55,868,814 |  |  | $ | 43,523,063 |  |
Net Underwriting Expense Ratio |  |  |  |  | 30.4 | % |  | 31.3 | % |
Return on equity on net investment income |  |  |  |  |  |  |  |
Stockholders' equity beginning of period |  |  |  |  | $ | 122,731,249 |  |  | $ | 66,708,451 |  |
Stockholders' equity end of period |  |  |  |  | $ | 114,504,510 |  |  | $ | 82,209,963 |  |
Average stockholders' equity |  |  |  |  | $ | 118,617,880 |  |  | $ | 74,459,207 |  |
Net investment income |  |  |  |  | $ | 3,337,581 |  |  | $ | 2,048,596 |  |
Return on equity on net investment income |  |  |  |  | 2.8 | % |  | 2.8 | % |
Return on equity on net investment income - annualized |  |  |  |  | 11.2 | % |  | 11.2 | % |
Total assets |  |  |  |  | $ | 465,339,043 |  |  | $ | 385,439,240 |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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