Schedule II. Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Schedule II. Condensed Financial Information of Registrant

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Condensed Balance Sheets

	December 31,
	2025			2024
Assets
Fixed maturities, available-for-sale, at fair value	$	1,964		$	1,454
Other investments		125			118
Cash and cash equivalents		32,394			34,377
Accrued investment income		108			114
Investment in subsidiaries		462,589			477,072
Other assets		52,436			45,461
Assets held for sale		—			775
Total Assets	$	549,616		$	559,371
Liabilities
Intercompany payable	$	40,897		$	150,012
Accounts payable and accrued expenses		41,801			24,679
Notes payable		149,353			149,020
Total Liabilities	$	232,051		$	323,711
Stockholders' Equity
Common stock	$	5		$	5
Additional paid-in capital		439,742			436,524
Treasury shares		(431	)		(431	)
Accumulated other comprehensive loss		(7,242	)		(15,666	)
Retained earnings (deficit)		(114,509	)		(184,772	)
Total Stockholders' Equity		317,565			235,660
Total Liabilities and Stockholders' Equity	$	549,616		$	559,371

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Comprehensive Income

	Year Ended December 31,
	2025			2024			2023
REVENUE:
Net income from subsidiaries (equity method)	$	114,612		$	84,549		$	94,990
Net investment income		1,439			1,124			99
Net realized investment gains (losses)		5			(3	)		—
Net unrealized gains on equity securities		—			—			1
Total revenues		116,056			85,670			95,090
EXPENSES:
General and administrative expenses		1,266			1,044			1,314
Interest expense		10,817			10,875			10,875
Total expenses		12,083			11,919			12,189
Income before other income		103,973			73,751			82,901
Other income (loss)		5			—			(214	)
Income before income taxes		103,978			73,751			82,687
Benefit for income taxes		(2,817	)		(2,568	)		(2,517	)
Income from continuing operations, net of tax		106,795			76,319			85,204
Income (loss) from discontinued operations, net of tax		42			(601	)		224,707
Net income	$	106,837		$	75,718		$	309,911
Unrealized gain on investments		9,806			3,355			5,998
Reclassification adjustments - gains (losses)		(1,382	)		124			6,808
Total comprehensive income	$	115,261		$	79,197		$	322,717

SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT, CONTINUED

Condensed Statements of Cash Flows

	Year Ended December 31,
	2025			2024			2023
OPERATING ACTIVITIES
Net income	$	106,837		$	75,718		$	309,911
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Dividends received from subsidiaries		23,000			14,300			—
Earnings from subsidiaries		(114,455	)		(82,943	)		(80,757	)
Loss on sale of subsidiary		148			—			—
Disposition of former subsidiary		—			(1,006	)		(238,440	)
Depreciation and amortization		333			332			333
Bond amortization and accretion		2			6			7
Net realized losses (gains) on investments		(5	)		3			—
Net unrealized gains on equity securities		—			(1	)		(2	)
Deferred income taxes, net		258			141			157
Stock based compensation		4,299			2,545			1,318
Fixed asset and intangible asset disposals		—			—			215
Changes in operating assets and liabilities:
Accrued investment income		6			(79	)		(13	)
Other assets		(5,818	)		4,154			(47,848	)
Accounts payable and accrued expenses		(19,454	)		24,207			(3	)
Intercompany payable		1,997			(8,062	)		47,624
Operating lease liability		—			—			(369	)
Net cash provided by (used in) operating activities		(2,852	)		29,315			(7,867	)
INVESTING ACTIVITIES
Proceeds from sales of investments available-for-sale		513			590			406
Purchases of investments available-for-sale		(973	)		—			—
Investment in subsidiaries		(23,269	)		(1,265	)		(676	)
Proceeds from sale of subsidiary		25,679			—			—
Net cash provided by (used in) investing activities		1,950			(675	)		(270	)
FINANCING ACTIVITIES
Tax withholding payment related to net settlement of equity awards		(1,855	)		(1,359	)		(24	)
Dividends		—			(24,102	)		—
Proceeds from issuance of common stock, including exercise of stock options		774			11,621			26,793
Net cash provided by (used in) financing activities		(1,081	)		(13,840	)		26,769
Increase (decrease) in cash and cash equivalents		(1,983	)		14,800			18,632
Cash and cash equivalents at beginning of period		34,377			19,577			945
Cash and cash equivalents at end of period	$	32,394		$	34,377		$	19,577

In addition to the cash flows outlined above, the Company's subsidiaries forgave historical borrowing totaling $111,112,000 during the year ended December 31, 2025. This transaction was a non-cash transaction and lowered the Company's investment in its subsidiaries by the same $111,112,000.

Notes to Condensed Financial Statements - Basis of Presentation

The Company’s investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company’s share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with ACIC’s consolidated financial statements contained in Part II, Item 8 of this Form 10-K.