Fair Value of Financial Instruments and Real Estate

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Instruments and Real Estate

The Company uses the following methods and assumptions in estimating the fair value of financial instruments and real estate:

Equity securities, available-for-sale fixed income securities, and other investments: Fair value disclosures for these investments are included in Note 3 - Investments and Note 4 – Fair Value Measurements.

Cash and cash equivalents: The carrying values of cash and cash equivalents approximate their fair values because of the short-term nature of these instruments.

Premiums receivable and reinsurance receivables: The carrying values reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to the short-term nature of the assets.

Real estate: The estimated fair value was based on an appraisal prepared using the sales comparison approach, and accordingly the real estate is a Level 3 asset under the fair value hierarchy.

Reinsurance balances payable: The carrying value reported in the consolidated balance sheets for these financial instruments approximates fair value.

Debt: The fair value of debt is estimated using a discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements.

The estimated fair values of the Company’s financial instruments and real estate as of December 31, 2024 and 2023 are as follows:


	December 31, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securities-held-to maturity, Level 1	$	7,047,342	$	5,959,265	$	7,052,541	$	6,106,148
Fixed-maturity securities available-for-sale, Level 1	$	106,792,378	$	106,792,378	$	91,046,936	$	91,046,936
Fixed-maturity securities available-for-sale, Level 2	$	80,101,060	$	80,101,060	$	57,873,861	$	57,873,861
Cash and cash equivalents, Level 1	$	28,669,441	$	28,669,441	$	8,976,998	$	8,976,998
Premiums receivable, net, Level 1	$	21,766,988	$	21,766,988	$	13,604,808	$	13,604,808
Reinsurance receivables, net, Level 3	$	69,322,436	$	69,322,436	$	75,593,912	$	75,593,912
Real estate, net of accumulated depreciation, Level 3 (1)	$	1,913,390	$	3,540,000	$	1,992,529	$	3,540,000
Reinsurance balances payable, Level 3	$	10,509,121	$	10,509,121	$	12,837,140	$	12,837,140
Debt - 13.75% Senior Notes due 2026, Level 2	$	5,508,000	$	5,553,785	$	—	$	—
Debt - 12.0% Senior Notes due 2024, Level 2	$	—	$	—	$	18,426,247	$	17,812,500

(1) Real estate consists of a complex which includes an office building, a house and vacant land located in Kingston, New York. See Note 20 - Subsequent Events, Sale of Real Estate.