Segment Information

12 Months Ended

Dec. 31, 2024

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 (i) 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 operation are primarily evaluated on net investment income and its return on equity contribution.

Net gains (losses) on investments, other operating expenses are corporate expenses, depreciation and amortization, interest expense, and income tax (benefit), which are broken out below the insurance operations components of the net combined ratio to return to the consolidated net income (loss).

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 gains on investments, 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 reconciles the revenue and expense components of the net combined ratio to consolidated net (income) loss for the periods presented.

Other Cost and Expense, Operating, Excluded from Net Combined Ratio	Years ended December 31,
	2024		2023
Revenue components of net combined ratio
Net premiums earned	$	128,497,920	$	114,384,263
Ceding commission revenue	18,837,946		21,053,494
Other income	549,967		600,993
Total revenue components of net combined ratio	147,885,833		136,038,750
Expense components of net combined ratio
Loss and loss adjustment expenses	62,634,716		82,849,210
Commission expense	33,929,333		33,364,629
Other underwriting expenses	25,692,727		25,909,962
Total expense components of net combined ratio	122,256,776		142,123,801
Operating segment net income (loss)	25,629,057		(6,085,051)
Reconciliation of net income (loss) components
excluded from net combined ratio:
Revenue components excluded from net combined ratio
Net investment income	6,823,590		6,008,682
Net gains on investments	414,551		2,134,554
Other income	18,129		8,728
Total revenue components excluded
from net combined ratio	7,256,270		8,151,964
Expense components excluded from net combined ratio
Other operating expenses	3,634,583		2,456,473
Depreciation and amortization	2,448,932		2,973,440
Interest expense	3,513,655		4,002,531
Income tax (benefit)	4,929,721		(1,197,185)
Total expense components excluded
from net combined ratio	14,526,891		8,235,259
Total net loss components
excluded from net combined ratio:	(7,270,621)		(83,295)
Consolidated net income (loss)	$	18,358,436	$	(6,168,346)

The following table shows the calculation of the net combined ratio and return on equity from net investment income for the periods presented.

	Years ended December 31,
	2024			2023
Net combined ratio
Net loss ratio	48.7		%	72.4		%
Net underwriting expense ratio	31.3		%	32.9		%
Net combined ratio	80.0		%	105.3		%
Reconciliation of net underwriting expense ratio:
Commission expense and other
underwriting expenses	59,622,060			59,274,591
Less: Ceding commission revenue	(18,837,946)			(21,053,494)
Less: Other income	(549,967)			(600,993)
Total commission expense and other
underwriting expenses	$	40,234,147		$	37,620,104
Net earned premium	$	128,497,920		$	114,384,263
Net Underwriting Expense Ratio	31.3		%	32.9		%
Return on equity on net investment income
Stockholders' equity beginning of period	$	34,504,139		$	36,169,432
Stockholders' equity end of period	$	66,708,451		$	34,504,139
Average stockholders' equity	$	50,606,295		$	35,336,786
Net investment income	$	6,823,590		$	6,008,682
Return on equity on net investment income	13.5		%	17.0		%
Return on equity on net investment income - annualized	13.5		%	17.0		%
Total assets	$	372,661,348		$	317,633,210