Segment Information

3 Months Ended

Mar. 31, 2025

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) gains 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) gains 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 reconciles the revenue and expense components of the net combined ratio to consolidated net income for the periods presented.

	Three months ended March 31,
	2025		2024
Revenue components of net combined ratio
Net premiums earned	$	43,523,063	$	28,819,902
Ceding commission revenue	2,958,691		4,567,111
Other income	139,954		148,167
Total revenue components of net combined ratio	46,621,708		33,535,180
Expense components of net combined ratio
Loss and loss adjustment expenses	27,175,078		17,859,587
Commission expense	9,312,880		7,851,812
Other underwriting expenses	7,405,422		5,880,605
Total expense components of net combined ratio	43,893,380		31,592,004
Operating segment net income	2,728,328		1,943,176
Reconciliation of net income components
excluded from net combined ratio:
Revenue components excluded from net combined ratio
Net investment income	2,048,596		1,502,860
Net (losses) gains on investments	(137,979)		726,391
Gain on sale of real estate	1,965,989		—
Other income	461		746
Total revenue components excluded
from net combined ratio	3,877,067		2,229,997
Expense components excluded from net combined ratio
Other operating expenses	1,035,737		778,082
Depreciation and amortization	623,863		596,513
Interest expense	227,454		993,875
Income tax	835,681		378,024
Total expense components excluded
from net combined ratio	2,722,735		2,746,494
Total net income (loss) components
excluded from net combined ratio:	1,154,332		(516,497)
Consolidated net income	$	3,882,660	$	1,426,679

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,
	2025			2024
Net combined ratio
Net loss ratio	62.4		%	62.0		%
Net underwriting expense ratio	31.3		%	31.3		%
Net combined ratio	93.7		%	93.3		%
Reconciliation of net underwriting expense ratio:
Commission expense and other
underwriting expenses	$	16,718,302		$	13,732,417
Less: Ceding commission revenue	(2,958,691)			(4,567,111)
Less: Other income	(139,954)			(148,167)
Total commission expense and other
underwriting expenses	$	13,619,657		$	9,017,139
Net earned premium	$	43,523,063		$	28,819,902
Net Underwriting Expense Ratio	31.3		%	31.3		%
Return on equity on net investment income
Stockholders' equity beginning of period	$	66,708,451		$	34,504,139
Stockholders' equity end of period	$	82,209,963		$	35,749,807
Average stockholders' equity	$	74,459,207		$	35,126,973
Net investment income	$	2,048,596		$	1,502,860
Return on equity on net investment income	2.8		%	4.3		%
Return on equity on net investment income - annualized	11.2		%	17.2		%
Total assets	$	385,439,240		$	318,292,723