Fair Value of Financial Instruments and Real Estate

12 Months Ended

Dec. 31, 2025

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 was estimated using a discounted cash flow analyses, based on incremental borrowing rates for similar types of borrowing arrangements.

The estimated fair values of the Company’s financial instruments and real estate, including their fair value level as of December 31, 2025 and 2024, are as follows:


	December 31, 2025				December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securities-held-to maturity, Level 1	$	6,042,348	$	5,137,267	$	7,047,342	$	5,959,265
Fixed-maturity securities available-for-sale, Level 1	$	130,873,872	$	130,873,872	$	106,792,378	$	106,792,378
Fixed-maturity securities available-for-sale, Level 2	$	158,163,318	$	158,163,318	$	80,101,060	$	80,101,060
Cash and cash equivalents, Level 1	$	12,178,730	$	12,178,730	$	28,669,441	$	28,669,441
Premiums receivable, net, Level 1	$	21,012,408	$	21,012,408	$	21,766,988	$	21,766,988
Reinsurance receivables, net, Level 3	$	58,996,945	$	58,996,945	$	69,322,436	$	69,322,436
Real estate, net of accumulated depreciation, Level 3 (1)	$	460,031	$	501,000	$	1,913,390	$	3,540,000
Reinsurance balances payable, Level 3	$	5,232,319	$	5,232,319	$	10,509,121	$	10,509,121
Debt - Equipment financing, Level 2	$	4,440,127	$	4,380,922	$	5,663,420	$	5,459,107
Debt - 13.75% Senior Notes due 2026, Level 2	$	—	$	—	$	5,508,000	$	5,553,785

(1) As of December 31, 2024, real estate consisted of a complex which included an office building, a house and vacant land located in Kingston, New York. In March 2025, the office building and house were sold, leaving the vacant land as the only remaining real estate as of December 31, 2025. See Note 20 - Sale of Real Estate.