Segment Information

3 Months Ended

Mar. 31, 2026

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 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 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 reconcile the revenue and expense components of the net combined ratio to consolidated net (loss) income for the periods presented.

	Three months ended March 31,
	2026		2025
Revenue components of net combined ratio
Net premiums earned	$	55,868,814	$	43,523,063
Ceding commission revenue	1,403,876		2,958,691
Other income	180,789		139,954
Total revenue components of net combined ratio	57,453,479		46,621,708
Expense components of net combined ratio
Loss and loss adjustment expenses	45,574,384		27,175,078
Commission expense	10,195,412		9,312,880
Other underwriting expenses	8,361,273		7,405,422
Total expense components of net combined ratio	64,131,069		43,893,380
Operating segment net (loss) income	(6,677,590)		2,728,328
Reconciliation of net income components
excluded from net combined ratio:
Revenue components excluded from net combined ratio
Net investment income	3,337,581		2,048,596
Net loss on investments	(1,015,347)		(137,979)
Gain on sale of real estate	-		1,965,989
Other income	23		461
Total revenue components excluded
from net combined ratio	2,322,257		3,877,067
Expense components excluded from net combined ratio
Other operating expenses	2,260,547		1,035,737
Depreciation and amortization	715,507		623,863
Interest expense	69,855		227,454
Income tax	(1,592,992)		835,681
Total expense components excluded
from net combined ratio	1,452,917		2,722,735
Total net loss components
excluded from net combined ratio:	869,340		1,154,332
Consolidated net (loss) income	$	(5,808,250)	$	3,882,660

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,
	2026			2025
Net combined ratio
Net loss ratio	81.6		%	62.4		%
Net underwriting expense ratio	30.4		%	31.3		%
Net combined ratio	112.0		%	93.7		%
Reconciliation of net underwriting expense ratio:
Commission expense and other
underwriting expenses	$	18,556,685		$	16,718,302
Less: Ceding commission revenue	(1,403,876)			(2,958,691)
Less: Other income	(180,789)			(139,954)
Total commission expense and other
underwriting expenses	$	16,972,020		$	13,619,657
Net earned premium	$	55,868,814		$	43,523,063
Net Underwriting Expense Ratio	30.4		%	31.3		%
Return on equity on net investment income
Stockholders' equity beginning of period	$	122,731,249		$	66,708,451
Stockholders' equity end of period	$	114,504,510		$	82,209,963
Average stockholders' equity	$	118,617,880		$	74,459,207
Net investment income	$	3,337,581		$	2,048,596
Return on equity on net investment income	2.8		%	2.8		%
Return on equity on net investment income - annualized	11.2		%	11.2		%
Total assets	$	465,339,043		$	385,439,240