8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

12 Months Ended

Dec. 31, 2015

Weighted average amortization period of identified intangible assets of finite useful life

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Policy acquisition costs incurred and policy-related ceding commission revenue are deferred, and amortized to income on property and casualty insurance business as follows:

	Year ended
	December 31,
	2015			2014
Net deferred policy acquisition costs net of ceding commission revenue, beginning of year	$	3,029,441		$	(123,903	)
Cost incurred and deferred:
Commissions and brokerage		16,963,843			13,612,109
Other underwriting and policy acquisition costs		4,904,350			4,426,614
Ceding commission revenue		(12,170,986	)		(11,428,785	)
Net deferred policy acquisition costs		9,697,207			6,609,938
Amortization		(8,326,410	)		(3,456,594	)
		1,370,797			3,153,344
Net deferred policy acquisition costs net of ceding commission revenue, end of year	$	4,400,238		$	3,029,441

Ending balances for deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2015 and 2014 follows:

	December 31,
	2015			2014
Deferred policy acquisition costs	$	10,835,306		$	8,985,981
Deferred ceding commission revenue		(6,435,068	)		(5,956,540	)
Balance at end of period	$	4,400,238		$	3,029,441