
	Direct		Assumed		Ceded		Net

Six months ended June 30, 2025
Premiums written	$	119,237,405	$	-	$	(6,017,324)	$	113,220,081
Change in unearned premiums	4,438,637		-		(27,920,395)		(23,481,758)
Premiums earned	$	123,676,042	$	-	$	(33,937,719)	$	89,738,323

Six months ended June 30, 2024
Premiums written	$	102,819,939	$	-	$	(23,299,863)	$	79,520,076
Change in unearned premiums	(1,813,141)		-		(18,583,421)		(20,396,562)
Premiums earned	$	101,006,798	$	-	$	(41,883,284)	$	59,123,514

Three months ended June 30, 2025
Premiums written	$	61,062,409	$	—	$	(8,851,735)	$	52,210,674
Change in unearned premiums	1,968,256		—		(7,963,670)		(5,995,414)
Premiums earned	$	63,030,665	$	—	$	(16,815,405)	$	46,215,260

Three months ended June 30, 2024
Premiums written	$	53,495,323	$	—	$	(12,070,646)	$	41,424,677
Change in unearned premiums	(2,484,903)		—		(8,636,162)		(11,121,065)
Premiums earned	$	51,010,420	$	—	$	(20,706,808)	$	30,303,612


	Six months ended June 30,
	2025		2024

Balance at beginning of period	$	126,210,428	$	121,817,862
Less reinsurance recoverables	(32,322,637)		(33,288,650)
Net balance, beginning of period	93,887,791		88,529,212

Incurred related to:
Current year	45,914,496		33,094,050
Prior years	(812,256)		(996,155)
Total incurred	45,102,240		32,097,895

Paid related to:
Current year	18,399,950		14,180,114
Prior years	19,470,717		18,883,752
Total paid	37,870,667		33,063,866

Net balance at end of period	101,119,364		87,563,241
Add reinsurance recoverables	32,808,090		29,014,249
Balance at end of period	$	133,927,454	$	116,577,490

Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. Prior year loss and LAE development incurred during the six months ended June 30, 2025 and 2024 was $(812,256) favorable and $(996,155) favorable, respectively. Management, on a quarterly basis, performs a review of open liability claims to assess carried case and incurred but not reported (“IBNR”) reserve levels, giving consideration to both Company and industry trends.

The reserving process for loss and LAE reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and LAE incurred, including settlement and administration of losses, and is based on facts and circumstances then known including losses that have occurred but that have not yet been reported. The process relies on standard actuarial reserving methodologies, judgments relative to estimates of ultimate claim severity and frequency, the length of time before losses will develop to their ultimate level (‘tail’ factors), and the likelihood of changes in the law or other external factors that are beyond the Company’s control. Several actuarial reserving methodologies are used to estimate required loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the cumulative combination of the best estimates made by line of business, accident year, and loss and LAE. The amount of loss and LAE reserves for individual reported claims (the “case reserve”) is determined by the claims department and changes over time as new information is gathered. Such information is critical to the review of appropriate IBNR reserves and includes a review of coverage applicability, comparative liability on the part of the insured, injury severity, property damage, replacement cost estimates, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and LAE reserves for unreported claims and development on known claims (IBNR reserves) are determined using historical information aggregated by line of insurance as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.

Due to the inherent uncertainty associated with the reserving process, the ultimate liability may differ, perhaps substantially, from the original estimate. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current period’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves, and paid losses with respect to the current and prior periods. Several methods are used, varying by line of business and accident year, in order to select the estimated period-end loss reserves. These methods include the following:

Paid Bornhuetter-Ferguson (“BF”) – an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been paid, based on historical paid loss development patterns. The estimate of required reserves assumes that the remaining unpaid portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of paid losses exists at the early stages of the claims development process.

Incurred Bornhuetter-Ferguson (“BF”) - an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been reported, based on historical incurred loss development patterns. The estimate of required reserves assumes that the remaining unreported portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of reported losses exists at the early stages of the claims development process.

Incremental Claim-Based Methods – historical patterns of incremental incurred losses and paid LAE during various stages of development are reviewed and assumptions are made regarding average loss and LAE development applied to remaining claims inventory. Such methods more properly reflect changes in the speed of claims closure and the relative adequacy of case reserve levels at various stages of development. These methods may provide a more accurate estimate of IBNR for lines of business with relatively few remaining open claims but for which significant recent settlement activity has occurred.

Frequency / Severity Based Methods – historical measurements of claim frequency and average paid claim size (severity) are reviewed for more mature accident years where a majority of claims have been reported and/or closed. These historical averages are trended forward to more recent periods in order to estimate ultimate losses for newer accident years that are not yet fully developed. These methods are useful for lines of business with slow and/or volatile loss development patterns, such as liability lines where information pertaining to individual cases may not be completely known for many years. The claim frequency and severity information for older periods can then be used as reasonable measures for developing a range of estimates for more recent immature periods.

Three key assumptions that materially affect the estimate of loss reserves are the loss ratio estimate for the current accident year used in the BF methods, the loss development factor selections used in the loss development methods, and the loss severity assumptions used in the frequency / severity method described above. The loss ratio estimates used in the BF methods are selected after reviewing historical accident year loss ratios adjusted for rate changes, trend, and mix of business. The severity assumptions used in the frequency / severity method are determined by reviewing historical average claim severity for older more mature accident periods, trended forward to less mature accident periods.

The Company reviews the carried reserves levels on a regular basis as additional information becomes available and makes adjustments in the periods in which such adjustments are determined to be necessary. The Company is not aware of any claim trends that have emerged or that would cause future adverse development that have not already been contemplated in setting current carried reserves levels.

In New York State, lawsuits for negligence are subject to certain limitations and must be commenced within three years from the date of the accident or are otherwise barred. Accordingly, the Company’s exposure to unreported claims (“pure” IBNR) for accident dates of June 30, 2022 and prior is limited, although there remains the possibility of adverse development on reported claims (“case development” IBNR). In certain rare circumstances states have retroactively revised a statute of limitations. The Company is not aware of any such effort that would have a material impact on the Company’s results.

The following is information about incurred and paid claims development as of June 30, 2025, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of June 30, 2025 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2016 to December 31, 2024 is presented as supplementary unaudited information.


	Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance																				As of June 30, 2025
Accident Year	For the Years Ended December 31,																		Six Months Ended June 30, 2025		IBNR		Cumulative Number of Reported Claims by Accident Year
	2016		2017		2018		2019		2020		2021		2022		2023		2024

	(Unaudited 2015 - 2024)																		(Unaudited)

2016	$	26,062	$	24,941	$	24,789	$	27,887	$	27,966	$	27,417	$	27,352	$	27,271	$	27,247	$	27,221	$	78	2,884
2017			31,605		32,169		35,304		36,160		36,532		36,502		36,819		37,268		37,356		193		3,401
2018					54,455		56,351		58,441		59,404		61,237		61,145		61,686		61,384		1,237		4,238
2019							75,092		72,368		71,544		71,964		73,310		74,363		74,608		1,685		4,508
2020									63,083		62,833		63,217		63,562		64,400		64,800		1,294		5,895
2021											96,425		96,673		96,134		96,771		97,030		1,822		5,834
2022													79,835		78,759		78,078		77,492		4,166		4,717
2023															78,978		72,025		71,622		8,741		4,094
2024																	57,860		57,565		10,912		3,121
2025																			41,862		13,092		1,078
																	Total		$	610,939


	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	For the Years Ended December 31,																		Six Months Ended June 30, 2025
	2016		2017		2018		2019		2020		2021		2022		2023		2024
	(Unaudited 2015 - 2024)																		(Unaudited)

2016	$	15,364	$	19,001	$	21,106	$	23,974	$	25,234	$	25,750	$	26,382	$	26,854	$	26,808	$	26,876
2017			16,704		24,820		28,693		31,393		32,529		33,522		34,683		35,046		35,246
2018					32,383		44,516		50,553		52,025		54,424		56,199		57,185		57,651
2019							40,933		54,897		58,055		60,374		63,932		66,109		68,029
2020									39,045		50,719		53,432		56,523		59,220		60,345
2021											56,282		77,756		82,317		85,314		88,229
2022													45,856		65,732		68,170		68,923
2023															46,280		56,952		58,221
2024																	29,013		37,967
2025																			16,519
																	Total		$	518,007

Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented																			$	92,932
All outstanding liabilities before 2016, net of reinsurance																			1,569
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance																			$	94,501

On January 1, 2024, the Company entered into a 27% quota share reinsurance treaty for its personal lines business, which primarily consisted of homeowners’ and dwelling fire policies covering the period from January 1, 2024 through January 1, 2025 (“2024/2025 Treaty”). Upon the expiration of the 2024/2025 Treaty on January 1, 2025, the Company entered into a new 16% quota share reinsurance treaty for its personal lines business, covering the period from January 1, 2025 through January 1, 2026 (“2025/2026 Treaty”).

The Company’s excess of loss and catastrophe reinsurance treaties expired on June 30, 2025 and the Company entered into new excess of loss and catastrophe reinsurance treaties effective July 1, 2025. Effective January 1, 2024, the Company renewed an underlying excess of loss reinsurance treaty (“Underlying XOL Treaty”) covering the period from January 1, 2024 through January 1, 2025. The treaty provided 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Losses from named storms are excluded from the treaty. Effective January 1, 2025, the Underlying XOL Treaty was renewed covering the period from January 1, 2025 through June 30, 2025. Effective July 1, 2025, the Underlying XOL Treaty was renewed along with the Company's excess of loss reinsurance treaty covering the period from July 1, 2025 through June 30, 2026. Combined, the renewed treaties provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. For the period October 1, 2024 through April 30, 2025, the Company purchased catastrophe reinsurance which provides coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. Material terms for reinsurance treaties in effect for the treaty years shown below are as follows (see Note 15 - Subsequent Events, Reinsurance):


	Treaty Period
			2025/2026 Treaty						2024/2025 Treaty
Line of Business	January 2, 2026 to June 30, 2026		July 1, 2025 to January 1, 2026			January 2, 2025 to June 30, 2025			July 1, 2024 to January 1, 2025			January 1, 2024 to June 30, 2024

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded (6)	(5)		16		%	16		%	27		%	27		%
Risk retained on initial
$1,000,000 of losses (4) (5) (6)	(5)		$	840,000		$	840,000		$	730,000		$	730,000
Losses per occurrence
subject to quota share
reinsurance coverage	(5)		$	1,000,000		$	1,000,000		$	1,000,000		$	1,000,000
Expiration date	(5)		January 1, 2026			January 1, 2026			January 1, 2025			January 1, 2025
Excess of loss coverage and
facultative facility
coverage (1) (4) (5)	$	8,250,000	$	8,250,000		$	8,400,000		$	8,400,000		$	8,400,000
	in excess of		in excess of			in excess of			in excess of			in excess of
	$	750,000	$	750,000		$	600,000		$	600,000		$	600,000
Total reinsurance coverage
per occurrence (4) (5)	$	8,125,000	$	8,285,000		$	8,360,000		$	8,470,000		$	8,470,000
Losses per occurrence
subject to reinsurance
coverage (5)	$	9,000,000	$	9,000,000		$	9,000,000		$	9,000,000		$	9,000,000
Expiration date	June 30, 2026		June 30, 2026			June 30, 2025			June 30, 2025			June 30, 2024

Catastrophe Reinsurance:
Initial loss subject to personal
lines quota share treaty (5)	(5)		$	10,000,000		$	10,000,000		$	10,000,000		$	10,000,000
Risk retained per catastrophe
occurrence (5) (6) (7) (8)	$	6,000,000	$	5,000,000		$	4,250,000		$	4,750,000		$	9,500,000
Catastrophe loss
coverage (2) (5) (8)	$	434,000,000	$	435,000,000		$	275,000,000		$	275,000,000		$	315,000,000

Reinstatement premium
protection (3)	Yes		Yes			Yes			Yes			Yes

(2)Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts, except for one occurrence on 80% of the first layer of $5,000,000 in excess of $5,000,000, and one occurrence on 52% of the top layer of $240,000,000 in excess of $200,000,000, which is covered under the catastrophe bond. Duration of 168 consecutive hours for a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone.

(3)For the period July 1, 2024 through June 30, 2025 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000. For the period July 1, 2025 through June 30, 2026 (expiration date of the catastrophe reinsurance treaty), reinstatement premium protection for $50,000,000 of catastrophe coverage in excess of $10,000,000.

(4)For the period January 1, 2024 through June 30, 2025, the Underlying XOL Treaty provides 50% reinsurance coverage for losses of $400,000 in excess of $600,000. Excludes losses from named storms. Reduces retention to $530,000 from $730,000 under the 2024/2025 Treaty. Retention increases to $640,000 from $530,000 under the 2025/2026 Treaty. For the period July 1, 2025 through June 30, 2026, the Underlying XOL Treaty combined with the excess of loss treaty provide 50% reinsurance coverage for losses of $250,000 in excess of $750,000, and 100% reinsurance coverage for losses in excess of $1,000,000 up to $9,000,000 together with facultative coverage. Increased retention to $715,000 from $640,000 under the 2025/2026 Treaty (see note 5 below).

(5)The personal lines quota share treaty (homeowners, dwelling fire and canine liability) will expire on January 1, 2026, with none of these coverages to be in effect during the period from January 2, 2026 through June 30, 2026. If and when this treaty is renewed on January 2, 2026, the personal lines quota share treaty, will be as provided for therein. Reinsurance coverage in effect from January 2, 2026 through June 30, 2026 is only for excess of loss, Underlying XOL, and catastrophe reinsurance treaties.

(8)Effective July 1, 2025 through June 30, 2026, catastrophe coverage is 80% of the first layer of $5,000,000 in excess of $5,000,000. The remaining coverage is at 100% of $430,000,000 in excess of $10,000,000. For the period October 1, 2024 through April 30, 2025, additional catastrophe reinsurance treaty provided coverage for winter storm losses to the extent of 71% of $4,500,000 in excess of $5,500,000. Retention for winter storms under this treaty is $4,800,000 under the 2024/2025 Treaty and $5,200,000 under the 2025/2026 Treaty.


	Treaty Year
Line of Business	July 1, 2025 to June 30, 2026			July 1, 2024 to June 30, 2025			July 1, 2023 to June 30, 2024

Personal Lines:
Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage	90		%	90		%	90		%
Percent ceded - excess of $1,000,000 dollars of coverage	95		%	95		%	95		%
Risk retained	$	300,000		$	300,000		$	300,000
Total reinsurance coverage per occurrence	$	4,700,000		$	4,700,000		$	4,700,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000		$	5,000,000		$	5,000,000
Expiration date	June 30, 2026			June 30, 2025			June 30, 2024

Commercial Lines (1)

The Company’s reinsurance program has been structured to enable the Company to grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company of its obligations to policyholders.

The Company earned ceding commission revenue under the 2025/2026 Treaty for the three and six months ended June 30, 2025 based on: (i) a fixed provisional commission rate at which provisional ceding commissions were earned, and (ii) a sliding scale ("Sliding Scale") of commission rates and ultimate treaty year loss ratio on the policies reinsured under this agreement based upon which contingent ceding commissions are earned. The Sliding Scale includes minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increase when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decrease when the estimated ultimate loss ratio increases.

periodically based on the Loss Ratio of each treaty year that ends on June 30, for the expired treaties that were subject to contingent commissions. As discussed above, the Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods develop, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned. As of June 30, 2025 and December 31, 2024, net contingent ceding commissions payable to reinsurers under all treaties was approximately $1,326,000 and $727,000, respectively, which is recorded in reinsurance balances payable on the accompanying condensed consolidated balance sheets.