v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 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
June 30,		Six months ended
June 30,
2025202420252024
Revenue components of net combined ratio
Net premiums earned$46,215,260 $30,303,612 $89,738,323 $59,123,514 
Ceding commission revenue3,081,556 4,561,961 6,040,247 9,129,072 
Other income151,173 104,811 291,127 252,978 
Total revenue components of net combined ratio49,447,989 34,970,384 96,069,697 68,505,564 
Expense components of net combined ratio
Loss and loss adjustment expenses17,927,162 14,238,308 45,102,240 32,097,895 
Commission expense10,629,629 8,232,480 19,942,509 16,084,292 
Other underwriting expenses7,727,367 5,900,525 15,132,789 11,781,130 
Total expense components of net combined ratio36,284,158 28,371,313 80,177,538 59,963,317 
Operating segment net income13,163,831 6,599,071 15,892,159 8,542,247 
Reconciliation of net income components
excluded from net combined ratio:
Revenue components excluded from net combined ratio
Net investment income2,300,267 1,764,596 4,348,863 3,267,456 
Net gains (losses) on investments546,451 (233,606)408,472 492,785 
Gain on sale of real estate— — 1,965,989 — 
Other income72 741 533 1,487 
Total revenue components excluded
from net combined ratio2,846,790 1,531,731 6,723,857 3,761,728 
Expense components excluded from net combined ratio
Other operating expenses1,153,480 800,966 2,189,217 1,579,048 
Depreciation and amortization613,364 619,934 1,237,227 1,216,447 
Interest expense77,074 989,723 304,528 1,983,598 
Income tax2,914,371 1,205,242 3,750,052 1,583,266 
Total expense components excluded
from net combined ratio4,758,289 3,615,865 7,481,024 6,362,359 
Total net income (loss) components
excluded from net combined ratio:(1,911,499)(2,084,134)(757,167)(2,600,631)
Consolidated net income$11,252,332 $4,514,937 $15,134,992 $5,941,616 
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 endedSix months ended
June 30,June 30,
2025202420252024
Net combined ratio
Net loss ratio38.8 %47.0 %50.3 %54.3 %
Net underwriting expense ratio32.7 %31.2 %32.0 %31.3 %
Net combined ratio71.5 %78.2 %82.3 %85.6 %
Reconciliation of net underwriting expense ratio:
Commission expense and other
underwriting expenses$18,356,996 $14,133,005 $35,075,298 $27,865,422 
Less: Ceding commission revenue(3,081,556)(4,561,961)(6,040,247)(9,129,072)
Less: Other income(151,173)(104,811)(291,127)(252,978)
Total commission expense and other
underwriting expenses$15,124,267 $9,466,233 $28,743,924 $18,483,372 
Net earned premium$46,215,260 $30,303,612 $89,738,323 $59,123,514 
Net Underwriting Expense Ratio32.7 %31.2 %32.0 %31.3 %
Return on equity on net investment income
Stockholders' equity beginning of period$82,209,963 $35,749,807 $66,708,451 $34,504,139 
Stockholders' equity end of period$94,877,892 $40,802,774 $94,877,892 $40,802,774 
Average stockholders' equity$88,543,928 $38,276,291 $80,793,172 $37,653,457 
Net investment income$2,300,267 $1,764,596 $4,348,863 $3,267,456 
Return on equity on net investment income2.6%4.6%5.4%8.7%
Return on equity on net investment income - annualized10.4%18.4%10.8%17.4%
Total assets$393,421,525 $318,292,723 $393,421,525 $318,292,723