On May 9, 2024, the Company entered into the Sale Agreement with Forza in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of IIC. Forza’s application to acquire IIC was approved by the NYDFS on February 13, 2025 and the sale closed on April 1, 2025. The Company received cash proceeds totaling $25,679,000 from the sale resulting in a loss on disposal of $247,000, net of tax impact. The Company also recognized a $1,348,000 loss, net of tax impact, on IIC's fixed maturity portfolio, which was included in accumulated other comprehensive loss on the Company's Consolidated Balance Sheets prior to the sale. The total tax benefit related to the sale and realized loss on fixed maturity portfolio was $528,000.

The results from IIC's discontinued operations for the three and six months ended June 30, 2025 are presented below.

IIC Results from Discontinued Operations


	Three Months Ended June 30, 2025 ⁽¹⁾		Six Months Ended June 30, 2025 ⁽¹⁾
REVENUE:
Gross premiums written	$	—	$	13,120
Change in gross unearned premiums		—		(3,336	)
Gross premiums earned		—		9,784
Ceded premiums earned		—		(2,528	)
Net premiums earned		—		7,256
Net investment income		—		538
Net realized investment losses		—		(2	)
Other revenue		—		16
Total revenue		—		7,808
EXPENSES:
Losses and loss adjustment expenses		—		3,179
Policy acquisition costs		—		1,906
General and administrative expenses		—		546
Total expenses		—		5,631
Income before income taxes		—		2,177
Provision for income taxes		—		540
Income from discontinued operations, net of tax	$	—	$	1,637

(1) Excludes loss on sale and realization of unrealized losses on fixed maturity portfolio, the details of which are described above and are not operational results related to IIC.

The major classes of IIC assets and liabilities transferred as a result of the sale as of the date of sale are presented below.

IIC Major Classes of Assets and Liabilities Sold and Disposed


	April 1, 2025
ASSETS
Fixed maturities, available-for-sale	$	40,925
Other investments		988
Cash and cash equivalents		21,206
Accrued investment income		297
Premiums receivable, net		3,174
Reinsurance recoverable on paid and unpaid losses, net		265
Ceded unearned premiums		2,004
Deferred policy acquisition costs, net		4,462
Intangible assets, net		775
Other assets		488
Total assets	$	74,584

LIABILITIES
Unpaid losses and loss adjustment expenses	$	21,391
Unearned premiums		23,574
Payments outstanding		2,223
Accounts payable and accrued expenses		101
Operating lease liability		65
Other liabilities		1,402
Total liabilities	$	48,756