\n| ($ in thousands except per share data)<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/span><\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/span><\/b><\/p>\n<\/td>\n | | \n\n % Change<\/span><\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/span><\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/span><\/b><\/p>\n<\/td>\n | | \n\n % Change<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n\nDirect written premiums1<\/sup><\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n53,901\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n50,055\n<\/p>\n<\/td>\n | | \n\n \n7.7%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n201,255\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n181,665\n<\/p>\n<\/td>\n | | \n\n \n10.8%\n<\/p>\n<\/td>\n<\/tr>\n | \nNet written premiums1<\/sup><\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n33,450\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n19,000\n<\/p>\n<\/td>\n | | \n\n \n76.2%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n122,060\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n128,755\n<\/p>\n<\/td>\n | | \n\n \n-5.2%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net premiums earned<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n30,448\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n37,053\n<\/p>\n<\/td>\n | | \n\n \n-17.8%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n114,385\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n143,882\n<\/p>\n<\/td>\n | | \n\n \n-20.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Total ceding commission revenue<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n5,036\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n52\n<\/p>\n<\/td>\n | | \n\n \n9584.6%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n19,319\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n90\n<\/p>\n<\/td>\n | | \n\n \n21365.6%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net investment income<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n1,525\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n1,484\n<\/p>\n<\/td>\n | | \n\n \n2.8%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n4,937\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n6,621\n<\/p>\n<\/td>\n | | \n\n \n-25.4%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net (losses) gains on investments<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(78)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n4,307\n<\/p>\n<\/td>\n | | \nna<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(9,392)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n9,787\n<\/p>\n<\/td>\n | | \nna<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| U.S. GAAP Net (loss) income<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(3,950)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n2,228\n<\/p>\n<\/td>\n | | \nna<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(22,525)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(7,378)\n<\/p>\n<\/td>\n | | \n\n \n-205.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| U.S. GAAP Diluted (loss) earnings per share<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(0.37)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.21\n<\/p>\n<\/td>\n | | \nna<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(2.12)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(0.70)\n<\/p>\n<\/td>\n | | \n\n \n-202.9%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Comprehensive loss<\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(3,930)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(2,182)\n<\/p>\n<\/td>\n | | \n\n \n-80.1%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(40,280)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(15,462)\n<\/p>\n<\/td>\n | | \n\n \n-160.5%\n<\/p>\n<\/td>\n<\/tr>\n | \nNet operating loss1<\/sup><\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n(3,888)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(1,175)\n<\/p>\n<\/td>\n | | \n\n \n-230.9%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(15,105)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(15,110)\n<\/p>\n<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n<\/tr>\n | \nNet operating loss1<\/sup> per share<\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n(0.36)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(0.11)\n<\/p>\n<\/td>\n | | \n\n \n-236.1%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(1.42)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(1.43)\n<\/p>\n<\/td>\n | | \n\n \n0.6%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Return on average equity (annualized)<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n-42.1%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n11.6%\n<\/p>\n<\/td>\n | | \nna<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n-40.2%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n-8.8%\n<\/p>\n<\/td>\n | | \n-31.4 pts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net loss ratio<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n81.3%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n61.8%\n<\/p>\n<\/td>\n | | \n19.5 pts<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n77.3%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n70.9%\n<\/p>\n<\/td>\n | | \n6.4 pts<\/td>\n<\/tr>\n | \n| Net underwriting expense ratio<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n32.6%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n39.5%\n<\/p>\n<\/td>\n | | \n-6.9 pts<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n36.0%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n40.6%\n<\/p>\n<\/td>\n | | \n-4.6 pts<\/td>\n<\/tr>\n | \n| Net combined ratio<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n113.9%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n101.3%\n<\/p>\n<\/td>\n | | \n12.6 pts<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n113.3%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n111.5%\n<\/p>\n<\/td>\n | | \n1.8 pts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Effect of catastrophes and prior year loss<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \ndevelopment on net combined ratio1<\/sup><\/td>\n| 20.1 pts<\/td>\n | | \n6.8 pts<\/td>\n | | \n13.3 pts<\/td>\n | | \n9.1 pts<\/td>\n | | \n10.3 pts<\/td>\n | | \n-1.2 pts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net combined ratio excluding effect of<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| catastrophes and prior year loss<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \ndevelopment1<\/sup><\/td>\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n93.8%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n94.5%\n<\/p>\n<\/td>\n | | \n-0.7 pts<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n104.2%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n101.2%\n<\/p>\n<\/td>\n | | \n3 pts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| 1 These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures.<\/td>\n<\/tr>\n<\/table>\n 2022 Fourth Quarter and Year End Financial Review<\/span><\/b><\/p>\nNet (loss) income:
\n
<\/span><\/i>Net loss was $4.0 million during the three-month period ended December 31, 2022, compared to net income of $2.2 million in the prior year period. The decrease in net income in the latest three-month period can be attributed to catastrophe losses and prior year loss development during the quarter partially offset by a decrease in the Company\u2019s expenses.\n<\/p>\n\nFor the year ended December 31, 2022, the net loss was $22.5 million, up from a net loss of $7.4 million in the prior year. The increase in net loss can be attributed to an increase in the net loss ratio, as well as an increase in the net losses on investments due to interest rate increases, partially offset by a decrease in the Company\u2019s net expense ratio attributable to ceding commissions from the 30% personal lines quota share and other expense reductions.\n<\/p>\n Earnings (Loss) per share (\u201cEPS\u201d):
\n
<\/span><\/i>Kingstone reported EPS of $(0.37) per diluted share for the three months ended December 31, 2022, compared to EPS of $0.21 per diluted share for the three months ended December 31, 2021. For the year ended December 31, 2022, EPS was $(2.12) per diluted share compared to EPS of $(0.70) per diluted share for the year ended December 31, 2021. EPS for the three-month periods ended December 31, 2022 and 2021 was based on 10.7 million and 10.8 million weighted average diluted shares outstanding, respectively. EPS for the years ended December 31, 2022 and 2021 was based on 10.6 million and 10.6 million weighted average diluted shares outstanding, respectively.\n<\/p>\nDirect Written Premiums,1<\/sup> Net Written Premiums1<\/sup> and Net Premiums Earned
\n
<\/span><\/i>Direct written premiums1<\/sup> for the fourth quarter of 2022 were $53.9 million, an increase of $3.8 million or 7.7% from $50.1 million in the prior year period. The increase is primarily attributable to a $2.8 million increase in premiums from our personal lines business and a $1.0 million increase in our livery physical damage product. For the year ended December 31, 2022, direct written premiums increased 10.8% to $201.2 million, compared to $181.7 million in the prior year. Direct written premiums from our personal lines business for the year ended December 31, 2022 were $188.1 million, an increase of $16.4 million, or 9.6%, from $171.7 million in the prior year.\n<\/p>\n\nNet written premiums1<\/sup> increased $14.4 million, or 76.1% to $33.5 million during the three-month period ended December 31, 2022 from $19.0 million in the prior year period. For the year ended December 31, 2022, net written premiums decreased 5.2% to $122.1 million, compared to $128.8 million in the prior year. The increase in the fourth quarter was attributable to the inception of a 30% personal lines quota share treaty on a cut-off basis on December 30, 2021. The inception cut-off on December 30, 2021 resulted in the ceding of $22.9 million of unearned premiums to our reinsurers. The decrease in net written premiums for the year is a result of the 30% personal lines quota share treaty in effect for all of 2022.\n<\/p>\n\nNet premiums earned for the quarter ended December 31, 2022 decreased 17.8% to $30.4 million, compared to $37.1 million for the quarter ended December 31, 2021. For the year ended December 31, 2022, net premiums earned decreased 20.5% to $114.4 million, compared to $143.9 million in the prior year. The decrease in the fourth quarter and for the year was attributable to the inception of the 30% personal lines quota share treaty on a cut-off basis on December 30, 2021, partially offset by an increase in direct written premiums.\n<\/p>\n Net Loss Ratio<\/span><\/i>:
\n
For the quarter ended December 31, 2022, the Company\u2019s net loss ratio was 81.3%, compared to 61.8% in the prior year period. The loss ratio increased from the prior year period mainly due to an increase in catastrophe loss and prior year development on the Company\u2019s commercial multi-peril line of business. The impact of catastrophe losses was 13.6 points for 2022 compared to 6.8 points in the prior year. Prior year development was 6.5 points in 2022 and no change in the prior year.\n<\/p>\n\nFor the year ended December 31, 2022, the net loss ratio was 77.3%, compared to 70.9% in the prior year. The net loss ratio was higher than in the prior year mainly due to an increase in frequency for the water peril, primarily from winter storms, and an increase in severity due to inflation. The impact of catastrophe losses was 6.7 points for 2022 compared to 10.3 points in the prior year. Prior year development was 2.4 points in 2022 and no change in the prior year.\n<\/p>\n Net Underwriting Expense Ratio<\/span><\/i>:
\n
For the quarter ended December 31, 2022, the net underwriting expense ratio was 32.6% as compared to 39.5% in the prior year period, a decrease of 6.9 percentage points. For the year ended December 31, 2022, the Company\u2019s net underwriting expense ratio decreased to 36.0% from 40.6% in the prior year, a decrease of 4.6 percentage points. The decrease in the fourth quarter and for the full year was primarily attributable to the increase in provisional ceding commissions from the 30% personal lines quota share, a decrease in IT expenses from the retirement of the Company\u2019s legacy systems, and changes to producer commissions and profit sharing.\n<\/p>\n\n____________________
\n
1 <\/sup>These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures.\n<\/p>\nBalance Sheet \/ Investment Portfolio
\n
<\/span><\/b>Kingstone\u2019s cash and investment holdings were $191.0 million at December 31, 2022 compared to $237.9 million at December 31, 2021. The Company\u2019s investment holdings are comprised primarily of investment grade corporate, mortgage-backed and municipal securities, with fixed income investments representing approximately 90.7% of total investments at December 31, 2022 and 77.7% at December 31, 2021. The Company\u2019s effective duration on its fixed-income portfolio is 4.5 years.\n<\/p>\n\nNet investment income increased 2.8% to $1.53 million for the fourth quarter of 2022 from $1.48 million in the prior year period. Net investment income decreased 25.4% to $4.9 million for the year ended December 31, 2022 from $6.6 million in the prior year.\n<\/p>\n Accumulated Other Comprehensive Income \/ (Loss) (\u201cAOCI\u201d), net of tax
\n
<\/span>As of December 31, 2022, AOCI was a loss of $(16.0) million compared to income of $1.8 million at December 31, 2021. The decrease in AOCI at December 31, 2022 of $(17.8) million is attributable to the impact of increased interest rates since December 31, 2021.\n<\/p>\nShare Repurchase Program<\/span><\/b><\/p>\n\nThe Company did not repurchase any shares during the year.\n<\/p>\n Book Value
\n
<\/span><\/b>The Company\u2019s book value per share at December 31, 2022 was $3.38, a decline of 53.2% compared to $7.22 at December 31, 2021.\n<\/p>\n\n\n | \n31-Dec-22<\/b><\/td>\n | | \n30-Sep-22<\/b><\/td>\n | | \n30-Jun-22<\/b><\/td>\n | | \n31-Mar-22<\/b><\/td>\n | | \n31-Dec-21<\/b><\/td>\n<\/tr>\n\n| Book Value Per Share<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n3.38\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n3.65\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n4.42\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.50\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n7.22\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| % Increase from specified period to 12\/31\/22<\/i><\/td>\n | | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -7.4%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -23.5%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -38.5%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -53.2%<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Book value excluding Accumulated Other Comprehensive (Loss) Income per Share1<\/sup><\/span><\/b><\/p>\n\nThe Company\u2019s book value excluding Accumulated Other Comprehensive (Loss) per share at December 31, 2022 was $4.87, a decline of 30.9% compared to $7.05 at December 31, 2021.\n<\/p>\n \n\n | \n31-Dec-22<\/b><\/td>\n | | \n30-Sep-22<\/b><\/td>\n | | \n30-Jun-22<\/b><\/td>\n | | \n31-Mar-22<\/b><\/td>\n | | \n31-Dec-21<\/b><\/td>\n<\/tr>\n\nBook Value Excluding Accumulated Other Comprehensive (Loss) Income Per Share1<\/sup><\/b><\/td>\n| \n \n$\n<\/p>\n<\/td>\n | \n \n4.87\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.15\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.55\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n6.06\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n7.05\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| % Increase from specified period to 12\/31\/22<\/i><\/td>\n | | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -5.4%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -12.2%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -19.6%<\/i><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n -30.9%<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n____________________\n<\/p>\n 1 <\/sup>This measure is not based on GAAP and is defined and reconciled below to the most directly comparable GAAP measure.\n<\/p>\nConference Call Details<\/span><\/b><\/p>\n\nManagement will discuss the Company\u2019s operations and financial results in a conference call on Friday, March 31, 2023, at 8:30 a.m. ET.\n<\/p>\n \nThe dial-in numbers are:
\n
877-407-3105 (U.S.)
\n
201-493-6794 (International)\n<\/p>\n Accompanying Webcast
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<\/span><\/b>The call will be simultaneously webcast over the Internet via the Kingstone website or by clicking on the conference call link:\n<\/p>\nKingstone Companies Q4 and Full Year 2022 Earnings Webcast
\n<\/b><\/a>
<\/b>The webcast will be archived and accessible for approximately 30 days.\n<\/p>\nDefinitions and Non-GAAP Measures<\/span><\/b><\/p>\nDirect written premiums<\/span><\/b> represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written<\/span><\/b> are direct written premiums less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct written premiums and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company\u2019s policies are written for a twelve-month period. Management uses direct written premiums and net premiums written, along with other measures, to gauge the Company\u2019s performance and evaluate results.\n<\/p>\nNet operating income (loss)<\/span><\/b>– is net income (loss) exclusive of realized investment gains (losses), net of tax. Net income (loss) is the GAAP measure most closely comparable to net operating income (loss).\n<\/p>\n\nManagement uses net operating income (loss) along with other measures to gauge the Company\u2019s performance and evaluate results, which can be skewed when including realized investment gains (losses), and may vary significantly between periods. Net operating income (loss) is provided as supplemental information, not as a substitute for net income (loss) and does not reflect the Company\u2019s overall profitability.\n<\/p>\n Book value excluding accumulated other comprehensive (loss) income per share<\/span><\/b> – is book value per share excluding the impact of accumulated other comprehensive (loss) income or AOCI. Management uses book value excluding accumulated other comprehensive (loss) income per share<\/span> to evaluate the results to exclude the impact of interest rate changes on our fixed income portfolio.\n<\/p>\nNet combined ratio excluding effect of catastrophes and prior year loss development<\/span><\/b> – is a non-GAAP ratio, which is computed as the difference between GAAP net combined ratio and the effect of catastrophes and prior year loss development on the net combined ratio.\n<\/p>\n\nWe believe that these ratios are useful to investors and they are used by management to reveal the trends in our business that may be obscured by catastrophe losses and prior year loss development. Catastrophe losses cause our loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the net loss ratio and net combined ratio. Prior year loss development can cause our loss ratio to vary significantly between periods and separating this information allows us to better compare the results for the current accident period over time. We believe these measures are useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide them to facilitate a comparison to our outlook on the net combined ratio excluding the effect of catastrophes and prior year loss development. The most directly comparable GAAP measure is the net combined ratio. The net combined ratio excluding the effect of catastrophes and prior year loss development should not be considered a substitute for the net combined ratio and does not reflect the Company\u2019s net combined ratio.\n<\/p>\n \n______________\n<\/p>\n The table below reconciles direct written premiums and net written premiums to net premiums earned for the periods presented:<\/b><\/p>\n\n\n | \nFor the Three Months Ended<\/b><\/td>\n | | \nFor the Years Ended<\/b><\/td>\n<\/tr>\n\n | \nDecember 31,<\/b><\/td>\n | | \nDecember 31,<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n%<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n%<\/b><\/td>\n<\/tr>\n\n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | | \n$ Change<\/b><\/td>\n | | \nChange<\/b><\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2022<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | | \n$ Change<\/b><\/td>\n | | \nChange<\/b><\/td>\n<\/tr>\n\n| (000\u2019s except percentages)<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Direct and Net Written Premiums Reconciliation:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Direct written premiums<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n53,901\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n50,055\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n3,846\n<\/p>\n<\/td>\n | | \n\n \n7.7\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n201,255\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n181,665\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n19,590\n<\/p>\n<\/td>\n | | \n\n \n10.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Ceded written premiums<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(20,451)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(31,055)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,604\n<\/p>\n<\/td>\n | | \n\n \n(34.1)\n<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(79,195)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(52,910)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(26,285)\n<\/p>\n<\/td>\n | | \n\n \n49.7\n<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net written premiums<\/b><\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n33,450\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n19,000\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n14,450\n<\/p>\n<\/td>\n | | \n\n \n76.1\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n122,060\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n128,755\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(6,695)\n<\/p>\n<\/td>\n | | \n\n \n(5.2)\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Change in unearned premiums<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3,002)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n18,053\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(21,055)\n<\/p>\n<\/td>\n | | \n\n \n(116.6)\n<\/p>\n<\/td>\n | | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(7,675)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n15,127\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(22,802)\n<\/p>\n<\/td>\n | | \n\n \n(150.7)\n<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net premiums earned<\/b><\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n 30,448<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 37,053<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (6,605)<\/b><\/p>\n<\/td>\n | | \n\n (17.8)<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 114,385<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 143,882<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (29,498)<\/b><\/p>\n<\/td>\n | | \n\n (20.5)<\/b><\/p>\n<\/td>\n | \n %<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| (Components may not sum due to rounding)<\/i><\/td>\n<\/tr>\n<\/table>\n \n______________\n<\/p>\n The following table reconciles net operating loss to net (loss) income for the periods indicated:<\/b><\/p>\n\n\n | \nFor the Three Months Ended<\/b><\/td>\n | | \nFor the Years Ended<\/b><\/td>\n<\/tr>\n\n | \nDecember 31, 2022<\/b><\/td>\n | | \nDecember 31, 2021<\/b><\/td>\n | | \nDecember 31, 2022<\/b><\/td>\n | | \nDecember 31, 2021<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \nAmount<\/td>\n | | \nDiluted earnings
(loss) per common share<\/td>\n | | \nAmount<\/td>\n | | \nDiluted earnings
(loss) per common share<\/td>\n | | \nAmount<\/td>\n | | \nDiluted earnings
(loss) per common share<\/td>\n | | \nAmount<\/td>\n | | \nDiluted earnings
(loss) per common share<\/td>\n<\/tr>\n | \n| (000\u2019s except per common share amounts and percentages)<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Net (Loss) Income and Diluted (Loss) Earnings per Common Share Reconciliation:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net (loss) income<\/b><\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (3,950)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.37)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 2,228<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 0.21<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (22,525)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (2.12)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (7,378)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.70)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net realized loss (gain) on investments<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n78\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(4,307)\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n9,392\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(9,787)\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \n| Less tax benefit (expense) on net realized loss (gain)<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n16\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(904)\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n1,972\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(2,055)\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net realized loss (gain) on investments, net of taxes<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n62\n<\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 0.01<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(3,403)\n<\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.31)<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n7,420\n<\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n 0.70<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n(7,732)\n<\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.73)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net operating loss<\/b><\/td>\n | \n $<\/b><\/p>\n<\/td>\n | \n (3,888)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.36)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (1,175)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (0.11)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (15,105)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (1.42)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (15,110)<\/b><\/p>\n<\/td>\n | | \n\n $<\/b><\/p>\n<\/td>\n | \n (1.43)<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Weighted average diluted shares outstanding<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,660,426\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,828,313\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,645,365\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,587,912\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| (Components may not sum due to rounding)<\/i><\/td>\n<\/tr>\n<\/table>\n \n_______________\n<\/p>\n The following table reconciles book value excluding accumulated other comprehensive (loss) income to book value as of the dates indicated:<\/b><\/p>\n\n\n | \n31-Dec-22<\/b><\/td>\n | | \n30-Sep-22<\/b><\/td>\n | | \n30-Jun-22<\/b><\/td>\n | | \n31-Mar-22<\/b><\/td>\n | | \n31-Dec-21<\/b><\/td>\n<\/tr>\n\n| Book Value Per Share<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n3.38\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n3.65\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n4.42\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.50\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n7.22\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Accumulated other comprehensive (loss) income<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(15,958,428)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(15,978,570)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(11,994,258)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(5,964,578)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n1,796,739\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Shares outstanding<\/b><\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,700,106\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,645,675\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,645,675\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,637,901\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n10,484,254\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Accumulated other comprehensive (loss) income per common share<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n(1.49)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(1.50)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(1.13)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n(0.56)\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n0.17\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Book value excluding accumulated other comprehensive (loss) income per share<\/b><\/td>\n | \n \n$\n<\/p>\n<\/td>\n | \n \n4.87\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.15\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n5.55\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n6.06\n<\/p>\n<\/td>\n | | \n\n \n$\n<\/p>\n<\/td>\n | \n \n7.05\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n(Components may not sum due to rounding)<\/i><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n The following table reconciles the net combined ratio excluding catastrophes and prior year loss development to the net combined ratio for the periods presented:<\/b><\/p>\n\n\n | \nFor the Three Months Ended<\/b><\/td>\n | | \nFor the Years Ended<\/b><\/td>\n<\/tr>\n\n | \nDecember 31,<\/b><\/td>\n | | \nDecember 31,<\/b><\/td>\n<\/tr>\n\n | \n\n 2022<\/b><\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | | \nPercentage Point Change<\/b><\/td>\n | | \n\n 2022<\/b><\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | | \nPercentage Point Change<\/b><\/td>\n<\/tr>\n\n| Net Combined Ratio Excluding Catastrophes and Prior Year Development Reconciliation:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Net Combined Ratio Excluding Catastrophes and Prior Year Development<\/b><\/td>\n | \n 93.8%<\/b><\/p>\n<\/td>\n | | \n\n 94.5%<\/b><\/p>\n<\/td>\n | | \n\n (0.7)<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n | | \n\n 104.2%<\/b><\/p>\n<\/td>\n | | \n\n 101.2%<\/b><\/p>\n<\/td>\n | | \n\n 3.0<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Effect of catastrophe losses and prior year development<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Catastrophe losses<\/td>\n | \n \n13.6%\n<\/p>\n<\/td>\n | | \n\n \n6.8%\n<\/p>\n<\/td>\n | | \n\n \n6.8\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n6.7%\n<\/p>\n<\/td>\n | | \n\n \n10.3%\n<\/p>\n<\/td>\n | | \n\n \n(3.6)\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Prior year development<\/td>\n | \n \n6.5%\n<\/p>\n<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n6.5\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n2.4%\n<\/p>\n<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n2.4\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Effect of catastrophe losses and prior year development on net loss and loss adjustment expenses<\/td>\n | \n \n20.1%\n<\/p>\n<\/td>\n | | \n\n \n6.8%\n<\/p>\n<\/td>\n | | \n\n \n13.3\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n9.1%\n<\/p>\n<\/td>\n | | \n\n \n10.3%\n<\/p>\n<\/td>\n | | \n\n \n(1.2)\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Net underwriting expense ratio<\/td>\n | \n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n–\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n–\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Total effect of catastrophe losses and prior year development<\/td>\n | \n \n20.1%\n<\/p>\n<\/td>\n | | \n\n \n6.8%\n<\/p>\n<\/td>\n | | \n\n \n13.3\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n9.1%\n<\/p>\n<\/td>\n | | \n\n \n10.3%\n<\/p>\n<\/td>\n | | \n\n \n(1.2)\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Net combined ratio<\/b><\/td>\n | \n 113.9%<\/b><\/p>\n<\/td>\n | | \n\n 101.3%<\/b><\/p>\n<\/td>\n | | \n\n 12.6<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n | | \n\n 113.3%<\/b><\/p>\n<\/td>\n | | \n\n 111.5%<\/b><\/p>\n<\/td>\n | | \n\n 1.8<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n<\/table>\n\n__________________\n<\/p>\n The following table reconciles the net loss ratio excluding catastrophes and prior year loss development to the net loss ratio for the periods presented:<\/b><\/p>\n\n\n | \nFor the Three Months Ended<\/b><\/td>\n | | \nFor the Years Ended<\/b><\/td>\n<\/tr>\n\n | \nDecember 31,<\/b><\/td>\n | | \nDecember 31,<\/b><\/td>\n<\/tr>\n\n | \n\n 2022<\/b><\/p>\n<\/td>\n | | \n | \n\n 2021<\/b><\/p>\n<\/td>\n | | \nPercentage Point Change<\/b><\/td>\n | | \n\n 2022<\/b><\/p>\n<\/td>\n | | \n | \n\n 2021<\/b><\/p>\n<\/td>\n | | \nPercentage Point Change<\/b><\/td>\n<\/tr>\n\n| Net Loss Ratio Excluding Catastrophes and Prior Year Development Reconciliation:<\/b><\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net Loss Ratio Excluding Catastrophes and Prior Year Development<\/b><\/td>\n | \n 61.2%<\/b><\/p>\n<\/td>\n | | \n | \n\n 55.0%<\/b><\/p>\n<\/td>\n | | \n\n 6.2<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n | | \n\n 68.2%<\/b><\/p>\n<\/td>\n | | \n | \n\n 60.6%<\/b><\/p>\n<\/td>\n | | \n\n 7.6<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Effect of catastrophe losses and prior year development<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Catastrophe losses<\/td>\n | \n \n13.6%\n<\/p>\n<\/td>\n | | \n | \n\n \n6.8%\n<\/p>\n<\/td>\n | | \n\n \n6.8\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n6.7%\n<\/p>\n<\/td>\n | | \n | \n\n \n10.3%\n<\/p>\n<\/td>\n | | \n\n \n(3.6)\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Prior year development<\/td>\n | \n \n6.5%\n<\/p>\n<\/td>\n | | \n | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n6.5\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n2.4%\n<\/p>\n<\/td>\n | | \n | \n\n \n0.0%\n<\/p>\n<\/td>\n | | \n\n \n2.4\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n| Effect of catastrophe losses and prior year development on net loss and loss adjustment expenses<\/td>\n | \n \n20.1%\n<\/p>\n<\/td>\n | | \n | \n\n \n6.8%\n<\/p>\n<\/td>\n | | \n\n \n13.3\n<\/p>\n<\/td>\n | | \npts<\/td>\n | | \n\n \n9.1%\n<\/p>\n<\/td>\n | | \n | \n\n \n10.3%\n<\/p>\n<\/td>\n | | \n\n \n(1.2)\n<\/p>\n<\/td>\n | | \npts<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Net loss ratio<\/b><\/td>\n | \n 81.3%<\/b><\/p>\n<\/td>\n | | \n | \n\n 61.8%<\/b><\/p>\n<\/td>\n | | \n\n 19.5<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n | | \n\n 77.3%<\/b><\/p>\n<\/td>\n | | \n | \n\n 70.9%<\/b><\/p>\n<\/td>\n | | \n\n 6.4<\/b><\/p>\n<\/td>\n | | \npts<\/b><\/td>\n<\/tr>\n<\/table>\n \n_______________\n<\/p>\n The following table summarizes gross and net written premiums, net premiums earned, net loss and loss adjustment expenses and net loss ratio by major product type, which were determined based primarily on similar economic characteristics and risks of loss.<\/b><\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |