Certain statements contained in this Form10-Q, or otherwise made by our officers, including statements related to our future performance, our outlook for our businesses and respective markets, projections, statements of our management’s plans or objectives, forecasts of market trends and other matters, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and contain information relating to us that is based on the beliefs of our management as well as assumptions made by, and information currently available to, our management. The words “expect,” “believe,” “may,” “could,” “should,” “would,” “estimate,” “anticipate,” “intend,” “plan,” “target,” “goal” and similar expressions as they relate to us or our management are intended to identify forward-looking statements. Such statements reflect our management’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those reflected in any forward-looking statements. Our actual future results may differ materially from those set forth in our forward-looking statements. Factors that might cause such actual results to differ materially from those reflected in any forward-looking statements include, but are not limited to the factors discussed in detail in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form10-Q, as well as:

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our management’s analysis only as of the date they are made. We undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

See the accompanying notes to the unaudited condensed consolidated financial statements.

The condensed consolidated financial statements included herein have been prepared by AmerInst Insurance Group, Ltd. (“AmerInst”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). These financial statements reflect all adjustments consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations as of the end of and for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under U.S. GAAP to be included in a full set of financial statements. In these notes, the terms “we”, “us”, “our” or the “Company” refer to AmerInst and its subsidiaries. These condensed statements should be read in conjunction with the audited consolidated financial statements at and for the year ended December 31, ~~2016~~2021 and notes thereto, included in AmerInst’s Annual Report on Form~~10-K~~10-K for the year then ended.

~~Revenue from Contracts with Customers~~Accounting Standards Not Yet Adopted

Financial Instruments Credit Losses-Measurement of Credit Losses on Financial Instruments

In ~~May 2014,~~ June 2016, the FASB issued ~~Accounting Standards Update2014-09,~~ ~~“Revenue from Contracts~~ASU 2016-13, which amends the guidance on impairment of financial instruments and significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The ASU will replace the existing “incurred loss” approach, with ~~Customers” (“ASU2014-09”).~~ ~~ASU2014-09~~ ~~provides a framework, through a five-step process,~~an “expected loss” model for ~~recognizing revenue from customers, improves comparability~~instruments measured at amortized cost and ~~consistency of recognizing revenue across~~require entities ~~industries, jurisdictions~~to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the existing other than temporary impairment model. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and ~~capital markets, and requires enhanced disclosures. Certain contracts with customers~~loans. The Company’s insurance premium balances receivables are ~~specifically excluded from~~also more significant financial assets within the scope of ASU~~2014-09,~~ ~~including; without limitation, insurance contracts accounted for under Accounting Standard Codification 944,~~~~Financial Services—Insurance~~~~. ASU2014-09~~ ~~was~~2016-13. The guidance requires financial assets to be presented at the net amount expected to be collected. The tentative effective ~~on January 1, 2017 with retrospective adoption required~~date for the ~~comparative periods. The~~ASU is January 1,2023. We do not expect the adoption of this ASU~~2014-09~~ ~~did not~~ to have a material impact on ~~the Company’s~~our consolidated financial statements.

6Property and equipment, all associated with Protexure, at September 30, 2022 and December 31,2021 at cost, less accumulated depreciation and amortization, totaled $700,98F0 and $898,560 respectively as follows:

Prepaid expenses and ~~losses,~~ other assets as at September 30, 2022 and ~~estimated fair value of~~December 31,2021 comprise the ~~Company’s~~following:

Accrued expenses and other liabilities as at September 30, 2022 and December 31,2021 comprise the following:

In September 2021, the Company liquidated its entire investment in fixed ~~maturity investments, by major security type,~~income securities and equity securities asto fund its commitment under the C&F Commutation Agreement (as defined below). Information on sales and maturity of investments and net unrealized gains (losses) on equity investments during the nine months ended September 30, ~~2017~~ 2022 and ~~December 31, 2016~~2021 are as follows:

The following tables summarize the Company’s fixed maturity and equity securities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:

As of September 30, 2017 and December 31, 2016, there were 21 and 27 securities in an unrealized loss position with an estimated fair value of $6,192,958 and $7,811,779, respectively. As of September 30, 2017 and December 31, 2016, three and six of these securities had been in an unrealized loss position for 12 months or greater, respectively. As of September 30, 2017 and December 31, 2016, none of these securities were considered to be other-than-temporarily impaired. The Company has the intent to hold these securities for a sufficient period of time for the value to recover and it is not more likely than not that the Company will be required to sell these securities before their fair values recover above the adjusted cost. The unrealized losses from these securities were not as a result of credit, collateral or structural issues.

At September 30, 2017 and December 31, 2016, the Company had investments in certificates of deposit (“CD”) in the amount of $490,000 comprised of fully insured time deposits placed with Federal Deposit Insurance Corporation (“FDIC”) insured commercial banks and savings associations. The FDIC, an independent agency of the United States government, protects depositors up to an amount of $250,000 per depositor, per insured institution. FDIC insurance is backed by the full faith and credit of the United States government. The stated interest rate of an FDIC insured CD varies greatly among commercial banks and savings associations, depending on the term of the CD and the institution’s need for funding. The liquidity of “marketable” CDs is marginal, even though they are assigned an FDIC number, a CUSIP number and are held in book-entry form through the Depository Trust Company. Depending on market liquidity and conditions, the bid price for an FDIC insured CD would reflect the supply of and the demand for deposits of the particular bank or savings association, as well as prevailing interest rates, the remaining term of the deposit, specific features of the CD, and compensation of the broker arranging the sale of the CD. These time deposits mature in less than one year and are classified as other invested assets on the Company’s consolidated balance sheet.

~~The Company assesses whether declines in the fair value of its fixed maturity investments classified asavailable-for-sale~~ represent impairments that are other-than-temporary by reviewing each fixed maturity investment that is impaired and (1) determining if the Company has the intent to sell the fixed maturity investment or if it is more likely than not that the Company will be required to sell the fixed maturity investment before its anticipated recovery; and (2) assessing whether a credit loss exists, that is, where the Company expects that the present value of the cash flows expected to be collected from the fixed maturity investment are less than the amortized cost basis of the investment.

~~The Company had no planned sales of its fixed maturity investments classified asavailable-for-sale~~ that were in an unrealized loss position at September 30, 2017. In assessing whether it is more likely than not that the Company will be required to sell a fixed maturity investment before its anticipated recovery, the Company considers various factors including its future cash flow requirements, legal and regulatory requirements, the level of its cash, cash equivalents, short term investments and fixed maturity investments available for sale in an unrealized gain position, and other relevant factors. For the nine months ended September 30, 2017, the Company did not recognize any other-than-temporary impairments due to sales.

In evaluating credit losses, the Company considers a variety of factors in the assessment of a fixed maturity investment including: (1) the time period during which there has been a significant decline below cost; (2) the extent of the decline below cost and par; (3) the potential for the fixed maturity investment to recover in value; (4) an analysis of the financial condition of the issuer; (5) the rating of the issuer; and (6) failure of the issuer of the fixed maturity investment to make scheduled interest or principal payments.

Equity securities are reviewed on a regular basis to determine if they have sustained an impairment of value that is considered to be other than temporary. Several factors are considered in the assessment of an investment, which include (i) the extent of the decline below cost, and (ii) the potential for the security to recover in value.

If we conclude a security is other-than-temporarily impaired, we write down the amortized cost of the security to fair value, with a charge to net realized investment gains (losses) in the Consolidated Statement of Operations. Gross unrealized losses on the investment portfolio as of September 30, 2017 and December 31, 2016, relating to 12 and 16 fixed maturity securities, amounted to $30,334 and $89,937, respectively, and nine and 22 equity securities, amounted to $71,603 and $128,395, respectively. The unrealized losses on these available for sale fixed maturity securities were not as a result of credit, collateral or structural issues. During the nine months ended and three months ended September 30, 2017, the Company recorded a total other-than-temporary impairment charge of $98,918 and $73,646 on two and one equity security, respectively, as a result of the decline in fair value below cost. No other-than-temporary impairment charges were recorded during the three months ended September 30, 2017. During the nine months ended and three months ended September 30, 2016, the Company recorded a total other-than-temporary impairment charge of $219,417 and $98,301 on four and two equity securities, respectively, as a result of the decline in fair value below cost.

Under existing U.S. GAAP, we are required to recognize certain assets at their fair value in our consolidated balance sheets. This includes our fixed maturity investments and equity securities. In accordance with the Fair Value Measurements and Disclosures Topic of Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level (Level 1) and unobservable inputs being the lowest level (Level 3). A fair value measurement will fall within the level of the hierarchy based on the inputs that are significant to determining such measurement. The three levels are defined as follows:

~~Level~~ 2: Observable inputs to the valuation methodology other than quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

~~Level~~ 3~~: Inputs to the valuation methodology that are unobservable for the asset or liability.~~

At each measurement date, we estimate the fair value of the security using various valuation techniques. We utilize, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of our investments. When quoted market prices or observable market inputs are not available, we utilize valuation techniques that rely on unobservable inputs to estimate the fair value of investments. The following describes the valuation techniques we used to determine the fair value of investments held as of September 30, 2017 and December 31, 2016 and what level within the fair value hierarchy each valuation technique resides:

~~U.S. government agency securities~~: Comprised primarily of bonds issued by the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Federal Farm Credit Bank and the Federal National Mortgage Association. The fair values of U.S. government agency securities are priced using the spread above the risk-free U.S. Treasury yield curve. As the yields for the risk-free U.S. Treasury yield curve are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2 in the fair value hierarchy. AmerInst considers a liquid market to exist for these types of securities held. Broker quotes are not used for fair value pricing.

~~Obligations of state and political subdivisions~~: Comprised of fixed income obligations of state and local governmental municipalities. The fair values of these securities are based on quotes and current market spread relationships, and are classified as Level 2 in the fair value hierarchy. AmerInst considers a liquid market to exist for these types of securities held. Broker quotes are not used for fair value pricing.

~~Corporate debt securities~~: Comprised of bonds issued by corporations. The fair values of these securities are based on quotes and current market spread relationships, and are classified as Level 2 in the fair value hierarchy. AmerInst considers a liquid market to exist for these types of securities held. Broker quotes are not used for fair value pricing.

~~Equity securities, at fair value~~: Comprised primarily of investments in the common stock of publicly traded companies in the U.S. All of the Company’s equities are classified as Level 1 in the fair value hierarchy. The Company receives prices based on closing exchange prices from independent pricing sources to measure fair values for the equities.

~~Hedge fund~~: Comprised of a hedge fund whose objective was to seek attractive long-term returns with lower volatility by investing in a range of diversified investment strategies. The fair value of the hedge fund is based on the net asset value of the fund as reported by the external fund manager.

In May 2016, the manager of our hedge fund portfolio chose to liquidate the fund and return its capital to the investors. The liquidation of the fund and the return of capital to its investors is expected to be completed by December 31, 2017.

While we obtain pricing from independent pricing services, management is ultimately responsible for determining the fair value measurements for all securities. To ensure fair value measurement is applied consistently and in accordance with U.S. GAAP, we periodically update our understanding of the pricing methodologies used by the independent pricing services. We also undertake further analysis with respect to prices we believe may not be representative of fair value under current market conditions. Our review process includes, but is not limited to: (i) initial and ongoing evaluation of the pricing methodologies and valuation models used by outside parties to calculate fair value; (ii) quantitative analysis; (iii) a review of multiple quotes obtained in the pricing process and the range of resulting fair values for each security, if available, and (iv) randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates provided by the independent pricing sources.

There have been no material changes to our valuation techniques from what was used as of December 31, 2016. Since the fair value of a security is an estimate of what a willing buyer would pay for such security if we sold it, we cannot know the ultimate value of our securities until they are sold. We believe the valuation techniques utilized provide us with a reasonable estimate of the price that would be received if we were to sell our assets or transfer our liabilities in an orderly market transaction between participants at the measurement date. The following tables show the fair value of the Company’s investments in accordance with ASC 820 as of September 30, 2017 and December 31, 2016:

   Carrying
amount    Total fair
value    Fair value measurement using:
         Quoted prices
in active
markets
(Level 1)    Significant other
observable inputs
(Level 2)    Significant
unobservable inputs
(Level 3)
As of September 30, 2017

U.S. government agency securities
   $ 1,402,876    $ 1,402,876    $ —      $ 1,402,876    $ —
Obligations of U.S. state and political subdivisions
   4,017,909    4,017,909       4,017,909
Corporate debt securities
   6,201,882    6,201,882       6,201,882





Total fixed maturity investments
   11,622,667    11,622,667





Equity securities (excluding the hedge fund)
   16,942,863    16,942,863    16,942,863





Total equity securities (excluding the hedge fund)
   16,942,863    16,942,863










Hedge fund measured at net asset value (a)
   14,147    14,147





Total investments
   $ 28,579,677    $ 28,579,677    $ 16,942,863    $ 11,622,667    $ —










   Carrying
amount    Total fair
value    Fair value measurement using:
         Quoted prices
in active
markets
(Level 1)    Significant other
observable inputs
(Level 2)    Significant
unobservable inputs
(Level 3)
As of December 31, 2016

U.S. government agency securities
   $ 1,466,806    $ 1,466,806    $ —      $ 1,466,806    $ —
Obligations of U.S. state and political subdivisions
   4,134,744    4,134,744       4,134,744
Corporate debt securities
   5,760,871    5,760,871       5,760,871





Total fixed maturity investments
   11,362,421    11,362,421





Equity securities (excluding the hedge fund)
   15,025,077    15,025,077    15,025,077





Total equity securities (excluding the hedge fund)
   15,025,077    15,025,077










Hedge fund measured at net asset value (a)
   140,467    140,467





Total investments
   $ 26,527,965    $ 26,527,965    $ 15,025,077    $ 11,362,421    $ —

~~(a)~~

~~In accordance with Subtopic820-10,~~ certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position

~~There were no transfers between Levels 1 and 2 during the nine months ended September 30, 2017 and the year ended December 31, 2016.~~

The cost or amortized cost and estimated fair value of fixed maturity investments as of September 30, 2017 and December 31, 2016 by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations without penalties.

   Amortized
Cost    Estimated
Fair Value
As of September 30, 2017

Due in one year or less
   $ 1,971,330    $ 1,974,410
Due after one year through five years
   8,636,153    8,661,201
Due after five years through ten years
   449,292    448,686
Due after ten years
   539,057    538,370




Total
   $ 11,595,832    $ 11,622,667




   Amortized
Cost    Estimated
Fair Value
As of December 31, 2016

Due in one year or less
   $ 1,455,729    $ 1,457,201
Due after one year through five years
   8,081,777    8,089,289 ��
Due after five years through ten years
   1,701,987    1,648,731
Due after ten years
   167,486    167,200




Total
   $ 11,406,979    $ 11,362,421

Information on sales and ~~maturities~~maturity of investments and net unrealized gains (losses) on equity investments during the ~~nine~~three months ended September 30, ~~2017~~ 2022 and ~~2016~~2021 are as follows:

   September 30,
2017    September 30,
2016
Total proceeds on sales ofavailable-for-sale securities
   $ 4,144,366    $ 4,776,870
Proceeds from redemptions of hedge fund investments
   75,160    —
Proceeds from redemptions of fixed maturity investments
   691,540    1,114,403
Total proceeds from maturities of fixed maturity investments
   1,450,000    1,035,000
Gross gains on sales
   1,245,755    1,956,107
Gross losses on sales
   (18,493 )    (15,809 )
Impairment losses
   (98,918 )    (219,417 )

~~Information on sales and maturities of investments during the three months ended September 30, 2017 and 2016 are as follows:~~

	September 30, 2022		September 30, 2021
Total proceeds on sales of available-for-sale securities	$	—	$	1,684,014
Proceeds from redemptions of fixed maturity investments		—		21,047,547
Total proceeds from maturities of fixed maturity investments		—		—
Gross gains on sales		—		499,859
Gross losses on sales		—		(72,926	)
Net unrealized (losses) gains on equity investments		—		(82,081	)
Total	$	—	$	344,852

   September 30,
2017    September 30,
2016
Total proceeds on sales ofavailable-for-sale securities
   $ 1,115,439    $ 2,232,934
Proceeds from redemptions of hedge fund investments
   22,692    —
Proceeds from redemptions of fixed maturity investments
   80,000    1,114,403
Total proceeds from maturities of fixed maturity investments
   500,000    330,000
Gross gains on sales
   366,562    1,073,665
Gross losses on sales
   (16,144 )    (14,597 )
Impairment losses
   (73,646 )    (98,301 )

12Net Investment Income

Major categories of net investment income during the nine months ended September 30, ~~2017~~ 2022 and ~~2016~~2021 are summarized as follows:


	September 30, 2017			September 30, 2016			September 30, 2022		September 30, 2021
Interest earned:
Fixed maturity investments	$	187,541		$	139,274		$	—	$	234,601
Short term investments and cash and cash equivalents		14,488			3,056			1,452		7,237
Dividends earned		213,358			169,351			—		13,170
Investment expenses		(109,385	)		(101,743	)		—		(50,384	)

Net investment income	$	306,002		$	209,938		$	1,452	$	204,624

Major categories of net investment income during the three months ended September 30, ~~2017~~2022 and ~~2016~~2021 are summarized as follows:


	September 30, 2017			September 30, 2016			September 30, 2022		September 30, 2021
Interest earned:
Fixed maturity investments	$	64,440		$	47,245		$	—	$	66,412
Short term investments and cash and cash equivalents		3,139			1,152			1,400		2,965
Dividends earned		39,497			50,569			—		6,381
Investment expenses		(37,234	)		(35,145	)		—		(17,865	)

Net investment income	$	69,842		$	63,821		$	1,400	$	57,893

6. LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table presents a reconciliation of the beginning and ending balances for the liability for unpaid losses and loss adjustment expenses for the nine months ended September 30, ~~2017~~ 2022 and ~~2016:~~2021:

							September 30, 2022		September 30, 2021
	2017			2016
Liability—beginning of period	$	8,941,991		$	6,583,474
Liability—beginning of year							$	—	$	20,936,677
Incurred related to:
Current year		4,022,703			3,249,245			—		1,652,101
Prior years		—			—			—		(147,337	)

Total incurred		4,022,703			3,249,245			—		1,504,764


Paid related to:
Current year		(187,963	)		(20,029	)		—		(4,267	)
Prior years		(2,198,297	)		(669,615	)		—		(22,395,890	)

Total paid		(2,386,260	)		(689,644	)		—		(22,400,157	)

Liability—end of period	$	10,578,434		$	9,143,075		$	—	$	41,284

~~As incurred losses for~~

During the ~~nine months ended September 30, 2017 are derived~~third quarter of 2021, a commutation agreement, effective as of March 31, 2021 (the “C&F Commutation Agreement”), was entered into by ~~multiplying our estimated loss ratio~~and between C&F and AMIC Ltd. (each as defined in Management’s Discussion and Analysis, below), whereby C&F and AMIC Ltd. agreed to fully and finally settle and commute all their respective past, present and future obligations and liabilities, known and unknown, under the Reinsurance Agreement (as defined in Management’s Discussion and Analysis, below). In accordance with the C&F Commutation Agreement, in full satisfaction of ~~64.5%~~AMIC Ltd.’s past, present and future obligations and liabilities under the ~~net premiums earned, as stated~~Reinsurance Agreement, an aggregate sum of $26,076,000 was paid by AMIC Ltd. to C&F in ~~Results~~October 2021.

During the first quarter of ~~Operations below,~~2022, a commutation agreement, effective December 31, 2021 (the “CAMICO Commutation Agreement”), was entered into between CAMICO Mutual Insurance Company (“CAMICO”) and AMIC Ltd., whereby CAMICO and AMIC Ltd. agreed to fully and finally settle and commute all ~~incurred losses are assumed~~their respective past, present and future obligations and liabilities, known and unknown, under the reinsurance contract between CAMICO and AMIC Ltd. In accordance with the CAMICO Commutation Agreement, in full satisfaction of AMIC Ltd.’s past present and future obligations and liabilities under the reinsurance contract between CAMICO and AMIC Ltd., an aggregate sum of $15,000 was paid by CAMICO to ~~be current year losses.~~AMIC Ltd. in March 2022.

7. SEGMENT INFORMATION

AmerInst has two reportable segments: ~~(1)~~(1) reinsurance ~~activity,~~and corporate, previously called the reinsurance segment, through which ~~also includes investments~~the company provided reinsurance under the now commuted reinsurance agreements, conducted investment operations and conducts other corporate activities and ~~(2)~~(2) insurance activity, through which the Company offers professional liability solutions to professional service firms under the Agency ~~Agreement with C&F,~~Agreements, as defined in the “Overview” section below.

The tables below summarize the results of our reportable segments as of and for the nine months ended September 30, 2022 and 2021.

	As of and for the Nine Months Ended September 30, 2022
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	1,450		$	1,743,344		$	1,744,794
Total losses and expenses		438,696			2,358,722			2,797,418
Segment income (loss)		(437,246	)		(615,378	)		(1,052,624	)
Identifiable assets		—			700,980			700,980

	As of and for the Nine Months Ended September 30, 2021
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	3,212,581		$	2,656,916		$	5,869,497
Total losses and expenses		3,814,799			2,758,741			6,573,540
Segment income (loss)		(602,218	)		(101,825	)		(704,043	)
Identifiable assets		—			950,251			950,251

The tables below summarize the results of our reportable segments as of and for the ~~nine~~three months ended September 30, ~~2017~~ 2022 and ~~2016.~~2021.


	As of and for the Nine Months Ended September 30, 2017						As of and for the Three Months Ended September 30, 2022
	Reinsurance Segment		Insurance Segment		Total		Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	7,667,097	$	3,553,826	$	11,220,923	$	1,400		$	489,998		$	491,398
Total losses and expenses		7,331,376		3,136,975		10,468,351		116,547			816,560			803,592
Segment income		335,721		416,851		752,572
Segment (loss) income								(115,147	)		(326,562	)		(441,709	)
Identifiable assets		—		269,789		269,789		—			700,980			700,980

	As of and for the Nine Months Ended September 30, 2016
	Reinsurance Segment		Insurance Segment		Total
Revenues	$	6,891,340	$	2,957,429	$	9,848,769
Total losses and expenses		5,878,504		2,926,548		8,805,052
Segment income		1,012,836		30,881		1,043,717
Identifiable assets		—		230,288		230,288

~~The tables below summarize the results of our reportable segments as of and for the three months ended September 30, 2017 and 2016.~~

	As of and for the Three Months Ended September 30, 2021
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	(1,335,096	)	$	808,934		$	(526,162	)
Total losses and expenses		(443,869	)		872,819			428,950
Segment (loss) income		(891,227	)		(63,885	)		(955,112	)
Identifiable assets		—			950,251			950,251

   As of and for the Three Months Ended September 30, 2017
   Reinsurance
Segment    Insurance
Segment    Total
Revenues
   $ 2,579,771    $ 1,164,418    $ 3,744,189
Total losses and expenses
   2,624,427    1,014,702    3,639,129
Segment (loss) income
   (44,656 )    149,716    105,060
Identifiable assets
   —      269,789    269,789
   As of and for the Three Months Ended September 30, 2016
   Reinsurance
Segment    Insurance
Segment    Total
Revenues
   $ 2,869,863    $ 975,482    $ 3,845,345
Total losses and expenses
   2,115,268    967,180    3,082,448
Segment income
   754,595    8,302    762,897
Identifiable assets
   —      230,288    230,288

5.8. STOCK COMPENSATION

~~AmerInst Professional Services, Limited~~

Phantom Shares:

Protexure Insurance Agency, Inc. (“~~APSL”~~Protexure”), a subsidiary of AmerInst, has employment agreements with ~~four~~two key members of senior management, ~~including one of our named executive officers, Kyle Nieman, the President of APSL,~~ which grant them phantom shares of the Company. Under these agreements, these employees were initially granted an aggregate of ~~75,018~~48,762 phantom shares of the Company on the date of their employment, subject to certain vesting requirements. The phantom shares are eligible for phantom dividends payable at the same rate as regular dividends on the Company’s common shares. The phantom dividends may be used only to purchase additional phantom shares with the purchase price of such phantom shares being the net book value of the Company’s actual common shares as of the end of the previous quarter. During the ~~nine months ended September 30, 2017, 1,467 phantom shares were granted, arising from the dividends declared on the Company’s common shares. During the three months ended September 30, 2017,~~year, no phantom shares were granted. ~~86,161 phantom shares were outstanding at September 30, 2017.~~

For ~~three of~~ these twoemployees, ~~including Mr. Nieman,~~ the phantom shares initially granted, as well as any additional shares granted from dividends declared, vested on January 1,2015. ~~For the fourth employee, the phantom shares initially granted, as well as any additional shares granted from dividends declared, will vest on January 1, 2018.~~ The liability payable to each of these employees under the phantom share agreements is equal to the value of the phantom shares based on the net book value of the Company’s actual common shares at the end of the previous quarter less the value of phantom shares initially granted and is payable in cash upon (i) the ~~earlier~~participant’s death, termination of employment due to disability, retirement at or after age 65 or resignation for good reason, (ii) termination of the ~~employee attaining 65 years~~participant by the Company without cause, (iii) termination by the participant without good reason or (iv) change in control of ~~age or within 60 days of such employee’s death or permanent disability, including if such death or permanent disability occurs before January 1, 2018 for~~ the ~~fourth employee.~~Company.

The liability relating to these phantom shares is recalculated quarterly based on the net book value of our common shares at the end of each quarter. As a result of the overall decrease in the net book value of our common shares since the grant dates, we have not recorded any liability relating to these phantom shares at September 30,2022.

Stock Option Plan:

The Company has a nonqualified stock option plan to advance the development, growth and financial condition of the Company. This plan provides incentives through participation in the appreciation of its common stock in order to secure, retain and motivate directors and employees and align such person’s interests with those of its shareholders. A total of 100,000 shares are authorized under the stock option plan.

A summary of the status of the stock option plan as of September 30, ~~2017.~~2022 is as follows:

~~During~~

	Vested Shares		Weighted Average Exercise Price Per Share		Non-vested Shares			Weighted Average Exercise Price Per Share		Total Shares		Weighted Average Exercise Price Per Share
Outstanding—January 1, 2022		34,200	$	28.43		10,800		$	28.86		45,000	$	28.54
Granted		—		—		—			—		—		—
Forfeited		—		—		—			—		—		—
Exercised		—		—		—			—		—		—
Vested		8,400		28.42		(8,400	)		28.42		—		—
Outstanding—September 30, 2022		42,600	$	28.43		2,400		$	30.40		45,000	$	28.54
Options exercisable at year end		—		—		—			—		—		—
Weighted average fair value of options per share granted during the year		—		—	$	—			—	$	—		—
Remaining contractual life (years)		0.5				1.6					0.5

A summary of the ~~quarter ended March 31, 2017, 35,000~~status of the stock option plan as of December 31,2021 is as follows:

	Vested Shares		Weighted Average Exercise Price Per Share		Non-vested Shares			Weighted Average Exercise Price Per Share		Total Shares		Weighted Average Exercise Price Per Share
Outstanding—January 1, 2021		25,300	$	28.40		19,700		$	28.71		45,000	$	28.54
Granted		—		—		—			—		—		—
Forfeited		—		—		—			—		—		—
Exercised		—		—		—			—		—		—
Vested		8,900		28.52		(8,900	)		28.52		—		—
Outstanding—December 31, 2021		34,200	$	28.43		10,800		$	28.86		45,000	$	28.54
Options exercisable at year end		—		—		—			—		—		—
Weighted average fair value of options per share granted during the year		—		—	$	—			—	$	—		—
Remaining contractual life (years)		1.2				1.4					1.3

The Company accounts for these options ~~were granted to the Company’s directors at a strike price of $27.99,~~in accordance with U.S. GAAP, which ~~represented~~requires that the fair ~~market value based on the net book~~ value of the ~~Company’s common~~equity awards be recognized as compensation expense over the period during which the employee is required to provide service in exchange for such an award. The Company is amortizing compensation expense over the vesting period, or five years. The Company recognized $0 of compensation expense for stock ~~as of December 31, 2016. These~~ options ~~vest in five equal annual installments beginning on March 3, 2018.~~for the nine months ended September 30, 2022 and 2021, respectively.

Item 2.

~~Management’s~~

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis (“MD&A”) provides supplemental information, which sets forth the major factors that have affected our financial condition and results of operation and should be read in conjunction with our condensed consolidated financial statements and notes thereto included in this Form10-Q.

Certain statements contained in this Form10-Q, including this MD&A section, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and contain information relating to us that is based on the beliefs of our management as well as assumptions made by, and information currently available to, our management. The words “expect,” “believe,” “may,” “could,” “should,” “would,” “estimate,” “anticipate,” “intend,” “plan,” “target,” “goal” and similar expressions as they relate to us or our management are intended to identify forward-looking statements.

All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. Please see the Introductory Note and Item 1A “Risk Factors” of our ~~2016~~2021 Annual Report on Form10-K, as updated in our subsequent quarterly reports filed on Form10-Q, and in our other filings made from time to time with the Commission after the date of this report for a discussion of factors that could cause our actual results to differ materially from those in the forward-looking statements. However, the risk factors listed in Item 1A “Risk Factors” of our ~~2016~~2021 Annual Report on Form10-K or discussed in this Quarterly Report on Form10-Q should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our management’s analysis only as of the date they are made. We undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The following discussion addresses our financial condition and results of operations for the periods and as of the dates indicated.

OVERVIEW

Unless otherwise indicated by the context in this quarterly report, we refer to AmerInst Insurance Group, Ltd. and its subsidiaries as the “Company,” “AmerInst,” “we” or “us.” “AMIC Ltd.” means AmerInst’s wholly owned subsidiary, AmerInst Insurance Company, Ltd. ~~“APSL”~~“Protexure” means ~~AmerInst Professional Services, Limited,~~Protexure Insurance Agency, Inc., a Delaware corporation and wholly owned subsidiary of AmerInst Mezco, Ltd. which is a wholly owned subsidiary of AmerInst. ~~“Investco” means AmerInst Investment Company, Ltd., a wholly owned subsidiary of AMIC Ltd.~~ Our principal offices are c/o ~~Citadel~~Davies Captive Management ~~Bermuda~~ Limited, 25 Church Street, Continental Building, P.O. Box HM 1601, Hamilton, Bermuda, HM GX.

AmerInst Insurance Group, Ltd. is a Bermuda holding company formed in 1998 that provides insurance protection for professional service ~~firms and engages in investment activities.~~firms. AmerInst has two reportable segments: (1) reinsurance ~~activity,~~and corporate, previously called the reinsurance segment, through which ~~includes investments~~the company provided reinsurance under the now commuted reinsurance agreements, conducted investment operations and conducts other corporate activities and (2) insurance activity, through which the Company offers professional liability solutions to professional service ~~firms.~~firms under the Agency Agreements. The revenues of the reinsurance and corporate activity reportable segment and the insurance activity reportable segment were ~~$7,667,097~~$1,450 and ~~$3,553,826,~~$1,743,344 respectively, for the nine months ended September 30, ~~2017~~2022 compared to ~~$6,891,340~~$3,212,581 and ~~$2,957,429,~~$2,656,916, respectively, for the nine months ended September 30, ~~2016.~~2021. The revenues for both reportable segments were derived from business operations in the United States other than interest income on bank accounts maintained in Bermuda.

15Agency Agreements with C&F and ISMIE

~~Entry into Agency Agreement~~

On September 25, 2009, ~~APSL~~Protexure entered into an agency agreement (the ~~“Agency~~“C&F Agency Agreement”) with The North River Insurance Company, United States Fire Insurance Company, Crum & Forster Indemnity Company, Crum and Forster Insurance Company, and Crum & Forster Specialty Insurance Company (collectively, “C&F”) pursuant to which C&F appointed ~~APSL~~Protexure as its exclusive agent for the purposes of soliciting, underwriting, quoting, binding, issuing, cancelling,non-renewing and endorsing accountants’ professional liability and lawyers’ professional liability insurance coverage in all 50 states of the United States and the District of Columbia. The initial term of the C&F Agency Agreement was for four years with automaticone-year renewals thereafter. The C&F Agency Agreement automatically renewed on September 25, ~~2017.~~2021.

In 2021, C&F and Protexure signed an addendum to the C&F Agency Agreement which terminated the C&F Agency Agreement effective March 31, 2022. Under the terms of the addendum, Protexure was permitted to issue new and renewal professional liability policies on behalf of C&F with effective dates no later than March 31, 2022.

Effective January 1, 2022, Protexure entered into a Managing General Agency Agreement (the “ISMIE Agency Agreement”) with Amwins Specialty Casualty Solutions, LLC. for policies written by ISMIE Mutual Insurance Company (“ISMIE”). Protexure is transitioning the lawyers and accountants’ professional liability policies previously written with C&F to ISMIE. Certain policies are and will also be written by the Hanover Insurance Company. The C&F Agency Agreement and the ISMIE Agency Agreement are referred to herein as, collectively, the “Agency Agreements.”

~~Entry into~~ Reinsurance Agreement

We ~~conduct our~~previously conducted reinsurance business through AMIC Ltd., our subsidiary, which iswas a registered insurer in Bermuda. On September 25, 2009, AMIC Ltd. entered into a professional liability quota share agreement with C&F (the “Reinsurance Agreement”) pursuant to which C&F agreed to cede, and AMIC Ltd. agreed to accept as reinsurance, a 50% quota share of C&F’s liability under insurance written by ~~APSL~~Protexure on behalf of C&F and classified by C&F as accountants’ professional liability and lawyers’ professional liability, subject to AMIC Ltd.’s surplus limitations. Policies written by insurers other than C&F were not subject to the 50% quota share reinsurance to AMIC Ltd. The term of the Reinsurance Agreement iswas continuous and ~~may~~could be terminated by either party upon at least 120 days’ prior written notice to the other party. Following the commutation of all of AMIC’s reinsurance business and the decision by the Company’s board of directors not to resume reinsurance operations through AMIC, the Company made an application to the BMA to cancel AMIC’s insurance license. Effective May 17, 2022 AMIC Ltd.’s Class 3A insurance license was cancelled by the Bermuda Monetary Authority.

During the third quarter of 2021, C&F and AMIC Ltd. entered into the C&F Commutation Agreement, which became effective as of March 31, 2021, whereby C&F and AMIC Ltd. agreed to fully and finally settle and commute all their respective past, present and future obligations and liabilities, known and unknown, under the Reinsurance Agreement. In accordance with the C&F Commutation Agreement, in full satisfaction of AMIC Ltd.’s past, present and future obligations and liabilities under the Reinsurance Agreement, an aggregate sum of $26,076,000 was paid by AMIC Ltd. to C&F in October 2021.

Historical Relationship with CAMICO

From June 1, 2005 through May 31, 2009, we were a party to a reinsurance contract with CAMICO Mutual Insurance Company (“CAMICO”), a California-based writer of accountants’ professional liability business.

We decided not to renew the CAMICO contract and permitted the contract to expire pursuant to its terms on May 31, 2009. We ~~remain~~remained potentially liable for claims related to coverage through May 31, 2009.

During the first quarter of 2022, CAMICO and AMIC Ltd. entered into the CAMICO Commutation Agreement, which became effective December 31, 2021, whereby CAMICO and AMIC Ltd. agreed to fully and finally settle and commute all their respective past, present and future obligations and liabilities, known and unknown under the reinsurance contract between CAMICO and AMIC Ltd. In accordance with the CAMICO Commutation Agreement, in full satisfaction of AMIC Ltd.’s past present and future obligations and liabilities under the reinsurance contract between CAMICO and AMIC Ltd., an aggregate sum of $15,000 was paid by CAMICO to AMIC Ltd. in March 2022.

Third-party Managers and Service Providers

~~Citadel~~

Davies Captive Management ~~Bermuda~~ Limited ~~(formerly Cedar Management Limited)~~ provides theday-to-day services necessary for the administration of our business. Our agreement with ~~Citadel~~Davies Captive Management ~~Bermuda~~ Limited renewed for one year beginning January 1, ~~2017~~2022 and ending December 31, ~~2017.~~2022. Mr. Thomas R. McMahon, our Treasurer and Chief Financial Officer, is ~~a shareholder,~~an officer, director, and employee of ~~Citadel Management Bermuda Limited. Mr. Stuart Grayston, our President, was formerly a director and officer of Cedar~~Davies Captive Management Limited.

The Country Club Bank of Kansas City, Missouri, provides portfolio management of fixed-income securities and directs our investments pursuant to guidelines approved by us. Harris Associates L.P. and Tower Wealth Managers, Inc. provide discretionary investment advice with respect to our equity investments. We have retained Oliver Wyman, an independent casualty actuarial consulting firm, to render advice regarding actuarial matters.

RESULTS OF OPERATIONS

Nine months ended September 30, ~~2017~~2022 compared to nine months ended September 30, ~~2016~~2021

We recorded a net ~~income~~loss of ~~$752,572~~$1,052,624 for the nine months ended September 30, ~~2017~~2022 compared to a net ~~income~~loss of ~~$1,043,717~~704,043 for the same period in ~~2016.~~2021. The ~~decrease~~increase in net loss is due primarily to a reduction in earned premium, partially offset by reductions in losses and loss expenses and policy acquisition costs; a reduction in commission income; and reductions in net investment income ~~was mainly attributable to the decrease in~~and net realized and unrealized gains on investments, ~~net of impairment from $1,720,881 for the nine months ended September 30, 2016 to $1,128,344 for the nine months ended September 30, 2017 as~~partially offset by a ~~result of decreased sales of equity securities in an unrealized gain position during the first nine months of 2017 compared to the same period in 2016 and to the increase~~reduction in operating and management expenses from $3,720,350 for the nine months ended September 30, 2016 to $4,138,855 for the nine months ended September 30, 2017, as discussed in further detail below. This was partially offset by the increase in commission income from $2,957,272 for the nine months ended September 30, 2016 to $3,551,532 for the nine months ended September 30, 2017 as a result of a higher volume of premiums written under the Agency Agreement.expenses.

Our net premiums earned for the nine months ended September 30, ~~2017~~2022, were ~~$6,235,045~~$0 compared to ~~$4,960,678~~$2,581,408 for the ~~nine months ended September 30, 2016, an increase~~same period in 2021, a decrease of ~~$1,274,367~~$2,581,408 or ~~25.7%~~100%. The net premiums earned ~~for~~during the ~~nine months~~quarter ended September 30, ~~2017 and 2016~~2021, were attributable to cessions from C&F under the Reinsurance Agreement. The ~~increase in net~~Company entered into the C&F Commutation Agreement with C&F effective March 31, 2021, and no premiums ~~earned under~~subsequent to that date were ceded pursuant to the Reinsurance Agreement during the first nine months of 2017 compared to the same period in 2016 resulted from increased cessions from C&F in 2017, arising from a higher level of underwriting activity under the Agency Agreement due to the continued marketing of the program by APSL which resulted in greater penetration in targeted markets.

Agreement.

During the ~~nine months~~nine-month period ended September 30, ~~2017~~2022 and ~~2016,~~2021, we recorded commission income under the Agency ~~Agreement~~Agreements of ~~$3,551,532~~$1,743,342 and ~~$2,957,272,~~$2,656,532, respectively, ~~an increase~~a decrease of ~~$594,260~~$913,190 or ~~20.1%~~34.4%. This ~~increase~~decrease resulted from ~~a higher~~the lower volume of premiums written under the Agency ~~Agreement in 2017 due~~Agreements during the nine-month period ended September 30, 2022 compared to the ~~continued marketing of~~same period in 2021, which is primarily attributed to the ~~program~~decrease in premiums written under the C&F agency agreement offset by ~~APSL which resulted~~the increase in ~~greater penetration in~~premiums written under the ~~targeted markets.~~ISMIE agency agreement.

We recorded net investment income of ~~$306,002 for~~$1,452 during the ~~nine months~~nine-month period ended September 30, ~~2017~~2022 compared to ~~$209,938~~$204,624, for the ~~nine months~~nine-months ended September 30, ~~2016.~~2021. The ~~increase~~decrease in net investment income was ~~due to~~primarily the ~~increase~~result of the September 2021 liquidation of the Company’s entire investment in dividend income, which was attributable to a certain higher yielding equity security held in our investment portfolio during the nine months of 2017 compared to the same period in 2016 and to the increase in interest income, which was attributable to higher yielding fixed income securities ~~held~~and equity securities and also a decrease in ~~the Company’s investment portfolio during the nine months of 2017 compared to the same period in 2016.~~interest earned on short term investments and cash and cash equivalents. The annualized investment yield, calculated as total interest and dividends divided by the net average amount of total investments and cash and cash equivalents, was ~~1.2%~~0% for the ~~nine months~~nine-months ended September 30, ~~2017,~~2022, compared to the ~~1.0%~~0.9% yield earned for the ~~nine months~~same period in 2021.

We recorded net realized and unrealized gains on investments of $0 during the nine-month period ended September 30, ~~2017.~~

~~Sales~~2022 compared to net realized and unrealized gains of ~~securities~~$426,933 during the ~~nine months~~nine-month period ended September 30, ~~2017 resulted in realized gains on investments net of impairment of $1,128,344 compared to $1,720,881 for the nine months ended September 30, 2016,~~2021, a decrease of ~~$592,537.~~$426,933 or 100%. The decrease ~~in realized gains primarily related to decreased sales of equity securities in an unrealized gain position during the first nine months of 2017 compared~~is attributed to the ~~same period~~September 2021 liquidation of the Company’s entire investment in ~~2016.~~fixed income securities and equity securities.

For the nine months ended September 30, ~~2017,~~2022, we recorded loss and loss adjustment expenses of ~~$4,022,703 derived by multiplying our estimated loss ratio of 64.5% and the net premiums earned under the Reinsurance Agreement of $6,235,045.~~$0. For the ~~nine months ended September 30, 2016,~~same period in 2021, we recorded loss and loss adjustment expenses of ~~$3,249,245 derived by multiplying our estimated loss ratio of 65.5% and the net premiums earned under the Reinsurance Agreement of $4,960,678.~~$1,504,764. The ~~increase~~decrease in loss and loss adjustment expense was ~~primarily~~ due to ~~an increase in net premiums earned during~~ the ~~first nine months~~commutation of ~~2017 compared to~~business under the corresponding period in 2016, partially offset by a reduction of our estimated loss ratio. The decrease in the estimated loss ratio was primarily the result of better than expected loss emergence in policy year 2013.reinsurance agreements.

We recorded policy acquisition costs of ~~$2,306,793~~$0 for the nine months ended September 30, ~~2017~~2022 compared to ~~$1,835,457~~$1,405,774 for the same period in ~~2016.~~2021. Policy acquisition costs, which are primarily ceding commissions paid to the ceding insurer, are established as a percentage of premiums ~~earned; therefore, any increase or decrease in~~earned. The policy acquisition costs recorded during the nine-month period ended September 30, 2022 and 2021 were 0% and 54% of the net premiums earned ~~will result in a similar increase or decrease in policy acquisition costs.~~under the Reinsurance Agreement of $0 and $2,581,408, respectively. The policy acquisition costs recorded during the nine months ended September 30, ~~2017 and 2016 were~~2021 represented the net of (i) $955,122, being 37% of the $2,581,408 in net premiums earned under the Reinsurance Agreement as at March 31, 2021, which is the effective date of ~~$6,235,045~~the Commutation Agreement and ~~$4,960,678, respectively.~~(ii) the reversal of the established premium deficiency reserve at December 31, 2020 of $985,876 and the reversal of the remaining deferred policy acquisition cost balance of $1,436,528, with both reversals being attributed to the Commutation Agreement. The decrease in policy acquisition costs was attributable to the decrease in premiums earned, which was due to the commutation of business under the reinsurance agreements.

We ~~expensed~~incurred operating and management expenses of ~~$4,138,855 for~~$2,407,713 in the ~~nine months~~nine-month period ended September 30, ~~2017~~2022 compared to ~~$3,720,350~~$3,699,146 for the same period in ~~2016, an increase~~2021, a decrease of ~~$418,505~~$1,291,433 or ~~11.2%~~34.9%. The ~~increase~~decrease was primarily attributable to ~~increased net commissions~~(i) decreased director’s expenses due to the elimination of retainers paid to ~~outside brokers~~directors as a part of compensation (ii) decreased salaries and related costs associated with Protexure’s reduction in ~~association with~~personnel during 2022 and 2021in its effort to reduce overall costs (iii) decreased sub commission expenses resulting from a decrease in sub produced premiums and (iv) reduction in fees to third-party managers and service providers. Additionally, Protexure qualified for payroll retention credits in the ~~Agency Agreement.~~amount of $417,559 which are included as a reduction to the operating and management expenses

As required by Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, management has assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax asset which is made up primarily by NOL carryforwards. A valuation allowance of $624,000 was recorded as of December 31, 2021. As of September 30, 2022, the valuation allowance has increased by $445,000 to $1,069,000 to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The increase in valuation allowance is the result of cumulative losses incurred in 2021 and through the third quarter of 2022, as well as the difficulty in providing reasonable projections beyond a five-year period due to the change in agency agreements and the uncertainty around certain states Protexure can write business in. The amount of the deferred tax asset considered reasonable could be adjusted if future estimates of taxable income during the carryforward period change, or if objective negative evidence in the form of cumulative losses is no longer present, where we can then apply additional weight to subjective evidence such as our growth projections.

The tables below summarize the results of the following AmerInst reportable segments: (1) reinsurance ~~activity,~~and corporate, previously called the reinsurance segment, through which ~~also includes investments~~the company provided reinsurance under the now commuted reinsurance agreements, conducted investment operations and conducts other corporate activities and (2) insurance activity, through which the Company offers professional liability solutions to professional service firms under the Agency ~~Agreement with C&F.~~

   As of and for the Nine Months Ended September 30, 2017
   Reinsurance
Segment    Insurance
Segment    Total
Revenues
   $ 7,667,097    $ 3,553,826    $ 11,220,923
Total losses and expenses
   7,331,376    3,136,975    10,468,351
Segment income
   335,721    416,851    752,572
Identifiable assets
   —      269,789    269,789
   As of and for the Nine Months Ended September 30, 2016
   Reinsurance
Segment    Insurance
Segment    Total
Revenues
   $ 6,891,340    $ 2,957,429    $ 9,848,769
Total losses and expenses
   5,878,504    2,926,548    8,805,052
Segment income
   1,012,836    30,881    1,043,717
Identifiable assets
   —      230,288    230,288
Agreements.

	As of and for the Nine Months Ended September 30, 2022
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	1,450		$	1,743,344		$	1,744,794
Total losses and expenses		438,696			2,358,722			2,797,418
Segment income (loss)		(437,246	)		(615,378	)		(1,052,624	)
Identifiable assets		—			700,980			700,980

	As of and for the Nine Months Ended September 30, 2021
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	3,212,581		$	2,656,916		$	5,869,497
Total losses and expenses		3,814,799			2,758,741			6,573,540
Segment income (loss)		(602,218	)		(101,825	)		(704,043	)
Identifiable assets		—			950,251			950,251

Three months ended September 30, ~~2017~~2022 compared to three months ended September 30, ~~2016~~2021

We recorded net ~~income~~loss of ~~$105,060 during third quarter of 2017~~$441,709 for the three months ended September 30, 2022 compared to a net ~~income~~loss of ~~$762,897~~$955,112 for the ~~same period in 2016.~~three-months ended September 30, 2021. The decrease in net income was mainly attributable to the decrease in realized gains on investments net of impairment from $960,767 in the third quarter of 2016 to $276,772 in the third quarter of 2017 as a result of decreased sales of equity securities in an unrealized gain position during the third quarter of 2017 compared to the same period in 2016 andloss can be attributed primarily to the increase in ~~operating and management expenses from $1,192,097 in the third quarter of 2016 to $1,370,383 in the third quarter of 2017, as discussed in further detail below. This was partially~~premiums earned offset by the increase in loss and loss adjustment expenses in the same period. The decrease in commission income ~~from $976,514~~and investment income was offset by the decrease in policy acquisition costs and operating and management expenses for the ~~third quarter of 2016 to $1,163,669 in the third quarter of 2017 as a result of a higher volume of premiums written under the Agency Agreement~~three-month period.

Our net premiums earned for the ~~third quarter of 2017~~three months ended September 30, 2022, were ~~$2,233,906~~$0 compared to ~~$1,844,243~~$(1,737,803) for the ~~third quarter of 2016,~~same period in 2021, an increase of ~~$389,663~~$1,737,803 or ~~21.1%~~100%. The net premiums earned during the ~~quarters~~quarter ended September 30, ~~2017 and 2016~~2021, were attributable to cessions from C&F under the Reinsurance Agreement. The ~~increased cessions during~~premiums earned for the third quarter of ~~2017 compared to~~2021 represents the ~~third quarter of 2016 arose from a higher level of underwriting activity under the Agency Agreement due to the continued marketing~~reversal of the ~~program by APSL,~~second quarter cession as the result of the Commutation Agreement, which ~~resulted in greater penetration in targeted markets.~~has an effective date of March 31, 2021

~~For~~

During the ~~quarters~~three-month period ended September 30, ~~2017~~2022 and ~~2016,~~2021, we recorded commission income under the Agency ~~Agreement~~Agreements of ~~$1,163,669~~$489,998 and ~~$976,514,~~$808,896, respectively, ~~an increase~~a decrease of ~~$187,155~~$318,898 or ~~19.2%~~39.4%. This ~~increase~~decrease resulted from ~~a higher~~the lower volume of premiums written under the Agency ~~Agreement~~Agreements during the three-month period ended September 30, 2022 compared to the same period in ~~2017.~~2021, which is primarily attributed to the decrease in premiums as a result of the termination of the C&F agency agreement.

We recorded net investment income of ~~$69,842 for~~$1,400 during the ~~quarter~~three-month period ended September 30, ~~2017~~2022, compared to ~~$63,821~~$57,893, for the ~~quarter~~three-months ended September 30, ~~2016.~~2021. The ~~increase~~decrease in net investment income was ~~due to a larger base~~primarily the result of the September 2021 liquidation of the Company’s entire investment in fixed income securities and equity securities ~~held~~and also a decrease in ~~the Company’s investment portfolio during the third quarter of 2017 compared to the same period in 2016.~~interest earned on short term investments and cash and cash equivalents. The annualized investment yield, calculated as total interest and dividends divided by the net average amount of total investments and cash and cash equivalents, was ~~.8%~~0% for the ~~quarter~~three-months ended September ~~30, 2017,~~30,2022, compared to the ~~.9%~~0.8% yield earned for the ~~quarter~~same period in 2021.

We recorded net realized and unrealized gains on investments of $0 during the three-month period ended September 30, ~~2016.~~

~~Sales~~2022 compared to net realized and unrealized gains of ~~securities for~~$344,852 during the ~~quarter~~three-month period ended September 30, ~~2017 resulted~~2021, a decrease of $344,852 or 100%. The decrease is attributed to the September 2021 liquidation of the Company’s entire investment in ~~realized gains on investments net of impairment of $276,772 compared to $960,767 during~~fixed income securities and equity securities.

For the ~~quarter~~three months ended September 30, ~~2016, a decrease of $683,995 or 71.2%. The decrease in realized gains primarily related to decreased sales of equity securities in an unrealized gain position compared to 2016.~~

~~For the quarter ended September 30, 2017,~~2022, we recorded loss and loss adjustment expenses of ~~$1,441,968 derived by multiplying our estimated loss ratio of 64.5% and the net premiums earned under the Reinsurance Agreement of $2,233,906.~~$0. For the ~~quarter ended September 30, 2016,~~same period in 2021, we recorded loss and loss adjustment expenses of ~~$1,207,979 derived by multiplying our estimated~~$(1,259,530). The losses and loss ~~ratio~~adjustment expenses for the third quarter of ~~65.5% and~~2021 represented (i) the ~~net premiums earned~~reversal of the second quarter cession under the Reinsurance Agreement of $1,844,243. The increase in loss and loss adjustment expense was primarily due to an increase in net premiums earned during the third quarter of 2017 compared to the corresponding period in 2016, partially offset by a reduction of our estimated loss ratio. The decrease in the estimated loss ratio was primarilyas the result of ~~better than expected loss emergence in policy year 2013.~~the Commutation Agreement which had an effective date of March 31, 2021 and (ii) the recording of a $147,377 gain under the Commutation Agreement.

We recorded policy acquisition costs of ~~$826,778 in~~$0 during the ~~third quarter of 2017~~three-months ended September 30, 2022 compared to ~~$682,372~~$579,317 for the same period in ~~2016.~~2021. Policy acquisition costs, which are primarily ceding commissions paid to the ceding insurer, ~~are~~were established as a percentage of premiums ~~earned; therefore, any increase or~~earned. The decrease in policy acquisition costs was attributable to the decrease in premiums earned, ~~will result in a similar increase or decrease in policy acquisition costs. The policy acquisition costs recorded during~~which was due to the ~~third quarter~~commutation of ~~2017 and 2016 were 37% of the net premiums earned~~business under the ~~Reinsurance Agreement of $2,233,906 and $1,844,243, respectively.~~reinsurance agreements.

We incurred operating and management expenses of ~~$1,370,383~~$463,082 in the ~~third quarter 2017~~three-month period ended September 30, 2022 compared to ~~$1,192,097~~$1,135,526 for the same period in ~~2016, an increase~~2021, a decrease of ~~$178,286~~$672,444 or ~~15%~~59.2%. The ~~increase was~~decrease is primarily attributable to ~~increased~~recognizing the payroll retention credits Protexure qualified for from 2020-2021. The decrease was also attributable to (i) decreased director’s expenses due to the elimination of retainers paid to directors as a part of compensation (ii) decreased salaries and related costs associated with Protexure’s reduction in personnel during 2022 and 2021in its effort to reduce overall costs (iii) decreased sub commission ~~costs~~expenses resulting from a decrease in ~~relation to~~ sub produced ~~business associated with the Agency Agreement.~~

premiums and (iv) reduction in fees to third-party managers and service providers.

18As required by Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, management has assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax asset which is made up primarily by NOL carryforwards. A valuation allowance of $624,000 was recorded as of December 31, 2021. As of September 30, 2022, the valuation allowance has increased by $445,000 to $1,069,000 to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The increase in valuation allowance is the result of cumulative losses incurred in 2021 and through the third quarter of 2022, as well as the difficulty in providing reasonable projections beyond a five-year period due to the change in agency agreements and the uncertainty around certain states Protexure can write business in. The amount of the deferred tax asset considered reasonable could be adjusted if future estimates of taxable income during the carryforward period change, or if objective negative evidence in the form of cumulative losses is no longer present, where we can then apply additional weight to subjective evidence such as our growth projections.


	As of and for the Three Months Ended September 30, 2017							As of and for the Three Months Ended September 30, 2022
	Reinsurance Segment			Insurance Segment		Total		Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	2,579,771		$	1,164,418	$	3,744,189	$	1,400		$	489,998		$	491,398
Total losses and expenses		2,624,427			1,014,702		3,639,129		116,547			816,560			803,592
Segment (loss) income		(44,656	)		149,716		105,060		(115,147	)		(326,562	)		(441,709	)
Identifiable assets		—			269,789		269,789		—			700,980			700,980

	As of and for the Three Months Ended September 30, 2016
	Reinsurance Segment			Insurance Segment		Total
Revenues	$	2,869,863		$	975,482	$	3,845,345
Total losses and expenses		2,115,268			967,180		3,082,448
Segment income		754,595			8,302		762,897
Identifiable assets		—			230,288		230,288

	As of and for the Three Months Ended September 30, 2021
	Reinsurance and Corporate			Insurance Segment			Total
Revenues	$	(1,335,096	)	$	808,934		$	(526,162	)
Total losses and expenses		(443,869	)		872,819			428,950
Segment (loss) income		(891,227	)		(63,885	)		(955,112	)
Identifiable assets		—			950,251			950,251

FINANCIAL CONDITION

As of September 30, 2017, our total investments were $28,579,677, an increase of $2,051,712 or 7.7%, from $26,527,965 at December 31, 2016. This increase was primarily due to the increase in the fair value of certain equity securities as a result of favorable market conditions and to the purchase of additional equity securities with both net premiums received under the Reinsurance Agreement and positive cash inflows derived from net investment income.

The cash and cash equivalents balance ~~increased~~decreased from ~~$4,631,709~~$3,477,714 at December 31, ~~2016~~2021 to ~~$5,249,801~~$2,037,046 at September 30, ~~2017, an increase~~2022, a decrease of ~~$618,092~~$1,440,668 or ~~13.3%~~41.4%. The ~~amount~~net decrease resulted primarily from cash outflows associated with the funding of ~~cash~~our day-to-day operations and ~~cash equivalents varies depending on the maturities~~settlement of fixed term investments and the level of funds invested in money market funds. The restricted cash and cash equivalents balance increased from $23,392 at December 31, 2016 to $120,414 at September 30, 2017, an increase of $97,022 or 414.8%. The increase is due to the timing of sales and maturities of investments held as restricted cash at September 30, 2017 that have been reinvested. Other invested assets remained unchanged at $490,000 as of September 30, 2017 and December 31, 2016. The ratio of cash, total investments and other invested assets to total liabilities at September 30, 2017 was 1.72:1, compared to a ratio of 1.76:1 at December 31, 2016.accrued liabilities.

The assumed reinsurance balances receivable represents the current assumed premiums receivable less commissions payable to the fronting carriers. As of September 30, 2017, the balance was $1,471,134 compared to $1,285,126 as of December 31, 2016. The increase resulted from a higher level of premiums assumed under the Reinsurance Agreement during 2017.

The assumed reinsurance payable represents current reinsurance losses payable to the fronting carriers. As of September 30, 2017, the balance was $1,049,665 compared to $1,254,687 as of December 31, 2016. This balance fluctuates due to the timing of losses being reported to us.

Deferred policy acquisition costs, which represent the deferral of ceding commission expense related to premiums not yet earned, increased from $1,384,915 at December 31, 2016 to $1,730,956 at September 30, 2017. The increase in deferred policy acquisition costs in 2017 was due to the increase in both net premiums written and unearned premiums assumed under the Reinsurance Agreement compared to the prior year. The ceding commission rate under the Reinsurance Agreement is 37%.

Prepaid expenses and other assets were ~~$1,539,444~~$1,404,978 at September 30, ~~2017~~2022 compared to ~~$1,398,739 as of~~$1,091,815 at December 31, ~~2016.~~2021. The balance primarily relates to (1) prepaid directors’ and officers’ liability insurance costs, (2) ~~the prepaid directors’ retainer, (3)~~ prepaid professional fees and ~~(4)~~(3) premiums due to ~~APSL~~Protexure under the Agency ~~Agreement. The increase~~Agreements. This balance fluctuates due to the timing of the prepayments and the receipt of premiums by Protexure. Additionally, Protexure qualified for payroll retention credits in the ~~balance was partially attributable to~~amount of $417,559 with the ~~annual director fee payments to~~receivable from the ~~Company’s directors made~~United States Treasury included in ~~June 2017 relating to the period from June 1, 2017 to May 31, 2018.~~this balance. The payroll retention credits were collected in October 2022.

Accrued expenses and other liabilities primarily represent premiums payable by ~~APSL to C&F~~Protexure cedants under ~~the~~ Agency ~~Agreement~~Agreements and expenses accrued relating largely to professional fees. The balance decreased from ~~$4,035,617~~$2,860,876 at December 31, ~~2016~~2021 to ~~$3,762,664~~$2,182,415 at September 30, ~~2017,~~2022, a decrease of ~~$272,953~~$683,799 or ~~6.8%~~23.9%. This balance fluctuates due to the timing of the premium payments ~~to C&F~~ and payments of professional fees.

LIQUIDITY AND CAPITAL RESOURCES

Our cash needs consist of ~~settlement of losses~~i) settling expenses and ~~expenses under our reinsurance treaties and~~(ii) fundingday-to-day operations. ~~In continuing the implementation of our business plan, our~~Our management expects that our unrestricted cash balance will be sufficient to meet ~~these~~our cash needs ~~from cash flows arising from~~and fund our investment portfolio. Because substantially all of our assets are marketable securities, we expect that we will have sufficient flexibility to provide for unbudgeted cash needs that may arise from time to time without resorting to borrowing, subject to Bermuda statutory limitations as discussed in our 2016 Form~~10-K.~~day-to-day operations over the next twelve-month period.

Total cash, investments and other invested assets ~~increased~~decreased from ~~$31,673,066~~$3,477,714 at December 31, ~~2016~~2021 to ~~$34,439,892~~$2,037,046 at September 30, ~~2017, an increase~~2022, a decrease of ~~$2,766,826~~$1,440,668 or ~~8.7%~~41.4%. The net ~~increase~~decrease resulted primarily from ~~positive~~ cash ~~inflows derived~~outflows associated with the funding of our day-to-day operations and settlement of accrued liabilities.

The Company continues to receive approval from ~~net investment income~~ISMIE to write in additional states for lawyers and ~~net premiums received under~~accountants and thus the ~~Reinsurance Agreement in~~Company is confident it will be able to convert C&F expiring business and business expiring with other companies to ISMIE throughout the ~~amount~~remainder of ~~$1,731,307, partially offset by dividends of $303,919 paid during the first nine months of 2017.~~2022.

The Bermuda Monetary Authority has authorized ~~Investco~~AMIC Ltd. to purchase our common shares, on a negotiated basis, from shareholders who have died or retired from the practice of public accounting. ~~During the nine months ended~~From its inception through September 30, ~~2017, no such transactions occurred. Through September 30, 2017, Investco~~2022, AMIC Ltd. had repurchased ~~191,896~~232,979 common shares from shareholders who had died or retired ~~for a total~~at an aggregate purchase price of ~~$5,435,936.~~$6,653,703. During the nine months ended September 30, 2022, no such transactions occurred. From time to time, ~~Investco~~AMIC Ltd. has also purchased shares in privately negotiated transactions. ~~Through~~From its inception through September 30, ~~2017, Investco had~~2022, AMIC Ltd. has purchased an additional 75,069 common shares in such privately negotiated transactions ~~for a total~~at an aggregate purchase price of $1,109,025. During the nine months ended September 30, ~~2017,~~2022, no such transactions occurred.

Cash Dividends

We paid no dividends ~~of $0.50 per share~~ during the second quarter of 2017, which amounted to aggregate total ordinary cash dividends of $323,323. The aggregate dividends paid in 2017 have been reduced by $19,404, which represents a write-back of uncashed dividends issued prior to 2012 to shareholders that we have been unable to locate.nine-month period ended September 30, 2022. Since we began paying dividends in 1995, our original shareholders have received ~~$21.87~~$22.87 in cumulative dividends per share. When measured by a total rate of return calculation, this has resulted in an effective annual rate of return of approximately 8.7% from our inception, based on a per share purchase price of $8.33 paid by the original shareholders, and using an unaudited net book value of $30.00 per share as of September 30, 2017. Although we have paid cash dividends on a regular basis in the past, the declaration and payment of cash dividends in the future will be at the discretion of our board of directors, subject to the requirements of applicable law, and will depend on, among other things, our financial condition, results of operations, current and anticipated cash needs and other factors that our board of directors considers relevant.

~~OFF-BALANCE~~ ~~SHEET ARRANGEMENTS~~

~~The Company is not a party to anyoff-balance~~ ~~sheet arrangements.~~

CRITICAL ACCOUNTING POLICIES

Our critical accounting policies are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form10-K for the year ended December 31, ~~2016~~2021 and is incorporated herein by reference.

~~We have identified accounting for~~ Due to the ~~liability for losses~~commutation agreements “Unpaid Losses and ~~loss adjustment expenses as our most~~Loss Adjustment Expense Reserves” and “Other than Temporary Impairment of Investments” are no longer considered critical accounting policy and estimate in that it is important to the portrayal of our financial condition and results, and it requires our subjective and complex judgment as a result of the need to make estimates about the effects of matters that are inherently uncertain. This accounting policy, including the nature of the estimates and types of assumptions used, are described throughout this Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form~~10-K~~ ~~for the year ended December 31, 2016.~~policies.

Available Information

We file annual, quarterly, and current reports, proxy statements and other information with the Commission. You may read any public document we file with the Commission at the Commission’s public reference room at 100 F Street, NE, Washington, DC 20549. Please call the Commission at1-800-SEC-0330 for information on the public reference room. The Commission maintains an internet site that contains annual, quarterly, and current reports, proxy and information statements and other information that issuers (including AmerInst) file electronically with the Commission. The Commission’s internet site iswww.sec.gov.

Our internet site iswww.amerinst.bm. We make available free of charge through our internet site our annual report onForm 10-K, quarterly reports on Form10-Q, current reports on Form8-K and any amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Commission. We also make available, through our internet site, via links to the Commission’s internet site, statements of beneficial ownership of our equity securities filed by our directors, officers, 10% or greater shareholders and others under Section 16 of the Securities Exchange Act. In addition, we post onwww.amerinst.bm our Memorandum of Association, ourBye-Laws, our Statement of Share Ownership Policy, Charters for our Audit Committee and Governance and Nominations Committee, as well as our Code of Business Conduct and Ethics. You can request a copy of these documents, excluding exhibits, at no cost, by writing or telephoning us c/o ~~Citadel~~Davies Captive Management ~~Bermuda~~ Limited, 25 Church Street, Continental Building, P.O. Box HM 1601 Hamilton, Bermuda HM GX, Attention: Investor Relations(441) ~~295-6015.~~295-2185. The information on our internet site is not incorporated by reference into this report.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, ~~2017,~~2022, the end of the period covered by this Form10-Q, our management, including our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined inRule 13a-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer each concluded that as of September 30, ~~2017,~~2022, the end of the period covered by this Form10-Q, we maintained effective disclosure controls and procedures.

Changes in Internal Control over Financial Reporting

Our management, including our Principal Executive Officer and Principal Financial Officer, has reviewed our internal control over financial reporting (as defined in Rule13a-15(f) under the Securities Exchange Act of 1934). There have been no ~~significant~~ changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part ~~II—~~II—OTHER INFORMATION

Item 1.

Legal Proceedings

We are party to various legal proceedings generally arising in the normal course of our business. While any proceeding contains an element of uncertainty, we do not believe that the eventual outcome of any litigation or arbitration proceeding to which we are presently a party will have a material adverse effect on our financial condition or business. Pursuant to our insurance and reinsurance agreements, disputes are generally required to be finally settled by arbitration.

Item 1A.

Risk Factors

In addition to the other information set forth in this Quarterly Report on Form10-Q, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our ~~2016~~2021 Annual Report on Form10-K, as updated in our subsequent quarterly reports. Certain material updates to these risk factors are included below. The risks described in our ~~2016~~2021 Annual Report on Form10-K and our subsequent quarterly reports are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or operating results.

If we sell Protexure, we would have no further business operations.

In the event that we elect to pursue a sale of Protexure in the future rather than continue to hold and operate it long term, we would have no further business operations. If we are unable to sell Protexure on favorable terms, we may need to explore less advantageous strategic alternatives, which could adversely affect our financial condition.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

On July 1, 2017, the Company transferred an aggregate of 2,548 shares of its common stock out of shares held by Investco, the Company’s wholly owned subsidiary, to the Company’s directors as part of the directors’ fees payable in respect of the directors’ board service from the 2017 Annual General Meeting until the 2018 Annual General Meeting. These shares were transferred in reliance upon one or more exemptions from the registration requirements under the Securities Act of 1933, as amended, including Rule 506 and Section 4(a)(2) thereunder.

None.

Item 3.

Defaults Upon Senior Securities.

None.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information

None.

Item 6.

Exhibits

~~(a)~~

(a)

Exhibits


Exhibit Number		Description

31.1		Certification of ~~Stuart H. Grayston~~Joseph P. Murphy pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~31.2~~
31.2	Certification of Thomas R. McMahon pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~32.1~~
32.1	Certification of ~~Stuart H. Grayston~~Joseph P. Murphy pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~32.2~~
32.2	Certification of Thomas R. McMahon pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

~~AMERINST INSURANCE GROUP, LTD.~~

~~INDEX TO EXHIBITS~~

~~Filed with the Quarterly Report on Form10-Q~~ ~~for the Quarter Ended September 30, 2017~~SIGNATURES


~~Exhibit~~ ~~Number~~		~~Description~~

~~31.1~~		~~Certification of Stuart H. Grayston pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~

~~31.2~~		~~Certification of Thomas R. McMahon pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~

~~32.1~~		~~Certification of Stuart H. Grayston pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~

~~32.2~~		~~Certification of Thomas R. McMahon pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~

~~101.INS~~		~~XBRL Instance Document~~

~~101.SCH~~		~~XBRL Taxonomy Extension Schema Document~~

~~101.CAL~~		~~XBRL Taxonomy Extension Calculation Linkbase Document~~

~~101.LAB~~		~~XBRL Taxonomy Extension Label Linkbase Document~~

~~101.PRE~~		~~XBRL Taxonomy Extension Presentation Linkbase Document~~

~~101.DEF~~		~~XBRL Taxonomy Extension Definition Linkbase Document~~

~~SIGNATURES~~

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Dated: November ~~14, 2017~~15, 2022				AMERINST INSURANCE GROUP, LTD.
	(Registrant)

	~~(Registrant)~~ By:	/s/ JOSEPH P. MURPHY

			~~By:~~		/S~~/ STUART~~ ~~H. GRAYSTON~~Joseph P. Murphy
					~~Stuart H. Grayston~~
					President (Principal Executive Officer, duly authorized to sign this
		Report in such capacity and on behalf of the Registrant)

	By:	/s/ THOMAS R. MCMAHON
		Thomas R. McMahon
		Chief Financial Officer (Principal Financial Officer, duly authorized to
		sign this Report in such capacity and on behalf of the Registrant)

			~~By:~~		/S~~/ THOMAS~~ ~~R. MCMAHON~~
					~~Thomas R. McMahon~~
					~~Chief Financial Officer (Principal Financial Officer, duly authorized to sign this Report in such capacity and on behalf of the Registrant)~~


~~BERMUDA~~ Bermuda		98-0207447
(State or other jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

c/o ~~Citadel~~Davies Captive Management ~~Bermuda~~ Limited 25 Church Street, Continental Building P.O. Box HM 1601, Hamilton, Bermuda		HMGX
(Address of Principal Executive Offices)		(Zip Code)


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☒
		~~Accelerated filer~~
Emerging Growth Company	☐		☐

~~Non-accelerated~~ ~~filer~~		☐ ~~(Do not check if a smaller reporting company)~~		~~Smaller reporting company~~	☒

~~Emerging Growth Company~~		☐

	•	a worsening global economic market and changing rates of inflation and other economic conditions;

	•	our continuing ability to enter into new agency agreements with other carriers;

	•	changes in the amount of professional liability business accepted by our insurance company partners;

	•	our reliance on our subsidiary, Protexure Insurance Agency, Inc. (“Protexure”), for business operations and the potential that Protexure may be sold;

	•	our ability to generate increased revenues and positive earnings in future periods;

	•	subjection of our non-U.S. companies to regulation and/or taxation in the United States;

	•	a decrease in the level of demand for professional liability insurance or an increase in the supply of professional liability insurance capacity;

	•	our ability to meet the performance goals and metrics set forth in our business plan without a significant depletion of our cash resources while maintaining sufficient capital levels and liquidity levels;

	•	the effects of security breaches, cyber-attacks or computer viruses that may affect our computer systems or those of our customers, third-party managers, and service providers;

	•	increased competitive pressures, including the consolidation and increased globalization of insurance providers;

	•	increased or decreased rate pressure on premiums;

	•	the successful integration of businesses we may acquire or new business ventures we may start;

	•	the effects of natural disasters, harsh weather conditions, widespread health emergencies (including the ongoing COVID-19 pandemic), military conflict, terrorism, civil unrest or other geopolitical and unpredictable events;

	•	climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business;

	•	changes in Bermuda and United States law or regulation or the political stability of Bermuda and the United States;


	As of September 30, 2017			As of December 31, 2016
ASSETS
INVESTMENTS
Fixed maturity investments, available for sale, at fair value (amortized cost $11,595,832 and $11,406,979)	$	11,622,667		$	11,362,421
Equity securities, available for sale, at fair value (cost $12,297,132 and $11,321,578)		16,957,010			15,165,544

TOTAL INVESTMENTS		28,579,677			26,527,965
Cash and cash equivalents		5,249,801			4,631,709
Restricted cash and cash equivalents		120,414			23,392
Other invested assets		490,000			490,000
Assumed reinsurance balances receivable		1,471,134			1,285,126
Accrued investment income		93,777			76,975
Property and equipment		269,789			226,988
Deferred policy acquisition costs		1,730,956			1,384,915
Prepaid expenses and other assets		1,539,444			1,398,739

TOTAL ASSETS	$	39,544,992		$	36,045,809

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses	$	10,578,434		$	8,941,991
Unearned premium		4,677,763			3,743,006
Assumed reinsurance balances payable		1,049,665			1,254,687
Accrued expenses and other liabilities		3,762,664			4,035,617

TOTAL LIABILITIES	$	20,068,526		$	17,975,301

SHAREHOLDERS’ EQUITY
Common shares, $1 par value, 2017 and 2016: 2,000,000 shares authorized, 995,253 issued and outstanding	$	995,253		$	995,253
Additionalpaid-in capital		6,287,293			6,287,293
Retained earnings		15,827,998			15,379,345
Accumulated other comprehensive income		4,686,713			3,799,408
Shares held by Subsidiary (346,057 and 348,605 shares) at cost		(8,320,791	)		(8,390,791	)

TOTAL SHAREHOLDERS’ EQUITY		19,476,466			18,070,508

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	39,544,992		$	36,045,809

	As of September 30, 2022			As of December 31, 2021
ASSETS
Cash and cash equivalents	$	2,037,046		$	3,477,714
Property and equipment (Note 2)		700,980			898,560
Deferred income taxes		653,000			1,059,000
Prepaid expenses and other assets (Note 3)		1,404,978			1,091,815
TOTAL ASSETS	$	4,796,004		$	6,527,089

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Accrued expenses and other liabilities (Note 4)	$	2,182,415		$	2,860,876
TOTAL LIABILITIES	$	2,182,415		$	2,860,876

COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common shares, $1 par value, 2022 and 2021: 2,000,000 shares authorized, 995,253 issued and outstanding	$	995,253		$	995,253
Additional paid-in-capital		6,287,293			6,287,293
Retained earnings		4,603,539			5,656,163
Shares held by Subsidiary (375,861 shares) at cost		(9,272,496	)		(9,272,496	)
TOTAL SHAREHOLDERS’ EQUITY		2,613,589			3,666,213
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,796,004		$	6,527,089


	Nine Months Ended September 30, 2017			Nine Months Ended September 30, 2016			Three Months Ended September 30, 2017			Three Months Ended September 30, 2016
REVENUE
Net premiums earned	$	6,235,045		$	4,960,678		$	2,233,906		$	1,844,243
Commission income		3,551,532			2,957,272			1,163,669			976,514
Net investment income		306,002			209,938			69,842			63,821
Net realized gain on investments		1,128,344			1,720,881			276,772			960,767

TOTAL REVENUE		11,220,923			9,848,769			3,744,189			3,845,345

LOSSES AND EXPENSES
Losses and loss adjustment expenses		4,022,703			3,249,245			1,441,968			1,207,979
Policy acquisition costs		2,306,793			1,835,457			826,778			682,372
Operating and management expenses		4,138,855			3,720,350			1,370,383			1,192,097

TOTAL LOSSES AND EXPENSES		10,468,351			8,805,052			3,639,129			3,082,448

NET INCOME BEFORE TAX		752,572			1,043,717			105,060			762,897
Income tax expense		—			—			—			—
NET INCOME AFTER TAX	$	752,572		$	1,043,717		$	105,060		$	762,897

OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized holding gains arising during the period		2,015,649			889,567			720,612			713,847
Reclassification adjustment for gains included in net income		(1,128,344	)		(1,720,881	)		(276,772	)		(960,767	)

OTHER COMPREHENSIVE INCOME (LOSS)		887,305			(831,314	)		443,840			(246,920	)

COMPREHENSIVE INCOME	$	1,639,877		$	212,403		$	548,900		$	515,977

RETAINED EARNINGS, BEGINNING OF PERIOD	$	15,379,345		$	14,213,781		$	15,722,938		$	14,351,907
Net income		752,572			1,043,717			105,060			762,897
Dividends		(303,919	)		(305,759	)		—			(163,065	)

RETAINED EARNINGS, END OF PERIOD	$	15,827,998		$	14,951,739		$	15,827,998		$	14,951,739

Per share amounts
Net Income per share
Basic	$	1.16		$	1.60		$	0.16		$	1.17
Diluted	$	1.16		$	1.60		$	0.16		$	1.17

Dividends	$	0.50		$	0.50		$	0.00		$	0.25

Weighted average number of shares outstanding for the entire period
Basic		647,922			650,952			649,196			652,261
Diluted		651,541			650,952			651,071			652,261

	Common Shares		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Losses)		Shares Held by Subsidiary			Total Shareholders’ Equity
BALANCE AT JANUARY 1, 2022	$	995,253	$	6,287,293	$	5,656,163		$	—	$	(9,272,496	)	$	3,666,213
Net loss		—		—		(210,261	)		—		—			(210,261	)
Other comprehensive loss
Unrealized gain on securities, net of reclassification adjustment		—		—		—			—		—			—
BALANCE AT MARCH 31, 2022	$	995,253	$	6,287,293	$	5,445,902		$	—	$	(9,272,496	)	$	3,455,952
Net loss		—		—		(400,654	)		—		—			(400,654	)
Other comprehensive loss
Unrealized gain on securities, net of reclassification adjustment		—		—		—			—		—			—
Purchase of shares by subsidiary, net		—		—		—			—		—			—
BALANCE AT JUNE 30, 2022	$	995,253	$	6,287,293	$	5,045,248		$	—	$	(9,272,496	)	$	3,055,298
Net loss		—		—		(441,709	)		—		—			(441,709	)
Other comprehensive loss
Unrealized gain on securities, net of reclassification adjustment		—		—		—			—		—			—
BALANCE AT SEPTEMBER 30, 2022	$	995,253	$	6,287,293	$	4,603,539		$	—	$	(9,272,496	)	$	2,613,589


	Nine Months Ended September 30, 2017			Nine Months Ended September 30, 2016
OPERATING ACTIVITIES
Net Cash provided by Operating Activities	$	1,197,664		$	1,017,200

INVESTING ACTIVITIES
Movement in restricted cash and cash equivalents		(97,022	)		598,582
Purchases of property and equipment		(91,544	)		(150,587	)
Purchases ofavailable-for-sale securities		(6,448,153	)		(7,048,154	)
Proceeds from sales ofavailable-for-sale securities		4,144,366			4,776,870
Proceeds from redemptions of hedge fund investments		75,160			—
Proceeds from redemptions of fixed maturity investments		691,540			1,114,403
Proceeds from maturities of fixed maturity investments		1,450,000			1,035,000

Net Cash (used in) provided by Investing Activities		(275,653	)		326,114

FINANCING ACTIVITIES
Dividends paid		(303,919	)		(305,759	)

Net Cash used in Financing Activities		(303,919	)		(305,759	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		618,092			1,037,555
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	4,631,709		$	3,073,747

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	5,249,801		$	4,111,302

	Cost		Accumulated Depreciation and Amortization		Total
September 30, 2022
Furniture and fixtures	$	36,705	$	35,048	$	1,657
Office equipment		107,392		96,270		11,122
Computer equipment		24,129		22,031		2,098
Internal use software		1,833,569		1,147,466		686,103
Total	$	2,001,795	$	1,300,815	$	700,980

	2022		2021
Prepaid expenses and other assets		109,169		171,342
Accounts receivable		582,522		520,117
Employee retention credit receivable		417,559		—
Policy acquisition costs		225,048		258,996
Building right of use asset		70,680		141,360
	$	1,404,978	$	1,091,815

	2022		2021
Premiums payable		1,608,094		2,143,468
Accounts payable and accrued liabilities		278,689		293,169
Unearned commission income		110,943		176,693
Building lease liability		75,170		136,816
Other liabilities		109,519		110,730
	$	2,182,415	$	2,860,876


	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of September 30, 2017
Fixed maturity investments:
U.S. government agency securities	$	1,400,406	$	3,079	$	(609	)	$	1,402,876
Obligations of states and political subdivisions		3,991,360		31,629		(5,080	)		4,017,909
Corporate debt securities		6,204,066		22,461		(24,645	)		6,201,882

Total fixed maturity investments		11,595,832		57,169		(30,334	)		11,622,667

Equity securities		12,286,516		4,727,950		(71,603	)		16,942,863
Hedge fund		10,616		3,531		—			14,147

Total equity securities		12,297,132		4,731,481		(71,603	)		16,957,010

Total investments	$	23,892,964	$	4,788,650	$	(101,937	)	$	28,579,677


	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2016
Fixed maturity investments:
U.S. government agency securities	$	1,462,040	$	6,408	$	(1,642	)	$	1,466,806
Obligations of states and political subdivisions		4,098,069		37,309		(634	)		4,134,744
Corporate debt securities		5,846,870		1,662		(87,661	)		5,760,871

Total fixed maturity investments		11,406,979		45,379		(89,937	)		11,362,421

Equity securities		11,235,802		3,917,670		(128,395	)		15,025,077
Hedge fund		85,776		54,691		—			140,467

Total equity securities		11,321,578		3,972,361		(128,395	)		15,165,544

Total investments	$	22,728,557	$	4,017,740	$	(218,332	)	$	26,527,965


	12 months or greater					Less than 12 months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
As of September 30, 2017
Fixed maturity investments:
U.S. government agency securities	$	—	$	—		$	950,621	$	(609	)	$	950,621	$	(609	)
Obligations of states and political subdivisions		—		—			1,294,633		(5,080	)		1,294,633		(5,080	)
Corporate debt securities		465,961		(9,543	)		2,360,057		(15,102	)		2,826,018		(24,645	)

Total fixed maturity investments		465,961		(9,543	)		4,605,311		(20,791	)		5,071,272		(30,334	)

Equity securities		79,896		(2,913	)		1,041,790		(68,690	)		1,121,686		(71,603	)
Hedge fund		—		—			—		—			—		—

Total equity securities		79,896		(2,913	)		1,041,790		(68,690	)		1,121,686		(71,603	)

Total investments	$	545,857	$	(12,456	)	$	5,647,101	$	(89,481	)	$	6,192,958	$	(101,937	)


	12 months or greater					Less than 12 months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
As of December 31, 2016
Fixed maturity investments:
U.S. government agency securities	$	—	$	—		$	507,735	$	(1,642	)	$	507,735	$	(1,642	)
Obligations of states and political subdivisions		542,968		(402	)		420,050		(232	)		963,018		(634	)
Corporate debt securities		—		—			4,549,756		(87,661	)		4,549,756		(87,661	)

Total fixed maturity investments		542,968		(402	)		5,477,541		(89,535	)		6,020,509		(89,937	)

Equity securities		119,411		(6,743	)		1,671,859		(121,652	)		1,791,270		(128,395	)
Hedge fund		—		—			—		—			—		—

Total equity securities		119,411		(6,743	)		1,671,859		(121,652	)		1,791,270		(128,395	)

Total investments	$	662,379	$	(7,145	)	$	7,149,400	$	(211,187	)	$	7,811,779	$	(218,332	)


	Carrying amount		Total fair value		Fair value measurement using:
	Carrying amount		Total fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
As of September 30, 2017
U.S. government agency securities	$	1,402,876	$	1,402,876	$	—	$	1,402,876	$	—
Obligations of U.S. state and political subdivisions		4,017,909		4,017,909				4,017,909
Corporate debt securities		6,201,882		6,201,882				6,201,882

Total fixed maturity investments		11,622,667		11,622,667

Equity securities (excluding the hedge fund)		16,942,863		16,942,863		16,942,863

Total equity securities (excluding the hedge fund)		16,942,863		16,942,863

Hedge fund measured at net asset value (a)		14,147		14,147

Total investments	$	28,579,677	$	28,579,677	$	16,942,863	$	11,622,667	$	—


	Carrying amount		Total fair value		Fair value measurement using:
	Carrying amount		Total fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
As of December 31, 2016
U.S. government agency securities	$	1,466,806	$	1,466,806	$	—	$	1,466,806	$	—
Obligations of U.S. state and political subdivisions		4,134,744		4,134,744				4,134,744
Corporate debt securities		5,760,871		5,760,871				5,760,871

Total fixed maturity investments		11,362,421		11,362,421

Equity securities (excluding the hedge fund)		15,025,077		15,025,077		15,025,077

Total equity securities (excluding the hedge fund)		15,025,077		15,025,077

Hedge fund measured at net asset value (a)		140,467		140,467

Total investments	$	26,527,965	$	26,527,965	$	15,025,077	$	11,362,421	$	—


	Amortized Cost		Estimated Fair Value
As of September 30, 2017
Due in one year or less	$	1,971,330	$	1,974,410
Due after one year through five years		8,636,153		8,661,201
Due after five years through ten years		449,292		448,686
Due after ten years		539,057		538,370

Total	$	11,595,832	$	11,622,667


	Amortized Cost		Estimated Fair Value
As of December 31, 2016
Due in one year or less	$	1,455,729	$	1,457,201
Due after one year through five years		8,081,777		8,089,289	��
Due after five years through ten years		1,701,987		1,648,731
Due after ten years		167,486		167,200

Total	$	11,406,979	$	11,362,421


	September 30, 2017			September 30, 2016
Total proceeds on sales ofavailable-for-sale securities	$	4,144,366		$	4,776,870
Proceeds from redemptions of hedge fund investments		75,160			—
Proceeds from redemptions of fixed maturity investments		691,540			1,114,403
Total proceeds from maturities of fixed maturity investments		1,450,000			1,035,000
Gross gains on sales		1,245,755			1,956,107
Gross losses on sales		(18,493	)		(15,809	)
Impairment losses		(98,918	)		(219,417	)