AIC 2019 YTD Financial Results (6/30/19)
Underwriting Loss was $1,935,072.
Investment Income was $198,117.
Net Loss was $1,758,334.
AIC had $16.3 million in assets at 6/30/19. Non-Admitted assets totaled $5.9 million, making Net Admitted Assets $10.5 million.
Surplus was $6.0 million, up from $3.3 million at 12/31/18.
AIC also had $107,613,690 of unused operating loss carryforwards at 6/30/19.
Subsequent Event
On 7/09/19, AIC made a $2 million principal payment on the Surplus Note to AICI. As a result, surplus will decrease by $2 million in Q3 2019. The company was able to make the payment as surplus increased by $2.9 million as a result of a commutation agreement.
Reinsurance
At 3/31/19, AIC had $4.3 million of investments in trust and pledged to McM under reinsurance agreements. Effective 4/30/19, AIC completed a commutation agreement whereby all of AIC's reinsurance obligations and related indemnities were released. AIC released $4.1 million in trust assets to fund the transaction, reduced assumed reinsurance obligations of $2.7 million and recorded Loss and LAE incurred of $1.4 million. As a result, AIC incurred a net loss of $1.4 million but surplus increased by $2.9 million.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
