AMERINST INSURANCE GROUP LTD – 10-Q – 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 Form 10-Q.



Certain statements contained in this Form 10-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.



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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 2020 Annual Report on Form 10-K, as updated in our
subsequent quarterly reports filed on Form 10-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 2020 Annual Report on Form 10-K or discussed in
this Quarterly Report on Form 10-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. "Protexure" means Protexure Insurance Agency,
Inc., a Delaware corporation and wholly owned subsidiary of AmerInst Mezco, Ltd.
which is a wholly owned subsidiary of AmerInst. Our principal offices are c/o
Davies Captive Management 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. AmerInst has two reportable segments: (1) reinsurance
activity, which includes investments and other activities, and (2) insurance
activity, which offers professional liability solutions to professional service
firms. The revenues of the reinsurance activity reportable segment and the
insurance activity reportable segment were $3,212,581 and $2,656,916,
respectively, for the nine months ended September 30, 2021 compared to
$7,487,683 and $4,546,484, respectively, for the nine months ended September 30,
2020. 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.



Agency Agreement



On September 25, 2009, Protexure entered into an agency agreement (the "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 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 Agency Agreement was for four
years with automatic one-year renewals thereafter. The Agency Agreement
automatically renewed on September 25, 2021.

In October 2020, C&F advised us to cease writing business in eight states under
the Agency Agreement. We are currently brokering business with alternative
carriers to write policies impacted by this directive.

In October 2021, C&F and Protexure signed an addendum to the Agency Agreement
which terminates the Agency Agreement effective March 31, 2022.  Under the terms
of the signed addendum, Protexure will be permitted to issue new and renewal
professional liability policies on C&F paper with effective dates no later than
March 31, 2022.  We are currently in discussions with other carriers with a view
to entering into other agency arrangements.



Reinsurance Agreement



We conduct our reinsurance business through AMIC Ltd., our subsidiary, which is
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
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 are not subject to the
50% quota share reinsurance to AMIC Ltd. The term of the Reinsurance Agreement
is continuous and may be terminated by either party upon at least 120 days'
prior written notice to the other party.



During the third quarter of 2021, the Commutation Agreement, effective as of
March 31, 2021, was entered into by and between C&F and AMIC, Ltd., 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 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.



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The entry into the Commutation Agreement resulted in a net gain of $147,333.
This amount is included in losses and loss adjustment expenses in the Condensed
Consolidated Statement of Operations.

Third-party Managers and Service Providers

Davies Captive Management Limited provides the day-to-day services necessary for
the administration of our business. Our agreement with Davies Captive Management
Limited renewed for one year beginning January 1, 2021 and ending December 31,
2021. Mr. Thomas R. McMahon, our Treasurer and Chief Financial Officer, is an
officer, director and employee of Davies Captive Management Limited.

Tower Wealth Managers, Inc. of Kansas City, Missouri, provided portfolio
management of fixed income and equity securities and directs our investments
pursuant to guidelines approved by us. 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, 2021 compared to nine months ended September 30,
2020

We recorded a net loss of $704,043 for the nine months ended September 30, 2021
compared to a net loss of $11,290,334 for the same period in 2020. The decrease
in net loss was mainly attributable to (i) the decrease in loss and loss
adjustment expenses of $12,573,641 - from $14,078,405 for the nine months ended
September 30, 2020 to $1,504,764 for the nine months ended September 30, 2021.
(ii) the increase in net realized and unrealized gains on investments of
$2,191,233 - from a $1,764,300 loss for the nine months ended September 30, 2020
to a $426,933 gain for the nine months ended September 30, 2021 and (iii) the
decrease in operating and management expenses of $1,319,978 - from $5,019,124
for the nine months ended September 30, 2020 to $3,699,146 for the nine months
ended September 30, 2021, as discussed below. The increase in net income was
partially offset by a decrease in commission income of $1,885,946 - from
$4,542,478 for the nine months ended September 30, 2020 to $2,656.532 for the
nine months ended September 30, 2021, as also discussed below.



Our net premiums earned for the nine months ended September 30, 2021 were
$2,581,408 compared to $8,947,710 for the nine months ended September 30, 2020,
a decrease of $6,366,302 or 71.2%. Our net premiums earned were attributable to
cessions from C&F under the Reinsurance Agreement. As noted above, the Company
entered into the Commutation Agreement with C&F effective March 31, 2021. No
premiums subsequent to that date were ceded pursuant to the Reinsurance
Agreement. Our net premium earned for the nine months ended September 30, 2021
represents our net premiums earned during the three months ended March 31, 2021.
Our net premium earned for the nine months ended September 30, 2020 represents
our net premiums earned during that nine month period.



During the nine months ended September 30, 2021 and 2020, we recorded commission
income under the Agency Agreement of $2,656,532 and $4,542,478, respectively, a
decrease of $1,885,946 or 41.5%. This decrease resulted from the lower volume of
premiums written under the Agency Agreement during the nine months ended
September 30, 2021 compared to the nine months ended September 30, 2020, which
is primarily attributable to the October 2020 notice from C&F to cease writing
business in eight states under the Agency Agreement. We are currently brokering
business with alternative carriers to write policies impacted by this directive.



We recorded net investment income of $204,624 during the nine months ended
September 30, 2021 compared to $308,279 for the nine months ended September 30,
2020. The decrease in net investment income was mainly attributable to a
decrease in dividend income attributable to the decrease in equity investments
held in our investment portfolio during the nine months ended September 30, 2021
compared to the same period in 2020. The decrease in net investment income was
partially offset by a decrease in investment expenses during the nine months
ended September 30, 2021 compared to the same period in 2020 as a result of a
decrease in investment management fees, which is attributable to the
aforementioned decrease in equity investments held in our investment portfolio.
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 .9% for the nine months ended September 30, 2021, compared to
the 1.2% yield earned for the nine months ended September 30, 2020.



We recorded net realized and unrealized gains on investments of $426,933 during
the nine months ended September 30, 2021 compared to net realized and unrealized
losses on investments of $1,764,300 during the nine months ended September 30,
2020, an increase of $2,191,233 or 124.2%. In September 2021, the Company
liquidated its entire investment in fixed income securities to fund the
commitment to C&F under the Commutation Agreement. A $343,350 net gain was
realized on the sale of these investments. The nine months ended September 30,
2020 was significantly impacted by the unfavorable market conditions experienced
during the period, which was attributable to the impact of the COVID-19
coronavirus pandemic on the worldwide economy.



Our losses and loss adjustment expenses for the nine months ended September 30,
2021 were $1,504,764 compared to $14,078,405 for the nine months ended September
30, 2020, a decrease of $12,573,641 or 89.3%. For the nine months ended
September 30, 2021, we derived our loss and loss adjustment expenses (i) by
multiplying our estimated loss ratio of 64.0% and the net premiums earned under
the Reinsurance Agreement through March 31, 2021 of $2,581,408, which is the
effective date of the Commutation Agreement and (ii) the recording of a $147,377
gain under the Commutation Agreement. The significant amount of loss and loss
adjustment expenses recorded for the nine months ended September 30, 2020 was
attributable to higher than expected loss emergence on the Company's lawyers'
book of business in accident years 2017, 2018 and 2019.



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We recorded policy acquisition costs of $1,405,774 during the nine months ended
September 30, 2021 compared to $4,097,754 for the same period in 2020. 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 premiums earned will result in a similar increase or
decrease in policy acquisition costs, subject to any premium deficiency. The
policy acquisition costs recorded during the nine months ended September 30,
2021 represents the net of (i) $955,122, being 37% of the
net premiums earned under the Reinsurance Agreement as at March 31, 2021 of
$2,581,408, which is the effective date of the Commutation Agreement and (ii)
the reversal of the established premium deficiency reserve as 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 policy acquisition costs recorded during the nine
months ended September 30, 2020 represented of (i) $3,310,595, being 37% of the
net premiums earned under the Reinsurance Agreement as at September 30, 2021 of
$8,947,710 and (ii) a premium deficiency reserve established at September 30,
2020 in the amount of $787,159.



We incurred operating and management expenses of $3,699,146 during the nine
months ended September 30, 2021 compared to $5,019,124 for the same period in
2020, a decrease of $1,319,978 or 26.3%. The decrease was primarily attributable
to (i) decreased board and committee meetings related expenses due to the
reduction in physical meetings held during the nine months ended September 30,
2021 as the result of travel restrictions imposed in relation to COVID-19, (ii)
decreased salaries and related costs associated with Protexure's reduction in
personnel during 2021 and 2020 in its effort to reduce overall costs and
(iii) decreased net commissions paid to outside brokers in association with the
Agency Agreement as a result lower volume of premiums obtained from outside
brokers during the nine months ended September 30, 2021 compared to the same
period in 2020.



The tables below summarize the results of the following AmerInst reportable
segments: (1) reinsurance activity, which also includes investments and other
activities, and (2) insurance activity, which 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,
                                                                      2021
                                               Reinsurance         Insurance
                                                 Segment            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




                                                   As of and for the Nine

Months Ended September 30, 2020

                                                   Reinsurance              Insurance
                                                     Segment                 Segment                Total
Revenues                                       $         7,487,683       $      4,546,484       $   12,034,167
Total losses and expenses                               19,062,602              4,261,899           23,324,501
Segment (loss) income                                  (11,574,919 )              284,585          (11,290,334 )
Identifiable assets                                              -              1,107,040            1,107,040

Three months ended September 30, 2021 compared to three months ended
September 30, 2020

We recorded a net loss of $955,112 for the three months ended September30, 2021
compared to a net loss of $8,277,992 for the same period in 2020. The decrease
in the net loss was mainly attributable to (i) the decrease in loss and loss
adjustment expenses of $11,811,206 - from $10,551,676 for the three months ended
September 30, 2020 to $(1,259,530) for the three months ended September 30,
2021, (ii) the decrease in operating and management expenses of $457,287 - from
$1,592,813 for the three months ended September 30, 2020 to $1,135,526 for the
three months ended September 30, 2021, as discussed below. The decrease in net
loss was partially offset by a decrease in commission income of $628,285 - from
$1,437,181 for the three months ended September 30, 2020 to $808,896 for the
three months ended September 30, 2021, as also discussed below.



Our net premiums earned for the third quarter of 2021 were $(1,737,803) compared
to $3,437,196 for the third quarter of 2020, a decrease of $5,174,999 or 150.6%.
The net premiums earned during the quarters ended September 30, 2021 and 2020
were attributable to cessions from C&F under the Reinsurance Agreement. Our
premiums earned for the third quarter of 2021 represents the reversal of the
second quarter cession as the result of the Commutation Agreement, which has an
effective date of March 31, 2021. Our net premium earned for the third quarter
of 2020 represents our net premiums earned during that three month period.



For the quarters ended September 30, 2021 and 2020, we recorded commission
income under the Agency Agreement of $808,896 and $1,437,181 respectively, a
decrease of $628,285 or 43.7%. This decrease resulted from the lower volume of
premiums written under the Agency Agreement during the quarter ended September
30, 2021 compared to the quarter ended September 30, 2020, which is primarily
attributable to the October 2020 notice from C&F to cease writing business in
eight states under the Agency Agreement. We are currently brokering business
with alternative carriers to write policies impacted by this directive.



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We recorded net investment income of $57,893 for the quarter ended September 30,
2021 compared to $99,444 for the quarter ended September 30, 2020. The decrease
in net investment income was attributable to a decrease in dividend income
attributable to the decrease in equity investments held in our investment
portfolio during the quarter ending September 30, 2021 compared to the same
period in 2020. The decrease in net investment income was partially offset by a
decrease in investment expenses during the quarter ended September 30, 2021
compared to the same period in 2020 as a result of a decrease in investment
management fees, which is attributable to the aforementioned decrease in equity
investments held in our investment portfolio. 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% for the quarter ended
September 30, 2021, compared to the 1.2% yield earned for the quarter ended
September 30, 2020.



We recorded net realized and unrealized gains on investments of $344,852 during
the quarter ended September 30, 2021 compared to net realized and unrealized
gains of $988,562 during the quarter ended September 30, 2020, a decrease of
$643,710 or 65.1%. The net realized and unrealized gains on investments during
the three months ended September 30, 2021 was primarily attributable to the
liquidation of the Company's entire investment in fixed income securities to
fund the commitment to C&F under the Commutation Agreement. A $343,768 gain was
realized on the sale of these investments. The net realized and unrealized gains
on investments during the three months ended September 30, 2020 was primarily
related to the increase in the fair value of our equity investments due to
favorable market conditions attributable to the unprecedented monetary and
fiscal stimulus in the U.S. and around the world to counter the negative impact
of the COVID-19 coronavirus pandemic on the worldwide economy.



Our losses and loss adjustment expenses for the quarter ended September 30, 2021
were $(1,259,530) compared to $10,551,676 for the quarter ended September 30,
2020, a decrease of $11,811,206 or 111.9%. Our losses and loss adjustment
expenses for the third quarter of 2021 represents (i) the reversal of the second
quarter cession under the Reinsurance Agreement as the result of the Commutation
Agreement, which has an effective date of March 31, 2021 and (ii) the recording
of a $147,377 gain under the Commutation Agreement.  The significant amount of
losses and loss adjustment expenses recorded during the quarter ended September
2020 was attributable to higher than expected loss emergence on the Company's
lawyers' book of business in accident years 2017, 2018 and 2019.



We recorded policy acquisition costs of $579,317 in the third quarter of 2021
compared to $2,058,923 for the same period in 2020. 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 premiums earned will result in a similar increase or decrease in
policy acquisition costs, subject to any premium deficiency. The policy
acquisition costs recorded during the third quarter of 2021 represents the
reversals of (i) $642,987, being 37% of the
net premiums earned under the Reinsurance Agreement during the second quarter of
2021 of $1,737,802 (ii) the reversal of the established premium deficiency
reserve as at June 30, 2021 of $214,224 and (iii) the reversal of the remaining
deferred policy acquisition balance of $1,436,528. The aforementioned reversals
are attributable to the Commutation Agreement. The policy acquisition costs
recorded during the quarter ended September 30, 2020 represented of (i)
$1,271,764, being 37% of the net premiums earned under the Reinsurance Agreement
as at September 30, 2020 of $3,437,196 and (ii) a premium deficiency reserve
established during the third quarter of 2020 in the amount of $787,159.



We incurred operating and management expenses of $1,135,526 in the third quarter
of 2021 compared to $1,592,813 for the same period in 2020, a decrease of
$457,287 or 28.7%. The decrease was primarily attributable to (i) decreased
salaries and related costs associated with Protexure's reduction in personnel
during 2021 and 2020 in its effort to reduce overall costs and (ii) decreased
net commissions paid to outside brokers in association with the Agency Agreement
as a result lower volume of premiums obtained from outside brokers during the
third quarter of 2021 compared to the same period in 2020.

The tables below summarize the results of the following AmerInst reportable
segments: (1) reinsurance activity, which also includes investments and other
activities, and (2) insurance activity, which offers professional liability
solutions to professional service firms under the Agency Agreement with C&F.

                                                 As of and for the Three 

Months Ended September 30, 2021

                                                Reinsurance           Insurance
                                                  Segment              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




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                                                As of and for the Three 

Months Ended September 30, 2020

                                                Reinsurance            Insurance
                                                  Segment               Segment                Total
Revenues                                       $   4,524,821       $       1,437,562       $   5,962,383
Total losses and expenses                         12,872,084               1,368,291          14,240,375
Segment income                                    (8,347,263 )                69,271          (8,277,992 )
Identifiable assets                                        -               1,107,040           1,107,040






FINANCIAL CONDITION



As of September 30, 2021, our total investments were $0 compared to $20,344,127
at December 31, 2020.   During September 2021, the Company liquidated its entire
investment in fixed income securities and equity securities as a measure to fund
its commitment under the Commutation. The cash and cash equivalents balance
decreased from $5,732,110 at December 31, 2020 to $3,982,010 at September 30,
2021, a decrease of $1,750,100 or 30.5%. This decrease resulted primarily from
cash outflows associated with the funding of our day-to-day operations. The
restricted cash and cash equivalents balance increased from $4,964,126 at
December 31, 2020 to $25,552,236 at September 30, 2021, an increase of
$20,588,110 or 414.7%. The increase was primarily due to the aforementioned
liquidation of the Company's entire investment in fixed income securities and
equity securities.



The assumed reinsurance balances receivable represents the current assumed
premiums receivable from the fronting carriers. As of September 30, 2021, the
balance was $0 compared to $2,221,664 as of December 31, 2020. As at September
30, 2021, there is no premium is due to AMIC Ltd. under the Reinsurance
Agreement as the result of the Commutation Agreement.



The assumed reinsurance payable represents current reinsurance losses payable
and commissions payable to the fronting carriers. As of September 30, 2021, the
balance was $26,076,114 compared to $3,175,098 as of December 31, 2020. The
increase to this balance is the result of the Commutation Agreement, under which
$26,076,000 is payable from AMIC Ltd. to C&F.



Deferred policy acquisition costs, which represent the deferral of ceding
commission expense related to premiums not yet earned, increased from $724,509
at December 31, 2020 to $0 at September 30, 2021. As at September 30, 2021, this
balance is $0 as of the result of the Commutation Agreement.



Prepaid expenses and other assets were $1,078,604 at September 30, 2021 compared
to $1,476,187 as of December 31, 2020. The balance primarily relates to
(1) prepaid directors' and officers' liability insurance costs, (2) the
directors' prepaid annual retainer, (3) prepaid professional fees and
(4) premiums due to Protexure under the Agency Agreement. This balance
fluctuates due to the timing of the prepayments and to the timing of the premium
receipts by Protexure.



Accrued expenses and other liabilities primarily represent premiums payable by
Protexure to C&F under the Agency Agreement and expenses accrued relating
largely to professional fees. The balance decreased from $3,689,620 at
December 31, 2020 to $2,543,502 at September 30, 2021, a decrease of $1,146,118
or 31.1%. 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 (i) funding of our commitment to C&F under the
Commutation Agreement and (ii) funding day-to-day operations. During the
continued implementation of our business plan, our management expects that our
unrestricted cash balance will be sufficient to meet our cash needs to fund our
day-to-day operations over the next twelve-month time period.



Total cash, investments and other invested assets decreased from $31,040,363 at
December 31, 2020 to $29,534,246 at September 30, 2021, a decrease of $1,506,117
or 4.9%. The net decrease resulted primarily from cash outflows associated with
the funding of our day-to-day operations and to the decrease in the fair value
of our fixed income security portfolio prior to the aforementioned liquidation
of this portfolio, due to the widening of credit spreads, partially offset by
cash inflows derived from net investment activities.



The Bermuda Monetary Authority has authorized 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 September 30,
2021, AMIC Ltd. purchased 1,720 common shares from these shareholders who had
died or retired for a total purchase price of $55,917. From inception through
September 30, 2021, AMIC Ltd. had repurchased 232,979 common shares from
shareholders who had died or retired for a total purchase price of $6,653,703.
From time to time, AMIC Ltd. has also purchased shares in privately negotiated
transactions. From inception through September 30, 2021, AMIC Ltd. had purchased
an additional 75,069 common shares in such privately negotiated transactions for
a total purchase price of $1,109,025. During the nine months ended September 30,
2021, no such transactions occurred.





Cash Dividends



We paid no dividends during the nine months ended September 30, 2021. Since we
began paying dividends in 1995, our original shareholders have received $22.87
in cumulative dividends per share. 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.



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OFF-BALANCE SHEET ARRANGEMENTS

The Company is not a party to any off-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 Form 10-K for the year ended December 31, 2020 and is
incorporated herein by reference.

We have identified accounting for the liability for losses and loss adjustment
expenses as our most 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, 2020.





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 at 1-800-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 is
www.sec.gov.



Our internet site is www.amerinst.bm. We make available free of charge through
our internet site our annual report on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-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 on
www.amerinst.bm our Memorandum of Association, our Bye-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 Davies Captive Management Limited, 25 Church
Street, Continental Building, P.O. Box HM 1601 Hamilton, Bermuda HM GX,
Attention: Investor Relations (441) 295-2185. The information on our internet
site is not incorporated by reference into this report.



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