As in much of the industry, AAIC financial results for the fourth quarter and 2018 as a whole were impacted by two factors – heightened catastrophe activity and stock market volatility.

2018 currently stands as the fourth-costliest year on record for the industry in terms of insured losses, and it was the second year in a row with increased catastrophe activity.

In the fourth quarter, we saw Hurricane Michael and the California wildfires, as well as significant stock market losses, all of which contributed to a fourth quarter loss ratio of 94.6% and surplus loss of $26,608,474.

Despite the challenges, our overall underwriting results for 2018 showed improvement over 2017.

Results for the year ending December 31, 2018, were as follows:

• Surplus: $580,252,585 (a loss of $4,505,911 for the year)
• Underwriting loss: $9,669,390
• Loss ratio: 82.2%
• Combined ratio: 103.4%