Shares dropped 4.6% after earnings as investors reacted negatively to margin compression and a cautious outlook evidenced by an increased combined ratio and declining premiums, signaling operational pressure despite modest net income improvement.

• Net premiums written declined to $555,000 from $595,000 year-over-year due to lower reinsurance contract rates.
• Total revenue slid to $623,000 from $692,000 in the prior year period.
• Combined ratio worsened to 105% from 95.8%, driven by higher policy acquisition costs and general administrative expenses.
• Net income improved to $22,000 from a net loss of $139,000 a year ago, aided by lower unrealized investment losses and reduced underwriting income allocated to token holders.
• Cash position strengthened by $1.21 million to $8.19 million, supported in part by a $1 million short-term loan.