10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x Quarterly report pursuant to section 13 or 15 (d) of the Securities Exchange Act of 1934

For the Quarterly Period ended June 30, 2013.

¨ Transition report pursuant to section 13 or 15 (d) of the Securities Exchange Act of 1934.

For the transition period from             to             .

Commission file number 000-28249

AMERINST INSURANCE GROUP, LTD.

(Exact Name of Registrant as Specified in its Charter)

BERMUDA	98-0207447
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
c/o Cedar Management Limited 25 Church Street, Continental Building P.O. Box HM 1601, Hamilton, Bermuda	HMGX
(Address of Principal Executive Offices)	(Zip Code)

(441) 295-6015

(Telephone number)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     YES  ¨     NO  x.

As of August 1, 2013, the Registrant had 995,253 common shares, $1.00 par value per share, outstanding.

Introductory Note

Caution Concerning Forward-Looking Statements

Certain statements contained in this Form 10-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 Form 10-Q, as well as:

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

• the occurrence of catastrophic events with a frequency or severity exceeding our expectations;

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

• the continued execution of our business plan without a significant depletion of our cash resources, the maintenance of sufficient capital levels and the retention of our current A.M. Best financial strength rating of “A-” (Excellent);

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

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

• actual losses and loss expenses exceeding our loss reserves, which are necessarily based on the actuarial and statistical projections of ultimate losses;

• increased rate pressure on premiums;

• adequacy of our risk management and loss limitation methods;

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

• acts of terrorism, political unrest, outbreak of war and other hostilities or other non-forecasted and unpredictable events;

• changes in the legal or regulatory environments in which we operate; and

• other risks, including those risks identified in any of our other filings with the Securities and Exchange Commission.

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.

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Part I—FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, expressed in U.S. dollars)

	As of June 30, 2013			As of December  31, 2012
ASSETS
INVESTMENTS
Fixed maturity investments, available for sale, at fair value (amortized cost $8,078,432 and $7,340,536)	$	8,192,166		$	7,665,482
Equity securities, available for sale, at fair value (cost $7,205,853 and $7,119,690)		12,914,081			12,583,820
TOTAL INVESTMENTS		21,106,247			20,249,302
Cash and cash equivalents		1,458,465			1,034,485
Restricted cash and cash equivalents		684,008			1,349,744
Other invested assets		1,470,000			1,470,000
Assumed reinsurance balances receivable		372,241			274,526
Accrued investment income		73,134			77,620
Property and equipment		492,544			589,296
Deferred policy acquisition costs		398,068			268,643
Prepaid expenses and other assets		594,131			412,065
TOTAL ASSETS	$	26,648,838		$	25,725,681
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses	$	1,897,146		$	1,408,190
Unearned premium		1,075,859			726,044
Assumed reinsurance balances payable		171,348			178,880
Accrued expenses and other liabilities		1,362,430			1,490,727
TOTAL LIABILITIES	$	4,506,783		$	3,803,841
SHAREHOLDERS’ EQUITY
Common shares, $1 par value, 2013 and 2012: 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		16,431,777			16,349,448
Accumulated other comprehensive income		5,821,962			5,789,076
Shares held by Subsidiary (316,580 and 319,835 shares) at cost		(7,394,230	)		(7,499,230	)
TOTAL SHAREHOLDERS’ EQUITY		22,142,055			21,921,840
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	26,648,838		$	25,725,681

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

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AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF

OPERATIONS, COMPREHENSIVE INCOME (LOSS)

AND RETAINED EARNINGS

(Unaudited, expressed in U.S. dollars)

	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012			Three Months Ended June 30, 2013			Three Months Ended June 30, 2012
REVENUE
Net premiums earned	$	790,333		$	453,272		$	460,457		$	276,451
Commission income		601,910			405,576			298,348			190,632
Other income		—			98,156			—			—
Net investment income		148,076			207,120			82,784			111,854
Net realized gain on investments		1,827,747			612,028			1,067,045			2,935
TOTAL REVENUE		3,368,066			1,776,152			1,908,634			581,872
LOSSES AND EXPENSES
Losses and loss adjustment expenses		704,725			283,295			498,552			172,781
Policy acquisition costs		292,431			168,667			170,370			103,243
Operating and management expenses		2,119,727			1,943,337			1,109,499			1,007,383
TOTAL LOSSES AND EXPENSES		3,116,883			2,395,299			1,778,421			1,283,407
NET INCOME (LOSS) BEFORE TAX		251,183			(619,147	)		130,213			(701,535	)
Income tax expense		—			—			—			—
NET INCOME (LOSS) AFTER TAX	$	251,183		$	(619,147	)	$	130,213		$	(701,535	)
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized holding gains (losses) arising during the period		1,860,633			982,600			636,002			(338,006	)
Reclassification adjustment for gains included in net income (loss)		(1,827,747	)		(612,028	)		(1,067,045	)		(2,935	)
OTHER COMPREHENSIVE INCOME (LOSS)		32,886			370,572			(431,043	)		(340,941	)
COMPREHENSIVE INCOME (LOSS)	$	284,069		$	(248,575	)	$	(300,830	)	$	(1,042,476	)
RETAINED EARNINGS, BEGINNING OF PERIOD	$	16,349,448		$	17,411,533		$	16,301,564		$	17,337,601
Net income (loss)		251,183			(619,147	)		130,213			(701,535	)
Dividends		(168,854	)		(156,320	)		—			—
RETAINED EARNINGS, END OF PERIOD	$	16,431,777		$	16,636,066		$	16,431,777		$	16,636,066
Per share amounts
Basic and diluted income (loss)	$	0.37		$	(0.90	)	$	0.19		$	(1.02	)
Dividends	$	0.25		$	0.25		$	0.00		$	0.00
Weighted average number of shares outstanding for the entire period (for basic and diluted)		676,503			687,321			677,046			685,157

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

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AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, expressed in U.S. dollars)

	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
OPERATING ACTIVITIES
Net Cash used in Operating Activities	$	(1,053,640	)	$	(950,825	)
INVESTING ACTIVITIES
Movement in restricted cash and cash equivalents		665,736			199,853
Purchases of property and equipment		(5,132	)		—
Purchases of available-for-sale securities		(3,308,013	)		(1,457,483	)
Proceeds from sales of available-for-sale securities		3,463,883			1,513,832
Proceeds from redemptions of fixed maturity investments		—			500,000
Proceeds from maturities of fixed maturity investments		830,000			200,000
Net Cash provided by Investing Activities		1,646,474			956,202
FINANCING ACTIVITIES
Dividends paid		(168,854	)		(156,320	)
Net Cash used in Financing Activities		(168,854	)		(156,320	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		423,980			(150,943	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	1,034,485		$	904,485
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	1,458,465		$	753,542

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

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AMERINST INSURANCE GROUP, LTD.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2013

1. BASIS OF PREPARATION AND CONSOLIDATION

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”), and 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. All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under generally accepted accounting principles 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, 2012 and notes thereto, included in AmerInst’s Annual Report on Form 10-K for the year then ended.

New Accounting Pronouncements

Adoption of New Accounting Standards

Balance Sheet Offsetting

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). The objective of ASU 2011-11 was to enhance disclosures by requiring improved information about financial instruments and derivative instruments in relation to netting arrangements. ASU 2011-11 was effective for interim and annual periods beginning on or after January 1, 2013. As the new guidance affects disclosures only, its adoption did not have a material impact on the Company’s consolidated financial statements.

Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”)

Effective January 1, 2013, we adopted FASB’s guidance requiring additional disclosures about reclassification adjustments from AOCI. As this guidance is disclosure-related only and did not amend existing guidance on the reporting of net income available to common shareholders or other comprehensive income, adoption did not impact our results of operations, financial condition or liquidity.

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2. INVESTMENTS

The cost or amortized cost, gross unrealized holding gains and losses, and estimated fair value of the Company’s fixed maturity investments, by major security type, and equity securities as of June 30, 2013 and December 31, 2012 are as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	446,961	$	2,823	$	—		$	449,784
Obligations of states and political subdivisions		7,307,592		176,998		(76,990	)		7,407,600
Corporate debt securities		323,879		10,903		—			334,782
Total fixed maturity investments		8,078,432		190,724		(76,990	)		8,192,166
Equity securities*		6,205,853		5,146,004		—			11,351,857
Hedge fund		1,000,000		562,224		—			1,562,224
Total equity securities		7,205,853		5,708,228		—			12,914,081
Total investments	$	15,284,285	$	5,898,952	$	(76,990	)	$	21,106,247
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2012
Fixed maturity investments:
U.S. government agency securities	$	446,713	$	19,644	$	—		$	466,357
Obligations of states and political subdivisions		6,566,849		302,324		(14,604	)		6,854,569
Corporate debt securities		326,974		17,582		—			344,556
Total fixed maturity investments		7,340,536		339,550		(14,604	)		7,665,482
Equity securities*		6,119,690		4,981,815		(2,836	)		11,098,669
Hedge fund		1,000,000		485,151		—			1,485,151
Total equity securities		7,119,690		5,466,966		(2,836	)		12,583,820
Total investments	$	14,460,226	$	5,806,516	$	(17,440	)	$	20,249,302

* The Company’s equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.

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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:

	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 June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Equity securities		—		—		—		—			—		—
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		—		—			—		—
Total investments	$	—	$	—	$	2,614,367	$	(76,990	)	$	2,614,367	$	(76,990	)
	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, 2012
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		660,084		(14,604	)		660,084		(14,604	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		660,084		(14,604	)		660,084		(14,604	)
Equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Total investments	$	—	$	—	$	705,610	$	(17,440	)	$	705,610	$	(17,440	)

As of June 30, 2013 and December 31, 2012, there were ten and four securities in an unrealized loss position with an estimated fair value of $2,614,367 and $705,610, respectively. Of these securities, none had been in an unrealized loss position for 12 months or greater. As of June 30, 2013 and December 31, 2012, none of these securities were considered to be other-than-temporarily impaired. The Company has no intent to sell 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 June 30, 2013 and December 31, 2012, the Company had investments in certificates of deposit (“CD”) in the amount of $1,470,000 comprising 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 have maturities ranging from two to five years and are classified as other invested assets on the Company’s consolidated balance sheet.

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Other-Than-Temporary Impairment Process

The Company assesses whether declines in the fair value of its fixed maturity investments classified as available-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 as available-for-sale that were in an unrealized loss position at June 30, 2013. 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 six months ended June 30, 2013, the Company did not recognize any other-than-temporary impairments due to required 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.

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 June 30, 2013 and December 31, 2012, relating to ten and three fixed maturity securities and none and one equity security, amounted to $76,990 and $17,440, respectively. The reduction in the fair values of our fixed maturity securities was attributable to higher interest rates combined with the widening of credit spreads on our fixed income portfolio during the three months ended June 30, 2013 compared to the same period in 2012. The unrealized losses on these available for sale fixed maturity securities were not as a result of credit, collateral or structural issues. During the six months ended June 30, 2013, the Company recorded a total other-than-temporary impairment charge of $81,154 on one equity security, as a result of the decline in fair value below cost. No other-than-temporary impairment charges were recorded during the three months ended June 30, 2013. During the six months ended and three months ended June 30, 2012, the Company recorded a total other-than-temporary impairment charge of $165,611 and $101,422, respectively, on two equity securities, as a result of the decline in fair value below cost.

Fair Value of Investments

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 FASB’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 input that is significant to determining such measurement. The three levels are defined as follows:

• Level 1: Observable inputs to the valuation methodology that are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• 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 June 30, 2013 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

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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 included in the Level 2 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 included in the Level 2 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 included in the Level 2 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 included in the Level 1 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 is to seek attractive long-term returns with lower volatility by investing in a range of diversified investment strategies. The fund invests in a diversified pool of hedge fund managers, generally across six different strategies: long/short equities, long/short credit, macro, multi-strategy opportunistic, event-driven, and portfolio hedge. The fair value of the hedge fund is based on the net asset value of the fund as reported by the external fund manager. The use of net asset value as an estimate of the fair value for investments in certain entities that calculate net asset value is a permitted practical expedient. The fair value of our hedge fund is included in the Level 3 fair value hierarchy.

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 challenge any 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, 2012. Since the fair value of a security is an estimate of what a willing buyer would pay for our asset if we sold it, we will not 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 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 June 30, 2013 and December 31, 2012:

					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 June 30, 2013
U.S. government agency securities	$	449,784	$	449,784	$	—	$	449,784	$	—
Obligations of state and political subdivisions		7,407,600		7,407,600				7,407,600
Corporate debt securities		334,782		334,782				334,782
Total fixed maturity investments		8,192,166		8,192,166
Equity securities (excluding the hedge fund)		11,351,857		11,351,857		11,351,857
Hedge fund		1,562,224		1,562,224						1,562,224
Total equity securities		12,914,081		12,914,081
Total investments	$	21,106,247	$	21,106,247	$	11,351,857	$	8,192,166	$	1,562,224

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					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, 2012
U.S. government agency securities	$	466,357	$	466,357	$	—	$	466,357	$	—
Obligations of state and political subdivisions		6,854,569		6,854,569				6,854,569
Corporate debt securities		344,556		344,556				344,556
Total fixed maturity investments		7,665,482		7,665,482
Equity securities (excluding the hedge fund)		11,098,669		11,098,669		11,098,669
Hedge fund		1,485,151		1,485,151						1,485,151
Total equity securities		12,583,820		12,583,820
Total investments	$	20,249,302	$	20,249,302	$	11,098,669	$	7,665,482	$	1,485,151

There were no transfers between Levels 1 and 2 during the six months ended June 30, 2013 and the year ended December 31, 2012.

The following table presents a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the six months ended June 30, 2013 and 2012:

	Hedge Fund Investment Six Months ended
	June 30, 2013		June 30, 2012
Balance classified as Level 3, beginning of period	$	1,485,151	$	1,395,933
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		77,073		36,688
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

There were no transfers into or from the Level 3 category during the six months ended June 30, 2013 and 2012.

The following table presents a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the three months ended June 30, 2013 and 2012:

	Hedge Fund Investment Three Months ended
	June 30, 2013		June 30, 2012
Balance classified as Level 3, beginning of period	$	1,523,435	$	1,454,301
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		38,789		(21,680	)
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

There were no transfers into or from the Level 3 category during the three months ended June 30, 2013 and 2012.

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The cost or amortized cost and estimated fair value of fixed maturity investments as of June 30, 2013 and December 31, 2012 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 June 30, 2013
Due in one year or less	$	695,915	$	709,146
Due after one year through five years		5,313,346		5,422,096
Due after five years through ten years		1,881,622		1,890,297
Due after ten years		187,549		170,627
Total	$	8,078,432	$	8,192,166
	Amortized Cost		Estimated Fair Value
As of December 31, 2012
Due in one year or less	$	1,081,039	$	1,094,775
Due after one year through five years		3,410,272		3,603,525
Due after five years through ten years		2,658,925		2,775,483
Due after ten years		190,300		191,699
Total	$	7,340,536	$	7,665,482

Information on sales and maturities of investments during the six months ended June 30, 2013 and 2012 are as follows:

	June 30, 2013			June 30, 2012
Total proceeds on sales of available-for-sale securities	$	3,463,883		$	1,513,832
Proceeds from redemptions of fixed maturity investments		—			500,000
Total proceeds from maturities of fixed maturity investments		830,000			200,000
Gross gains on sales		1,908,901			777,639
Impairment losses		(81,154	)		(165,611	)

Information on sales and maturities of investments during the three months ended June 30, 2013 and 2012 are as follows:

	June 30, 2013		June 30, 2012
Total proceeds on sales of available-for-sale securities	$	2,001,184	$	229,632
Proceeds from redemptions of fixed maturity investments		—		500,000
Total proceeds from maturities of fixed maturity investments		580,000		—
Gross gains on sales		1,067,045		104,357
Impairment losses		—		(101,422	)

Major categories of net interest and dividend income during the six months ended June 30, 2013 and 2012 are summarized as follows:

	June 30, 2013			June 30, 2012
Interest earned:
Fixed maturity investments	$	137,371		$	174,355
Short term investments and cash and cash equivalents		230			325
Dividends earned		73,848			97,297
Investment expenses		(63,373	)		(64,857	)
Net investment income	$	148,076		$	207,120

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Major categories of net interest and dividend income during the three months ended June 30, 2013 and 2012 are summarized as follows:

	June 30, 2013			June 30, 2012
Interest earned:
Fixed maturity investments	$	69,334		$	86,978
Short term investments and cash and cash equivalents		78			168
Dividends earned		45,231			57,624
Investment expenses		(31,859	)		(32,916	)
Net investment income	$	82,784		$	111,854

3. SEGMENT INFORMATION

AmerInst has two operating 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 defined in the “Overview” section below.

The tables below summarize the results of our operating segments for the six months ended June 30, 2013 and 2012.

	Six Months Ended June 30, 2013
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	2,765,968	$	602,098		$	3,368,066
Total losses and expenses		1,696,573		1,420,310			3,116,883
Segment income (loss)	$	1,069,395	$	(818,212	)	$	251,183
Identifiable assets	$	—	$	492,544		$	492,544
	Six Months Ended June 30, 2012
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,370,328	$	405,824		$	1,776,152
Total losses and expenses		1,126,450		1,268,849			2,395,299
Segment income (loss)	$	243,878	$	(863,025	)	$	(619,147	)
Identifiable assets	$	—	$	648,207		$	648,207

The tables below summarize the results of our operating segments for the three months ended June 30, 2013 and 2012.

	Three Months Ended June 30, 2013
	Reinsurance Segment			Insurance Segment			Total
Revenues	$	1,610,223		$	298,411		$	1,908,634
Total losses and expenses		1,061,921			716,500			1,778,421
Segment income (loss)	$	548,302		$	(418,089	)	$	130,213
Identifiable assets	$	—		$	492,544		$	492,544
	Three Months Ended June 30, 2012
	Reinsurance Segment			Insurance Segment			Total
Revenues	$	391,129		$	190,743		$	581,872
Total losses and expenses		686,027			597,380			1,283,407
Segment loss	$	(294,898	)	$	(406,637	)	$	(701,535	)
Identifiable assets	$	—		$	648,207		$	648,207

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4. STOCK COMPENSATION

AmerInst Professional Services Limited (“APSL”), a subsidiary of AmerInst, has employment agreements with four key members of senior management, which grant them phantom shares of the Company. Under these agreements, these employees were initially granted a total of 75,018 phantom shares of the Company on the date of their employment. The phantom shares are eligible for phantom dividends paid 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 three months ended June 30, 2013, no phantom shares were granted because no dividends were declared on the Company’s common shares. During the six months ended June 30, 2013, 610 phantom shares were granted arising from the dividends declared on the Company’s common shares. 79,927 phantom shares were outstanding at June 30, 2013.

Three employees’ and one employee’s interest in the phantom shares initially granted as well as any additional shares granted from dividends declared will vest on January 1, 2015 and January 1, 2018, respectively. The liability payable to the three employees and one employee under this phantom share plan 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 the earlier of the employee attaining 65 years 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, 2015 and January 1, 2018, respectively.

During the first quarter of 2013, one key member of APSL’s senior management forfeited his interest in his 12,009 phantom shares as a result of his departure from APSL prior to the phantom shares’ January 1, 2015 vesting date. Also during the first quarter of 2013, a new key member of APSL’s senior management entered into an employment agreement with APSL and was granted 11,252 phantom shares of the Company on the date of his employment.

The following table provides a reconciliation of the beginning and ending balance of non-vested phantom shares for the six months ended June 30, 2013:

	Number of Phantom  Shares
Outstanding - beginning		80,074
Granted – initial grant on the employment date		11,252
Granted – arising from dividends declared during the quarter		610
Forfeited – due to departure from APSL prior to vesting date		(12,009	)
Outstanding - ending		79,927

The liability relating to these phantom shares is recalculated quarterly based on the net book value of the Company’s common shares at the end of each quarter. As a result of the overall decrease in the book value of the Company’s common shares since the grant dates, no liability has been recorded by the Company relating to these phantom shares at June 30, 2013.

Item 2. 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.

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 2012 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” or discussed in this 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

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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” means AmerInst Professional Services, Limited, a Delaware corporation and wholly-owned subsidiary of AmerInst Mezco, Ltd. (“Mezco”) 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 Cedar 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 operating 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 operating segment and the insurance activity operating segment were $2,765,968 and $602,098 for the six months ended June 30, 2013 compared to $1,370,328 and $405,824 for the six months ended June 30, 2012, respectively. The revenues for both operating segments were derived from business operations in the United States other than interest income on bank accounts maintained in Bermuda.

Entry into Agency Agreement

On September 25, 2009, APSL 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 APSL 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.

Entry into 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 APSL 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. The initial term of the Reinsurance Agreement was for four years with automatic one-year renewals thereafter.

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 potentially liable for claims related to coverage through May 31, 2009.

Attorneys’ Professional Liability Coverage

On January 1, 2003, we entered into a 15% participation of Professionals Direct Insurance Company’s (“PDIC”) attorneys’ professional liability first excess cover. This participation terminated on December 31, 2003. The final reported claim was closed during 2011. Although we no longer anticipate any claims, we may be liable for further claims related to this period of coverage.

Third-party Managers and Service Providers

Cedar Management Limited provides the day-to-day services necessary for the administration of our business. Our agreement with Cedar Management Limited renewed for one year beginning January 1, 2013 and ending December 31, 2013. Mr. Stuart Grayston, our President, was formerly a director and officer of Cedar Management Limited, and Mr. Thomas R. McMahon, our Treasurer and Chief Financial Officer, is a shareholder, officer, director and employee of Cedar Management Limited.

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Lawrence Carlson, a certified public accountant and an independent contractor, provides the primary accounting functions to APSL. Our agreement with him, which was effective January 1, 2013, has no ending date but can be terminated by either party upon 30 days written notice.

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 Aurora Investment Management, LLC 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

Six months ended June 30, 2013 compared to six months ended June 30, 2012

We recorded a net income of $251,183 for the six months ended June 30, 2013 compared to a net loss of $619,147 for the same period in 2012. The increase in net income is attributable to (i) the increase in commission income from $405,576 for the six months ended June 30, 2012 to $601,910 for the six months ended June 30, 2013 as a result of a higher volume of premiums written under the Agency Agreement and (ii) the increase in net realized gains on investments from $612,028 in 2012 to $1,827,747 in 2013, as discussed in further detail below.

Our net premiums earned for the six months ended June 30, 2013 were $790,333 compared to $453,272 for the six months ended June 30, 2012, an increase of $337,061 or 74.4%. The net premiums earned for the six months ended June 30, 2013 and 2012 were attributable to cessions from C&F under the Reinsurance Agreement. The increase in net premiums earned under the Reinsurance Agreement during the first six months of 2013 compared to the corresponding period in 2012 resulted from increased cessions from C&F in 2013, arising from a higher level of underwriting activity under the Agency Agreement due to the continued marketing of the program by APSL resulting in increasing penetration in targeted markets.

During the six months ended June 30, 2013 and 2012, we recorded commission income under the Agency Agreement of $601,910 and $405,576, respectively, an increase of $196,334 or 48.4%. This increase resulted from a higher volume of premiums written under the Agency Agreement in 2013.

We recorded other income of $98,156 for the six months ended June 30, 2012, which included (1) a $60,000 refund of non-resident withholding tax that was erroneously deducted from dividend income earned on our equity investment portfolio in prior years and (2) net interest received from PDIC in the amount of $38,156 in relation to funds that were held in deposit by PDIC pursuant to the 2003 excess of loss reinsurance agreement between AMIC Ltd. and PDIC. No other income was recorded during the six months ended June 30, 2013.

We recorded net investment income of $148,076 for the six months ended June 30, 2013 compared to $207,120 for the six months ended June 30, 2012. The decline in net investment income is due to (i) the reduction in the investment portfolio due to the disposition of certain fixed income and equity securities and (ii) lower yielding fixed income securities held in the Company’s investment portfolio during the six months ended June 30, 2013 compared to the same period in 2012. 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% for the six months ended June 30, 2013, compared to the 1.7% yield earned for the six months ended June 30, 2012.

Sales of securities during the six months ended June 30, 2013 resulted in realized gains on investments net of impairment of $1,827,747 compared to $612,028 for the six months ended June 30, 2012, an increase of $1,215,719. The increase in realized gains primarily related to increased sales of equity securities in an unrealized gain position during the first six months of 2013 compared to the same period in 2012.

For the six months ended June 30, 2013, we recorded loss and loss adjustment expenses of $704,725, which represents (i) $493,958 in losses incurred derived by multiplying our estimated loss ratio of 62.5% and the net premiums earned under the Reinsurance Agreement of $790,333 and (ii) a $210,767 increase in CAMICO Incurred But Not Reported (“IBNR”) loss reserves which resulted from unfavorable development in policy years 2007/2008 and 2008/2009 during the second quarter. For the six months ended June 30, 2012, we recorded loss and loss adjustment expenses of $283,295 derived by multiplying our estimated loss ratio of 62.5% and the net premiums earned under the Reinsurance Agreement of $453,272.

We recorded policy acquisition costs of $292,431 for the six months ended June 30, 2013 compared to $168,667 for the same period in 2012. 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. The policy acquisition costs recorded during the six months ended June 30, 2013 and 2012 were approximately 37% of the net premiums earned under the Reinsurance Agreement of $790,333 and $453,272, respectively.

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We expensed operating and management expenses of $2,119,727 for the six months ended June 30, 2013 compared to $1,943,337 for the same period in 2012, an increase of $176,390 or 9.1%. The increase was primarily attributable to increased salaries and related costs associated with APSL’s hiring of additional marketing personnel in 2013.

The tables below summarize the results of the following AmerInst operating 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.

	Six Months Ended June 30, 2013
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	2,765,968	$	602,098		$	3,368,066
Total losses and expenses		1,696,573		1,420,310			3,116,883
Segment income (loss)	$	1,069,395	$	(818,212	)	$	251,183
Identifiable assets	$	—	$	492,544		$	492,544
	Six Months Ended June 30, 2012
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,370,328	$	405,824		$	1,776,152
Total losses and expenses		1,126,450		1,268,849			2,395,299
Segment income (loss)	$	243,878	$	(863,025	)	$	(619,147	)
Identifiable assets	$	—	$	648,207		$	648,207

Three months ended June 30, 2013 compared to three months ended June 30, 2012

We recorded a net income of $130,213 for the second quarter of 2013 compared to a net loss of $701,535 for the same period in 2012. The increase in net income is mainly attributable to (i) the increase in commission income from $190,632 in the second quarter of 2012 to $298,348 in the second quarter of 2013 as a result of a higher volume of premiums written under the Agency Agreement and (ii) the increase in net realized gains on investments from $2,935 in 2012 to $1,067,045 in 2013, as discussed in further detail below.

Our net premiums earned for the second quarter of 2013 were $460,457 compared to $276,451 for the second quarter of 2012, an increase of $184,006 or 66.6%. The net premiums earned for the quarters ended June 30, 2013 and 2012 were attributable to cessions from C&F under the Reinsurance Agreement. The increase in net premiums earned under the Reinsurance Agreement during the second quarter of 2013 compared to the same period in 2012 resulted from increased cessions from C&F in 2013, arising from a higher level of underwriting activity under the Agency Agreement due to the continued marketing of the program by APSL resulting in increasing penetration in targeted markets.

For the quarters ended June 30, 2013 and 2012, we recorded commission income under the Agency Agreement of $298,348 and $190,632, respectively, an increase of $107,716 or 56.5%. This increase resulted from a higher volume of premiums written under the Agency Agreement in 2013.

We recorded net investment income of $82,784 for the quarter ended June 30, 2013 compared to $111,854 for the quarter ended June 30, 2012. The decline in net investment income is due to (i) the reduction in the investment portfolio due to the disposition of certain fixed income and equity securities and (ii) lower yielding fixed income securities held in the Company’s investment portfolio during the second quarter of 2013 compared to the same period in 2012. 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 1.4% for the quarter ended June 30, 2013, compared to the 1.8% yield earned for the quarter ended June 30, 2012.

Sales of securities for the quarter ended June 30, 2013 resulted in realized gains on investments net of impairment of $1,067,045 compared to $2,935 during the quarter ended June 30, 2012, an increase of $1,064,110. The increase in realized gains primarily related to increased sales of equity securities in an unrealized gain position compared to 2012 and to the decrease in other-than-temporary impairment charges during the second quarter of 2013 compared to the second quarter of 2012.

For the quarter ended June 30, 2013, we recorded loss and loss adjustment expenses of $498,552, which represents (i) $287,785 in losses incurred derived by multiplying our estimated loss ratio of 62.5% and the net premiums earned under the Reinsurance Agreement of $460,457 and (ii) a $210,767 increase in CAMICO IBNR loss reserves which resulted from unfavorable development in policy years 2007/2008 and 2008/2009 during the second quarter. For the quarter ended June 30, 2012, we recorded loss and loss adjustment expenses of $172,781 derived by multiplying our estimated loss ratio of 62.5% and the net premiums earned under the Reinsurance Agreement of $276,451.

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We recorded policy acquisition costs of $170,370 in the second quarter of 2013 compared to $103,243 for the same period in 2012. 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. The policy acquisition costs recorded during the second quarter of 2013 and 2012 were approximately 37% of the net premiums earned under the Reinsurance Agreement of $460,457 and $276,451, respectively.

We expensed operating and management expenses of $1,109,499 in the second quarter 2013 compared to $1,007,383 for the same period in 2012, an increase of $102,116 or 10.1%. The increase was primarily attributable to increased salaries and related costs associated with APSL’s hiring of additional marketing personnel in 2013.

The tables below summarize the results of the following AmerInst operating 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.

	Three Months Ended June 30, 2013
	Reinsurance Segment			Insurance Segment			Total
Revenues	$	1,610,223		$	298,411		$	1,908,634
Total losses and expenses		1,061,921			716,500			1,778,421
Segment income (loss)	$	548,302		$	(418,089	)	$	130,213
Identifiable assets	$	—		$	492,544		$	492,544
	Three Months Ended June 30, 2012
	Reinsurance Segment			Insurance Segment			Total
Revenues	$	391,129		$	190,743		$	581,872
Total losses and expenses		686,027			597,380			1,283,407
Segment income (loss)	$	(294,898	)	$	(406,637	)	$	(701,535	)
Identifiable assets	$	—		$	648,207		$	648,207

FINANCIAL CONDITION

As of June 30, 2013, our total investments were $21,106,247, an increase of $856,945 or 4.2%, from $20,249,302 at December 31, 2012. This was primarily due to the increase in the fair value of certain equity securities as a result of favorable market conditions, partially offset by the sales of certain equity securities in an unrealized gain position. The cash and cash equivalents balance increased from $1,034,485 at December 31, 2012 to $1,458,465 at June 30, 2013, an increase of $423,980 or 41%. The amount of cash and cash equivalents varies depending on the maturities of fixed term investments and on the level of funds invested in money market funds. The restricted cash and cash equivalents balance decreased from $1,349,744 at December 31, 2012 to $684,008 at June 30, 2013, a decrease of $665,736. The decrease is due to the timing of sales and maturities of investments held as restricted cash at June 30, 2013 that have not yet been reinvested. Other invested assets remained unchanged at $1,470,000 as at June 30, 2013 and December 31, 2012. The ratio of cash, total investments and other invested assets to total liabilities at June 30, 2013 was 5.48:1, compared to a ratio of 6.34:1 at December 31, 2012.

The assumed reinsurance balances receivable represents the current assumed premiums receivable less commissions payable to the fronting carriers. As of June 30, 2013, the balance was $372,241 compared to $274,526 as of December 31, 2012. The increase resulted from a higher level of premiums assumed under the Reinsurance Agreement.

The assumed reinsurance payable represents current reinsurance losses payable to the fronting carriers. As of June 30, 2013, the balance was $171,348 compared to $178,880 as of December 31, 2012. This balance fluctuates due to the timing of reported losses under the policies we insure.

Deferred policy acquisition costs, which represent the deferral of ceding commission expense related to premiums not yet earned, increased from $268,643 at December 31, 2012 to $398,068 at June 30, 2013. The increase in deferred policy acquisition costs in 2013 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%.

18

Prepaid expenses and other assets were $594,131 at June 30, 2013, an increase of 44.2% from December 31, 2012. The balance primarily relates to (1) prepaid directors’ and officers’ liability insurance costs, (2) the prepaid directors’ retainer, (3) prepaid professional fees and (4) premiums due to APSL under the Agency Agreement. The increase in the balance was mainly attributable to the directors’ retainer payments made in May 2013 relating to the period from June 1, 2013 to May 31, 2014.

Accrued expenses and other liabilities primarily represent premiums payable by APSL to C&F under the Agency Agreement and expenses accrued relating largely to professional fees. The balance decreased from $1,490,727 at December 31, 2012 to $1,362,430 at June 30, 2013, a decrease of $128,297 or 8.6%. The decrease in the balance was attributable to a reduction in expenses accrued in relation to professional fees.

LIQUIDITY AND CAPITAL RESOURCES

Our cash needs consist of settlement of losses and expenses under our reinsurance treaties and funding day-to-day operations. During the continued implementation of our business plan, our management expects to meet these cash needs from cash flows arising from 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 which may arise without resorting to borrowing, subject to regulatory limitations.

Total cash, investments and other invested assets increased from $24,103,531 at December 31, 2012 to $24,718,720 at June 30, 2013, an increase of $615,189 or 2.6%. The net increase resulted primarily from the increase in the fair value of certain equity securities as a result of favorable market conditions and positive cash inflows in relation to net investment income and net premiums received under the Reinsurance Agreement in the amount of $435,091. These increases were partially offset by net cash outflows to fund the operations of APSL and dividends of $168,854 paid during the first quarter of 2013.

The Bermuda Monetary Authority has authorized Investco to purchase the Company’s common shares from shareholders who have died or retired from the practice of public accounting and on a negotiated basis. During the six months and three months ended June 30, 2013, no such transactions occurred. Through June 30, 2013, Investco had purchased 152,801 common shares from shareholders who had died or retired for a total purchase price of $4,229,376. From time to time, Investco has also purchased shares in privately negotiated transactions. Through June 30, 2013, Investco had purchased an additional 75,069 common shares in such privately negotiated transactions for a total purchase price of $1,109,025.

Cash Dividends

We paid dividends of $0.25 per share during the first quarter of 2013, which amounted to total ordinary cash dividends of $168,854. Since we began paying dividends in 1995, our original shareholders have received $19.62 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 9.5% from the inception of the Company, based on a per share purchase price of $8.33 paid by the original shareholder, and using an unaudited book value of $32.63 per share as of June 30, 2013. 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 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

AmerInst is not a party to any off-balance sheet arrangements.

CRITICAL ACCOUNTING POLICIES

The Company’s 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, 2012.

19

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 Cedar Management Limited, 25 Church Street, Continental Building, P.O. Box HM 1601 Hamilton, Bermuda HMGX, Attention: Investor Relations (441) 295-6015. The information on our internet site is not incorporated by reference into this report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of June 30, 2013, the end of the period covered by this Form 10-Q, our management, including our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 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 June 30, 2013, the end of the period covered by this Form 10-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 Rule 13a-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—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 Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our 2012 Annual Report on Form 10-K, as updated in our subsequent quarterly reports. The risks described in our 2012 Annual Report on Form 10-K 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 and/or operating results.

20

Item 6. Exhibits

(a) Exhibits

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

21

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: August 14, 2013	AMERINST INSURANCE GROUP, LTD.
	(Registrant)
	By:	/s/ STUART H. GRAYSTON
		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)

22

AMERINST INSURANCE GROUP, LTD.

INDEX TO EXHIBITS

Filed with the Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2013

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

23

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Stuart H. Grayston, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AmerInst Insurance Group, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/S/ STUART H. GRAYSTON

Stuart H. Grayston

President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Thomas R. McMahon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AmerInst Insurance Group, Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/S/ THOMAS R. MCMAHON

Thomas R. McMahon

Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AmerInst Insurance Group, Ltd. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stuart H. Grayston, President and Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ STUART H. GRAYSTON

Stuart H. Grayston

President (Principal Executive Officer)

August 14, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AmerInst Insurance Group, Ltd. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas R. McMahon, Chief Financial Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ THOMAS R. MCMAHON

Thomas R. McMahon

Chief Financial Officer (Principal Financial Officer)

August 14, 2013

XML

Investments (Schedule Of Reconciliation Of Investments Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Investments [Abstract]
Balance classified as Level 3, beginning of period	$ 1,523,435	$ 1,454,301	$ 1,485,151	$ 1,395,933
Change in fair value of hedge fund investments	38,789	(21,680)	77,073	36,688
Ending balance, end of period	$ 1,562,224	$ 1,432,621	$ 1,562,224	$ 1,432,621

XML

Condensed Consolidated Statements Of Operations, Comprehensive Income (Loss) And Retained Earnings (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
REVENUES
Net premiums earned	$ 460,457	$ 276,451	$ 790,333	$ 453,272
Commission income	298,348	190,632	601,910	405,576
Other income				98,156
Net investment income	82,784	111,854	148,076	207,120
Net realized gain on investments	1,067,045	2,935	1,827,747	612,028
TOTAL REVENUES	1,908,634	581,872	3,368,066	1,776,152
LOSSES AND EXPENSES
Losses and loss adjustment expenses	498,552	172,781	704,725	283,295
Policy acquisition costs	170,370	103,243	292,431	168,667
Operating and management expenses	1,109,499	1,007,383	2,119,727	1,943,337
TOTAL LOSSES AND EXPENSES	1,778,421	1,283,407	3,116,883	2,395,299
NET INCOME (LOSS) BEFORE TAX	130,213	(701,535)	251,183	(619,147)
Income tax expense
NET INCOME (LOSS) AFTER TAX	130,213	(701,535)	251,183	(619,147)
OTHER COMPREHENSIVE INCOME (LOSS)
Net unrealized holding gains (losses) arising during the period	636,002	(338,006)	1,860,633	982,600
Reclassification adjustment for gains included in net (loss)	(1,067,045)	(2,935)	(1,827,747)	(612,028)
OTHER COMPREHENSIVE INCOME (LOSS)	(431,043)	(340,941)	32,886	370,572
COMPREHENSIVE INCOME (LOSS)	(300,830)	(1,042,476)	284,069	(248,575)
RETAINED EARNINGS, BEGINNING OF PERIOD	16,301,564	17,337,601	16,349,448	17,411,533
Segment income (loss)	130,213	(701,535)	251,183	(619,147)
Dividends			168,854	156,320
RETAINED EARNINGS, END OF PERIOD	$ 16,431,777	$ 16,636,066	$ 16,431,777	$ 16,636,066
Per share amounts
Basic and diluted income (loss) per share	$ 0.19	$ (1.02)	$ 0.37	$ (0.90)
Dividends, per share	$ 0.00	$ 0.00	$ 0.25	$ 0.25
Weighted average number of shares outstanding for the entire period (for basic and diluted)	677,046	685,157	676,503	687,321

XML

Investments (Tables)

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

Schedule Of Cost Or Amortized Cost, Gross Unrealized Holding Gains And Losses, And Estimated Fair Value Of Fixed Maturity Investments

Cost or		Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
As of June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	446,961	$	2,823	$	—		$	449,784
Obligations of states and political subdivisions		7,307,592		176,998		(76,990	)		7,407,600
Corporate debt securities		323,879		10,903		—			334,782
Total fixed maturity investments		8,078,432		190,724		(76,990	)		8,192,166
Equity securities*		6,205,853		5,146,004		—			11,351,857
Hedge fund		1,000,000		562,224		—			1,562,224
Total equity securities		7,205,853		5,708,228		—			12,914,081
Total investments	$	15,284,285	$	5,898,952	$	(76,990	)	$	21,106,247

		Cost or		Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
As of December 31, 2012
Fixed maturity investments:
U.S. government agency securities	$	446,713	$	19,644	$	—		$	466,357
Obligations of states and political subdivisions		6,566,849		302,324		(14,604	)		6,854,569
Corporate debt securities		326,974		17,582		—			344,556
Total fixed maturity investments		7,340,536		339,550		(14,604	)		7,665,482
Equity securities*		6,119,690		4,981,815		(2,836	)		11,098,669
Hedge fund		1,000,000		485,151		—			1,485,151
Total equity securities		7,119,690		5,466,966		(2,836	)		12,583,820
Total investments	$	14,460,226	$	5,806,516	$	(17,440	)	$	20,249,302

*   The Company's equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.

Schedule Of Fixed Maturity And Equity Securities In An Unrealized Loss Position And The Aggregate Fair Value And Gross Unrealized Loss

		12 months or greater				Less than 12 months				Total
		Estimated	Unrealized			Estimated		Unrealized			Estimated		Unrealized
		Fair Value	Losses			Fair Value		Losses			Fair Value		Losses
As of June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Equity securities		—		—		—		—			—		—
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		—		—			—		—
Total investments	$	—	$	—	$	2,614,367	$	(76,990	)	$	2,614,367	$	(76,990	)

		12 months or greater				Less than 12 months				Total
		Estimated	Unrealized			Estimated		Unrealized			Estimated		Unrealized
		Fair Value	Losses			Fair Value		Losses			Fair Value		Losses
As of December 31, 2012
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		660,084		(14,604	)		660,084		(14,604	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		660,084		(14,604	)		660,084		(14,604	)
Equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Total investments	$	—	$	—	$	705,610	$	(17,440	)	$	705,610	$	(17,440	)

Schedule Of The Fair Value Of Investments

Fair value measurement using:
						Quoted prices
						in active		Significant other	Significant
		Carrying		Total fair		markets		observable inputs	unobservable inputs
		amount		value		(Level 1)		(Level 2)	(Level 3)
As of June 30, 2013
U.S. government agency securities	$	449,784	$	449,784	$	—	$	449,784	$	—
Obligations of state and political
subdivisions		7,407,600		7,407,600				7,407,600
Corporate debt securities		334,782		334,782				334,782
Total fixed maturity investments		8,192,166		8,192,166
Equity securities (excluding the hedge
fund)		11,351,857		11,351,857		11,351,857
Hedge fund		1,562,224		1,562,224						1,562,224
Total equity securities		12,914,081		12,914,081
Total investments	$	21,106,247	$	21,106,247	$	11,351,857	$	8,192,166	$	1,562,224

					Fair value measurement using:
						Quoted prices
						in active		Significant other	Significant
		Carrying		Total fair		markets		observable inputs	unobservable inputs
		amount		value		(Level 1)		(Level 2)	(Level 3)
As of December 31, 2012
U.S. government agency securities	$	466,357	$	466,357	$	—	$	466,357	$	—
Obligations of state and
political subdivisions		6,854,569		6,854,569				6,854,569
Corporate debt securities		344,556		344,556				344,556
Total fixed maturity investments		7,665,482		7,665,482
Equity securities (excluding the
hedge fund)		11,098,669		11,098,669		11,098,669
Hedge fund		1,485,151		1,485,151						1,485,151
Total equity securities		12,583,820		12,583,820
Total investments	$	20,249,302	$	20,249,302	$	11,098,669	$	7,665,482	$	1,485,151

Schedule Of Reconciliation Of Investments Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs

	Hedge Fund Investment
	Six Months
	ended
		June 30,		June 30,
		2013		2012
Balance classified as Level 3, beginning of period	$	1,485,151	$	1,395,933
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		77,073		36,688
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

There were no transfers into or from the Level 3 category during the six months ended June 30, 2013 and 2012.

     The following table presents a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the three months ended June 30, 2013 and 2012:

	Hedge Fund Investment
	Three Months
	ended
		June 30,		June 30,
		2013		2012
Balance classified as Level 3, beginning of period	$	1,523,435	$	1,454,301
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		38,789		(21,680	)
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

Schedule Of Cost Or Amortized Cost And Estimated Fair Value Of Fixed Maturity Investments

		Amortized		Estimated
		Cost		Fair Value
As of June 30, 2013
Due in one year or less	$	695,915	$	709,146
Due after one year through five years		5,313,346		5,422,096
Due after five years through ten years		1,881,622		1,890,297
Due after ten years		187,549		170,627
Total	$	8,078,432	$	8,192,166

		Amortized		Estimated
		Cost		Fair Value
As of December 31, 2012
Due in one year or less	$	1,081,039	$	1,094,775
Due after one year through five years		3,410,272		3,603,525
Due after five years through ten years		2,658,925		2,775,483
Due after ten years		190,300		191,699
Total	$	7,340,536	$	7,665,482

Schedule Of Sales And Maturities Of Investments

Information on sales and maturities of investments during the six months ended June 30, 2013 and 2012 are as follows:

		June 30,			June 30,
		2013			2012
Total proceeds on sales of available-for-sale securities	$	3,463,883		$	1,513,832
Proceeds from redemptions of fixed maturity investments		—			500,000
Total proceeds from maturities of fixed maturity investments		830,000			200,000
Gross gains on sales		1,908,901			777,639
Impairment losses		(81,154	)		(165,611	)

Information on sales and maturities of investments during the three months ended June 30, 2013 and 2012 are as follows:

		June 30,		June 30,
		2013		2012
Total proceeds on sales of available-for-sale securities	$	2,001,184	$	229,632
Proceeds from redemptions of fixed maturity investments		—		500,000
Total proceeds from maturities of fixed maturity investments		580,000		—
Gross gains on sales		1,067,045		104,357
Impairment losses		—		(101,422	)

Schedule Of Major Categories Of Net Interest And Dividend Income

categories of net interest and dividend income during the six months ended June 30, 2013 and 2012 are summarized as follows:

		June 30,			June 30,
		2013			2012
Interest earned:
Fixed maturity investments	$	137,371		$	174,355
Short term investments and cash and cash equivalents		230			325
Dividends earned		73,848			97,297
Investment expenses		(63,373	)		(64,857	)
Net investment income	$	148,076		$	207,120

     Major categories of net interest and dividend income during the three months ended June 30, 2013 and 2012 are summarized as follows:

		June 30,			June 30,
		2013			2012
Interest earned:
Fixed maturity investments	$	69,334		$	86,978
Short term investments and cash and cash equivalents		78			168
Dividends earned		45,231			57,624
Investment expenses		(31,859	)		(32,916	)
Net investment income	$	82,784		$	111,854

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Investments (Schedule Of Cost Or Amortized Cost And Estimated Fair Value Of Fixed Maturity Investments) (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Investments [Abstract]
Amortized Cost, Due in one year or less	$ 695,915	$ 1,081,039
Amortized Cost, Due after one year through five years	5,313,346	3,410,272
Amortized Cost, Due after five years through ten years	1,881,622	2,658,925
Amortized Cost, Due after ten years	187,549	190,300
Amortized Cost	8,078,432	7,340,536
Estimated Fair Value, Due in one year or less	709,146	1,094,775
Estimated Fair Value, Due after one year through five years	5,422,096	3,603,525
Estimated Fair Value, Due after five years through ten years	1,890,297	2,775,483
Estimated Fair Value, Due after ten years	170,627	191,699
Estimated Fair Value	$ 8,192,166	$ 7,665,482

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BASIS OF PREPARATION AND CONSOLIDATION

6 Months Ended

Jun. 30, 2013

Description Of Business [Abstract]

Basis Of Preparation And Consolidation

1. BASIS OF PREPARATION AND CONSOLIDATION

     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"), and 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. All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under generally accepted accounting principles 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, 2012 and notes thereto, included in AmerInst's Annual Report on Form 10-K for the year then ended.

New Accounting Pronouncements Adoption of New Accounting Standards

Balance Sheet Offsetting

     In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-11, "Disclosures about Offsetting Assets and Liabilities" ("ASU 2011-11"). The objective of ASU 2011-11 was to enhance disclosures by requiring improved information about financial instruments and derivative instruments in relation to netting arrangements. ASU 2011-11 was effective for interim and annual periods beginning on or after January 1, 2013. As the new guidance affects disclosures only, its adoption did not have a material impact on the Company's consolidated financial statements.

Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income ("AOCI")

     Effective January 1, 2013, we adopted FASB's guidance requiring additional disclosures about reclassification adjustments from AOCI. As this guidance is disclosure-related only and did not amend existing guidance on the reporting of net income available to common shareholders or other comprehensive income, adoption did not impact our results of operations, financial condition or liquidity.

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Segment Information

6 Months Ended

Jun. 30, 2013

Segment Information [Abstract]

Segment Information

3. SEGMENT INFORMATION

     AmerInst has two operating 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 defined in the "Overview" section below.

The tables below summarize the results of our operating segments for the six months ended June 30, 2013 and 2012.

		Six Months Ended June 30, 2013
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	2,765,968	$	602,098		$	3,368,066
Total losses and expenses		1,696,573		1,420,310			3,116,883
Segment income (loss)	$	1,069,395	$	(818,212	)	$	251,183
Identifiable assets	$	—	$	492,544		$	492,544

		Six Months Ended June 30, 2012
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	1,370,328	$	405,824		$	1,776,152
Total losses and expenses		1,126,450		1,268,849			2,395,299
Segment income (loss)	$	243,878	$	(863,025	)	$	(619,147	)
Identifiable assets	$	—	$	648,207		$	648,207

The tables below summarize the results of our operating segments for the three months ended June 30, 2013 and 2012.

		Three Months Ended June 30, 2013
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	1,610,223	$	298,411		$	1,908,634
Total losses and expenses		1,061,921		716,500			1,778,421
Segment income (loss)	$	548,302	$	(418,089	)	$	130,213
Identifiable assets	$	—	$	492,544		$	492,544

		Three Months Ended June 30, 2012
		Reinsurance			Insurance
		Segment			Segment			Total
Revenues	$	391,129		$	190,743		$	581,872
Total losses and expenses		686,027			597,380			1,283,407
Segment loss	$	(294,898	)	$	(406,637	)	$	(701,535	)
Identifiable assets	$	—		$	648,207		$	648,207

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Information [Abstract]

Schedule Of Segment Reporting Information

		Six Months Ended June 30, 2013
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	2,765,968	$	602,098		$	3,368,066
Total losses and expenses		1,696,573		1,420,310			3,116,883
Segment income (loss)	$	1,069,395	$	(818,212	)	$	251,183
Identifiable assets	$	—	$	492,544		$	492,544

		Six Months Ended June 30, 2012
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	1,370,328	$	405,824		$	1,776,152
Total losses and expenses		1,126,450		1,268,849			2,395,299
Segment income (loss)	$	243,878	$	(863,025	)	$	(619,147	)
Identifiable assets	$	—	$	648,207		$	648,207

The tables below summarize the results of our operating segments for the three months ended June 30, 2013 and 2012.

		Three Months Ended June 30, 2013
		Reinsurance		Insurance
		Segment		Segment			Total
Revenues	$	1,610,223	$	298,411		$	1,908,634
Total losses and expenses		1,061,921		716,500			1,778,421
Segment income (loss)	$	548,302	$	(418,089	)	$	130,213
Identifiable assets	$	—	$	492,544		$	492,544

		Three Months Ended June 30, 2012
		Reinsurance			Insurance
		Segment			Segment			Total
Revenues	$	391,129		$	190,743		$	581,872
Total losses and expenses		686,027			597,380			1,283,407
Segment loss	$	(294,898	)	$	(406,637	)	$	(701,535	)
Identifiable assets	$	—		$	648,207		$	648,207

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Stock Compensation

6 Months Ended

Jun. 30, 2013

Stock Compensation [Abstract]

Stock Compensation

4. STOCK COMPENSATION

     AmerInst Professional Services Limited ("APSL"), a subsidiary of AmerInst, has employment agreements with four key members of senior management, which grant them phantom shares of the Company. Under these agreements, these employees were initially granted a total of 75,018 phantom shares of the Company on the date of their employment. The phantom shares are eligible for phantom dividends paid 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 three months ended June 30, 2013, no phantom shares were granted because no dividends were declared on the Company's common shares. During the six months ended June 30, 2013, 610 phantom shares were granted arising from the dividends declared on the Company's common shares. 79,927 phantom shares were outstanding at June 30, 2013.

     Three employees' and one employee's interest in the phantom shares initially granted as well as any additional shares granted from dividends declared will vest on January 1, 2015 and January 1, 2018, respectively. The liability payable to the three employees and one employee under this phantom share plan 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 the earlier of the employee attaining 65 years 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, 2015 and January 1, 2018, respectively.

     During the first quarter of 2013, one key member of APSL's senior management forfeited his interest in his 12,009 phantom shares as a result of his departure from APSL prior to the phantom shares' January 1, 2015 vesting date. Also during the first quarter of 2013, a new key member of APSL's senior management entered into an employment agreement with APSL and was granted 11,252 phantom shares of the Company on the date of his employment.

     The following table provides a reconciliation of the beginning and ending balance of non-vested phantom shares for the six months ended June 30, 2013:

	Number of
	Phantom Shares
Outstanding - beginning	80,074
Granted – initial grant on the employment date	11,252
Granted – arising from dividends declared during the quarter	610
Forfeited – due to departure from APSL prior to vesting date	(12,009	)
Outstanding - ending	79,927

     The liability relating to these phantom shares is recalculated quarterly based on the net book value of the Company's common shares at the end of each quarter. As a result of the overall decrease in the book value of the Company's common shares since the grant dates, no liability has been recorded by the Company relating to these phantom shares at June 30, 2013.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets [Abstract]
Fixed maturity investments, amortized cost	$ 8,078,432	$ 7,340,536
Equity securities, cost	$ 7,205,853	$ 7,119,690
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	995,253	995,253
Common stock, shares outstanding	995,253	995,253
Shares held by Subsidiary, shares	316,580	319,835

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Investments (Schedule Of Cost Or Amortized Cost, Gross Unrealized Holding Gains And Losses, And Estimated Fair Value) (Details) (USD $)	Jun. 30, 2013		Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Losses	$ (76,990)		$ (17,440)
U.S. Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	446,961		446,713
Gross Unrealized Gains	2,823		19,644
Estimated Fair Value	449,784		466,357
Obligations Of States And Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	7,307,592		6,566,849
Gross Unrealized Gains	176,998		302,324
Gross Unrealized Losses	(76,990)		(14,604)
Estimated Fair Value	7,407,600		6,854,569
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	323,879		326,974
Gross Unrealized Gains	10,903		17,582
Estimated Fair Value	334,782		344,556
Total Fixed Maturity Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	8,078,432		7,340,536
Gross Unrealized Gains	190,724		339,550
Gross Unrealized Losses	(76,990)		(14,604)
Estimated Fair Value	8,192,166		7,665,482
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	6,205,853	[1]	6,119,690	[1]
Gross Unrealized Gains	5,146,004	[1]	4,981,815	[1]
Gross Unrealized Losses			(2,836)	[1]
Estimated Fair Value	11,351,857	[1]	11,098,669	[1]
Hedge Fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	1,000,000		1,000,000
Gross Unrealized Gains	562,224		485,151
Estimated Fair Value	1,562,224		1,485,151
Total Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	7,205,853		7,119,690
Gross Unrealized Gains	5,708,228		5,466,966
Gross Unrealized Losses			(2,836)
Estimated Fair Value	12,914,081		12,583,820
Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost or Amortized Cost	15,284,285		14,460,226
Gross Unrealized Gains	5,898,952		5,806,516
Gross Unrealized Losses	(76,990)		(17,440)
Estimated Fair Value	$ 21,106,247		$ 20,249,302

[1] * The Company's equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.

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Condensed Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Operating Activities
Net Cash used in Operating Activities	$ (1,053,640)	$ (950,825)
INVESTING ACTIVITIES
Movement in restricted cash and cash equivalents	665,736	199,853
Purchases of property and equipment	(5,132)
Purchases of available-for-sale securities	(3,308,013)	(1,457,483)
Proceeds from sales of available-for-sale securities	3,463,883	1,513,832
Proceeds from redemptions of fixed maturity investments		500,000
Proceeds from maturities of fixed maturity investments	830,000	200,000
Net Cash provided by Investing Activities	1,646,474	956,202
FINANCING ACTIVITIES
Dividends paid	(168,854)	(156,320)
Net Cash used in Financing Activities	(168,854)	(156,320)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	423,980	(150,943)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,034,485	904,485
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 1,458,465	$ 753,542

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Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Fixed maturity investments, available for sale, at fair value (amortized cost $8,078,432 and $7,340,536)	$ 8,192,166	$ 7,665,482
Equity securities, available for sale, at fair value (cost $7,205,853 and $7,119,690)	12,914,081	12,583,820
TOTAL INVESTMENTS	21,106,247	20,249,302
Cash and cash equivalents	1,458,465	1,034,485
Restricted cash and cash equivalents	684,008	1,349,744
Other invested assets	1,470,000	1,470,000
Assumed reinsurance premiums receivable	372,241	274,526
Accrued investment income	73,134	77,620
Property and equipment	492,544	589,296
Deferred policy acquisition costs	398,068	268,643
Prepaid expenses and other assets	594,131	412,065
TOTAL ASSETS	26,648,838	25,725,681
LIABILITIES
Unpaid losses and loss adjustment expenses	1,897,146	1,408,190
Unearned premiums	1,075,859	726,044
Assumed reinsurance balance payable	171,348	178,880
Accrued expenses and other liabilities	1,362,430	1,490,727
TOTAL LIABILITIES	4,506,783	3,803,841
SHAREHOLDERS' EQUITY
Common shares, $1 par value, 2013 and 2012: 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	16,431,777	16,349,448
Accumulated other comprehensive income	5,821,962	5,789,076
Shares held by Subsidiary (316,580 and 319,835 shares) at cost	(7,394,230)	(7,499,230)
TOTAL SHAREHOLDERS' EQUITY	22,142,055	21,921,840
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 26,648,838	$ 25,725,681

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Stock Compensation (Non-Vested Phantom Shares) (Details)	6 Months Ended
	Jun. 30, 2013
Stock Compensation [Abstract]
Outstanding - beginning	80,074
Granted - initial grant on the employment date	11,252
Granted - arising from dividends declared during the quarter	610
Forfeited - due to departure from APSL prior to vesting date	(12,009)
Outstanding - ending	79,927

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Investments (Narrative) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013 security	Jun. 30, 2012 item	Jun. 30, 2013 security	Jun. 30, 2012 item	Dec. 31, 2012 security
Schedule of Available-for-sale Securities [Line Items]
Securities in an unrealized loss position	10		10		4
Certificates Of Deposit At Carrying Value	$ 1,470,000		$ 1,470,000		$ 1,470,000
Available for sale fixed maturity securities, Estimated fair value	2,614,367		2,614,367		705,610
Other-than-temporary impairment charge	81,154	101,422	81,154	165,611
Number of strategies			6
Securities recording other-than-temporary impairment charges		2		2
Total Fixed Maturity Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in an unrealized loss position	10		10		3
Available for sale fixed maturity securities, Estimated fair value	2,614,367		2,614,367		660,084
Total Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in an unrealized loss position					1
Available for sale fixed maturity securities, Estimated fair value					$ 45,526

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Investments (Schedule Of The Fair Value Of Investments) (Details) (USD $)	Jun. 30, 2013		Dec. 31, 2012
Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	$ 21,106,247		$ 20,249,302
Held-to-maturity Securities, Fair Value Disclosure	8,192,166		7,665,482
Equity Method Investments Fair Value Disclosure	12,914,081		12,583,820
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	21,106,247		20,249,302
Held-to-maturity Securities, Fair Value Disclosure	8,192,166		7,665,482
Equity Method Investments Fair Value Disclosure	12,914,081		12,583,820
Quoted Prices In active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	11,351,857		11,098,669
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	8,192,166		7,665,482
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	1,562,224		1,485,151
U.S. Government Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	449,784		466,357
U.S. Government Agency Securities [Member] | Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	449,784		466,357
U.S. Government Agency Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	449,784		466,357
U.S. Government Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	449,784		466,357
Obligations Of States And Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	7,407,600		6,854,569
Obligations Of States And Political Subdivisions [Member] | Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	7,407,600		6,854,569
Obligations Of States And Political Subdivisions [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	7,407,600		6,854,569
Obligations Of States And Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	7,407,600		6,854,569
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	334,782		344,556
Corporate Debt Securities [Member] | Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	334,782		344,556
Corporate Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	334,782		344,556
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity Securities, Fair Value Disclosure	334,782		344,556
Total Fixed Maturity Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	8,192,166		7,665,482
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	11,351,857	[1]	11,098,669	[1]
Equity Securities [Member] | Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	11,351,857		11,098,669
Equity Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	11,351,857		11,098,669
Equity Securities [Member] | Quoted Prices In active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	11,351,857		11,098,669
Hedge Fund [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	1,562,224		1,485,151
Hedge Fund [Member] | Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	1,562,224		1,485,151
Hedge Fund [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	1,562,224		1,485,151
Hedge Fund [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments Fair Value Disclosure	1,562,224		1,485,151
Total Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	12,914,081		12,583,820
Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total fair value	$ 21,106,247		$ 20,249,302

[1] * The Company's equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.

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Stock Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Stock Compensation [Abstract]

Schedule of Share-based Compensation Arrangements by Share-based Payment Award

	Number of
	Phantom Shares
Outstanding - beginning	80,074
Granted – initial grant on the employment date	11,252
Granted – arising from dividends declared during the quarter	610
Forfeited – due to departure from APSL prior to vesting date	(12,009	)
Outstanding - ending	79,927

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Investments

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

Investments

2. INVESTMENTS

     The cost or amortized cost, gross unrealized holding gains and losses, and estimated fair value of the Company's fixed maturity investments, by major security type, and equity securities as of June 30, 2013 and December 31, 2012 are as follows:

		Cost or		Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
As of June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	446,961	$	2,823	$	—		$	449,784
Obligations of states and political subdivisions		7,307,592		176,998		(76,990	)		7,407,600
Corporate debt securities		323,879		10,903		—			334,782
Total fixed maturity investments		8,078,432		190,724		(76,990	)		8,192,166
Equity securities*		6,205,853		5,146,004		—			11,351,857
Hedge fund		1,000,000		562,224		—			1,562,224
Total equity securities		7,205,853		5,708,228		—			12,914,081
Total investments	$	15,284,285	$	5,898,952	$	(76,990	)	$	21,106,247

		Cost or		Gross		Gross
		Amortized		Unrealized		Unrealized			Estimated
		Cost		Gains		Losses			Fair Value
As of December 31, 2012
Fixed maturity investments:
U.S. government agency securities	$	446,713	$	19,644	$	—		$	466,357
Obligations of states and political subdivisions		6,566,849		302,324		(14,604	)		6,854,569
Corporate debt securities		326,974		17,582		—			344,556
Total fixed maturity investments		7,340,536		339,550		(14,604	)		7,665,482
Equity securities*		6,119,690		4,981,815		(2,836	)		11,098,669
Hedge fund		1,000,000		485,151		—			1,485,151
Total equity securities		7,119,690		5,466,966		(2,836	)		12,583,820
Total investments	$	14,460,226	$	5,806,516	$	(17,440	)	$	20,249,302

* The Company's equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.

     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:

		12 months or greater				Less than 12 months				Total
		Estimated	Unrealized			Estimated		Unrealized			Estimated		Unrealized
		Fair Value	Losses			Fair Value		Losses			Fair Value		Losses
As of June 30, 2013
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		2,614,367		(76,990	)		2,614,367		(76,990	)
Equity securities		—		—		—		—			—		—
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		—		—			—		—
Total investments	$	—	$	—	$	2,614,367	$	(76,990	)	$	2,614,367	$	(76,990	)

		12 months or greater				Less than 12 months				Total
		Estimated	Unrealized			Estimated		Unrealized			Estimated		Unrealized
		Fair Value	Losses			Fair Value		Losses			Fair Value		Losses
As of December 31, 2012
Fixed maturity investments:
U.S. government agency securities	$	—	$	—	$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		—		—		660,084		(14,604	)		660,084		(14,604	)
Corporate debt securities		—		—		—		—			—		—
Total fixed maturity investments		—		—		660,084		(14,604	)		660,084		(14,604	)
Equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Hedge fund		—		—		—		—			—		—
Total equity securities		—		—		45,526		(2,836	)		45,526		(2,836	)
Total investments	$	—	$	—	$	705,610	$	(17,440	)	$	705,610	$	(17,440	)

     As of June 30, 2013 and December 31, 2012, there were ten and four securities in an unrealized loss position with an estimated fair value of $2,614,367 and $705,610, respectively. Of these securities, none had been in an unrealized loss position for 12 months or greater. As of June 30, 2013 and December 31, 2012, none of these securities were considered to be other-than-temporarily impaired. The Company has no intent to sell 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 June 30, 2013 and December 31, 2012, the Company had investments in certificates of deposit ("CD") in the amount of $1,470,000 comprising 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 have maturities ranging from two to five years and are classified as other invested assets on the Company's consolidated balance sheet.

Other-Than-Temporary Impairment Process

     The Company assesses whether declines in the fair value of its fixed maturity investments classified as available-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 as available-for-sale that were in an unrealized loss position at June 30, 2013. 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 six months ended June 30, 2013, the Company did not recognize any other-than-temporary impairments due to required 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.

     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 June 30, 2013 and December 31, 2012, relating to ten and three fixed maturity securities and none and one equity security, amounted to $76,990 and $17,440, respectively. The reduction in the fair values of our fixed maturity securities was attributable to higher interest rates combined with the widening of credit spreads on our fixed income portfolio during the three months ended June 30, 2013 compared to the same period in 2012. The unrealized losses on these available for sale fixed maturity securities were not as a result of credit, collateral or structural issues. During the six months ended June 30, 2013, the Company recorded a total other-than-temporary impairment charge of $81,154 on one equity security, as a result of the decline in fair value below cost. No other-than-temporary impairment charges were recorded during the three months ended June 30, 2013. During the six months ended and three months ended June 30, 2012, the Company recorded a total other-than-temporary impairment charge of $165,611 and $101,422, respectively, on two equity securities, as a result of the decline in fair value below cost.

Fair Value of Investments

     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 FASB'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 input that is significant to determining such measurement. The three levels are defined as follows:

• Level 1: Observable inputs to the valuation methodology that are quoted prices (unadjusted) for identical assets or liabilities in active markets.
• 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 June 30, 2013 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 included in the Level 2 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 included in the Level 2 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 included in the Level 2 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 included in the Level 1 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 is to seek attractive long-term returns with lower volatility by investing in a range of diversified investment strategies. The fund invests in a diversified pool of hedge fund managers, generally across six different strategies: long/short equities, long/short credit, macro, multi-strategy opportunistic, event- driven, and portfolio hedge. The fair value of the hedge fund is based on the net asset value of the fund as reported by the external fund manager. The use of net asset value as an estimate of the fair value for investments in certain entities that calculate net asset value is a permitted practical expedient. The fair value of our hedge fund is included in the Level 3 fair value hierarchy.

     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 challenge any 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, 2012. Since the fair value of a security is an estimate of what a willing buyer would pay for our asset if we sold it, we will not 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 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 June 30, 2013 and December 31, 2012:

					Fair value measurement using:
						Quoted prices
						in active		Significant other	Significant
		Carrying		Total fair		markets		observable inputs	unobservable inputs
		amount		value		(Level 1)		(Level 2)	(Level 3)
As of June 30, 2013
U.S. government agency securities	$	449,784	$	449,784	$	—	$	449,784	$	—
Obligations of state and political
subdivisions		7,407,600		7,407,600				7,407,600
Corporate debt securities		334,782		334,782				334,782
Total fixed maturity investments		8,192,166		8,192,166
Equity securities (excluding the hedge
fund)		11,351,857		11,351,857		11,351,857
Hedge fund		1,562,224		1,562,224						1,562,224
Total equity securities		12,914,081		12,914,081
Total investments	$	21,106,247	$	21,106,247	$	11,351,857	$	8,192,166	$	1,562,224

					Fair value measurement using:
						Quoted prices
						in active		Significant other	Significant
		Carrying		Total fair		markets		observable inputs	unobservable inputs
		amount		value		(Level 1)		(Level 2)	(Level 3)
As of December 31, 2012
U.S. government agency securities	$	466,357	$	466,357	$	—	$	466,357	$	—
Obligations of state and
political subdivisions		6,854,569		6,854,569				6,854,569
Corporate debt securities		344,556		344,556				344,556
Total fixed maturity investments		7,665,482		7,665,482
Equity securities (excluding the
hedge fund)		11,098,669		11,098,669		11,098,669
Hedge fund		1,485,151		1,485,151						1,485,151
Total equity securities		12,583,820		12,583,820
Total investments	$	20,249,302	$	20,249,302	$	11,098,669	$	7,665,482	$	1,485,151

     There were no transfers between Levels 1 and 2 during the six months ended June 30, 2013 and the year ended December 31, 2012.

     The following table presents a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the six months ended June 30, 2013 and 2012:

	Hedge Fund Investment
	Six Months
	ended
		June 30,		June 30,
		2013		2012
Balance classified as Level 3, beginning of period	$	1,485,151	$	1,395,933
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		77,073		36,688
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

There were no transfers into or from the Level 3 category during the six months ended June 30, 2013 and 2012.

     The following table presents a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the three months ended June 30, 2013 and 2012:

	Hedge Fund Investment
	Three Months
	ended
		June 30,		June 30,
		2013		2012
Balance classified as Level 3, beginning of period	$	1,523,435	$	1,454,301
Total gains or losses included in earnings:		—		—
Net realized gains		—		—
Change in fair value of hedge fund investment		38,789		(21,680	)
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,562,224	$	1,432,621

There were no transfers into or from the Level 3 category during the three months ended June 30, 2013 and 2012.

     The cost or amortized cost and estimated fair value of fixed maturity investments as of June 30, 2013 and December 31, 2012 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		Estimated
		Cost		Fair Value
As of June 30, 2013
Due in one year or less	$	695,915	$	709,146
Due after one year through five years		5,313,346		5,422,096
Due after five years through ten years		1,881,622		1,890,297
Due after ten years		187,549		170,627
Total	$	8,078,432	$	8,192,166

		Amortized		Estimated
		Cost		Fair Value
As of December 31, 2012
Due in one year or less	$	1,081,039	$	1,094,775
Due after one year through five years		3,410,272		3,603,525
Due after five years through ten years		2,658,925		2,775,483
Due after ten years		190,300		191,699
Total	$	7,340,536	$	7,665,482

Information on sales and maturities of investments during the six months ended June 30, 2013 and 2012 are as follows:

		June 30,			June 30,
		2013			2012
Total proceeds on sales of available-for-sale securities	$	3,463,883		$	1,513,832
Proceeds from redemptions of fixed maturity investments		—			500,000
Total proceeds from maturities of fixed maturity investments		830,000			200,000
Gross gains on sales		1,908,901			777,639
Impairment losses		(81,154	)		(165,611	)

Information on sales and maturities of investments during the three months ended June 30, 2013 and 2012 are as follows:

		June 30,		June 30,
		2013		2012
Total proceeds on sales of available-for-sale securities	$	2,001,184	$	229,632
Proceeds from redemptions of fixed maturity investments		—		500,000
Total proceeds from maturities of fixed maturity investments		580,000		—
Gross gains on sales		1,067,045		104,357
Impairment losses		—		(101,422	)

     Major categories of net interest and dividend income during the six months ended June 30, 2013 and 2012 are summarized as follows:

		June 30,			June 30,
		2013			2012
Interest earned:
Fixed maturity investments	$	137,371		$	174,355
Short term investments and cash and cash equivalents		230			325
Dividends earned		73,848			97,297
Investment expenses		(63,373	)		(64,857	)
Net investment income	$	148,076		$	207,120

     Major categories of net interest and dividend income during the three months ended June 30, 2013 and 2012 are summarized as follows:

		June 30,			June 30,
		2013			2012
Interest earned:
Fixed maturity investments	$	69,334		$	86,978
Short term investments and cash and cash equivalents		78			168
Dividends earned		45,231			57,624
Investment expenses		(31,859	)		(32,916	)
Net investment income	$	82,784		$	111,854

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Investments (Schedule Of Sales And Maturities Of Investments) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Investments [Abstract]
Total proceeds on sales of available-for-sale securities	$ 2,001,184	$ 229,632	$ 3,463,883	$ 1,513,832
Total proceeds from redemptions of fixed maturity investments		500,000		500,000
Total proceeds from maturities of fixed maturity investments	580,000		830,000	200,000
Gross gains on sales	1,067,045	104,357	1,908,901	777,639
Impairment losses		$ (101,422)	$ (81,154)	$ (165,611)

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Investments (Schedule Of Fixed Maturity And Equity Securities In An Unrealized Loss Position And Aggregate Fair Value And Gross Unrealized Loss By Length Of Time Security Has Continuously Been In An Unrealized Loss Position) (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total, Estimated Fair Value	$ 2,614,367	$ 705,610
Obligations Of States And Political Subdivisions [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Less than 12 months, Estimated Fair Value	2,614,367	660,084
Less than 12 months Unrealized Losses	(76,990)	(14,604)
Total, Estimated Fair Value	2,614,367	660,084
Total, Unrealized Losses	(76,990)	(14,604)
Total Fixed Maturity Investments [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Less than 12 months, Estimated Fair Value	2,614,367	660,084
Less than 12 months Unrealized Losses	(76,990)	(14,604)
Total, Estimated Fair Value	2,614,367	660,084
Total, Unrealized Losses	(76,990)	(14,604)
Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Less than 12 months, Estimated Fair Value		45,526
Less than 12 months Unrealized Losses		(2,836)
Total, Estimated Fair Value		45,526
Total, Unrealized Losses		(2,836)
Total Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Less than 12 months, Estimated Fair Value		45,526
Less than 12 months Unrealized Losses		(2,836)
Total, Estimated Fair Value		45,526
Total, Unrealized Losses		(2,836)
Investments [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Less than 12 months, Estimated Fair Value	2,614,367	705,610
Less than 12 months Unrealized Losses	(76,990)	(17,440)
Total, Estimated Fair Value	2,614,367	705,610
Total, Unrealized Losses	$ (76,990)	$ (17,440)

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Stock Compensation (Narrative) (Details)	6 Months Ended
	Jun. 30, 2013 employee	Dec. 31, 2012
Stock Compensation [Abstract]
Number of employees in plan	4
Phantom shares initially granted	75,018
Phantom shares granted from dividends declared	610
Outstanding - ending	79,927	80,074
Value payable, period after death or permanent disability, in days	60 days

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Investments (Schedule Of Major Categories Of Net Interest And Dividend Income) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Investments [Abstract]
Fixed maturity investments	$ 69,334	$ 86,978	$ 137,371	$ 174,355
Short term investments and cash and cash equivalents	78	168	230	325
Dividends earned	45,231	57,624	73,848	97,297
Investment expenses	31,859	32,916	(63,373)	(64,857)
Net investment income	$ 82,784	$ 111,854	$ 148,076	$ 207,120

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Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 01, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013
Entity Registrant Name	AMERINST INSURANCE GROUP LTD
Entity Central Index Key	0001065201
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		995,253

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Segment Information (Schedule Of Segment Reporting Information) (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 segment	Jun. 30, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Revenues	$ 1,908,634	$ 581,872	$ 3,368,066	$ 1,776,152
Total losses and expenses	1,778,421	1,283,407	3,116,883	2,395,299
Segment income (loss)	130,213	(701,535)	251,183	(619,147)
Identifiable assets	492,544	648,207	492,544	648,207	589,296
Number of operating segments			2
Reinsurance Segment [Member]
Segment Reporting Information [Line Items]
Revenues	1,610,223	391,129	2,765,968	1,370,328
Total losses and expenses	1,061,921	686,027	1,696,573	1,126,450
Segment income (loss)	548,302	(294,898)	1,069,395	243,878
Insurance Segment [Member]
Segment Reporting Information [Line Items]
Revenues	298,411	190,743	602,098	405,824
Total losses and expenses	716,500	597,380	1,420,310	1,268,849
Segment income (loss)	(418,089)	(406,637)	(818,212)	(863,025)
Identifiable assets	$ 492,544	$ 648,207	$ 492,544	$ 648,207