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 March 31, 2014.

¨ 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 May 1, 2014, 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 generate increased revenues and positive earnings in future periods;

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

• our ability to maintain our current A.M. Best financial rating strength of “A-” (Excellent) in light of A.M. Best’s downgrade of our outlook from “stable” to “negative”;

• subjection of our non-U.S. companies to regulation and/or taxation in the United States;

• 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;

• our ability to meet the performance goals and metrics set forth in our business plan without a significant depletion of our cash resources while maintaining sufficient capital levels;

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

• the effects of security breaches, cyber-attacks or computer viruses that may affect our computer systems or those of our customers;

• 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 successful 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.

2

Part I—FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, expressed in U.S. dollars)

	As of March 31, 2014			As of December  31, 2013
ASSETS
INVESTMENTS
Fixed maturity investments, available for sale, at fair value (amortized cost $8,175,206 and $8,186,861)	$	8,258,178		$	8,232,335
Equity securities, available for sale, at fair value (cost $6,947,954 and $6,648,142)		12,995,354			13,028,052
TOTAL INVESTMENTS		21,253,532			21,260,387
Cash and cash equivalents		2,172,789			2,333,806
Restricted cash and cash equivalents		232,765			151,414
Other invested assets		1,470,000			1,470,000
Assumed reinsurance balances receivable		781,490			468,438
Accrued investment income		80,378			70,881
Property and equipment		430,227			486,234
Deferred policy acquisition costs		570,954			402,607
Prepaid expenses and other assets		540,665			550,456
TOTAL ASSETS	$	27,532,800		$	27,194,223
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses	$	2,897,967		$	2,720,286
Unearned premium		1,543,118			1,088,126
Assumed reinsurance balances payable		353,209			101,809
Accrued expenses and other liabilities		1,482,003			1,779,595
TOTAL LIABILITIES	$	6,276,297		$	5,689,816
SHAREHOLDERS’ EQUITY
Common shares, $1 par value, 2014 and 2013: 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		15,717,120			15,670,012
Accumulated other comprehensive income		6,130,372			6,425,384
Shares held by Subsidiary (331,577 and 331,577 shares) at cost		(7,873,535	)		(7,873,535	)
TOTAL SHAREHOLDERS’ EQUITY		21,256,503			21,504,407
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	27,532,800		$	27,194,223

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

3

AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF

OPERATIONS, COMPREHENSIVE (LOSS) INCOME

AND RETAINED EARNINGS

(Unaudited, expressed in U.S. dollars)

	Three Months Ended March 31, 2014			Three Months Ended March 31, 2013
REVENUE
Net premiums earned	$	785,473		$	329,876
Commission income		499,126			303,562
Net investment income		64,690			65,292
Net realized gain on investments		796,735			760,702
TOTAL REVENUE		2,146,024			1,459,432
LOSSES AND EXPENSES
Losses and loss adjustment expenses		498,775			206,173
Policy acquisition costs		290,626			122,061
Operating and management expenses		1,143,597			1,010,228
TOTAL LOSSES AND EXPENSES		1,932,998			1,338,462
NET INCOME BEFORE TAX	$	213,026		$	120,970
Income tax expense		—			—
NET INCOME AFTER TAX	$	213,026		$	120,970
OTHER COMPREHENSIVE (LOSS) INCOME
Net unrealized holding gains arising during the period		501,723			1,224,631
Reclassification adjustment for gains included in net income		(796,735	)		(760,702	)
OTHER COMPREHENSIVE (LOSS) INCOME		(295,012	)		463,929
COMPREHENSIVE (LOSS) INCOME	$	(81,986	)	$	584,899
RETAINED EARNINGS, BEGINNING OF PERIOD	$	15,670,012		$	16,349,448
Net income		213,026			120,970
Dividends		(165,918	)		(168,854	)
RETAINED EARNINGS, END OF PERIOD		15,717,120			16,301,564
Per share amounts
Basic and diluted income per share	$	0.32		$	0.18
Dividends	$	0.25		$	0.25
Weighted average number of shares outstanding for the entire period		663,676			675,418

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

4

AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, expressed in U.S. dollars)

	Three Months Ended March 31, 2014			Three Months Ended March 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash used in Operating Activities	$	(410,673	)	$	(831,964	)
CASH FLOWS FROM INVESTING ACTIVITIES
Movement in restricted cash and cash equivalents		(81,351	)		212,973
Purchases of property and equipment		—			(3,132	)
Purchases of available-for-sale securities		(1,056,946	)		(1,086,822	)
Proceeds from sales of available-for-sale securities		1,553,871			1,462,699
Proceeds from maturities of fixed maturity investments		—			250,000
Net Cash provided by Investing Activities		415,574			835,718
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid		(165,918	)		(168,854	)
Net Cash used in Financing Activities		(165,918	)		(168,854	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(161,017	)		(165,100	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	2,333,806		$	1,034,485
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,172,789		$	869,385

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

5

AMERINST INSURANCE GROUP, LTD.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2014

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”). These financial statements 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 in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under U.S. GAAP 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, 2013 and notes thereto, included in AmerInst’s Annual Report on Form 10-K for the year then ended.

New Accounting Pronouncements

There were no recently issued accounting pronouncements that had a material impact on the Company’s financial statements or disclosures.

6

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 March 31, 2014 and December 31, 2013 are as follows:

	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of March 31, 2014
Fixed maturity investments:
U.S. government agency securities	$	447,338	$	1,168	$	—		$	448,506
Obligations of states and political subdivisions		7,408,720		124,742		(58,314	)		7,475,148
Corporate debt securities		319,148		15,376		—			334,524
Total fixed maturity investments		8,175,206		141,286		(58,314	)		8,258,178
Equity securities		5,947,954		5,388,569		(464	)		11,336,059
Hedge fund		1,000,000		659,295		—			1,659,295
Total equity securities		6,947,954		6,047,864		(464	)		12,995,354
Total investments	$	15,123,160	$	6,189,150	$	(58,778	)	$	21,253,532
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
As of December 31, 2013
Fixed maturity investments:
U.S. government agency securities	$	447,212	$	—	$	(695	)	$	446,517
Obligations of states and political subdivisions		7,418,912		116,530		(84,531	)		7,450,911
Corporate debt securities		320,737		14,170		—			334,907
Total fixed maturity investments		8,186,861		130,700		(85,226	)		8,232,335
Equity securities		5,648,142		5,748,310		—			11,396,452
Hedge fund		1,000,000		631,600		—			1,631,600
Total equity securities		6,648,142		6,379,910		—			13,028,052
Total investments	$	14,835,003	$	6,510,610	$	(85,226	)	$	21,260,387

7

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 March 31, 2014
Fixed maturity investments:
U.S. government agency securities	$	—	$	—		$	—	$	—		$	—	$	—
Obligations of states and political subdivisions		706,001		(24,418	)		1,654,110		(33,896	)		2,360,111		(58,314	)
Corporate debt securities		—		—			—		—			—		—
Total fixed maturity investments		706,001		(24,418	)		1,654,110		(33,896	)		2,360,111		(58,314	)
Equity securities		—		—			16,625		(464	)		16,625		(464	)
Hedge fund		—		—			—		—			—		—
Total equity securities		—		—			16,625		(464	)		16,625		(464	)
Total investments	$	706,001	$	(24,418	)	$	1,670,735	$	(34,360	)	$	2,376,736	$	(58,778	)
	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, 2013
Fixed maturity investments:
U.S. government agency securities	$	—	$	—		$	446,517	$	(695	)	$	446,517	$	(695	)
Obligations of states and political subdivisions		218,232		(12,689	)		2,504,591		(71,842	)		2,722,823		(84,531	)
Corporate debt securities		—		—			—		—			—		—
Total fixed maturity investments		218,232		(12,689	)		2,951,108		(72,537	)		3,169,340		(85,226	)
Equity securities		—		—			—		—			—		—
Hedge fund		—		—			—		—			—		—
Total equity securities		—		—			—		—			—		—
Total investments	$	218,232	$	(12,689	)	$	2,951,108	$	(72,537	)	$	3,169,340	$	(85,226	)

As of March 31, 2014 and December 31, 2013, there were eleven securities in an unrealized loss position with an estimated fair value of $2,376,736 and $3,169,340, respectively. As of March 31, 2014 and December 31, 2013, two and one of these securities had been in an unrealized loss position for 12 months or greater, respectively. As of March 31, 2014 and December 31, 2013, none of these securities were considered to be other-than-temporarily impaired. The Company has the intent to hold these securities 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 March 31, 2014 and December 31, 2013, 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.

8

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 March 31, 2014. 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 three months ended March 31, 2014, 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 March 31, 2014 and December 31, 2013, relating to nine and eleven fixed maturity securities and two and none equity securities, amounted to $58,778 and $85,226, respectively. The unrealized losses on these available for sale fixed maturity securities were not as a result of credit, collateral or structural issues. During the quarters ended March 31, 2014 and 2013, the Company recorded a total other-than-temporary impairment charge of $346 and $81,154, respectively, on one equity security, 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 inputs that are 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 March 31, 2014 and what level within the fair value hierarchy each valuation technique resides:

9

• 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 classified as Level 2 in the 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 classified as Level 2 in the 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 classified as Level 2 in the 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 classified as Level 1 in the 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 classified as Level 3 in the 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 undertake further analysis with respect to 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, 2013. Since the fair value of a security is an estimate of what a willing buyer would pay for such security if we sold it, we cannot 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 if we were 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 March 31, 2014 and December 31, 2013:

					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 March 31, 2014
U.S. government agency securities	$	448,506	$	448,506	$	—	$	448,506	$	—
Obligations of state and political subdivisions		7,475,148		7,475,148				7,475,148
Corporate debt securities		334,524		334,524				334,524
Total fixed maturity investments		8,258,178		8,258,178
Equity securities (excluding the hedge fund)		11,336,059		11,336,059		11,336,059
Hedge fund		1,659,295		1,659,295						1,659,295
Total equity securities		12,995,354		12,995,354
Total investments	$	21,253,532	$	21,253,532	$	11,336,059	$	8,258,178	$	1,659,295

10

					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, 2013
U.S. government agency securities	$	446,517	$	446,517	$	—	$	446,517	$	—
Obligations of state and political subdivisions		7,450,911		7,450,911				7,450,911
Corporate debt securities		334,907		334,907				334,907
Total fixed maturity investments		8,232,335		8,232,335
Equity securities (excluding the hedge fund)		11,396,452		11,396,452		11,396,452
Hedge fund		1,631,600		1,631,600						1,631,600
Total equity securities		13,028,052		13,028,052
Total investments	$	21,260,387	$	21,260,387	$	11,396,452	$	8,232,335	$	1,631,600

There were no transfers between Levels 1 and 2 during the three months ended March 31, 2014 and the year ended December 31, 2013.

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 March 31, 2014 and 2013:

	Hedge Fund Investment Three Months ended
	March 31, 2014		March 31, 2013
Balance classified as Level 3, beginning of period	$	1,631,600	$	1,485,151
Total gains or losses included in earnings		—		—
Change in fair value of hedge fund investment		27,695		38,284
Purchases		—		—
Sales		—		—
Transfers in and/or out of Level 3		—		—
Ending balance, end of period	$	1,659,295	$	1,523,435

There were no transfers into or from Level 3 during the three months ended March 31, 2014 and 2013.

The cost or amortized cost and estimated fair value of fixed maturity investments as of March 31, 2014 and December 31, 2013 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 March 31, 2014
Due in one year or less	$	1,757,112	$	1,778,099
Due after one year through five years		5,021,077		5,091,510
Due after five years through ten years		1,213,648		1,222,428
Due after ten years		183,369		166,141
Total	$	8,175,206	$	8,258,178
	Amortized Cost		Estimated Fair Value
As of December 31, 2013
Due in one year or less	$	1,759,042	$	1,791,377
Due after one year through five years		4,365,014		4,407,628
Due after five years through ten years		1,878,035		1,864,567
Due after ten years		184,770		168,763
Total	$	8,186,861	$	8,232,335

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Information on sales and maturities of investments during the three months ended March 31, 2014 and 2013 are as follows:

	March 31, 2014			March 31, 2013
Total proceeds on sales of available-for-sale securities	$	1,553,871		$	1,462,699
Proceeds from redemptions of fixed maturity investments		—			250,000
Gross gains on sales		797,081			841,856
Gross losses on sales		—			—
Impairment losses		(346	)		(81,154	)

Major categories of net investment income during the three months ended March 31, 2014 and 2013 are summarized as follows:

	March 31, 2014			March 31, 2013
Interest earned:
Fixed maturity investments	$	63,495		$	68,037
Short term investments and cash and cash equivalents		161			152
Dividends earned		32,996			28,617
Investment expenses		(31,962	)		(31,514	)
Net investment income	$	64,690		$	65,292

3. SEGMENT INFORMATION

AmerInst has two reportable segments: (1) reinsurance activity, which also includes investments and other activities, and (2) insurance activity, which offers professional liability solutions to professional service firms under the Agency Agreement with C&F, as defined in the “Overview” section below.

The tables below summarize the results of our reportable segments as of and for the three months ended March 31, 2014 and 2013.

	As of and for the Three Months Ended March 31,  2014
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,646,750	$	499,274		$	2,146,024
Total losses and expenses		1,137,061		795,937			1,932,998
Segment income (loss)		509,689		(296,663	)		213,026
Identifiable assets		—		430,227			430,227
	As of and for the Three Months Ended March 31,  2013
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,155,745	$	303,687		$	1,459,432
Total losses and expenses		634,652		703,810			1,338,462
Segment income (loss)		521,093		(400,123	)		120,970
Identifiable assets		—		543,307			543,307

4. STOCK COMPENSATION

AmerInst Professional Services, Limited (“APSL”), a subsidiary of AmerInst, has employment agreements with four key members of senior management, including one of our named executive officers, Kyle Nieman, the President of APSL, 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, subject to certain vesting requirements. The phantom shares are eligible for phantom dividends payable 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 March 31, 2014, 622 phantom shares were granted arising from the dividends declared on the Company’s common shares. 81,161 phantom shares were outstanding at March 31, 2014.

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For three of these employees, including Mr. Nieman, the phantom shares initially granted, as well as any additional shares granted from dividends declared, will vest on January 1, 2015. For the fourth employee, the phantom shares initially granted, as well as any additional shares granted from dividends declared, will vest on January 1, 2018. The liability payable to these employees 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 for three of these employees and January 1, 2018 for the fourth employee.

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 net 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 March 31, 2014.

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 2013 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 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 whollyowned subsidiary of AmerInst Mezco, Ltd. 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 reportable segments: (1) reinsurance activity, which includes investments and other activities, and (2) insurance activity, which offers professional liability solutions to professional service firms. The revenues of the reinsurance activity reportable segment and the insurance activity reportable segment were $1,646,750 and $499,274 for the three months ended March 31, 2014 compared to $1,155,745 and $303,687 for the three months ended March 31, 2013, respectively. The revenues for both reportable segments were derived from business operations in the United States other than interest income on bank accounts maintained in Bermuda.

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. The Agency Agreement automatically renewed on September 25, 2013.

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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 term of the Reinsurance Agreement is continuous and may be terminated by either party for any reason on or not less than 120 days’ prior written notice.

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.

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, 2014 and ending December 31, 2014. 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.

Mr. 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., Aurora Investment Management, LLC and Tower Wealth Managers, Inc. 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

Three months ended March 31, 2014 compared to three months ended March 31, 2013

We recorded a net income of $213,026 during the first quarter of 2014 compared to net income of $120,970 for the same period in 2013. The increase in net income was mainly attributable to the increase in commission income from $303,562 in the first quarter of 2013 to $499,126 in the first quarter of 2014 as a result of a higher volume of premiums written under the Agency Agreement, partially offset by the increase in operating and management expenses from $1,010,228 in the first quarter of 2013 to $1,143,597 in the first quarter 2014, as discussed in further detail below.

Our net premiums earned for the first quarter of 2014 were $785,473 compared to $329,876 for the first quarter of 2013, an increase of $455,597 or 138.1%. The net premiums earned during the quarters ended March 31, 2014 and 2013 were attributable to cessions from C&F under the Reinsurance Agreement. The increase in net premiums earned under the Reinsurance Agreement during the first quarter of 2014 compared to the same period in 2013 resulted from increased cessions from C&F in 2014, 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 March 31, 2014 and 2013, we recorded commission income under the Agency Agreement of $499,126 and $303,562, respectively, an increase of $195,564 or 64.4%. This increase resulted from a higher volume of premiums written under the Agency Agreement in 2014.

We recorded net investment income of $64,690 for the quarter ended March 31, 2014 compared to $65,292 for the quarter ended March 31, 2013. The slight decline in net investment income was 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 first quarter of 2014 compared to the same period in 2013. 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 1.0% for the quarter ended March 31, 2014, compared to the 1.1% yield earned for the quarter ended March 31, 2013.

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Sales of securities for the quarter ended March 31, 2014 resulted in realized gains on investments net of impairment of $796,735 compared to $760,702 during the quarter ended March 31, 2013, an increase of $36,033. The increase in realized gains primarily related to increased sales of equity securities in an unrealized gain position compared to 2013.

For the quarters ended March 31, 2014 and 2013, we recorded loss and loss adjustment expenses of $498,775 and $206,173, respectively, derived by multiplying our estimated loss ratio of 63.5% and 62.5%, respectively, and the net premiums earned under the Reinsurance Agreement of $785,473 and $329,876, respectively.

We recorded policy acquisition costs of $290,626 in the first quarter of 2014 compared to $122,061 for the same period in 2013. 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 first quarter of 2014 and 2013 were 37% of the net premiums earned under the Reinsurance Agreement of $785,473 and $329,876, respectively.

We incurred operating and management expenses of $1,143,597 in the first quarter 2014 compared to $1,010,228 for the same period in 2013, an increase of $133,369 or 13.2%. The increase was primarily attributable to increased salaries and related costs associated with APSL’s hiring of additional producer personnel after the first quarter of 2013.

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

	As of and for the Three Months Ended March 31,  2014
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,646,750	$	499,274		$	2,146,024
Total losses and expenses		1,137,061		795,937			1,932,998
Segment income (loss)		509,689		(296,663	)		213,026
Identifiable assets		—		430,227			430,227
	As of and for the Three Months Ended March 31,  2013
	Reinsurance Segment		Insurance Segment			Total
Revenues	$	1,155,745	$	303,687		$	1,459,432
Total losses and expenses		634,652		703,810			1,338,462
Segment income (loss)		521,093		(400,123	)		120,970
Identifiable assets		—		543,307			543,307

FINANCIAL CONDITION

As of March 31, 2014, our total investments were $21,253,532, a decrease of $6,855 from $21,260,387 at December 31, 2013. This was primarily due to the sales of certain equity securities in an unrealized gain position, partially offset by the increase in the fair value of certain equity securities as a result of favorable market conditions. The cash and cash equivalents balance decreased from $2,333,806 at December 31, 2013 to $2,172,789 at March 31, 2014, a decrease of $161,017 or 6.9%. 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 increased from $151,414 at December 31, 2013 to $232,765 at March 31, 2014, an increase of $81,351 or 53.7%. The increase is due to the timing of sales and maturities of investments held as restricted cash at March 31, 2014 that have not yet been reinvested. Other invested assets remained unchanged at $1,470,000 as of March 31, 2014 and December 31, 2013. The ratio of cash, total investments and other invested assets to total liabilities at March 31, 2014 was 4.00:1, compared to a ratio of 4.43:1 at December 31, 2013. The decrease in the ratio was attributable to an increase in unpaid losses and loss adjustment expenses and unearned premium assumed under the Reinsurance Agreement.

The assumed reinsurance balances receivable represents the current assumed premiums receivable less commissions payable to the fronting carriers. As of March 31, 2014, the balance was $781,490 compared to $468,438 as of December 31, 2013. 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 March 31, 2014, the balance was $353,209 compared to $101,809 as of December 31, 2013. This balance fluctuates due to the timing of reported losses under the policies we reinsure.

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Deferred policy acquisition costs, which represent the deferral of ceding commission expense related to premiums not yet earned, increased from $402,607 at December 31, 2013 to $570,954 at March 31, 2014. The increase in deferred policy acquisition costs in 2014 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%.

Prepaid expenses and other assets were $540,665 at March 31, 2014, a decrease of 1.8% from December 31, 2013. The balance primarily relates to (1) prepaid directors’ and officers’ liability insurance costs, (2) prepaid directors’ retainers, (3) prepaid professional fees and (4) premiums due to APSL under the Agency Agreement. The decrease in the balance was attributable to a decrease in premiums due to APSL under the Agency Agreement. This balance fluctuates due to the timing of the premium receipts by APSL.

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 $1,779,595 at December 31, 2013 to $1,482,003 at March 31, 2014, a decrease of $297,592 or 16.7%. The decrease in the balance was attributable to a decrease in premiums payable by APSL to C&F under the Agency Agreement. This balance fluctuates due to the timing of the premium payments to C&F.

LIQUIDITY AND CAPITAL RESOURCES

Our cash needs consist of settlement of losses and expenses under our reinsurance treaties and funding day-to-day operations. In continuing the 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 that may arise from time to time without resorting to borrowing, subject to Bermuda statutory limitations as discussed in our 2013 Form 10-K.

Total cash, investments and other invested assets decreased from $23,745,607 at December 31, 2013 to $23,659,086 at March 31, 2014, a decrease of $86,521 or .4%. The net decrease resulted primarily from net cash outflows to fund the operations of APSL and dividends of $165,918 paid during the first quarter of 2014. These cash outflows were partially offset by 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 $398,747.

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 three months ended March 31, 2014, no such transactions occurred. Through March 31, 2014, Investco had purchased 167,798 common shares from shareholders who had died or retired for a total purchase price of $4,708,680. From time to time, Investco has also purchased shares in privately negotiated transactions. Through March 31, 2014, 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 2014, which amounted to total ordinary cash dividends of $165,918. Since we began paying dividends in 1995, our original shareholders have received $20.12 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 9.4% 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 $32.03 per share as of March 31, 2014. 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.

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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, 2013 and is incorporated herein by reference.

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 HM GX, 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 March 31, 2014, 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 March 31, 2014, 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 2013 Annual Report on Form 10-K, as updated in our subsequent quarterly reports. The risks described in our 2013 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 or operating results.

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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

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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: May14, 2014	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)

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AMERINST INSURANCE GROUP, LTD.

INDEX TO EXHIBITS

Filed with the Quarterly Report on Form 10-Q for the Quarter Ended March 14, 2014

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

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