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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q/A



|x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
|- | ----------------------------------------------------------------------------------------



For the Quarterly period ended September 30, 2002.



| ̈ | 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                                                        |  | 98-020-7447                         
|(State or other jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)



|                                                                                                         |  |           
|-------------------------------------------------------------------------------------------------------- |  | ----------
|C/O USA Offshore Management, Windsor Place, 18 Queen Street, 2ndFloor, PO Box HM 1838, Hamilton, Bermuda |  | HMHX      
|(Address of Principal Executive Offices)                                                                 |  | (Zip Code)



Registrants
telephone number, including area code: (441) 296-3973



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 ̈



As of November 4, 2002 there were 307,711 shares of the Companys common shares, $1.00 par value per share, outstanding.



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AMERINST INSURANCE GROUP, LTD.



Quarterly Report on Form 10-Q

For the quarter ended September 30, 2002



TABLE OF CONTENTS



|                               |  |                                                                                       |  |     
|------------------------------ |  | ------------------------------------------------------------------------------------- |  | ----
|                               |  |                                                                                       |  | Page
|PART I  FINANCIAL INFORMATION |  |                                                                                      
|                               |  |                                                                                      
|Item 1.                        |  | Financial Statements                                                                  |  | 3-5 
|                               |  |                                                                                      
|Item 2.                        |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 6-8 
|                               |  |                                                                                      
|Item 3.                        |  | Quantitative and Qualitative Disclosure About Market Risk                             |  | 9   
|                               |  |                                                                                      
|Item 4.                        |  | Controls and Procedures                                                               |  | 10  
|                               | 
|PART II  OTHER INFORMATION    |  |                                                                                      
|                               |  |                                                                                      
|Item 1.                        |  | Legal Proceedings                                                                     |  | 10  
|                               |  |                                                                                      
|Item 2.                        |  | Changes in Securities and Use of Proceeds                                             |  | 10  
|                               |  |                                                                                      
|Item 3.                        |  | Defaults Upon Senior Securities                                                       |  | 10  
|                               |  |                                                                                      
|Item 4.                        |  | Submission of Matters to a Vote of Security Holders                                   |  | 10  
|                               |  |                                                                                      
|Item 5.                        |  | Other Information                                                                     |  | 10  
|                               |  |                                                                                      
|Item 6.                        |  | Exhibits and Reports on Form 8-K                                                      |  | 10  
|                               | 
|Signatures                     |  |                                                                                      
|                               | 
|Certifications                 |  |                                                                                      





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##### Table of Contents

Part I  FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------



AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS



|                                                                                                      |  |                          |            |   |                         |   |            |  
|----------------------------------------------------------------------------------------------------- |  | ------------------------ | ---------- | - | ----------------------- | - | ---------- | -
|                                                                                                      |  | As of September 30, 2002 |            |   | As of December 31, 2001 |  
|                                                                                                      |  | (Unaudited)              |            |   |                         |  
|ASSETS                                                                                                |  |                          |            |   |                         |   |            |  
|INVESTMENTS                                                                                           |  |                          |            |   |                         |   |            |  
|Fixed maturity investments, at market value (amortized Cost $30,827,892 and $28,529,843)              |  | $                        | 32,561,996 |   |                         | $ | 29,529,239 |  
|Equity securities, at market value (cost $14,498,479 And $13,972,736)                                 |  |                          | 13,154,476 |   |                         |   | 16,556,194 |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|TOTAL INVESTMENTS                                                                                     |  |                          | 45,716,472 |   |                         |   | 46,085,433 |  
|Cash and cash equivalents                                                                             |  |                          | 1,966,236  |   |                         |   | 2,855,781  |  
|Assumed reinsurance premiums receivable                                                               |  |                          | 1,030,423  |   |                         |   | 1,145,874  |  
|Reinsurance balances recoverable                                                                      |  |                          | 674,223    |   |                         |   | 674,223    |  
|Fund deposit with a reinsurer                                                                         |  |                          | 108,000    |   |                         |   | 108,000    |  
|Accrued investment income                                                                             |  |                          | 413,625    |   |                         |   | 448,786    |  
|Deferred policy acquisition costs                                                                     |  |                          | 926,735    |   |                         |   | 891,311    |  
|Federal income taxes receivable                                                                       |  |                          | 0          |   |                         |   | 504,658    |  
|Prepaid expenses and other assets                                                                     |  |                          | 158,047    |   |                         |   | 130,427    |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|TOTAL ASSETS                                                                                          |  | $                        | 50,993,761 |   |                         | $ | 52,844,493 |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                  |  |                          |            |   |                         |   |            |  
|LIABILITIES                                                                                           |  |                          |            |   |                         |   |            |  
|Unpaid losses and loss adjustment expenses                                                            |  | $                        | 30,551,561 |   |                         | $ | 29,242,625 |  
|Unearned premiums                                                                                     |  |                          | 3,251,701  |   |                         |   | 3,127,409  |  
|Reinsurance balances payable                                                                          |  |                          | 174,833    |   |                         |   | 174,833    |  
|Accrued expenses and other liabilities                                                                |  |                          | 585,584    |   |                         |   | 572,407    |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|TOTAL LIABILITIES                                                                                     |  |                          | 34,563,679 |   |                         |   | 33,117,274 |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|STOCKHOLDERS EQUITY                                                                                  |  |                          |            |   |                         |   |            |  
|Common shares, $1 par value, 500,000 shares authorized, 2003 and 2002: 331,751 issued and outstanding |  |                          | 331,751    |   |                         |   | 331,751    |  
|Additional paid-in capital                                                                            |  |                          | 6,801,870  |   |                         |   | 6,801,870  |  
|Retained earnings                                                                                     |  |                          | 9,855,434  |   |                         |   | 9,747,981  |  
|Accumulated other comprehensive income                                                                |  |                          | 321,363    |   |                         |   | 3,582,854  |  
|Treasury Stock (23,961 and 20,388 shares) at cost                                                     |  |                          | (880,336   | ) |                         |   | (737,237   | )
|                                                                                                      |  |                          |            |   |                         |   |            |  
|TOTAL STOCKHOLDERS EQUITY                                                                            |  |                          | 16,430,082 |   |                         |   | 19,727,219 |  
|                                                                                                      |  |                          |            |   |                         |   |            |  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                            |  | $                        | 50,993,761 |   |                         | $ | 52,844,493 |  
|                                                                                                      |  |                          |            |   |                         |   |            |  



See the accompanying
notes to the condensed consolidated financial statements.





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AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF

OPERATIONS, COMPREHENSIVE INCOME

AND RETAINED EARNINGS

(Unaudited)



|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|----------------------------------------------------------------------- |  | -------------------------------- | ---------- | - | ------------------------------- | - | --------- | --------------------------------- |  | - | --------------------------------- | - |  | - | --------- | -
|                                                                        |  | Nine Months Ended Sept. 30, 2002 |            |   | Nine MonthsEnded Sept. 30, 2001 |   |           | Three Months Ended Sept. 30, 2002 |  |   | Three Months Ended Sept. 30, 2001 |  
|REVENUE                                                                 |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Net premiums earned                                                     |  | $                                | 4,680,080  |   |                                 | $ | 4,756,478 |                                   |  | $ | 1,382,612                         |   |  | $ | 1,600,860 |  
|Net investment income                                                   |  |                                  | 1,533,858  |   |                                 |   | 1,702,203 |                                   |  |   | 599,778                           |   |  |   | 485,599   |  
|Net realized capital gain (loss)                                        |  |                                  | 752,808    |   |                                 |   | 367,480   |                                   |  |   | (129,060                          | ) |  |   | 118,211   |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Total revenue                                                           |  |                                  | 6,966,746  |   |                                 |   | 6,826,161 |                                   |  |   | 1,853,330                         |   |  |   | 2,204,670 |  
|LOSSES AND EXPENSES                                                     |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Losses and loss adjustment expense                                      |  |                                  | 4,212,236  |   |                                 |   | 4,667,550 |                                   |  |   | 1,244,351                         |   |  |   | 1,518,407 |  
|Policy acquisition costs                                                |  |                                  | 1,381,868  |   |                                 |   | 1,402,714 |                                   |  |   | 413,268                           |   |  |   | 473,937   |  
|Operating and management expenses                                       |  |                                  | 661,300    |   |                                 |   | 630,394   |                                   |  |   | 213,583                           |   |  |   | 114,567   |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Total losses and expenses                                               |  |                                  | 6,255,404  |   |                                 |   | 6,700,658 |                                   |  |   | 1,871,202                         |   |  |   | 2,106,911 |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|NET INCOME (LOSS)                                                       |  | $                                | 711,342    |   |                                 | $ | 125,503   |                                   |  | $ | (17,872                           | ) |  | $ | 97,759    |  
|OTHER COMPREHENSIVE INCOME (LOSS)                                       |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Net unrealized holding gains (losses) arising during the period         |  |                                  | (2,508,683 | ) |                                 |   | 444,935   |                                   |  |   | (1,962,376                        | ) |  |   | 1,126,298 |  
|Reclassification adjustment for gains and losses included in net income |  |                                  | (752,808   | ) |                                 |   | (367,480  | )                                 |  |   | 129,060                           |   |  |   | (118,211  | )
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|OTHER COMPREHENSIVE INCOME (LOSS)                                       |  |                                  | (3,261,491 | ) |                                 |   | 77,455    |                                   |  |   | (1,833,316                        | ) |  |   | 1,008,087 |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|COMPREHENSIVE INCOME (LOSS)                                             |  | $                                | (2,550,149 | ) |                                 | $ | 202,958   |                                   |  | $ | (1,851,188                        | ) |  | $ | 1,105,846 |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|RETAINED EARNINGS, BEGINNING OF PERIOD                                  |  | $                                | 9,747,981  |   |                                 | $ | 9,818,445 |                                   |  | $ | 10,073,486                        |   |  | $ | 9,432,012 |  
|Net income (loss)                                                       |  |                                  | 711,342    |   |                                 |   | 125,503   |                                   |  |   | (17,872                           | ) |  |   | 97,759    |  
|Dividends paid                                                          |  |                                  | (603,889   | ) |                                 |   | (619,051  | )                                 |  |   | (200,180                          | ) |  |   | (204,874  | )
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|RETAINED EARNINGS, END OF PERIOD                                        |  | $                                | 9,855,434  |   |                                 | $ | 9,324,897 |                                   |  | $ | 9,855,434                         |   |  | $ | 9,324,897 |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Per share amounts                                                       |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Net income(loss)                                                        |  | $                                | 2.30       |   |                                 | $ | 0.39      |                                   |  | $ | (0.06                             | ) |  | $ | 0.31      |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Dividends paid                                                          |  | $                                | 1.95       |   |                                 | $ | 1.95      |                                   |  | $ | 0.65                              |   |  | $ | 0.65      |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  
|Weighted average number of shares outstanding for the entire period     |  |                                  | 309,577    |   |                                 |   | 317,993   |                                   |  |   | 308,735                           |   |  |   | 315,105   |  
|                                                                        |  |                                  |            |   |                                 |   |           |                                   |  |   |                                   |   |  |   |           |  



See the accompanying
notes to the condensed consolidated financial statements.





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AMERINST INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                    |  |                                |             |   |                                |   |             |  
|--------------------------------------------------- |  | ------------------------------ | ----------- | - | ------------------------------ | - | ----------- | -
|                                                    |  | Nine MonthsEndedSept. 30, 2002 |             |   | Nine MonthsEndedSept. 30, 2001 |  
|OPERATING ACTIVITIES                                |  |                                |             |   |                                |   |             |  
|Net Cash Provided by Operating Activities           |  | $                              | 1,850,482   |   |                                | $ | (367,559    | )
|                                                    |  |                                |             |   |                                |   |             |  
|INVESTING ACTIVITIES                                |  |                                |             |   |                                |   |             |  
|Purchases of investments                            |  |                                | (25,529,267 | ) |                                |   | (11,602,618 | )
|Proceeds from sales and maturities of investments   |  |                                | 23,536,228  |   |                                |   | 11,867,264  |  
|                                                    |  |                                |             |   |                                |   |             |  
|Net Cash Provided by (Used in) Investing Activities |  |                                | (1,993,039  | ) |                                |   | 264,646     |  
|                                                    |  |                                |             |   |                                |   |             |  
|FINANCING ACTIVITIES                                |  |                                |             |   |                                |   |             |  
|Purchase of treasury shares                         |  |                                | (143,099    | ) |                                |   | (78,896     | )
|Dividends paid                                      |  |                                | (603,889    | ) |                                |   | (619,051    | )
|                                                    |  |                                |             |   |                                |   |             |  
|Net Cash Provided by (Used in) Financing Activities |  |                                | (746,988    | ) |                                |   | (697,947    | )
|                                                    |  |                                |             |   |                                |   |             |  
|DECREASE IN CASH                                    |  | $                              | (889,545    | ) |                                | $ | (800,860    | )
|                                                    |  |                                |             |   |                                |   |             |  



See the accompanying
notes to the condensed consolidated financial statements.





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AMERINST INSURANCE GROUP, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

September 30, 2002



Basis of Presentation



The condensed consolidated financial statements included herein have been prepared by AmerInst Insurance Group, Ltd. (AMIG Ltd.) without
audit, pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of the results of
operations for the periods shown. 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. It is suggested that these
condensed statements be read in conjunction with the consolidated financial statements at and for the year ended December 31, 2002 and notes thereto, included in the Registrants annual report as of that date.



Part I,



|Item 2 | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------ | -------------------------------------------------------------------------------------



OPERATIONS



Three months ended September 30, 2002 compared to three months ended September 30, 2001:



A net loss of $(17,872) was recorded for the third quarter of 2002 in comparison to a net income of $97,759 for the same period of 2001. The
decline in the results is primarily due to a decrease in the net realized capital gain (loss) for the period in comparison to the same period in 2001. Earned premiums for the third quarter of 2002 amounted to $1,382,612 as compared to $1,600,860 for
the third quarter of 2001, a decrease of $218,248 or 13.6%. Premiums written for the three months ended September 30, 2002 were $1,922,290, as compared to $1,769,244 for the third quarter of 2001, an increase of $153,046 or 8.7%.



The loss ratio for the third quarter of 2002 was 90.0% for the current treaty, as compared to
94.8% for the same period of 2001. The loss ratio of 90.0% represents managements current estimated effective loss rate selected in consultation with the Companys independent consulting actuary to apply to current premiums assumed and
earned. The Companys overall loss ratio for the year ended December 31, 2001 was 94.7%.





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AMERINST INSURANCE GROUP, LTD.



OPERATIONS(Continued)



Policy acquisition costs of $413,268 were expensed in the third quarter of 2002 as compared to $473,937 for the same period of 2001, a decrease of $60,669 or 12.8%. Such
costs as a percentage of premiums earned are 29.9% and 29.6% for the quarters ended September 30, 2002 and 2001, respectively. Policy acquisition costs result from ceding commissions paid to ceding companies determined contractually pursuant to
reinsurance agreements and federal excise taxes paid on premiums written to ceding companies.



These fluctuations in premiums, losses and policy acquisition costs combined to result in a net underwriting loss of $(488,590) for the third quarter of 2002 as compared to $(506,051) for the same period of 2001, an
improvement of $17,461 or 3.5%. The improvement is due to a decrease in the recorded losses.



Investment yield for the third quarter of 2002 was 1.2%, consisting of interest and dividend income, and represents a decrease from the 4.1% return earned in the third quarter of 2001. Sales of securities during the
second quarter of 2002 resulted in realized capital losses of $129,060, as compared to gains of $118,211 in the third quarter of 2001. Losses recorded in the third quarter of 2002 primarily related to sales of equities. Proceeds from these sales
were subsequently reinvested in other equity securities.



Nine months ended
September 30, 2002 compared to nine months ended September 30, 2001:



Net
income of $711,342 was recorded for the nine months ended September 30, 2002 in comparison to a net income of $125,503 for the nine months ended September 30, 2001. The improved results are primarily due to a decrease of incurred losses.



Sales of securities during the nine months ended September 30, 2002 resulted in realized
capital gains of $752,808 as compared to $367,480 in the same period of 2001. Gains recorded in 2002 primarily related to sales of equities, which were reinvested in other equity securities. Net investment income through September 30, 2002 was
$1,533,858 compared to $1,702,203 for the same period of 2001. Investment yield for the nine months period was approximately 4.3% as compared to 4.8% for the first nine months of 2001.



Earned premiums for the first nine months of 2002 amounted to $4,680,080 as compared to $4,756,478 for 2001. The change of $76,398
represents a 1.6% decrease. The decrease in earned premiums is attributable to the timing of policies written under the current treaty compared to the same period in 2001. Premiums written in the nine months ended September 30, 2002 were $4,804,372
as compared to $4,711,792 for the same period in 2001. The increase of $92,580 is due to the continued growth of the AICPA Professional Liability Insurance Plan (AICPA Plan), an increase in the number of insureds under the AICPA Plan,
and certain rate increases associated with a step plan that was initiated during 1995. Under the step plan, insureds are offered discounted premium rates for favorable loss experience. However, as these insureds experience losses their
premiums are stepped up accordingly. Because of the use of claims-made policies, as the number of years of coverage provided increases, CNAs (and AIGs) exposure increases. This additional exposure results in an increase in
premiums charged.



The loss ratio through the first nine months of 2002 was
90.0% as compared to 98.1% for the same period of 2001. The loss ratio of 90.0% represents managements current estimated effective loss ratio selected in consultation with the Companys independent consulting actuary to apply to current
premiums assumed and earned.





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AMERINST INSURANCE GROUP, LTD.



OPERATIONS(Continued)



Losses recorded through September 30, 2002 do not reflect any development of prior year reserves. The Companys actuary provides a range for loss reserves at
December 31 each year. At December 31, 2001 the Companys management determined that the reserve should be $29,242,625. This amount is within, and at the upper end of the range provided by the actuary. Due to the inherent uncertainty in
reserving for accountants professional liability claims management believes this is an appropriate reserving policy. It should be noted that any reserve amount selected in the range has a direct effect on the net income of any given year, as
well as shareholders equity and the book value per share of the Company. Management will review the actuarys report at December 31, 2002 and select a reserve amount based on the recommendations of the actuary and the maturity of the
related loss reserves.



Policy acquisition costs of $1,381,868 were expensed in
the first nine months of 2002 as compared to $1,402,714 for the same period of 2001, a decrease of 1.5%. Such costs as a percentage of premiums earned are 29.5% and 29.5% for the nine-month periods ended September 30, 2002 and 2001, respectively.
Policy acquisition costs result from ceding commissions paid to ceding companies which are determined contractually pursuant to reinsurance agreements and federal excise taxes paid on premiums written to ceding companies. These fluctuations combined
to result in a net underwriting loss of $(1,575,324) for the nine month period as compared to $(1,944,180) for the same period in 2001, an improvement of $368,856 or 19.0%. The more favorable underwriting results in 2002 are due to the loss ratio of
90.0% in 2002, compared to 98.1% in 2001.



FINANCIAL CONDITION AND LIQUIDITY



As of September 30, 2002, total invested assets (total investments plus
cash and cash equivalents) amounted to $47,682,708, a decrease of $1,258,506 or 2.6% from $48,941,214 at December 31, 2001. Cash and cash equivalents balances decreased from $2,855,781 at December 31, 2001 to $1,966,236 at September 30, 2002, a
decrease of $889,545, or 31.1%. 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 mutual funds. The ratio of cash and invested assets to total
liabilities at September 30, 2002 was 1.38:1, compared to a ratio of 1.48:1 at September 30, 2001.



Assumed reinsurance premiums receivable represents current assumed premiums receivable less commissions payable to the fronting carriers. This balance was $1,145,874 at December 31, 2001 and $1,030,423 at September
30, 2002. This balance fluctuates due to the timing of renewal premiums written. Reinsurance balances payable represents AMIG Ltd.s estimate of the premiums due to the Companys reinsurer under the retrocession agreements described above,
and amounts currently due for losses and loss adjustment expenses payable. At December 31, 2001 and at September 30, 2002 the balance was $174,833.



On June 1, 2000, the Board of Directors of Investco, which holds almost all of the Companys investment portfolio, authorized Investco to spend up to $1 million to
purchase outstanding Common Shares of the Company. On September 8, 2000, the Bermuda Monetary Authority authorized the purchase of up to 15,000 Common Shares pursuant to the June 1 Board authorization. Such purchases are effected through privately
negotiated transactions and are in addition to Investcos practice of redeeming the shares of individuals who have died or retired from the practice of public accounting. Subsequently, on July 19, 2002, the Bermuda Monetary Authority authorized
blanket permission for Investco to purchase Common Shares from individuals who have died or retired from the practice of public account and on a negotiated case-by-case basis without limit. Through November 4, 2003, Investco had purchased 13,281
Common Shares for a purchase price of $411,353. In addition, through that date Investco had purchased 10,759 Common Shares from individuals who had died or retired for a purchase price of $471,6925. The Company paid its twenty-ninth consecutive
quarterly dividend of $0.65 per share during the third quarter of 2002.





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##### Table of Contents

AMERINST INSURANCE GROUP, LTD.



|Item  3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|-------- | ----------------------------------------------------------



INFLATION



The Company does not believe its operations have been materially affected by inflation. The potential adverse impacts of inflation include: (a) a decline in the market value of the Companys fixed maturity
investment portfolio; (b) an increase in the ultimate cost of settling claims which remain unresolved for a significant period of time; and (c) an increase in the Companys operating expenses. However, the Company generally holds its fixed
maturity investments to maturity and currently believes that the yield is adequate to compensate the Company for the risk of inflation. In addition, the Company expects that any increase from inflation in the ultimate cost of settling unpaid claims
will be offset by investment income earned during the period that the claim is outstanding. Finally, the increase in operating expenses resulting from inflation should generally be matched by similar inflationary increases in the premium rates.



Market Sensitive Instruments



Market risk generally represents the risk of loss that may result from potential change in
the value of a financial instrument due to a variety of market conditions. The Companys exposure to market risk is generally limited to potential losses arising from changes in the level of interest rates on market values of fixed term
holdings and changes in the market values of equity securities. The Company does not hold or issue derivative financial instruments for either trading or hedging purposes.



| | a) | Interest Rate Risk.
| | -- | -------------------



Interest rate risk results from the Companys holdings in interest-rate-sensitive instruments. The Company is exposed to potential losses arising
from changes in the level of interest rates on fixed rate instruments held. The Company is also exposed to credit spread risk resulting from possible changes in the issuers credit rating. To manage its exposure to interest rate risk the
Company attempts to select investments with characteristics that match the characteristics of the related insurance liabilities. Additionally, the Company generally only invests in higher-grade interest bearing instruments.



| | b) | Foreign Exchange Risk.
| | -- | ----------------------



The Company only invests in U.S. dollar denominated financial instruments and does not believe it has any exposure to foreign exchange risk.



| | c) | Equity Price Risk
| | -- | -----------------



Equity price risk arises from fluctuations in the value of securities held. The Company invests in equity securities in order to diversify its investment
portfolio, which Management believes will assist the Company to achieve its goal of long-term growth of capital and surplus. Management has adopted investment guidelines that set out rate of return and asset allocation targets, as well as degree of
risk and equity investment restrictions to minimize exposure to material risk from changes in equity prices.



The tables below provide information about the Companys available for sale investments that are sensitive to change in interest rates at June 30, 2003 and December 31, 2002 respectively.



|                                                                                        |  |                               |            |                               |   |           
|--------------------------------------------------------------------------------------- |  | ----------------------------- | ---------- | ----------------------------- | - | ----------
|                                                                                        |  | EstimatedFair Value09/30/2002 |            | EstimatedFair Value12/31/2001
|Fixed Income Portfolio                                                                  |  |                               |            |                               |   |           
|Due in 1 year or less                                                                   |  | $                             | 1,000,000  |                               | $ | 2,034,652 
|Due after 1 year through 5 years                                                        |  |                               | 5,005,402  |                               |   | 3,724,912 
|Due after 5 years through 10 years                                                      |  |                               | 2,871,121  |                               |   | 4,435,397 
|Due after ten years                                                                     |  |                               | 1,282,050  |                               |   | 1,419,268 
|                                                                                        |  |                               |            |                               |   |           
|Sub-total                                                                               |  | $                             | 10,158,573 |                               | $ | 11,614,229
|Mortgage backed securities and Obligations of U.S. government Corporations and agencies |  | $                             | 22,403,423 |                               | $ | 17,915,010
|                                                                                        |  |                               |            |                               |   |           
|Total Fixed-Income                                                                      |  | $                             | 32,561,996 |                               | $ | 29,529,239
|                                                                                        |  |                               |            |                               |   |           
|Total Equities                                                                          |  | $                             | 13,154,476 |                               | $ | 16,556,194
|                                                                                        |  |                               |            |                               |   |           





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##### Table of Contents

AMERINST INSURANCE GROUP, LTD.



|Item  4. | CONTROLS AND PROCEDURES
|-------- | -----------------------



Within 90 days prior to the filing date of this report, the Company carried out an evaluation, under the supervision and with the participation of the Companys
management, including the Companys Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures pursuant to Exchange Act Rule 13a-14 under
the Securities Exchange Act of 1934, as amended. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Companys disclosure controls and procedures are effective in ensuring that all material
information required to be filed in this quarterly report has been made known to them in a timely fashion. There have been no significant changes in the Companys internal controls or in other factors that could significantly affect these
internal controls subsequent to the date of the Companys last evaluation.



Part II.  OTHER INFORMATION



|Item  1. | Legal Proceedings
|-------- | -----------------



The Company is not a party to any material legal proceedings.



|Item  2. | Changes in Securities and Use of Proceeds.
|-------- | ------------------------------------------



Not applicable.



|Item  3. | Defaults Upon Senior Securities
|-------- | -------------------------------



Not applicable.



|Item  4. | Submission of Matters to a Vote of Security Holders
|-------- | ---------------------------------------------------



No matters were submitted to a vote of the Companys security holders during the quarter ended September 30, 2002.



|Item  5. | Other Information.
|-------- | ------------------



Not applicable.



|Item  6. | Exhibits and Reports on Form 8-K
|-------- | --------------------------------



| | (a) | Exhibits
| | --- | --------



See Index to Exhibits immediately following the signature page.



| | (b) | Reports on Form 8-K
| | --- | -------------------



No reports on Form 8-K were filed during the quarter ended September 30, 2002.





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##### Table of Contents

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: February 3, 2004 |  |  |  | AMERINST INSURANCE GROUP, LTD.
|                        |  |  |  | (Registrant)                  
|                        |  |  |  |                               
|                        |  |  |  |                                |  | By:     |  | /s/    STUART H. GRAYSTON                                                                                                                    
|                        |  |  |  |                                |  |         |  |                                                                                                                                              
|                        |  |  |  |                                |  |         |  | Stuart H. Grayston(President and Chief Executive Officer,duly authorized to sign this Report in suchcapacity and on behalf of the
Registrant)
|                        |  |  |  |                               
|                        |  |  |  |                                |  | And By: |  | /s/    MURRAY NICOL                                                                                                                          
|                        |  |  |  |                                |  |         |  |                                                                                                                                              
|                        |  |  |  |                                |  |         |  | Murray Nicol(Vice President and Chief FinancialOfficer, duly authorized tosign this Report in such capacityand on behalf of the
Registrant)  





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##### Table of Contents



AMERINST INSURANCE GROUP, LTD.

INDEX TO EXHIBITS



Quarterly Period Ended September 30, 2002



|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|              | 
|3(i)          |  | Memorandum of Association of the Company(1)                                                                                                                                                                                                                                                                                                                                                                                                                        
|              | 
|3(ii)         |  | Bye-laws of the Company(1)                                                                                                                                                                                                                                                                                                                                                                                                                                         
|              | 
|4.1           |  | Section 47 of the Companys Bye-laws  included in Exhibit 3(ii) above                                                                                                                                                                                                                                                                                                                                                                                             
|              | 
|4.2           |  | Statement of Share Ownership Policy, as Amended(9)                                                                                                                                                                                                                                                                                                                                                                                                                 
|              | 
|10.1          |  | Reinsurance Treaty between AIIC and Virginia Surety Company, Inc.(2)                                                                                                                                                                                                                                                                                                                                                                                               
|              | 
|10.2          |  | Agreement between Country Club Bank and AIIC(2)                                                                                                                                                                                                                                                                                                                                                                                                                    
|              | 
|10.3          |  | Agreement between Country Club Bank and AIIG(2)                                                                                                                                                                                                                                                                                                                                                                                                                    
|              | 
|10.4          |  | Reinsurance Treaty between AIIC and CNA Insurance Companies(3), 1994 placement slip(4), 1995 placement slip(5), 1996 placement slip(6), 1997 placement slip(9), and 1998 placement slip(10)and Endorsement No. 1 to the Treaty effective July 1, 1999(11)                                                                                                                                                                                                          
|              | 
|10.5          |  | Revised Management Agreement between Vermont Insurance Management, Inc. and AIIC dated May 1, 1997(7), Addenda to Management Agreement dated July 1, 1997(8), Addenda to
Management Agreement dated July 1, 1998(10), Management Agreement between USA Offshore Management, Ltd. and
AmerInst Insurance Company Ltd. dated as of December 2, 1999(12)and Addenda to Agreement between AmerInst
Insurance Company Ltd. and USA Offshore Ltd. dated June 2, 2000(12).
|              | 
|10.6          |  | Escrow Agreement among AIIC, United States Fire Insurance Company and Harris Trust and Savings Bank dated March 7, 1995(5)                                                                                                                                                                                                                                                                                                                                         
|              | 
|10.7          |  | Security Trust Agreement among AIIC, Harris Trust and Savings Bank and Virginia Surety Company, Inc. dated March 9, 1995(5)                                                                                                                                                                                                                                                                                                                                        
|              | 
|10.8          |  | Investment Advisory Agreement For Discretionary Accounts between AmerInst Insurance Company and Harris Associates L.P. dated as of January 22, 1996, as amended by the Amendment to Investment
Advisory Agreement for Discretionary Accounts dated as of April 2, 1996(10)                                                                                                                                                                                         
|              | 
|10.9          |  | Exchange Agreement between the Company the AIG Ltd., dated as of January 20, 1999(1)                                                                                                                                                                                                                                                                                                                                                                               
|              | 
|10.10         |  | Reinsurance Treaty between AMIC Ltd. and CNA Insurance Companies, effective December 1, 1999(11)                                                                                                                                                                                                                                                                                                                                                                   
|              | 
|10.11         |  | Value Plan Reinsurance Treaty between AMIC Ltd. and CNA Insurance Companies, effective December 1, 1999(11)                                                                                                                                                                                                                                                                                                                                                        
|              | 
|10.12         |  | Trust Agreement among AMIC Ltd., Continental Casualty Company and Chase Manhattan Bank dated as of December 21, 2000(13)                                                                                                                                                                                                                                                                                                                                           
|              | 
|10.13         |  | Investment Counsel Agreement between AMIC Ltd. and Northeast Investment Management, Inc. dated August 1, 2000(13)                                                                                                                                                                                                                                                                                                                                                  
|              | 
|10.14         |  | Registrar and Transfer Agent Agreement between AMIC Ltd. and Butterfield Corporate Services Limited dated as of January 1, 2001(14)                                                                                                                                                                                                                                                                                                                                
|              | 
|10.15         |  | Reinsurance Treaty between AMIC Ltd. and CNA Insurance Companies, effective January 1, 2002(15)                                                                                                                                                                                                                                                                                                                                                                    
|              | 
|10.16         |  | Value Plan Reinsurance Treaty between AMIC Ltd. and CNA Insurance Companies, effective January 1, 2002(15)                                                                                                                                                                                                                                                                                                                                                         
|              | 
|21            |  | Subsidiaries of the Registrant(1)                                                                                                                                                                                                                                                                                                                                                                                                                                  
|              | 
|31.1          |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                           
|              | 
|31.2          |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                           
|              | 
|32.1          |  | Certification of Stuart Grayston pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                              
|              | 
|32.2          |  | Certification of Murray Nicol pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                 

---

|(1) | Filed with the Companys Registration Statement on Form S-4, Registration No. 333-64929 and incorporated herein by reference.
|--- | -----------------------------------------------------------------------------------------------------------------------------





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##### Table of Contents

|(2) | Filed with the AIIGs Annual Report on Form 10-K for the year ended December 31, 1992
and incorporated herein by reference.
|--- | ---------------------------------------------------------------------------------------------------------------------------



|(3) | Filed with the AIIGs Annual Report on Form 10-K for the year ended December 31, 1993
and incorporated herein by reference.
|--- | ---------------------------------------------------------------------------------------------------------------------------



|(4) | Filed with the AIIGs Annual Report on Form 10-K for the year ended December 31, 1994
and incorporated herein by reference.
|--- | ---------------------------------------------------------------------------------------------------------------------------



|(5) | Filed with the AIIGs Quarterly Report on Form 10-Q for the quarter ended September 30, 1995 and incorporated herein by reference.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|(6) | Filed with the AIIGs Quarterly Report on Form 10-Q for the quarter ended September 30, 1996 and incorporated herein by reference.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|(7) | Filed with the AIIGs Quarterly Report on Form 10-Q for the quarter ended June 30, 1997 and incorporated herein by reference.
|--- | -----------------------------------------------------------------------------------------------------------------------------



|(8) | Filed with the AIIGs Quarterly Report on Form 10-Q for the quarter ended September 30, 1997 and incorporated herein by reference.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|(9) | Filed with AIIGs Annual Report on Form 10-K for the year ended December 31, 1996 and incorporated herein by reference.
|--- | -----------------------------------------------------------------------------------------------------------------------



|(10) | Filed with AIIGs Quarterly Report on Form 10-Q for the quarter ended September 30, 1998 and incorporated herein by reference.
|---- | ------------------------------------------------------------------------------------------------------------------------------



|(11) | Filed with the Companys Annual Report on Form 10-K for the year ended December 31, 1999.
|---- | -----------------------------------------------------------------------------------------



|(12) | Filed with AIIGs Quarterly Report on Form 10-Q for the quarter ended June 30, 2000 and incorporated herein by reference.
|---- | -------------------------------------------------------------------------------------------------------------------------



|(13) | Filed with the Companys Annual Report on Form 10-K for the year ended December 31, 2000 and incorporated herein by reference.
|---- | ------------------------------------------------------------------------------------------------------------------------------



|(14) | Filed with the Companys Annual Report on Form 10-K for the year ended December 31, 2001.
|---- | -----------------------------------------------------------------------------------------



|(15) | Filed with the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 and incorporated herein by reference.
|---- | ---------------------------------------------------------------------------------------------------------------------------------