Investments (Tables)

6 Months Ended

Jun. 30, 2017

Investments Tables

Investment income

A summary of investment income, net of investment expenses, and net realized gains and losses is as follows:

	Three Months Ended June 30					Six Months Ended June 30
	2017			2016		2017			2016
Fixed maturities	$	245,331		$	180,828	$	423,764		$	358,665
Short-term investments		43,977			31,622		77,779			65,876
Gross investment income		289,308			212,450		501,543			424,541
Less investment expenses		(25,250	)		—		(25,250	)		—
Net investment income		264,058			212,450		476,293			424,541
Net realized gains (losses)		155			—		155			(1,278	)
Net investment income, realized gains and losses	$	264,213		$	212,450	$	476,448		$	423,263

Available for sale investments

The amortized cost and estimated fair values of investments in fixed maturities by category are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2017
Available for sale:
Fixed maturities
Certificates of deposit	$	45,162,000	$	—	$	—		$	45,162,000
U.S. treasury securities		11,604,622		680		(4,270	)		11,601,032
Corporate securities		15,913,043		31,057		(2,078	)		15,942,022
Agency mortgage-backed securities		11,198,332		2,021		(31,283	)		11,169,070
Total fixed maturities	$	83,877,997	$	33,758	$	(37,631	)	$	83,874,124

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2016
Available for sale:
Fixed maturities
Certificates of deposit	$	61,280,000	$	—	$	—		$	61,280,000
U.S. treasury securities		19,091,842		14,205		(2,122	)		19,103,925
Total fixed maturities	$	80,371,842	$	14,205	$	(2,122	)	$	80,383,925

Unrealized gains (losses) on investments

A summary of the unrealized gains (losses) on investments carried at fair value and the applicable deferred federal income taxes are shown below:

	June 30			December 31
	2017			2016
Gross unrealized gains of fixed maturities	$	33,758		$	14,205
Gross unrealized (losses) of fixed maturities		(37,631	)		(2,122	)
Net unrealized gains (losses) on investments		(3,873	)		12,083
Deferred federal tax (expense) benefit		1,317			(4,108	)
Net unrealized gains (losses), net of deferred income taxes	$	(2,556	)	$	7,975

Summary of state held deposits

The following securities from four different banks represent statutory deposits that are assigned to and held by the California State Treasurer and the Insurance Commissioner of the State of Nevada. These deposits are required for writing certain lines of business in California and for admission to transact insurance business in the state of Nevada:

	June 30		December 31
	2017		2016
Certificates of deposit	$	500,000	$	500,000
Short-term investments		100,000		100,000
Total state held deposits	$	600,000	$	600,000

Investment in short term assets

Short-term investments have an initial maturity of one year or less and consist of the following:

	June 30		December 31
	2017		2016
U.S. treasury money market fund	$	1,038,729	$	8,542,292
U.S. treasury bills		1,848,938		—
Short-term bonds		999,725		—
Certificates of deposit		350,000		1,098,000
Bank money market accounts		853,619		562,548
Bank savings accounts		1,763		1,763
Total short-term investments	$	5,092,774	$	10,204,603