Investments (Tables)

12 Months Ended

Dec. 31, 2018

Investments Tables Abstract

Summary of investment income and net realized gains

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

	Year ended December 31
	2018			2017
Fixed maturities (1)	$	1,956,963		$	1,281,984
Short-term investments and cash equivalents		65,042			55,907
Gross investment income		2,022,005			1,337,891
Less investment expenses		(114,232	)		(47,824	)
Net investment income		1,907,773			1,290,067
Net realized gains		148			528
Net investment income and realized gains	$	1,907,921		$	1,290,595

(1) Investment income from fixed maturities included $0 and $133,160 of interest on the restricted cash for the years ended December 31, 2018 and 2017, respectively.

Investments by contractual maturity

The amortized cost and estimated fair value of fixed maturity investments at December 31, 2018, by contractual maturity are as follows:

	Amortized Cost		Estimated Fair Value
Due in one year or less	$	9,326,886	$	9,311,678
Due after one year through five years		43,821,970		43,211,883
Due after five years through ten years		15,876,016		15,497,513
Due after ten years and beyond		16,403,716		16,015,063
Total fixed maturities	$	85,428,588	$	84,036,137

Investments by amortized cost and estimated fair value

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
December 31, 2018
Available-for-sale fixed maturities:
U.S. treasury securities	$	16,746,832	$	16,069	$	(143,282	)	$	16,619,619
Corporate securities		40,804,425		50,422		(851,124	)		40,003,723
Agency mortgage-backed securities		20,751,331		7,757		(472,293	)		20,286,795
Held-to-maturity fixed maturities:
Certificates of deposit		7,126,000		—		—			7,126,000
Total fixed maturities	$	85,428,588	$	74,248	$	(1,466,699	)	$	84,036,137
December 31, 2017
Available-for-sale fixed maturities:
U.S. treasury securities	$	7,517,901	$	21	$	(63,697	)	$	7,454,225
Corporate securities		28,745,223		43,204		(130,787	)		28,657,640
Agency mortgage-backed securities		21,889,996		—		(152,407	)		21,737,589
Held-to-maturity fixed maturities:
Certificates of deposit		28,098,000		—		—			28,098,000
Total fixed maturities	$	86,251,120	$	43,225	$	(346,891	)	$	85,947,454

Summary of unrealized appreciation (depreciation) on investments

A summary of the unrealized gains (losses) on investments carried at fair value and the applicable deferred federal income taxes is as follows:

	Year ended December 31
	2018			2017
Gross unrealized gains of fixed maturities	$	74,248		$	43,225
Gross unrealized losses of fixed maturities		(1,466,699	)		(346,891	)
Net unrealized losses on investments		(1,392,451	)		(303,666	)
Deferred federal tax benefit		292,415			63,770
Net unrealized losses, net of deferred income taxes	$	(1,100,036	)	$	(239,896	)

Components of investments in unrealized loss position for continuous period of time

A summary of estimated fair value and gross unrealized losses in a gross unrealized loss position by the length of time in which the securities have continually been in that position is shown below:

	Less than 12 Months							12 Months or Longer
	Estimated Fair Value		Gross Unrealized Losses			Number of Securities		Estimated Fair Value		Gross Unrealized Losses			Number of Securities
December 31, 2018
U.S. treasury securities	$	1,760,491	$	(20,181	)		2	$	8,496,069	$	(123,101	)		6
Corporate securities		10,878,381		(272,515	)		17		21,189,487		(578,609	)		27
Agency mortgage-backed securities		—		—			—		17,034,086		(472,293	)		15
Total	$	12,638,872	$	(292,696	)		19	$	46,719,642	$	(1,174,003	)		48

	Less than 12 Months							12 Months or Longer
	Estimated Fair Value		Gross Unrealized Losses			Number of Securities		Estimated Fair Value		Gross Unrealized Losses		Number of Securities
December 31, 2017
U.S. treasury securities	$	7,454,204	$	(63,697	)		6	$	—	$	—		—
Corporate securities		20,335,512		(130,787	)		26		—		—		—
Agency mortgage-backed securities		21,737,589		(152,407	)		17		—		—		—
Total	$	49,527,305	$	(346,891	)		49	$	—	$	—		—

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 in the state of Nevada.

	Year ended December 31
	2018		2017
Certificates of deposit	$	200,000	$	400,000
Short-term investments		200,000		200,000
Total state held deposits	$	400,000	$	600,000

Summary of short term investments

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

	Year ended December 31
	2018		2017
U.S. treasury bills	$	4,490,954	$	1,148,395
Certificates of deposit		200,000		200,000
Commercial paper		—		499,383
Total short-term investments	$	4,690,954	$	1,847,778