Investments (Tables)

12 Months Ended

Dec. 31, 2019

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
	2019			2018
Fixed maturities	$	2,162,142		$	1,956,963
Short-term investments and cash equivalents		65,656			65,042
Gross investment income		2,227,798			2,022,005
Less investment expenses		(129,842	)		(114,232	)
Net investment income		2,097,956			1,907,773
Net realized gains (losses)		(12,661	)		148
Net investment income and realized gains	$	2,085,295		$	1,907,921

Investments by contractual maturity

The amortized cost and estimated fair value of fixed maturity investments at December 31, 2019, by contractual maturity are as follows:

	Amortized Cost		Estimated Fair Value
Due in one year or less	$	10,063,975	$	10,087,478
Due after one year through five years		42,944,463		43,654,657
Due after five years through ten years		9,996,830		10,529,528
Due after ten years and beyond		19,795,143		20,026,047
Total fixed maturities	$	82,800,411	$	84,297,710

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, 2019
Available-for-sale fixed maturities:
U.S. Treasury securities	$	15,105,795	$	130,564	$	(1,027	)	$	15,235,332
Corporate securities		41,953,378		1,076,012		(57	)		43,029,333
Agency mortgage-backed securities		24,943,238		293,757		(1,950	)		25,235,045
Held-to-maturity fixed maturities:
Certificates of deposit		798,000		—		—			798,000
Total fixed maturities	$	82,800,411	$	1,500,333	$	(3,034	)	$	84,297,710
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

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
	2019			2018
Gross unrealized gains of fixed maturities	$	1,500,333		$	74,248
Gross unrealized losses of fixed maturities		(3,034	)		(1,466,699	)
Net unrealized gains (losses) on investments		1,497,299			(1,392,451	)
Deferred federal tax benefit (expense)		(314,433	)		292,415
Net unrealized gains (losses), net of deferred income taxes	$	1,182,866		$	(1,100,036	)

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, 2019
U.S. Treasury securities	$	1,996,562	$	(253	)		1	$	1,002,031	$	(775	)		1
Corporate securities		999,818		(56	)		1		—		—			—
Agency mortgage-backed securities		750,058		(1,950	)		2		—		—			—
Total	$	3,746,438	$	(2,259	)		4	$	1,002,031	$	(775	)		1

	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

Summary of state held deposits

The following securities from three 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
	2019		2018
Certificates of deposit	$	200,000	$	200,000
Short-term investments		200,000		200,000
Total state held deposits	$	400,000	$	400,000

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
	2019		2018
U.S. Treasury bills	$	1,996,815	$	4,490,954
Certificates of deposit		200,000		200,000
Total short-term investments	$	2,196,815	$	4,690,954