Note 2 - Acquisitions

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note

2.

     Acquisitions

On

December 14, 2018

the Company acquired USALSC-Montana (formerly Great Western Life Insurance Company, “GWLIC”) pursuant to a Stock Purchase Agreement (“SPA”) with Great Western Insurance Company, a wholly-owned subsidiary of American Enterprise Group, Inc. Pursuant to the SPA, the Company paid

$500,000

to acquire all of the outstanding shares of GWLIC.

The acquisition was accounted for under the acquisition method of accounting, which requires the consideration transferred and all assets and liabilities assumed to be recorded at fair value. The table below summarizes the fair value of GWLIC’s assets acquired and liabilities assumed and the gain from purchase:

Preliminary amounts of indentifiable assets acquired and liablities assumed
Investment securities	$	1,380,606
Cash		872,391
Other assets		26,669
Policyholder reserves		(422,442	)
Deposit type contracts		(35,659	)
Other liabilities		(180,569	)
Total indentifiable net assets	$	1,640,996
Cash paid as purchase consideration		(500,000	)
Gain from purchase of Great Western Life	$	1,140,996

On

August 1, 2017

the Company acquired NPCC pursuant to a Plan and Agreement of Merger dated

May 23, 2017

under which Alliance Merger Sub, Inc. (“Acquisition”), a wholly owned subsidiary of the Company, merged with and into NPCC (“Merger”) with Acquisition being the surviving company. Pursuant to the agreement, the Company exchanged

.5841

shares of the Company’s common stock for each share of Northern Plains common stock, or

1,644,458

shares. Subsequent to the merger, Acquisition was merged into the Company.

The Merger was accounted for under the acquisition method of accounting, which requires the consideration transferred and all assets and liabilities assumed to be recorded at fair value. The table below summarizes the fair value of the consideration transferred and the fair value of Northern Plains’ assets acquired and liabilities assumed:

Fair value of US Alliance Corporation common stock issued as consideration	$	3,099,165
Amounts of indentifiable assets acquired and liablities assumed
Investment securities	$	4,623,449
Cash		1,079,627
Value of business acquired		609,061
Other assets		60,080
Policyholder reserves		(1,277,411	)
Deposit type contracts		(2,029,138	)
Other liabilities		(243,608	)
Total indentifiable net assets	$	2,822,060
Goodwill		277,105
Total amounts of indentifiable assets acquired and liabilties assumed	$	3,099,165