Note 2 - Acquisitions

12 Months Ended

Dec. 31, 2019

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 following table 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

F18

Table of Contents

US Alliance Corporation

Notes to Consolidated Financial Statements