Note 3 - Derivative Instruments

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note

3

.

     

Derivative Instruments

Accounting for Derivative Instruments

See Note

1

for a detailed description of the accounting treatment for derivative instruments, including embedded derivatives.

Types of Derivatives used by the Company

The Company's derivatives consists solely of embedded derivatives on funds withheld on coinsurance assets.

Summary of Derivative  Positions

The fair value of the Company's derivative financial instruments on the consolidated balance sheets as of

June 30, 2020

is as follows:

	June 30, 2020				December 31, 2019
	(unaudited)
	Derivative				Derivative				Balance
	Asset		Liability		Asset		Liability		Reported In
Derivatives:
Embedded derivatives:
Funds withheld embedded derivative	$	-	$	637,033	$	-	$	-	Funds withheld

The following table shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive income:

	Period Ending			Period Ending		Balance
	June 30,2020			June 30,2019		Reported In
	(unaudited)			(unaudited)
Derivatives:
Embedded derivatives:
Change in funds withheld embedded derivative	$	(637,033	)	$	-	Net investment gains (losses)