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Note 2 - Investments
 9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Investment Holdings [Text Block]
Note
2
.     Investments
 
Fixed Maturities
 
The amortized cost and fair value of available for sale investments as of
September 30, 2020
and
December 
31,
2019
is as follows:
 
   
September 30, 2020
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
   
(unaudited)
  
Available for sale:
      
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
US Treasury securities
  
$
573,979
    
$
122,953
    
$
-
    
$
696,932
  
Corporate bonds
  
 
19,128,008
    
 
3,086,100
    
 
(111,683
)
  
 
22,102,425
  
Municipal bonds
  
 
5,951,127
    
 
920,148
    
 
(103
)
  
 
6,871,172
  
Redeemable preferred stock
  
 
3,015,598
    
 
16,473
    
 
(48,985
)
  
 
2,983,086
  
Mortgage backed and asset backed securities
  
 
3,919,039
    
 
106,252
    
 
(11,179
)
  
 
4,014,112
  
Total available for sale
  
$
32,587,751
    
$
4,251,926
    
$
(171,950
)
  
$
36,667,727
  
 
 
   
December 31, 2019
  
   
Cost or
    
Gross
    
Gross
    
 
 
 
   
Amortized
    
Unrealized
    
Unrealized
    
 
 
 
   
Cost
    
Gains
    
Losses
    
Fair Value
  
Available for sale:
                                
Fixed maturities:
                                
US Treasury securities
   $
608,477
     $
24,162
     $
-
     $
632,639
  
Corporate bonds
    
18,407,211
      
1,697,265
      
(20,079
 )    
20,084,397
  
Municipal bonds
    
6,538,883
      
518,059
      
(1,883
 )    
7,055,059
  
Redeemable preferred stock
    
2,097,206
      
36,687
      
-
      
2,133,893
  
Mortgage backed and asset backed securities
    
3,171,620
      
77,593
      
(2,309
 )    
3,246,904
  
Total available for sale
   $
30,823,397
     $
2,353,766
     $
(24,271
 )   $
33,152,892
  
 
The amortized cost and fair value of debt securities as of
September 30, 2020
and
December 31, 2019,
by contractual maturity, are shown in the following table. Actual maturities
may
differ from contractual maturities because borrowers
may
have the right to call or prepay obligations with or without call or prepayment penalties.
 
   
As of September 30, 2020
    
As of December 31, 2019
  
   
Amortized Cost
    
Fair Value
    
Amortized Cost
    
Fair Value
  
    (unaudited)                  
Amounts maturing in:
  
 
                  
One year or less
  
$
100,957
    
$
103,352
     $
99,987
     $
100,239
  
After one year through five years
    
1,625,522
      
1,747,976
      
1,424,337
      
1,471,552
  
After five years through ten years
    
2,885,723
      
3,367,585
      
3,286,937
      
3,574,191
  
More than 10 years
    
21,040,912
      
24,451,616
      
20,743,310
      
22,626,113
  
Redeemable preferred stocks
    
3,015,598
      
2,983,086
      
2,097,206
      
2,133,893
  
Mortgage backed and asset backed securities
    
3,919,039
      
4,014,112
      
3,171,620
      
3,246,904
  
Total amortized cost and fair value
  
$
32,587,751
    
$
36,667,727
     $
30,823,397
     $
33,152,892
  
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
first
nine
months of
2020
and
2019
were
$5,371,229
and
$796,851
respectively. Realized gains and losses related to the sale of securities are summarized below:
 
   
Nine Months Ended September 30,
  
   
(unaudited)
  
   
2020
    
2019
  
Gross gains
  
$
119,173
     $
4,601
  
Gross losses
  
 
(291,524
)
    
(18,586
 )
Net security losses
  
$
(172,351
)
   $
(13,985
 )
 
Proceeds from the sale of securities, maturities, and asset paydowns for the
three
months
September 30, 2020
and
2019
were
$766,220
and
$135,587
respectively. Realized gains and losses related to the sale of securities are summarized below:
 
   
Three Months Ended September 30,
  
   
(unaudited)
  
   
2020
    
2019
  
Gross gains
  
$
54,266
     $
650
  
Gross losses
  
 
(1,739
)
    
(107
 )
Net security gains
  
$
52,527
     $
543
  
 
Gross unrealized losses by duration for available for sale securities are summarized as follows:
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
September 30, 2020
  
(unaudited)
  
Available for sale:
      
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Corporate bonds
  
$
1,379,313
    
$
(106,717
)
  
$
45,000
    
$
(4,966
)
  
$
1,424,313
    
$
(111,683
)
Municipal bonds
  
 
47,844
    
 
(103
)
  
 
-
    
 
-
    
 
47,844
    
 
(103
)
Redeemable preferred stock
  
 
2,280,348
    
 
(48,985
)
  
 
-
    
 
-
    
 
2,280,348
    
 
(48,985
)
Mortgage backed and asset backed securities
  
 
316,327
    
 
(11,179
)
  
 
-
    
 
-
    
 
316,327
    
 
(11,179
)
Total fixed maturities
  
$
4,023,832
    
$
(166,984
)
  
$
45,000
    
$
(4,966
)
  
$
4,068,832
    
$
(171,950
)
 
 
   
Less than 12 months
    
Greater than 12 months
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
December 31, 2019
  
Available for sale:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed maturities:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Corporate bonds
  
$
967,848
    
$
(20,079
)
  
$
-
    
$
-
    
$
967,848
    
$
(20,079
)
Municipal bonds
  
 
46,646
    
 
(1,883
)
  
 
-
    
 
-
    
 
46,646
    
 
(1,883
)
Mortgage backed and asset backed securities
  
 
-
    
 
-
    
 
296,576
    
 
(2,309
)
  
 
296,576
    
 
(2,309
)
Total fixed maturities
  
$
1,014,494
    
$
(21,962
)
  
$
296,576
    
$
(2,309
)
  
$
1,311,070
    
$
(24,271
)
 
Unrealized losses occur from market price declines that
may
be due to a number of factors, including economic downturns, changes in interest rates, competitive forces within an industry, issuer specific events, operational difficulties, lawsuits, and market pricing anomalies caused by factors such as temporary lack of liquidity.
 
The total number of available for sale securities in the investment portfolio in an unrealized loss position as of
September 
30,
2020
was
22,
which represented an unrealized loss of
$171,950
of the aggregate carrying value of those securities. The
22
securities breakdown as follows:
7
bonds,
6
mortgage and asset backed securities, and
9
preferred stocks. The Company determined that
no
securities were considered to be other-than-temporarily impaired as of
September 30, 2020
and
December 31, 2019.
 
Mortgage Loans on Real Estate
 
The Company's mortgage loans by property type as of
September 30, 2020
and
December 31, 2019
are summarized as follows:
 
   
September 30,2020
    
December 31, 2019
  
    (unaudited)          
Commercial mortgage loans by property type
  
 
          
Student housing
   $
781,512
     $
-
  
Condominium
    
1,352,435
      
-
  
Multi-family
    
177,984
      
-
  
Total commercial mortgages
   $
2,311,931
     $
-
  
 
The Company's mortgage loans by loan-to-value ratio as of
September 30, 2020
and
December 31, 2019
are summarized as follows:
 
   
September 30,2020
    
December 31, 2019
  
    (unaudited)          
Loan to value ratio
  
 
          
Over 70 to 80%
   $
1,352,435
     $
-
  
Over 20 to 30%
    
177,984
      
-
  
Over 10 to 20%
    
781,512
      
-
  
Total
   $
2,311,931
     $
-
  
 
The Company's mortgage loans by maturity date as of
September 30, 2020
and
December 31, 2019
are summarized as follows:
 
   
September 30,2020
    
December 31, 2019
  
    (unaudited)          
Maturity Date
  
 
          
One year or less
   $
2,311,931
     $
-
  
 
Investment Income
, Net of Expenses
 
The components of net investment income for the
nine
months ended
September 30, 2020
and
2019
are as follows:
 
   
Nine Months Ended September 30,
  
   
2020
    
2019
  
   
(unaudited)
  
Fixed maturities
  
$
889,563
     $
873,443
  
Mortgages
  
 
61,438
      
-
  
Equity securities
  
 
487,777
      
440,426
  
Funds withheld
  
 
962,023
      
-
  
Cash and cash equivalents
  
 
12,240
      
23,772
  
   
 
2,413,041
      
1,337,641
  
Less investment expenses
  
 
(90,872
)
    
(33,884
 )
   
$
2,322,169
     $
1,303,757
  
 
The components of net investment income for the
three
months ended
September 30, 2020
and
2019
are as follows:
 
   
Three Months Ended September 30,
  
   
2020
    
2019
  
   
(unaudited)
  
Fixed maturities
  
$
272,145
     $
288,410
  
Mortgages
  
 
55,587
     $
-
  
Equity securities
  
 
198,327
      
155,350
  
Funds withheld
  
 
597,990
      
-
  
Cash and cash equivalents
  
 
864
      
9,794
  
   
 
1,124,913
      
453,554
  
Less investment expenses
  
 
(58,755
)
    
(10,835
 )
   
$
1,066,158
     $
442,719