Note 2 - Investments

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Investment Holdings [Text Block]

Note

2.

Investments

Fixed Maturity

The amortized cost and fair value of available for sale investments as of

March 31, 2021

and

December 

31,

2020

is as follows:

	March 31, 2021
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(unaudited)
Available for sale:
Fixed maturities:
US Treasury securities	$	575,881	$	93,935	$	-		$	669,816
Corporate bonds		20,118,835		1,513,800		(442,183	)		21,190,452
Municipal bonds		5,982,208		508,856		(53,494	)		6,437,570
Redeemable preferred stock		2,873,999		37,532		(14,324	)		2,897,207
Mortgage backed and asset backed securities		4,000,566		33,011		(49,920	)		3,983,657
Total available for sale	$	33,551,489	$	2,187,134	$	(559,921	)	$	35,178,702

	December 31, 2020
	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Available for sale:
Fixed maturities:
US Treasury securities	$	574,935	$	127,981	$	-		$	702,916
Corporate bonds		20,126,836		2,821,508		(533	)		22,947,811
Municipal bonds		5,992,707		804,443		(496	)		6,796,654
Redeemable preferred stock		2,900,330		90,085		(200	)		2,990,215
Mortgage backed and asset backed securities		4,189,710		50,274		(2	)		4,239,982
Total available for sale	$	33,784,518	$	3,894,291	$	(1,231	)	$	37,677,578

The amortized cost and fair value of debt securities as of

March 31, 2021

and

December 31, 2020,

by contractual maturity, are shown below. 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 March 31, 2021				As of December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(unaudited)
Amounts maturing in:
One year or less	$	373,737	$	378,110	$	373,590	$	379,823
After one year through five years		1,536,790		1,620,593		1,540,931		1,641,749
After five years through ten years		2,886,887		3,220,456		2,887,066		3,379,930
More than 10 years		21,879,510		23,078,679		21,892,891		25,045,879
Redeemable preferred stocks		2,873,999		2,897,207		2,900,330		2,990,215
Mortgage backed and asset backed securities		4,000,566		3,983,657		4,189,710		4,239,982
Total amortized cost and fair value	$	33,551,489	$	35,178,702	$	33,784,518	$	37,677,578

Proceeds from the sale of securities, maturities, and asset paydowns in the

three

months ended

March 31, 2021

and

2020

were

$360,187

and

$3,489,276,

respectively. Realized gains and losses related to the sale of securities are summarized as follows:

	Three Months Ended March 31,
	(unaudited)
	2021			2020
Gross gains	$	52,792		$	44,295
Gross losses		(395	)		(263,248	)
Realized gains (losses)	$	52,397		$	(218,953	)

Gross unrealized losses by duration 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
March 31, 2021	(unaudited)
Available for sale:
Fixed maturities:
Corporate bonds	$	5,606,231	$	(442,183	)	$	-	$	-	$	5,606,231	$	(442,183	)
Municipal bonds		746,298		(53,494	)		-		-		746,298		(53,494	)
Redeemable preferred stock		1,213,188		(14,324	)		-		-		1,213,188		(14,324	)
Mortgage backed and asset backed securities		2,947,093		(49,920	)		-		-		2,947,093		(49,920	)
Total fixed maturities	$	10,512,810	$	(559,921	)	$	-	$	-	$	10,512,810	$	(559,921	)

	Less than 12 months					Greater than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
December 31, 2020
Available for sale:
Fixed maturities:
Corporate bonds	$	210,625	$	(2	)	$	49,438	$	(531	)	$	260,063	$	(533	)
Municipal bonds		47,249		(496	)		-		-			47,249		(496	)
Redeemable preferred stock		77,918		(200	)		-		-			77,918		(200	)
Mortgage backed and asset backed securities		309,144		(2	)		-		-			309,144		(2	)
Total fixed maturities	$	644,936	$	(700	)	$	49,438	$	(531	)	$	694,374	$	(1,231	)

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

March 

31,

2021

was

66,

which represented an unrealized loss of

$559,921

of the aggregate carrying value of those securities. The

66

securities breakdown as follows:

35

bonds,

26

mortgage and asset backed securities, and

5

redeemable preferred stock. The Company determined that

no

securities were considered to be other-than-temporarily impaired as of

March 31, 2021

and

December 31, 2020.

Mortgage Loans on Real Estate

The Company has invested in various mortgage loans through participation agreements with the original issuing entity.  The Company's mortgage loans by property type as of

March 31, 2021

and

December 31, 2020

are summarized as follows:

	March 31, 2021		December 31, 2020
Commercial mortgage loans by property type	(unaudited)
Student housing	$	781,512	$	781,512
Condominium		2,083,700		1,874,445
Multi-property		382,500		332,195
Multi-family		185,725		177,984
Total commercial mortgages	$	3,433,437	$	3,166,136

The Company utilizes loan-to-value of individual mortgage loans to evaluate the credit quality of its mortgage loan portfolio.  The loan-to-value measures the loan's carrying value to its appraised value.  The Company's mortgage loans by loan-to-value ratio as of

March 31, 2021

and

December 31, 2020

are summarized as follows:

	March 31, 2021		December 31, 2020
Loan to value ratio	(unaudited)
Over 60 to 70%	$	2,083,700	$	1,874,445
Over 30 to 40%		185,725	$	177,984
Over 10 to 20%		1,164,012		1,113,707
Total	$	3,433,437	$	3,166,136

The Company's mortgage loans by maturity date as of

March 31, 2021

and

December 31, 2020

are summarized as follows:

	March 31, 2021		December 31, 2020
Maturity Date	(unaudited)
One year or less	$	2,482,353	$	2,393,900
After one year through five years		951,084		772,236
Total	$	3,433,437	$	3,166,136

The Company had

no

mortgage loans that were on non-accrued status as of

March 31, 2021

and

December 31, 2020. 

The were

no

mortgage loans delinquent on payments due the Company as of

March 31, 2021

and

December 31, 2020. 

In addition, the Company did

not

establish a valuation allowance on any mortgage loans.

Investment Income, Net of Expenses

The components of net investment income for the

three

months ended

March 31, 2021

and

2020

are as follows:

	Three Months Ended March 31,
	2021			2020
	(unaudited)
Fixed maturities	$	277,489		$	366,731
Mortgages		72,917			-
Equity securities		147,931			150,189
Funds withheld		827,997			-
Cash and cash equivalents		308			9,312
		1,326,642			526,232
Less investment expenses		(27,650	)		(11,524	)
	$	1,298,992		$	514,708

Net Investment Gains

The Company was required to implement a new accounting standard in the

first

quarter of

2019

which requires that the unrealized gains and losses on equity securities be reported as income on the consolidated statements of comprehensive loss. For the

three

months ended

March 31, 2021,

net investment losses is comprised of

$32,918

of unrealized gains on our equity portfolio, net realized gains of

$52,397,

and a loss on the change in the fair value of our embedded derivative on funds withheld of

$202,647.

For the

three

months ended

March 31, 2020,

net investment losses are comprised of

$1,151,808

of unrealized losses on our equity portfolio and net realized losses of

$218,953.