Note 3 - Derivative Instruments

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 3.     Derivative Instruments

Types of Derivatives used by the Company

The Company’s derivatives consist 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 is as follows:

	September 30, 2021				December 31, 2020
	Derivative				Derivative				Balance
	Asset		Liability		Asset		Liability		Reported In
	(unaudited)
Derivatives:
Embedded derivatives:
Funds withheld embedded derivative	$	169,420	$	-	$	653,294	$	-	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
	September 30, 2021			September 30, 2020			Reported In
	(unaudited)
Derivatives:
Embedded derivatives:
Change in funds withheld embedded derivative	$	(483,874	)	$	(138,529	)	Net investment losses