Note 4 - Derivative Instruments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 4.     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 is as follows:

	December 31, 2021				December 31, 2020
	Derivative				Derivative				Balance
	Asset		Liability		Asset		Liability		Reported In
Derivatives:
Embedded derivatives:
Funds withheld embedded derivative	$	544,768	$	-	$	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:

	Year Ending			Year Ending		Balance
	December 31, 2021			December 31, 2020		Reported In
Derivatives:
Embedded derivatives:
Change in funds withheld embedded derivative	$	(108,526	)	$	653,294	Net investment gains