Note 2 - Acquisitions

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note 2.         Acquisitions

On December 31, 2020, DCLIC entered into an assumption agreement with ALSC where it acquired a certain block of life insurance policies. Under an assumption agreement, DCLIC becomes directly liable to the policyholders of this block of business.

The acquisition was accounted for under the acquisition method of accounting, which requires the consideration transferred and all assets and liabilities assumed to be recorded at fair value. The following table summarizes the fair value of the assets acquired and liabilities assumed from ALSC:

Cash consideration paid to ALSC	$	927,000
Preliminary amounts of indentifiable assets acquired and liablities assumed
Investment securities	$	7,990,509
Cash receivable		2,117,591
Policy loan assets		101,736
Value of business acquired		2,163,541
Policyholder reserves		(4,552,816	)
Deposit type contracts		(6,893,561	)
Total indentifiable net assets	$	927,000