Note 3 - Derivative Instruments

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 3. 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 consist of embedded derivatives on funds withheld on coinsurance assets which was eliminated in October 2022 and a reinsurance contract allocated hedge which was acquired in October 2022.

Summary of Derivative Positions

The fair value of the Company’s derivative financial instruments on the consolidated balance sheets is as follows:

	December 31, 2022				December 31, 2021
	Derivative				Derivative				Balance
	Asset		Liability		Asset		Liability		Reported In
Derivatives:
Embedded derivatives:
Funds withheld embedded derivative	$	-		-	$	544,768	$	-	Funds withheld
Reinsurance contract allocated hedge		724,998		-		-		-	Reinsurance related assets

The following table shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive loss:

	Year Ending			Year Ending			Balance
	December 31, 2022			December 31, 2021			Reported In
Derivatives:
Embedded derivatives:
Change in funds withheld embedded derivative	$	(544,768	)	$	(108,526	)	Net investment gains (losses)
Change in reinsurance contract allocated hedge	$	367,172		$	-		Net investment gains (losses)