Business Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segments

Note 10 – Business Segments

The Company’s current operations are organized into three reportable segments: Insurance, Agency, and Corporate & Other.

The Insurance Segment is composed of three broad lines consisting of Traditional Life, Closed Block, and Assumed Life and Annuities. Traditional Life and the Closed Block are distinct operations; the Assumed life and annuities business and the small amount of structured settlements are all blocks in runoff from a prior management arrangement.

The Agency Segment includes the insurance distribution operations of the Company and includes commission revenue from the sale of Fidelity Life products.

The Corporate & Other Segment includes expenses that will benefit the overall organization, which are not allocated to a segment. This segment recognizes net investment income on cash and invested assets held mainly as a result of the IPO and interest expense related to our commission financing agreement.

All intercompany accounts and transactions have been eliminated in consolidation, including any profit or loss from the sale of Insurance Segment products through the Agency Segment.

The segment results are as follows:

	Three Months Ended June 30, 2022												Three Months Ended June 30, 2021
	Insurance			Agency			Corporate & Other			Total Consolidated			Insurance			Agency			Corporate & Other			Total Consolidated
Net insurance premiums	$	26,846		$	—		$	—		$	26,846		$	25,433		$	—		$	—		$	25,433
Net investment income		3,720			—			78			3,798			3,551			—			59			3,610
Net gains (losses) on investments		(54	)		—			165			111			1,102			—			195			1,297
Other-than-temporary-impairments		(1	)		—			—			(1	)		(1	)		—			—			(1	)
Earned commissions		—			10,587			(99	)		10,488			—			12,414			(606	)		11,808
Other income		213			1,276			—			1,489			63			1,758			—			1,821
Total revenues		30,724			11,863			144			42,731			30,148			14,172			(352	)		43,968
Life, annuity, and health claim benefits		16,046			—			—			16,046			18,181			—			—			18,181
Operating costs and expenses		9,270			13,720			1,582			24,572			5,875			14,276			2,597			22,748
Amortization of deferred policy acquisition    costs		4,239			—			—			4,239			3,938			—			—			3,938
Total benefits and expenses		29,555			13,720			1,582			44,857			27,994			14,276			2,597			44,867
(Loss) income before income tax	$	1,169		$	(1,857	)	$	(1,438	)	$	(2,126	)	$	2,154		$	(104	)	$	(2,949	)	$	(899	)

	Six Months Ended June 30, 2022												Six Months Ended June 30, 2021
	Insurance			Agency			Corporate & Other			Total Consolidated			Insurance			Agency			Corporate & Other			Total Consolidated
Net insurance premiums	$	49,006		$	—		$	—		$	49,006		$	50,730		$	—		$	—		$	50,730
Net investment income		7,055			—			209			7,264			6,759			—			105			6,864
Net gains (losses) on investments		936			—			826			1,762			2,223			—			590			2,813
Other-than-temporary-impairment		(103	)		—			—			(103	)		(3	)		—			—			(3	)
Earned commissions		—			21,725			(200	)		21,525			—			24,288			(1,858	)		22,430
Other income		275			2,514			—			2,789			137			3,232			—			3,369
Total revenues		57,169			24,239			835			82,243			59,846			27,520			(1,163	)		86,203
Life, annuity, and health claim benefits		31,571			—			—			31,571			40,855			—			—			40,855
Operating costs and expenses		17,187			28,463			4,076			49,726			12,166			28,308			5,602			46,076
Amortization of deferred policy    acquisition costs		9,151			—			—			9,151			7,178			—			—			7,178
Total benefits and expenses		57,909			28,463			4,076			90,448			60,199			28,308			5,602			94,109
(Loss) income before income tax	$	(740	)	$	(4,224	)	$	(3,241	)	$	(8,205	)	$	(353	)	$	(788	)	$	(6,765	)	$	(7,906	)

	June 30, 2022								December 31, 2021
	Insurance		Agency		Corporate & Other		Total Consolidated		Insurance			Agency		Corporate & Other		Total Consolidated
Investments and cash	$	368,902	$	593	$	8,928	$	378,423	$	419,953		$	425	$	10,402	$	430,780
Commissions and agent balances		8,298		22,008		—		30,306		11,919			16,770		—		28,689
Deferred policy acquisition costs		92,393		—		—		92,393		95,715			—		—		95,715
Intangible assets		—		1,635		—		1,635		—			1,635		—		1,635
Reinsurance recoverables		202,155		—		—		202,155		184,131			—		—		184,131
Deferred income tax assets (liabilities), net		6,624		—		15,878		22,502		(4,136	)		—		16,836		12,700
Other		26,435		6,900		3,465		36,800		26,074			4,023		4,260		34,357
Total assets	$	704,807	$	31,136	$	28,271	$	764,214	$	733,656		$	22,853	$	31,498	$	788,007

All the Company’s significant revenues and long-lived assets are located in the United States, which is the Company’s country of domicile.