10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-38718

Federal Life Group, Inc.

(Exact name of registrant as specified in its charter)

Pennsylvania	82-4944172
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3750 West Deerfield Road

Riverwoods, Illinois 60015

(Address of principal executive offices, including zip code)

(847) 520-1900

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☐    No  ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

APPLICABLE TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

As of January 22, 2019, there were 3,530,250 shares of the registrant’s common stock, $.01 par value, outstanding.

EXPLANATORY NOTE

This Amendment No. 1 (this “Amendment”) to Federal Life Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 which was originally filed on December 26, 2018 (the “Original Filing”) is being filed for the purpose of furnishing Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T and to correct two immaterial errors included in the consolidated financial statements.

Exhibit 101 to this Amendment No. 1 provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language). This Amendment is being filed within the time period provided by Rule 405(a)(2) of Regulation S-T.

In addition, this Amendment corrects two immaterial errors contained in the Original Filing.

The first appeared in Item 1 of the Original Filing, in the Liabilities section of the Consolidated Balance Sheet. The line item entitled “Other Liabilities” as at September 30, 2018 should appear as $999 thousand rather than $2,049 thousand. The total Liabilities figure remains unchanged. Below is the corrected Consolidated Balance Sheet:

FEDERAL LIFE GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	Predecessor			Predecessor
	9/30/2018			12/31/2017
	(unaudited)
Assets
Investments
Securities available for sale, at fair value:
Fixed maturities (amortized cost; 2018, $184,995; 2017, $183,432)	$	181,497		$	188,452
Equity securities		6,620			6,209
Policy loans		9,599			9,852
Derivative instruments, at fair value		517			395
Total investments		198,233			204,908
Cash and cash equivalents		3,466			4,085
Real estate, property and equipment, net		2,172			2,151
Accrued investment income		1,999			1,886
Accounts receivable		2,489			538
Reinsurance recoverables		3,571			3,727
Prepaid reinsurance premiums		1,387			1,358
Deferred policy acquisition costs, net		13,617			12,179
Deferred sales inducement costs, net		1,192			867
Deferred tax asset, net		495			458
Other assets		249			202
Separate account asset		24,434			24,779
Total Assets		253,304			257,138
Liabilities
Policy liabilities and accruals
Policyholder account balance		115,142			109,823
Future life policy benefits		72,227			71,927
Future accident and health policy benefits		343			386
Reserve for deposit type contracts		10,885			10,850
Other policyholder funds		3,099			1,970
Unearned revenue		1,366			1,387
Deferred reinsurance settlements		2,727			2,949
Taxes payable		6			7
Promissory note		1,050
Other liabilities		999			1,703
Separate account liability		24,434			24,779
Total Liabilities		232,278			225,781
Equity
Retained earnings		23,165			26,600
Accumulated other comprehensive income (loss)		(2,139	)		4,757
Total Equity		21,026			31,357
Total Liabilities and Equity	$	253,304		$	257,138

See full notes to unaudited consolidated financial statements contained in the Original Filing, as defined herein.

The second appeared in Note 6 to the consolidated financial statements on page 18 in the table entitled “Predecessor—Recurring Fair Value Measurements at December 31, 2017…” In that table the column headed “Significant Other Observable Inputs (Level 2)” should total $184,290 thousand rather than $179,219 thousand. Below is the corrected table:

	Predecessor Recurring Fair Value Measurements at December 31, 2017 Using:
Description	Fair Values		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Fixed maturity securities:
U.S. government	$	4,162	$	4,162	$	—	$	—
States, political subdivisions, other		27,614		—		27,614
Corporate		109,395		—		109,395
Residential mortgage-backed securities		43,086		—		43,086
Commercial mortgage-backed securities		4,195		—		4,195
Total fixed maturities		188,452		4,162		184,290
Equities		6,209		4,027		—		2,182
Derivative instruments		395		395		—		—
Cash equivalents (1)		4,085		4,085
Separate accounts (2)		24,779		24,779
Total	$	223,920	$	37,448	$	184,290	$	2,182

No other changes have been made to the Original Filing. This Amendment does not reflect subsequent events occurring after the date of the Original Filing.

Item 6. Exhibits

Exhibit No	Description
3.1*	Amended and Restated Articles of Incorporation of Federal Life Group, Inc.
3.2*	Bylaws of Federal Life Group, Inc.
31.1**	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
31.2**	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
32.1***	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2***	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.

* Incorporated by reference from the Company’s Form S-1 filed with the SEC on October 11, 2018.

** Filed herewith.

*** Furnished herewith (such certification shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, except to the extent that the Company specifically incorporates it by reference).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FEDERAL LIFE GROUP, INC.
By:	/s/ William S. Austin
	William S. Austin
	President and Chief Executive Officer

January 22, 2019

EX-31.1

Exhibit 31.1

CERTIFICATION

I, William S. Austin, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of Federal Life Group, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as define in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluations; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit committee of registrant’s Board of Directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 22, 2019

/s/ William S. Austin

William S. Austin

Chief Executive Officer, Federal Life Group, Inc.

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Anders Raaum, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of Federal Life Group, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluations; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of registrant’s Board of Directors:

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 22, 2019

/s/ Anders Raaum

Anders Raaum

Chief Financial Officer, Federal Life Group, Inc.

EX-32.1

Exhibit 32.1

Federal Life Group, Inc.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned officer of Federal Life Group, Inc. (“FLG”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q/A of FLG for the period ended September 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Form 10-Q/A fairly presents, in all material respects, the financial condition and results of operations of FLG.

Dated: January 22, 2019	By:	/s/ William S. Austin
		William S. Austin
		Chief Executive Officer, Federal Life Group, Inc.

EX-32.2

Exhibit 32.2

Federal Life Group, Inc.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned officer of Federal Life Group, Inc. (“FLG”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q/A of FLG for the period ended September 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Form 10-Q/A fairly presents, in all material respects, the financial condition and results of operations of FLG.

Dated: January 22, 2019	By:	/s/ Anders Raaum
		Anders Raaum
		Chief Financial Officer, Federal Life Group, Inc.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Jan. 22, 2019
Document and Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	FLF
Entity Registrant Name	Federal Life Group, Inc.
Entity Central Index Key	0001743886
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		3,530,250

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities available for sale, at fair value:
Fixed maturities (amortized cost; 2018, $184,995; 2017, $183,432)	$ 181,497	$ 188,452
Equity securities	6,620	6,209
Policy loans	9,599	9,852
Derivative instruments, at fair value	517	395
Total investments	198,233	204,908
Cash and cash equivalents	3,466	4,085
Real estate, property and equipment, net	2,172	2,151
Accrued investment income	1,999	1,886
Accounts receivable	2,489	538
Reinsurance recoverables	3,571	3,727
Prepaid reinsurance premiums	1,387	1,358
Deferred policy acquisition costs, net	13,617	12,179
Deferred sales inducement costs, net	1,192	867
Deferred tax asset, net	495	458
Other assets	249	202
Separate account asset	24,434	24,779
Total Assets	253,304	257,138
Policy liabilities and accruals
Policyholder account balance	115,142	109,823
Future life policy benefits	72,227	71,927
Future accident and health policy benefits	343	386
Reserve for deposit type contracts	10,885	10,850
Other policyholder funds	3,099	1,970
Unearned revenue	1,366	1,387
Deferred reinsurance settlements	2,727	2,949
Taxes payable	6	7
Promissory note	1,050
Other liabilities	999	1,703
Separate account liability	24,434	24,779
Total Liabilities	232,278	225,781
Equity
Retained earnings	23,165	26,600
Accumulated other comprehensive income (loss)	(2,139)	4,757
Total Equity	21,026	31,357
Total Liabilities and Equity	$ 253,304	$ 257,138

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Amortized cost	$ 184,995	$ 183,432

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Consolidated Statement of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Insurance revenues	$ 2,859	$ 3,069	$ 9,117	$ 9,665
Net investment income	2,063	2,216	6,281	6,508
Net realized investment gains	214	793	538	1,697
Other revenues	51	48	148	133
Total Revenues	5,187	6,126	16,084	18,003
Benefits and expenses
Policyholder benefits	3,794	3,514	10,812	10,729
Interest credit to policyholders	18	215	225	329
Operating costs and expenses	2,307	1,905	6,638	5,899
Amortization of deferred acquisition and sales inducement costs	313	402	1,210	1,526
Taxes, licenses and fees	173	162	571	554
Dividends to policyholders	20	18	51	49
Total Benefits and Expenses	6,625	6,216	19,507	19,086
Net loss before taxes	(1,438)	(90)	(3,423)	(1,083)
Tax expense	3	5	12	19
Net loss	(1,441)	(95)	(3,435)	(1,102)
Other Comprehensive Income (Loss), net of tax:
Unrealized holding gains (losses) arising during the year (net of tax)	(1,221)	124	(7,884)	1,106
Adjustment to deferred acquisition costs (net of tax)	171	9	988	(133)
Other Comprehensive Income (Loss)	(1,050)	133	(6,896)	973
Comprehensive Gain (Loss)	$ (2,491)	$ 38	$ (10,331)	$ (129)
Basic loss per common share	$ (0.41)	$ (0.03)	$ (0.97)	$ (0.31)
Diluted loss per common share	$ (0.41)	$ (0.03)	$ (0.97)	$ (0.31)

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Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (1,441)	$ (95)	$ (3,435)	$ (1,102)
Adjustments to reconcile net loss to net cash used in operating activities:
Realized investment gains, net	(214)	(793)	(538)	(1,697)
Amortization on investments	(11)	(15)	(51)	(61)
Depreciation	45	66	182	203
Deferred taxes		1	1	1
Deferred insurance acquisition costs	(446)	(616)	(1,458)	(1,869)
Deferred sales inducement costs	(64)	(142)	(265)	(405)
Interest and amortization of deferred acquisition and sales inducement costs	313	402	1,210	1,526
Change in value of derivatives and other	(91)	(6)	6	(69)
Change in accrued investment income	(70)	(75)	(112)	(88)
Change in receivables	(72)	(692)	(1,951)	(2,147)
Change in reinsurance recoverable	51	(56)	156	(52)
Change in prepaid reinsurance premiums	(8)	(137)	(29)	(173)
Change in policy benefits	(16)	755	1,385	2,405
Change in unearned revenue	8	(4)	(22)	(12)
Change in deferred reinsurance settlements	(99)	(34)	(222)	(142)
Change in other assets and liabilities	(1,028)	(538)	(752)	64
Net cash used in operating activities	(3,143)	(1,979)	(5,895)	(3,618)
Proceeds from investments sold or matured:
Fixed maturity securities	2,377	4,955	10,574	18,301
Equity securities		808	261	2,349
Derivatives	237	81	443	84
Policy loans	119	(30)	253	121
Costs of investments purchased:
Fixed maturity securities	(2,045)	(7,498)	(12,071)	(26,436)
Equity securities	(20)	(105)	(61)	(272)
Derivatives	(123)	(92)	(325)	(182)
Real estate additions	(46)	(12)	(107)	(15)
Purchase of property and equipment	(4)	(8)	(96)	(35)
Net cash (used in) provided by investing activities	495	(1,901)	(1,129)	(6,085)
Policyholder account balances:
Deposits	2,902	5,604	11,290	14,708
Withdrawals	(1,838)	(2,315)	(6,022)	(7,064)
Receipts from promissory note	1,050		1,050
Net transfers from separate accounts	87		87	260
Net cash provided by financing activities	2,201	3,289	6,405	7,904
Net decrease in cash	(447)	(591)	(619)	(1,799)
Cash, beginning of period	3,913	7,181	4,085	8,389
Cash, end of period	$ 3,466	$ 6,590	$ 3,466	$ 6,590

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Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

Federal Life Group, Inc. (“FLG”, “we”, “us”, “our” or the “Company”) is a newly created Pennsylvania corporation organized to be the stock holding company for Federal Life Mutual Holding Company and its subsidiaries (the “Predecessor”) following the conversion of Federal Life Mutual Holding Company from mutual to stock form (the “Conversion”). FLG was formed so that it could acquire all of the capital stock of the Predecessor as part of the Conversion. Prior to the Conversion, FLG was not engaged in any significant operations and did not have any assets or liabilities. After the Conversion, which was completed on December 11, 2018, FLG’s primary assets are the outstanding capital stock of the Predecessor and a portion of the net proceeds of the Company’s initial public offering (“IPO”) which was completed on December 11, 2018. Prior to the Conversion, FLG was a direct, wholly-owned subsidiary of the Predecessor. Following the Conversion, the Company reorganized its corporate structure so that the Predecessor is a direct, wholly owned subsidiary of FLG. In connection with the Conversion, a Form S-1 Registration Statement was filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 23, 2018 and declared effective on November 6, 2018 (the “S-1”).

In 2016, a subsidiary of the Predecessor, Federal Life Insurance Company (“Federal Life”), completed a reorganization in which it converted from a mutual to a stock insurance company within a newly created mutual holding company structure. As part of this reorganization, the Predecessor was formed as an Illinois mutual insurance holding company and Federal Life continued its existence as an Illinois stock life insurance company. All of the shares of Federal Life were issued to FEDHO Holding Company (“FEDHO”), an intermediate holding company that, in turn, was a wholly-owned subsidiary of the Predecessor. In the reorganization, policyholders’ membership interests in Federal Life automatically became membership interests in the Predecessor, but policyholders’ contractual rights remained with Federal Life. Since the effective date of the reorganization, each person who has become a Federal Life individual or group policyholder has automatically become a member of the Predecessor and has retained that membership interest so long as the Federal Life policy owned by the member remains in force.

The accompanying consolidated financial statements are of the Predecessor. FLG is the successor to the Predecessor’s operations, which represents substantially all of the business of FLG. Refer to Note 13 for further discussion of subsequent events impacting the Company’s organization and presentation.

The consolidated statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions for Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements; however, they have been prepared consistent with the accounting policies described in the S-1 for the period ended June 30, 2018. The consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly our financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for the three and nine month periods ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. All significant intercompany accounts and transactions have been eliminated. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements for the year ended December 31, 2017, which include all disclosures required by GAAP. Therefore, these interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Predecessor, which are included in the S-1. For the avoidance of doubt, no portion of the S-1 is incorporated by reference into this Form 10-Q.

Federal Life is a stock life insurance company domiciled in Illinois. Federal Life was incorporated on September 8, 1899 under the laws of the State of Illinois and commenced business on May 5, 1900. Federal Life’s in force business is primarily comprised of traditional life policies (term insurance, whole life insurance, non-medical health insurance, and group life insurance), interest sensitive contracts and fixed deferred annuity contracts. Federal Life is licensed to sell new business in the District of Columbia and all states except Maine, Massachusetts, New Hampshire, New York and Vermont. Although Federal Life is licensed to sell products in 45 states, its primary markets are Illinois, Michigan, Ohio, California, Florida, Texas, and Wisconsin.

Federal Life primarily sells its interest sensitive life, whole life, term life, fixed and indexed annuities through a network of independent agents.

Federal Life has two wholly-owned non-insurance subsidiaries: Americana Realty Company (“Americana”) and FED Mutual Financial Services, Inc.

Americana owns mineral rights in Arkansas, Georgia, Oklahoma and Texas. Americana earns royalty revenues from energy producers that are under agreement to drill for and produce oil and gas products on properties where Americana owns mineral rights.

FED Mutual Financial Services, Inc. is a Financial Industry Regulatory Authority (“FINRA”) licensed broker/dealer that was established to distribute the Predecessor’s variable annuity products.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. The most significant estimates include those used in determining the capitalization and amortization of deferred policy acquisition costs (“DAC”), the valuation of investments, the liability for account balances (interest sensitive life contracts and annuities) and future policy benefits (traditional life contracts, immediate annuities, supplemental contracts with life contingencies, and accident and health), and the provision for income taxes. Actual results could differ from those estimates.

Investments

Realized capital gains and losses on sales of investments include fixed maturity securities with calls and prepayments and are determined on the basis of specific security identification.

Revisions

Certain revisions have been made to previously reported June 30, 2018 consolidated statements of cash flows to reclassify $1,131 previously reported as other investing activities from investing activities to operating activities. This revision is embedded within the consolidated statement of cash flows for the three months and nine months ended September 30, 2018, and had no impact on previously reported net income or cash at the end of period.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Emerging Growth Company

The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “Jobs Act”). As an emerging growth company, the Company utilizes the extended transition period provided in the Securities Act of 1933 for complying with new or revised accounting standards. Under this accommodation the Company may early adopt a new or revised accounting standard only if early adoption is permitted by the standard. Changes in accounting principles issued but not yet adopted described below reflect the Company’s status as an Emerging Growth Company and the extended adoption period allowed for such companies.

Smaller Reporting Company

Additionally, we qualify as a “smaller reporting company” as defined by the SEC. In some instances, this permits the Company to provide scaled disclosures under Regulation S-K and Regulation S-X.

Changes in Accounting Principles – Adopted

In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides an option to reclassify stranded tax effects within accumulated other comprehensive income or loss (“AOCI”) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate described in the “Income Tax Reform” section below is recorded. ASU No. 2018-02 is effective for fiscal years beginning after December 15, 2018 and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the Tax Act is recognized. The Predecessor early adopted ASU No. 2018-02 effective December 31, 2017 using the portfolio method, which resulted in the reclassification of $805,000 of stranded tax effects from AOCI to retained earnings within the Predecessor’s consolidated financial statements.

Changes in Accounting Principles – Issued but Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02 “Leases”, that will require recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, This ASU affects accounting and disclosure more dramatically for lessees as accounting for lessors is mainly unchanged. This ASU is effective January 1, 2020. The adoption of ASU No. 2016-02 will not have an impact on the Company’s consolidated financial statements as we do not have any leases.

In August 2018, the FASB issued ASU No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts,” which revises certain aspects of the measurement models and disclosure requirements for long duration insurance and investment contracts. The FASB’s objective in issuing this ASU is to improve, simplify, and enhance the accounting for long-duration contracts. The revisions include updating cash flow assumptions in the calculation of the liability for traditional life products, introducing the term ‘market risk benefit’ (“MRB”) and requiring all contract features meeting the definition of an MRB to be measured at fair value, simplifying the method used to amortize DAC and deferred sales inducement costs (“DSIC”) to a constant basis over the expected term of the related contracts rather than based on gross profits and enhancing disclosure requirements. ASU is effective on January 1, 2022, the transition date (the remeasurement date) is January 1, 2020. Early adoption of this ASU is permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities,” which changes the recognition and presentation requirements of hedge accounting. ASU No. 2017-12 is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of ASU No. 2017- 12 is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs: Premium Amortization of Purchased Callable Debt Securities,” which requires that certain premiums on callable debt securities be amortized to the earliest call date. ASU No. 2017-08 is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued, regarding recognition of unrealized gains and losses through income, ASU No. 2016-13 “Financial Instruments – Credit Losses: Measurement of Credit Losses of Financial Instruments,” which provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposure. The model requires an entity to estimate lifetime credit losses related to such assets and exposure based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The guidance also modifies the current other-than- temporary impairment guidance for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment and replaces existing guidance for purchased credit deteriorated loans and debt securities. ASU No. 2016-13 is effective for annual reporting periods beginning after December 15, 2020 with early adoption permitted for annual periods beginning after December 15, 2018. The Company is currently assessing the impact of the guidance on its consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,” which revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with the fair value of financial instruments. ASU No. 2016-01 is effective for non-public companies for annual periods beginning after December 15, 2018. The Company is currently assessing the impact of the guidance on its consolidated financial statements.

In May 2014, the FASB issued an ASU 2014-09 “Revenue from Contracts with Customers,” related to revenue arising from contracts with customers. This ASU, which replaces most current revenue recognition guidance, including industry specific guidance, prescribes that an entity should recognize revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU will be effective on January 1, 2019 and may be adopted using either a full retrospective or a modified retrospective approach. While the Company is still evaluating the effect, this ASU will have on our consolidated financial statements, we expect the impact will be immaterial as revenues related to insurance contracts and investment contracts are excluded from its scope.

Income Tax Reform

As a result of the Tax Act, the federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018.

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Investments and Related Income

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments and Related Income

4. Investments and Related Income

The Predecessor’s principal investments are in fixed income and equity securities and policy loans.

The following table presents the amortized cost, gross unrealized gains and (losses) and fair value of the Predecessor’s fixed maturity and equities as of September 30, 2018 and December 31, 2017:

	Predecessor
	September 30, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
	(Dollars in thousands)
U.S. government	$	4,066	$	143	$	(231	)	$	3,978
States, political subdivisions, other		28,236		383		(871	)		27,748
Corporate		107,090		832		(2,432	)		105,490
Residential mortgage-backed securities		41,828		393		(1,597	)		40,624
Commercial mortgage-backed securities		3,775		53		(171	)		3,657
Total fixed maturity securities		184,995		1,804		(5,302	)		181,497
Equity securities		4,504		2,125		(9	)		6,620
Total fixed maturity and equity securities	$	189,499	$	3,929	$	(5,311	)	$	188,117
	Predecessor
	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
	(Dollars in thousands)
U.S. government	$	4,075	$	207	$	(120	)	$	4,162
States, political subdivisions, other		26,850		876		(112	)		27,614
Corporate		106,479		3,459		(543	)		109,395
Residential mortgage-backed securities		41,818		1,480		(212	)		43,086
Commercial mortgage-backed securities		4,210		26		(41	)		4,195
Total fixed maturity securities		183,432		6,048		(1,028	)		188,452
Equity securities		4,443		1,766		—			6,209
Total fixed maturity and equity securities	$	187,875	$	7,814	$	(1,028	)	$	194,661

The scheduled maturities for fixed income securities as of September 30, 2018 and December 31, 2017 are as follows:

	Predecessor				Predecessor
	September 30, 2018				December 31, 2017
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars in thousands)
Due in one year or less	$	4,251	$	4,293	$	2,247	$	2,288
Due after one year through five years		41,378		41,840		40,926		42,809
Due after five years through ten years		70,483		68,627		66,739		68,151
Due after ten years		23,280		22,456		27,492		27,923
Mortgage-backed securities		45,603		44,281		46,028		47,281
Total	$	184,995	$	181,497	$	183,432	$	188,452

Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.

The following table presents the sources of fixed maturity proceeds and the related gross investment gains (losses) for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor								Predecessor
	for the three month period ended								for the nine month period ended
	September 30, 2018								September 30, 2018
	Fixed			Equity		Derivative			Fixed			Equity		Derivative
	Maturities			Securities		Instruments			Maturities			Securities		Instruments
	(Dollars in thousands)
Proceeds from sales or maturities	$	2,377		$	—	$	237		$	10,574		$	261	$	443
Gross gains from sales or maturities		78			—		341			153			261		680
Other-than-temporary-impairment (OTTI) losses		—			—		—			(89	)		—		—
Gross losses from sales or maturities		(9	)		—		(196	)		(48	)		—		(419	)
	Predecessor								Predecessor
	for the three month period ended								for the nine month period ended
	September 30, 2017								September 30, 2017
	Fixed			Equity		Derivative			Fixed			Equity		Derivative
	Maturities			Securities		Instruments			Maturities			Securities		Instruments
	(Dollars in thousands)
Proceeds from sales or maturities	$	4,955		$	808	$	81		$	18,301		$	2,349	$	84
Gross gains from sales or maturities		21			725		82			164			1,503		91
Gross losses from sales or maturities		(2	)		—		(33	)		(21	)		—		(40	)

For the nine month period ended September 30, 2018 a credit loss of $89,000 was recognized through realized losses because the Predecessor did not expect to fully recover the amortized cost value of two fixed income securities in the commercial mortgage backed sector that were held as available for sale. It was determined that that best estimate of the net present value of the future cash flow expected to be collected from these securities was significantly below their amortized cost values. A number of factors were analyzed to determine whether these impairments should be considered other-than-temporary, including but not limited to, fair market values of the securities, changes in fair market values, credit ratings, and an analysis of the underlying loan collateral with an assessment of the likelihood of full repayment of principal and interest. The credit loss reported was equal to the difference between amortized book value and the best estimate of the net present value of the projected cash flow expected to be recovered. The Company will evaluate future recovery estimates on a periodic basis.

The following is a presentation of credit related other than temporary impairments (“OTTI”) recognized in earnings for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor		Predecessor		Predecessor		Predecessor
	for the three month		for the nine month		for the three month		for the nine month
	period ended		period ended		period ended		period ended
	September 30, 2018		September 30, 2018		September 30, 2017		September 30, 2017
	(Dollars in thousands)
Credit related OTTI not previously reported		—		89		—		—
Balance at end of period	$	—	$	89	$	—	$	—

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made a decision to sell or whether it is probable that the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets any of these criteria, the security’s decline in fair value is deemed other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not that the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates if it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security by comparing the estimated recovery value calculated by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, with the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss deemed to be related to other factors and recognized in AOCI.

For equity securities, the Company considers various factors, including whether the Company has the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the equity security’s decline in fair value is considered other than temporary and is recorded in earnings.

The Company’s portfolio monitoring process includes a quarterly review of all securities through a screening process which identifies instances where the fair value compared to amortized cost for fixed income securities and cost for equity securities is below established thresholds, and also includes the monitoring of other criteria such as ratings, ratings downgrades or payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition of the issue or issuer and its future earnings potential. Some of the factors considered in evaluating whether a decline in fair value is other than temporary are: 1) the length of time and extent to which the fair value has been less than amortized cost for fixed income securities, or cost for equity securities; 2) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; and 3) the specific reasons that a security is in a significant unrealized loss position, including overall market conditions which could affect liquidity.

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017:

	Predecessor
September 30, 2018	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of securities	Value		Loss			Value		Loss			Value		Loss
	(Dollars in thousands)
U.S. government	$	—	$	—		$	2,825	$	(231	)	$	2,825	$	(231	)
States, political subdivisions, other		14,256		(675	)		2,546		(196	)		16,802		(871	)
Corporate		52,763		(1,696	)		8,985		(736	)		61,748		(2,432	)
Residential mortgage-backed securities		19,642		(1,051	)		5,703		(546	)		25,345		(1,597	)
Commercial mortgage-backed securities		1,982		(67	)		1,571		(104	)		3,553		(171	)
Total	$	88,643	$	(3,489	)	$	21,630	$	(1,813	)	$	110,273	$	(5,302	)
	Predecessor
December 31, 2017	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of securities	Value		Loss			Value		Loss			Value		Loss
	(Dollars in thousands)
U.S. government	$	1,161	$	(31	)	$	1,782	$	(89	)	$	2,943	$	(120	)
States, political subdivisions, other		8,773		(86	)		714		(26	)		9,487		(112	)
Corporate		10,935		(169	)		6,853		(374	)		17,788		(543	)
Residential mortgage-backed securities		11,517		(126	)		2,263		(86	)		13,780		(212	)
Commercial mortgage-backed securities		2,039		(27	)		77		(14	)		2,116		(41	)
Total	$	34,425	$	(439	)	$	11,689	$	(589	)	$	46,114	$	(1,028	)

It is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost bases, which may be maturity.

The following table summarizes OTTI for the three and nine month periods ended September 30, 2018 and September 30, 2017, by asset type:

	Predecessor
	Number of securities		Total OTTI Losses			Portion of OTTI Losses Recognized in (from) Other Comprehensive Income		Net OTTI Losses Recognized in Operation
	(Dollars in thousands)
Three months ended September 30, 2018
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—
Three months ended September 30, 2017
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—
Nine months ended September 30, 2018
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		2		(89	)		—		(89	)
	$	2	$	(89	)	$	—	$	(89	)
Nine months ended September 30, 2017
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—

Net Investment Income

Net investment income for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively, is as follows:

	Predecessor						Predecessor
	for the three month periods ended						for the nine month periods ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017
	(Dollars in thousands)
Fixed maturity securities	$	1,824		$	1,833		$	5,513		$	5,585
Equity securities		45			56			127			150
Real estate		26			38			98			112
Cash equivalents		19			12			38			24
Policy loans		178			181			534			543
Other		129			256			414			556
Subtotal		2,221			2,376			6,724			6,970
Investment expense		(158	)		(160	)		(443	)		(462	)
Net investment income	$	2,063		$	2,216		$	6,281		$	6,508

Unrealized Capital Gains (Losses)

Unrealized net capital gains and losses included in AOCI at September 30, 2018 and December 31, 2017 were as follows:

	Predecessor
	September 30, 2018
								Net
	Fair		Gross Unrealized					Unrealized
	Value		Gains		Losses			Gain (Loss)
	(Dollars in thousands)
Fixed income securities	$	181,497	$	1,804	$	(5,302	)	$	(3,498	)
Equity securities		6,620		2,125		(9	)		2,116
Net unrealized capital losses								$	(1,382	)
	Predecessor
	December 31, 2017
								Net
	Fair		Gross Unrealized					Unrealized
	Value		Gains		Losses			Gain (Loss)
	(Dollars in thousands)
Fixed income securities	$	188,452	$	6,048	$	(1,028	)	$	5,020
Equity securities		6,209		1,766		—			1,766
Net unrealized capital gains								$	6,786

At September 30, 2018 and December 31, 2017, securities with a market value of approximately $4.5 million and $4.7 million, respectively, were on deposit with governmental agencies as required by State Insurance Departments.

Credit Risk

The Company generally strives to maintain a diversified invested asset portfolio but is exposed to credit and other types of risks related to its holding in fixed income and equity securities. Such risk may be related to individual companies, sectors, or entire asset classes. The Company manages this risk by holding a diversified portfolio of securities and sectors and by limiting the amount of exposure to a single issuer of credit. For both September 30, 2018 and December 31, 2017, approximately 25% of the Predecessor’s investments in fixed maturities were invested in commercial and residential mortgage-backed securities and approximately 58% and 58% in corporate bonds, respectively. Approximately 5% of the fixed income maturities were rated below investment grade. There is certain concentration risk from investments in companies that are engaged in similar activities and have similar economic characteristics. The largest corporate bond sector exposures at September 30, 2018 are consumer non-cyclical consisting of 11% of the total fixed income portfolio, banks 6%, communications 6%, real estate 5%, and energy 5%. The largest corporate bond sector exposures at December 31, 2017 were consumer non-cyclical consisting of 12% of the total fixed income portfolio, banks 6%, energy 6%, communications 5%, and real estate 5%. The Company uses equity index options to fully hedge its equity market exposure to index annuity products. These are exchange-traded options and there is no credit risk.

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Derivative Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

5. Derivative Instruments

The Company uses derivatives to hedge its equity market exposure to index annuity products which are contracts that earn a return based on the change in the value of the S&P 500 index between annual index point dates. The Company buys and sells listed equity and index call options and call option spreads and there is no credit risk. The net premium is paid up front and there are no additional cash requirements or additional contingent liabilities. These contracts are held at fair market value on the Company’s balance sheet. At September 30, 2018 and December 31, 2017, these derivative hedges had a net market value of $517,000 and $395,000, with notional amounts of $11.9 million and $8.5 million on call options purchased and $8.2 million and $6.0 million on call options written respectively.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

6. Fair Value of Financial Instruments

Fair value estimates are made at specific points in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale, at one time, the Company’s entire holding of a particular financial instrument. Although fair value estimates are calculated using assumptions that management believes are appropriate, changes in assumptions could significantly affect estimates.

Fair value estimates are determined for existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and certain liabilities that are not considered financial instruments. Accordingly, the aggregate fair value estimates presented do not represent the underlying value of the Company.

The Company has procedures in place to validate the fair values received from the independent pricing service. The Company assesses whether prices received represent a reasonable estimate of fair value through various controls designed to ensure that valuations represent a fair price, including calculation of portfolio returns, comparison of returns to corresponding benchmark returns, analysis of periodic changes in market prices, evaluation of corresponding market yields and spread levels, and comparing prices from multiple pricing sources. On an ongoing basis, the Company monitors the pricing service valuation methods and evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy. Most prices provided by the pricing services are classified into Level 2 due to their use of market observable inputs.

In addition, tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. The following methods and assumptions were used by the Predecessor in estimating the fair value of its financial instruments:

Fixed maturity and equity securities: Fair values were determined by an independent pricing service and are downloaded from Clearwater Analytics. The Predecessor did not own any securities for which a fair value was not provided by the pricing service or a custody statement. Fair values are checked for reasonableness.

If a fair value had not been provided for a security, the Predecessor would use a fair value estimated from yield data relating to instruments or securities with similar characteristics or as determined in good faith by the Predecessor’s investment advisor, DWS.

Derivative instruments: Fair values were determined by an independent pricing service and are downloaded from Clearwater Analytics. Fair values are checked for reasonableness.

Policy loans: The carrying value of policy loans approximates fair value.

Cash and cash equivalents: The carrying value of cash and cash equivalents approximates fair value.

Policyholder account balance: For deposit liabilities, the fair value was based on the amount payable on demand at the reporting date and approximates fair value.

Amounts related to the Predecessor’s financial instruments as of September 30, 2018 and December 31, 2017 were as follows:

	Predecessor				Predecessor
	September 30, 2018				December 31, 2017
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(Dollars in thousands)
Financial instruments recorded as assets:
Fixed maturity securities	$	181,497	$	181,497	$	188,452	$	188,452
Equity securities		6,620		6,620		6,209		6,209
Policy loans		9,599		9,599		9,852		9,852
Derivative instruments		517		517		395		395
Cash and cash equivalents		3,466		3,466		4,085		4,085
Separate account		24,434		24,434		24,779		24,779
Financial instruments recorded as liabilities:
Policyholder account balance:
Interest sensitive life contracts		41,337		41,337		41,078		41,078
Annuities		73,805		73,805		68,745		68,745
Dividend accumulations and other		6,830		6,830		7,076		7,076
Separate account		24,434		24,434		24,779		24,779

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1 – Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2 – Assets and liabilities whose values are based on the following: Quoted prices for similar assets or liabilities in active markets;

(a) Quoted prices for identical or similar assets or liabilities in markets that are not active; or

(b) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3 – Assets and liabilities whose values are based on prices or valuation techniques that require that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

Summary of significant valuation techniques and inputs for assets and liabilities measured at fair value on a recurring basis:

Level 1 measurements:

Fixed maturity securities: Comprised of U.S. Treasury and GNMA agency securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

Equities: Comprised of actively traded, exchange-listed equities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

Derivative instruments: Comprised of actively traded, exchange-listed derivatives. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.

Cash Equivalents: Comprised of money market funds. Market values for the money market funds are obtained from the fund managers.

Separate account assets: Comprised of actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Market values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements:

Fixed maturity securities:

States, political subdivisions, and corporate securities: As valuation technique the pricing vendor employs multi-dimensional relational application model which uses standard inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The pricing vendor also monitors market indicators, and industry and economic events. For high yield corporate securities, observations of equity and credit default swap curves are also used.

Residential mortgage-backed securities: As valuation technique the pricing vendor employs option-adjusted spread model and prepayment model as well as volatility driven, multi-dimensional spread tables using standard inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications plus new issue data, monthly prepayment information, and collateral performance. The pricing vendor also monitors market indicators, and industry and economic events.

Commercial mortgage-backed securities: As valuation technique the pricing vendor employs multi-dimensional spread table and price tables using standard inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications plus new issue data, monthly prepayment information, collateral performance, and real estate analysis from third party. The pricing vendor also monitors market indicators, and industry and economic events.

Level 3 measurements:

Equities: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields, collateral performance, credit spreads, and other estimates including custody statements.

The following table presents the Predecessor’s securities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017:

	Predecessor
	Recurring Fair Value Measurements
	at September 30, 2018 Using:
Description	Fair Values		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets
Fixed maturity securities:
U.S. government	$	3,978	$	3,978	$	—	$	—
States, political subdivisions, other		27,748		—		27,748		—
Corporate		105,490		—		105,490		—
Residential mortgage-backed securities		40,624		—		40,624		—
Commercial mortgage-backed securities		3,657		—		3,657		—
Total fixed maturities		181,497		3,978		177,519		—
Equities		6,620		4,350		—		2,270
Derivative instruments		517		517		—		—
Cash equivalents (1)		3,466		3,466		—		—
Separate accounts (2)		24,434		24,434		—		—
Total	$	216,534	$	36,745	$	177,519	$	2,270
	Predecessor
	Recurring Fair Value Measurements
	at December 31, 2017 Using:
Description	Fair Values		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Fixed maturity securities:
U.S. government	$	4,162	$	4,162	$	—	$	—
States, political subdivisions, other		27,614		—		27,614		—
Corporate		109,395		—		109,395		—
Residential mortgage-backed securities		43,086		—		43,086		—
Commercial mortgage-backed securities		4,195		—		4,195		—
Total fixed maturities		188,452		4,162		184,290		—
Equities		6,209		4,027		—		2,182
Derivative instruments		395		395		—		—
Cash equivalents (1)		4,085		4,085		—		—
Separate accounts (2)		24,779		24,779		—		—
Total	$	223,920	$	37,448	$	184,290	$	2,182

(1) Cash equivalents are invested in money market funds with daily liquidity. The estimated fair value of cash equivalents is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 asssets.

(2) Separate account assets are invested in money market funds with daily liquidity. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 assets.

The following table shows quantitative information about significant unobservable inputs related to the Level 3 fair value measurements reported in the tables used as of September 30, 2018 and December 31, 2017:

Fair Value at September 30, 2018			Primary Valuation	Significant	Range						Weighted
			Technique(s)	Unobservable Inputs	Min			Max			Average
(Dollars in thousands)
Rreef America REIT II	$	2,234	Discounted cash flows	Discount rate		4.50	%		8.75	%		6.42	%
				Terminal capitalization rate		4.25	%		8.00	%		5.45	%
Fair Value at December 31, 2017			Primary Valuation	Significant	Range						Weighted
			Technique(s)	Unobservable Inputs	Min			Max			Average
(Dollars in thousands)
Rreef America REIT II	$	2,150	Discounted cash flows	Discount rate		5.50	%		9.00	%		6.61	%
				Terminal capitalization rate		4.00	%		8.25	%		5.62	%

The following table presents the rollforward of Level 3 assets held at fair value on a recurring basis for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor				Predecessor
	for the three month periods ended				for the nine month periods ended
	9/30/2018		9/30/2017		9/30/2018		9/30/2017
	(Dollars in thousands)
Balance, beginning of period	$	2,239	$	2,141	$	2,182	$	3,169
Gains included in net income		—		—		—		396
Settlements		—		—		—		(1,000	)
Unrealized gains (losses) in OCI		31		—		88		(424	)
Balance, end of period	$	2,270	$	2,141	$	2,270	$	2,141

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Accumulated Other Comprehensive Income

7. Accumulated Other Comprehensive Income

The components of AOCI are as follows:

	Predecessor
	Unrealized Investment Gains (losses)			Shadow DAC			Accumulated Other Comprehensive Income (loss)
	(Dollars in thousands)
Balance, December 31, 2016	$	3,997		$	(448	)	$	3,549
Available-for-sale investment gains (losses) arising during the year:
Fixed maturity securities net of tax of $227		440			—			440
Equity securities net of tax of $9		18			—			18
Change in Shadow DAC net of tax benefit of $28		—			(55	)		(55	)
Cumulative effect of adoption of new accounting principle (see Note 3)		904			(99	)		805
Balance, December 31, 2017		5,359			(602	)		4,757
Available-for-sale investment gains (losses) arising during the year:
Fixed maturity securities net of tax benefit of $370		(8,148	)		—			(8,148	)
Equity securities net of tax of $70		264			—			264
Change in Shadow DAC net of tax of $263		—			988			988
Balance, September 30, 2018	$	(2,525	)	$	386		$	(2,139	)

AOCI includes gross unrealized gains and losses on debt and equity securities, as well as shadow DAC. This value is presented net of tax.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Effective 2016, the Predecessor files a consolidated federal income tax return under Federal Life Mutual Holding Company as the ultimate parent. Tax years 2014 through 2017 are subject to examination by the IRS. Prior to 2016, consolidated federal income tax returns were filed under Federal Life as the ultimate parent.

The Predecessor had no liability for unrecognized tax benefits at September 30, 2018 or December 31, 2017 and believes it is reasonably possible that the liability will not significantly increase within the next twelve months. No amounts have been accrued for interest or penalties.

The Tax Act limits life reserves for tax purposes to the greater of net surrender value or 92.81 percent of required reserves. It is not estimated that this will have a meaningful impact to the net admitted assets on the Predecessor’s balance sheet.

The federal income tax provisions differ from the amounts determined by multiplying pre-tax income attributable to the Predecessor by the statutory federal income tax rate of 21% for September 30, 2018 and 34% for September 30, 2017, as shown below.

	Predecessor						Predecessor
	for the three month periods ended						for the nine month periods ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017
	(Dollars in thousands)
Income tax benefits at statutory rate	$	(302	)	$	(31	)	$	(719	)	$	(368	)
Other		305			36			731			387
Income tax (benefit) expense	$	3		$	5		$	12		$	19
Effective tax rate		0.2	%		5.6	%		0.4	%		1.8	%

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Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

9. Commitments and Contingent Liabilities

The Company is involved in various legal actions for which it will establish liabilities where appropriate. In the opinion of the Company’s management, based on the advice of legal counsel, the resolution of such litigation is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.

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Debt and Federal Home Loan Bank Advances

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt and Federal Home Loan Bank Advances

10. Debt and Federal Home Loan Bank Advances

Effective June 29, 2018, the Predecessor issued an exchangeable promissory note (the “Promissory Note”) to Insurance Capital Group with a principal amount of up to $2.0 million and a 3.75% interest rate. Under this note, $1.05 million in advances were outstanding as of September 30, 2018. The outstanding principal balance of the Promissory Note automatically converted into 105,000 shares of common stock of FLG at a price of $10.00 per share upon the completion of the Conversion.

Federal Life is a member of the Federal Home Loan Bank (FHLB) and has access to various advances and other funding products. As of September 30, 2018 and December 31, 2017, Federal Life had no advances or other credit outstanding with the FHLB.

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Related Party Transactions

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions

11. Related Party Transactions

All the outstanding shares of Americana and FED Mutual Financial Services, Inc. are owned by Federal Life. Federal Life is owned by FEDHO, which is controlled by Federal Life Mutual Holding Company. For the three months ended September 30, 2018, and September 30, 2017, Americana paid $285,000 and $74,000, respectively, in common stock dividends to Federal Life. For the nine months ended September 30, 2018 and September 30, 2017, Americana paid $404,000 and $828,000 respectively in common stock dividends for Federal Life. As of September 30, 2018, and December 31, 2017, Americana reported $82,000 and $41,000, respectively, as dividends due to Federal Life. This amount is generally settled within 60 days. For the three and nine month periods ended September 30, 2018 and September 30, 2017, Federal Life Mutual Holding Company paid $5,000 and $15,000 in interest to Federal Life on a Guaranty Fund Note that was issued in 2016 in order to meet capital requirements. Federal Life provides financial support for FED Mutual Financial Services, Inc. to fund its operations. The related party transactions described above eliminate in consolidation.

The Promissory Note described in Note 10 above converted into shares of the Company and were issued to Insurance Capital Group on December 11, 2018. As a result, Insurance Capital Group is a controlling shareholder of the Company.

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Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

12. Earnings Per Share

	Pro forma for the three months ended September 30,						Pro forma for the nine months ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Numerator:
Net loss - numerator for earnings per common share	$	(1,441	)	$	(95	)	$	(3,435	)	$	(1,102	)
Denominator:
Weighted average basic common shares outstanding		3,530,150			3,530,150			3,530,150			3,530,150
Effect of dilutive securities:
Restricted stock and restricted stock units		140,000			140,000			140,000			140,000
Denominator for earnings per diluted common share		3,670,150			3,670,150			3,670,150			3,670,150
Basic loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)
Diluted loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)

The Pro Forma amounts disclosed above include 140,000 shares that were granted as restricted stock awards to the Company’s executive officers at the closing of the offerings associated with the Company’s IPO. No effect has been given to any issuances of additional shares in connection with the grant of options or awards of stock under the stock-based incentive plan adopted by the Company. Under the stock-based incentive plan, the Company may issue 480,000 shares of its common stock. Of this, 140,000 shares were granted as restricted stock awards and 215,000 shares were used to award stock options under the stock-based incentive plan. The issuance of authorized but unissued shares of common stock upon the exercise of stock options or for purposes of making restricted stock awards under the stock-based incentive plan instead of open market purchases would dilute the voting interests of existing shareholders by approximately 12%.

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Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On March 8, 2018, the Board of Directors approved a plan of conversion (the “Plan of Conversion”) where the Predecessor would convert from mutual to stock form and become a subsidiary of FLG. In connection with the Conversion, the S-1 was filed with the SEC on July 23, 2018 and declared effective on November 6, 2018. The Plan of Conversion was approved by the Illinois Department of Insurance on October 30, 2018.

A Special Meeting of Eligible Members of the Predecessor was held on December 11, 2018. During this meeting, the Plan of Conversion was adopted by vote and the Predecessor converted from a mutual insurance holding company to a stock company. In addition, effective December 11, 2018, FLG completed its IPO in which it issued 3,530,150 of its common shares at $10.00 per share for gross proceeds of $35,302,000. The net proceeds were $32,298,000 after fees of $1,954,000 and $1,050,000 from the conversion of the Promissory Note described in Note 10 and below.

Effective June 29, 2018, the Predecessor issued the Promissory Note as described in Note 10. The Promissory Note converted into 105,000 common shares effective December 11, 2018. Additionally, on November 15, 2018, Federal Life Group and Federal Life Insurance Company entered into employment agreements with members of senior management that became effective on December 11, 2018 and filed the agreements as exhibits to a Form 8-K on December 17, 2018.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. The most significant estimates include those used in determining the capitalization and amortization of deferred policy acquisition costs (“DAC”), the valuation of investments, the liability for account balances (interest sensitive life contracts and annuities) and future policy benefits (traditional life contracts, immediate annuities, supplemental contracts with life contingencies, and accident and health), and the provision for income taxes. Actual results could differ from those estimates.

Investments

Investments

Realized capital gains and losses on sales of investments include fixed maturity securities with calls and prepayments and are determined on the basis of specific security identification.

Revisions

Revisions

Certain revisions have been made to previously reported June 30, 2018 consolidated statements of cash flows to reclassify $1,131 previously reported as other investing activities from investing activities to operating activities. This revision is embedded within the consolidated statement of cash flows for the three months and nine months ended September 30, 2018, and had no impact on previously reported net income or cash at the end of period.

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Investments and Related Income (Tables)

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost, Gross Unrealized Gains and (Losses) and Fair Value of the Predecessor's Fixed Maturity and Equities

The following table presents the amortized cost, gross unrealized gains and (losses) and fair value of the Predecessor’s fixed maturity and equities as of September 30, 2018 and December 31, 2017:

	Predecessor
	September 30, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
	(Dollars in thousands)
U.S. government	$	4,066	$	143	$	(231	)	$	3,978
States, political subdivisions, other		28,236		383		(871	)		27,748
Corporate		107,090		832		(2,432	)		105,490
Residential mortgage-backed securities		41,828		393		(1,597	)		40,624
Commercial mortgage-backed securities		3,775		53		(171	)		3,657
Total fixed maturity securities		184,995		1,804		(5,302	)		181,497
Equity securities		4,504		2,125		(9	)		6,620
Total fixed maturity and equity securities	$	189,499	$	3,929	$	(5,311	)	$	188,117
	Predecessor
	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
	(Dollars in thousands)
U.S. government	$	4,075	$	207	$	(120	)	$	4,162
States, political subdivisions, other		26,850		876		(112	)		27,614
Corporate		106,479		3,459		(543	)		109,395
Residential mortgage-backed securities		41,818		1,480		(212	)		43,086
Commercial mortgage-backed securities		4,210		26		(41	)		4,195
Total fixed maturity securities		183,432		6,048		(1,028	)		188,452
Equity securities		4,443		1,766		—			6,209
Total fixed maturity and equity securities	$	187,875	$	7,814	$	(1,028	)	$	194,661

Summary of Scheduled Maturities for Fixed Income Securities

The scheduled maturities for fixed income securities as of September 30, 2018 and December 31, 2017 are as follows:

	Predecessor				Predecessor
	September 30, 2018				December 31, 2017
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars in thousands)
Due in one year or less	$	4,251	$	4,293	$	2,247	$	2,288
Due after one year through five years		41,378		41,840		40,926		42,809
Due after five years through ten years		70,483		68,627		66,739		68,151
Due after ten years		23,280		22,456		27,492		27,923
Mortgage-backed securities		45,603		44,281		46,028		47,281
Total	$	184,995	$	181,497	$	183,432	$	188,452

Summary of Fixed Maturity Proceeds and the Related Gross Investment Gains (Losses)

The following table presents the sources of fixed maturity proceeds and the related gross investment gains (losses) for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor								Predecessor
	for the three month period ended								for the nine month period ended
	September 30, 2018								September 30, 2018
	Fixed			Equity		Derivative			Fixed			Equity		Derivative
	Maturities			Securities		Instruments			Maturities			Securities		Instruments
	(Dollars in thousands)
Proceeds from sales or maturities	$	2,377		$	—	$	237		$	10,574		$	261	$	443
Gross gains from sales or maturities		78			—		341			153			261		680
Other-than-temporary-impairment (OTTI) losses		—			—		—			(89	)		—		—
Gross losses from sales or maturities		(9	)		—		(196	)		(48	)		—		(419	)
	Predecessor								Predecessor
	for the three month period ended								for the nine month period ended
	September 30, 2017								September 30, 2017
	Fixed			Equity		Derivative			Fixed			Equity		Derivative
	Maturities			Securities		Instruments			Maturities			Securities		Instruments
	(Dollars in thousands)
Proceeds from sales or maturities	$	4,955		$	808	$	81		$	18,301		$	2,349	$	84
Gross gains from sales or maturities		21			725		82			164			1,503		91
Gross losses from sales or maturities		(2	)		—		(33	)		(21	)		—		(40	)

Summary of Presentation of Credit Related Other Than Temporary Impairments ("OTTI") Recognized in Earnings

The following is a presentation of credit related other than temporary impairments (“OTTI”) recognized in earnings for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor		Predecessor		Predecessor		Predecessor
	for the three month		for the nine month		for the three month		for the nine month
	period ended		period ended		period ended		period ended
	September 30, 2018		September 30, 2018		September 30, 2017		September 30, 2017
	(Dollars in thousands)
Credit related OTTI not previously reported		—		89		—		—
Balance at end of period	$	—	$	89	$	—	$	—

Summary of Fair Value and Gross Unrealized Losses Aggregated by Investment Category

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017:

	Predecessor
September 30, 2018	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of securities	Value		Loss			Value		Loss			Value		Loss
	(Dollars in thousands)
U.S. government	$	—	$	—		$	2,825	$	(231	)	$	2,825	$	(231	)
States, political subdivisions, other		14,256		(675	)		2,546		(196	)		16,802		(871	)
Corporate		52,763		(1,696	)		8,985		(736	)		61,748		(2,432	)
Residential mortgage-backed securities		19,642		(1,051	)		5,703		(546	)		25,345		(1,597	)
Commercial mortgage-backed securities		1,982		(67	)		1,571		(104	)		3,553		(171	)
Total	$	88,643	$	(3,489	)	$	21,630	$	(1,813	)	$	110,273	$	(5,302	)
	Predecessor
December 31, 2017	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of securities	Value		Loss			Value		Loss			Value		Loss
	(Dollars in thousands)
U.S. government	$	1,161	$	(31	)	$	1,782	$	(89	)	$	2,943	$	(120	)
States, political subdivisions, other		8,773		(86	)		714		(26	)		9,487		(112	)
Corporate		10,935		(169	)		6,853		(374	)		17,788		(543	)
Residential mortgage-backed securities		11,517		(126	)		2,263		(86	)		13,780		(212	)
Commercial mortgage-backed securities		2,039		(27	)		77		(14	)		2,116		(41	)
Total	$	34,425	$	(439	)	$	11,689	$	(589	)	$	46,114	$	(1,028	)

Summary of Other Than Temporary Impairment

The following table summarizes OTTI for the three and nine month periods ended September 30, 2018 and September 30, 2017, by asset type:

	Predecessor
	Number of securities		Total OTTI Losses			Portion of OTTI Losses Recognized in (from) Other Comprehensive Income		Net OTTI Losses Recognized in Operation
	(Dollars in thousands)
Three months ended September 30, 2018
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—
Three months ended September 30, 2017
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—
Nine months ended September 30, 2018
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		2		(89	)		—		(89	)
	$	2	$	(89	)	$	—	$	(89	)
Nine months ended September 30, 2017
U.S. government		—		—			—		—
States, political subdivisions, other		—		—			—		—
Corporate		—		—			—		—
Residential mortgage-backed securities		—		—			—		—
Commercial mortgage-backed securities		—		—			—		—
	$	—	$	—		$	—	$	—

Summary of Net Investment Income

Net investment income for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively, is as follows:

	Predecessor						Predecessor
	for the three month periods ended						for the nine month periods ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017
	(Dollars in thousands)
Fixed maturity securities	$	1,824		$	1,833		$	5,513		$	5,585
Equity securities		45			56			127			150
Real estate		26			38			98			112
Cash equivalents		19			12			38			24
Policy loans		178			181			534			543
Other		129			256			414			556
Subtotal		2,221			2,376			6,724			6,970
Investment expense		(158	)		(160	)		(443	)		(462	)
Net investment income	$	2,063		$	2,216		$	6,281		$	6,508

Summary of Unrealized Net Capital Gains and Losses

Unrealized net capital gains and losses included in AOCI at September 30, 2018 and December 31, 2017 were as follows:

	Predecessor
	September 30, 2018
								Net
	Fair		Gross Unrealized					Unrealized
	Value		Gains		Losses			Gain (Loss)
	(Dollars in thousands)
Fixed income securities	$	181,497	$	1,804	$	(5,302	)	$	(3,498	)
Equity securities		6,620		2,125		(9	)		2,116
Net unrealized capital losses								$	(1,382	)
	Predecessor
	December 31, 2017
								Net
	Fair		Gross Unrealized					Unrealized
	Value		Gains		Losses			Gain (Loss)
	(Dollars in thousands)
Fixed income securities	$	188,452	$	6,048	$	(1,028	)	$	5,020
Equity securities		6,209		1,766		—			1,766
Net unrealized capital gains								$	6,786

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Carrying Amount and Fair Value of Financial Instruments

Amounts related to the Predecessor’s financial instruments as of September 30, 2018 and December 31, 2017 were as follows:

	Predecessor				Predecessor
	September 30, 2018				December 31, 2017
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(Dollars in thousands)
Financial instruments recorded as assets:
Fixed maturity securities	$	181,497	$	181,497	$	188,452	$	188,452
Equity securities		6,620		6,620		6,209		6,209
Policy loans		9,599		9,599		9,852		9,852
Derivative instruments		517		517		395		395
Cash and cash equivalents		3,466		3,466		4,085		4,085
Separate account		24,434		24,434		24,779		24,779
Financial instruments recorded as liabilities:
Policyholder account balance:
Interest sensitive life contracts		41,337		41,337		41,078		41,078
Annuities		73,805		73,805		68,745		68,745
Dividend accumulations and other		6,830		6,830		7,076		7,076
Separate account		24,434		24,434		24,779		24,779

Summary of Securities Measured at Fair Value on Recurring Basis

The following table presents the Predecessor’s securities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017:

	Predecessor
	Recurring Fair Value Measurements
	at September 30, 2018 Using:
Description	Fair Values		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets
Fixed maturity securities:
U.S. government	$	3,978	$	3,978	$	—	$	—
States, political subdivisions, other		27,748		—		27,748		—
Corporate		105,490		—		105,490		—
Residential mortgage-backed securities		40,624		—		40,624		—
Commercial mortgage-backed securities		3,657		—		3,657		—
Total fixed maturities		181,497		3,978		177,519		—
Equities		6,620		4,350		—		2,270
Derivative instruments		517		517		—		—
Cash equivalents (1)		3,466		3,466		—		—
Separate accounts (2)		24,434		24,434		—		—
Total	$	216,534	$	36,745	$	177,519	$	2,270
	Predecessor
	Recurring Fair Value Measurements
	at December 31, 2017 Using:
Description	Fair Values		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Fixed maturity securities:
U.S. government	$	4,162	$	4,162	$	—	$	—
States, political subdivisions, other		27,614		—		27,614		—
Corporate		109,395		—		109,395		—
Residential mortgage-backed securities		43,086		—		43,086		—
Commercial mortgage-backed securities		4,195		—		4,195		—
Total fixed maturities		188,452		4,162		184,290		—
Equities		6,209		4,027		—		2,182
Derivative instruments		395		395		—		—
Cash equivalents (1)		4,085		4,085		—		—
Separate accounts (2)		24,779		24,779		—		—
Total	$	223,920	$	37,448	$	184,290	$	2,182

(1) Cash equivalents are invested in money market funds with daily liquidity. The estimated fair value of cash equivalents is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 asssets.

(2) Separate account assets are invested in money market funds with daily liquidity. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 assets.

Summary of Quantitative Information About Significant Unobservable Inputs Related to Level 3 Fair Value Measurements

The following table shows quantitative information about significant unobservable inputs related to the Level 3 fair value measurements reported in the tables used as of September 30, 2018 and December 31, 2017:

Fair Value at September 30, 2018			Primary Valuation	Significant	Range						Weighted
			Technique(s)	Unobservable Inputs	Min			Max			Average
(Dollars in thousands)
Rreef America REIT II	$	2,234	Discounted cash flows	Discount rate		4.50	%		8.75	%		6.42	%
				Terminal capitalization rate		4.25	%		8.00	%		5.45	%
Fair Value at December 31, 2017			Primary Valuation	Significant	Range						Weighted
			Technique(s)	Unobservable Inputs	Min			Max			Average
(Dollars in thousands)
Rreef America REIT II	$	2,150	Discounted cash flows	Discount rate		5.50	%		9.00	%		6.61	%
				Terminal capitalization rate		4.00	%		8.25	%		5.62	%

Summary of Rollforward of Level 3 Assets Held at Fair Value on Recurring Basis

The following table presents the rollforward of Level 3 assets held at fair value on a recurring basis for the three and nine month periods ended September 30, 2018 and September 30, 2017, respectively:

	Predecessor				Predecessor
	for the three month periods ended				for the nine month periods ended
	9/30/2018		9/30/2017		9/30/2018		9/30/2017
	(Dollars in thousands)
Balance, beginning of period	$	2,239	$	2,141	$	2,182	$	3,169
Gains included in net income		—		—		—		396
Settlements		—		—		—		(1,000	)
Unrealized gains (losses) in OCI		31		—		88		(424	)
Balance, end of period	$	2,270	$	2,141	$	2,270	$	2,141

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Accumulated Other Comprehensive Income

The components of AOCI are as follows:

	Predecessor
	Unrealized Investment Gains (losses)			Shadow DAC			Accumulated Other Comprehensive Income (loss)
	(Dollars in thousands)
Balance, December 31, 2016	$	3,997		$	(448	)	$	3,549
Available-for-sale investment gains (losses) arising during the year:
Fixed maturity securities net of tax of $227		440			—			440
Equity securities net of tax of $9		18			—			18
Change in Shadow DAC net of tax benefit of $28		—			(55	)		(55	)
Cumulative effect of adoption of new accounting principle (see Note 3)		904			(99	)		805
Balance, December 31, 2017		5,359			(602	)		4,757
Available-for-sale investment gains (losses) arising during the year:
Fixed maturity securities net of tax benefit of $370		(8,148	)		—			(8,148	)
Equity securities net of tax of $70		264			—			264
Change in Shadow DAC net of tax of $263		—			988			988
Balance, September 30, 2018	$	(2,525	)	$	386		$	(2,139	)

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Summary of Federal Income Tax Provisions

The federal income tax provisions differ from the amounts determined by multiplying pre-tax income attributable to the Predecessor by the statutory federal income tax rate of 21% for September 30, 2018 and 34% for September 30, 2017, as shown below.

	Predecessor						Predecessor
	for the three month periods ended						for the nine month periods ended
	9/30/2018			9/30/2017			9/30/2018			9/30/2017
	(Dollars in thousands)
Income tax benefits at statutory rate	$	(302	)	$	(31	)	$	(719	)	$	(368	)
Other		305			36			731			387
Income tax (benefit) expense	$	3		$	5		$	12		$	19
Effective tax rate		0.2	%		5.6	%		0.4	%		1.8	%

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

	Pro forma for the three months ended September 30,						Pro forma for the nine months ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Numerator:
Net loss - numerator for earnings per common share	$	(1,441	)	$	(95	)	$	(3,435	)	$	(1,102	)
Denominator:
Weighted average basic common shares outstanding		3,530,150			3,530,150			3,530,150			3,530,150
Effect of dilutive securities:
Restricted stock and restricted stock units		140,000			140,000			140,000			140,000
Denominator for earnings per diluted common share		3,670,150			3,670,150			3,670,150			3,670,150
Basic loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)
Diluted loss per common share	$	(0.41	)	$	(0.03	)	$	(0.97	)	$	(0.31	)

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Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	Jun. 30, 2018 USD ($)
Extractive Industries [Abstract]
Revisions of Previous Quantity Estimates	$ 1,131

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Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Tax effect from AOCI			$ 805,000
Federal corporate tax	21.00%	34.00%	35.00%

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Investments and Related Income - Summary of Amortized Cost, Gross Unrealized Gains and (Losses) and Fair Value of the Predecessor's Fixed Maturity and Equities (Detail) - Predecessor - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale [Line Items]
Amortized cost	$ 189,499	$ 187,875
Gross unrealized gains	3,929	7,814
Gross unrealized losses	(5,311)	(1,028)
Fair Value	188,117	194,661
Equity Securities
Schedule of Available-for-sale [Line Items]
Amortized cost	4,504	4,443
Gross unrealized gains	2,125	1,766
Gross unrealized losses	(9)
Fair Value	6,620	6,209
U.S. government
Schedule of Available-for-sale [Line Items]
Amortized cost	4,066	4,075
Gross unrealized gains	143	207
Gross unrealized losses	(231)	(120)
Fair Value	3,978	4,162
States, Political Subdivisions, Other
Schedule of Available-for-sale [Line Items]
Amortized cost	28,236	26,850
Gross unrealized gains	383	876
Gross unrealized losses	(871)	(112)
Fair Value	27,748	27,614
Corporate
Schedule of Available-for-sale [Line Items]
Amortized cost	107,090	106,479
Gross unrealized gains	832	3,459
Gross unrealized losses	(2,432)	(543)
Fair Value	105,490	109,395
Residential Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Amortized cost	41,828	41,818
Gross unrealized gains	393	1,480
Gross unrealized losses	(1,597)	(212)
Fair Value	40,624	43,086
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Amortized cost	3,775	4,210
Gross unrealized gains	53	26
Gross unrealized losses	(171)	(41)
Fair Value	3,657	4,195
Fixed Income Securities
Schedule of Available-for-sale [Line Items]
Amortized cost	184,995	183,432
Gross unrealized gains	1,804	6,048
Gross unrealized losses	(5,302)	(1,028)
Fair Value	$ 181,497	$ 188,452

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Investments and Related Income - Summary of Scheduled Maturities for Fixed Income Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investments, Debt Securities [Abstract]
Due in one year or less, amortized cost	$ 4,251	$ 2,247
Due after one year through five years, amortized cost	41,378	40,926
Due after five years through ten years, amortized cost	70,483	66,739
Due after ten years, amortized cost	23,280	27,492
Mortgage-backed securities, amortized cost	45,603	46,028
Total, amortized cost	184,995	183,432
Due in one year or less, fair value	4,293	2,288
Due after one year through five years, fair value	41,840	42,809
Due after five years through ten years,fair value	68,627	68,151
Due after ten years, fair value	22,456	27,923
Mortgage-backed securities, fair value	44,281	47,281
Total, fair value	$ 181,497	$ 188,452

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Investments and Related Income - Summary of Fixed Maturity Proceeds and the Related Gross Investment Gains (Losses) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Schedule of Fixed Maturity Proceeds and Related Gross Investment Gains (Losses) [Line Items]
Other-than-temporary-impairment (OTTI) losses	$ 0	$ 0	$ 0	$ 0
Fixed Maturities
Schedule of Fixed Maturity Proceeds and Related Gross Investment Gains (Losses) [Line Items]
Proceeds from sales or maturities	2,377	4,955	10,574	18,301
Gross gains from sales or maturities	78	21	153	164
Other-than-temporary-impairment (OTTI) losses	(89)		(89)
Gross losses from sales or maturities	(9)	(2)	(48)	(21)
Equity Securities
Schedule of Fixed Maturity Proceeds and Related Gross Investment Gains (Losses) [Line Items]
Proceeds from sales or maturities		808	261	2,349
Gross gains from sales or maturities		725	261	1,503
Derivative
Schedule of Fixed Maturity Proceeds and Related Gross Investment Gains (Losses) [Line Items]
Proceeds from sales or maturities	237	81	443	84
Gross gains from sales or maturities	341	82	680	91
Gross losses from sales or maturities	$ (196)	$ (33)	$ (419)	$ (40)

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Investments and Related Income - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Schedule of Investments [Line Items]
Other-than-temporary-impairment (OTTI) losses	$ 0		$ 0
Securities with market value	$ 181,497,000	$ 188,452,000
Fixed income maturities rated below investment grade	5.00%
Commercial And Residential Mortgage Backed Securities
Schedule of Investments [Line Items]
Exposure to total fixed income portfolio	25.00%	25.00%
Consumer Non-cyclical
Schedule of Investments [Line Items]
Corporate bond sector exposures to total fixed income portfolio	11.00%	12.00%
Banks
Schedule of Investments [Line Items]
Corporate bond sector exposures to total fixed income portfolio	6.00%	6.00%
Communications
Schedule of Investments [Line Items]
Corporate bond sector exposures to total fixed income portfolio	6.00%	6.00%
Real Estate
Schedule of Investments [Line Items]
Corporate bond sector exposures to total fixed income portfolio	5.00%	5.00%
Energy
Schedule of Investments [Line Items]
Corporate bond sector exposures to total fixed income portfolio	5.00%	5.00%
Predecessor
Schedule of Investments [Line Items]
Other-than-temporary-impairment (OTTI) losses	$ 89,000
Deposit With Governmental Agencies
Schedule of Investments [Line Items]
Securities with market value	$ 4,500,000	$ 4,700,000
Corporate Bonds
Schedule of Investments [Line Items]
Exposure to total fixed income portfolio	58.00%	58.00%

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Investments and Related Income - Summary of Presentation of Credit Related Other Than Temporary Impairments ("OTTI") Recognized in Earnings (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Investments, Debt and Equity Securities [Abstract]
Credit related OTTI not previously reported	$ 89
Balance at end of period	$ 89

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Investments and Related Income - Summary Of Fair Value And Gross Unrealized Losses Aggregated By Investment Category (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale [Line Items]
Fair Value	$ 88,643	$ 34,425
Gross Unrealized Loss	(3,489)	(439)
Fair Value	21,630	11,689
Gross Unrealized Loss	(1,813)	(589)
Total Fair Value	110,273	46,114
Total Gross Unrealized Loss	(5,302)	(1,028)
U.S. government
Schedule of Available-for-sale [Line Items]
Fair Value		1,161
Gross Unrealized Loss		(31)
Fair Value	2,825	1,782
Gross Unrealized Loss	(231)	(89)
Total Fair Value	2,825	2,943
Total Gross Unrealized Loss	(231)	(120)
States, Political Subdivisions, Other
Schedule of Available-for-sale [Line Items]
Fair Value	14,256	8,773
Gross Unrealized Loss	(675)	(86)
Fair Value	2,546	714
Gross Unrealized Loss	(196)	(26)
Total Fair Value	16,802	9,487
Total Gross Unrealized Loss	(871)	(112)
Corporate
Schedule of Available-for-sale [Line Items]
Fair Value	52,763	10,935
Gross Unrealized Loss	(1,696)	(169)
Fair Value	8,985	6,853
Gross Unrealized Loss	(736)	(374)
Total Fair Value	61,748	17,788
Total Gross Unrealized Loss	(2,432)	(543)
Residential Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Fair Value	19,642	11,517
Gross Unrealized Loss	(1,051)	(126)
Fair Value	5,703	2,263
Gross Unrealized Loss	(546)	(86)
Total Fair Value	25,345	13,780
Total Gross Unrealized Loss	(1,597)	(212)
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Fair Value	1,982	2,039
Gross Unrealized Loss	(67)	(27)
Fair Value	1,571	77
Gross Unrealized Loss	(104)	(14)
Total Fair Value	3,553	2,116
Total Gross Unrealized Loss	$ (171)	$ (41)

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Investments and Related Income - Summary of Other Than Temporary Impairment (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Schedule of Available-for-sale [Line Items]
Number of securities	2
Total OTTI Losses	$ (89)
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	0	$ 0
Net OTTI Losses Recognized in Operation	(89)
U.S. government
Schedule of Available-for-sale [Line Items]
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	0	0
States, Political Subdivisions, Other
Schedule of Available-for-sale [Line Items]
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	0	0
Corporate
Schedule of Available-for-sale [Line Items]
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	0	0
Residential Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	$ 0	0
Commercial Mortgage-Backed Securities
Schedule of Available-for-sale [Line Items]
Number of securities	2
Total OTTI Losses	$ (89)
Portion of OTTI Losses Recognized in (from) Other Comprehensive Income	0	$ 0
Net OTTI Losses Recognized in Operation	$ (89)

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Investments and Related Income - Summary of Net Investment Income (Detail) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Investment Income [Line Items]
Gross, Investment Income	$ 2,221	$ 2,376	$ 6,724	$ 6,970
Investment expense	(158)	(160)	(443)	(462)
Net investment income	2,063	2,216	6,281	6,508
Fixed Maturities
Net Investment Income [Line Items]
Gross, Investment Income	1,824	1,833	5,513	5,585
Equity Securities
Net Investment Income [Line Items]
Gross, Investment Income	45	56	127	150
Real Estate Investment
Net Investment Income [Line Items]
Gross, Investment Income	26	38	98	112
Cash and Cash Equivalents
Net Investment Income [Line Items]
Gross, Investment Income	19	12	38	24
Policy Loans
Net Investment Income [Line Items]
Gross, Investment Income	178	181	534	543
Other Long-term Investments
Net Investment Income [Line Items]
Gross, Investment Income	$ 129	$ 256	$ 414	$ 556

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Investments and Related Income - Summary of Unrealized Net Capital Gains and Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Net Investment Income [Line Items]
Unrealized capital gain (losses), Fair value	$ 181,497	$ 188,452
Unrealized gain (losses), net	184,995	183,432
AOCI Attributable to Parent
Net Investment Income [Line Items]
Unrealized gain (losses), net	(1,382)	6,786
AOCI Attributable to Parent | Fixed Income Securities
Net Investment Income [Line Items]
Unrealized capital gain (losses), Fair value	181,497	188,452
Gross Unrealized gains	1,804	6,048
Gross Unrealized losses	(5,302)	(1,028)
Unrealized gain (losses), net	(3,498)	5,020
AOCI Attributable to Parent | Equity Securities
Net Investment Income [Line Items]
Unrealized capital gain (losses), Fair value	6,620	6,209
Gross Unrealized gains	2,125	1,766
Gross Unrealized losses	(9)
Unrealized gain (losses), net	$ 2,116	$ 1,766

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Derivative Instruments - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Derivative [Line Items]
Amount of credit risk	$ 0	$ 0
Additional cash requirements	0	0
Net market value	517,000	395,000
Call Option Purchased
Derivative [Line Items]
Call option	11,900,000	8,500,000
Call Option Written
Derivative [Line Items]
Call option	$ 8,200,000	$ 6,000,000

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Fair Value of Financial Instruments - Carrying Amount and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financial instruments recorded as assets:
Equity securities	$ 6,620	$ 6,209
Separate account	24,434	24,779
Policyholder account balance:
Separate account	24,434	24,779
Predecessor | Carrying Amount
Financial instruments recorded as assets:
Fixed maturity securities	181,497	188,452
Equity securities	6,620	6,209
Policy loans	9,599	9,852
Derivative instruments	517	395
Cash and cash equivalents	3,466	4,085
Separate account	24,434	24,779
Policyholder account balance:
Interest sensitive life contracts	41,337	41,078
Annuities	73,805	68,745
Dividend accumulations and other	6,830	7,076
Separate account	24,434	24,779
Predecessor | Fair Value
Financial instruments recorded as assets:
Fixed maturity securities	181,497	188,452
Equity securities	6,620	6,209
Policy loans	9,599	9,852
Derivative instruments	517	395
Cash and cash equivalents	3,466	4,085
Separate account	24,434	24,779
Policyholder account balance:
Interest sensitive life contracts	41,337	41,078
Annuities	73,805	68,745
Dividend accumulations and other	6,830	7,076
Separate account	$ 24,434	$ 24,779

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Fair Value of Financial Instruments - Summary of Securities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Fixed maturity securities:
Equities		$ 6,620	$ 6,209
Separate accounts		24,434	24,779
Predecessor | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		181,497	188,452
Equities		6,620	6,209
Derivative instruments		517	395
Cash equivalents	[1]	3,466	4,085
Separate accounts	[2]	24,434	24,779
Total		216,534	223,920
Predecessor | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		3,978	4,162
Equities		4,350	4,027
Derivative instruments		517	395
Cash equivalents	[1]	3,466	4,085
Separate accounts	[2]	24,434	24,779
Total		36,745	37,448
Predecessor | Significant Other Observable Inputs (Level 2) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		177,519	184,290
Total		177,519	184,290
Predecessor | Significant Unobservable Inputs (Level 3) | Recurring Fair Value Measurements
Fixed maturity securities:
Equities		2,270	2,182
Total		2,270	2,182
Predecessor | U.S. government | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		3,978	4,162
Predecessor | U.S. government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		3,978	4,162
Predecessor | States, Political Subdivisions, Other | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		27,748	27,614
Predecessor | States, Political Subdivisions, Other | Significant Other Observable Inputs (Level 2) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		27,748	27,614
Predecessor | Corporate | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		105,490	109,395
Predecessor | Corporate | Significant Other Observable Inputs (Level 2) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		105,490	109,395
Predecessor | Residential Mortgage-Backed Securities | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		40,624	43,086
Predecessor | Residential Mortgage-Backed Securities | Significant Other Observable Inputs (Level 2) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		40,624	43,086
Predecessor | Commercial Mortgage-Backed Securities | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		3,657	4,195
Predecessor | Commercial Mortgage-Backed Securities | Significant Other Observable Inputs (Level 2) | Recurring Fair Value Measurements
Fixed maturity securities:
Total fixed maturities		$ 3,657	$ 4,195

[1] Cash equivalents are invested in money market funds with daily liquidity. The estimated fair value of cash equivalents is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 asssets.

[2] Separate account assets are invested in money market funds with daily liquidity. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets as provided by fund managers in daily net asset values and included in Level 1 assets.

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Fair Value of Financial Instruments - Summary of Quantitative Information About Significant Unobservable Inputs Related to Level 3 Fair Value Measurements (Detail) - Significant Unobservable Inputs (Level 3) $ in Thousands	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Fair Value | Significant Unobservable Inputs, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rreef America REIT II	$ 2,234	$ 2,150
Minimum | Significant Unobservable Inputs, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0450	0.0550
Minimum | Fair Value | Significant Unobservable Inputs, Terminal Capitalization Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0425	0.0400
Maximum | Significant Unobservable Inputs, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0875	0.0900
Maximum | Fair Value | Significant Unobservable Inputs, Terminal Capitalization Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0800	0.0825
Weighted Average | Significant Unobservable Inputs, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0642	0.0661
Weighted Average | Fair Value | Significant Unobservable Inputs, Terminal Capitalization Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Significant unobservable inputs	0.0545	0.0562

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Fair Value of Financial Instruments - Summary of Rollforward of Level 3 Assets Held at Fair Value on Recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 2,239	$ 2,141	$ 2,182	$ 3,169
Gains included in net income	0	0	0	396
Settlements	0	0	0	(1,000)
Unrealized gains (losses) in OCI	31	0	88	(424)
Balance, end of period	$ 2,270	$ 2,141	$ 2,270	$ 2,141

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Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 4,757
Available-for-sale investment gains (losses) arising during the year:
Ending balance	(2,139)	$ 4,757
Accumulated Net Investment Gain (Loss) Attributable to Parent.
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	5,359	3,997
Available-for-sale investment gains (losses) arising during the year:
Cumulative effect of adoption of new accounting principle		904
Ending balance	(2,525)	5,359
Accumulated Net Investment Gain (Loss) Attributable to Parent. | Fixed Maturities
Available-for-sale investment gains (losses) arising during the year:
Securities	(8,148)	440
Accumulated Net Investment Gain (Loss) Attributable to Parent. | Equity Security.
Available-for-sale investment gains (losses) arising during the year:
Securities	264	18
Deferred Acquisition Costs.
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(602)	(448)
Available-for-sale investment gains (losses) arising during the year:
Change in Shadow DAC	988	(55)
Cumulative effect of adoption of new accounting principle		(99)
Ending balance	386	(602)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	4,757	3,549
Available-for-sale investment gains (losses) arising during the year:
Change in Shadow DAC	988	(55)
Cumulative effect of adoption of new accounting principle		805
Ending balance	(2,139)	4,757
AOCI Attributable to Parent | Fixed Maturities
Available-for-sale investment gains (losses) arising during the year:
Securities	(8,148)	440
AOCI Attributable to Parent | Equity Security.
Available-for-sale investment gains (losses) arising during the year:
Securities	$ 264	$ 18

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Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Parenthetical) (Detail) - Accumulated Net Investment Gain (Loss) Attributable to Parent. - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Change in Shadow DAC ,net of tax benefit	$ 263	$ 28
Fixed Maturities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Securities net of tax	370	227
Equity Security.
Accumulated Other Comprehensive Income (Loss) [Line Items]
Securities net of tax	$ 70	$ 9

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Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Contingency [Line Items]
Liability for unrecognized tax benefits	$ 0		$ 0
Accrued for interest or penalties of unrecognized tax benefits	$ 0
Statutory federal income tax rate	21.00%	34.00%	35.00%
Minimum
Income Tax Contingency [Line Items]
Percentage Of Life Reserve for tax purpose	92.81%

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Income Taxes - Summary of Federal Income Tax Provisions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income tax benefits at statutory rate	$ (302)	$ (31)	$ (719)	$ (368)
Other	305	36	731	387
Income tax (benefit) expense	$ 3	$ 5	$ 12	$ 19
Effective tax rate	0.20%	5.60%	0.40%	1.80%

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Debt and Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2018	Jun. 29, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Advances with FHLB	$ 0		$ 0
Predecessor | Promissory Notes. | Insurance Capital Group.
Debt Instrument [Line Items]
Debt instrument, principal amount		$ 2,000,000
Debt instrument, interest rate		3.75%
Debt instrument outstanding	$ 1,050,000
Conversion of debt instrument into shares	105,000
Common stock price per share	$ 10.00

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Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Schedule Of Related Party Transactions By Related Party [Line Items]
Amount settlement descriptions			60 days
Americana.
Schedule Of Related Party Transactions By Related Party [Line Items]
Common stock dividends to Federal Life	$ 285,000	$ 74,000	$ 404,000	$ 828,000
Dividends due to Federal Life			82,000		$ 41,000
Federal Life Mutual Holding Company.
Schedule Of Related Party Transactions By Related Party [Line Items]
Interest paid to Federal Life			$ 5,000	$ 15,000

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Earnings Per Share - Schedule of Earnings Per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator
Net loss - numerator for earnings per common share	$ (1,441)	$ (95)	$ (3,435)	$ (1,102)
Denominator
Weighted average basic common shares outstanding	3,530,150	3,530,150	3,530,150	3,530,150
Restricted stock and restricted stock units	140,000	140,000	140,000	140,000
Denominator for earnings per diluted common share	3,670,150	3,670,150	3,670,150	3,670,150
Basic loss per common share	$ (0.41)	$ (0.03)	$ (0.97)	$ (0.31)
Diluted loss per common share	$ (0.41)	$ (0.03)	$ (0.97)	$ (0.31)

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Earnings Per Share - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 shares
Executive Officer | Pro Forma.
Earnings Per Share [Line Items]
Shares granted as restricted stock awards	140,000
Stock Based Incentive Plan
Earnings Per Share [Line Items]
Common stock, shares granted	480,000
Voting interests of existing shareholders	12.00%
Stock Based Incentive Plan | Restricted Stock Awards
Earnings Per Share [Line Items]
Common stock, shares granted	140,000
Stock Based Incentive Plan | Stock Option
Earnings Per Share [Line Items]
Common stock, shares granted	215,000

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Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - IPO [Member]	Dec. 11, 2018 USD ($) $ / shares shares
Insurance Capital Group. | Promissory Note [Member]
Subsequent Event [Line Items]
Conversion of debt instrument into shares | shares	105,000
Predecessor
Subsequent Event [Line Items]
Common stock, shares issued | shares	3,530,150
Common stock, per share | $ / shares	$ 10.00
Proceeds from issuance of common stock, gross	$ 35,302,000
Proceeds from issuance of common stock, net	32,298,000
Fees	1,954,000
Predecessor | Promissory Note [Member]
Subsequent Event [Line Items]
Conversion of promissory note	$ 1,050,000