3. Investments (Tables)

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Schedule of Availalbe for Sale Securities

The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
	(unaudited)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	5,192,989	$	164,220	$	(80,990	)	$	(11,909	)	$	5,264,309	$	71,320
Corporate and other bonds
Industrial and miscellaneous		16,781,196		598,017		(247,662	)		-			17,131,552		350,356
Total fixed-maturity securities		21,974,185		762,237		(328,652	)		(11,909	)		22,395,861		421,676
Equity Securities:
Preferred stocks		3,493,001		9,239		(89,440	)		-			3,412,800		(80,201	)
Common stocks		3,382,847		434,290		(39,522	)		-			3,777,615		394,768
Total equity securities		6,875,848		443,529		(128,962	)		-			7,190,415		314,567
Total	$	28,850,033	$	1,205,766	$	(457,614	)	$	(11,909	)	$	29,586,276	$	736,243

	December 31, 2012
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	5,219,092	$	257,298	$	(1,574	)	$	-		$	5,474,816	$	255,724
Corporate and other bonds
Industrial and miscellaneous		19,628,005		1,123,392		(43,553	)		(722	)		20,707,122		1,079,117
Total fixed-maturity securities		24,847,097		1,380,690		(45,127	)		(722	)		26,181,938		1,334,841
Equity Securities:
Preferred stocks		1,475,965		19,512		(11,130	)		-			1,484,347		8,382
Common stocks		3,598,012		353,782		(145,899	)		-			3,805,895		207,883
Total equity securities		5,073,977		373,294		(157,029	)		-			5,290,242		216,265
Total	$	29,921,074	$	1,753,984	$	(202,156	)	$	(722	)	$	31,472,180	$	1,551,106

Schedule of Availalbe for Sale Securities by contractual maturity

A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2013 and December 31, 2012 is shown below:

	June 30, 2013				December 31, 2012
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
	(unaudited)
Less than one year	$	522,532	$	515,556	$	546,952	$	560,162
One to five years		8,029,987		8,396,602		9,031,248		9,569,943
Five to ten years		10,436,021		10,612,222		12,605,798		13,306,033
More than 10 years		2,985,645		2,871,481		2,663,099		2,745,800
Total	$	21,974,185	$	22,395,861	$	24,847,097	$	26,181,938

Schedule of Held to Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of June 30, 2013 and December 31, 2012 are summarized as follows:

June 30, 2013

Net

Cost or

Gross

Gross Unrealized Losses

Unrealized

Amortized

Unrealized

Less than 12

More than 12

Fair

Gains/

Category

Cost

Gains

Months

Months

Value

(Losses)

(unaudited)

U.S. Treasury securities

$

606,292

$

95,771

$

-

$

-

$

702,063

$

95,771

December 31, 2012

Net

Cost or

Gross

Gross Unrealized Losses

Unrealized

Amortized

Unrealized

Less than 12

More than 12

Fair

Gains/

Category

Cost

Gains

Months

Months

Value

(Losses)

U.S. Treasury securities

$

606,281

$

172,745

$

-

$

-

$

779,026

$

172,745

Schedule of Investment Income

Major categories of the Company’s net investment income are summarized as follows:

	Three months ended					Six months ended
	June 30,					June 30,
	2013		2012			2013		2012
	(unaudited)					(unaudited)
Income:
Fixed-maturity securities	$	234,977	$	226,777		$	495,012	$	461,270
Equity securities		93,389		62,310			179,844		148,239
Cash and cash equivalents		-		(1,347	)		29		59
Other		11,817		2			11,817		4
Total		340,183		287,742			686,702		609,572
Expenses:
Investment expenses		65,152		57,863			128,384		112,176
Net investment income	$	275,031	$	229,879		$	558,318	$	497,396

Schedule of Securities with realized gains and losses on investments

The Company’s net realized gains and losses on investments are summarized as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Fixed-maturity securities:
Gross realized gains	$	104,241		$	55,004		$	181,217		$	95,150
Gross realized losses		(56,471	)		(54,404	)		(56,471	)		(54,404	)
		47,770			600			124,746			40,746
Equity securities:
Gross realized gains		218,204			25,215			289,989			32,284
Gross realized losses		(16,081	)		(19,655	)		(59,717	)		(27,470	)
		202,123			5,560			230,272			4,814
Net realized gains	$	249,893		$	6,160		$	355,018		$	45,560

Schedule of Securities with Unrealized Losses

The Company held securities with unrealized losses representing declines that were considered temporary at June 30, 2013 and December 31, 2012 as follows:

	June 30, 2013
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses
	(unaudited)
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions	$	1,065,409	$	(80,990	)		5	$	254,051	$	(11,909	)		3	$	1,319,460	$	(92,899	)
Corporate and other
bonds industrial and
miscellaneous		4,921,387		(247,662	)		24		-		-			-		4,921,387		(247,662	)
Total fixed-maturity
securities	$	5,986,796	$	(328,652	)		29	$	254,051	$	(11,909	)		3	$	6,240,847	$	(340,561	)
Equity Securities:
Preferred stocks	$	2,704,500	$	(89,440	)		10	$	-	$	-			-	$	2,704,500	$	(89,440	)
Common stocks		577,170		(39,522	)		4		-		-			-		577,170		(39,522	)
Total equity securities	$	3,281,670	$	(128,962	)		14	$	-	$	-			-	$	3,281,670	$	(128,962	)
Total	$	9,268,466	$	(457,614	)		43	$	254,051	$	(11,909	)		3	$	9,522,517	$	(469,523	)
	December 31, 2012
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions	$	202,798	$	(1,574	)		1	$	-	$	-			-	$	202,798	$	(1,574	)
Corporate and other
bonds industrial and
miscellaneous		4,025,551		(43,553	)		19		128,125		(722	)		1		4,153,676		(44,275	)
Total fixed-maturity
securities	$	4,228,349	$	(45,127	)		20	$	128,125	$	(722	)		1	$	4,356,474	$	(45,849	)
Equity Securities:
Preferred stocks	$	387,925	$	(11,130	)		3	$	-	$	-			-	$	387,925	$	(11,130	)
Common stocks		1,536,860		(145,899	)		9		-		-			-		1,536,860		(145,899	)
Total equity securities	$	1,924,785	$	(157,029	)		12	$	-	$	-			-	$	1,924,785	$	(157,029	)
Total	$	6,153,134	$	(202,156	)		32	$	128,125	$	(722	)		1	$	6,281,259	$	(202,878	)