3. Investments (Tables)

3 Months Ended

Mar. 31, 2014

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 March 31, 2014 and December 31, 2013 are summarized as follows:

	March 31, 2014
	Cost or		Gross		Gross Unrealized Losses								Net 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	$	11,199,284	$	257,295	$	(25,457	)	$	(35,326	)	$	11,395,796	$	196,512
Corporate and other bonds
Industrial and miscellaneous		25,068,588		724,043		(62,730	)		(37,845	)		25,692,056		623,468
Total fixed-maturity securities		36,267,872		981,338		(88,187	)		(73,171	)		37,087,852		819,980
Equity Securities:
Preferred stocks		3,159,917		6,756		(68,114	)		(58,228	)		3,040,331		(119,586	)
Common stocks		5,030,738		463,402		(20,945	)		-			5,473,195		442,457
Total equity securities		8,190,655		470,158		(89,059	)		(58,228	)		8,513,526		322,871
Total	$	44,458,527	$	1,451,496	$	(177,246	)	$	(131,399	)	$	45,601,378	$	1,142,851

	December 31, 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)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	7,000,222	$	162,616	$	(49,491	)	$	(45,140	)	$	7,068,207	$	67,985
Corporate and other bonds
Industrial and miscellaneous		21,079,680		569,139		(179,810	)		(101,194	)		21,367,815		288,135
Total fixed-maturity securities		28,079,902		731,755		(229,301	)		(146,334	)		28,436,022		356,120
Equity Securities:
Preferred stocks		2,899,301		2,503		(251,525	)		(62,551	)		2,587,728		(311,573	)
Common stocks		3,791,037		470,606		(38,785	)		(13,913	)		4,208,945		417,908
Total equity securities		6,690,338		473,109		(290,310	)		(76,464	)		6,796,673		106,335
Total	$	34,770,240	$	1,204,864	$	(519,611	)	$	(222,798	)	$	35,232,695	$	462,455

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 March 31, 2014 and December 31, 2013 is shown below:

	March 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
Less than one year	$	745,401	$	760,948	$	758,281	$	768,954
One to five years		8,424,752		8,843,711		9,025,386		9,466,973
Five to ten years		20,629,510		20,997,899		14,070,003		14,114,271
More than 10 years		6,468,209		6,485,294		4,226,232		4,085,824
Total	$	36,267,872	$	37,087,852	$	28,079,902	$	28,436,022

Schedule of Held to Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of March 31, 2014 and December 31, 2013 are summarized as follows:

	March 31, 2014
												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	$	606,327	$	84,612	$	-		$	-	$	690,939	$	84,612
Political subdivisions of States,
Territories and Possessions		1,410,299		-		(3,437	)		-		1,406,862		(3,437	)
Corporate and other bonds
Industrial and miscellaneous		1,952,709		51,586		-			-		2,004,295		51,586
Total	$	3,969,335	$	136,198	$	(3,437	)	$	-	$	4,102,096	$	132,761

	December 31, 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)
U.S. Treasury securities	$	606,138	$	46,915	$	-		$	-	$	653,053	$	46,915
Political subdivisions of States,
Territories and Possessions		208,697		-		(25,359	)		-		183,338		(25,359	)
Corporate and other bonds
Industrial and miscellaneous		1,584,647		4,223		-			-		1,588,870		4,223
Total	$	2,399,482	$	51,138	$	(25,359	)	$	-	$	2,425,261	$	25,779

Schedule of Held to Maturity Securities by contractual maturity

A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of March 31, 2014 and December 31, 2013 is shown below: 

	March 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
Less than one year	$	-	$	-	$	-	$	-
One to five years		-		-		-		-
Five to ten years		2,162,433		2,206,448		1,793,344		1,772,208
More than 10 years		1,806,902		1,895,648		606,138		653,053
Total	$	3,969,335	$	4,102,096	$	2,399,482	$	2,425,261

Schedule of Investment Income

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

	Three months ended
	March 31,
	2014		2013
Income:
Fixed-maturity securities	$	342,918	$	260,035
Equity securities		114,513		86,455
Cash and cash equivalents		20,619		29
Total		478,050		346,519
Expenses:
Investment expenses		99,262		63,232
Net investment income	$	378,788	$	283,287

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
	March 31,
	2014			2013
Fixed-maturity securities:
Gross realized gains	$	89,256		$	76,976
Gross realized losses		(26,399	)		-
		62,857			76,976
Equity securities:
Gross realized gains		136,059			71,785
Gross realized losses		(10,568	)		(43,636	)
		125,491			28,149
Net realized gains	$	188,348		$	105,125

Schedule of Securities with Unrealized Losses

The Company held securities with unrealized losses representing declines that were considered temporary at March 31, 2014 and December 31, 2013 as follows:

	March 31, 2014
	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	$	2,669,178	$	(25,457	)		9	$	772,206	$	(35,326	)		2	$	3,441,384	$	(60,783	)
Corporate and other
bonds industrial and
miscellaneous		4,378,126		(62,730	)		13		1,036,070		(37,845	)		4		5,414,196		(100,575	)
Total fixed-maturity
securities	$	7,047,304	$	(88,187	)		22	$	1,808,276	$	(73,171	)		6	$	8,855,580	$	(161,358	)
Equity Securities:
Preferred stocks	$	1,443,956	$	(68,114	)		6	$	646,300	$	(58,228	)		3	$	2,090,256	$	(126,342	)
Common stocks		418,425		(20,945	)		2		-		-			-		418,425		(20,945	)
Total equity securities	$	1,862,381	$	(89,059	)		8	$	646,300	$	(58,228	)		3	$	2,508,681	$	(147,287	)
Total	$	8,909,685	$	(177,246	)		30	$	2,454,576	$	(131,399	)		9	$	11,364,261	$	(308,645	)

	December 31, 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
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions	$	2,015,437	$	(49,491	)		6	$	415,866	$	(45,140	)		2	$	2,431,303	$	(94,631	)
Corporate and other
bonds industrial and
miscellaneous		6,447,605		(179,810	)		24		1,430,377		(101,194	)		5		7,877,982		(281,004	)
Total fixed-maturity
securities	$	8,463,042	$	(229,301	)		30	$	1,846,243	$	(146,334	)		7	$	10,309,285	$	(375,635	)
Equity Securities:
Preferred stocks	$	1,835,958	$	(251,525	)		8	$	444,100	$	(62,551	)		2	$	2,280,058	$	(314,076	)
Common stocks		879,525		(38,785	)		4		145,625		(13,913	)		1		1,025,150		(52,698	)
Total equity securities	$	2,715,483	$	(290,310	)		12	$	589,725	$	(76,464	)		3	$	3,305,208	$	(366,774	)
Total	$	11,178,525	$	(519,611	)		42	$	2,435,968	$	(222,798	)		10	$	13,614,493	$	(742,409	)