3. Investments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30, 2014
					Gross Unrealized Losses								Net
	Cost or Amortized		Gross Unrealized		Less than 12			More than 12			Fair		Unrealized Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	12,413,225	$	348,720	$	(18,529	)	$	(15,108	)	$	12,728,308	$	315,083
Corporate and other bonds
Industrial and miscellaneous		27,882,438		1,021,295		(11,736	)		(24,794	)		28,867,203		984,765
Total fixed-maturity securities		40,295,663		1,370,015		(30,265	)		(39,902	)		41,595,511		1,299,848
Equity Securities:
Preferred stocks		3,340,238		28,311		-			(75,147	)		3,293,402		(46,836	)
Common stocks		5,483,251		643,486		(17,328	)		-			6,109,409		626,158
Total equity securities		8,823,489		671,797		(17,328	)		(75,147	)		9,402,811		579,322
Total	$	49,119,152	$	2,041,812	$	(47,593	)	$	(115,049	)	$	50,998,322	$	1,879,170

	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 June 30, 2014 and December 31, 2013 is shown below:

	June 30, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
Less than one year	$	983,007	$	993,669	$	758,281	$	768,954
One to five years		8,305,030		8,763,953		9,025,386		9,466,973
Five to ten years		24,537,824		25,232,851		14,070,003		14,114,271
More than 10 years		6,469,802		6,605,038		4,226,232		4,085,824
Total	$	40,295,663	$	41,595,511	$	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 June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30, 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	$	606,336	$	112,010	$	-		$	-	$	718,346	$	112,010
Political subdivisions of States,
Territories and Possessions		1,411,268		28,847		(12,999	)		-		1,427,116		15,848
Corporate and other bonds
Industrial and miscellaneous		2,604,268		87,657		(8,122	)		-		2,683,803		79,535
Total	$	4,621,872	$	228,514	$	(21,121	)	$	-	$	4,829,265	$	207,393

	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 June 30, 2014 and December 31, 2013 is shown below:

	June 30, 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		2,815,030		2,881,566		1,793,344		1,772,208
More than 10 years		1,806,842		1,947,699		606,138		653,053
Total	$	4,621,872	$	4,829,265	$	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				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
Income:
Fixed-maturity securities	$	406,137	$	234,977	$	749,055	$	495,012
Equity securities		141,705		93,389		256,218		179,844
Cash and cash equivalents		2,821		-		23,440		29
Other		594		11,817		594		11,817
Total		551,257		340,183		1,029,307		686,702
Expenses:
Investment expenses		99,342		65,152		198,604		128,384
Net investment income	$	451,915	$	275,031	$	830,703	$	558,318

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,
	2014			2013			2014			2013
Fixed-maturity securities:
Gross realized gains	$	68,223		$	104,241		$	157,479		$	181,217
Gross realized losses		(1,894	)		(56,471	)		(28,293	)		(56,471	)
		66,329			47,770			129,186			124,746
Equity securities:
Gross realized gains		81,192			218,204			217,251			289,989
Gross realized losses		(12,919	)		(16,081	)		(23,487	)		(59,717	)
		68,273			202,123			193,764			230,272
Net realized gains	$	134,602		$	249,893		$	322,950		$	355,018

Schedule of Securities with Unrealized Losses

The Company held securities with unrealized losses representing declines that were considered temporary at June 30, 2014 and December 31, 2013 as follows:

	June 30, 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	$	1,479,948	$	(18,529	)		5	$	534,874	$	(15,108	)		2	$	2,014,822	$	(33,637	)
Corporate and other
bonds industrial and
miscellaneous		2,027,606		(11,736	)		5		778,210		(24,794	)		3		2,805,816		(36,530	)
Total fixed-maturity
securities	$	3,507,554	$	(30,265	)		10	$	1,313,084	$	(39,902	)		5	$	4,820,638	$	(70,167	)
Equity Securities:
Preferred stocks	$	-	$	-			-	$	1,635,873	$	(75,147	)		6	$	1,635,873	$	(75,147	)
Common stocks		621,830		(17,328	)		2		-		-			-		621,830		(17,328	)
Total equity securities	$	621,830	$	(17,328	)		2	$	1,635,873	$	(75,147	)		6	$	2,257,703	$	(92,475	)
Total	$	4,129,384	$	(47,593	)		12	$	2,948,957	$	(115,049	)		11	$	7,078,341	$	(162,642	)

	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	)