Assets and Liabilities Held for Sale

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Note 3. Assets and Liabilities Held for Sale

In December 2015, American Life entered into a purchase agreement with a third party to sell its interest in its dormant subsidiary, Capital Reserve Life Insurance Company (“Capital Reserve”). Under the terms of the purchase agreement, American Life received cash which approximated the statutory surplus of Capital Reserve. The sale of Capital Reserve was effective as of August 29, 2016. Prior to the sale of Capital Reserve, Midwest had $16.9 million and $15.5 million of assets and liabilities, respectively, classified as held for sale on the Consolidated Balance Sheet. The sale of Capital Reserve resulted in a net gain of approximately $26,000 which includes the $50,000 cash above book value and the unrealized gains on the fair market value of bonds at August 29, 2016 becoming realized at the date of sale of $17,000 offset by the write-off of the VOBA of $40,714. This gain is included in the Net realized gain (loss) on investments on the consolidated statement of comprehensive income.