Statutory Net Income and Surplus	9 Months Ended
Sep. 30, 2019
Statutory Net Income and Surplus [Abstract]
Statutory Net Income and Surplus	Note 14. Statutory Net Income and Surplus American Life is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Nebraska Department of Insurance. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. American Life’s statutory net losses for the nine months ended September 30, 2019 and 2018 were $149,247 and $3,107,135, respectively. Capital and surplus of American Life as of September 30, 2019 and December 31, 2018 was $18,035,576 and $20,979,285, respectively. The net loss was primarily due to the continuing expenses incurred to provide services on the new software and related technology to distribute products through national marketing organizations. The MYGA sales began late in January 2019 with $79,500,172 of face amount of policies issued during the nine months ending September 30, 2019. An additional $6,902,677 was pending as of September 30, 2019. Even though American Life had a significant increase in statutory revenue, the earnings profile of MYGA products are characterized by up-front statutory losses. As mentioned in Note 9. Reinsurance above, American Life entered into the FW/Modco Agreement with Ironbound to cede 95% of the MYGA business. Premiums net of commissions and ceding commission and administrative fees ceded to Ironbound was $70,035,588 and the reserve requirement of $75,741,809 was ceded to Ironbound as of September 30, 2019.

Note 14. Statutory Net Income and Surplus

American Life is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Nebraska Department of Insurance. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. American Life’s statutory net losses for the nine months ended September 30, 2019 and 2018 were $149,247 and $3,107,135, respectively. Capital and surplus of American Life as of September 30, 2019 and December 31, 2018 was $18,035,576 and $20,979,285, respectively. The net loss was primarily due to the continuing expenses incurred to provide services on the new software and related technology to distribute products through national marketing organizations. The MYGA sales began late in January 2019 with $79,500,172 of face amount of policies issued during the nine months ending September 30, 2019. An additional $6,902,677 was pending as of September 30, 2019. Even though American Life had a significant increase in statutory revenue, the earnings profile of MYGA products are characterized by up-front statutory losses.

As mentioned in Note 9. Reinsurance above, American Life entered into the FW/Modco Agreement with Ironbound to cede 95% of the MYGA business. Premiums net of commissions and ceding commission and administrative fees ceded to Ironbound was $70,035,588 and the reserve requirement of $75,741,809 was ceded to Ironbound as of September 30, 2019.