Investments (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Available for Sale Investments

The cost or amortized cost and estimated fair value of investments classified as available-for-sale as of September 30, 2019 and December 31, 2018 are as follows:


	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
September 30, 2019:
Fixed maturities:
U.S. government obligations	$	2,097,035	$	10,003	$	60,787	$	2,046,251
Mortgage-backed securities		874,209		7		13,499		860,717
Asset-backed securities		46,242,975		71,513		60,865		46,253,623
States and political subdivisions -- general obligations		262,079		5,522		—		267,601
States and political subdivisions -- special revenue		25,142		187		—		25,329
Corporate		17,396,523		611,300		196,911		17,810,912
Total fixed maturities	$	66,897,963	$	698,532	$	332,062	$	67,264,433
Mortgage loans on real estate, held for investment		10,098,478		—		—		10,098,478
Other invested assets		2,976,375		—		—		2,976,375
Preferred stock		500,000		—		—		500,000
Total Investments	$	80,472,816	$	698,532	$	332,062	$	80,839,286
December 31, 2018:
Fixed maturities:
U.S. government obligations	$	2,112,816	$	247	$	117,112	$	1,995,951
Mortgage-back securities		1,068,976		—		64,925		1,004,051
States and political subdivisions -- general obligations		265,473		—		2,289		263,184
States and political subdivisions -- special revenue		25,231		—		58		25,173
Corporate		15,754,345		14		1,658,535		14,095,824
Total fixed maturities	$	19,226,841	$	261	$	1,842,919	$	17,384,183

Schedule of Amortized Cost, Fair Value, Credit Rating

The Company has two securities that individually exceed 10% of the total of the state and political subdivisions categories as of September 30, 2019. The amortized cost, fair value, credit ratings, and description of each security is as follows:


	Amortized		Estimated
	Cost		Fair Value		Credit Rating
September 30, 2019:
Fixed maturities:
States and political subdivisions -- general obligations
Bellingham, Washington	$	107,999	$	111,904	AA+
Longview, Washington Refunding		154,080		155,697	Aa3
Total	$	262,079	$	267,601

Schedule of Unrealized Loss of Securities

The following table summarizes, for all securities in an unrealized loss position at September 30, 2019 and December 31, 2018, the estimated fair value, pre-tax gross unrealized loss and number of securities by consecutive months they have been in an unrealized loss position.


	September 30, 2019						December 31, 2018
			Gross		Number				Gross		Number
	Estimated		Unrealized		of		Estimated		Unrealized		of
	Fair Value		Loss		Securities(1)		Fair Value		Loss		Securities(1)
Fixed Maturities:
Less than 12 months:
U.S. government obligations	$	1,114,692	$	57,823		6	$	7,862	$	430		1
Asset-backed securities		16,023,788		60,865		12		—		—		—
Mortgage-back securities		159,722		1,136		3		—		—		—
Corporate		1,638,993		27,169		9		3,351,664		315,617		23
Greater than 12 months:
U.S. government obligations		354,151		2,964		2		1,785,949		116,682		10
Mortgage-back securities		680,652		12,363		14		1,004,052		64,925		19
States and political subdivisions -- general obligations		—		—		—		263,183		2,289		2
States and political subdivisions -- special revenue		—		—		—		25,173		58		1
Corporate		2,091,953		169,742		12		10,628,745		1,342,918		58
Total fixed maturities	$	22,063,951	$	332,062		58	$	17,066,628	$	1,842,919	$	114

We may reflect a security in more than one aging category based on various purchase dates.

Schedule of Fixed Maturities

The amortized cost and estimated fair value of fixed maturities at September 30, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	—	$	—
Due after one year through five years		1,720,127		1,731,192
Due after five years through ten years		11,583,552		11,564,598
Due after ten years through twenty years		46,435,050		46,637,790
Due after twenty years		7,159,234		7,330,853
	$	66,897,963	$	67,264,433

Schedule of Mortgage Loan Activity

The following table presents a reconciliation of the beginning balance for investments measured at fair value on a recurring basis using Level 3 inputs at September 30, 2019 and December 31, 2018:


	September 30, 2019		December 31, 2018
Beginning balance	$	—	$	—
Apartments and business		10,098,478		—
Preferred stock		500,000		—
Short-term leases		2,976,375		—
Total mortgage loans	$	13,574,853	$	—

Components of Net Investment Income

The components of net investment income for the three and nine months ended September 30, 2019 and 2018 are as follows:


	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Fixed maturities	$	(289,015)	$	201,440	$	342,104	$	598,632
Mortgage loans		68,810		—		78,466		—
Other		(1,102)		15,314		6,973		44,780
		(221,307)		216,754		427,543		643,412
Less investment expenses		(86,793)		(5,773)		(96,633)		(27,499)
Investment (loss) income, net of expenses	$	(308,100)	$	210,981	$	330,910	$	615,913