Note 6. Investments

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


	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
December 31, 2019:
Fixed maturities:
U.S. government obligations	$	2,091,710	$	7,073	$	17,559	$	2,081,224
Mortgage-backed securities		819,678		—		21,070		798,608
Asset-backed securities		95,006,241		646,335		404,752		95,247,824
States and political subdivisions -- general obligations		240,494		8,788		—		249,282
States and political subdivisions -- special revenue		25,112		179		—		25,291
Corporate		18,493,077		501,022		154,467		18,839,632
Total fixed maturities	$	116,676,312	$	1,163,397	$	597,848	$	117,241,861
Mortgage loans on real estate, held for investment		13,810,041		—		—		13,810,041
Derivatives		490,831		87,684		3,221		575,294
Investment Escrow		3,899,986		—		—		3,899,986
Other invested assets		2,468,947		—		—		2,468,947
Preferred stock		500,000		—		—		500,000
Total Investments	$	137,846,117	$	1,251,081	$	601,069	$	138,496,129
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

The Company had two securities that individually exceed 10% of the total of the state and political subdivisions categories as of December 31, 2019. The amortized cost, fair value, credit rating, and description of each such security is as follows:


	Amortized		Estimated
	Cost		Fair Value		Credit Rating
December 31, 2019:
Fixed maturities:
States and political subdivisions -- general obligations
Bellingham, Washington	$	107,709	$	115,597	AA+
Longview, Washington Refunding		132,785		133,685	Aa3
Total	$	240,494	$	249,282

The following table summarizes, for all securities in an unrealized loss position at December 31, 2019 and 2018, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position.


	December 31, 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	$	1,518,772	$	14,935		9	$	7,862	$	430		1
Asset-backed securities		39,114,732		404,752		26		—		—		—
Mortgage-back securities		160,010		4,844		4		—		—		—
Corporate		2,800,815		13,618		4		3,351,664		315,617		23
Greater than 12 months:
U.S. government obligations		353,834		2,624		2		1,785,949		116,682		10
Mortgage-back securities		638,598		16,226		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		2,201,658		140,849		13		10,628,745		1,342,918		58
Total fixed maturities	$	46,788,419	$	597,848		72	$	17,066,628	$	1,842,919		114

(1)

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

Based on our review of the securities in an unrealized loss position at December 31, 2019 and 2018, no other-than-temporary impairments were deemed necessary. Management believes that the Company will fully recover its cost basis in the securities held at December 31, 2019, and management does not have the intent to sell nor is it more likely than not that the Company will be required to sell such securities before they recover or mature.

The amortized cost and estimated fair value of fixed maturities at December 31, 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. No securities are due in the next year to further support management’s decision not to recognize an other-than-temporary impairment.


	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	101,205	$	100,958
Due after one year through five years		2,649,457		2,724,011
Due after five years through ten years		21,925,465		22,013,673
Due after ten years through twenty years		84,210,270		84,473,538
Due after twenty years		7,789,915		7,929,681
	$	116,676,312	$	117,241,861

The Company is required to hold assets on deposit for the benefit of policyholders in accordance with insurance rules and regulations. At December 31, 2019 and 2018, these required deposits had a total amortized cost of $3,611,292 and $2,958,178 and fair values of $3,612,844 and $2,772,809, respectively.

The components of net investment income for the years ended December 31, 2019 and 2018 are as follows:


	Year Ended December 31,
	2019		2018
Fixed maturities	$	292,453	$	789,949
Other		38,397		44,614
Gross investment income		330,850		834,563
Less investment expenses		(210,269)		(318,675)
Investment (loss) income, net of expenses	$	120,581	$	515,888

Proceeds for the years ended December 31, 2019 and 2018 from sales of investments classified as available-for-sale were $5,752,910 and $10,043,118 respectively. Gross gains of $268,848 and $27,972 and gross losses of $30,885 and $367,792 were realized on sales and the realized losses on sales during the year ended December 31, 2019 and 2018, respectively.