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Stockholder's Equity and Statutory Accounting Principles
6 Months Ended
Jun. 30, 2016
Stockholder's Equity and Statutory Accounting Principles

Note 8. Stockholder’s Equity and Statutory Accounting Principles

 

The Company’s statutory financial statements are presented on the basis of accounting practices prescribed or permitted by the Insurance Department of the State of Arkansas. The State of Arkansas has adopted the National Association of Insurance Commissioners’ (“NAIC”) statutory accounting principles as the basis of its statutory accounting principles.

The Company’s statutory net (loss) income for the six months ended June 30, 2016 and 2015 was ($53,324) and $62,258, respectively. Statutory capital and surplus at June 30, 2016 and December 31, 2015 was $680,416 and $790,252, respectively.

For the six months ended June 30, 2016 the Company paid $75,000 in extraordinary dividends to Transamerica Corporation. For the six months ended June 30, 2015, the Company did not pay any dividends to AUSA. During the first six months of 2016 and 2015, the Company paid a $13,501 return of capital to Transamerica Corporation and received capital contributions of $6,842 from AUSA, respectively.

A financial examination of the Company by the Insurance Department of the State of Arkansas for the period January 1, 2010 through December 31, 2014, was completed in June 2016. There were no significant examination findings. There were no adjustments made to surplus as a result of the examination.