Correction of Immaterial Errors and Reclassificaiton of Certain Amounts (Notes)

12 Months Ended

Dec. 31, 2017

Correction of Immaterial Errors and Reclassifications of Certain Amounts [Abstract]

Accounting Changes and Error Corrections [Text Block]

Correction of Immaterial Errors and Reclassification of Certain Amounts

Correction of Immaterial Errors

In the course of preparing its consolidated financial statements for the year ended December 31, 2016, the Company identified immaterial errors in its previously filed financial statements. The errors were in the Company’s accounting for DAC and future policy benefits in the life insurance segment and several other immaterial errors in our other two segments.

Two of the errors were discovered in connection with the Company’s ongoing conversion of its actuarial valuation from a third party service provider to an actuarial valuation modeling software system purchased from a vendor. The errors in valuing DAC and future policy benefits caused the Company to understate amortization of DAC over several years and to overstate the increase in future policy benefit reserves during the same periods, resulting in an overstatement of DAC of $0.3 million and an overstatement of future policy benefits of $7.9 million at December 31, 2015. There were several other immaterial errors that resulted in negligible impact at December 31, 2015. Correcting the errors resulted in a reduction in the Company’s net losses of $0.4 million in 2015.

The Company assessed the materiality of these errors on its previously reported annual financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined that the errors were immaterial to each of the previously reported periods. However, the Company determined that the adjustment to correct the error, if recorded in 2016 operating results, would materially misstate the 2016 financial statements. Accordingly, we are correcting the errors by restating the prior period information, and therefore have revised the Consolidated Statement of Financial Position as of December 31, 2015, the Consolidated Statements of Operations and Comprehensive Income (Loss), the Consolidated Statements of Stockholders’ Equity and the Consolidated Statements of Cash Flows for the years ended December 31, 2015.

The line item effects of these immaterial error corrections are detailed below.

2015	As Reported			Restatement		As Adjusted
	(In thousands)
Consolidated Statements of Financial Position
Deferred policy acquisition costs	$	165,362		(1,670	)	163,692
Deferred tax asset	68,764			(1,619	)	67,145
Total assets	1,484,040			(3,289	)	1,480,751
Liabilities:
Future policy benefit reserves:
Life insurance	$	995,972		(8,599	)	987,373
Total policy liabilities	1,140,879			(8,599	)	1,132,280
Current federal income tax payable	71,225			757		71,982
Other liabilities	24,205			144		24,349
Total liabilities	1,241,523			(7,698	)	1,233,825
Accumulated deficit	(22,626		)	4,409		(18,217	)
Total stockholders' equity	242,517			4,409		246,926
Total liabilities and stockholders' equity	1,484,040			(3,289	)	1,480,751
Consolidated Statements of Operations and Comprehensive Income (Loss)
Increase in future policy benefit reserves	$	77,929		(869	)	77,060
Total insurance benefits paid or provided	167,555			(869	)	166,686
Other general expenses	33,143			144		33,287
Amortization of deferred policy acquisition costs	23,339			61		23,400
Total benefits and expenses	238,875			(664	)	238,211
Income (loss) before federal income tax expense	(2,607		)	664		(1,943	)
Federal income tax expense	972			228		1,200
Net income (loss)	(3,579		)	436		(3,143	)
Basic and diluted earnings (losses) per share of Class A common stock	(0.07		)	0.01		(0.06	)
Basic and diluted earnings (losses) per share of Class B common stock	(0.04		)	0.01		(0.03	)
Comprehensive income (loss)	(15,842		)	436		(15,406	)
Consolidated Statements of Stockholders' Equity
Balance at December 31, 2014	$	258,359		3,973		262,332
Net income (loss)	(3,579		)	436		(3,143	)
Balance at December 31, 2015	242,517			4,409		246,926
Consolidated Statements of Cash Flows
Net income (loss)	$	(3,579	)	436		(3,143	)
Net deferred policy acquisition costs	(7,765		)	61		(7,704	)
Deferred federal income tax benefit	4,043			(528	)	3,515
Future policy benefit reserves	77,770			(869	)	76,901
Commission payable and other liabilities	473			144		617
Federal income tax payable	(7,593		)	756		(6,837	)
Net cash provided by operating activities	87,153			—		87,153