Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements

12 Months Ended

Dec. 31, 2019

Reconciliation Of Statutory Filings To Amounts Reported

15 - Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements

Our insurance subsidiaries must file financial statements with state insurance regulatory authorities using accounting principles and practices prescribed or permitted by those authorities. We refer to these accounting principles and practices as statutory accounting principles (“SAP”). Accounting principles used to prepare these SAP financial statements differ from those used to prepare financial statements on the basis of GAAP.

Reconciliations of statutory net

income

(loss) and capital and surplus, as determined using SAP, to the net

income

(loss) and stockholders’ equity amounts included in the accompanying consolidated financial statements are as follows:


	Year Ended December 31,
	2019			2018			2017
Statutory net income (loss) of insurance subsidiaries	$	44,680,696		$	(33,246,417	)	$	1,677,549
Increases (decreases):
Deferred policy acquisition costs		(1,330,268	)		325,267			3,980,664
Deferred federal income taxes		639,284			4,179,807			1,334,410
Salvage and subrogation recoverable		207,000			2,061,600			1,199,200
Consolidating eliminations and adjustments		(11,048,314	)		(16,013,971	)		(13,534,428	)
Parent-only net income		14,003,346			9,933,374			12,458,705

Net income (loss)	$	47,151,744		$	(32,760,340	)	$	7,116,100


	December 31,
	2019			2018			2017
Statutory capital and surplus of insurance subsidiaries	$	418,449,596		$	364,518,536		$	407,125,532
Increases (decreases):
Deferred policy acquisition costs		59,284,859			60,615,127			60,289,860
Deferred federal income taxes		(15,477,843	)		(20,094,374	)		(14,422,511	)
Salvage and subrogation recoverable		20,245,200			20,038,200			17,976,600
Non-admitted assets and other adjustments, net		1,727,754			1,904,083			1,960,089
Fixed maturities		(326,795	)		(16,528,367	)		(8,748,140	)
Parent-only equity and other adjustments		(32,887,252	)		(11,583,304	)		(15,485,326	)

Stockholders’ equity	$	451,015,519		$	398,869,901		$	448,696,104