Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments in available for sale securities are summarized as follows:

March 31, 2018	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	7,652,991	$	20,049	$	(159,276	)	$	7,513,764
U.S. special revenue and assessments		9,013,518		490,293		0			9,503,811
All other corporate bonds		148,224,554		15,208,888		(1,246,704	)		162,186,738
	$	164,891,063	$	15,719,230	$	(1,405,980	)	$	179,204,313

December 31, 2017	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	2,679,325	$	33,802	$	(73,530	)	$	2,639,597
U.S. special revenue and assessments		9,012,232		620,789		0			9,633,021
All other corporate bonds		148,220,954		18,359,816		(298,163	)		166,282,607
		159,912,511		19,014,407		(371,693	)		178,555,225
Equity securities (1)		35,712,633		23,648,201		(512,343	)		58,848,491
Total	$	195,625,144	$	42,662,608	$	(884,036	)	$	237,403,716

Debt Securities by Contractual Maturity

The amortized cost and estimated market value of debt securities at March 31, 2018, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale March 31, 2018	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,218,125	$	1,239,718
Due after one year through five years		36,349,018		47,511,317
Due after five years through ten years		43,553,027		45,272,788
Due after ten years		83,770,893		85,180,490
Total	$	164,891,063	$	179,204,313

Fair Value of Investments with Sustained Gross Unrealized Losses

The fair value of investments with sustained gross unrealized losses at March 31, 2018 and December 31, 2017 are as follows:

March 31, 2018	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	4,925,360	$	(47,756	)	$	1,567,604	$	(111,520	)	$	6,492,964	$	(159,276	)
All other corporate bonds		35,719,080		(764,493	)		6,463,651		(482,211	)		42,182,731		(1,246,704	)
Total fixed maturities	$	40,644,440	$	(812,249	)	$	8,031,255		(593,731	)	$	48,675,695		(1,405,980	)

December 31, 2017	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	$	0		$	1,604,987	$	(73,530	)	$	1,604,987	$	(73,530	)
All other corporate bonds		9,732,635		(91,757	)		11,164,317		(206,406	)		20,896,952		(298,163	)
Total fixed maturities	$	9,732,635	$	(91,757	)	$	12,769,304		(279,936	)	$	22,501,939		(371,693	)

Equity securities (1)	$	4,130,260	$	(270,774	)	$	1,526,868	$	(241,569	)	$	5,657,128	$	(512,343	)

Securities in Continuous Unrealized Loss Position

Additional information regarding investments in an unrealized loss position is as follows:

	Less than 12 months	12 months or longer	Total
As of March 31, 2018
Fixed maturities	24	6	30
As of December 31, 2017
Fixed maturities	6	6	12
Equity securities (1)	2	2	4

(1)	Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2 to the Condensed Consolidated Financial Statements for additional information.

Net Investment Gains (Losses) and Change in Net Unrealized Gains on AFS Investments

The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments.

	Three Months Ended
	March 31,
	2018			2017
Realized gains on available-for-sale investments:
Sales of fixed maturities	$	0		$	0
Sales of equity securities		0			0
Other		534,242			0
Total realized gains		534,242			0
Realized losses on available-for-sale investments:
Sales of fixed maturities		0			(14,344	)
Sales of equity securities		0			0
Other-than-temporary impairments		0			(484,347	)
Other		0			0
Total realized losses		0			(498,691	)
Net realized investment gains (losses)		534,242			(498,691	)
Change in fair value of equity securities:
Change in fair value of equity securities sold during the period		0			0
Change in fair value of equity securities held at the end of the period		4,129,236			0
Change in fair value of equity securities		4,129,236			0
Net investment gains (losses)	$	4,663,478		$	(498,691	)
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	(4,285,303	)	$	3,033,099
Equity securities (1)		0			1,423,580
Net increase (decrease)	$	(4,285,303	)	$	4,456,679

(1)

Effective January 1, 2018, the Company adopted ASU No. 2016-01. As a result, equity securities are no longer classified as available-for-sale with unrealized gains and losses recognized in other comprehensive income; rather, all changes in the fair value of equity securities are now recognized in net income (loss). Prior periods have not been restated to conform to the current presentation. See note 2 to the Condensed Consolidated Financial Statements for additional information.

Other than Temporary Impairment

Based on Management's review of the investment portfolio, the Company recorded the following losses for other-than-temporary impairments in the Consolidated Statements of Operations for the periods ended March 31:

	Three Months Ended
	March 31,
	2018			2017
Other than temporary impairments:
Real estate		$	0		$	484,347
Total other than temporary impairments		$	0		$	484,347

Maximum and Minimum Lending Rates for Mortgage Loans

During 2018 and 2017, the maximum and minimum lending rates for mortgage loans were:

	2018		2017
	Maximum rate	Minimum rate	Maximum rate	Minimum rate
Farm Loans	5.00%	5.00%	5.00%	5.00%
Commercial Loans	7.50%	4.00%	7.50%	4.00%
Residential Loans	8.00%	5.00%	8.00%	4.00%

Mortgage Loans

The following table summarizes the mortgage loan holdings of the Company for the periods ended:

	March 31, 2018		December 31, 2017
In good standing	$	12,108,873	$	15,310,941
Overdue interest over 90 days		3,201,463		0
Restructured		0		0
In process of foreclosure		0		2,003,536
Total mortgage loans	$	15,310,336	$	17,314,477
Total foreclosed loans during the year	$	0	$	0

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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