Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 01, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AMERINST INSURANCE GROUP LTD | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 995,253 | ||
Entity Public Float | $21,244,404 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1065201 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Investments (Notes 3 and 4): | ||
Fixed maturity investments, at fair value (amortized cost $6,363,646 and $8,186,861) | $6,442,549 | $8,232,335 |
Equity securities, at fair value (cost $9,310,880 and $6,648,142) | 14,497,958 | 13,028,052 |
TOTAL INVESTMENTS | 20,940,507 | 21,260,387 |
Cash and cash equivalents | 2,723,369 | 2,333,806 |
Restricted cash and cash equivalents | 1,110,372 | 151,414 |
Other invested assets (Note 5) | 1,470,000 | 1,470,000 |
Assumed reinsurance premiums receivable | 837,712 | 468,438 |
Accrued investment income | 53,409 | 70,881 |
Property and equipment (Note 6) | 291,983 | 486,234 |
Deferred policy acquisition costs | 768,259 | 402,607 |
Prepaid expenses and other assets | 834,067 | 550,456 |
TOTAL ASSETS | 29,029,678 | 27,194,223 |
LIABILITIES | ||
Unpaid losses and loss adjustment expenses (Note 7) | 4,177,277 | 2,720,286 |
Unearned premiums | 2,076,370 | 1,088,126 |
Assumed reinsurance payable | 28,533 | 101,809 |
Accrued expenses and other liabilities | 2,409,771 | 1,779,595 |
TOTAL LIABILITIES | 8,691,951 | 5,689,816 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Common shares, $1 par value, 2014 and 2013: 2,000,000 shares authorized, 995,253 issued and outstanding | 995,253 | 995,253 |
Additional paid-in-capital | 6,287,293 | 6,287,293 |
Retained earnings | 15,926,472 | 15,670,012 |
Accumulated other comprehensive income | 5,265,981 | 6,425,384 |
Shares held by Subsidiary (339,862 and 331,577 shares) at cost | -8,137,272 | -7,873,535 |
TOTAL SHAREHOLDERS’ EQUITY | 20,337,727 | 21,504,407 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $29,029,678 | $27,194,223 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed maturity investments, amortized cost (in Dollars) | $6,363,646 | $8,186,861 |
Equity securities, cost (in Dollars) | $9,310,880 | $6,648,142 |
Common shares, par value (in Dollars per share) | $1 | $1 |
Common shares, shares authorized | 2,000,000 | 2,000,000 |
Common shares, issued | 995,253 | 995,253 |
Common shares, outstanding | 995,253 | 995,253 |
Shares held by Subsidiary | 339,862 | 331,577 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | ||
Net premiums earned (Note 9) | $3,669,493 | $2,063,277 |
Commission income | 2,221,538 | 1,376,622 |
Net investment income (Note 4) | 270,898 | 276,084 |
Net realized gain on investments (Note 4) | 2,709,187 | 2,857,323 |
TOTAL REVENUES | 8,871,116 | 6,573,306 |
LOSSES AND EXPENSES | ||
Losses and loss adjustment expenses (Note 7) | 2,330,128 | 1,945,857 |
Policy acquisition costs | 1,357,718 | 763,423 |
Operating and management expenses (Note 10) | 4,604,482 | 4,227,036 |
TOTAL LOSSES AND EXPENSES | 8,292,328 | 6,936,316 |
INCOME (LOSS) BEFORE TAX | 578,788 | -363,010 |
Income tax expense (Note 11) | 0 | 0 |
NET INCOME (LOSS) AFTER TAX | $578,788 | ($363,010) |
BASIC AND DILUTED INCOME (LOSS) PER SHARE (in Dollars per share) | $0.87 | ($0.54) |
Weighted average number of common shares outstanding for the year (in Shares) | 662,693 | 674,110 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
NET INCOME (LOSS) AFTER TAX | $578,788 | ($363,010) |
OTHER COMPREHENSIVE (LOSS) INCOME | ||
Net unrealized holding gains arising during the period | 1,549,784 | 3,493,631 |
Reclassification adjustment for (gains) included in net income (loss) | -2,709,187 | -2,857,323 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | -1,159,403 | 636,308 |
COMPREHENSIVE (LOSS) INCOME | ($580,615) | $273,298 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Shares Held by Subsidiary [Member] | Total |
Balance at Dec. 31, 2012 | $995,253 | $6,287,293 | $16,349,448 | $5,789,076 | ($7,499,230) | $21,921,840 |
Net income (loss) | -363,010 | -363,010 | ||||
Other comprehensive income | ||||||
Unrealized gains on securities, net of reclassification adjustment | 636,308 | 636,308 | ||||
Purchase of shares by subsidiary, net | -374,305 | -374,305 | ||||
Dividends ($0.50 per share) | -316,426 | -316,426 | ||||
Balance at Dec. 31, 2013 | 995,253 | 6,287,293 | 15,670,012 | 6,425,384 | -7,873,535 | 21,504,407 |
Net income (loss) | 578,788 | 578,788 | ||||
Other comprehensive income | ||||||
Unrealized gains on securities, net of reclassification adjustment | -1,159,403 | -1,159,403 | ||||
Purchase of shares by subsidiary, net | -263,737 | -263,737 | ||||
Dividends ($0.50 per share) | -322,328 | -322,328 | ||||
Balance at Dec. 31, 2014 | $995,253 | $6,287,293 | $15,926,472 | $5,265,981 | ($8,137,272) | $20,337,727 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends, per share | $0.50 | $0.50 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $578,788 | ($363,010) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of net premiums on investments | 42,990 | 40,917 |
Depreciation and amortization on property and equipment | 216,943 | 211,414 |
Net realized gains on sale of investments | -2,709,187 | -2,857,323 |
Changes in assets and liabilities: | ||
Assumed reinsurance premiums receivable | -369,274 | -193,912 |
Accrued investment income | 17,472 | 6,739 |
Deferred policy acquisition costs | -365,652 | -133,964 |
Prepaid expenses and other assets | -283,611 | -138,391 |
Liability for losses and loss adjustment expenses | 1,456,991 | 1,312,096 |
Unearned premiums | 988,244 | 362,082 |
Assumed reinsurance payable | -73,276 | -77,071 |
Accrued expenses and other liabilities | 630,176 | 288,868 |
Net cash provided by (used in) operating activities | 130,604 | -1,541,555 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Movement in restricted cash and cash equivalents | -958,958 | 1,198,330 |
Purchases of property and equipment | -22,692 | -108,352 |
Purchases of available-for-sale securities | -4,868,150 | -4,623,641 |
Proceeds from sales of available-for-sale securities | 4,939,598 | 5,985,270 |
Proceeds from redemptions of fixed maturity investments | 125,226 | |
Proceeds from maturities of fixed maturity investments | 1,630,000 | 1,080,000 |
Net cash provided by investing activities | 845,024 | 3,531,607 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid | -322,328 | -316,426 |
Purchase of shares by subsidiary, net | -263,737 | -374,305 |
Net cash used in financing activities | -586,065 | -690,731 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 389,563 | 1,299,321 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,333,806 | 1,034,485 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $2,723,369 | $2,333,806 |
Note_1_Description_of_Business
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. DESCRIPTION OF BUSINESS |
AmerInst Insurance Group, Ltd., (“AmerInst”, “Company”, “we”, “our” or “us.”) was formed under the laws of Bermuda in 1998. The Company, through its wholly owned subsidiary AmerInst Insurance Company, Ltd. (“AMIC Ltd.”) and its predecessor AmerInst Insurance Company, Inc. (“AIIC Inc.”), were engaged in the reinsurance of claims-made insurance policies of participants in an American Institute of Certified Public Accountants (“AICPA”) sponsored insurance program that provides accountants’ professional liability insurance coverage (“AICPA Plan”) through December 31, 2008. | |
The reinsurance activity of AMIC Ltd. depends upon agreements entered into with outside parties. | |
Entry into Agency Agreement | |
On September 25, 2009, AmerInst Professional Services, Limited, an indirect wholly-owned subsidiary (“APSL”), entered into an agency agreement (the “Agency Agreement”) with The North River Insurance Company, United States Fire Insurance Company, Crum & Forster Indemnity Company, Crum and Forster Insurance Company, and Crum & Forster Specialty Insurance Company (collectively, “C&F”) pursuant to which C&F appointed APSL as its exclusive agent for the purposes of soliciting, underwriting, quoting, binding, issuing, cancelling, non-renewing and endorsing accountants’ professional liability and lawyers’ professional liability insurance coverage in all 50 states of the United States and the District of Columbia. The initial term of the Agency Agreement was for four years with automatic one-year renewals thereafter. The Agency Agreement automatically renewed on September 25, 2014. | |
Entry into Reinsurance Agreement | |
We conduct our reinsurance business through AMIC Ltd., our subsidiary, which is a registered insurer in Bermuda. On September 25, 2009, AMIC Ltd. entered into a professional liability quota share agreement with C&F (the “Reinsurance Agreement”) pursuant to which C&F agreed to cede and AMIC Ltd. agreed to accept as reinsurance a 50% quota share of C&F’s liability under insurance written by APSL on behalf of C&F and classified by C&F as accountants’ professional liability and lawyers’ professional liability, subject to AMIC Ltd.’s surplus limitations. The term of Reinsurance Agreement is continuous and may be terminated by either party for any reason on or not less than 120 days’ prior written notice. | |
Historical Relationship with CNA | |
Historically, the primary business activity of our wholly owned insurance subsidiary, AMIC Ltd., had been to act as a reinsurer of professional liability insurance policies that were issued under the Professional Liability Insurance Plan sponsored by the AICPA. The AICPA plan offers professional liability coverage to accounting firms and individual CPAs in all 50 states. | |
Our reinsurance activity depends upon agreements with outside parties. AMIG, our predecessor entity, began our reinsurance relationship with CNA in 1993. | |
On January 5, 2009, AMIC Ltd. received written notice from CNA that CNA did not intend to renew the reinsurance program encompassed by the Reinsurance Treaties. In 2008, the business relationship with CNA accounted for approximately 95% of AmerInst’s net premiums earned. | |
On May 15, 2009, AMIC Ltd. and CNA entered into a Commutation Agreement whereby, effective January 1, 2009, in exchange for a payment of a portion of the reserves which we had previously set aside, CNA assumed responsibility for prior years’ undetermined and unpaid liabilities. | |
Historical Relationship with CAMICO | |
From June 1, 2005 through May 31, 2009, we were a party to a reinsurance contract with CAMICO Mutual Insurance Company (“CAMICO”), a California-based writer of accountants’ professional liability business. | |
We decided not to renew the CAMICO contract and permitted the contract to expire pursuant to its terms on May 31, 2009. We remain potentially liable for claims related to coverage through May 31, 2009. | |
RINITS™ | |
AmerInst has filed an application with the U.S. Patent and Trade Office for a patent on a unique financing concept called RINITS™ that it has developed to securitize insurance and reinsurance risk, involving property, casualty, life and health risks. Such securitization would be accomplished through equity and debt financing of Bermuda special purpose companies licensed as reinsurers. It is AmerInst’s intention to grant patent licenses to the special purpose companies utilizing this structure and investment banking organizations which would market the securities. In addition to the license royalties, AmerInst would manage the special purpose companies for a fee, and at its option could invest in them as well. However, AmerInst may not be issued a patent. | |
In addition to the patent application, AmerInst has obtained a trademark under which the concept would be marketed. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SIGNIFICANT ACCOUNTING POLICIES |
Basis of presentation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of AmerInst and its operating wholly owned subsidiaries, AmerInst Mezco, Ltd. (“Mezco”), AMIC Ltd., APSL and AmerInst Investment Company, Ltd. (“Investco”). Intercompany accounts and transactions have been eliminated on consolidation. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The major estimates reflected in the Company’s financial statements include but are not limited to the liability for loss and loss adjustment expenses. | |
Premiums | |
Premiums assumed are earned on a pro rata basis over the terms of the underlying policies to which they relate. Premiums assumed relating to the unexpired portion of policies in force at the balance sheet date are recorded as unearned premiums. | |
Deferred policy acquisition costs | |
Ceding commissions related to assumed reinsurance agreements are deferred and amortized pro rata over the terms of the underlying policies to which they relate. | |
Liability for losses and loss adjustment expenses | |
The liability for unpaid losses and loss adjustment expenses includes case basis estimates of reported losses plus supplemental amounts for projected losses incurred but not reported (IBNR), calculated based upon loss projections utilizing certain actuarial assumptions and AMIC Ltd.’s historical loss experience supplemented with industry data. The aggregate liability for unpaid losses and loss adjustment expenses at year end represents management’s best estimate, based upon the available data, of the amount necessary to cover the ultimate cost of loss, based upon an actuarial analysis prepared by independent actuaries. However, because of the volatility inherent in professional liability coverage, actual loss experience may not conform to the assumptions used in determining the estimated amounts for such liability at the balance sheet date. Accordingly, the ultimate liability could be significantly in excess of or less than the amount indicated in the financial statements. As adjustments to these estimates become necessary, such adjustments are reflected in current operations. AMIC Ltd. does not discount its loss reserves for purposes of these financial statements. | |
We review the independent actuaries’ reports for consistency and appropriateness of methodology and assumptions, including assumptions of industry benchmarks and discuss any concerns or changes with them. Our Underwriting Committee then considers the reasonableness of loss reserves recommended by our independent actuaries, in light of actual loss development during the year and approve the loss reserves to be recorded by AMIC Ltd. | |
The anticipated effect of inflation is implicitly considered when estimating liabilities for unpaid losses and loss adjustment expenses. Future average severities are projected based on historical trends adjusted for anticipated trends, are monitored based on actual developments and are modified if necessary. | |
Investments | |
AmerInst classifies all of its investments as available-for-sale. Accordingly, AmerInst reports these securities at their estimated fair values with unrealized holding gains and losses being reported as other comprehensive income. Realized gains and losses on sales of investments are accounted for by specifically identifying the cost and are reflected in the income statement in the period of sale. | |
Declines in the fair value of investments below cost are evaluated for other than temporary impairment losses. The evaluation for other than temporary impairment losses is a quantitative and qualitative process which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. The risks and uncertainties include the Company’s intent and ability to hold the security, changes in general economic conditions, the issuer’s financial condition or near term recovery prospects, and the effects of changes in interest rates. AmerInst’s accounting policy requires that a decline in the value of a security below its cost basis be assessed to determine if the decline is other than temporary. If so, the security is deemed to be impaired and a charge is recorded in net realized losses equal to the difference between the fair value and the cost basis of the security. The fair value of the impaired investment becomes its new cost basis. | |
Cash and cash equivalents | |
Cash equivalents include money market funds and highly liquid debt instruments purchased with an original maturity of three months or less. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. | |
Property and Equipment | |
Property and equipment are depreciated using the straight-line method with estimated useful lives ranging from 3 to 7 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for normal maintenance and repairs are expensed as incurred. | |
Developmental costs for internal use software are capitalized in accordance with the provisions of the Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) topic 350 “Intangibles—Goodwill and Other”, generally, when the preliminary project stage is completed, management commits to funding and it is probable that the project will be completed and the software will be used to perform the functions intended. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives, generally for a period not to exceed 5 years. | |
Income taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. Management evaluates the reliability of the deferred tax assets and assesses the need for additional valuation allowance annually. | |
Earnings per common share | |
Basic earnings per share is determined as net income available to common shareholders divided by the weighted average number of common shares outstanding for the period. There are no dilutive securities. | |
New Accounting Pronouncements | |
Accounting Standards Not Yet Adopted | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services—Insurance. ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on future financial statements and related disclosures. | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued Accounting Standards Update 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). Currently, there is no guidance under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective for the year ended December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. |
Note_3_Pledged_Assets
Note 3 - Pledged Assets | 12 Months Ended |
Dec. 31, 2014 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | 3. PLEDGED ASSETS |
Pursuant to its reinsurance agreements, AMIC Ltd. is required to provide its ceding companies with collateral to secure its obligations to them. At December 31, 2014 and 2013, AMIC Ltd. provided CAMICO with a letter of credit issued by Comerica Bank with supporting investments with a carrying value of $805,745 and $823,905, respectively. Also, at December 31, 2014 and 2013, AMIC Ltd. has provided C&F with a Section 114 Trust, held by Comerica Bank, with restricted cash and cash equivalents and investments with a carrying value of $7,251,000 and $6,998,324, respectively. |
Note_4_Investments
Note 4 - Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. INVESTMENTS | ||||||||||||||||||||||||
The cost or amortized cost, gross unrealized holding gains and losses, and estimated fair value of fixed maturity investments, by major security type, and equity securities at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | 447,722 | $ | 3,637 | $ | — | $ | 451,359 | |||||||||||||||||
Obligations of states and political subdivisions | 5,601,616 | 85,978 | (22,093 | ) | 5,665,501 | ||||||||||||||||||||
Corporate debt securities | 314,308 | 11,381 | — | 325,689 | |||||||||||||||||||||
Total fixed maturity investments | 6,363,646 | 100,996 | (22,093 | ) | 6,442,549 | ||||||||||||||||||||
Equity securities | 8,310,880 | 4,559,699 | (62,458 | ) | 12,808,121 | ||||||||||||||||||||
Hedge fund | 1,000,000 | 689,837 | — | 1,689,837 | |||||||||||||||||||||
Total equity securities | 9,310,880 | 5,249,536 | (62,458 | ) | 14,497,958 | ||||||||||||||||||||
Total investments | $ | 15,674,526 | $ | 5,350,532 | $ | (84,551 | ) | $ | 20,940,507 | ||||||||||||||||
Cost or | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | 447,212 | $ | — | $ | (695 | ) | $ | 446,517 | ||||||||||||||||
Obligations of states and political subdivisions | 7,418,912 | 116,530 | (84,531 | ) | 7,450,911 | ||||||||||||||||||||
Corporate debt securities | 320,737 | 14,170 | — | 334,907 | |||||||||||||||||||||
Total fixed maturity investments | 8,186,861 | 130,700 | (85,226 | ) | 8,232,335 | ||||||||||||||||||||
Equity securities | 5,648,142 | 5,748,310 | — | 11,396,452 | |||||||||||||||||||||
Hedge fund | 1,000,000 | 631,600 | — | 1,631,600 | |||||||||||||||||||||
Total equity securities | 6,648,142 | 6,379,910 | — | 13,028,052 | |||||||||||||||||||||
Total investments | $ | 14,835,003 | $ | 6,510,610 | $ | (85,226 | ) | $ | 21,260,387 | ||||||||||||||||
The following tables summarize the Company’s fixed maturity and equity securities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: | |||||||||||||||||||||||||
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Obligations of states and political subdivisions | 2,373,133 | (22,093 | ) | — | — | 2,373,133 | (22,093 | ) | |||||||||||||||||
Corporate debt securities | — | — | — | — | — | — | |||||||||||||||||||
Total fixed maturity investments | 2,373,133 | (22,093 | ) | — | — | 2,373,133 | (22,093 | ) | |||||||||||||||||
Equity securities | — | — | 1,159,287 | (62,458 | ) | 1,159,287 | (62,458 | ) | |||||||||||||||||
Hedge fund | — | — | — | — | — | — | |||||||||||||||||||
Total equity securities | — | — | 1,159,287 | (62,458 | ) | 1,159,287 | (62,458 | ) | |||||||||||||||||
Total investments | $ | 2,373,133 | $ | (22,093 | ) | $ | 1,159,287 | $ | (62,458 | ) | $ | 3,532,420 | $ | (84,551 | ) | ||||||||||
As of December 31, 2014, there were twenty-three securities in an unrealized loss position with an estimated fair value of $3,532,420. Of these securities, nine had been in an unrealized loss position for 12 months or greater. As of December 31, 2014, none of these securities were considered to be other than temporarily impaired. The Company has the intent to hold these securities and it is not more likely than not that the Company will be required to sell these securities before their fair values recover above the adjusted cost. The unrealized losses from these securities were not a result of credit, collateral or structural issues. | |||||||||||||||||||||||||
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | — | $ | — | $ | 446,517 | $ | (695 | ) | $ | 446,517 | $ | (695 | ) | |||||||||||
Obligations of states and political subdivisions | 218,232 | (12,689 | ) | 2,504,591 | (71,842 | ) | 2,722,823 | (84,531 | ) | ||||||||||||||||
Corporate debt securities | — | — | — | — | — | — | |||||||||||||||||||
Total fixed maturity investments | 218,232 | (12,689 | ) | 2,951,108 | (72,537 | ) | 3,169,340 | (85,226 | ) | ||||||||||||||||
Equity securities | — | — | — | — | — | — | |||||||||||||||||||
Hedge fund | — | — | — | — | — | — | |||||||||||||||||||
Total equity securities | — | — | — | — | — | — | |||||||||||||||||||
Total investments | $ | 218,232 | $ | (12,689 | ) | $ | 2,951,108 | $ | (72,537 | ) | $ | 3,169,340 | $ | (85,226 | ) | ||||||||||
As of December 31, 2013, there were eleven securities in an unrealized loss position with an estimated fair value of $3,169,340. Of these securities, one had been in an unrealized loss position for 12 months or greater. As of December 31, 2013, none of these securities were considered to be other than temporarily impaired. The Company has the intent to hold these securities and it is not more likely than not that the Company will be required to sell these securities before their fair values recover above the adjusted cost. The unrealized losses from these securities were not a result of credit, collateral or structural issues. | |||||||||||||||||||||||||
The cost or amortized cost and estimated fair value of fixed maturity investments at December 31, 2014 and 2013 by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations without penalties. | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Due in one year or less | $ | 660,269 | $ | 665,201 | |||||||||||||||||||||
Due after one year through five years | 5,077,084 | 5,157,518 | |||||||||||||||||||||||
Due after five years through ten years | 447,167 | 443,984 | |||||||||||||||||||||||
Due after ten years | 179,126 | 175,846 | |||||||||||||||||||||||
Total | $ | 6,363,646 | $ | 6,442,549 | |||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Due in one year or less | $ | 1,759,042 | $ | 1,791,377 | |||||||||||||||||||||
Due after one year through five years | 4,365,014 | 4,407,628 | |||||||||||||||||||||||
Due after five years through ten years | 1,878,035 | 1,864,567 | |||||||||||||||||||||||
Due after ten years | 184,770 | 168,763 | |||||||||||||||||||||||
Total | $ | 8,186,861 | $ | 8,232,335 | |||||||||||||||||||||
Information on sales and maturities of investments during the twelve months ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Total proceeds on sales of available-for-sale securities | $ | 4,939,598 | $ | 5,985,270 | |||||||||||||||||||||
Total proceeds from redemptions of fixed maturity investments | 125,226 | — | |||||||||||||||||||||||
Total proceeds from maturities of fixed maturity investments | 1,630,000 | 1,080,000 | |||||||||||||||||||||||
Gross gains on sales | 2,838,541 | 2,938,477 | |||||||||||||||||||||||
Gross losses on sales | (7,731 | ) | — | ||||||||||||||||||||||
Impairment losses | (121,623 | ) | (81,154 | ) | |||||||||||||||||||||
Fair Value of Investments | |||||||||||||||||||||||||
The following tables show the fair value of the Company’s investments in accordance with ASC 820, “Fair Value Measurements and Disclosures” as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
Fair value measurement using: | |||||||||||||||||||||||||
Carrying | Total fair | Quoted prices | Significant other | Significant | |||||||||||||||||||||
amount | value | in active | observable inputs | unobservable inputs | |||||||||||||||||||||
markets for | (Level 2) | (Level 3) | |||||||||||||||||||||||
identical assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. government agency securities | $ | 451,359 | $ | 451,359 | $ | — | $ | 451,359 | $ | — | |||||||||||||||
Obligations of state and political subdivisions | 5,665,501 | 5,665,501 | 5,665,501 | ||||||||||||||||||||||
Corporate debt securities | 325,689 | 325,689 | 325,689 | ||||||||||||||||||||||
Total fixed maturity investments | 6,442,549 | 6,442,549 | |||||||||||||||||||||||
Equity securities (excluding the hedge fund) | 12,808,121 | 12,808,121 | 12,808,121 | ||||||||||||||||||||||
Hedge fund | 1,689,837 | 1,689,837 | 1,689,837 | ||||||||||||||||||||||
Total equity securities | 14,497,958 | 14,497,958 | |||||||||||||||||||||||
Total investments | $ | 20,940,507 | $ | 20,940,507 | $ | 12,808,121 | $ | 6,442,549 | $ | 1,689,837 | |||||||||||||||
Fair value measurement using: | |||||||||||||||||||||||||
Carrying | Total fair | Quoted prices | Significant other | Significant | |||||||||||||||||||||
amount | value | in active | observable inputs | unobservable inputs | |||||||||||||||||||||
markets for | (Level 2) | (Level 3) | |||||||||||||||||||||||
identical assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. government agency securities | $ | 446,517 | $ | 446,517 | $ | — | $ | 446,517 | $ | — | |||||||||||||||
Obligations of state and political subdivisions | 7,450,911 | 7,450,911 | 7,450,911 | ||||||||||||||||||||||
Corporate debt securities | 334,907 | 334,907 | 334,907 | ||||||||||||||||||||||
Total fixed maturity investments | 8,232,335 | 8,232,335 | |||||||||||||||||||||||
Equity securities (excluding the hedge fund) | 11,396,452 | 11,396,452 | 11,396,452 | ||||||||||||||||||||||
Hedge fund | 1,631,600 | 1,631,600 | 1,631,600 | ||||||||||||||||||||||
Total equity securities | 13,028,052 | 13,028,052 | |||||||||||||||||||||||
Total investments | $ | 21,260,387 | $ | 21,260,387 | $ | 11,396,452 | $ | 8,232,335 | $ | 1,631,600 | |||||||||||||||
There were no transfers between Levels 1 and 2 during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
The following is a reconciliation of the beginning and ending balance of investments measured at fair value on a recurring basis using significant unobservable (Level 3) inputs for the year ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance classified as Level 3, beginning of year | $ | 1,631,600 | $ | 1,485,151 | |||||||||||||||||||||
Total gains or losses included in earnings | — | — | |||||||||||||||||||||||
Change in fair value of hedge fund investment | 58,237 | 146,449 | |||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Sales | — | — | |||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | |||||||||||||||||||||||
Ending balance | $ | 1,689,837 | $ | 1,631,600 | |||||||||||||||||||||
There were no transfers into or from Level 3 investments during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
In accordance with U.S. GAAP, we are required to recognize certain assets at their fair value in our consolidated balance sheets. This includes our fixed maturity investments and equity securities. In accordance with the Fair Value Measurements and Disclosures Topic of FASB’s ASC 820 (“ASC 820”), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level (Level 1) and unobservable inputs being the lowest level (Level 3). A fair value measurement will fall within the level of the hierarchy based on the input that is significant to determining such measurement. The three levels are defined as follows: | |||||||||||||||||||||||||
• | Level 1: Observable inputs to the valuation methodology that are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||||||||||
• | Level 2: Observable inputs to the valuation methodology other than quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||||||||||||
• | Level 3: Inputs to the valuation methodology that are unobservable for the asset or liability. | ||||||||||||||||||||||||
At each measurement date, we estimate the fair value of the security using various valuation techniques. We utilize, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of our investments. When quoted market prices or observable market inputs are not available, we utilize valuation techniques that rely on unobservable inputs to estimate the fair value of investments. The following describes the valuation techniques we used to determine the fair value of investments held as of December 31, 2014 and what level within the fair value hierarchy each valuation technique resides: | |||||||||||||||||||||||||
• | U.S. government agency securities: Comprised primarily of bonds issued by the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, Federal Farm Credit Bank and the Federal National Mortgage Association. The fair values of U.S. government agency securities are priced using the spread above the risk-free U.S. Treasury yield curve. As the yields for the risk-free U.S. Treasury yield curve are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2 in the fair value hierarchy. AmerInst considers that there is a liquid market for the types of securities held. Broker quotes are not used for fair value pricing. | ||||||||||||||||||||||||
• | Obligations of state and political subdivisions: Comprised of fixed income obligations of state and local governmental municipalities. The fair values of these securities are based on quotes and current market spread relationships, and are classified as Level 2 in the fair value hierarchy. AmerInst considers that there is a liquid market for the types of securities held. Broker quotes are not used for fair value pricing. | ||||||||||||||||||||||||
• | Corporate debt securities: Comprised of bonds issued by corporations. The fair values of these securities are based on quotes and current market spread relationships, and are classified as Level 2 in the fair value hierarchy. AmerInst considers that there is a liquid market for the types of securities held. Broker quotes are not used for fair value pricing. | ||||||||||||||||||||||||
• | Equity securities, at fair value: Comprised primarily of investments in the common stock of publicly traded companies in the U.S. All of the Company’s equities are classified as Level 1 in the fair value hierarchy. The Company receives prices based on closing exchange prices from independent pricing sources to measure fair values for the equities. | ||||||||||||||||||||||||
• | Hedge fund: Comprised of a hedge fund whose objective is to seek attractive long-term returns with lower volatility by investing in a range of diversified investment strategies. The fund invests in a diversified pool of hedge fund managers, generally across six different strategies: long/short equities, long/short credit, macro, multi-strategy opportunistic, event-driven, and portfolio hedge. The fair value of the hedge fund is based on the net asset value of the fund as reported by the external fund manager. The use of net asset value as an estimate of the fair value for investments in certain entities that calculate net asset value is a permitted practical expedient. The fair value of our hedge fund is classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||
While we obtain pricing from independent pricing services, management is ultimately responsible for determining the fair value measurements for all securities. To ensure fair value measurement is applied consistently and in accordance with U.S. GAAP, we periodically update our understanding of the pricing methodologies used by the independent pricing services. We also challenge any prices we believe may not be representative of fair value under current market conditions. Our review process includes, but is not limited to: (i) initial and ongoing evaluation of the pricing methodologies and valuation models used by outside parties to calculate fair value; (ii) quantitative analysis; (iii) a review of multiple quotes obtained in the pricing process and the range of resulting fair values for each security, if available, and (iv) randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates provided by the independent pricing sources. | |||||||||||||||||||||||||
There have been no material changes to any of our valuation techniques from what was used as of December 31, 2013. Since the fair value of a financial instrument is an estimate of what a willing buyer would pay for our asset if we sold it, we will not know the ultimate value of our financial instruments until they are sold. We believe the valuation techniques utilized provide us with the best estimate of the price that would be received to sell our assets or transfer our liabilities in an orderly transaction between participants at the measurement date. | |||||||||||||||||||||||||
Though current market conditions appear to have improved, there is still the potential for further instability which could present additional risks and uncertainties for our business and make it more difficult to value certain of our securities if trading becomes less frequent. As such, valuations may include assumptions and estimates that may have significant period-to-period changes that could have a material adverse effect on our results of operations or financial condition. | |||||||||||||||||||||||||
Major categories of net interest and dividend income are summarized as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Interest earned: | |||||||||||||||||||||||||
Fixed maturity investments | $ | 228,966 | $ | 264,758 | |||||||||||||||||||||
Short term investments and cash and cash equivalents | 1,083 | 447 | |||||||||||||||||||||||
Dividends earned | 172,710 | 138,724 | |||||||||||||||||||||||
Investment expenses | (131,861 | ) | (127,845 | ) | |||||||||||||||||||||
Net investment income | $ | 270,898 | $ | 276,084 | |||||||||||||||||||||
Note_5_Other_Invested_Assets
Note 5 - Other Invested Assets | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | 5. OTHER INVESTED ASSETS |
At December 31, 2014 and December 31, 2013, the Company had investments in certificates of deposit (“CD”) in the amount of $1,470,000 comprising of fully insured time deposits placed with Federal Deposit Insurance Corporation (“FDIC”) insured commercial banks and savings associations. The FDIC, an independent agency of the United States government, protects depositors up to an amount of $250,000 per depositor, per insured institution. FDIC insurance is backed by the full faith and credit of the United States government. The stated interest rate of an FDIC insured CD varies greatly among commercial banks and savings associations, depending on the term of the CD and the institution’s need for funding. The liquidity of “marketable” CDs is marginal, even though they are assigned an FDIC number, a CUSIP number and are held in book-entry form through the Depository Trust Company. Depending on market liquidity and conditions, the bid price for an FDIC insured CD would reflect the supply of and the demand for deposits of the particular bank or savings association, as well as prevailing interest rates, the remaining term of the deposit, specific features of the CD, and compensation of the broker arranging the sale of the CD. These time deposits have maturities ranging from two to five years and are classified as other invested assets on the Company’s consolidated balance sheet. |
Note_6_Property_and_Equipment
Note 6 - Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT | ||||||||||||
Property and equipment, primarily associated with APSL, at December 31, 2014 and 2013 at cost, less accumulated depreciation and amortization, totaled $291,983 and $486,234, respectively as follows: | |||||||||||||
Cost | Accumulated | Total | |||||||||||
Depreciation | |||||||||||||
and | |||||||||||||
Amortization | |||||||||||||
31-Dec-14 | |||||||||||||
Furniture and fixtures | $ | 55,258 | $ | 20,383 | $ | 34,875 | |||||||
Office equipment | 18,123 | 12,833 | 5,290 | ||||||||||
Computer equipment | 15,114 | 7,451 | 7,663 | ||||||||||
Internal use software | 1,067,952 | 823,797 | 244,155 | ||||||||||
Total | $ | 1,156,447 | $ | 864,464 | $ | 291,983 | |||||||
Cost | Accumulated | Total | |||||||||||
Depreciation | |||||||||||||
and | |||||||||||||
Amortization | |||||||||||||
31-Dec-13 | |||||||||||||
Leasehold improvements | $ | 1,865 | $ | 1,865 | $ | — | |||||||
Furniture and fixtures | 29,184 | 14,351 | 14,833 | ||||||||||
Office equipment | 18,123 | 10,244 | 7,879 | ||||||||||
Computer equipment | 13,961 | 8,505 | 5,456 | ||||||||||
Computer software | 2,670 | 2,448 | 222 | ||||||||||
Internal use software | 1,067,952 | 610,108 | 457,844 | ||||||||||
Total | $ | 1,133,755 | $ | 647,521 | $ | 486,234 | |||||||
Note_7_Liability_for_Unpaid_Lo
Note 7 - Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance Loss Reserves [Abstract] | |||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 7. LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES | ||||||||
Details of the liability for unpaid losses and loss adjustment expenses at December 31, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Case basis estimates | $ | 2,069,370 | $ | 1,061,841 | |||||
IBNR reserves | 2,107,907 | 1,658,445 | |||||||
Totals | $ | 4,177,277 | $ | 2,720,286 | |||||
Liability for losses and loss adjustment expense activity is as follows: | |||||||||
2014 | 2013 | ||||||||
Liability—beginning of year | $ | 2,720,286 | $ | 1,408,190 | |||||
Incurred related to: | |||||||||
Current year | 1,414,152 | 818,327 | |||||||
Prior years | 915,976 | 1,127,530 | |||||||
Total incurred | 2,330,128 | 1,945,857 | |||||||
Paid related to: | |||||||||
Current year | (12,539 | ) | (5,274 | ) | |||||
Prior years | (860,598 | ) | (628,487 | ) | |||||
Total paid | (873,137 | ) | (633,761 | ) | |||||
Liability—end of year | $ | 4,177,277 | $ | 2,720,286 | |||||
As a result of the change in estimates of insured events in prior years, the provision for losses and loss adjustment expenses increased by $915,976 and $1,127,530 in 2014 and 2013, respectively. The 2014 increase resulted from unfavorable development on the Reinsurance Agreement book of business, specifically in the 2013 policy year. The 2013 increase resulted from (1) reserves established under the Reinsurance Agreement and (2) unfavorable development on the CAMICO treaty, specifically in the 2007/2008 and 2008/2009 policy years. |
Note_8_Shareholders_Equity
Note 8 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 8. SHAREHOLDERS’ EQUITY |
AmerInst currently does not have a public market for its common stock, but the Company has historically purchased shares from the Company’s shareholders upon their death, disability or retirement from the practice of public accounting. The repurchase price has been equal to the year-end net book value per share for the most recently completed fiscal year reduced by the amount of any dividends already paid on the repurchased shares during the calendar year of the repurchase and any dividends the shareholder would be entitled to receive on the repurchased shares that have not been paid. In addition, the Bermuda Monetary Authority (“BMA”) has authorized additional purchase on a negotiated case-by-case basis, and such purchases have typically been negotiated share repurchases when requested by Company shareholders. | |
On February 25, 2011, the Board of Directors amended and restated AmerInst’s Statement of Share Ownership Policy to better manage the Company’s cash flow from year to year. Under the new policy that was effective immediately, the Company limits the repurchases of Company stock to $500,000 per calendar year. In addition, repurchases are only authorized without Board approval from shareholders upon their death, disability or retirement from the practice of public accounting. Except as approved by the Board, negotiated purchases that do not satisfy these criteria will be discontinued for the foreseeable future. |
Note_9_Premiums_Written
Note 9 - Premiums Written | 12 Months Ended |
Dec. 31, 2014 | |
Premiums Written [Abstract] | |
Premiums Written [Text Block] | 9. PREMIUMS WRITTEN |
Premiums written were $4,657,738 and $2,425,358 during 2014 and 2013, respectively. The premiums written during the year ended December 31, 2014 and 2013 were attributable to premium cessions from C&F under the Reinsurance Agreement |
Note_10_Operating_and_Manageme
Note 10 - Operating and Management Expenses | 12 Months Ended |
Dec. 31, 2014 | |
Operating And Mangement Expense Disclosure [Abstract] | |
Operating And Mangement Expense Disclosure [Text Block] | 10. OPERATING AND MANAGEMENT EXPENSES |
With the exception of APSL, AmerInst and its other direct and indirect subsidiaries have no employees. Their operating activities, as well as certain management functions, are performed by contracted professional service providers. Cedar Management Limited provides AmerInst and AMIC Ltd. certain management, administrative and operations services under the direction of AmerInst’s Board of Directors pursuant to an agreement. The agreement may be terminated by either party upon not more than 90 days nor less than 60 days prior written notice. Mr. Stuart Grayston, our President, was formerly a director and officer of Cedar Management Limited, and Mr. Thomas R. McMahon, our Treasurer and Chief Financial Officer, is a shareholder, officer, director and employee of Cedar Management Limited. The Company paid Cedar Management Limited $330,000 and $320,000 in fees during 2014 and 2013, respectively. | |
Operating and management expenses include compensation paid to members of the Board of Directors and various committees of the Board totaling $525,681 in 2014 and $545,681 in 2013. Included as a part of this compensation are annual retainers paid to directors in the form of common shares of the Company in the amount of $70,000 and $105,000 for the years ended December 31, 2014 and 2013, respectively. Such amounts are included as part of purchase of shares by subsidiary, net, in the consolidated statements of changes in shareholders’ equity and cash flows. |
Note_11_Taxation
Note 11 - Taxation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | 11. TAXATION | ||||||||
Under current Bermuda law, the Company and its subsidiaries are not required to pay taxes in Bermuda on either income or capital gains. The Company has received an undertaking from the Bermuda government that, in the event of income or capital gains taxes being imposed, the Company will be exempted from such taxes until the year 2035. | |||||||||
However, APSL which is a Delaware corporation domiciled in the state of Illinois is subject to taxation in the United States. | |||||||||
The actual income tax rate differed from the amount computed by applying the effective rate of 0% under Bermuda law to earnings before income taxes as shown in the following reconciliation: | |||||||||
2014 | 2013 | ||||||||
Earnings before income tax | $ | 578,788 | $ | (363,010 | ) | ||||
Expected tax | — | — | |||||||
Foreign taxes at local expected rates | (439,921 | ) | (648,768 | ) | |||||
Other | 8,473 | 6,567 | |||||||
Change in valuation allowance | 431,448 | 642,201 | |||||||
Net tax expense (benefit) | $ | — | $ | — | |||||
Deferred income taxes, arising from APSL, reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2014 and 2013, management set up full valuation allowances against the deferred tax assets as disclosed below since the success of APSL was not certain and therefore, it was more likely than not that a tax benefit would not be realized. | |||||||||
2014 | 2013 | ||||||||
Capitalized start-up expenses | $ | 204,436 | $ | 224,879 | |||||
Operating loss carryforwards | 3,845,950 | 3,449,180 | |||||||
Depreciation and amortization | (75,494 | ) | (130,615 | ) | |||||
Deferred tax assets before valuation allowance | 3,974,892 | 3,543,444 | |||||||
Valuation allowance | (3,974,892 | ) | (3,543,444 | ) | |||||
Deferred tax assets net of valuation allowance | $ | — | $ | — | |||||
At December 31, 2014, the deferred tax assets (after valuation allowance) are based on loss carryforwards of $9,619,836, which expire in 16 to 20 years. |
Note_12_Dividend_Restrictions_
Note 12 - Dividend Restrictions and Statutory Requirements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||||||||||||||||
Restrictions on Dividends, Loans and Advances [Text Block] | 12. DIVIDEND RESTRICTIONS AND STATUTORY REQUIREMENTS | ||||||||||||||||
AMIC Ltd.’s ability to pay dividends to AmerInst is subject to the provisions of the Bermuda insurance and companies laws and the requirement to provide the ceding companies with collateral. Under the Companies Act, AMIC Ltd. would be prohibited from declaring or paying a dividend at December 31, 2014 if such payment would reduce the realizable value of its assets to an amount less than the aggregate value of its liabilities, issued share capital, and share premium accounts. As of December 31, 2014, approximately $33.9 million was available for the declaration of dividends to shareholders. However, due to the requirement to provide the ceding companies with collateral, approximately $26.6 million was available for the payment of dividends to the shareholders. In addition, AMIC Ltd. must be able to pay its liabilities as they fall due after the payment of a dividend. Our ability to pay dividends to common shareholders and to pay our operating expenses is dependent on cash dividends from our subsidiaries. The payment of such dividends by AMIC Ltd. to us is also limited under Bermuda law by the Insurance Act and Related Regulations which require that AMIC Ltd. maintain minimum levels of solvency and liquidity. | |||||||||||||||||
AmerInst’s ability to pay common shareholders’ dividends and its operating expenses is dependent on cash dividends from AMIC Ltd. and its other subsidiaries. The payment of such dividends by AMIC Ltd. to AmerInst is limited under Bermuda law by the Bermuda Insurance Act 1978 and Related Regulations, as amended, which require that AMIC Ltd. maintain minimum levels of solvency and liquidity. For the years ended December 31, 2014 and 2013 these requirements have been met as follows: | |||||||||||||||||
Statutory | Relevant Assets | ||||||||||||||||
Capital & Surplus | |||||||||||||||||
Minimum | Actual | Minimum | Actual | ||||||||||||||
31-Dec-14 | $ | 1,000,000 | $ | 34,876,815 | $ | 17,673,477 | $ | 17,673,477 | |||||||||
31-Dec-13 | $ | 1,000,000 | $ | 34,762,214 | $ | 16,663,931 | $ | 16,663,931 | |||||||||
AMIC Ltd. has received the BMA’s approval for the utilization of its investment in Investco as a relevant asset up to an aggregate amount sufficient to meet and maintain the minimum liquidity ratio. | |||||||||||||||||
Statutory loss for the years ended December 31, 2014 and 2013 was $804,896 and $1,382,860, respectively. |
Note_13_Unaudited_Condensed_Qu
Note 13 - Unaudited Condensed Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | 13. UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | ||||||||||||||||
2014 | FIRST | SECOND | THIRD | FOURTH | |||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
Net premiums earned | $ | 785,473 | $ | 863,570 | $ | 957,366 | $ | 1,063,084 | |||||||||
Commission income | 499,126 | 460,809 | 556,504 | 705,099 | |||||||||||||
Net investment income | 64,690 | 79,519 | 60,447 | 66,242 | |||||||||||||
Net realized gain | 796,735 | 225,158 | 223,723 | 1,463,571 | |||||||||||||
Total revenues | $ | 2,146,024 | $ | 1,629,056 | $ | 1,798,040 | $ | 3,297,996 | |||||||||
Net income (loss) | $ | 213,026 | $ | (464,091 | ) | $ | (239,130 | ) | $ | 1,068,983 | |||||||
Basic and diluted income (loss) per share | $ | 0.32 | $ | (0.70 | ) | $ | (0.36 | ) | $ | 1.61 | |||||||
2013 | FIRST | SECOND | THIRD | FOURTH | |||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
Net premiums earned | $ | 329,876 | $ | 460,457 | $ | 496,569 | $ | 776,375 | |||||||||
Commission income | 303,562 | 298,348 | 366,294 | 408,418 | |||||||||||||
Net investment income | 65,292 | 82,784 | 63,795 | 64,213 | |||||||||||||
Net realized gain | 760,702 | 1,067,045 | 329,200 | 700,376 | |||||||||||||
Total revenues | $ | 1,459,432 | $ | 1,908,634 | $ | 1,255,858 | $ | 1,949,382 | |||||||||
Net income (loss) | $ | 120,970 | $ | 130,213 | $ | (391,912 | ) | $ | (222,281 | ) | |||||||
Basic and diluted income (loss) per share | $ | 0.18 | $ | 0.19 | $ | (0.58 | ) | $ | (0.33 | ) | |||||||
Note_14_Segment_Information
Note 14 - Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Disclosure [Text Block] | 14. SEGMENT INFORMATION | ||||||||||||
AmerInst has two reportable segments: (1) reinsurance activity, which also includes investments and other activities, and (2) insurance activity, which offers professional liability solutions to professional service firms under the Agency Agreement with C&F. | |||||||||||||
As of and for the Year Ended December 31, 2014 | |||||||||||||
Reinsurance | Insurance | Total | |||||||||||
Segment | Segment | ||||||||||||
Revenues | $ | 6,648,589 | $ | 2,222,527 | $ | 8,871,116 | |||||||
Total losses and expenses | 4,969,999 | 3,322,329 | 8,292,328 | ||||||||||
Segment income (loss) | 1,678,590 | (1,099,802 | ) | 578,788 | |||||||||
Identifiable assets | — | 291,983 | 291,983 | ||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||
Reinsurance | Insurance | Total | |||||||||||
Segment | Segment | ||||||||||||
Revenues | $ | 5,196,315 | $ | 1,376,991 | $ | 6,573,306 | |||||||
Total losses and expenses | 3,937,404 | 2,998,912 | 6,936,316 | ||||||||||
Segment income (loss) | 1,258,911 | (1,621,921 | ) | (363,010 | ) | ||||||||
Identifiable assets | — | 486,234 | 486,234 | ||||||||||
Note_15_Stock_Compensation
Note 15 - Stock Compensation | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. STOCK COMPENSATION |
APSL has employment agreements with four key members of senior management, including one of our named executive officers, Kyle Nieman, the President of APSL, which grant them phantom shares of the Company. Under these agreements, these employees were initially granted a total of 75,018 phantom shares of the Company on the date of their employment, subject to certain vesting requirements. The phantom shares are eligible for phantom dividends paid at the same rate as regular dividends on the Company’s common shares. The phantom dividends may be used only to purchase additional phantom shares with the purchase price of such phantom shares being the net book value of the Company’s actual common shares as of the end of the previous quarter. During the year ended December 31, 2014, 1,248 phantom shares were granted arising from the dividends declared on the Company’s common shares. 81,787 phantom shares were outstanding at December 31, 2014. | |
For three of these employees, including Mr. Nieman, the phantom shares initially granted as well as any additional shares granted from dividends declared will vest on January 1, 2015. For the fourth employee, the phantom shares initially granted as well as any additional shares granted from dividends declared will vest on January 1, 2018. The liability payable to these employees under this phantom share plan is equal to the value of the phantom shares based on the net book value of the Company’s actual common shares at the end of the previous quarter less the value of phantom shares initially granted and is payable in cash upon the earlier of the employee attaining 65 years of age or within 60 days of such employee’s death or permanent disability, including if such death or permanent disability occurs before January 1, 2015 for three of these employees and January 1, 2018 for the fourth employee. | |
The liability relating to these phantom shares is recalculated quarterly based on the net book value of the Company’s common shares at the end of each quarter. As a result of the overall decrease in the book value of the Company’s common shares since the grant dates, no liability has been recorded by the Company relating to these phantom shares at December 31, 2014 or December 31, 2013. |
Note_16_Commitments_and_Contin
Note 16 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 16. COMMITMENTS AND CONTINGENCIES | ||||
APSL entered into a non-cancellable operating lease for office space in Lisle, Illinois. The lease is renewable at the option of the lessee under certain conditions. Future lease payments for the years ended December 31 are as follows: | |||||
2015 | $ | 100,471 | |||
2016 | 107,611 | ||||
2017 | 110,566 | ||||
2018 | 113,521 | ||||
2019 | 67,226 | ||||
$ | 499,395 | ||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Premiums Receivable, Basis of Accounting, Policy [Policy Text Block] | Premiums |
Premiums assumed are earned on a pro rata basis over the terms of the underlying policies to which they relate. Premiums assumed relating to the unexpired portion of policies in force at the balance sheet date are recorded as unearned premiums. | |
Deferred Charges, Policy [Policy Text Block] | Deferred policy acquisition costs |
Ceding commissions related to assumed reinsurance agreements are deferred and amortized pro rata over the terms of the underlying policies to which they relate. | |
Liability Reserve Estimate, Policy [Policy Text Block] | Liability for losses and loss adjustment expenses |
The liability for unpaid losses and loss adjustment expenses includes case basis estimates of reported losses plus supplemental amounts for projected losses incurred but not reported (IBNR), calculated based upon loss projections utilizing certain actuarial assumptions and AMIC Ltd.’s historical loss experience supplemented with industry data. The aggregate liability for unpaid losses and loss adjustment expenses at year end represents management’s best estimate, based upon the available data, of the amount necessary to cover the ultimate cost of loss, based upon an actuarial analysis prepared by independent actuaries. However, because of the volatility inherent in professional liability coverage, actual loss experience may not conform to the assumptions used in determining the estimated amounts for such liability at the balance sheet date. Accordingly, the ultimate liability could be significantly in excess of or less than the amount indicated in the financial statements. As adjustments to these estimates become necessary, such adjustments are reflected in current operations. AMIC Ltd. does not discount its loss reserves for purposes of these financial statements. | |
We review the independent actuaries’ reports for consistency and appropriateness of methodology and assumptions, including assumptions of industry benchmarks and discuss any concerns or changes with them. Our Underwriting Committee then considers the reasonableness of loss reserves recommended by our independent actuaries, in light of actual loss development during the year and approve the loss reserves to be recorded by AMIC Ltd. | |
The anticipated effect of inflation is implicitly considered when estimating liabilities for unpaid losses and loss adjustment expenses. Future average severities are projected based on historical trends adjusted for anticipated trends, are monitored based on actual developments and are modified if necessary. | |
Investment, Policy [Policy Text Block] | Investments |
AmerInst classifies all of its investments as available-for-sale. Accordingly, AmerInst reports these securities at their estimated fair values with unrealized holding gains and losses being reported as other comprehensive income. Realized gains and losses on sales of investments are accounted for by specifically identifying the cost and are reflected in the income statement in the period of sale. | |
Declines in the fair value of investments below cost are evaluated for other than temporary impairment losses. The evaluation for other than temporary impairment losses is a quantitative and qualitative process which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. The risks and uncertainties include the Company’s intent and ability to hold the security, changes in general economic conditions, the issuer’s financial condition or near term recovery prospects, and the effects of changes in interest rates. AmerInst’s accounting policy requires that a decline in the value of a security below its cost basis be assessed to determine if the decline is other than temporary. If so, the security is deemed to be impaired and a charge is recorded in net realized losses equal to the difference between the fair value and the cost basis of the security. The fair value of the impaired investment becomes its new cost basis. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents |
Cash equivalents include money market funds and highly liquid debt instruments purchased with an original maturity of three months or less. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment |
Property and equipment are depreciated using the straight-line method with estimated useful lives ranging from 3 to 7 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for normal maintenance and repairs are expensed as incurred. | |
Developmental costs for internal use software are capitalized in accordance with the provisions of the Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) topic 350 “Intangibles—Goodwill and Other”, generally, when the preliminary project stage is completed, management commits to funding and it is probable that the project will be completed and the software will be used to perform the functions intended. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives, generally for a period not to exceed 5 years. | |
Income Tax, Policy [Policy Text Block] | Income taxes |
Deferred tax assets and liabilities are recognized for the future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. Management evaluates the reliability of the deferred tax assets and assesses the need for additional valuation allowance annually. | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per common share |
Basic earnings per share is determined as net income available to common shareholders divided by the weighted average number of common shares outstanding for the period. There are no dilutive securities. | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements |
Accounting Standards Not Yet Adopted | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services—Insurance. ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on future financial statements and related disclosures. | |
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued Accounting Standards Update 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). Currently, there is no guidance under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective for the year ended December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. |
Note_4_Investments_Tables
Note 4 - Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Cost or | Gross | Gross | Estimated | |||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | 447,722 | $ | 3,637 | $ | — | $ | 451,359 | |||||||||||||||||
Obligations of states and political subdivisions | 5,601,616 | 85,978 | (22,093 | ) | 5,665,501 | ||||||||||||||||||||
Corporate debt securities | 314,308 | 11,381 | — | 325,689 | |||||||||||||||||||||
Total fixed maturity investments | 6,363,646 | 100,996 | (22,093 | ) | 6,442,549 | ||||||||||||||||||||
Equity securities | 8,310,880 | 4,559,699 | (62,458 | ) | 12,808,121 | ||||||||||||||||||||
Hedge fund | 1,000,000 | 689,837 | — | 1,689,837 | |||||||||||||||||||||
Total equity securities | 9,310,880 | 5,249,536 | (62,458 | ) | 14,497,958 | ||||||||||||||||||||
Total investments | $ | 15,674,526 | $ | 5,350,532 | $ | (84,551 | ) | $ | 20,940,507 | ||||||||||||||||
Cost or | Gross | Gross | Estimated | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | 447,212 | $ | — | $ | (695 | ) | $ | 446,517 | ||||||||||||||||
Obligations of states and political subdivisions | 7,418,912 | 116,530 | (84,531 | ) | 7,450,911 | ||||||||||||||||||||
Corporate debt securities | 320,737 | 14,170 | — | 334,907 | |||||||||||||||||||||
Total fixed maturity investments | 8,186,861 | 130,700 | (85,226 | ) | 8,232,335 | ||||||||||||||||||||
Equity securities | 5,648,142 | 5,748,310 | — | 11,396,452 | |||||||||||||||||||||
Hedge fund | 1,000,000 | 631,600 | — | 1,631,600 | |||||||||||||||||||||
Total equity securities | 6,648,142 | 6,379,910 | — | 13,028,052 | |||||||||||||||||||||
Total investments | $ | 14,835,003 | $ | 6,510,610 | $ | (85,226 | ) | $ | 21,260,387 | ||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | 12 months or greater | Less than 12 months | Total | ||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Obligations of states and political subdivisions | 2,373,133 | (22,093 | ) | — | — | 2,373,133 | (22,093 | ) | |||||||||||||||||
Corporate debt securities | — | — | — | — | — | — | |||||||||||||||||||
Total fixed maturity investments | 2,373,133 | (22,093 | ) | — | — | 2,373,133 | (22,093 | ) | |||||||||||||||||
Equity securities | — | — | 1,159,287 | (62,458 | ) | 1,159,287 | (62,458 | ) | |||||||||||||||||
Hedge fund | — | — | — | — | — | — | |||||||||||||||||||
Total equity securities | — | — | 1,159,287 | (62,458 | ) | 1,159,287 | (62,458 | ) | |||||||||||||||||
Total investments | $ | 2,373,133 | $ | (22,093 | ) | $ | 1,159,287 | $ | (62,458 | ) | $ | 3,532,420 | $ | (84,551 | ) | ||||||||||
12 months or greater | Less than 12 months | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity investments: | |||||||||||||||||||||||||
U.S. government agency securities | $ | — | $ | — | $ | 446,517 | $ | (695 | ) | $ | 446,517 | $ | (695 | ) | |||||||||||
Obligations of states and political subdivisions | 218,232 | (12,689 | ) | 2,504,591 | (71,842 | ) | 2,722,823 | (84,531 | ) | ||||||||||||||||
Corporate debt securities | — | — | — | — | — | — | |||||||||||||||||||
Total fixed maturity investments | 218,232 | (12,689 | ) | 2,951,108 | (72,537 | ) | 3,169,340 | (85,226 | ) | ||||||||||||||||
Equity securities | — | — | — | — | — | — | |||||||||||||||||||
Hedge fund | — | — | — | — | — | — | |||||||||||||||||||
Total equity securities | — | — | — | — | — | — | |||||||||||||||||||
Total investments | $ | 218,232 | $ | (12,689 | ) | $ | 2,951,108 | $ | (72,537 | ) | $ | 3,169,340 | $ | (85,226 | ) | ||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized | Estimated | |||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Due in one year or less | $ | 660,269 | $ | 665,201 | |||||||||||||||||||||
Due after one year through five years | 5,077,084 | 5,157,518 | |||||||||||||||||||||||
Due after five years through ten years | 447,167 | 443,984 | |||||||||||||||||||||||
Due after ten years | 179,126 | 175,846 | |||||||||||||||||||||||
Total | $ | 6,363,646 | $ | 6,442,549 | |||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Due in one year or less | $ | 1,759,042 | $ | 1,791,377 | |||||||||||||||||||||
Due after one year through five years | 4,365,014 | 4,407,628 | |||||||||||||||||||||||
Due after five years through ten years | 1,878,035 | 1,864,567 | |||||||||||||||||||||||
Due after ten years | 184,770 | 168,763 | |||||||||||||||||||||||
Total | $ | 8,186,861 | $ | 8,232,335 | |||||||||||||||||||||
Realized Gain (Loss) on Investments [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||
Total proceeds on sales of available-for-sale securities | $ | 4,939,598 | $ | 5,985,270 | |||||||||||||||||||||
Total proceeds from redemptions of fixed maturity investments | 125,226 | — | |||||||||||||||||||||||
Total proceeds from maturities of fixed maturity investments | 1,630,000 | 1,080,000 | |||||||||||||||||||||||
Gross gains on sales | 2,838,541 | 2,938,477 | |||||||||||||||||||||||
Gross losses on sales | (7,731 | ) | — | ||||||||||||||||||||||
Impairment losses | (121,623 | ) | (81,154 | ) | |||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair value measurement using: | ||||||||||||||||||||||||
Carrying | Total fair | Quoted prices | Significant other | Significant | |||||||||||||||||||||
amount | value | in active | observable inputs | unobservable inputs | |||||||||||||||||||||
markets for | (Level 2) | (Level 3) | |||||||||||||||||||||||
identical assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. government agency securities | $ | 451,359 | $ | 451,359 | $ | — | $ | 451,359 | $ | — | |||||||||||||||
Obligations of state and political subdivisions | 5,665,501 | 5,665,501 | 5,665,501 | ||||||||||||||||||||||
Corporate debt securities | 325,689 | 325,689 | 325,689 | ||||||||||||||||||||||
Total fixed maturity investments | 6,442,549 | 6,442,549 | |||||||||||||||||||||||
Equity securities (excluding the hedge fund) | 12,808,121 | 12,808,121 | 12,808,121 | ||||||||||||||||||||||
Hedge fund | 1,689,837 | 1,689,837 | 1,689,837 | ||||||||||||||||||||||
Total equity securities | 14,497,958 | 14,497,958 | |||||||||||||||||||||||
Total investments | $ | 20,940,507 | $ | 20,940,507 | $ | 12,808,121 | $ | 6,442,549 | $ | 1,689,837 | |||||||||||||||
Fair value measurement using: | |||||||||||||||||||||||||
Carrying | Total fair | Quoted prices | Significant other | Significant | |||||||||||||||||||||
amount | value | in active | observable inputs | unobservable inputs | |||||||||||||||||||||
markets for | (Level 2) | (Level 3) | |||||||||||||||||||||||
identical assets | |||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. government agency securities | $ | 446,517 | $ | 446,517 | $ | — | $ | 446,517 | $ | — | |||||||||||||||
Obligations of state and political subdivisions | 7,450,911 | 7,450,911 | 7,450,911 | ||||||||||||||||||||||
Corporate debt securities | 334,907 | 334,907 | 334,907 | ||||||||||||||||||||||
Total fixed maturity investments | 8,232,335 | 8,232,335 | |||||||||||||||||||||||
Equity securities (excluding the hedge fund) | 11,396,452 | 11,396,452 | 11,396,452 | ||||||||||||||||||||||
Hedge fund | 1,631,600 | 1,631,600 | 1,631,600 | ||||||||||||||||||||||
Total equity securities | 13,028,052 | 13,028,052 | |||||||||||||||||||||||
Total investments | $ | 21,260,387 | $ | 21,260,387 | $ | 11,396,452 | $ | 8,232,335 | $ | 1,631,600 | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||
Balance classified as Level 3, beginning of year | $ | 1,631,600 | $ | 1,485,151 | |||||||||||||||||||||
Total gains or losses included in earnings | — | — | |||||||||||||||||||||||
Change in fair value of hedge fund investment | 58,237 | 146,449 | |||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Sales | — | — | |||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | |||||||||||||||||||||||
Ending balance | $ | 1,689,837 | $ | 1,631,600 | |||||||||||||||||||||
Condensed Cash Flow Statement [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||
Interest earned: | |||||||||||||||||||||||||
Fixed maturity investments | $ | 228,966 | $ | 264,758 | |||||||||||||||||||||
Short term investments and cash and cash equivalents | 1,083 | 447 | |||||||||||||||||||||||
Dividends earned | 172,710 | 138,724 | |||||||||||||||||||||||
Investment expenses | (131,861 | ) | (127,845 | ) | |||||||||||||||||||||
Net investment income | $ | 270,898 | $ | 276,084 |
Note_6_Property_and_Equipment_
Note 6 - Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment [Table Text Block] | Cost | Accumulated | Total | ||||||||||
Depreciation | |||||||||||||
and | |||||||||||||
Amortization | |||||||||||||
31-Dec-14 | |||||||||||||
Furniture and fixtures | $ | 55,258 | $ | 20,383 | $ | 34,875 | |||||||
Office equipment | 18,123 | 12,833 | 5,290 | ||||||||||
Computer equipment | 15,114 | 7,451 | 7,663 | ||||||||||
Internal use software | 1,067,952 | 823,797 | 244,155 | ||||||||||
Total | $ | 1,156,447 | $ | 864,464 | $ | 291,983 | |||||||
Cost | Accumulated | Total | |||||||||||
Depreciation | |||||||||||||
and | |||||||||||||
Amortization | |||||||||||||
31-Dec-13 | |||||||||||||
Leasehold improvements | $ | 1,865 | $ | 1,865 | $ | — | |||||||
Furniture and fixtures | 29,184 | 14,351 | 14,833 | ||||||||||
Office equipment | 18,123 | 10,244 | 7,879 | ||||||||||
Computer equipment | 13,961 | 8,505 | 5,456 | ||||||||||
Computer software | 2,670 | 2,448 | 222 | ||||||||||
Internal use software | 1,067,952 | 610,108 | 457,844 | ||||||||||
Total | $ | 1,133,755 | $ | 647,521 | $ | 486,234 |
Note_7_Liability_for_Unpaid_Lo1
Note 7 - Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Insurance Loss Reserves [Abstract] | |||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | 2014 | 2013 | |||||||
Case basis estimates | $ | 2,069,370 | $ | 1,061,841 | |||||
IBNR reserves | 2,107,907 | 1,658,445 | |||||||
Totals | $ | 4,177,277 | $ | 2,720,286 | |||||
Liability for Losses and Loss Adjustment Expense Activity [Table Text Block] | 2014 | 2013 | |||||||
Liability—beginning of year | $ | 2,720,286 | $ | 1,408,190 | |||||
Incurred related to: | |||||||||
Current year | 1,414,152 | 818,327 | |||||||
Prior years | 915,976 | 1,127,530 | |||||||
Total incurred | 2,330,128 | 1,945,857 | |||||||
Paid related to: | |||||||||
Current year | (12,539 | ) | (5,274 | ) | |||||
Prior years | (860,598 | ) | (628,487 | ) | |||||
Total paid | (873,137 | ) | (633,761 | ) | |||||
Liability—end of year | $ | 4,177,277 | $ | 2,720,286 |
Note_11_Taxation_Tables
Note 11 - Taxation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2014 | 2013 | |||||||
Earnings before income tax | $ | 578,788 | $ | (363,010 | ) | ||||
Expected tax | — | — | |||||||
Foreign taxes at local expected rates | (439,921 | ) | (648,768 | ) | |||||
Other | 8,473 | 6,567 | |||||||
Change in valuation allowance | 431,448 | 642,201 | |||||||
Net tax expense (benefit) | $ | — | $ | — | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2014 | 2013 | |||||||
Capitalized start-up expenses | $ | 204,436 | $ | 224,879 | |||||
Operating loss carryforwards | 3,845,950 | 3,449,180 | |||||||
Depreciation and amortization | (75,494 | ) | (130,615 | ) | |||||
Deferred tax assets before valuation allowance | 3,974,892 | 3,543,444 | |||||||
Valuation allowance | (3,974,892 | ) | (3,543,444 | ) | |||||
Deferred tax assets net of valuation allowance | $ | — | $ | — |
Note_12_Dividend_Restrictions_1
Note 12 - Dividend Restrictions and Statutory Requirements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||||||||||||||||
Dividends Declared [Table Text Block] | Statutory | Relevant Assets | |||||||||||||||
Capital & Surplus | |||||||||||||||||
Minimum | Actual | Minimum | Actual | ||||||||||||||
31-Dec-14 | $ | 1,000,000 | $ | 34,876,815 | $ | 17,673,477 | $ | 17,673,477 | |||||||||
31-Dec-13 | $ | 1,000,000 | $ | 34,762,214 | $ | 16,663,931 | $ | 16,663,931 |
Note_13_Unaudited_Condensed_Qu1
Note 13 - Unaudited Condensed Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 2014 | FIRST | SECOND | THIRD | FOURTH | ||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
Net premiums earned | $ | 785,473 | $ | 863,570 | $ | 957,366 | $ | 1,063,084 | |||||||||
Commission income | 499,126 | 460,809 | 556,504 | 705,099 | |||||||||||||
Net investment income | 64,690 | 79,519 | 60,447 | 66,242 | |||||||||||||
Net realized gain | 796,735 | 225,158 | 223,723 | 1,463,571 | |||||||||||||
Total revenues | $ | 2,146,024 | $ | 1,629,056 | $ | 1,798,040 | $ | 3,297,996 | |||||||||
Net income (loss) | $ | 213,026 | $ | (464,091 | ) | $ | (239,130 | ) | $ | 1,068,983 | |||||||
Basic and diluted income (loss) per share | $ | 0.32 | $ | (0.70 | ) | $ | (0.36 | ) | $ | 1.61 | |||||||
2013 | FIRST | SECOND | THIRD | FOURTH | |||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
Net premiums earned | $ | 329,876 | $ | 460,457 | $ | 496,569 | $ | 776,375 | |||||||||
Commission income | 303,562 | 298,348 | 366,294 | 408,418 | |||||||||||||
Net investment income | 65,292 | 82,784 | 63,795 | 64,213 | |||||||||||||
Net realized gain | 760,702 | 1,067,045 | 329,200 | 700,376 | |||||||||||||
Total revenues | $ | 1,459,432 | $ | 1,908,634 | $ | 1,255,858 | $ | 1,949,382 | |||||||||
Net income (loss) | $ | 120,970 | $ | 130,213 | $ | (391,912 | ) | $ | (222,281 | ) | |||||||
Basic and diluted income (loss) per share | $ | 0.18 | $ | 0.19 | $ | (0.58 | ) | $ | (0.33 | ) |
Note_14_Segment_Information_Ta
Note 14 - Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | As of and for the Year Ended December 31, 2014 | ||||||||||||
Reinsurance | Insurance | Total | |||||||||||
Segment | Segment | ||||||||||||
Revenues | $ | 6,648,589 | $ | 2,222,527 | $ | 8,871,116 | |||||||
Total losses and expenses | 4,969,999 | 3,322,329 | 8,292,328 | ||||||||||
Segment income (loss) | 1,678,590 | (1,099,802 | ) | 578,788 | |||||||||
Identifiable assets | — | 291,983 | 291,983 | ||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||
Reinsurance | Insurance | Total | |||||||||||
Segment | Segment | ||||||||||||
Revenues | $ | 5,196,315 | $ | 1,376,991 | $ | 6,573,306 | |||||||
Total losses and expenses | 3,937,404 | 2,998,912 | 6,936,316 | ||||||||||
Segment income (loss) | 1,258,911 | (1,621,921 | ) | (363,010 | ) | ||||||||
Identifiable assets | — | 486,234 | 486,234 |
Note_16_Commitments_and_Contin1
Note 16 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2015 | $ | 100,471 | ||
2016 | 107,611 | ||||
2017 | 110,566 | ||||
2018 | 113,521 | ||||
2019 | 67,226 | ||||
$ | 499,395 |
Note_1_Description_of_Business1
Note 1 - Description of Business (Details) (CNA [Member], Sales Revenue, Net [Member], Customer Concentration Risk [Member]) | 12 Months Ended |
Dec. 31, 2008 | |
CNA [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |
Note 1 - Description of Business (Details) [Line Items] | |
Concentration Risk, Percentage | 95.00% |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Capitalized Internal Use Software Costs [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Minimum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Note_3_Pledged_Assets_Details
Note 3 - Pledged Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 3 - Pledged Assets (Details) [Line Items] | ||
Funds Held under Reinsurance Agreements, Liability | $7,251,000 | $6,998,324 |
Camico [Member] | ||
Note 3 - Pledged Assets (Details) [Line Items] | ||
Funds Held under Reinsurance Agreements, Liability | $805,745 | $823,905 |
Note_4_Investments_Details
Note 4 - Investments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 23 | 11 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (in Dollars) | $3,532,420 | $3,169,340 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 9 | 1 |
Number of Strategies | 6 |
Note_4_Investments_Details_Cos
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | $15,674,526 | $14,835,003 |
Gross Unrealized Gains | 5,350,532 | 6,510,610 |
Gross Unrealized Losses | -84,551 | -85,226 |
Estimated Fair Value | 20,940,507 | 21,260,387 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 447,722 | 447,212 |
Gross Unrealized Gains | 3,637 | |
Gross Unrealized Losses | -695 | |
Estimated Fair Value | 451,359 | 446,517 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 5,601,616 | 7,418,912 |
Gross Unrealized Gains | 85,978 | 116,530 |
Gross Unrealized Losses | -22,093 | -84,531 |
Estimated Fair Value | 5,665,501 | 7,450,911 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 314,308 | 320,737 |
Gross Unrealized Gains | 11,381 | 14,170 |
Estimated Fair Value | 325,689 | 334,907 |
Fixed Maturities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 6,363,646 | 8,186,861 |
Gross Unrealized Gains | 100,996 | 130,700 |
Gross Unrealized Losses | -22,093 | -85,226 |
Estimated Fair Value | 6,442,549 | 8,232,335 |
Equity Securities [Member] | Equity Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 8,310,880 | 5,648,142 |
Gross Unrealized Gains | 4,559,699 | 5,748,310 |
Gross Unrealized Losses | -62,458 | |
Estimated Fair Value | 12,808,121 | 11,396,452 |
Hedge Funds [Member] | Equity Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 1,000,000 | 1,000,000 |
Gross Unrealized Gains | 689,837 | 631,600 |
Estimated Fair Value | 1,689,837 | 1,631,600 |
Equity Securities [Member] | ||
Note 4 - Investments (Details) - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments [Line Items] | ||
Cost or Amortized Cost | 9,310,880 | 6,648,142 |
Gross Unrealized Gains | 5,249,536 | 6,379,910 |
Gross Unrealized Losses | -62,458 | |
Estimated Fair Value | $14,497,958 | $13,028,052 |
Note_4_Investments_Details_Fix
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, 12 Months or Greater | $2,373,133 | $218,232 |
Unrealized Losses, 12 Months or Greater | -22,093 | -12,689 |
Estimated Fair Value, Less than 12 Months | 1,159,287 | 2,951,108 |
Unrealized Losses, Less than 12 Months | -62,458 | -72,537 |
Estimated Fair Value, Total | 3,532,420 | 3,169,340 |
Unrealized Losses, Total | -84,551 | -85,226 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | ||
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 446,517 | |
Unrealized Losses, Less than 12 Months | -695 | |
Estimated Fair Value, Total | 446,517 | |
Unrealized Losses, Total | -695 | |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, 12 Months or Greater | 2,373,133 | 218,232 |
Unrealized Losses, 12 Months or Greater | -22,093 | -12,689 |
Estimated Fair Value, Less than 12 Months | 2,504,591 | |
Unrealized Losses, Less than 12 Months | -71,842 | |
Estimated Fair Value, Total | 2,373,133 | 2,722,823 |
Unrealized Losses, Total | -22,093 | -84,531 |
Fixed Maturities [Member] | ||
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, 12 Months or Greater | 2,373,133 | 218,232 |
Unrealized Losses, 12 Months or Greater | -22,093 | -12,689 |
Estimated Fair Value, Less than 12 Months | 2,951,108 | |
Unrealized Losses, Less than 12 Months | -72,537 | |
Estimated Fair Value, Total | 2,373,133 | 3,169,340 |
Unrealized Losses, Total | -22,093 | -85,226 |
Equity Securities [Member] | Equity Securities [Member] | ||
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,159,287 | |
Unrealized Losses, Less than 12 Months | -62,458 | |
Estimated Fair Value, Total | 1,159,287 | |
Unrealized Losses, Total | -62,458 | |
Equity Securities [Member] | ||
Note 4 - Investments (Details) - Fixed Maturity and Equity Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 1,159,287 | |
Unrealized Losses, Less than 12 Months | -62,458 | |
Estimated Fair Value, Total | 1,159,287 | |
Unrealized Losses, Total | ($62,458) |
Note_4_Investments_Details_Cos1
Note 4 - Investments (Details) - Cost or Amortized Cost and Estimated Fair Value of Fixed Maturity Investments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cost or Amortized Cost and Estimated Fair Value of Fixed Maturity Investments [Abstract] | ||
Due in one year or less, Amortized Cost | $660,269 | $1,759,042 |
Due in one year or less, Estimated Fair Value | 665,201 | 1,791,377 |
Due after one year through five years, Amortized Cost | 5,077,084 | 4,365,014 |
Due after one year through five years, Estimated Fair Value | 5,157,518 | 4,407,628 |
Due after five years through ten years, Amortized Cost | 447,167 | 1,878,035 |
Due after five years through ten years, Estimated Fair Value | 443,984 | 1,864,567 |
Due after ten years, Amortized Cost | 179,126 | 184,770 |
Due after ten years, Estimated Fair Value | 175,846 | 168,763 |
Total, Amortized Cost | 6,363,646 | 8,186,861 |
Total, Estimated Fair Value | $6,442,549 | $8,232,335 |
Note_4_Investments_Details_Sal
Note 4 - Investments (Details) - Sales and Maturities of Investments (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Sales and Maturities of Investments [Abstract] | ||
Total proceeds on sales of available-for-sale securities | $4,939,598 | $5,985,270 |
Total proceeds from redemptions of fixed maturity investments | 125,226 | |
Total proceeds from maturities of fixed maturity investments | 1,630,000 | 1,080,000 |
Gross gains on sales | 2,838,541 | 2,938,477 |
Gross losses on sales | -7,731 | |
Impairment losses | ($121,623) | ($81,154) |
Note_4_Investments_Details_Fai
Note 4 - Investments (Details) - Fair Value of Investments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | $20,940,507 | $21,260,387 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 451,359 | 446,517 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 451,359 | 446,517 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 451,359 | 446,517 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 5,665,501 | 7,450,911 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 5,665,501 | 7,450,911 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 5,665,501 | 7,450,911 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 325,689 | 334,907 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 325,689 | 334,907 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 325,689 | 334,907 |
Fixed Maturities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 6,442,549 | 8,232,335 |
Fixed Maturities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 6,442,549 | 8,232,335 |
Equity Securities [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 12,808,121 | 11,396,452 |
Equity Securities [Member] | Equity Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 12,808,121 | 11,396,452 |
Equity Securities [Member] | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 12,808,121 | 11,396,452 |
Hedge Funds [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 1,689,837 | 1,631,600 |
Hedge Funds [Member] | Equity Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 1,689,837 | 1,631,600 |
Hedge Funds [Member] | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 1,689,837 | 1,631,600 |
Equity Securities [Member] | Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 14,497,958 | 13,028,052 |
Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 14,497,958 | 13,028,052 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 12,808,121 | 11,396,452 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 6,442,549 | 8,232,335 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 1,689,837 | 1,631,600 |
Reported Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | 20,940,507 | 21,260,387 |
Estimate of Fair Value Measurement [Member] | ||
Note 4 - Investments (Details) - Fair Value of Investments [Line Items] | ||
Total Investments | $20,940,507 | $21,260,387 |
Note_4_Investments_Details_Rec
Note 4 - Investments (Details) - Reconciliation of Investments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Investments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs [Abstract] | ||
Balance classified as Level 3, beginning of year | $1,631,600 | $1,485,151 |
Change in fair value of hedge fund investment | 58,237 | 146,449 |
Ending balance | $1,689,837 | $1,631,600 |
Note_4_Investments_Details_Maj
Note 4 - Investments (Details) - Major Categories of Net Interest and Dividend Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest earned: | ||||||||||
Fixed maturity investments | $228,966 | $264,758 | ||||||||
Short term investments and cash and cash equivalents | 1,083 | 447 | ||||||||
Dividends earned | 172,710 | 138,724 | ||||||||
Investment expenses | -131,861 | -127,845 | ||||||||
Net investment income | $66,242 | $60,447 | $79,519 | $64,690 | $64,213 | $63,795 | $82,784 | $65,292 | $270,898 | $276,084 |
Note_5_Other_Invested_Assets_D
Note 5 - Other Invested Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 5 - Other Invested Assets (Details) [Line Items] | ||
Certificates of Deposit, at Carrying Value | 1,470,000 | $1,470,000 |
Cash, FDIC Insured Amount | 250,000 | $250,000 |
Minimum [Member] | ||
Note 5 - Other Invested Assets (Details) [Line Items] | ||
Maturity of Time Deposits | 2 years | |
Maximum [Member] | ||
Note 5 - Other Invested Assets (Details) [Line Items] | ||
Maturity of Time Deposits | 5 years |
Note_6_Property_and_Equipment_1
Note 6 - Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $291,983 | $486,234 |
Note_6_Property_and_Equipment_2
Note 6 - Property and Equipment (Details) - Property and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Cost | $1,156,447 | $1,133,755 |
Amortization | 864,464 | 647,521 |
Total | 291,983 | 486,234 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 55,258 | 29,184 |
Amortization | 20,383 | 14,351 |
Total | 34,875 | 14,833 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 18,123 | 18,123 |
Amortization | 12,833 | 10,244 |
Total | 5,290 | 7,879 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 15,114 | 13,961 |
Amortization | 7,451 | 8,505 |
Total | 7,663 | 5,456 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,067,952 | 2,670 |
Amortization | 823,797 | 2,448 |
Total | 244,155 | 222 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,865 | |
Amortization | 1,865 | |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,067,952 | |
Amortization | 610,108 | |
Total | $457,844 |
Note_7_Liability_for_Unpaid_Lo2
Note 7 - Liability for Unpaid Losses and Loss Adjustment Expenses (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance Loss Reserves [Abstract] | ||
Prior Year Claims and Claims Adjustment Expense | $915,976 | $1,127,530 |
Note_7_Liability_for_Unpaid_Lo3
Note 7 - Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - Liability for Unpaid Losses and Loss Adjustment Expenses (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||
Case basis estimates | $2,069,370 | $1,061,841 |
IBNR reserves | 2,107,907 | 1,658,445 |
Totals | $4,177,277 | $2,720,286 |
Note_7_Liability_for_Unpaid_Lo4
Note 7 - Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - Liability for Losses and Loss Adjustment Expense Activity (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Losses and Loss Adjustment Expense Activity [Abstract] | ||
Liabilitybbeginning of year | $2,720,286 | $1,408,190 |
Incurred related to: | ||
Current year | 1,414,152 | 818,327 |
Prior years | 915,976 | 1,127,530 |
Total incurred | 2,330,128 | 1,945,857 |
Paid related to: | ||
Current year | -12,539 | -5,274 |
Prior years | -860,598 | -628,487 |
Total paid | -873,137 | -633,761 |
Liabilitybend of year | $4,177,277 | $2,720,286 |
Note_8_Shareholders_Equity_Det
Note 8 - Shareholders' Equity (Details) (USD $) | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program, Authorized Amount | $500,000 |
Note_9_Premiums_Written_Detail
Note 9 - Premiums Written (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Written [Abstract] | ||
Assumed Premiums Written | $4,657,738 | $2,425,358 |
Note_10_Operating_and_Manageme1
Note 10 - Operating and Management Expenses (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Operating and Management Expenses (Details) [Line Items] | ||
Other General and Administrative Expense | $330,000 | $320,000 |
Compensation | 525,681 | 545,681 |
Director [Member] | ||
Note 10 - Operating and Management Expenses (Details) [Line Items] | ||
Compensation | $70,000 | $105,000 |
Note_11_Taxation_Details
Note 11 - Taxation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | 0.00% |
Operating Loss Carryforwards | $9,619,836 |
Note_11_Taxation_Details_Effec
Note 11 - Taxation (Details) - Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Earnings before income tax | $578,788 | ($363,010) |
Expected tax | 0 | 0 |
Foreign taxes at local expected rates | -439,921 | -648,768 |
Other | 8,473 | 6,567 |
Change in valuation allowance | 431,448 | 642,201 |
Net tax expense (benefit) | $0 | $0 |
Note_11_Taxation_Details_Defer
Note 11 - Taxation (Details) - Deferred Tax Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets [Abstract] | ||
Capitalized start-up expenses | $204,436 | $224,879 |
Operating loss carryforwards | 3,845,950 | 3,449,180 |
Depreciation and amortization | -75,494 | -130,615 |
Deferred tax assets before valuation allowance | 3,974,892 | 3,543,444 |
Valuation allowance | -3,974,892 | -3,543,444 |
Deferred tax assets net of valuation allowance | $0 | $0 |
Note_12_Dividend_Restrictions_2
Note 12 - Dividend Restrictions and Statutory Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $33,900,000 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments with Regulatory Approval | 26,600,000 | |
Statutory Loss | $804,896 | $1,382,860 |
Note_12_Dividend_Restrictions_3
Note 12 - Dividend Restrictions and Statutory Requirements (Details) - Summary of Levels of Solvency and Liquidity (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Levels of Solvency and Liquidity [Abstract] | ||
Statutory Capital & Surplus, Minimum | $1,000,000 | $1,000,000 |
Statutory Capital & Surplus, Actual | 34,876,815 | 34,762,214 |
Relevant Assets, Minimum | 17,673,477 | 16,663,931 |
Relevant Assets, Actual | $17,673,477 | $16,663,931 |
Note_13_Unaudited_Condensed_Qu2
Note 13 - Unaudited Condensed Quarterly Financial Data (Details) - Quarterly Financial Information (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information [Abstract] | ||||||||||
Net premiums earned | $1,063,084 | $957,366 | $863,570 | $785,473 | $776,375 | $496,569 | $460,457 | $329,876 | $3,669,493 | $2,063,277 |
Commission income | 705,099 | 556,504 | 460,809 | 499,126 | 408,418 | 366,294 | 298,348 | 303,562 | 2,221,538 | 1,376,622 |
Net investment income | 66,242 | 60,447 | 79,519 | 64,690 | 64,213 | 63,795 | 82,784 | 65,292 | 270,898 | 276,084 |
Net realized gain | 1,463,571 | 223,723 | 225,158 | 796,735 | 700,376 | 329,200 | 1,067,045 | 760,702 | 2,709,187 | 2,857,323 |
Total revenues | 3,297,996 | 1,798,040 | 1,629,056 | 2,146,024 | 1,949,382 | 1,255,858 | 1,908,634 | 1,459,432 | 8,871,116 | 6,573,306 |
Net income (loss) | $1,068,983 | ($239,130) | ($464,091) | $213,026 | ($222,281) | ($391,912) | $130,213 | $120,970 | $578,788 | ($363,010) |
Basic and diluted income (loss) per share (in Dollars per share) | $1.61 | ($0.36) | ($0.70) | $0.32 | ($0.33) | ($0.58) | $0.19 | $0.18 | $0.87 | ($0.54) |
Note_14_Segment_Information_De
Note 14 - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Note_14_Segment_Information_De1
Note 14 - Segment Information (Details) - Segment Reporting Information (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $3,297,996 | $1,798,040 | $1,629,056 | $2,146,024 | $1,949,382 | $1,255,858 | $1,908,634 | $1,459,432 | $8,871,116 | $6,573,306 |
Total losses and expenses | 8,292,328 | 6,936,316 | ||||||||
Segment income (loss) | 1,068,983 | -239,130 | -464,091 | 213,026 | -222,281 | -391,912 | 130,213 | 120,970 | 578,788 | -363,010 |
Identifiable assets | 291,983 | 486,234 | 291,983 | 486,234 | ||||||
Reinsurance Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 6,648,589 | 5,196,315 | ||||||||
Total losses and expenses | 4,969,999 | 3,937,404 | ||||||||
Segment income (loss) | 1,678,590 | 1,258,911 | ||||||||
Insurance Segment [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 2,222,527 | 1,376,991 | ||||||||
Total losses and expenses | 3,322,329 | 2,998,912 | ||||||||
Segment income (loss) | -1,099,802 | -1,621,921 | ||||||||
Identifiable assets | $291,983 | $486,234 | $291,983 | $486,234 |
Note_15_Stock_Compensation_Det
Note 15 - Stock Compensation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Note 15 - Stock Compensation (Details) [Line Items] | ||
Number of Employees in Plan | 4 | |
Phantom Share Units (PSUs) [Member] | ||
Note 15 - Stock Compensation (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,248 | 75,018 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 81,787 | |
Value Payable, Requisite Employee Age | 65 years | |
Value Payable, Period after Death or Permanent Disability | 60 days |
Note_16_Commitments_and_Contin2
Note 16 - Commitments and Contingencies (Details) - Future Lease Payments (USD $) | Dec. 31, 2014 |
Future Lease Payments [Abstract] | |
2015 | $100,471 |
2016 | 107,611 |
2017 | 110,566 |
2018 | 113,521 |
2019 | 67,226 |
$499,395 |