Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017 | |
Details | |
Registrant Name | MEMBERS Life Insurance Co |
Registrant CIK | 1,562,577 |
SEC Form | S1 |
Period End date | Dec. 31, 2017 |
Fiscal Year End | --12-31 |
Trading Symbol | mlic |
Filer Category | Non-accelerated Filer |
Current with reporting | Yes |
Voluntary filer | No |
Well-known Seasoned Issuer | No |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments | |||
Debt securities, available for sale, at fair value | $ 10,667 | $ 10,539 | |
Total investments | 10,667 | 10,539 | |
Cash and cash equivalents | 18,440 | 18,732 | |
Accrued investment income | 113 | 116 | |
Reinsurance recoverable from affiliate | 23,973 | 23,687 | |
Assets on deposit | 2,453,033 | 1,619,113 | |
Premiums receivable, net | 12 | 15 | |
Net deferred tax asset | 74 | 495 | |
Receivable from affiliate | 8,492 | 11,460 | |
Other assets and receivables | 137 | 415 | |
Federal income taxes recoverable from affiliate | 2,471 | 1,637 | |
Separate Account Assets | 69,005 | 20,221 | |
Total assets | 2,586,417 | 1,706,430 | |
Liabilities | |||
Claim and policy benefit reserves - life and health | 23,052 | 21,506 | |
Policyholder account balances | 2,456,634 | 1,622,448 | |
Payables to affiliates | 2,771 | 6,196 | |
Accounts payable and other liabilities | 16,257 | 12,774 | |
Separate account liabilities | 69,005 | 20,221 | |
Total liabilities | 2,567,719 | 1,683,145 | |
Commitments and contingencies | [1] | ||
Stockholder's equity | |||
Common stock | 5,000 | 5,000 | |
Additional paid in capital | 10,500 | 10,500 | |
Accumulated Other Comprehensive Income (Loss), net of tax | 11 | (323) | |
Retained earnings (deficit) | 3,187 | 8,108 | |
Total stockholder's equity | 18,698 | 23,285 | |
Total liabilities and stockholder's equity | $ 2,586,417 | $ 1,706,430 | |
[1] | See Note 11. |
Balance Sheets - Parenthetical
Balance Sheets - Parenthetical - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 10,650 | $ 11,037 |
Common Stock, Par or Stated Value Per Share | $ 5 | $ 5 |
Common Stock, Shares Authorized | 1,000 | 1,000 |
Common Stock, Shares, Issued | 1,000 | 1,000 |
Common Stock, Shares, Outstanding | 1,000 | 1,000 |
Tax expense (benefit) in Accumulated Other Comprehensive Income | $ 6 | $ (175) |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Life and health premiums, net | $ 0 | $ (21) | $ (1,175) |
Contract charges | 0 | 0 | 18 |
Net investment income | 517 | 376 | 366 |
Net realized investment gains | 0 | 0 | 117 |
Other income | 3,996 | 3,415 | 5,336 |
Total revenues | 4,513 | 3,770 | 4,662 |
Benefits and expenses | |||
Life and health insurance claims and benefits, net | 2 | (1) | (1,204) |
Interest credited to policyholder account balances | 0 | 0 | 4 |
Operating and other expenses | 1,709 | 1,049 | 1,633 |
Total benefits and expenses | 1,711 | 1,048 | 433 |
Income (loss) before income taxes | 2,802 | 2,722 | 4,229 |
Income tax expense (benefit) | 723 | 887 | 1,449 |
Net Income (Loss) | 2,079 | 1,835 | 2,780 |
Change in unrealized gains (losses), net of tax expense (benefit) | 334 | (98) | (437) |
Reclassification adjustment for (gains) included in net income, net of tax expense (benefit) | 0 | 0 | (10) |
Other Comprehensive Income (Loss) | 334 | (98) | (447) |
Total Comprehensive Income (Loss) | $ 2,413 | $ 1,737 | $ 2,333 |
Statements of Operations - Pare
Statements of Operations - Parenthetical - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Tax expense (benefit) portion of change in unrealized gains (losses) | $ 181 | $ (53) | $ (235) |
Tax Expense (Benefit), Portion of reclassification adjustment for (gains) | $ (5) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | AOCI Attributable to Parent | Retained Earnings | Total |
Balance at Dec. 31, 2014 | $ 5,000 | $ 10,500 | $ 222 | $ 3,493 | $ 19,215 |
Net Income (Loss) | 0 | 0 | 0 | 2,780 | 2,780 |
Other Comprehensive Income (Loss) | 0 | 0 | (447) | 0 | (447) |
Dividend to parent | 0 | ||||
Balance at Dec. 31, 2015 | 5,000 | 10,500 | (225) | 6,273 | 21,548 |
Net Income (Loss) | 0 | 0 | 0 | 1,835 | 1,835 |
Other Comprehensive Income (Loss) | 0 | 0 | (98) | 0 | (98) |
Dividend to parent | 0 | ||||
Balance at Dec. 31, 2016 | 5,000 | 10,500 | (323) | 8,108 | 23,285 |
Net Income (Loss) | 0 | 0 | 0 | 2,079 | 2,079 |
Other Comprehensive Income (Loss) | 0 | 0 | 334 | 0 | 334 |
Dividend to parent | 0 | 0 | 0 | (7,000) | (7,000) |
Balance at Dec. 31, 2017 | $ 5,000 | $ 10,500 | $ 11 | $ 3,187 | $ 18,698 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net Income (Loss) | $ 2,079 | $ 1,835 | $ 2,780 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Policyholder charges on investment type contracts | 0 | 0 | (18) |
Net realized investment gains | 0 | 0 | (117) |
Interest credited to policyholder account balances | 0 | 0 | 4 |
Deferred income taxes | 241 | 240 | (2) |
Amortization of bond premium and discount | 19 | 33 | 61 |
Amortization and write off of deferred charges | 20 | 23 | 26 |
Increase (Decrease) in Operating Assets | |||
Increase (Decrease) in Accrued investment income | 3 | 18 | (54) |
Increase (Decrease) in Reinsurance recoverable | (590) | 752 | 273 |
Increase (Decrease) in Premiums receivable | 3 | 11 | 2 |
Increase (Decrease) in Other assets and receivables | 3,228 | (6,423) | (1,828) |
Increase (Decrease) in Federal income taxes recoverable from affiliate | (835) | (1,121) | 1,281 |
Claim and policy benefit reserves - life and health | 1,546 | (720) | (831) |
Increase (Decrease) in other liabilities | 59 | 5,311 | 9,410 |
Net cash provided by operating activities | 5,773 | (41) | 10,987 |
Cash flows from investing activities: | |||
Purchases of Debt Securities | 0 | 0 | (8,760) |
Proceeds from sale or maturity of Debt Securities | 367 | 1,628 | 8,987 |
Net payments received on policy loans | 0 | 0 | 104 |
Net cash provided by (used in) investing activities | 367 | 1,628 | 331 |
Cash flows from financing activities: | |||
Dividend to parent | (7,000) | 0 | 0 |
Policyholder account deposits | 719,883 | 634,345 | 596,817 |
Policyholder account withdrawals | (50,481) | (31,206) | (12,250) |
Assets on deposit - deposits | (718,797) | (634,039) | (596,492) |
Assets on deposit - withdrawals | 49,964 | 30,951 | 12,098 |
Change in bank overdrafts | (1) | 1 | 0 |
Net cash provided by (used in) financing activities | (6,432) | 52 | 173 |
Change in cash and cash equivalents | (292) | 1,639 | 11,491 |
Cash and cash equivalents at beginning of period | 18,732 | 17,093 | 5,602 |
Cash and cash equivalents at end of period | 18,440 | 18,732 | 17,093 |
Supplemental disclosure of cash information: | |||
Net cash paid to affiliate for income taxes | $ 1,316 | $ 1,768 | $ 170 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Nature of Business | Note 1: Nature of Business MEMBERS Life Insurance Company (“MLIC” or the “Company”) is a life and health insurance stock company organized under the laws of Iowa and a wholly-owned subsidiary of CUNA Mutual Investment Corporation (“CMIC”). CMIC is organized under the laws of Wisconsin and is a wholly-owned subsidiary of CMFG Life Insurance Company (“CMFG Life”), an Iowa life insurance company. CMFG Life and its affiliated companies primarily sell insurance and other products to credit unions and their members. The Company’s ultimate parent is CUNA Mutual Holding Company (“CMHC”), a mutual insurance holding company organized under the laws of Iowa. MLIC began selling flexible premium deferred variable annuity contracts in 2016 and single premium deferred annuity contracts in 2013. Both products are sold to consumers, including credit union members, through the face-to-face distribution channel. Prior to 2013, MLIC did not actively market new business; it primarily serviced existing blocks of individual and group life policies. See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements. MLIC is authorized to sell life, health and annuity policies in all states in the U.S. and the District of Columbia, except New York. The following table identifies states with premiums greater than 5% of total direct premium and states with deposits on annuity contracts greater than 5% of total deposits: Deposits on Direct Life and Health Premium Annuity Contracts 2017 2016 2015 2017 2016 2015 Michigan 62% 63% 63% 9% 6% 8% Texas 24 23 23 5 8 7 California 5 6 5 6 7 8 Pennsylvania * * * 8 6 5 Iowa * * * 7 6 5 Indiana * * * 6 7 6 Wisconsin * * * 6 6 5 Washington * * * * 5 5 Florida * * * * * 5 *Less than 5%. No other state represents more than 5% of the Company’s premiums or deposits for any year in the three years ended December 31, 2017. As discussed in Note 6, CMFG Life provides significant services required in the conduct of the Company’s operations. Management believes allocations of expenses are reasonable, but the results of the Company’s operations may have materially differed from the results reflected in the accompanying financial statements if the Company did not have this relationship. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Summary of Significant Accounting Policies | Note 2: Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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 and in some cases the difference could be material. Investment valuations, embedded derivatives, deferred tax asset valuation reserves, and claim and policy benefit reserves are most affected by the use of estimates and assumptions. Segment Reporting The Company is currently managed as two reportable business segments, (1) life and health and (2) annuities. The Company’s life and health segment includes individual and group life policies that the Company no longer actively markets. The annuities segment includes its single premium deferred annuity contracts and flexible premium deferred variable annuity contracts which the Company began selling in 2013 and 2016, respectively. See Note 7, Reinsurance, for information on the Company’s reinsurance agreements, which impact the financial statement presentation of these segments. Investments Debt securities: Unrealized gains and losses on investments in debt securities, net of deferred federal income taxes, are included in accumulated other comprehensive income (loss) as a separate component of stockholder’s equity. Policy loans: Net investment income: Net realized gains and losses: Assets on Deposit Assets on deposit represent the amount of policyholder account balances related to reinsurance of the single premium deferred annuity and risk control accounts of the flexible premium deferred variable annuity contracts (investment-type contracts) that are ceded to CMFG Life. Assets on deposit are accounted for on a basis consistent with accounting for the underlying investment type contracts; therefore, the Company accounts for the reinsurance of these contracts using the deposit method of accounting consistent with the terms of the reinsurance agreement with CMFG Life. The related contract charges and interest credited to policyholder account balances in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded under the agreement. See Note 7 for a further discussion of the ceding agreement. Derivative Financial Instruments The Company issues single premium deferred annuity and flexible premium deferred variable annuity contracts that contain embedded derivatives. Derivatives embedded within non-derivative host contracts are separated from the host instrument when the embedded derivative is not clearly and closely related to the host instrument. Such embedded derivatives are recorded at fair value, and they are reported as part of assets on deposit and policyholder account balances in the balance sheets, with the change in the value being recorded in net realized investment gains. See Note 3, Investments-Embedded Derivatives for additional information. Changes in the fair value of the embedded derivative in assets on deposit offset changes in the fair value of the embedded derivative in policyholder account balances; both of these changes are included in net realized investment gains and are ceded as part of the ceding and reinsurance agreements. Accretion of the interest on assets on deposit offsets accretion of the interest on the host contract; both of these amounts are included in interest credited on policyholder account balances and are ceded as part of the ceding and reinsurance agreements. Cash and Cash Equivalents Cash and cash equivalents include unrestricted deposits in financial institutions with maturities of 90 days or less. The Company recognizes a liability in accounts payable and other liabilities for the amount of checks issued in excess of its current cash balance. The change in this overdraft amount is recognized as a financing activity in the Company’s statement of cash flows. Variable Interest Entities A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on a review of the VIE’s capital structure, contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related exposure to the variable interest holders. The primary beneficiary is the entity that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of the Company’s decision-making ability and the Company’s ability to influence activities that significantly affect the economic performance of the VIE. Unconsolidated VIEs: All of the Company’s investments in residential mortgage-backed securities are classified as unconsolidated VIEs. The maximum exposure to loss relating to these securities is equal to the carrying amount of the security. The values of these investments are disclosed in the Debt Securities section of Note 3. Recognition of Insurance Revenue and Related Benefits Term-life and whole-life insurance premiums are recognized as premium income when due. Policy benefits for these products are recognized in relation to the premiums so as to result in the recognition of profits over the expected lives of the policies and contracts. Policies not subject to significant mortality or longevity risk, such as the Company’s single premium deferred annuity and flexible premium deferred variable annuity contracts, are considered investment contracts. Amounts collected on these products, with the exception of the variable annuity component of the flexible premium deferred variable annuity, are recorded as increases in policyholder account balances. The variable annuity component of the flexible premium deferred variable annuity meets criteria for separate account reporting and therefore is recorded in separate account assets and liabilities. Revenues from investment contracts principally consist of net investment income and contract charges such as expense and surrender charges. Expenses for investment contracts consist of interest credited to contracts, benefits incurred in excess of related policyholder account balances and policy maintenance costs. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues and expenses are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement. Other Income / Operating and Other Expenses Other income in 2017, 2016 and 2015 includes legal settlements received on structured security investments that had previously been sold. Deferred Policy Acquisition Costs The costs of acquiring insurance business that are directly related to the successful acquisition of new and renewal business are deferred to the extent that such costs are expected to be recoverable from future profits. Such costs principally include commissions and sales costs, premium taxes, and certain policy issuance and underwriting costs. Costs deferred on term-life and whole-life insurance products, deferred policy acquisition costs (“DAC”), are amortized in proportion to the ratio of the annual premium to the total anticipated premiums generated. Due to the age of the existing block of life insurance policies, all DAC has been fully amortized as of December 31, 2017 and 2016 and there was no amortization expense in 2017, 2016 or 2015. Acquisition costs on the Company’s single premium deferred annuity and flexible premium deferred variable annuity contracts are reimbursed through a ceding commission by CMFG Life, which assumes all deferrable costs as part of its agreement to assume 100% of this business from the Company. See Note 7, Reinsurance for additional information on this agreement. Claim and Policy Benefits Reserves – Life and Health Life and health claim and policy benefit reserves consist principally of future policy benefit reserves and reserves for estimates of future payments on incurred claims reported but not yet paid and unreported incurred claims. Estimates for future payments on incurred claims are developed using actuarial principles and assumptions based on past experience adjusted for current trends. Any change in the probable ultimate liabilities is reflected in net income in the period in which the change is determined. When actual experience indicates that existing contract liabilities, together with the present value of future gross premiums will not be sufficient to recover the present value of future benefits or recover unamortized deferred acquisition costs, a premium deficiency will be recognized by either a reduction in unamortized acquisition costs or an increase in the liability for future benefits. There was no premium deficiency in 2017, 2016 or 2015. Policyholder Account Balances The Company recognizes a liability at the stated account value for policyholder deposits that are not subject to significant policyholder mortality or longevity risk and for universal life-type policies. The account value equals the sum of the original deposit and accumulated interest, less any withdrawals and expense charges. The average credited rate was 4.5% in 2017, 2016 and 2015. The future minimum guaranteed interest rate during the life of the contracts is 4.5%. The single premium deferred annuities and risk control accounts of the flexible premium deferred variable annuities are included in policyholder account balances. These products have two risk control accounts, referred to as the Secure and Growth Accounts; the Secure Account has a yearly credited interest rate floor of 0% and the yearly Growth Account floor is -10%. The Secure and Growth Accounts both have credited interest rate caps that vary based on the issuance date of the contract. Interest is credited at the end of each contract year during the selected index term based on the allocation between risk control accounts and the performance of an external index (reference index) during that contract year. For the single premium deferred annuity, the Company offers one reference index, which is the S&P 500 Index. For the flexible premium deferred variable annuity, the Company offers two reference indices, which are the S&P 500 Index and the MSCI EAFE Index. Policyholders are able to allocate funds in both the Secure and Growth Accounts for the available indices. At the end of the initial index term, only the Secure Account is available as an option to the policyholder. The average annualized credited rate for the single premium deferred annuity was 1.44%, 1.63% and 1.65% in 2017, 2016 and 2015, respectively. The average annualized credited rate for the risk control accounts of the flexible premium deferred variable annuity was 1.59% and 1.12% in 2017 and 2016, respectively. Accounts Payable and Other Liabilities The Company issues the single premium deferred annuity contracts on the 10 th th Reinsurance Reinsurance premiums, claims and benefits, commission expense reimbursements, and reserves related to reinsured business ceded are accounted for on a basis consistent with the accounting for the underlying direct policies that have been ceded and the terms of the reinsurance contracts. Premiums and insurance claims and benefits in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded to other companies under such reinsurance contracts. Ceded insurance reserves and ceded benefits paid are included in reinsurance recoverables along with certain ceded policyholder account balances, which include mortality risk. A prepaid reinsurance asset is also recorded for the portion of unearned premiums related to ceded policies. Separate Accounts Separate accounts represent customer accounts related to the variable annuity component of the flexible premium deferred variable annuity contracts issued by the Company, where investment income and investment gains and losses accrue directly to the contract holders who bear the investment risk. Contract holders are able to invest in investment funds managed for their benefit. All of the separate account assets are invested in unit investment trusts that are registered with the Securities and Exchange Commission (“SEC”) as of December 31, 2017. Separate account assets are legally segregated and may only be used to settle separate account liabilities. Separate account assets are carried at fair value, which is based on daily quoted net asset values at which the Company could transact on behalf of the contract holder. Separate account liabilities are equal to the separate account assets and represent contract holders’ claims to the related assets. Contract holder deposits to and withdrawals from the separate accounts are recorded directly to the separate account assets and liabilities and are not included in the Company’s statements of operations and comprehensive income (loss). Charges made by the Company to the contract holders’ balances include fees for maintenance, administration, cost of insurance, and surrenders of contracts prior to the contractually specified dates. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement. Income Taxes The Company recognizes taxes payable or refundable and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured by applying the enacted tax rates to the difference between the financial statement and tax basis of assets and liabilities. The Company records current tax benefits and deferred tax assets utilizing a benefits-for-loss approach. Under this approach, current benefits are realized and deferred tax assets are considered realizable by the Company when realized or realizable by the consolidated group of which the Company is a member even if the benefits would not be realized on a stand-alone basis. The Company records a valuation allowance for deferred tax assets if it determines it is more likely than not that the asset will not be realized by the consolidated group. Deferred income tax assets can be realized through future earnings, including, but not limited to, the generation of future income, reversal of existing temporary differences and available tax planning strategies. The Company is subject to tax-related audits. These audits may result in additional tax assets or liabilities. In establishing tax liabilities, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the financial statements within net deferred tax assets or liabilities or federal income taxes recoverable or payable. As a result of the comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted by the U.S. federal government on December 22, 2017, the Company remeasured its deferred tax assets and liabilities. The impact of the remeasurement and further discussion on the Tax Act are disclosed in the Tax Reform section of Note 5, Income Tax. Recently Adopted Accounting Standard Updates In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2017-08, Premium Amortization on Purchased Callable Debt Securities Accounting Standards Updates Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses of Financial Instruments The new standard replaces the existing incurred loss recognition model with an expected credit loss recognition model. The objective of the expected credit loss model is for the Company to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The Company must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected, except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Investments | Note 3: Investments Debt Securities The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2017 are as follows: Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value U.S. government and agencies $ 9,052 $ 5 $ (103) $ 8,954 Residential mortgage-backed securities 1,598 115 - 1,713 Total debt securities $ 10,650 $ 120 $ (103) $ 10,667 The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2016 are as follows: Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value U.S. government and agencies $ 9,063 $ 5 $ (638) $ 8,430 Residential mortgage-backed securities 1,974 135 - 2,109 Total debt securities $ 11,037 $ 140 $ (638) $ 10,539 No investments were non-income producing in 2017 or 2016. The amortized cost and estimated fair values of investments in debt securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Because of the potential for prepayment on residential mortgage-backed securities, such securities have not been displayed in the table below by contractual maturity. Amortized Estimated Cost Fair Value Due in one year or less $ 304 $ 304 Due after ten years 8,748 8,650 Residential mortgage-backed securities 1,598 1,713 Total debt securities $ 10,650 $ 10,667 Net Investment Income Sources of investment income for the years ended December 31 are summarized as follows: 2017 2016 2015 Gross investment income: Debt securities $ 321 $ 363 $ 389 Policy loans - - 5 Cash and cash equivalents 217 53 - Total gross investment income 538 416 394 Investment expenses (21) (40) (28) Net investment income $ 517 $ 376 $ 366 Net Realized Investment Gains There were no sales or transfers of debt securities in 2017 or 2016 that resulted in a realized investment gain or loss. The realized investment gain on the sale of debt securities was $117 in 2015. Proceeds from the sale of debt securities were $8,389 in 2015. Other-Than-Temporary Investment Impairments Investment securities are reviewed for OTTI on an ongoing basis. The Company creates a watchlist of securities based largely on the fair value of an investment security relative to its cost basis. When the fair value drops below the CompanyÂ’s cost, the Company monitors the security for OTTI. The determination of OTTI requires significant judgment on the part of the Company and depends on several factors, including, but not limited to: · · · · · · · A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company's anticipated holding period of the security. If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related risk. The credit portion of the OTTI is the difference between the present value of the expected future cash flows and amortized cost. Only the estimated credit loss amount is recognized in earnings, with the remainder of the loss amount recognized in other comprehensive income (loss). If the Company intends to sell, at the time this determination is made, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis. In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuerÂ’s business and industry sector, credit ratings, and the ability of the Company to hold the investment until the fair value has recovered at least its cost basis. For securitized debt securities, the Company considers factors including residential property changes in value that vary by property type and location and average cumulative collateral loss rates that vary by vintage year. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral. For certain securitized financial assets with contractual cash flows, the Company is required to periodically update its best estimate of cash flows over the life of the security. If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both timing and amount, an OTTI charge is recognized. The Company also considers its intent and ability to retain a temporarily impaired security until recovery. Estimating future cash flows involves judgment and includes both quantitative and qualitative factors. Such determinations incorporate various information and assessments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. Management has completed a review for other-than-temporarily impaired securities at December 31, 2017, 2016 and 2015 and recorded no OTTI. As a result of the subjective nature of these estimates, however, provisions may subsequently be determined to be necessary as new facts emerge and a greater understanding of economic trends develops. Consistent with the CompanyÂ’s practices, OTTI will be recorded as appropriate and as determined by the CompanyÂ’s regular monitoring procedures of additional facts. Net Unrealized Investment Gains (Losses) The components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) at December 31 were as follows: 2017 2016 2015 Debt securities $ 17 $ (498) $ (347) Deferred income taxes (6) 175 122 Net unrealized investment gains (losses) $ 11 $ (323) $ (225) At December 31, 2017, the Company owned ÂÂÂÂone debt security with a fair value of $8,207 in an unrealized loss position of $103 for more than twelve months. At December 31, 2016, the Company owned one debt security with a fair value of $8,115 in an unrealized loss position of $638 for less than twelve months. At December 31, 2015 the Company owned one debt security with a fair value of $8,210 in an unrealized loss position of $546 for less than twelve months. Embedded Derivatives The Company issues single premium deferred annuity and flexible premium deferred variable annuity contracts that contain embedded derivatives. Such embedded derivatives are separated from their host contracts and recorded at fair value. The fair value of the embedded derivatives, which are reported as part of assets on deposit and policyholder account balances in the balance sheets, were an asset of $471,192 and a liability of $471,192 as of December 31, 2017 and an asset of $246,405 and a liability of $246,405 as of December 31, 2016. The increase in fair value related to embedded derivatives from the date of deposit was $136,078, $49,225 and $3,591 for the years ended December 31, 2017, 2016 and 2015, respectively. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, this expense is ceded and does not impact the statement of operations and comprehensive income (loss). Assets Designated/Securities on Deposit Iowa law requires that assets equal to a life insurerÂ’s “legal reserve” must be designated for the Iowa Department of Commerce, Insurance Division. The legal reserve is equal to the net present value of all outstanding policies and contracts involving life contingencies. At December 31, 2017 and 2016, debt securities and cash with a carrying value of $8,694 and $8,876, respectively, were accordingly designated for Iowa. Other regulatory jurisdictions require cash and securities to be deposited for the benefit of policyholders. Pursuant to these requirements, securities with a fair value of $2,024 and $1,713 were on deposit with other regulatory jurisdictions as of December 31, 2017 and 2016, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Fair Value | Note 4: Fair Value The Company uses fair value measurements to record fair value of certain assets and liabilities and to estimate fair value of financial instruments not recorded at fair value but required to be disclosed at fair value. Certain financial instruments, such as insurance policy liabilities (other than investment-type contracts), are excluded from the fair value disclosure requirements. Valuation Hierarchy 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. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value of assets and liabilities into three broad levels. The Company has categorized its financial instruments, based on the degree of subjectivity inherent in the valuation technique, as follows: · · · For purposes of determining the fair value of the Company’s assets and liabilities, observable inputs are those inputs used by market participants in valuing financial instruments, which are developed based on market data obtained from independent sources. In the absence of sufficient observable inputs, unobservable inputs, reflecting the Company’s estimates of the assumptions market participants would use in valuing financial assets and liabilities, are developed based on the best information available in the circumstances. The Company uses prices and inputs that are current as of the measurement date. In some instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The hierarchy requires the use of market observable information when available for assessing fair value. The availability of observable inputs varies by investment. In situations where the fair value is based on inputs that are unobservable in the market or on inputs from inactive markets, the determination of fair value requires more judgment and is subject to the risk of variability. The degree of judgment exercised by the Company in determining fair value is typically greatest for investments categorized in Level 3. Transfers in and out of level categorizations are reported as having occurred at the end of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized gains and losses and all changes in unrealized gains and losses in the fourth quarter are not reflected in the Level 3 rollforward table. Valuation Process The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance on the overall reasonableness and consistent application of valuation methodologies and inputs and compliance with accounting standards through the execution of various processes and controls designed to provide assurance that the Company’s assets and liabilities are appropriately valued. The Company has policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies. These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes. These controls include appropriate review and analysis of prices against market activity or indicators of reasonableness, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. The valuation policies and guidelines are reviewed and updated as appropriate. For fair values received from third parties or internally estimated, the Company’s processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are appropriately recorded. The Company performs procedures to understand and assess the methodologies, process and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities. When using internal valuation models, these models are developed by the Company’s investment group using established methodologies. The models including key assumptions are reviewed with various investment sector professionals, including accounting, operations, compliance and risk management. In addition, Transfers Between Levels There were no transfers between levels during the years ended December 31, 2017 and 2016. Fair Value Measurement – Recurring Basis The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017. Assets, at Fair Value Level 1 Level 2 Level 3 Total Cash equivalents 1 $ 16,607 $ - $ - $ 16,607 Debt securities: U.S. government and agencies - 8,954 - 8,954 Residential mortgage-backed securities - 1,713 - 1,713 Total debt securities - 10,667 - 10,667 Derivatives embedded in assets on deposit - - 471,192 471,192 Separate account assets - 69,005 - 69,005 Total assets $ 16,607 $ 79,672 $ 471,192 $ 567,471 Liabilities, at Fair Value Level 1 Level 2 Level 3 Total Derivatives embedded in annuity contracts $ - $ - $ 471,192 $ 471,192 Total liabilities $ - $ - $ 471,192 $ 471,192 1 The following table summarizes the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2016. Assets, at Fair Value Level 1 Level 2 Level 3 Total Cash equivalents 1 $ 14,415 $ - $ - $ 14,415 Debt securities: U.S. government and agencies - 8,430 - 8,430 Residential mortgage-backed securities - 2,109 - 2,109 Total debt securities - 10,539 - 10,539 Derivatives embedded in assets on deposit - - 246,405 246,405 Separate account assets - 20,221 - 20,221 Total assets $ 14,415 $ 30,760 $ 246,405 $ 291,580 Liabilities, at Fair Value Level 1 Level 2 Level 3 Total Derivatives embedded in annuity contracts $ - $ - $ 246,405 $ 246,405 Total liabilities $ - $ - $ 246,405 $ 246,405 1 The Company had no assets or liabilities that required a fair value adjustment on a non-recurring basis as of December 31, 2017 or 2016. Determination of Fair Values The Company determines the estimated fair value of its investments using primarily the market approach and the income approach. The use of quoted prices and matrix pricing or similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach. A summary of valuation techniques for classes of financial assets and liabilities by fair value hierarchy level are as follows: Level 1 Measurements Cash equivalents: Level 2 Measurements For assets classified as Level 2 investments, the Company values the assets using third-party pricing sources, which generally rely on quoted prices for similar assets in markets that are active and observable market data. U.S. government and agencies: Residential mortgage-backed securities: Separate account assets: Level 3 Measurements Derivatives embedded in assets on deposit and annuity contracts: In estimating the fair value of the embedded derivative, the Company attributes a present value to the embedded derivative equal to the discounted sum of the excess cash flows of the index related fund value over the minimum fund value. The current year portion of the embedded derivative is adjusted for known market conditions. The discount factor at which the embedded derivative is valued contains an adjustment for the Company’s own credit and risk margins for unobservable non-capital market inputs. The Company’s own credit adjustment is determined taking into consideration publicly available information relating to the Company’s debt as well as its claims paying ability. These derivatives may be more costly than expected in volatile or declining equity markets. Changes in market conditions include, but are not limited to, changes in interest rates, equity indices, default rates and market volatility. Changes in fair value may be impacted by changes in the Company’s own credit standing. Lastly, changes in actuarial assumptions regarding policyholder behavior (such as full or partial withdrawals varying from expectations) and risk margins related to non-capital market inputs may result in significant fluctuations in the fair value of the derivatives. See Embedded Derivatives within Note 3, Investments for the impact to net income. The following table presents information about significant unobservable inputs used in Level 3 embedded derivative liabilities and related assets on deposit measured at fair value developed by internal models as of December 31, 2017 and 2016: Predominant Significant Range of Values - Unobservable Input Valuation Method Unobservable Input 2017 2016 Single premium deferred annuities Discounted cash flow Lapse rates 2% to 4% with an 2% to 4% with an excess lapse rate at excess lapse rate at the end of the index the end of the index period of 50% or 95%. period of 95%. Company's own 58 - 99 basis points 105 - 181 basis points credit and risk margin added on to added on to discount rate. discount rate. Flexible premium deferred variable annuities Discounted cash flow Lapse rates 2% to 10% with an 2% to 10% with an excess lapse rate at excess lapse rate at the end of the index the end of the index period of 5% to 20%. period of 80% to 95%. Company's own 58 - 99 basis points 105 - 181 basis points credit and risk margin added on to added on to discount rate. discount rate. Changes in Fair Value Measurement The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2017. Balance Balance January 1, Total Realized/Unrealized Gain (Loss) Included in: December 31, 2017 Purchases Maturities Earnings 1 2017 Derivatives embedded in assets on deposit $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Total assets $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Derivatives embedded in annuity contracts $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Total liabilities $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 1 The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2016. Balance Balance January 1, Total Realized/Unrealized Gain (Loss) Included in: December 31, 2016 Purchases Maturities Earnings 1 2016 Derivatives embedded in assets on deposit $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Total assets $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Derivatives embedded in annuity contracts $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Total liabilities $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 1 Fair Value Measurements for Financial Instruments Not Reported at Fair Value Accounting standards require disclosure of fair value information about certain on- and off balance sheet financial instruments which are not recorded at fair value on a recurring basis for which it is practicable to estimate that value. The following methods and assumptions were used by the Company in estimating the fair value disclosures for significant financial instruments: Level 1 Measurements Cash: Level 2 Measurements Assets on deposit and Investment-type contracts: Separate account liabilities: The carrying amounts and estimated fair values of the Company’s financial instruments which are not measured at fair value on a recurring basis at December 31 are as follows: 2017 2016 Carrying Estimated Carrying Estimated Amount Fair Value Level Amount Fair Value Level Financial instruments recorded as assets: Cash $ 1,833 $ 1,833 1 $ 4,317 $ 4,317 1 Assets on deposit 1,981,841 1,726,602 2 1,372,708 1,227,484 2 Financial instruments recorded as liabilities: Investment-type contracts 1,981,841 1,726,602 2 1,372,708 1,227,484 2 Separate account liabilities 69,005 69,005 2 20,221 20,221 2 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Income Tax | Note 5: Income Tax The Company is included in the consolidated federal income tax return filed by CMHC, the CompanyÂ’s ultimate parent. The Company has entered into a tax sharing agreement with CMHC and its subsidiaries. The agreement provides for the allocation of tax expense based on each subsidiaryÂ’s contribution to the consolidated federal income tax liability. Pursuant to the agreement, subsidiaries that have incurred losses are reimbursed regardless of the utilization of the loss in the current year. Federal income taxes recoverable from affiliate reported on the balance sheet are due from CMFG Life. Income Tax Expense Income tax expense for the years ended December 31 is as follows: 2017 2016 2015 Current tax expense (benefit) $ 481 $ 647 $ 1,451 Deferred tax expense 193 240 (2) Adjustment of deferred tax assets and liabilities for enacted rate change 49 - - Total income tax expense $ 723 $ 887 $ 1,449 Reconciliation to U.S. Tax Rate Income tax expense differs from the amount computed by applying the U.S. federal corporate income tax rate of 35% to income before income taxes due to the items listed in the following reconciliation: 2017 2016 2015 Amount Rate Amount Rate Amount Rate Tax expense computed at federal corporate tax rate $ 981 35.0 % $ 953 35.0 % $ 1,480 35.0 % Income tax expense (benefit) related to prior years (221) (7.8) (53) (2.0) (31) (0.7) Dividends-received deduction (83) (3.0) (11) (0.4) - - Adjustment of deferred tax assets and liabilities for enacted rate change 49 1.7 - - - - Other (3) (0.1) (2) (0.1) - - Total income tax expense $ 723 25.8 % $ 887 32.5 % $ 1,449 34.3 % Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts for income tax purposes. Significant components of the CompanyÂ’s deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows: 2017 2016 Deferred tax assets Tax reserves method change $ 15 $ 29 Unrealized investment losses - 175 Accrued expenses 280 291 Deferred policy acquisition costs 291 391 Other 1 4 Gross deferred tax assets 587 890 Deferred tax liabilities Investments 490 355 Deferred reinsurance expense 19 39 Unrealized investment gains 4 - Other - 1 Gross deferred tax liabilities 513 395 Net deferred tax asset $ 74 $ 495 Valuation Allowance The Company considered the need for a valuation allowance with respect to its gross deferred tax assets as of December 31, 2017 and 2016, and based on that evaluation, the Company has determined it is more likely than not all deferred tax assets as of December 31, 2017 and 2016 will be realized. Therefore, a valuation allowance was not established. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 Balance at January 1 $ - $ 1 Reductions for prior years' tax positions - (1) Balance at December 31 $ - $ - There were no unrecognized tax benefits as of December 31, 2017 and 2016 that, if recognized, would affect the effective tax rate in future periods. Management does not anticipate a material change to the CompanyÂ’s uncertain tax positions during 2018. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense in the statements of comprehensive income (loss). For the year ended December 31, 2017, the Company recognized a reduction in interest and penalties of approximately $5. The Company did not recognize any additions or reductions in interest and penalties for the years ended December 31, 2016 or 2015. The Company had accrued $2 and $7 for the payment of interest and penalties at December 31, 2017 and 2016, respectively. The Company is included in a consolidated U.S. federal income tax return filed by CUNA Mutual Holding Company. The Company also files income tax returns in various states. For the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for years ended before 2013. Amended refund claims are expected to be filed for tax years 2010 and 2012 in early 2018, which will be subject to examination as part of the Joint Committee on Taxation approval process. Other Tax Items As of December 31, 2017 and 2016, the Company did not have any capital loss, operating loss or credit carryforwards. Tax Reform The Tax Act makes changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate to 21% effective January 1, 2018; (2) limiting the deductible interest expense; and (3) limiting the deductibility of certain executive compensation. The SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has completed its initial evaluation of the impacts of the Tax Act and has recorded a net tax expense of $49 for the period ended December 31, 2017 due to the remeasurement of deferred tax assets and liabilities. Management believes it has made the appropriate adjustments for the impacts of the Tax Act at December 31, 2017. As a result of the subjective nature of these adjustments, however, additional adjustments may subsequently be determined to be necessary as clarification of the law and accounting guidance emerges. Additional adjustments will be recorded as appropriate and as determined by the CompanyÂ’s continued evaluation of the Tax Act. In light of the variables involved, such additional adjustments could be material. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Related Party Transactions | Note 6: Related Party Transactions In the normal course of business, there are various transactions between the Company and other related entities. In certain circumstances, expenses such as those related to sales and marketing, administrative, operations, other support and infrastructure costs are shared between the companies. Expenses incurred that are specifically identifiable with a particular company are borne by that company; other expenses are allocated among the companies on the basis of time and usage studies. Amounts due from transactions with affiliates are generally settled monthly. The Company reimbursed CMFG Life $20,808, $15,349 and $8,447 for these expenses in 2017, 2016 and 2015, respectively; which are included in operating and other expenses. Amounts receivable/payable from/to affiliates are shown in the following table: 2017 2016 Receivable from: CMFG Life $ 8,492 $ 11,460 Total $ 8,492 $ 11,460 Payable to: CUNA Brokerage Services, Inc. $ 2,749 $ 6,177 Other 22 19 Total $ 2,771 $ 6,196 Amounts receivable from CMFG Life at December 31, 2017 and 2016 are primarily for a policyholder’s purchase of an MLIC annuity when a CMFG Life policyholder has surrendered their policy for the purchase of a single premium deferred annuity or flexible premium deferred variable annuity and for the cession of death claims related to the Company’s single premium deferred annuity or flexible premium deferred variable annuity. The Company hires MEMBERS Capital Advisors, Inc. (“MCA”) for investment advisory services. MCA, which is 100% owned by CMIC, manages substantially all of the Company’s invested assets in accordance with policies, directives and guidelines established by the Company. The Company recorded MCA investment management fees totaling $21, $28 and $28 for the years ended December 31, 2017, 2016 and 2015, respectively, which are included as a reduction to net investment income. The Company utilizes CUNA Brokerage Services, Inc., which is 100% owned by CMIC, to distribute its single premium deferred annuity and flexible premium deferred variable annuity and recorded commission expense for this service of $29,114, $24,900 and $23,072 in 2017, 2016 and 2015, respectively, which is included in operating and other expenses. This expense is entirely offset by commission income the Company receives from CMFG Life as part of the 2013 and 2015 reinsurance agreements. The Company paid a $7,000 cash dividend to its parent in 2017. The Company paid no dividends in 2016 or 2015. See Note 7 regarding reinsurance and other agreements entered into by the Company and CMFG Life. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Reinsurance | Note 7: Reinsurance The Company entered into a reinsurance agreement with its affiliate, CMFG Life, on a coinsurance and modified coinsurance basis. The agreement was effective November 1, 2015 to cede 100% of its investment-type contracts for its flexible premium deferred variable annuity, which are accounted for using the deposit method of accounting. MLIC began selling its flexible premium deferred variable annuity in 2016. The Company had $165,924 and $43,734 of assets on deposit for these contracts as of December 31, 2017 and 2016, respectively. The Company had related liabilities of $165,924 and $43,734 as of December 31, 2017 and 2016, respectively, which are included in policyholder account balances in the balance sheets. The Company had separate account assets and liabilities for these contracts of $69,005 and $69,005 and $20,221 and $20,221, respectively, as of December 31, 2017 and 2016. The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $11,019, $6,302 and $1,027 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company entered into an agreement with its affiliate, CMFG Life, effective January 1, 2013 to cede 100% of its investment-type contracts for its single premium deferred annuity, which are accounted for using the deposit method of accounting. The Company had $2,287,109 and $1,575,379 of assets on deposit for these contracts as of December 31, 2017 and 2016, respectively. The Company had related liabilities of $2,287,109 and $1,575,379, respectively which are included in policyholder account balances in the balance sheets. The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $44,773, $37,961 and $34,236 for the years ended December 31, 2017, 2016 and 2015, respectively. On October 31, 2012, the Company ceded 95% of its insurance policies in force pursuant to a reinsurance agreement with CMFG Life and the Company was reimbursed for 95% of expenses incurred in the provision of policyholder and benefit payment services, and insurance taxes and charges on a go forward basis under this contract. On September 30, 2015, the Company amended its reinsurance agreement with CMFG Life and now cedes 100% of its insurance policies in force to CMFG Life and is reimbursed 100% for expenses incurred in the provision of policyholder and benefit payments services, and insurance taxes and charges going forward. The Company received commissions of $839, $894 and $1,567 for the years ended December 31, 2017, 2016 and 2015, respectively. As a result of the amendment to this agreement the Company ceded $1,297 of earned premiums and $1,244 of benefits as of September 30, 2015. MLIC did not have any other reinsurance agreements at December 31, 2017 or 2016 and the entire reinsurance recoverable balance of $23,973 and $23,687, respectively, was due from CMFG Life. The recoverable balances are not collateralized and the Company retains the risk of loss in the event CMFG Life is unable to meet its obligations assumed under the reinsurance agreements. MLIC believes the risk of non-collection is remote due to CMFG LifeÂ’s stable A ratings from A.M. Best Company and S&P Global Ratings and A2 rating from MoodyÂ’s Investors Service. The effects of reinsurance on contract charges, interest credited to policyholder accounts, premiums and on claims, benefits, and losses incurred for the years ended December 31 are as follows: 2017 2016 2015 Face amount of policies in force $ 86,587 $ 95,577 $ 110,827 Premiums: Direct - written $ 3,145 $ 2,168 $ 2,384 Direct - change in unearned 5 1 - Direct - earned 3,150 2,169 2,384 Ceded to affiliate - written (3,145) (2,172) (3,559) Ceded to affiliate - change in unearned (5) (18) - Ceded to affiliate - earned (3,150) (2,190) (3,559) Premiums - written, net 5 (4) (1,175) Premiums - change in unearned, net (5) (17) - Premiums, net $ - $ (21) $ (1,175) Contract charges: Direct $ 3,498 $ 1,303 $ 742 Ceded to affiliate (3,498) (1,303) (724) Contract charges, net $ - $ - $ 18 Claims, benefits and losses incurred: Direct $ 2,779 $ 1,761 $ 1,784 Ceded to affiliate (2,777) (1,762) (2,988) Claims, benefits and losses, net $ 2 $ (1) $ (1,204) Interest credited to policyholder account balances: Direct $ 30,469 $ 20,519 $ 9,833 Ceded to affiliate (30,469) (20,519) (9,829) Interest credited to policyholder account balances, net $ - $ - $ 4 |
Statutory Financial Data and Di
Statutory Financial Data and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Statutory Financial Data and Dividend Restrictions | Note 8: Statutory Financial Data and Dividend Restrictions The Company is a life and health insurer and is domiciled in Iowa. The Company files statutory-basis financial statements with insurance regulatory authorities. The Company did not use any permitted practices in 2017, 2016 or 2015. Certain statutory basis financial information for MLIC is presented in the table below as of and for the years ended December 31. Statutory Basis Statutory Basis Capital and Surplus Net Income (Loss) 2017 2016 2017 2016 2015 MLIC $ 18,601 $ 23,205 $ 1,914 $ 1,051 $ 1,112 The Company is subject to statutory regulations as to maintenance of equity and the payment of dividends. Generally, ordinary dividends from an insurance subsidiary to its parent company must meet notice requirements promulgated by the regulator of the subsidiary’s state of domicile (“Insurance Department”). Extraordinary dividends, as defined by state statutes, must be approved by the Insurance Department. Based on Iowa statutory regulations, the Company could pay dividends up to $1,860 during 2018, without prior approval of the Insurance Department. Risk-based capital (“RBC”) requirements promulgated by the National Association of Insurance Commissioners (NAIC) require U.S. insurers to maintain minimum capitalization levels that are determined based on formulas incorporating credit risk, insurance risk, interest rate risk, and general business risk. The adequacy of the Company’s actual capital is evaluated by a comparison to the RBC results, as determined by the formula. At December 31, 2017 and 2016, the Company’s adjusted capital exceeded the RBC minimum requirements as required by the NAIC. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Accumulated Other Comprehensive Income | Note 9: Accumulated Other Comprehensive Income (Loss) The components of accumulated comprehensive income (loss), net of tax, are as follows: Accumulated Unrealized Other Investment Comprehensive Gains (Loss) Income (Loss) Balance, January 1, 2015 $ 222 $ 222 Change in unrealized holding gains (losses), net of tax - ($240) (447) (447) Balance, December 31, 2015 (225) (225) Change in unrealized holding gains (losses), net of tax - ($53) (98) (98) Balance, December 31, 2016 (323) (323) Change in unrealized holding gains (losses), net of tax - $181 334 334 Balance, December 31, 2017 $ 11 $ 11 Reclassification Adjustments Accumulated other comprehensive income (losses) includes amounts related to unrealized investment gains (losses) which were reclassified to net income. Reclassifications from accumulated other comprehensive income (loss) for the years ended December 31 are included in the following table: 2017 2016 2015 Reclassifications from accumulated other comprehensive income (loss) Unrealized gains on available-for-sale securities included in net realized investment gains $ - $ - $ 15 Total reclassifications from accumulated other comprehensive income (loss) - - 15 Tax expense - - 5 Net reclassification from accumulated other comprehensive income (loss) $ - $ - $ 10 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Business Segment Information | Note 10: Business Segment Information The following table sets forth financial information regarding the CompanyÂ’s two reportable business segments for the year ended December 31, 2017. Life and Year ended or as of December 31, 2017 Health Annuities Total Revenues Life and health premiums, net $ - $ - $ - Contract charges - - - Net investment income 517 - 517 Net realized investment gains - - - Other income 3,996 - 3,996 Total revenues 4,513 - 4,513 Benefits and expenses Life and health insurance claims and benefits, net 2 - 2 Interest credited to policyholder account balances - - - Operating and other expenses 1,596 113 1,709 Total benefits and expenses 1,598 113 1,711 Income before income taxes 2,915 (113) 2,802 Income tax expense 763 (40) 723 Net income 2,152 (73) 2,079 Change in unrealized gains, net of tax expense 334 - 334 Other comprehensive income 334 - 334 Total comprehensive income $ 2,486 $ (73) $ 2,413 Reinsurance recoverable from affiliate $ 23,973 $ - $ 23,973 Assets on deposit - 2,453,033 2,453,033 Claim and policy benefit reserves - life and health 20,688 2,364 23,052 Policyholder account balances 3,601 2,453,033 2,456,634 The following table sets forth financial information regarding the CompanyÂ’s two reportable business segments for the year ended December 31, 2016. Life and Year ended or as of December 31, 2016 Health Annuities Total Revenues Life and health premiums, net $ (21) $ - $ (21) Contract charges - - - Net investment income 376 - 376 Net realized investment gains - - - Other income 3,415 - 3,415 Total revenues 3,770 - 3,770 Benefits and expenses Life and health insurance claims and benefits, net (1) - (1) Interest credited to policyholder account balances - - - Operating and other expenses 1,033 16 1,049 Total benefits and expenses 1,032 16 1,048 Income before income taxes 2,738 (16) 2,722 Income tax expense 892 (5) 887 Net income 1,846 (11) 1,835 Change in unrealized (losses), net of tax (benefit) (98) - (98) Other comprehensive (loss) (98) - (98) Total comprehensive income $ 1,748 $ (11) $ 1,737 Reinsurance recoverable from affiliate $ 23,687 $ - $ 23,687 Assets on deposit - 1,619,113 1,619,113 Claim and policy benefit reserves - life and health 20,344 1,162 21,506 Policyholder account balances 3,335 1,619,113 1,622,448 The following table sets forth financial information regarding the CompanyÂ’s two reportable business segments for the year ended December 31, 2015. Life and Year ended or as of December 31, 2015 Health Annuities Total Revenues Life and health premiums, net $ (1,175) $ - $ (1,175) Contract charges 18 - 18 Net investment income 366 - 366 Net realized investment gains 117 - 117 Other income 5,336 - 5,336 Total revenues 4,662 - 4,662 Benefits and expenses Life and health insurance claims and benefits, net (1,204) - (1,204) Interest credited to policyholder account balances 4 - 4 Operating and other expenses 1,633 - 1,633 Total benefits and expenses 433 - 433 Income before income taxes 4,229 - 4,229 Income tax expense 1,449 - 1,449 Net income 2,780 - 2,780 Change in unrealized (losses), net of tax (benefit) (447) - (447) Other comprehensive (loss) (447) - (447) Total comprehensive income $ 2,333 $ - $ 2,333 Reinsurance recoverable from affiliate $ 24,628 $ - $ 24,628 Assets on deposit - 947,595 947,595 Claim and policy benefit reserves - life and health 21,077 460 21,537 Policyholder account balances 3,473 947,595 951,068 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Insurance Guaranty Funds The Company is liable for guaranty fund assessments related to certain unaffiliated insurance companies that have become insolvent during 2017 and prior years. The Company includes a provision for all known assessments that will be levied as well as an estimate of amounts that it believes will be assessed in the future relating to past insolvencies. The Company has established a liability of $992 and $667 at December 31, 2017 and 2016, respectively, for guaranty fund assessments. The Company also estimates the amount recoverable from future premium tax payments related to these assessments and has not established an asset as of December 31, 2017 and 2016 since it does not believe any amount will be recoverable. Recoveries of assessments from premium taxes are generally made over a five-year period. Legal Matters Like other members of the insurance industry, the Company is occasionally a party to a number of lawsuits and other types of proceedings, some of which may involve claims for substantial or indeterminate amounts. These actions are based on a variety of issues and involve a range of the Company's practices. The Company has established procedures and policies to facilitate compliance with laws and regulations and to support financial reporting. In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. In the opinion of management, the ultimate liability, if any, resulting from all such pending actions will not materially affect the financial statements of the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Notes | |
Subsequent Events | Note 12: Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued. During this period, there were no subsequent events that required adjustment to or disclosure in the accompanying financial statements |
Summary of Significant Accoun20
Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Summary of Significant Accoun21
Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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 and in some cases the difference could be material. Investment valuations, embedded derivatives, deferred tax asset valuation reserves, and claim and policy benefit reserves are most affected by the use of estimates and assumptions. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies: Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Segment Reporting | Segment Reporting The Company is currently managed as two reportable business segments, (1) life and health and (2) annuities. The CompanyÂ’s life and health segment includes individual and group life policies that the Company no longer actively markets. The annuities segment includes its single premium deferred annuity contracts and flexible premium deferred variable annuity contracts which the Company began selling in 2013 and 2016, respectively. See Note 7, Reinsurance, for information on the CompanyÂ’s reinsurance agreements, which impact the financial statement presentation of these segments. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies: Investments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Investments | Investments Debt securities: Unrealized gains and losses on investments in debt securities, net of deferred federal income taxes, are included in accumulated other comprehensive income (loss) as a separate component of stockholderÂ’s equity. Policy loans: Net investment income: Net realized gains and losses: |
Summary of Significant Accoun24
Summary of Significant Accounting Policies: Assets On Deposit (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Assets On Deposit | Assets on Deposit Assets on deposit represent the amount of policyholder account balances related to reinsurance of the single premium deferred annuity and risk control accounts of the flexible premium deferred variable annuity contracts (investment-type contracts) that are ceded to CMFG Life. Assets on deposit are accounted for on a basis consistent with accounting for the underlying investment type contracts; therefore, the Company accounts for the reinsurance of these contracts using the deposit method of accounting consistent with the terms of the reinsurance agreement with CMFG Life. The related contract charges and interest credited to policyholder account balances in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded under the agreement. See Note 7 for a further discussion of the ceding agreement. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies: Derivative Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Derivative Financial Instruments | Derivative Financial Instruments The Company issues single premium deferred annuity and flexible premium deferred variable annuity contracts that contain embedded derivatives. Derivatives embedded within non-derivative host contracts are separated from the host instrument when the embedded derivative is not clearly and closely related to the host instrument. Such embedded derivatives are recorded at fair value, and they are reported as part of assets on deposit and policyholder account balances in the balance sheets, with the change in the value being recorded in net realized investment gains. See Note 3, Investments-Embedded Derivatives for additional information. Changes in the fair value of the embedded derivative in assets on deposit offset changes in the fair value of the embedded derivative in policyholder account balances; both of these changes are included in net realized investment gains and are ceded as part of the ceding and reinsurance agreements. Accretion of the interest on assets on deposit offsets accretion of the interest on the host contract; both of these amounts are included in interest credited on policyholder account balances and are ceded as part of the ceding and reinsurance agreements. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include unrestricted deposits in financial institutions with maturities of 90 days or less. The Company recognizes a liability in accounts payable and other liabilities for the amount of checks issued in excess of its current cash balance. The change in this overdraft amount is recognized as a financing activity in the CompanyÂ’s statement of cash flows. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies: Variable Interest Entities (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Variable Interest Entities | Variable Interest Entities A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on a review of the VIE’s capital structure, contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and the Company’s involvement with the entity. When assessing the need to consolidate a VIE, the Company evaluates the design of the VIE as well as the related exposure to the variable interest holders. The primary beneficiary is the entity that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of the Company’s decision-making ability and the Company’s ability to influence activities that significantly affect the economic performance of the VIE. Unconsolidated VIEs: All of the Company’s investments in residential mortgage-backed securities are classified as unconsolidated VIEs. The maximum exposure to loss relating to these securities is equal to the carrying amount of the security. The values of these investments are disclosed in the Debt Securities section of Note 3. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies: Recognition of Insurance Revenue and Related Benefits (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Recognition of Insurance Revenue and Related Benefits | Recognition of Insurance Revenue and Related Benefits Term-life and whole-life insurance premiums are recognized as premium income when due. Policy benefits for these products are recognized in relation to the premiums so as to result in the recognition of profits over the expected lives of the policies and contracts. Policies not subject to significant mortality or longevity risk, such as the CompanyÂ’s single premium deferred annuity and flexible premium deferred variable annuity contracts, are considered investment contracts. Amounts collected on these products, with the exception of the variable annuity component of the flexible premium deferred variable annuity, are recorded as increases in policyholder account balances. The variable annuity component of the flexible premium deferred variable annuity meets criteria for separate account reporting and therefore is recorded in separate account assets and liabilities. Revenues from investment contracts principally consist of net investment income and contract charges such as expense and surrender charges. Expenses for investment contracts consist of interest credited to contracts, benefits incurred in excess of related policyholder account balances and policy maintenance costs. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues and expenses are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies: Other Income / Operating and Other Expenses (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Other Income / Operating and Other Expenses | Other Income / Operating and Other Expenses Other income in 2017, 2016 and 2015 includes legal settlements received on structured security investments that had previously been sold. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies: Deferred Policy Acquisition Costs (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The costs of acquiring insurance business that are directly related to the successful acquisition of new and renewal business are deferred to the extent that such costs are expected to be recoverable from future profits. Such costs principally include commissions and sales costs, premium taxes, and certain policy issuance and underwriting costs. Costs deferred on term-life and whole-life insurance products, deferred policy acquisition costs (“DAC”), are amortized in proportion to the ratio of the annual premium to the total anticipated premiums generated. Due to the age of the existing block of life insurance policies, all DAC has been fully amortized as of December 31, 2017 and 2016 and there was no amortization expense in 2017, 2016 or 2015. Acquisition costs on the Company’s single premium deferred annuity and flexible premium deferred variable annuity contracts are reimbursed through a ceding commission by CMFG Life, which assumes all deferrable costs as part of its agreement to assume 100% of this business from the Company. See Note 7, Reinsurance for additional information on this agreement. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies: Claim and Policy Benefits Reserves - Life and Health (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Claim and Policy Benefits Reserves - Life and Health | Claim and Policy Benefits Reserves – Life and Health Life and health claim and policy benefit reserves consist principally of future policy benefit reserves and reserves for estimates of future payments on incurred claims reported but not yet paid and unreported incurred claims. Estimates for future payments on incurred claims are developed using actuarial principles and assumptions based on past experience adjusted for current trends. Any change in the probable ultimate liabilities is reflected in net income in the period in which the change is determined. When actual experience indicates that existing contract liabilities, together with the present value of future gross premiums will not be sufficient to recover the present value of future benefits or recover unamortized deferred acquisition costs, a premium deficiency will be recognized by either a reduction in unamortized acquisition costs or an increase in the liability for future benefits. There was no premium deficiency in 2017, 2016 or 2015. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies: Policyholder Account Balances (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Policyholder Account Balances | Policyholder Account Balances The Company recognizes a liability at the stated account value for policyholder deposits that are not subject to significant policyholder mortality or longevity risk and for universal life-type policies. The account value equals the sum of the original deposit and accumulated interest, less any withdrawals and expense charges. The average credited rate was 4.5% in 2017, 2016 and 2015. The future minimum guaranteed interest rate during the life of the contracts is 4.5%. The single premium deferred annuities and risk control accounts of the flexible premium deferred variable annuities are included in policyholder account balances. These products have two risk control accounts, referred to as the Secure and Growth Accounts; the Secure Account has a yearly credited interest rate floor of 0% and the yearly Growth Account floor is -10%. The Secure and Growth Accounts both have credited interest rate caps that vary based on the issuance date of the contract. Interest is credited at the end of each contract year during the selected index term based on the allocation between risk control accounts and the performance of an external index (reference index) during that contract year. For the single premium deferred annuity, the Company offers one reference index, which is the S&P 500 Index. For the flexible premium deferred variable annuity, the Company offers two reference indices, which are the S&P 500 Index and the MSCI EAFE Index. Policyholders are able to allocate funds in both the Secure and Growth Accounts for the available indices. At the end of the initial index term, only the Secure Account is available as an option to the policyholder. The average annualized credited rate for the single premium deferred annuity was 1.44%, 1.63% and 1.65% in 2017, 2016 and 2015, respectively. The average annualized credited rate for the risk control accounts of the flexible premium deferred variable annuity was 1.59% and 1.12% in 2017 and 2016, respectively. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies: Accounts Payable and Other Liabilities (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Accounts Payable and Other Liabilities | Accounts Payable and Other Liabilities The Company issues the single premium deferred annuity contracts on the 10 th th |
Summary of Significant Accoun34
Summary of Significant Accounting Policies: Reinsurance (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Reinsurance | Reinsurance Reinsurance premiums, claims and benefits, commission expense reimbursements, and reserves related to reinsured business ceded are accounted for on a basis consistent with the accounting for the underlying direct policies that have been ceded and the terms of the reinsurance contracts. Premiums and insurance claims and benefits in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded to other companies under such reinsurance contracts. Ceded insurance reserves and ceded benefits paid are included in reinsurance recoverables along with certain ceded policyholder account balances, which include mortality risk. A prepaid reinsurance asset is also recorded for the portion of unearned premiums related to ceded policies. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies: Separate Accounts (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Separate Accounts | Separate Accounts Separate accounts represent customer accounts related to the variable annuity component of the flexible premium deferred variable annuity contracts issued by the Company, where investment income and investment gains and losses accrue directly to the contract holders who bear the investment risk. Contract holders are able to invest in investment funds managed for their benefit. All of the separate account assets are invested in unit investment trusts that are registered with the Securities and Exchange Commission (“SEC”) as of December 31, 2017. Separate account assets are legally segregated and may only be used to settle separate account liabilities. Separate account assets are carried at fair value, which is based on daily quoted net asset values at which the Company could transact on behalf of the contract holder. Separate account liabilities are equal to the separate account assets and represent contract holders’ claims to the related assets. Contract holder deposits to and withdrawals from the separate accounts are recorded directly to the separate account assets and liabilities and are not included in the Company’s statements of operations and comprehensive income (loss). Charges made by the Company to the contract holders’ balances include fees for maintenance, administration, cost of insurance, and surrenders of contracts prior to the contractually specified dates. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Income Taxes | Income Taxes The Company recognizes taxes payable or refundable and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured by applying the enacted tax rates to the difference between the financial statement and tax basis of assets and liabilities. The Company records current tax benefits and deferred tax assets utilizing a benefits-for-loss approach. Under this approach, current benefits are realized and deferred tax assets are considered realizable by the Company when realized or realizable by the consolidated group of which the Company is a member even if the benefits would not be realized on a stand-alone basis. The Company records a valuation allowance for deferred tax assets if it determines it is more likely than not that the asset will not be realized by the consolidated group. Deferred income tax assets can be realized through future earnings, including, but not limited to, the generation of future income, reversal of existing temporary differences and available tax planning strategies. The Company is subject to tax-related audits. These audits may result in additional tax assets or liabilities. In establishing tax liabilities, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the financial statements within net deferred tax assets or liabilities or federal income taxes recoverable or payable. As a result of the comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted by the U.S. federal government on December 22, 2017, the Company remeasured its deferred tax assets and liabilities. The impact of the remeasurement and further discussion on the Tax Act are disclosed in the Tax Reform section of Note 5, Income Tax. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies: Recently Adopted Accounting Standard Updates (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Recently Adopted Accounting Standard Updates | Recently Adopted Accounting Standard Updates In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2017-08, Premium Amortization on Purchased Callable Debt Securities |
Summary of Significant Accoun38
Summary of Significant Accounting Policies: Accounting Standards Updates Pending Adoption (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Policies | |
Accounting Standards Updates Pending Adoption | Accounting Standards Updates Pending Adoption In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses of Financial Instruments The new standard replaces the existing incurred loss recognition model with an expected credit loss recognition model. The objective of the expected credit loss model is for the Company to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The Company must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected, except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Nature of Business_ Schedule of
Nature of Business: Schedule of states with premiums greater than 5% (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of states with premiums greater than 5% | Deposits on Direct Life and Health Premium Annuity Contracts 2017 2016 2015 2017 2016 2015 Michigan 62% 63% 63% 9% 6% 8% Texas 24 23 23 5 8 7 California 5 6 5 6 7 8 Pennsylvania * * * 8 6 5 Iowa * * * 7 6 5 Indiana * * * 6 7 6 Wisconsin * * * 6 6 5 Washington * * * * 5 5 Florida * * * * * 5 *Less than 5%. |
Investments_ Investments in Deb
Investments: Investments in Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Investments in Debt Securities | Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value U.S. government and agencies $ 9,052 $ 5 $ (103) $ 8,954 Residential mortgage-backed securities 1,598 115 - 1,713 Total debt securities $ 10,650 $ 120 $ (103) $ 10,667 The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2016 are as follows: Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value U.S. government and agencies $ 9,063 $ 5 $ (638) $ 8,430 Residential mortgage-backed securities 1,974 135 - 2,109 Total debt securities $ 11,037 $ 140 $ (638) $ 10,539 |
Investments_ Investments Classi
Investments: Investments Classified by Contractual Maturity Date (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Investments Classified by Contractual Maturity Date | Amortized Estimated Cost Fair Value Due in one year or less $ 304 $ 304 Due after ten years 8,748 8,650 Residential mortgage-backed securities 1,598 1,713 Total debt securities $ 10,650 $ 10,667 |
Investments_ Investment Income
Investments: Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Investment Income | 2017 2016 2015 Gross investment income: Debt securities $ 321 $ 363 $ 389 Policy loans - - 5 Cash and cash equivalents 217 53 - Total gross investment income 538 416 394 Investment expenses (21) (40) (28) Net investment income $ 517 $ 376 $ 366 |
Investments_ Unrealized Gain (L
Investments: Unrealized Gain (Loss) on Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | 2017 2016 2015 Debt securities $ 17 $ (498) $ (347) Deferred income taxes (6) 175 122 Net unrealized investment gains (losses) $ 11 $ (323) $ (225) |
Fair Value_ Fair Value Assets m
Fair Value: Fair Value Assets measured on a Recurring Basis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Fair Value Assets measured on a Recurring Basis | Assets, at Fair Value Level 1 Level 2 Level 3 Total Cash equivalents 1 $ 16,607 $ - $ - $ 16,607 Debt securities: U.S. government and agencies - 8,954 - 8,954 Residential mortgage-backed securities - 1,713 - 1,713 Total debt securities - 10,667 - 10,667 Derivatives embedded in assets on deposit - - 471,192 471,192 Separate account assets - 69,005 - 69,005 Total assets $ 16,607 $ 79,672 $ 471,192 $ 567,471 Liabilities, at Fair Value Level 1 Level 2 Level 3 Total Derivatives embedded in annuity contracts $ - $ - $ 471,192 $ 471,192 Total liabilities $ - $ - $ 471,192 $ 471,192 1 The following table summarizes the CompanyÂ’s assets that are measured at fair value on a recurring basis as of December 31, 2016. Assets, at Fair Value Level 1 Level 2 Level 3 Total Cash equivalents 1 $ 14,415 $ - $ - $ 14,415 Debt securities: U.S. government and agencies - 8,430 - 8,430 Residential mortgage-backed securities - 2,109 - 2,109 Total debt securities - 10,539 - 10,539 Derivatives embedded in assets on deposit - - 246,405 246,405 Separate account assets - 20,221 - 20,221 Total assets $ 14,415 $ 30,760 $ 246,405 $ 291,580 Liabilities, at Fair Value Level 1 Level 2 Level 3 Total Derivatives embedded in annuity contracts $ - $ - $ 246,405 $ 246,405 Total liabilities $ - $ - $ 246,405 $ 246,405 1 |
Fair Value_ Schedule of changes
Fair Value: Schedule of changes in assets and liabilities classified as Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of changes in assets and liabilities classified as Level 3 | Balance Balance January 1, Total Realized/Unrealized Gain (Loss) Included in: December 31, 2017 Purchases Maturities Earnings 1 2017 Derivatives embedded in assets on deposit $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Total assets $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Derivatives embedded in annuity contracts $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 Total liabilities $ 246,405 $ 93,748 $ (5,039) $ 136,078 $ 471,192 1 The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2016. Balance Balance January 1, Total Realized/Unrealized Gain (Loss) Included in: December 31, 2016 Purchases Maturities Earnings 1 2016 Derivatives embedded in assets on deposit $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Total assets $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Derivatives embedded in annuity contracts $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 Total liabilities $ 122,043 $ 78,090 $ (2,953) $ 49,225 $ 246,405 1 |
Fair Value_ Carrying amounts an
Fair Value: Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis | 2017 2016 Carrying Estimated Carrying Estimated Amount Fair Value Level Amount Fair Value Level Financial instruments recorded as assets: Cash $ 1,833 $ 1,833 1 $ 4,317 $ 4,317 1 Assets on deposit 1,981,841 1,726,602 2 1,372,708 1,227,484 2 Financial instruments recorded as liabilities: Investment-type contracts 1,981,841 1,726,602 2 1,372,708 1,227,484 2 Separate account liabilities 69,005 69,005 2 20,221 20,221 2 |
Income Tax_ Schedule of Compone
Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | 2017 2016 2015 Current tax expense (benefit) $ 481 $ 647 $ 1,451 Deferred tax expense 193 240 (2) Adjustment of deferred tax assets and liabilities for enacted rate change 49 - - Total income tax expense $ 723 $ 887 $ 1,449 |
Income Tax_ Schedule of Effecti
Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2017 2016 2015 Amount Rate Amount Rate Amount Rate Tax expense computed at federal corporate tax rate $ 981 35.0 % $ 953 35.0 % $ 1,480 35.0 % Income tax expense (benefit) related to prior years (221) (7.8) (53) (2.0) (31) (0.7) Dividends-received deduction (83) (3.0) (11) (0.4) - - Adjustment of deferred tax assets and liabilities for enacted rate change 49 1.7 - - - - Other (3) (0.1) (2) (0.1) - - Total income tax expense $ 723 25.8 % $ 887 32.5 % $ 1,449 34.3 % |
Income Tax_ Schedule of Deferre
Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2017 2016 Deferred tax assets Tax reserves method change $ 15 $ 29 Unrealized investment losses - 175 Accrued expenses 280 291 Deferred policy acquisition costs 291 391 Other 1 4 Gross deferred tax assets 587 890 Deferred tax liabilities Investments 490 355 Deferred reinsurance expense 19 39 Unrealized investment gains 4 - Other - 1 Gross deferred tax liabilities 513 395 Net deferred tax asset $ 74 $ 495 |
Income Tax_ Schedule of Unrecog
Income Tax: Schedule of Unrecognized Tax Benefits Roll Forward (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Unrecognized Tax Benefits Roll Forward | 2017 2016 Balance at January 1 $ - $ 1 Reductions for prior years' tax positions - (1) Balance at December 31 $ - $ - |
Related Party Transactions_ Sch
Related Party Transactions: Schedule of Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Related Party Transactions | 2017 2016 Receivable from: CMFG Life $ 8,492 $ 11,460 Total $ 8,492 $ 11,460 Payable to: CUNA Brokerage Services, Inc. $ 2,749 $ 6,177 Other 22 19 Total $ 2,771 $ 6,196 |
Reinsurance_ Effects of Reinsur
Reinsurance: Effects of Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Effects of Reinsurance | 2017 2016 2015 Face amount of policies in force $ 86,587 $ 95,577 $ 110,827 Premiums: Direct - written $ 3,145 $ 2,168 $ 2,384 Direct - change in unearned 5 1 - Direct - earned 3,150 2,169 2,384 Ceded to affiliate - written (3,145) (2,172) (3,559) Ceded to affiliate - change in unearned (5) (18) - Ceded to affiliate - earned (3,150) (2,190) (3,559) Premiums - written, net 5 (4) (1,175) Premiums - change in unearned, net (5) (17) - Premiums, net $ - $ (21) $ (1,175) Contract charges: Direct $ 3,498 $ 1,303 $ 742 Ceded to affiliate (3,498) (1,303) (724) Contract charges, net $ - $ - $ 18 Claims, benefits and losses incurred: Direct $ 2,779 $ 1,761 $ 1,784 Ceded to affiliate (2,777) (1,762) (2,988) Claims, benefits and losses, net $ 2 $ (1) $ (1,204) Interest credited to policyholder account balances: Direct $ 30,469 $ 20,519 $ 9,833 Ceded to affiliate (30,469) (20,519) (9,829) Interest credited to policyholder account balances, net $ - $ - $ 4 |
Statutory Financial Data and 53
Statutory Financial Data and Dividend Restrictions: Schedule of certain statutory basis financial information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of certain statutory basis financial information | Statutory Basis Statutory Basis Capital and Surplus Net Income (Loss) 2017 2016 2017 2016 2015 MLIC $ 18,601 $ 23,205 $ 1,914 $ 1,051 $ 1,112 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Unrealized Other Investment Comprehensive Gains (Loss) Income (Loss) Balance, January 1, 2015 $ 222 $ 222 Change in unrealized holding gains (losses), net of tax - ($240) (447) (447) Balance, December 31, 2015 (225) (225) Change in unrealized holding gains (losses), net of tax - ($53) (98) (98) Balance, December 31, 2016 (323) (323) Change in unrealized holding gains (losses), net of tax - $181 334 334 Balance, December 31, 2017 $ 11 $ 11 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Reclassification out of Accumulated Other Comprehensive Income | 2017 2016 2015 Reclassifications from accumulated other comprehensive income (loss) Unrealized gains on available-for-sale securities included in net realized investment gains $ - $ - $ 15 Total reclassifications from accumulated other comprehensive income (loss) - - 15 Tax expense - - 5 Net reclassification from accumulated other comprehensive income (loss) $ - $ - $ 10 |
Business Segment Information_ S
Business Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | Life and Year ended or as of December 31, 2017 Health Annuities Total Revenues Life and health premiums, net $ - $ - $ - Contract charges - - - Net investment income 517 - 517 Net realized investment gains - - - Other income 3,996 - 3,996 Total revenues 4,513 - 4,513 Benefits and expenses Life and health insurance claims and benefits, net 2 - 2 Interest credited to policyholder account balances - - - Operating and other expenses 1,596 113 1,709 Total benefits and expenses 1,598 113 1,711 Income before income taxes 2,915 (113) 2,802 Income tax expense 763 (40) 723 Net income 2,152 (73) 2,079 Change in unrealized gains, net of tax expense 334 - 334 Other comprehensive income 334 - 334 Total comprehensive income $ 2,486 $ (73) $ 2,413 Reinsurance recoverable from affiliate $ 23,973 $ - $ 23,973 Assets on deposit - 2,453,033 2,453,033 Claim and policy benefit reserves - life and health 20,688 2,364 23,052 Policyholder account balances 3,601 2,453,033 2,456,634 The following table sets forth financial information regarding the CompanyÂ’s two reportable business segments for the year ended December 31, 2016. Life and Year ended or as of December 31, 2016 Health Annuities Total Revenues Life and health premiums, net $ (21) $ - $ (21) Contract charges - - - Net investment income 376 - 376 Net realized investment gains - - - Other income 3,415 - 3,415 Total revenues 3,770 - 3,770 Benefits and expenses Life and health insurance claims and benefits, net (1) - (1) Interest credited to policyholder account balances - - - Operating and other expenses 1,033 16 1,049 Total benefits and expenses 1,032 16 1,048 Income before income taxes 2,738 (16) 2,722 Income tax expense 892 (5) 887 Net income 1,846 (11) 1,835 Change in unrealized (losses), net of tax (benefit) (98) - (98) Other comprehensive (loss) (98) - (98) Total comprehensive income $ 1,748 $ (11) $ 1,737 Reinsurance recoverable from affiliate $ 23,687 $ - $ 23,687 Assets on deposit - 1,619,113 1,619,113 Claim and policy benefit reserves - life and health 20,344 1,162 21,506 Policyholder account balances 3,335 1,619,113 1,622,448 The following table sets forth financial information regarding the CompanyÂ’s two reportable business segments for the year ended December 31, 2015. Life and Year ended or as of December 31, 2015 Health Annuities Total Revenues Life and health premiums, net $ (1,175) $ - $ (1,175) Contract charges 18 - 18 Net investment income 366 - 366 Net realized investment gains 117 - 117 Other income 5,336 - 5,336 Total revenues 4,662 - 4,662 Benefits and expenses Life and health insurance claims and benefits, net (1,204) - (1,204) Interest credited to policyholder account balances 4 - 4 Operating and other expenses 1,633 - 1,633 Total benefits and expenses 433 - 433 Income before income taxes 4,229 - 4,229 Income tax expense 1,449 - 1,449 Net income 2,780 - 2,780 Change in unrealized (losses), net of tax (benefit) (447) - (447) Other comprehensive (loss) (447) - (447) Total comprehensive income $ 2,333 $ - $ 2,333 Reinsurance recoverable from affiliate $ 24,628 $ - $ 24,628 Assets on deposit - 947,595 947,595 Claim and policy benefit reserves - life and health 21,077 460 21,537 Policyholder account balances 3,473 947,595 951,068 |
Nature of Business_ Schedule 57
Nature of Business: Schedule of states with premiums greater than 5% (Details) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
MICHIGAN | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | 62.00% | 63.00% | 63.00% | |||
Deposits on Annuity Contracts greater than 5% of total deposits | 9.00% | 6.00% | 8.00% | |||
TEXAS | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | 24.00% | 23.00% | 23.00% | |||
Deposits on Annuity Contracts greater than 5% of total deposits | 5.00% | 8.00% | 7.00% | |||
CALIFORNIA | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | 5.00% | 6.00% | 5.00% | |||
Deposits on Annuity Contracts greater than 5% of total deposits | 6.00% | 7.00% | 8.00% | |||
PENNSYLVANIA | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 8.00% | 6.00% | 5.00% | |||
IOWA | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 7.00% | 6.00% | 5.00% | |||
INDIANA | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 6.00% | 7.00% | 6.00% | |||
WISCONSIN | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 6.00% | 6.00% | 5.00% | |||
WASHINGTON | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 0.00% | [1] | 5.00% | 5.00% | ||
FLORIDA | ||||||
Direct Life and Health Premiums greater than 5% of total direct premiums | [1] | 0.00% | 0.00% | 0.00% | ||
Deposits on Annuity Contracts greater than 5% of total deposits | 0.00% | [1] | 0.00% | [1] | 5.00% | |
[1] | Less than 5% |
Summary of Significant Accoun58
Summary of Significant Accounting Policies: Policyholder Account Balances (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Average credited interest rate | 4.50% | 4.50% | 4.50% |
Future minimum guaranteed interest rate | 4.50% |
Investments_ Investments in D59
Investments: Investments in Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 10,650 | $ 11,037 |
Debt securities, available for sale, at fair value | 10,667 | 10,539 |
US Government Agencies Debt Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 9,052 | 9,063 |
Available-for-sale Debt Securities Gross Unrealized Gain | 5 | 5 |
Available-for-sale Debt Securities, Gross Unrealized Loss | (103) | (638) |
Debt securities, available for sale, at fair value | 8,954 | 8,430 |
Residential Mortgage Backed Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,598 | 1,974 |
Available-for-sale Debt Securities Gross Unrealized Gain | 115 | 135 |
Available-for-sale Debt Securities, Gross Unrealized Loss | 0 | 0 |
Debt securities, available for sale, at fair value | 1,713 | 2,109 |
Debt Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 10,650 | 11,037 |
Available-for-sale Debt Securities Gross Unrealized Gain | 120 | 140 |
Available-for-sale Debt Securities, Gross Unrealized Loss | (103) | (638) |
Debt securities, available for sale, at fair value | $ 10,667 | $ 10,539 |
Investments_ Investments Clas60
Investments: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities, Amortized Cost Basis | $ 10,650 | $ 11,037 |
Debt securities, available for sale, at fair value | 10,667 | 10,539 |
Residential Mortgage Backed Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,598 | 1,974 |
Debt securities, available for sale, at fair value | 1,713 | 2,109 |
Debt Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 10,650 | 11,037 |
Debt securities, available for sale, at fair value | 10,667 | $ 10,539 |
Due in one year or less | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 304 | |
Debt securities, available for sale, at fair value | 304 | |
Due after ten years | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 8,748 | |
Debt securities, available for sale, at fair value | $ 8,650 |
Investments_ Investment Incom61
Investments: Investment Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gross Investment Income, Operating | $ 538 | $ 416 | $ 394 |
Investment Income, Investment Expense | (21) | (40) | (28) |
Net Investment Income | 517 | 376 | 366 |
Debt Securities | |||
Gross Investment Income, Operating | 321 | 363 | 389 |
Policy loans | |||
Gross Investment Income, Operating | 0 | 0 | 5 |
Cash and Cash Equivalents | |||
Gross Investment Income, Operating | $ 217 | $ 53 | $ 0 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||||||
Proceeds from sale of debt securities | $ 0 | $ 0 | $ 8,389 | |||
Net realized investment gains | 0 | 0 | 117 | |||
Fair value of debt security in unrealized loss position | $ 8,207 | $ 8,115 | $ 8,210 | 8,207 | 8,115 | 8,210 |
Gross unrealized losses | 103 | 638 | $ 546 | |||
Embedded Derivatives, Assets | 471,192 | 246,405 | 471,192 | 246,405 | ||
Embedded Derivatives, Liabilities | 471,192 | 246,405 | 471,192 | 246,405 | ||
Embedded Derivatives, Increase (Decrease) in fair value | 136,078 | 49,225 | $ 3,591 | |||
Securities on deposit with regulatory jurisdictions | $ 2,024 | $ 1,713 | $ 2,024 | $ 1,713 |
Investments_ Unrealized Gain 63
Investments: Unrealized Gain (Loss) on Investments (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Net unrealized investment gains included in AOCI | $ 11 | $ (323) | $ (225) |
Debt Securities | |||
Net unrealized investment gains included in AOCI | 17 | (498) | (347) |
DeferredIncomeTaxesMember | |||
Net unrealized investment gains included in AOCI | $ (6) | $ 175 | $ 122 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Fair Value, Equity, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Equity, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 |
Fair Value_ Fair Value Assets65
Fair Value: Fair Value Assets measured on a Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | ||
Assets, Fair Value Disclosure | $ 567,471 | $ 291,580 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 471,192 | 246,405 | ||
Cash and Cash Equivalents | ||||
Assets, Fair Value Disclosure | 16,607 | [1] | 14,415 | [2] |
US Government Agencies Debt Securities | ||||
Assets, Fair Value Disclosure | 8,954 | 8,430 | ||
Residential Mortgage Backed Securities | ||||
Assets, Fair Value Disclosure | 1,713 | 2,109 | ||
Debt Securities | ||||
Assets, Fair Value Disclosure | 10,667 | 10,539 | ||
Derivative | ||||
Assets, Fair Value Disclosure | 471,192 | 246,405 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 471,192 | 246,405 | ||
Separate Account Assets | ||||
Assets, Fair Value Disclosure | 69,005 | 20,221 | ||
Fair Value, Inputs, Level 1 | ||||
Assets, Fair Value Disclosure | 16,607 | 14,415 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||||
Assets, Fair Value Disclosure | 16,607 | [1] | 14,415 | [2] |
Fair Value, Inputs, Level 1 | US Government Agencies Debt Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Residential Mortgage Backed Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Debt Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Derivative | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Separate Account Assets | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 | ||||
Assets, Fair Value Disclosure | 79,672 | 30,760 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | ||||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [2] |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | ||||
Assets, Fair Value Disclosure | 8,954 | 8,430 | ||
Fair Value, Inputs, Level 2 | Residential Mortgage Backed Securities | ||||
Assets, Fair Value Disclosure | 1,713 | 2,109 | ||
Fair Value, Inputs, Level 2 | Debt Securities | ||||
Assets, Fair Value Disclosure | 10,667 | 10,539 | ||
Fair Value, Inputs, Level 2 | Derivative | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Separate Account Assets | ||||
Assets, Fair Value Disclosure | 69,005 | 20,221 | ||
Fair Value, Inputs, Level 3 | ||||
Assets, Fair Value Disclosure | 471,192 | 246,405 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 471,192 | 246,405 | ||
Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | ||||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [2] |
Fair Value, Inputs, Level 3 | US Government Agencies Debt Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Residential Mortgage Backed Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt Securities | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Derivative | ||||
Assets, Fair Value Disclosure | 471,192 | 246,405 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 471,192 | 246,405 | ||
Fair Value, Inputs, Level 3 | Separate Account Assets | ||||
Assets, Fair Value Disclosure | $ 0 | $ 0 | ||
[1] | Excludes cash of $1,833 that is not subject to fair value accounting. | |||
[2] | Excludes cash of $4,317 that is not subject to fair value accounting. |
Fair Value_ Schedule of chang66
Fair Value: Schedule of changes in assets and liabilities classified as Level 3 (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Assets classified as level 3 | $ 246,405 | $ 122,043 | |
Assets classified as level 3, Purchases | 93,748 | 78,090 | |
Assets classified as level 3, Maturities | (5,039) | (2,953) | |
Assets classified as level 3, Earnings | [1] | 136,078 | 49,225 |
Assets classified as level 3 | 471,192 | 246,405 | |
Liabilities classified as level 3 | 246,405 | 122,043 | |
Liabilities classified as level 3, Purchases | 93,748 | 78,090 | |
Liabilities classified as level 3, Earnings | [1] | 136,078 | 49,225 |
Liabilities classified as level 3 | 471,192 | 246,405 | |
Derivative | |||
Assets classified as level 3 | 246,405 | 122,043 | |
Assets classified as level 3, Purchases | 93,748 | 78,090 | |
Assets classified as level 3, Maturities | (5,039) | (2,953) | |
Assets classified as level 3, Earnings | [1] | 136,078 | 49,225 |
Assets classified as level 3 | 471,192 | 246,405 | |
Liabilities classified as level 3 | 246,405 | 122,043 | |
Liabilities classified as level 3, Purchases | 93,748 | 78,090 | |
Liabilities classified as level 3, Earnings | [1] | 136,078 | 49,225 |
Liabilities classified as level 3 | $ 471,192 | $ 246,405 | |
[1] | Included in net income is realized gains and losses associated with embedded derivatives. |
Fair Value_ Carrying amounts 67
Fair Value: Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Separate Account Assets | ||
Financial instruments recorded as liabilities, Carrying Amount | $ 69,005 | $ 20,221 |
Financial instruments recorded as liabilities, Estimated Fair Value | $ 69,005 | $ 20,221 |
Financial instruments recorded as liabilities, Level | 2 | 2 |
Investment Contracts | ||
Financial instruments recorded as liabilities, Carrying Amount | $ 1,981,841 | $ 1,372,708 |
Financial instruments recorded as liabilities, Estimated Fair Value | $ 1,726,602 | $ 1,227,484 |
Financial instruments recorded as liabilities, Level | 2 | 2 |
Cash | ||
Financial instruments recorded as assets, Carrying Amount | $ 1,833 | $ 4,317 |
Financial instruments recorded as assets, Estimated Fair Value | $ 1,833 | $ 4,317 |
Financial instruments recorded as assets, Level | 1 | 1 |
Assets on deposit | ||
Financial instruments recorded as assets, Carrying Amount | $ 1,981,841 | $ 1,372,708 |
Financial instruments recorded as assets, Estimated Fair Value | $ 1,726,602 | $ 1,227,484 |
Financial instruments recorded as assets, Level | 2 | 2 |
Income Tax_ Schedule of Compo68
Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Current Income Tax Expense (Benefit) | $ 481 | $ 647 | $ 1,451 |
Deferred Income Tax Expense (Benefit) | 193 | 240 | (2) |
Adjustment of deferred tax assets and liabilities for enacted rate change | 49 | 0 | 0 |
Income tax expense (benefit) | $ 723 | $ 887 | $ 1,449 |
Income Tax_ Schedule of Effec69
Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Effective Income Tax Rate Reconciliation at Federal Income Tax Rate, Amount | $ 981 | $ 953 | $ 1,480 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ (221) | $ (53) | $ (31) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | (7.80%) | (2.00%) | (0.70%) |
Effective Income Tax Rate Reconciliation, Deduction, Dividends, Amount | $ (83) | $ (11) | $ 0 |
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent | (3.00%) | (0.40%) | 0.00% |
Adjustment of deferred tax assets and liabilities for enacted rate change | $ 49 | $ 0 | $ 0 |
Adjustment of deferred tax assets and labilities for enacted rate change, percent | 1.70% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ (3) | $ (2) | $ 0 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.10%) | (0.10%) | 0.00% |
Total Income Tax Expense (Benefit) | $ 723 | $ 887 | $ 1,449 |
Effective Income Tax Rate Reconciliation, Percent | 25.80% | 32.50% | 34.30% |
Income Tax_ Schedule of Defer70
Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets, Gross | ||
Tax reserves method change | $ 15 | $ 29 |
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 0 | 175 |
Deferred Tax Assets, Tax Deferred Expense | 280 | 291 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities | 291 | 391 |
Deferred Tax Assets, Other | 1 | 4 |
Deferred Tax Assets, Gross | 587 | 890 |
Deferred Tax Liabilities, Gross | ||
Deferred Tax Liabilities, Investments | 490 | 355 |
Deferred Tax Liabilities, Deferred Insurance Expense | 19 | 39 |
Unrealized investment gains | 4 | 0 |
Deferred Tax Liabilities, Other | 0 | 1 |
Deferred Tax Liabilities, Gross | 513 | 395 |
Net deferred tax asset | $ 74 | $ 495 |
Income Tax_ Schedule of Unrec71
Income Tax: Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Unrecognized Tax Benefits, Beginning Balance | $ 0 | $ 1 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | (1) |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Income Tax (Details)
Income Tax (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Accruals for payment of interest and penalties | $ 2 | $ 7 |
Deferred Tax Assets, Capital Loss Carryforwards | 0 | 0 |
Operating Loss Carryforwards | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Shared Expenses remibursed | $ 20,808 | $ 15,349 | $ 8,447 |
Investment management fees | $ 21,000 | $ 28,000 | $ 28,000 |
Related Party Transactions_ S74
Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Due from Related Parties, Current | $ 8,492 | $ 11,460 |
Due to Related Parties, Current | 2,771 | 6,196 |
CMFG Life Insurance Company | ||
Due from Related Parties, Current | 8,492 | 11,460 |
CUNA Brokerage Services, Inc | ||
Due to Related Parties, Current | 2,749 | 6,177 |
Other Related Parties | ||
Due to Related Parties, Current | $ 22 | $ 19 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||||
Ceded Premiums Earned | $ 1,297 | $ (3,150) | $ (2,190) | $ (3,559) |
Policyholder Benefits and Claims Incurred, Ceded | $ 1,244 | $ (2,777) | $ (1,762) | $ (2,988) |
Reinsurance_ Effects of Reins76
Reinsurance: Effects of Reinsurance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||||
Face amount of policies in force | $ 86,587 | $ 95,577 | $ 110,827 | |
Premiums Written and Earned | ||||
Direct Premiums Written | 3,145 | 2,168 | 2,384 | |
Direct Premiums Unearned | 5 | 1 | 0 | |
Direct Premiums Earned | 3,150 | 2,169 | 2,384 | |
Ceded Premiums Written | (3,145) | (2,172) | (3,559) | |
Ceded Premiums Unearned | (5) | (18) | 0 | |
Ceded Premiums Earned | $ 1,297 | (3,150) | (2,190) | (3,559) |
Premiums written, net | 5 | (4) | (1,175) | |
Change in unearned premiums, net | (5) | (17) | 0 | |
Premiums, Net | 0 | (21) | (1,175) | |
Contract revenue direct | 3,498 | 1,303 | 742 | |
Contract revenue ceded to affiliate | (3,498) | (1,303) | (724) | |
Contract charges | 0 | 0 | 18 | |
Policyholder Benefits and Claims Incurred, Net | ||||
Policyholder Benefits and Claims Incurred, Direct | 2,779 | 1,761 | 1,784 | |
Policyholder Benefits and Claims Incurred, Ceded | $ 1,244 | (2,777) | (1,762) | (2,988) |
Policyholder Benefits and Claims Incurred, Net | 2 | (1) | (1,204) | |
Interest credited to policyholder account balances ceded to affiliate | 30,469 | 20,519 | 9,833 | |
Interest credited to policyholder account balances, ceded to affiliate | (30,469) | (20,519) | (9,829) | |
Interest credited to policyholder account balances | $ 0 | $ 0 | $ 4 |
Statutory Financial Data and 77
Statutory Financial Data and Dividend Restrictions: Schedule of certain statutory basis financial information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 18,601 | $ 23,205 | |
Statutory Accounting Practices, Statutory Net Income Amount | $ 1,914 | $ 1,051 | $ 1,112 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Details | ||||||
Unrealized Investment Gain (Loss), Balance | $ (323) | $ (225) | $ 222 | |||
Accumulated Other Comprehensive Income (Loss), net of tax | (323) | (225) | 222 | |||
Unrealized Gain (Loss) on Investments | 334 | [1] | (98) | [2] | (447) | [3] |
Change in unrealized holding gains | 334 | [1] | (98) | [2] | (447) | [3] |
Unrealized Investment Gain (Loss), Balance | 11 | (323) | (225) | |||
Accumulated Other Comprehensive Income (Loss), net of tax | $ 11 | $ (323) | $ (225) | |||
[1] | Change in unrealized holding gains, net of tax - $181 | |||||
[2] | Change in unrealized holding gains (losses), net of tax - ($53) | |||||
[3] | Change in unrealized holding gains (losses), net of tax - ($240) |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | |||
Accumulated Other Comprehensive Income Reclassification for unrealized net gains on available-for-sale securities | $ 0 | $ 0 | $ 15 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 15 |
Reclassifications from accumulated other comprehensive income, tax expense (benefit) | 0 | 0 | 5 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 | $ 10 |
Business Segment Information_80
Business Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Life and health premiums, net | $ 0 | $ (21) | $ (1,175) |
Contract charges | 0 | 0 | 18 |
Net investment income | 517 | 376 | 366 |
Debt Securities, Net realized investment gains | 0 | 0 | 117 |
Other Income | 3,996 | 3,415 | 5,336 |
Total revenues | 4,513 | 3,770 | 4,662 |
Life and health premiums, net | 0 | (21) | (1,175) |
Contract charges | 0 | 0 | 18 |
Net investment income | 517 | 376 | 366 |
Debt Securities, Net realized investment gains | 0 | 0 | 117 |
Other Income | 3,996 | 3,415 | 5,336 |
Total revenues | 4,513 | 3,770 | 4,662 |
Benefits and expenses | |||
Life and health insurance claims and benefits, net | 2 | (1) | (1,204) |
Interest credited to policyholder account balances | 0 | 0 | 4 |
Operating and other expenses | 1,709 | 1,049 | 1,633 |
Total benefits and expenses | 1,711 | 1,048 | 433 |
Income (loss) before income taxes | 2,802 | 2,722 | 4,229 |
Income tax expense (benefit) | 723 | 887 | 1,449 |
Net Income (Loss) | 2,079 | 1,835 | 2,780 |
Change in unrealized gains, net of tax expense | 334 | (98) | (447) |
Other Comprehensive Income (Loss) | 334 | (98) | (447) |
Total Comprehensive Income (Loss) | 2,413 | 1,737 | 2,333 |
Reinsurance recoverable from affiliate | 23,973 | 23,687 | 24,628 |
Assets on deposit | 2,453,033 | 1,619,113 | 947,595 |
Claim and policy benefit reserves - life and health | 23,052 | 21,506 | 21,537 |
Policyholder account balances | 2,456,634 | 1,622,448 | 951,068 |
Life and Health | |||
Revenues | |||
Life and health premiums, net | 0 | (21) | (1,175) |
Contract charges | 0 | 0 | 18 |
Net investment income | 517 | 376 | 366 |
Debt Securities, Net realized investment gains | 0 | 0 | 117 |
Other Income | 3,996 | 3,415 | 5,336 |
Total revenues | 4,513 | 3,770 | 4,662 |
Life and health premiums, net | 0 | (21) | (1,175) |
Contract charges | 0 | 0 | 18 |
Net investment income | 517 | 376 | 366 |
Debt Securities, Net realized investment gains | 0 | 0 | 117 |
Other Income | 3,996 | 3,415 | 5,336 |
Total revenues | 4,513 | 3,770 | 4,662 |
Benefits and expenses | |||
Life and health insurance claims and benefits, net | 2 | (1) | (1,204) |
Interest credited to policyholder account balances | 0 | 0 | 4 |
Operating and other expenses | 1,596 | 1,033 | 1,633 |
Total benefits and expenses | 1,598 | 1,032 | 433 |
Income (loss) before income taxes | 2,915 | 2,738 | 4,229 |
Income tax expense (benefit) | 763 | 892 | 1,449 |
Net Income (Loss) | 2,152 | 1,846 | 2,780 |
Change in unrealized gains, net of tax expense | 334 | (98) | (447) |
Other Comprehensive Income (Loss) | 334 | (98) | (447) |
Total Comprehensive Income (Loss) | 2,486 | 1,748 | 2,333 |
Reinsurance recoverable from affiliate | 23,973 | 23,687 | 24,628 |
Assets on deposit | 0 | 0 | 0 |
Claim and policy benefit reserves - life and health | 20,688 | 20,344 | 21,077 |
Policyholder account balances | 3,601 | 3,335 | 3,473 |
Annuities | |||
Revenues | |||
Life and health premiums, net | 0 | 0 | 0 |
Contract charges | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Debt Securities, Net realized investment gains | 0 | 0 | 0 |
Other Income | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 |
Life and health premiums, net | 0 | 0 | 0 |
Contract charges | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Debt Securities, Net realized investment gains | 0 | 0 | 0 |
Other Income | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 |
Benefits and expenses | |||
Life and health insurance claims and benefits, net | 0 | 0 | 0 |
Interest credited to policyholder account balances | 0 | 0 | 0 |
Operating and other expenses | 113 | 16 | 0 |
Total benefits and expenses | 113 | 16 | 0 |
Income (loss) before income taxes | (113) | (16) | 0 |
Income tax expense (benefit) | (40) | (5) | 0 |
Net Income (Loss) | (73) | (11) | 0 |
Change in unrealized gains, net of tax expense | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Total Comprehensive Income (Loss) | (73) | (11) | 0 |
Reinsurance recoverable from affiliate | 0 | 0 | 0 |
Assets on deposit | 2,453,033 | 1,619,113 | 947,595 |
Claim and policy benefit reserves - life and health | 2,364 | 1,162 | 460 |
Policyholder account balances | $ 2,453,033 | $ 1,619,113 | $ 947,595 |