Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | ICC Holdings, Inc. | |
Entity Central Index Key | 0001681903 | |
Trading Symbol | icch | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 3,293,325 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Investments and cash: | |||
Fixed maturity securities (cost or amortized cost - $96,725,639 at 9/30/2020 and $88,348,415 at 12/31/2019) | $ 103,318,485 | $ 92,087,572 | |
Other invested assets | 1,779,060 | 877,900 | |
Property held for investment, at cost, net of accumulated depreciation of $438,720 at 9/30/2020 and $332,218 at 12/31/2019 | 5,515,676 | 4,353,713 | |
Cash and cash equivalents | 6,598,640 | 6,626,585 | |
Total investments and cash | 131,446,949 | 118,394,543 | |
Accrued investment income | 719,389 | 646,504 | |
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $100,000 at 9/30/2020 and 12/31/2019 | 22,737,615 | 22,368,526 | |
Ceded unearned premiums | 839,718 | 822,818 | |
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 9/30/2020 and 12/31/2019 | 13,844,420 | 11,036,170 | |
Federal income taxes | 717,862 | 192,559 | |
Deferred policy acquisition costs, net | 5,267,470 | 5,269,256 | |
Property and equipment, at cost, net of accumulated depreciation of $5,949,933 at 9/30/2020 and $5,619,706 at 12/31/2019 | 2,851,235 | 3,033,348 | |
Other assets | 1,559,179 | 1,239,794 | |
Total assets | 179,983,837 | 163,003,518 | |
Liabilities: | |||
Unpaid losses and settlement expenses | 61,943,244 | 56,838,307 | |
Unearned premiums | 29,921,669 | 30,392,817 | |
Reinsurance balances payable | 728,674 | 374,998 | |
Corporate debt | 15,097,960 | 3,475,088 | |
Accrued expenses | 3,093,882 | 4,216,988 | |
Income taxes - deferred | 214,674 | 39,213 | |
Other liabilities | 950,858 | 1,324,273 | |
Total liabilities | 111,950,961 | 96,661,684 | |
Equity: | |||
Common stock | [1] | 35,000 | 35,000 |
Treasury stock, at cost | [2] | (3,112,656) | (3,146,576) |
Additional paid-in capital | 32,717,495 | 32,703,209 | |
Accumulated other comprehensive earnings, net of tax | 5,208,657 | 2,953,936 | |
Retained earnings | 35,821,408 | 36,608,750 | |
Less: Unearned Employee Stock Ownership Plan shares at cost | [3] | (2,637,028) | (2,812,485) |
Total equity | 68,032,876 | 66,341,834 | |
Total liabilities and equity | 179,983,837 | 163,003,518 | |
Common Stock [Member] | |||
Investments and cash: | |||
Stocks at fair value | 12,596,635 | 14,448,773 | |
Preferred Stock [Member] | |||
Investments and cash: | |||
Stocks at fair value | $ 1,638,453 | ||
[1] | Par value $0.01; authorized: 2020 - 10,000,000 shares and 2019 - 10,000,000 shares; issued: 2020 - 3,500,000 shares and 2019 - 3,500,000 shares; outstanding: 2020 - 3,030,522 and 2019 - 3,014,941 shares. | ||
[2] | 2020 - 205,775 shares and 2019 - 203,811 shares | ||
[3] | 2020 - 263,703 shares and 2019 - 281,248 shares |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Fixed maturity securities, amortized cost | $ 96,725,639 | $ 88,348,415 | |
Property held for investment, accumulated depreciation | 438,720 | 332,218 | |
Premiums and reinsurance balances receivable, allowances for uncollectible amounts | 100,000 | 100,000 | |
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts | 0 | 0 | |
Property and equipment, at cost, accumulated depreciation | $ 5,949,933 | $ 5,619,706 | |
Common stock, par value (in dollars per share) | [1] | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | [1] | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | [1] | 3,500,000 | 3,500,000 |
Common stock, shares outstanding (in shares) | [1] | 3,030,522 | 3,014,941 |
Treasury stock (in shares) | [2] | 205,775 | 203,811 |
Unearned Employee Stock Ownership Plan (in shares) | [3] | 263,703 | 281,248 |
[1] | Par value $0.01; authorized: 2020 - 10,000,000 shares and 2019 - 10,000,000 shares; issued: 2020 - 3,500,000 shares and 2019 - 3,500,000 shares; outstanding: 2020 - 3,030,522 and 2019 - 3,014,941 shares. | ||
[2] | 2020 - 205,775 shares and 2019 - 203,811 shares | ||
[3] | 2020 - 263,703 shares and 2019 - 281,248 shares |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net premiums earned | $ 12,532,967 | $ 13,679,746 | $ 36,921,702 | $ 39,219,882 |
Net investment income | 900,950 | 811,462 | 2,644,900 | 2,406,965 |
Net realized investment (losses) gains | (59,333) | 141,481 | (402,320) | 741,123 |
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | 981,779 | (7,603) | 2,195 | 1,716,124 |
Other income (loss) | (36,333) | (112,763) | 82,934 | (43,838) |
Consolidated revenues | 14,320,030 | 14,512,323 | 39,249,411 | 44,040,256 |
Losses and settlement expenses | 8,863,053 | 9,609,347 | 25,913,619 | 28,117,369 |
Policy acquisition costs and other operating expenses | 4,722,485 | 4,733,206 | 13,741,725 | 14,541,986 |
Interest expense on debt | 58,724 | 32,458 | 150,773 | 96,353 |
General corporate expenses | 171,860 | 164,378 | 471,616 | 444,829 |
Total expenses | 13,816,122 | 14,539,389 | 40,277,733 | 43,200,537 |
Earnings (loss) before income taxes | 503,908 | (27,066) | (1,028,322) | 839,719 |
Total income tax expense (benefit) | 99,919 | (13,150) | (240,980) | 122,796 |
Net earnings (loss) | 403,989 | (13,916) | (787,342) | 716,923 |
Other comprehensive earnings, net of tax | 440,838 | 703,220 | 2,254,721 | 3,423,233 |
Comprehensive earnings | $ 844,827 | $ 689,304 | $ 1,467,379 | $ 4,140,156 |
Basic: | ||||
Basic net earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0 | $ (0.26) | $ 0.24 |
Diluted: | ||||
Diluted net earnings (loss) per share (in dollars per share) | $ 0.13 | $ 0 | $ (0.26) | $ 0.24 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 3,030,571 | 3,011,034 | 3,023,794 | 3,004,887 |
Diluted (in shares) | 3,039,658 | 3,015,038 | 3,032,881 | 3,008,891 |
Net premiums earned | $ 12,532,967 | $ 13,679,746 | $ 36,921,702 | $ 39,219,882 |
Net investment income | 900,950 | 811,462 | 2,644,900 | 2,406,965 |
Net realized investment (losses) gains | (59,333) | 141,481 | (402,320) | 741,123 |
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | 981,779 | (7,603) | 2,195 | 1,716,124 |
Other income (loss) | (36,333) | (112,763) | 82,934 | (43,838) |
Consolidated revenues | 14,320,030 | 14,512,323 | 39,249,411 | 44,040,256 |
Losses and settlement expenses | 8,863,053 | 9,609,347 | 25,913,619 | 28,117,369 |
Policy acquisition costs and other operating expenses | 4,722,485 | 4,733,206 | 13,741,725 | 14,541,986 |
Interest expense on debt | 58,724 | 32,458 | 150,773 | 96,353 |
General corporate expenses | 171,860 | 164,378 | 471,616 | 444,829 |
Total expenses | 13,816,122 | 14,539,389 | 40,277,733 | 43,200,537 |
Earnings (loss) before income taxes | 503,908 | (27,066) | (1,028,322) | 839,719 |
Total income tax expense (benefit) | 99,919 | (13,150) | (240,980) | 122,796 |
Net earnings (loss) | 403,989 | (13,916) | (787,342) | 716,923 |
Other comprehensive earnings, net of tax | 440,838 | 703,220 | 2,254,721 | 3,423,233 |
Comprehensive earnings | $ 844,827 | $ 689,304 | $ 1,467,379 | $ 4,140,156 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Unearned ESOP [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Treasury Stock [Member] | Unearned ESOP [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | ||
Balance (Accounting Standards Update 2016-01 [Member]) at Dec. 31, 2018 | [1] | $ (1,366,297) | $ 1,366,297 | |||||||||||||
Balance at Dec. 31, 2018 | $ 35,000 | $ (2,999,995) | $ (3,046,855) | $ 32,505,423 | $ 33,680,702 | $ (1,580,976) | $ 58,593,299 | |||||||||
Purchase of common stock | (102,855) | (102,855) | ||||||||||||||
Net (loss) | 716,923 | 716,923 | ||||||||||||||
Other comprehensive earnings, net of tax | 3,423,233 | 3,423,233 | ||||||||||||||
Restricted stock unit expense | 78,226 | 78,226 | ||||||||||||||
ESOP compensation expense | 175,296 | 57,839 | 233,135 | |||||||||||||
Balance at Sep. 30, 2019 | 35,000 | (3,102,850) | (2,871,559) | 32,641,488 | 33,031,328 | 3,208,554 | 62,941,961 | |||||||||
Balance (Accounting Standards Update 2016-01 [Member]) at Dec. 31, 2019 | ||||||||||||||||
Balance at Dec. 31, 2019 | 35,000 | (3,146,576) | (2,812,485) | 32,703,209 | 36,608,750 | 2,953,936 | 66,341,834 | |||||||||
Purchase of common stock | (109,460) | (109,460) | ||||||||||||||
Net (loss) | (787,342) | (787,342) | ||||||||||||||
Other comprehensive earnings, net of tax | 2,254,721 | 2,254,721 | ||||||||||||||
Restricted stock unit expense | 143,380 | [2] | (16,792) | 126,588 | ||||||||||||
ESOP compensation expense | 175,457 | 31,078 | 206,535 | |||||||||||||
Balance at Sep. 30, 2020 | $ 35,000 | $ (3,112,656) | $ (2,637,028) | $ 32,717,495 | $ 35,821,408 | $ 5,208,657 | $ 68,032,876 | |||||||||
[1] | See discussion of Accounting Standards Update 2016-01 adoption in 2019 10-K, Note 1 - Summary of Significant Accounting Policies | |||||||||||||||
[2] | Amount represents restricted stock units that have fully vested in the period |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) | $ (787,342) | $ 716,923 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities | ||
Net realized investment losses (gains) | 402,320 | (741,123) |
Net unrealized (gains) on equity securities | (2,195) | (1,716,124) |
Depreciation | 508,152 | 613,916 |
Deferred income tax | (423,896) | 360,009 |
Amortization of bond premium and discount | 175,114 | 172,691 |
Stock-based compensation expense | 333,123 | 311,361 |
Change in: | ||
Accrued investment income | (72,885) | (2,371) |
Premiums and reinsurance balances receivable | (369,089) | (1,847,981) |
Ceded unearned premiums | (16,900) | (65,406) |
Reinsurance balances payable | 353,676 | (897,013) |
Reinsurance balances recoverable | (2,808,250) | (5,530,517) |
Deferred policy acquisition costs | 1,786 | (278,207) |
Unpaid losses and settlement expenses | 5,104,937 | 6,875,171 |
Unearned premiums | (471,148) | 1,642,978 |
Accrued expenses | (1,123,106) | (1,376,476) |
Current federal income tax | (525,303) | (18,097) |
Other | (692,009) | (570,277) |
Net cash (used in) operating activities | (413,015) | (2,350,543) |
Cash flows from investing activities: | ||
Fixed maturity securities, available-for-sale | (20,946,699) | (19,060,848) |
Other invested assets | (901,500) | (738,300) |
Property held for investment | (1,268,464) | (332,393) |
Property and equipment | (231,291) | (321,704) |
Proceeds from sales, maturities and calls of: | ||
Fixed maturity securities, available-for-sale | 12,813,180 | 19,522,461 |
Property and equipment | 11,753 | 31,137 |
Net cash (used in) investing activities | (11,128,342) | (153,466) |
Cash flows from financing activities: | ||
Proceeds from loans | 11,629,800 | |
Repayments of borrowed funds | (6,928) | (7,020) |
Purchase of treasury stock | (109,460) | (102,855) |
Net cash provided by (used in) financing activities | 11,513,412 | (109,875) |
Net (decrease) in cash and cash equivalents | (27,945) | (2,613,884) |
Cash and cash equivalents at beginning of year | 6,626,585 | 4,644,784 |
Cash and cash equivalents at end of period | 6,598,640 | 2,030,900 |
Supplemental information: | ||
Federal income tax paid (recovered) | (164,543) | |
Interest paid | 135,800 | 96,700 |
Common Stock [Member] | ||
Cash flows from investing activities: | ||
Equity securities | (3,356,465) | (5,252,095) |
Proceeds from sales, maturities and calls of: | ||
Equity securities | 4,247,936 | 5,998,276 |
Preferred Stock [Member] | ||
Cash flows from investing activities: | ||
Equity securities | (1,718,782) | |
Proceeds from sales, maturities and calls of: | ||
Equity securities | $ 221,990 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. DESCRIPTION OF BUSINESS ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. 10 We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers' compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, and Wisconsin and markets through independent agents. Approximately 22.7% 22.3% three September 30, 2020 2019 nine September 30, 2020 2019 25.0% 25.8% B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10 not 10 December 31, 2019 “2019 10 not September 30, 2020 not The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates. C. SIGNIFICANT ACCOUNTING POLICIES The Company reported its significant accounting policies in the 2019 10 D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not Note 1 2019 10 2012 107 107 2 3 E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended September 30, 2020 December 31, 2019 no As of September 30, December 31, 2020 2019 Automobiles $ 530,722 $ 505,788 Furniture and fixtures 474,401 457,218 Computer equipment and software 3,917,136 3,823,416 Home office 3,878,909 3,866,632 Total cost 8,801,168 8,653,054 Accumulated depreciation (5,949,933 ) (5,619,706 ) Net property and equipment $ 2,851,235 $ 3,033,348 F. COMPREHENSIVE EARNINGS Comprehensive earnings (loss) include net (loss) earnings plus unrealized (gains) losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21% net of tax expense 343,316 771,697 nine September 30, 2020 2019 The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale securities: Nine-Month Periods Ended September 30, 2020 2019 Beginning balance $ 2,953,936 $ (1,580,976 ) Cumulative effect of adoption of ASU 2016-01 - 1,366,297 Adjusted beginning balance 2,953,936 (214,679 ) Other comprehensive earnings before reclassification 2,579,925 3,611,573 Amount reclassified from accumulated other comprehensive earnings (325,204 ) (188,340 ) Net current period other comprehensive earnings 2,254,721 3,423,233 Ending balance $ 5,208,657 $ 3,208,554 The following table Three-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 551,140 $ (57,292 ) $ 493,848 $ 890,152 $ (116,415 ) $ 773,737 Reclassification adjustment for (gains) included in net earnings (67,102 ) 14,092 (53,010 ) (89,262 ) 18,745 (70,517 ) Total other comprehensive earnings $ 484,038 $ (43,200 ) $ 440,838 $ 800,890 $ (97,670 ) $ 703,220 Nine-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 2,836,794 $ (256,869 ) $ 2,579,925 $ 4,333,205 $ (721,632 ) $ 3,611,573 Reclassification adjustment for (gains) included in net earnings (411,651 ) 86,447 (325,204 ) (238,405 ) 50,065 (188,340 ) Total other comprehensive earnings $ 2,425,143 $ (170,422 ) $ 2,254,721 $ 4,094,800 $ (671,567 ) $ 3,423,233 The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Three-Month Periods Ended Nine-Month Periods Ended Details about Accumulated Other September 30, September 30, Affected Line Item in the Statement Comprehensive Earnings Component 2020 2019 2020 2019 where Net Earnings is Presented Unrealized (gains) losses on AFS investments: $ (67,102 ) $ (89,262 ) $ (411,651 ) $ (238,405 ) Net realized investment (gains) losses 14,092 18,745 86,447 50,065 Income tax expense (benefit) Total reclassification adjustment, net of tax $ (53,010 ) $ (70,517 ) $ (325,204 ) $ (188,340 ) G. RISKS AND UNCERTAINTIES Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The COVID- 19 19 |
Note 2 - Investments
Note 2 - Investments | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 2. INVESTMENTS The Company's investments are primarily composed of fixed income debt securities and common and preferred stock equity securities. We carry our equity securities at fair value and categorize all our fixed maturity debt securities as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company's investments. If a quoted market price is not no 3 Note 3 not Available-for-Sale Fixed Maturity and Equity Securities The following tables For the Three-Months Ended September 30, Net Realized Proceeds Gains Losses Gains (Losses) 2020 Fixed maturity securities $ 3,428,951 $ 67,102 $ — $ 67,102 Common stocks 986,939 93,984 (226,398 ) (132,414 ) Preferred stocks 76,500 5,979 — 5,979 2019 Fixed maturity securities $ 5,771,988 $ 99,445 $ (10,183 ) $ 89,262 Common stocks 1,320,803 185,319 (133,100 ) 52,219 For the Nine-Months Ended September 30, Net Realized Proceeds Gains Losses Gains (Losses) 2020 Fixed maturity securities $ 12,813,180 $ 412,577 $ (926 ) $ 411,651 Common stocks 4,247,936 470,406 (1,282,423 ) (812,017 ) Preferred stocks 221,990 8,808 (10,762 ) (1,954 ) 2019 Fixed maturity securities $ 19,522,461 $ 264,737 $ (26,332 ) $ 238,405 Common stocks 5,998,276 960,420 (457,702 ) 502,718 The amortized cost and estimated fair value of fixed income securities at September 30, 2020 are shown as follows Amortized Cost Fair Value Due in one year or less $ 1,275,943 $ 1,305,900 Due after one year through five years 18,436,788 19,612,776 Due after five years through 10 years 16,366,929 18,431,137 Due after 10 years 21,586,567 23,678,509 Asset and mortgage backed securities without a specific due date 38,843,607 40,057,464 Redeemable preferred stocks 215,805 232,699 Total fixed maturity securities $ 96,725,639 $ 103,318,485 Expected maturities may The following table is a schedule of cost or amortized cost and estimated fair values of investments in securities classified as available for sale at September 30, 2020 December 31, 2019 Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2020 Fixed maturity securities: U.S. Treasury $ 1,352,935 $ 1,390,344 $ 37,491 $ (82 ) MBS/ABS/CMBS 38,843,607 40,057,464 1,354,537 (140,680 ) Corporate 38,295,706 42,339,992 4,141,760 (97,474 ) Municipal 18,017,586 19,297,986 1,288,389 (7,989 ) Redeemable preferred stock 215,805 232,699 16,894 — Total fixed maturity securities $ 96,725,639 $ 103,318,485 $ 6,839,071 $ (246,225 ) Gross Unrealized Amortized Cost Fair Value Gains Losses 2019 Fixed maturity securities: U.S. Treasury $ 800,462 $ 800,219 $ 684 $ (927 ) MBS/ABS/CMBS 33,802,911 34,290,995 540,743 (52,659 ) Corporate 39,442,202 41,915,103 2,482,378 (9,477 ) Municipal 14,302,840 15,081,255 808,081 (29,666 ) Total fixed maturity securities $ 88,348,415 $ 92,087,572 $ 3,831,886 $ (92,729 ) All the Company's collateralized securities carry an average credit rating of AA+ by one Note 3 fair values o 13,590,690 9,909,462 13,811,945 13,408,898 September 30, 2020 December 31, 2019 ANALYSIS The following tables are also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of September 30, 2020 December 31, 2019 The tables September 30, 2020 December 31, 2019 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total Fixed Maturity Securities: U.S. Treasury Fair value $ 300,000 $ — $ 300,000 $ — $ 699,391 $ 699,391 Amortized cost 300,082 — 300,082 — 700,318 700,318 Unrealized loss (82 ) — (82 ) — (927 ) (927 ) MBS/ABS/CMBS Fair value 11,438,192 2,014,666 13,452,858 6,398,581 5,056,732 11,455,313 Amortized cost 11,556,312 2,037,226 13,593,538 6,420,488 5,087,484 11,507,972 Unrealized loss (118,120 ) (22,560 ) (140,680 ) (21,907 ) (30,752 ) (52,659 ) Corporate Fair value 1,075,259 — 1,075,259 1,396,706 — 1,396,706 Amortized cost 1,172,733 — 1,172,733 1,406,183 — 1,406,183 Unrealized loss (97,474 ) — (97,474 ) (9,477 ) — (9,477 ) Municipal Fair value 491,160 — 491,160 1,969,468 — 1,969,468 Amortized cost 499,149 — 499,149 1,999,134 — 1,999,134 Unrealized loss (7,989 ) — (7,989 ) (29,666 ) — (29,666 ) Total Fair value 13,304,611 2,014,666 15,319,277 9,764,755 5,756,123 15,520,878 Amortized cost 13,528,276 2,037,226 15,565,502 9,825,805 5,787,802 15,613,607 Unrealized loss $ (223,665 ) $ (22,560 ) $ (246,225 ) $ (61,050 ) $ (31,679 ) $ (92,729 ) The fixed income portfolio contained 22 unrealized loss position September 30, 2020 22 4 12 22,560 not not not There were no nine September 30, 2020 September 30, 2020 not may not September 30, 2020 December 31, 2019 UNREALIZED GAINS AND LOSSES ON EQUITY SECURITIES Net unrealized gains three nine September 30, 2020 September 30, 2020 981,779 2,195 three nine September 30, 2019 September 30, 2019 ( 7,603 1,716,124 Other Invested Assets Other invested assets include membership in the Federal Home Loan Bank of Chicago (FHLBC), which occurred in February 2018. $200,000 In addition, other invested assets $305,000, $625,000 $650,000 July 30, 2019 January 28, 2020, 6.5% 20 July 30, 2029. |
Note 3 - Fair Value Disclosures
Note 3 - Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. FAIR VALUE DISCLOSURES Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. The fair value of certain financial instruments is determined based on their underlying characteristics and relevant transactions in the marketplace. GAAP guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance also describes three may The following are the levels of the fair value hierarchy and a brief description of the type of valuation inputs that are used to establish each level: ● Level 1 ● Level 2 ● Level 3 one As a part of the process to determine fair value, management utilizes widely recognized, third third Corporate, Agencies, and Municipal Bonds— two 2. 2. Mortgage-backed Securities (MBS), Collateralized Mortgage Obligations (CMO), Commercial Mortgage-backed Securities (CMBS) and Asset-backed Securities (ABS)— 2. 2. U.S. Treasury Bonds, Common Stocks and Exchange Traded Funds— 1 1. Preferred Stock— not not 2. 2. Due to the relatively short-term nature of cash and cash equivalents, their carrying amounts are reasonable estimates of fair value. Other invested assets as well as debt obligations are carried at face value and given that there is no Assets measured at fair value on a recurring basis as of September 30, 2020 Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,390,344 $ — $ — $ 1,390,344 MBS/ABS/CMBS — 40,057,464 — 40,057,464 Corporate — 42,339,992 — 42,339,992 Municipal — 19,297,986 — 19,297,986 Redeemable preferred stocks — 232,699 — 232,699 Total fixed maturity securities 1,390,344 101,928,141 — 103,318,485 Equity securities Common stocks 12,596,635 — — 12,596,635 Perpetual preferred stocks — 1,638,453 — 1,638,453 Total equity securities 12,596,635 1,638,453 — 14,235,088 Total marketable investments measured at fair value $ 13,986,979 $ 103,566,594 $ — $ 117,553,573 Assets measured at fair value on a recurring basis as of December 31, 2019 Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 800,219 $ — $ — $ 800,219 MBS/ABS/CMBS — 34,290,995 — 34,290,995 Corporate — 41,915,103 — 41,915,103 Municipal — 15,081,255 — 15,081,255 Total fixed maturity securities 800,219 91,287,353 — 92,087,572 Equity securities Common stocks 14,448,773 — — 14,448,773 Total marketable investments measured at fair value $ 15,248,992 $ 91,287,353 $ — $ 106,536,345 As noted in the previous tables, the Company did not 3 September 30, 2020 December 31, 2019 Additionally, there were no 1 2 nine September 30, 2020 2019 . |
Note 4 - Debt
Note 4 - Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 4. DEBT Debt Obligation ICC Holdings, Inc. secured a loan with a commercial bank in March 2017 $3.5 five 3.65%. $1.0 The Company also has borrowing capacity up to approximately $33 In March 2020, 19 19, March 2020, $6.0 five 1.4%. $6.8 May 2020, $4.0 0% one March 2020 30 $7.4 In April 2020, $1.6 second 2022 1.0% fourth 2020, may 60 not 120 2020 first 10 five 2 second 2025 2022 first The total balance September 30, 2020 December 31, 2019 15,097,960 3,475,088 1.5% September 30, 2020 3.7% December 31, 2019 On July 30, 2020, 0.74% $4.0 May 3, 2021, $4.0 No Revolving Line of Credit We maintained a revolving line of credit with a commercial bank, which permitted borrowing up to an aggregate principal amount of $1.75 2013 August 5, 2020. 30 2% 3.5%. not $5.0 no nine September 30, 2020 2019 no Effective August 3, 2020, $2.0 August 3, 2021. 0.5%. $2.0 no |
Note 5 - Reinsurance
Note 5 - Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | 5. REINSURANCE In the ordinary course of business, the Company assumes and cedes premiums and selected insured risks with other insurance companies, known as reinsurance. A large portion of the reinsurance is put into effect under contracts known as treaties and, in some instances, by negotiation on each individual risk (known as facultative reinsurance). In addition, there are several types of treaties including quota share, excess of loss and catastrophe reinsurance contracts that protect against losses over stipulated amounts arising from any one Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $1,000,000 $500,000 $500,000 Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows: Three-Month Periods Ended September 30, 2020 2019 WRITTEN Direct $ 14,534,058 $ 16,305,222 Reinsurance assumed 51,551 70,200 Reinsurance ceded (2,328,734 ) (2,410,170 ) Net $ 12,256,875 $ 13,965,252 EARNED Direct $ 14,825,942 $ 16,007,232 Reinsurance assumed 51,108 64,863 Reinsurance ceded (2,344,083 ) (2,392,349 ) Net $ 12,532,967 $ 13,679,746 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 10,536,397 $ 13,034,216 Reinsurance assumed 6,073 36,297 Reinsurance ceded (1,679,417 ) (3,461,166 ) Net $ 8,863,053 $ 9,609,347 Nine-Month Periods Ended September 30, 2020 2019 WRITTEN Direct $ 44,240,437 $ 48,349,466 Reinsurance assumed 114,924 178,446 Reinsurance ceded (7,921,708 ) (7,730,458 ) Net $ 36,433,653 $ 40,797,454 EARNED Direct $ 44,710,106 $ 46,710,351 Reinsurance assumed 116,404 174,583 Reinsurance ceded (7,904,808 ) (7,665,052 ) Net $ 36,921,702 $ 39,219,882 LOSSES AND SETTLEMENT EXPENSES INCURRED Direct $ 37,370,896 $ 37,778,378 Reinsurance assumed 44,409 119,498 Reinsurance ceded (11,501,686 ) (9,780,507 ) Net $ 25,913,619 $ 28,117,369 |
Note 6 - Unpaid Losses and Sett
Note 6 - Unpaid Losses and Settlement Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | 6. UNPAID LOSSES AND SETTLEMENT EXPENSES The following table For the Three-Months Ended September 30, (In thousands) 2020 2019 Unpaid losses and settlement expense - beginning of the period: Gross $ 66,415 $ 61,264 Less: Ceded 19,463 13,974 Net 46,952 47,290 Increase in incurred losses and settlement expense: Current year 9,298 9,092 Prior years (435 ) 517 Total incurred 8,863 9,609 Deduct: Loss and settlement expense payments for claims incurred: Current year 4,885 6,064 Prior years 2,831 4,778 Total paid 7,716 10,842 Net unpaid losses and settlement expense - end of the period 48,099 46,057 Plus: Reinsurance recoverable on unpaid losses 13,844 12,266 Gross unpaid losses and settlement expense - end of the period $ 61,943 $ 58,323 For the Nine-Months Ended September 30, (In thousands) 2020 2019 Unpaid losses and settlement expense - beginning of the period: Gross $ 56,838 $ 51,447 Less: Ceded 11,036 6,736 Net 45,802 44,711 Increase in incurred losses and settlement expense: Current year 23,838 25,779 Prior years 2,076 2,338 Total incurred 25,914 28,117 Deduct: Loss and settlement expense payments for claims incurred: Current year 10,534 10,455 Prior years 13,083 16,316 Total paid 23,617 26,771 Net unpaid losses and settlement expense - end of the period 48,099 46,057 Plus: Reinsurance recoverable on unpaid losses 13,844 12,266 Gross unpaid losses and settlement expense - end of the period $ 61,943 $ 58,323 Net unpaid losses and settlement expense increased $2,042,000 4.4% nine September 30, 2020 2019 nine September 30, 2020 2019 unfavorable $2,076,000 $2,338,000 unfavorable three nine September 30, 2020 primary drivers three nine September 30, 2019 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. INCOME TAXES The Company's effective tax rate three nine September 30, 2020 19.8% 23.4% 48.6% 14.6% 2019 Income tax expense for the three nine September 30, 2020 2019 21% For the Three-Months Ended September 30, 2020 2019 Provision for income taxes at the statutory federal tax rates $ 105,820 $ (5,684 ) Increase (reduction) in taxes resulting from: Dividends received deduction (7,871 ) (8,955 ) Tax-exempt interest income (15,531 ) (16,433 ) Proration of tax-exempt interest and dividends received deduction 5,715 5,939 Nondeductible expenses 11,523 8,404 Officer life insurance, net 263 3,579 Total $ 99,919 $ (13,150 ) For the Nine-Months Ended September 30, 2020 2019 Provision for income taxes at the statutory federal tax rates $ (215,948 ) $ 176,341 Increase (reduction) in taxes resulting from: Dividends received deduction (21,567 ) (28,482 ) Tax-exempt interest income (46,795 ) (60,249 ) Proration of tax-exempt interest and dividends received deduction 16,683 21,775 Nondeductible expenses 25,751 24,450 Officer life insurance, net 896 (11,039 ) Total $ (240,980 ) $ 122,796 Management believes it is more likely than not As of September 30, 2020 December 31, 2019 not 2016 no |
Note 8 - Employee Benefits
Note 8 - Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 8. EMPLOYEE BENEFITS ESOP In connection with our conversion and public offering, we established an ESOP. The ESOP borrowed from the Company to purchase 350,000 $10.00 The Company may No nine September 30, 2020 2019 A compensation expense charge is booked monthly during each year for the shares committed to be allocated to participants that year, determined with reference to the fair market value of our stock at the time the commitment to allocate the shares is accrued and recognized. For the nine September 30, 2020 recognized compensation expense 206,535 17,546 December 31, 2020. 17,546 1,921 September 30, 2020 no three nine September 30, 2020 nine September 30, 2019 233,135 17,530 December 31, 2019 17,530 December 31, 2019 1,926 September 30, 2019 no three nine September 30, 2019 RESTRICTED STOCK UNITS Restricted stock units (RSUs) were granted for the first February 2018 March 2019 April 2020. 1/3 three As of September 30, 2020 18,040, 13,071, 11,700 RSUs have been granted $11.03, $13.70, $15.10, 126,588 78,226 nine September 30, 2020 September 30, 2019 269,359 September 30, 2020 three |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 9. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date the financial statements were issued. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business [Policy Text Block] | A. DESCRIPTION OF BUSINESS ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. 10 We are a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, workers' compensation, and umbrella liability coverages for the food and beverage industry through our subsidiary insurance company, ICC. ICC writes business in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, and Wisconsin and markets through independent agents. Approximately 22.7% 22.3% three September 30, 2020 2019 nine September 30, 2020 2019 25.0% 25.8% |
Consolidation, Policy [Policy Text Block] | B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10 not 10 December 31, 2019 “2019 10 not September 30, 2020 not The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates. |
Adopted Accounting Pronouncements [Policy Text Block] | C. SIGNIFICANT ACCOUNTING POLICIES The Company reported its significant accounting policies in the 2019 10 |
New Accounting Pronouncements, Policy [Policy Text Block] | D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not Note 1 2019 10 2012 107 107 2 3 |
Property, Plant and Equipment, Policy [Policy Text Block] | E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended September 30, 2020 December 31, 2019 no As of September 30, December 31, 2020 2019 Automobiles $ 530,722 $ 505,788 Furniture and fixtures 474,401 457,218 Computer equipment and software 3,917,136 3,823,416 Home office 3,878,909 3,866,632 Total cost 8,801,168 8,653,054 Accumulated depreciation (5,949,933 ) (5,619,706 ) Net property and equipment $ 2,851,235 $ 3,033,348 |
Comprehensive Income, Policy [Policy Text Block] | F. COMPREHENSIVE EARNINGS Comprehensive earnings (loss) include net (loss) earnings plus unrealized (gains) losses on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings, the Company used a 21% net of tax expense 343,316 771,697 nine September 30, 2020 2019 The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale securities: Nine-Month Periods Ended September 30, 2020 2019 Beginning balance $ 2,953,936 $ (1,580,976 ) Cumulative effect of adoption of ASU 2016-01 - 1,366,297 Adjusted beginning balance 2,953,936 (214,679 ) Other comprehensive earnings before reclassification 2,579,925 3,611,573 Amount reclassified from accumulated other comprehensive earnings (325,204 ) (188,340 ) Net current period other comprehensive earnings 2,254,721 3,423,233 Ending balance $ 5,208,657 $ 3,208,554 The following table Three-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 551,140 $ (57,292 ) $ 493,848 $ 890,152 $ (116,415 ) $ 773,737 Reclassification adjustment for (gains) included in net earnings (67,102 ) 14,092 (53,010 ) (89,262 ) 18,745 (70,517 ) Total other comprehensive earnings $ 484,038 $ (43,200 ) $ 440,838 $ 800,890 $ (97,670 ) $ 703,220 Nine-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 2,836,794 $ (256,869 ) $ 2,579,925 $ 4,333,205 $ (721,632 ) $ 3,611,573 Reclassification adjustment for (gains) included in net earnings (411,651 ) 86,447 (325,204 ) (238,405 ) 50,065 (188,340 ) Total other comprehensive earnings $ 2,425,143 $ (170,422 ) $ 2,254,721 $ 4,094,800 $ (671,567 ) $ 3,423,233 The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Three-Month Periods Ended Nine-Month Periods Ended Details about Accumulated Other September 30, September 30, Affected Line Item in the Statement Comprehensive Earnings Component 2020 2019 2020 2019 where Net Earnings is Presented Unrealized (gains) losses on AFS investments: $ (67,102 ) $ (89,262 ) $ (411,651 ) $ (238,405 ) Net realized investment (gains) losses 14,092 18,745 86,447 50,065 Income tax expense (benefit) Total reclassification adjustment, net of tax $ (53,010 ) $ (70,517 ) $ (325,204 ) $ (188,340 ) |
Risk And Uncertainties [Policy Text Block] | G. RISKS AND UNCERTAINTIES Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. The COVID- 19 19 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of September 30, December 31, 2020 2019 Automobiles $ 530,722 $ 505,788 Furniture and fixtures 474,401 457,218 Computer equipment and software 3,917,136 3,823,416 Home office 3,878,909 3,866,632 Total cost 8,801,168 8,653,054 Accumulated depreciation (5,949,933 ) (5,619,706 ) Net property and equipment $ 2,851,235 $ 3,033,348 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Nine-Month Periods Ended September 30, 2020 2019 Beginning balance $ 2,953,936 $ (1,580,976 ) Cumulative effect of adoption of ASU 2016-01 - 1,366,297 Adjusted beginning balance 2,953,936 (214,679 ) Other comprehensive earnings before reclassification 2,579,925 3,611,573 Amount reclassified from accumulated other comprehensive earnings (325,204 ) (188,340 ) Net current period other comprehensive earnings 2,254,721 3,423,233 Ending balance $ 5,208,657 $ 3,208,554 |
Comprehensive Income (Loss) [Table Text Block] | Three-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 551,140 $ (57,292 ) $ 493,848 $ 890,152 $ (116,415 ) $ 773,737 Reclassification adjustment for (gains) included in net earnings (67,102 ) 14,092 (53,010 ) (89,262 ) 18,745 (70,517 ) Total other comprehensive earnings $ 484,038 $ (43,200 ) $ 440,838 $ 800,890 $ (97,670 ) $ 703,220 Nine-Month Periods Ended September 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) earnings, net of tax Unrealized gains and losses on AFS investments: Unrealized holding gains arising during the period $ 2,836,794 $ (256,869 ) $ 2,579,925 $ 4,333,205 $ (721,632 ) $ 3,611,573 Reclassification adjustment for (gains) included in net earnings (411,651 ) 86,447 (325,204 ) (238,405 ) 50,065 (188,340 ) Total other comprehensive earnings $ 2,425,143 $ (170,422 ) $ 2,254,721 $ 4,094,800 $ (671,567 ) $ 3,423,233 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amounts Reclassified from Accumulated Other Comprehensive Earnings Three-Month Periods Ended Nine-Month Periods Ended Details about Accumulated Other September 30, September 30, Affected Line Item in the Statement Comprehensive Earnings Component 2020 2019 2020 2019 where Net Earnings is Presented Unrealized (gains) losses on AFS investments: $ (67,102 ) $ (89,262 ) $ (411,651 ) $ (238,405 ) Net realized investment (gains) losses 14,092 18,745 86,447 50,065 Income tax expense (benefit) Total reclassification adjustment, net of tax $ (53,010 ) $ (70,517 ) $ (325,204 ) $ (188,340 ) |
Note 2 - Investments (Tables)
Note 2 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Realized Gain (Loss) [Table Text Block] | For the Three-Months Ended September 30, Net Realized Proceeds Gains Losses Gains (Losses) 2020 Fixed maturity securities $ 3,428,951 $ 67,102 $ — $ 67,102 Common stocks 986,939 93,984 (226,398 ) (132,414 ) Preferred stocks 76,500 5,979 — 5,979 2019 Fixed maturity securities $ 5,771,988 $ 99,445 $ (10,183 ) $ 89,262 Common stocks 1,320,803 185,319 (133,100 ) 52,219 For the Nine-Months Ended September 30, Net Realized Proceeds Gains Losses Gains (Losses) 2020 Fixed maturity securities $ 12,813,180 $ 412,577 $ (926 ) $ 411,651 Common stocks 4,247,936 470,406 (1,282,423 ) (812,017 ) Preferred stocks 221,990 8,808 (10,762 ) (1,954 ) 2019 Fixed maturity securities $ 19,522,461 $ 264,737 $ (26,332 ) $ 238,405 Common stocks 5,998,276 960,420 (457,702 ) 502,718 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Cost Fair Value Due in one year or less $ 1,275,943 $ 1,305,900 Due after one year through five years 18,436,788 19,612,776 Due after five years through 10 years 16,366,929 18,431,137 Due after 10 years 21,586,567 23,678,509 Asset and mortgage backed securities without a specific due date 38,843,607 40,057,464 Redeemable preferred stocks 215,805 232,699 Total fixed maturity securities $ 96,725,639 $ 103,318,485 |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2020 Fixed maturity securities: U.S. Treasury $ 1,352,935 $ 1,390,344 $ 37,491 $ (82 ) MBS/ABS/CMBS 38,843,607 40,057,464 1,354,537 (140,680 ) Corporate 38,295,706 42,339,992 4,141,760 (97,474 ) Municipal 18,017,586 19,297,986 1,288,389 (7,989 ) Redeemable preferred stock 215,805 232,699 16,894 — Total fixed maturity securities $ 96,725,639 $ 103,318,485 $ 6,839,071 $ (246,225 ) Gross Unrealized Amortized Cost Fair Value Gains Losses 2019 Fixed maturity securities: U.S. Treasury $ 800,462 $ 800,219 $ 684 $ (927 ) MBS/ABS/CMBS 33,802,911 34,290,995 540,743 (52,659 ) Corporate 39,442,202 41,915,103 2,482,378 (9,477 ) Municipal 14,302,840 15,081,255 808,081 (29,666 ) Total fixed maturity securities $ 88,348,415 $ 92,087,572 $ 3,831,886 $ (92,729 ) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block] | September 30, 2020 December 31, 2019 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total Fixed Maturity Securities: U.S. Treasury Fair value $ 300,000 $ — $ 300,000 $ — $ 699,391 $ 699,391 Amortized cost 300,082 — 300,082 — 700,318 700,318 Unrealized loss (82 ) — (82 ) — (927 ) (927 ) MBS/ABS/CMBS Fair value 11,438,192 2,014,666 13,452,858 6,398,581 5,056,732 11,455,313 Amortized cost 11,556,312 2,037,226 13,593,538 6,420,488 5,087,484 11,507,972 Unrealized loss (118,120 ) (22,560 ) (140,680 ) (21,907 ) (30,752 ) (52,659 ) Corporate Fair value 1,075,259 — 1,075,259 1,396,706 — 1,396,706 Amortized cost 1,172,733 — 1,172,733 1,406,183 — 1,406,183 Unrealized loss (97,474 ) — (97,474 ) (9,477 ) — (9,477 ) Municipal Fair value 491,160 — 491,160 1,969,468 — 1,969,468 Amortized cost 499,149 — 499,149 1,999,134 — 1,999,134 Unrealized loss (7,989 ) — (7,989 ) (29,666 ) — (29,666 ) Total Fair value 13,304,611 2,014,666 15,319,277 9,764,755 5,756,123 15,520,878 Amortized cost 13,528,276 2,037,226 15,565,502 9,825,805 5,787,802 15,613,607 Unrealized loss $ (223,665 ) $ (22,560 ) $ (246,225 ) $ (61,050 ) $ (31,679 ) $ (92,729 ) |
Note 3 - Fair Value Disclosur_2
Note 3 - Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 1,390,344 $ — $ — $ 1,390,344 MBS/ABS/CMBS — 40,057,464 — 40,057,464 Corporate — 42,339,992 — 42,339,992 Municipal — 19,297,986 — 19,297,986 Redeemable preferred stocks — 232,699 — 232,699 Total fixed maturity securities 1,390,344 101,928,141 — 103,318,485 Equity securities Common stocks 12,596,635 — — 12,596,635 Perpetual preferred stocks — 1,638,453 — 1,638,453 Total equity securities 12,596,635 1,638,453 — 14,235,088 Total marketable investments measured at fair value $ 13,986,979 $ 103,566,594 $ — $ 117,553,573 Significant Quoted in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total AFS securities Fixed maturity securities U.S. treasury $ 800,219 $ — $ — $ 800,219 MBS/ABS/CMBS — 34,290,995 — 34,290,995 Corporate — 41,915,103 — 41,915,103 Municipal — 15,081,255 — 15,081,255 Total fixed maturity securities 800,219 91,287,353 — 92,087,572 Equity securities Common stocks 14,448,773 — — 14,448,773 Total marketable investments measured at fair value $ 15,248,992 $ 91,287,353 $ — $ 106,536,345 |
Note 5 - Reinsurance (Tables)
Note 5 - Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Effects of Reinsurance [Table Text Block] | Three-Month Periods Ended September 30, 2020 2019 WRITTEN Direct $ 14,534,058 $ 16,305,222 Reinsurance assumed 51,551 70,200 Reinsurance ceded (2,328,734 ) (2,410,170 ) Net $ 12,256,875 $ 13,965,252 EARNED Direct $ 14,825,942 $ 16,007,232 Reinsurance assumed 51,108 64,863 Reinsurance ceded (2,344,083 ) (2,392,349 ) Net $ 12,532,967 $ 13,679,746 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 10,536,397 $ 13,034,216 Reinsurance assumed 6,073 36,297 Reinsurance ceded (1,679,417 ) (3,461,166 ) Net $ 8,863,053 $ 9,609,347 Nine-Month Periods Ended September 30, 2020 2019 WRITTEN Direct $ 44,240,437 $ 48,349,466 Reinsurance assumed 114,924 178,446 Reinsurance ceded (7,921,708 ) (7,730,458 ) Net $ 36,433,653 $ 40,797,454 EARNED Direct $ 44,710,106 $ 46,710,351 Reinsurance assumed 116,404 174,583 Reinsurance ceded (7,904,808 ) (7,665,052 ) Net $ 36,921,702 $ 39,219,882 LOSSES AND SETTLEMENT EXPENSES INCURRED Direct $ 37,370,896 $ 37,778,378 Reinsurance assumed 44,409 119,498 Reinsurance ceded (11,501,686 ) (9,780,507 ) Net $ 25,913,619 $ 28,117,369 |
Note 6 - Unpaid Losses and Se_2
Note 6 - Unpaid Losses and Settlement Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | For the Three-Months Ended September 30, (In thousands) 2020 2019 Unpaid losses and settlement expense - beginning of the period: Gross $ 66,415 $ 61,264 Less: Ceded 19,463 13,974 Net 46,952 47,290 Increase in incurred losses and settlement expense: Current year 9,298 9,092 Prior years (435 ) 517 Total incurred 8,863 9,609 Deduct: Loss and settlement expense payments for claims incurred: Current year 4,885 6,064 Prior years 2,831 4,778 Total paid 7,716 10,842 Net unpaid losses and settlement expense - end of the period 48,099 46,057 Plus: Reinsurance recoverable on unpaid losses 13,844 12,266 Gross unpaid losses and settlement expense - end of the period $ 61,943 $ 58,323 For the Nine-Months Ended September 30, (In thousands) 2020 2019 Unpaid losses and settlement expense - beginning of the period: Gross $ 56,838 $ 51,447 Less: Ceded 11,036 6,736 Net 45,802 44,711 Increase in incurred losses and settlement expense: Current year 23,838 25,779 Prior years 2,076 2,338 Total incurred 25,914 28,117 Deduct: Loss and settlement expense payments for claims incurred: Current year 10,534 10,455 Prior years 13,083 16,316 Total paid 23,617 26,771 Net unpaid losses and settlement expense - end of the period 48,099 46,057 Plus: Reinsurance recoverable on unpaid losses 13,844 12,266 Gross unpaid losses and settlement expense - end of the period $ 61,943 $ 58,323 |
Note 7 - Income Taxes (Tables)
Note 7 - Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Three-Months Ended September 30, 2020 2019 Provision for income taxes at the statutory federal tax rates $ 105,820 $ (5,684 ) Increase (reduction) in taxes resulting from: Dividends received deduction (7,871 ) (8,955 ) Tax-exempt interest income (15,531 ) (16,433 ) Proration of tax-exempt interest and dividends received deduction 5,715 5,939 Nondeductible expenses 11,523 8,404 Officer life insurance, net 263 3,579 Total $ 99,919 $ (13,150 ) For the Nine-Months Ended September 30, 2020 2019 Provision for income taxes at the statutory federal tax rates $ (215,948 ) $ 176,341 Increase (reduction) in taxes resulting from: Dividends received deduction (21,567 ) (28,482 ) Tax-exempt interest income (46,795 ) (60,249 ) Proration of tax-exempt interest and dividends received deduction 16,683 21,775 Nondeductible expenses 25,751 24,450 Officer life insurance, net 896 (11,039 ) Total $ (240,980 ) $ 122,796 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Other Comprehensive Income (Loss) Taxes | $ 343,316 | $ 771,697 | ||
Geographic Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | ILLINOIS | ||||
Concentration Risk, Percentage | 22.70% | 22.30% | 25.00% | 25.80% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Cost | $ 8,801,168 | $ 8,653,054 |
Accumulated depreciation | (5,949,933) | (5,619,706) |
Net property and equipment | 2,851,235 | 3,033,348 |
Automobiles [Member] | ||
Cost | 530,722 | 505,788 |
Furniture and Fixtures [Member] | ||
Cost | 474,401 | 457,218 |
Computer Equipment [Member] | ||
Cost | 3,917,136 | 3,823,416 |
Home Office [Member] | ||
Cost | $ 3,878,909 | $ 3,866,632 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Accumulated Other Comprehensive Earnings (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | |||
Balance | $ 66,341,834 | $ 58,593,299 | ||
Balance | 68,032,876 | 62,941,961 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Balance | [1] | |||
AOCI Attributable to Parent [Member] | ||||
Balance | 2,953,936 | (1,580,976) | ||
Other comprehensive earnings before reclassification | 2,579,925 | 3,611,573 | ||
Amount reclassified from accumulated other comprehensive earnings | (325,204) | (188,340) | ||
Net current period other comprehensive earnings | 2,254,721 | 3,423,233 | ||
Balance | 5,208,657 | 3,208,554 | ||
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Balance | 1,366,297 | [1] | ||
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||||
Balance | $ 2,953,936 | $ (214,679) | ||
[1] | See discussion of Accounting Standards Update 2016-01 adoption in 2019 10-K, Note 1 - Summary of Significant Accounting Policies |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Other Comprehensive Earnings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unrealized holding gains arising during the period, pre-tax | $ 551,140 | $ 890,152 | $ 2,836,794 | $ 4,333,205 |
Reclassification adjustment for (gains) included in net earnings, pre-tax | (67,102) | (89,262) | (411,651) | (238,405) |
Total other comprehensive earnings, pre-tax | 484,038 | 800,890 | 2,425,143 | 4,094,800 |
Unrealized holding gains arising during the period, tax | (57,292) | (116,415) | (256,869) | (721,632) |
Reclassification adjustment for (gains) included in net earnings, tax | 14,092 | 18,745 | 86,447 | 50,065 |
Total other comprehensive earnings, tax | (43,200) | (97,670) | (170,422) | (671,567) |
Unrealized holding gains arising during the period, after-tax | 493,848 | 773,737 | 2,579,925 | 3,611,573 |
Reclassification adjustment for (gains) included in net earnings, after tax | (53,010) | (70,517) | (325,204) | (188,340) |
Total other comprehensive earnings, after-tax | $ 440,838 | $ 703,220 | $ 2,254,721 | $ 3,423,233 |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Reclassifications from Accumulated Other comprehensive Earnings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net realized investment losses (gains) | $ 59,333 | $ (141,481) | $ 402,320 | $ (741,123) |
Income Tax Expense (Benefit), Total | (99,919) | 13,150 | 240,980 | (122,796) |
Total reclassification adjustment, net of tax | (403,989) | 13,916 | 787,342 | (716,923) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Total reclassification adjustment, net of tax | (53,010) | (70,517) | (325,204) | (188,340) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||||
Net realized investment losses (gains) | (67,102) | (89,262) | (411,651) | (238,405) |
Income Tax Expense (Benefit), Total | $ 14,092 | $ 18,745 | $ 86,447 | $ 50,065 |
Note 2 - Investments (Details T
Note 2 - Investments (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale, Total | $ 103,318,485 | $ 103,318,485 | $ 92,087,572 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 22 | 22 | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | 4 | 4 | |||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 22,560 | $ 22,560 | 31,679 | ||
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings | 0 | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | 981,779 | $ (7,603) | 2,195 | $ 1,716,124 | |
Other Investments, Total | 305,000 | 305,000 | |||
Notes Issued on July 30, 2019 [Member] | |||||
Financing Receivable, after Allowance for Credit Loss, Total | 625,000 | $ 625,000 | |||
Financing Receivable, Interest Rate | 6.50% | ||||
Financing Receivable, Amortization Period (Year) | 20 years | ||||
Notes Issued on January 28, 2020 [Member] | |||||
Financing Receivable, after Allowance for Credit Loss, Total | 650,000 | $ 650,000 | |||
Financing Receivable, Interest Rate | 6.50% | ||||
Financing Receivable, Amortization Period (Year) | 20 years | ||||
Federal Home Loan Bank of Chicago [Member] | |||||
Federal Home Loan Bank Advances, Total | 200,000 | $ 200,000 | |||
Residential Mortgage Backed Securities [Member] | |||||
Debt Securities, Available-for-sale, Total | 13,590,690 | 13,590,690 | 9,909,462 | ||
Commercial Mortgage Backed Securities [Member] | |||||
Debt Securities, Available-for-sale, Total | $ 13,811,945 | $ 13,811,945 | $ 13,408,898 |
Note 2 - Investments - Summary
Note 2 - Investments - Summary of Proceeds from Investments and Related Gross Realized Gains and Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fixed Income Securities [Member] | ||||
Fixed maturity securities, proceeds | $ 3,428,951 | $ 5,771,988 | $ 12,813,180 | $ 19,522,461 |
Fixed maturity securities, realized gains | 67,102 | 99,445 | 412,577 | 264,737 |
Fixed maturity securities, realized losses | (10,183) | (926) | (26,332) | |
Fixed maturity securities, net realized gains (losses) | 67,102 | 89,262 | 411,651 | 238,405 |
Common Stock [Member] | ||||
Equity securities, proceeds | 986,939 | 1,320,803 | 4,247,936 | 5,998,276 |
Equity securities, realized gains | 93,984 | 185,319 | 470,406 | 960,420 |
Equity securities, realized losses | (226,398) | (133,100) | (1,282,423) | (457,702) |
Equity securities, net realized gains (losses) | (132,414) | $ 52,219 | (812,017) | 502,718 |
Preferred Stock [Member] | ||||
Equity securities, proceeds | 76,500 | 221,990 | ||
Equity securities, realized gains | 5,979 | 8,808 | ||
Equity securities, realized losses | (10,762) | |||
Equity securities, net realized gains (losses) | $ 5,979 | $ (1,954) |
Note 2 - Investments - Contract
Note 2 - Investments - Contractual Maturity of Fixed Income Securities (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Due in one year or less, amortized cost | $ 1,275,943 | |
Due in one year or less, fair value | 1,305,900 | |
Due after one year through five years, amortized cost | 18,436,788 | |
Due after one year through five years, fair value | 19,612,776 | |
Due after five years through 10 years, amortized cost | 16,366,929 | |
Due after five years through 10 years, fair value | 18,431,137 | |
Due after 10 years, amortized cost | 21,586,567 | |
Due after 10 years, fair value | 23,678,509 | |
Total fixed maturity securities, amortized cost | 96,725,639 | $ 88,348,415 |
Total fixed maturity securities, fair value | 103,318,485 | $ 92,087,572 |
Collateralized Mortgage Backed Securities [Member] | ||
Securities without a specific due date, amortized cost | 38,843,607 | |
Securities without a specific due date, fair value | 40,057,464 | |
Redeemable Preferred Stock [Member] | ||
Securities without a specific due date, amortized cost | 215,805 | |
Securities without a specific due date, fair value | 232,699 | |
Total fixed maturity securities, amortized cost | 215,805 | |
Total fixed maturity securities, fair value | $ 232,699 |
Note 2 - Investments - Schedule
Note 2 - Investments - Schedule of Cost or Amortized cost and Estimated Fair Values of Investments (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 96,725,639 | $ 88,348,415 |
Debt Securities, Available-for-sale, Total | 103,318,485 | 92,087,572 |
Gross Unrealized Gains | 6,839,071 | 3,831,886 |
Gross Unrealized Losses | (246,225) | (92,729) |
US Treasury Securities [Member] | ||
Amortized Cost | 1,352,935 | 800,462 |
Debt Securities, Available-for-sale, Total | 1,390,344 | 800,219 |
Gross Unrealized Gains | 37,491 | 684 |
Gross Unrealized Losses | (82) | (927) |
MBS/ABS/CMBS [Member] | ||
Amortized Cost | 38,843,607 | 33,802,911 |
Debt Securities, Available-for-sale, Total | 40,057,464 | 34,290,995 |
Gross Unrealized Gains | 1,354,537 | 540,743 |
Gross Unrealized Losses | (140,680) | (52,659) |
Corporate Debt Securities [Member] | ||
Amortized Cost | 38,295,706 | 39,442,202 |
Debt Securities, Available-for-sale, Total | 42,339,992 | 41,915,103 |
Gross Unrealized Gains | 4,141,760 | 2,482,378 |
Gross Unrealized Losses | (97,474) | (9,477) |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized Cost | 18,017,586 | 14,302,840 |
Debt Securities, Available-for-sale, Total | 19,297,986 | 15,081,255 |
Gross Unrealized Gains | 1,288,389 | 808,081 |
Gross Unrealized Losses | (7,989) | $ (29,666) |
Redeemable Preferred Stock [Member] | ||
Amortized Cost | 215,805 | |
Debt Securities, Available-for-sale, Total | 232,699 | |
Gross Unrealized Gains | 16,894 | |
Gross Unrealized Losses |
Note 2 - Investments - Fair Val
Note 2 - Investments - Fair Value of Securities in Unrealized Loss Position (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Fair value, less than 12 Months | $ 13,304,611 | $ 9,764,755 |
Fair value, 12 months or longer | 2,014,666 | 5,756,123 |
Fair value | 15,319,277 | 15,520,878 |
Amortized cost, less than 12 Months | 13,528,276 | 9,825,805 |
Amortized cost, 12 months or longer | 2,037,226 | 5,787,802 |
Amortized cost | 15,565,502 | 15,613,607 |
Unrealized loss, less than 12 Months | (223,665) | (61,050) |
Unrealized loss, 12 months or longer | (22,560) | (31,679) |
Unrealized loss | (246,225) | (92,729) |
US Treasury Securities [Member] | ||
Fair value, less than 12 Months | 300,000 | |
Fair value, 12 months or longer | 699,391 | |
Fair value | 300,000 | 699,391 |
Amortized cost, less than 12 Months | 300,082 | |
Amortized cost, 12 months or longer | 700,318 | |
Amortized cost | 300,082 | 700,318 |
Unrealized loss, less than 12 Months | (82) | |
Unrealized loss, 12 months or longer | (927) | |
Unrealized loss | (82) | (927) |
MBS/ABS/CMBS [Member] | ||
Fair value, less than 12 Months | 11,438,192 | 6,398,581 |
Fair value, 12 months or longer | 2,014,666 | 5,056,732 |
Fair value | 13,452,858 | 11,455,313 |
Amortized cost, less than 12 Months | 11,556,312 | 6,420,488 |
Amortized cost, 12 months or longer | 2,037,226 | 5,087,484 |
Amortized cost | 13,593,538 | 11,507,972 |
Unrealized loss, less than 12 Months | (118,120) | (21,907) |
Unrealized loss, 12 months or longer | (22,560) | (30,752) |
Unrealized loss | (140,680) | (52,659) |
Corporate Debt Securities [Member] | ||
Fair value, less than 12 Months | 1,075,259 | 1,396,706 |
Fair value, 12 months or longer | ||
Fair value | 1,075,259 | 1,396,706 |
Amortized cost, less than 12 Months | 1,172,733 | 1,406,183 |
Amortized cost, 12 months or longer | ||
Amortized cost | 1,172,733 | 1,406,183 |
Unrealized loss, less than 12 Months | (97,474) | (9,477) |
Unrealized loss, 12 months or longer | ||
Unrealized loss | (97,474) | (9,477) |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair value, less than 12 Months | 491,160 | 1,969,468 |
Fair value, 12 months or longer | ||
Fair value | 491,160 | 1,969,468 |
Amortized cost, less than 12 Months | 499,149 | 1,999,134 |
Amortized cost, 12 months or longer | ||
Amortized cost | 499,149 | 1,999,134 |
Unrealized loss, less than 12 Months | (7,989) | (29,666) |
Unrealized loss, 12 months or longer | ||
Unrealized loss | $ (7,989) | $ (29,666) |
Note 3 - Fair Value Disclosur_3
Note 3 - Fair Value Disclosures (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Note 3 - Fair Value Disclosur_4
Note 3 - Fair Value Disclosures - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed maturity securities | $ 103,318,485 | $ 92,087,572 |
Equity securities | 14,235,088 | |
Total marketable investments measured at fair value | 117,553,573 | 106,536,345 |
Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | 1,390,344 | 800,219 |
Equity securities | 12,596,635 | |
Total marketable investments measured at fair value | 13,986,979 | 15,248,992 |
Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | 101,928,141 | 91,287,353 |
Equity securities | 1,638,453 | |
Total marketable investments measured at fair value | 103,566,594 | 91,287,353 |
Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
Equity securities | ||
Total marketable investments measured at fair value | ||
US Treasury Securities [Member] | ||
Fixed maturity securities | 1,390,344 | 800,219 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | 1,390,344 | 800,219 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
MBS/ABS/CMBS [Member] | ||
Fixed maturity securities | 40,057,464 | 34,290,995 |
MBS/ABS/CMBS [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | ||
MBS/ABS/CMBS [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | 40,057,464 | 34,290,995 |
MBS/ABS/CMBS [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
Corporate Debt Securities [Member] | ||
Fixed maturity securities | 42,339,992 | 41,915,103 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | 42,339,992 | 41,915,103 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Fixed maturity securities | 19,297,986 | 15,081,255 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | 19,297,986 | 15,081,255 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
Redeemable Preferred Stock [Member] | ||
Fixed maturity securities | 232,699 | |
Redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed maturity securities | ||
Redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed maturity securities | 232,699 | |
Redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed maturity securities | ||
Common Stock [Member] | ||
Equity securities | 12,596,635 | 14,448,773 |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | 12,596,635 | 14,448,773 |
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities | ||
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities | ||
Preferred Stock [Member] | ||
Equity securities | 1,638,453 | |
Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | ||
Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities | 1,638,453 | |
Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities |
Note 4 - Debt (Details Textual)
Note 4 - Debt (Details Textual) - USD ($) | May 03, 2021 | Aug. 03, 2020 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 30, 2020 | Dec. 31, 2019 |
Proceeds from Issuance of Long-term Debt, Total | $ 11,629,800 | |||||||||
Long-term Debt, Total | $ 15,097,960 | $ 3,475,088 | ||||||||
Debt, Weighted Average Interest Rate | 1.50% | 3.70% | ||||||||
Revolving Credit Facility [Member] | American Bank & Trust [Member] | ||||||||||
Debt Instrument, Collateral Amount | $ 5,000,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,750,000 | |||||||||
Interest Expense, Total | $ 0 | $ 0 | ||||||||
Revolving Credit Facility [Member] | American Bank & Trust [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
Revolving Credit Facility [Member] | American Bank & Trust [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||||
Revolving Credit Facility [Member] | Quad City Bank & Trust [Member] | ||||||||||
Debt Instrument, Collateral Amount | $ 2,000,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 | |||||||||
Revolving Credit Facility [Member] | Quad City Bank & Trust [Member] | Prime Rate [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||
Paycheck Protection Program CARES Act [Member] | ||||||||||
Proceeds from Issuance of Long-term Debt, Total | $ 1,600,000 | |||||||||
Federal Home Loan Bank of Chicago [Member] | ||||||||||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $ 33,000,000 | |||||||||
Federal Home Loan Bank of Chicago [Member] | Federal Home Loan Bank Advances, One [Member] | ||||||||||
Debt Instrument, Term (Year) | 5 years | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.40% | |||||||||
Proceeds from FHLBank Borrowings, Financing Activities | $ 6,000,000 | |||||||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 6,800,000 | |||||||||
Federal Home Loan Bank of Chicago [Member] | Federal Home Loan Bank Advances, Two [Member] | ||||||||||
Debt Instrument, Term (Year) | 1 year | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |||||||||
Proceeds from FHLBank Borrowings, Financing Activities | $ 4,000,000 | |||||||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 7,400,000 | |||||||||
Federal Home Loan Bank of Chicago [Member] | Federal Home Loan Bank Advances, Three [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.74% | |||||||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 0 | |||||||||
Federal Home Loan Bank of Chicago [Member] | Federal Home Loan Bank Advances, Three [Member] | Forecast [Member] | ||||||||||
Proceeds from FHLBank Borrowings, Financing Activities | $ 4,000,000 | |||||||||
Loans Payable [Member] | ||||||||||
Debt Instrument, Face Amount | $ 3,500,000 | |||||||||
Debt Instrument, Term (Year) | 5 years | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | |||||||||
Debt Instrument, Collateral Amount | $ 1,000,000 |
Note 5 - Reinsurance (Details T
Note 5 - Reinsurance (Details Textual) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Casualty Business [Member] | |
Reinsurance Maximum Individual Risk | $ 1,000,000 |
Property [Member] | |
Reinsurance Maximum Individual Risk | 500,000 |
Workers' Compensation [Member] | |
Reinsurance Maximum Individual Risk | $ 500,000 |
Note 5 - Reinsurance - Summary
Note 5 - Reinsurance - Summary of Effects of Reinsurance (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Direct | $ 14,534,058 | $ 16,305,222 | $ 44,240,437 | $ 48,349,466 |
Reinsurance assumed | 51,551 | 70,200 | 114,924 | 178,446 |
Reinsurance ceded | (2,328,734) | (2,410,170) | (7,921,708) | (7,730,458) |
Net | 12,256,875 | 13,965,252 | 36,433,653 | 40,797,454 |
Direct | 14,825,942 | 16,007,232 | 44,710,106 | 46,710,351 |
Reinsurance assumed | 51,108 | 64,863 | 116,404 | 174,583 |
Reinsurance ceded | (2,344,083) | (2,392,349) | (7,904,808) | (7,665,052) |
Net | 12,532,967 | 13,679,746 | 36,921,702 | 39,219,882 |
Direct | 10,536,397 | 13,034,216 | 37,370,896 | 37,778,378 |
Reinsurance assumed | 6,073 | 36,297 | 44,409 | 119,498 |
Reinsurance ceded | (1,679,417) | (3,461,166) | (11,501,686) | (9,780,507) |
Net | $ 8,863,053 | $ 9,609,347 | $ 25,913,619 | $ 28,117,369 |
Note 6 - Unpaid Losses and Se_3
Note 6 - Unpaid Losses and Settlement Expenses (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease), Total | $ 2,042,000 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Percent Change | 4.40% | |||
Prior Year Claims and Claims Adjustment Expense | $ (435,000) | $ 517,000 | $ 2,076,000 | $ 2,338,000 |
Note 6 - Unpaid Losses and Se_4
Note 6 - Unpaid Losses and Settlement Expenses - Reconciliation of Unpaid Losses and Settlement Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unpaid losses and settlement expense - beginning of the period: | ||||
Gross | $ 66,415,000 | $ 61,264,000 | $ 56,838,307 | $ 51,447,000 |
Less: Ceded | 19,463,000 | 13,974,000 | 11,036,170 | 6,736,000 |
Net | 46,952,000 | 47,290,000 | 45,802,000 | 44,711,000 |
Increase in incurred losses and settlement expense: | ||||
Current year | 9,298,000 | 9,092,000 | 23,838,000 | 25,779,000 |
Prior years | (435,000) | 517,000 | 2,076,000 | 2,338,000 |
Total incurred | 8,863,000 | 9,609,000 | 25,914,000 | 28,117,000 |
Deduct: Loss and settlement expense payments for claims incurred: | ||||
Current year | 4,885,000 | 6,064,000 | 10,534,000 | 10,455,000 |
Prior years | 2,831,000 | 4,778,000 | 13,083,000 | 16,316,000 |
Total paid | 7,716,000 | 10,842,000 | 23,617,000 | 26,771,000 |
Net unpaid losses and settlement expense - end of the period | 48,099,000 | 46,057,000 | 48,099,000 | 46,057,000 |
Plus: Reinsurance recoverable on unpaid losses | 13,844,420 | 12,266,000 | 13,844,420 | 12,266,000 |
Gross unpaid losses and settlement expense - end of the period | $ 61,943,244 | $ 58,323,000 | $ 61,943,244 | $ 58,323,000 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 19.80% | 48.60% | 23.40% | 14.60% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||
Tax Credit Carryforward, Amount | $ 0 | $ 0 | $ 0 | ||
Operating Loss Carryforwards, Total | $ 0 | $ 0 | $ 0 |
Note 7 - Income Taxes - Schedul
Note 7 - Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Provision for income taxes at the statutory federal tax rates | $ 105,820 | $ (5,684) | $ (215,948) | $ 176,341 |
Increase (reduction) in taxes resulting from: | ||||
Dividends received deduction | (7,871) | (8,955) | (21,567) | (28,482) |
Tax-exempt interest income | (15,531) | (16,433) | (46,795) | (60,249) |
Proration of tax-exempt interest and dividends received deduction | 5,715 | 5,939 | 16,683 | 21,775 |
Nondeductible expenses | 11,523 | 8,404 | 25,751 | 24,450 |
Officer life insurance, net | 263 | 3,579 | 896 | (11,039) |
Total | 99,919 | (13,150) | (240,980) | 122,796 |
Provision for income taxes at the statutory federal tax rates | $ 105,820 | $ (5,684) | $ (215,948) | $ 176,341 |
Note 8 - Employee Benefits (Det
Note 8 - Employee Benefits (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares (in shares) | 350,000 | ||
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased (in dollars per share) | $ 10 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 0 | $ 0 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 206,535 | $ 233,135 | |
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares (in shares) | 17,546 | 17,530 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||
Share-based Payment Arrangement, Expense | $ 126,588 | $ 78,226 | |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 269,359 | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.33% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.33% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.33% | ||
Restricted Stock Units, One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 18,040 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.03 | ||
Restricted Stock Units, Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 13,071 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 13.70 | ||
Restricted Stock Units, Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 11,700 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 15.10 | ||
Committed on September 30, 2020 [Member] | |||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares (in shares) | 1,921 | ||
Committed on September 30, 2019 [Member] | |||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares (in shares) | 1,926 |