Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | ICC Holdings, Inc. | |
Entity Central Index Key | 1,681,903 | |
Trading Symbol | ICCH | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 3,150,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Available for sale securities, at fair value | |||
Fixed maturity securities (amortized cost - $66,483,930 at 3/31/2017 and $62,929,091 at 12/31/2016) | $ 67,684,804 | $ 64,134,023 | |
Available for sale securities | 12,019,839 | 9,780,960 | |
Property held for investment, at cost, net of accumulated depreciation of $65,259 at 3/31/2017 and $50,948 at 12/31/2016 | 2,199,760 | 2,207,424 | |
Cash and cash equivalents | 32,517,702 | 4,376,847 | |
Total investments and cash | 114,422,105 | 80,499,254 | |
Accrued investment income | 523,667 | 524,156 | |
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $50,000 at 3/31/2017 and 12/31/2016 | 17,495,767 | 17,479,487 | |
Ceded unearned premiums | 243,075 | 270,751 | |
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 3/31/2017 and 12/31/2016 | 9,472,625 | 12,114,998 | |
Current federal income taxes | 53,873 | 149,252 | |
Net deferred federal income taxes | 526,422 | 888,254 | |
Deferred policy acquisition costs, net | 4,335,085 | 4,162,927 | |
Property and equipment, at cost, net of accumulated depreciation of $4,414,058 at 3/31/2017 and $4,308,247 at 12/31/2016 | 3,737,076 | 3,719,535 | |
Other assets | 1,647,346 | 2,351,347 | |
Total assets | 152,457,041 | 122,159,961 | |
Liabilities: | |||
Unpaid losses and settlement expenses | 49,863,933 | 52,817,254 | |
Unearned premiums | 24,564,128 | 24,777,712 | |
Reinsurance balances payable | 154,968 | 109,790 | |
Corporate debt | 5,215,142 | 3,786,950 | |
Accrued expenses | 2,487,741 | 4,827,042 | |
Other liabilities | 6,530,493 | 2,241,003 | |
Total liabilities | 88,816,405 | 88,559,751 | |
Equity: | |||
Common stock | [1] | 35,000 | |
Additional paid-in capital | 32,587,566 | ||
Accumulated other comprehensive earnings, net of tax | 1,208,657 | 1,154,175 | |
Retained earnings | 33,295,079 | 32,446,035 | |
Less: Unearned Employee Stock Ownership Plan shares at cost | [2] | (3,485,666) | |
Total equity | 63,640,636 | 33,600,210 | |
Total liabilities and equity | 152,457,041 | 122,159,961 | |
Common Stock [Member] | |||
Available for sale securities, at fair value | |||
Available for sale securities | [3] | 8,355,129 | 6,982,547 |
Preferred Stock [Member] | |||
Available for sale securities, at fair value | |||
Available for sale securities | $ 3,664,710 | $ 2,798,413 | |
[1] | Par value $0.01; authorized: 2017 - 10,000,000 shares and 2016 - 0 shares; issued: 2017 - 3,500,000 and 2016 - 0 shares; outstanding: 2017 - 3,150,000 and 2016 - 0 shares. | ||
[2] | 2017 - 350,000 shares and 2016 - 0 shares | ||
[3] | Common stock securities consist of exchange trade funds (ETF) made up primarily of Dividends Select and the S&P 500. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fixed maturity securities, amortized cost | $ 66,483,930 | $ 62,929,091 |
Equity securities, amortized cost | 11,389,416 | 9,237,142 |
Property held for investment, accumulated depreciation | 65,259 | 50,948 |
Premiums and reinsurance balances receivable, allowances for uncollectible amounts | 50,000 | 50,000 |
Reinsurance balances recoverable on unpaid losses and settlement expenses, allowances for uncollectible amounts | 0 | 0 |
Property and equipment, at cost, accumulated depreciation | $ 4,414,058 | $ 4,308,247 |
Unearned ESOP shares (in shares) | 350,000 | 0 |
Common stock, par value | $ 0.01 | |
Common stock, shares authorized (in shares) | 10,000,000 | 0 |
Common stock, shares issued (in shares) | 3,500,000 | 0 |
Common stock, shares outstanding (in shares) | 3,150,000 | 0 |
Common Stock [Member] | ||
Equity securities, amortized cost | $ 7,718,532 | $ 6,311,708 |
Preferred Stock [Member] | ||
Equity securities, amortized cost | $ 3,670,884 | $ 2,925,434 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Condensed Consolidated Statements of Earnings and Comprehensive Earnings [Abstract] | |||
Net premiums earned | $ 10,838,106 | $ 10,290,762 | |
Net investment income | 472,324 | 347,826 | |
Net realized investment gains | 444,781 | 124,248 | |
Other income | 84,258 | 58,325 | |
Consolidated revenues | 11,839,469 | 10,821,161 | |
Losses and settlenment expenses | 6,599,384 | 6,379,496 | |
Policy acquisition costs | 3,734,652 | 3,531,980 | |
Interest expense on debt | 52,310 | 41,347 | |
General corporate expenses | 139,215 | 92,889 | |
Total expenses | 10,525,561 | 10,045,712 | |
Earnings before income taxes | 1,313,908 | 775,449 | |
Income tax expense: | |||
Current | 131,098 | 39,030 | |
Deferred income tax | 333,766 | 266,423 | |
Total income tax expense | 464,864 | 305,453 | |
Net earnings | 849,044 | 469,996 | |
Other comprehensive earnings, net of tax | 54,481 | 1,009,018 | |
Comprehensive earnings | $ 903,525 | $ 1,479,014 | |
Basic: | |||
Basic net earnings per share | [1] | $ 0.27 | $ 0.15 |
Diluted: | |||
Diluted net earnings per share | [1] | $ 0.27 | $ 0.15 |
Weighted average number of common shares outstanding: | |||
Basic | [2] | 3,150,000 | 3,150,000 |
Diluted | [2] | 3,150,000 | 3,150,000 |
[1] | The unaudited pro forma earnings per share for the three months ended March 31, 2016 is provided as a basis for comparison of current period earnings. | ||
[2] | Weighted average number of common shares outstanding for the three months ended March 31, 2016 is based off of the resulting shares from the initial public offering that was completed in March 2017 and are used to calculate the pro forma earnings per share for the three months ended March 31, 2016. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities | ||
Net earnings | $ 849,044 | $ 469,996 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities | ||
Net realized investment gains | (444,781) | (124,248) |
Depreciation | 216,554 | 180,431 |
Deferred income tax | 333,766 | 266,423 |
Amortization of bond premium and discount | 59,521 | 57,100 |
Change in: | ||
Accrued investment income | 489 | 109,460 |
Premiums and reinsurance balances receivable (net) | (16,280) | (3,479,388) |
Reinsurance balances payable | 45,178 | |
Ceded unearned premiums | 27,676 | (82,846) |
Reinsurance balances recoverable | 2,642,373 | (252,731) |
Deferred policy acquisition costs | (172,158) | (107,628) |
Accrued expenses | (2,339,301) | (1,429,665) |
Unpaid losses and settlement expenses | (2,953,321) | 373,130 |
Unearned premiums | (213,584) | (41,095) |
Current federal income tax | 95,379 | 39,030 |
Other | 1,151,454 | (1,080,010) |
Net cash provided by (used in) operating activities | (717,991) | (5,102,041) |
Purchases of: | ||
Fixed maturity securities, available-for-sale | (3,870,786) | (1,895,534) |
Property and equipment | (220,148) | (536,881) |
Property held for investment | (6,646) | (1,632,254) |
Proceeds from sales, maturities and calls of: | ||
Fixed maturity securities, available-for-sale | 3,507,897 | 6,177,479 |
Property and equipment | 365 | 8,300 |
Net cash (used in) provided by investing activities | (1,706,246) | 1,732,370 |
Cash flows from financing activities: | ||
Proceeds received from issuance of shares of common stock, net of offering | 29,136,900 | |
Proceeds from loan | 3,499,149 | |
Proceeds from sale leaseback | 777,643 | |
Proceeds from bank overdraft | 1,253,977 | |
Repayments of borrowed funds | (2,070,957) | (105,893) |
Net cash provided by financing activities | 30,565,092 | 1,925,727 |
Net increase (decrease) in cash and cash equivalents | 28,140,855 | (1,443,944) |
Cash and cash equivalents at beginning of year | 4,376,847 | 2,179,511 |
Cash and cash equivalents at end of year | 32,517,702 | 735,567 |
Supplemental information: | ||
Interest paid | 52,186 | 42,923 |
Non-cash transactions: | ||
Payable for securities purchased | 3,842,037 | |
Common Stock [Member] | ||
Purchases of: | ||
Equity securities, available-for-sale | (2,947,068) | $ (388,740) |
Proceeds from sales, maturities and calls of: | ||
Equity securities, available-for-sale | 1,955,715 | |
Preferred Stock [Member] | ||
Purchases of: | ||
Equity securities, available-for-sale | $ (125,575) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Not es to Unaudited Condensed Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. DESCRIPTION OF BUSINESS ICC Holdings, Inc. is a Pennsylvania corporation that was organized in 2016. As used in this Form 10-Q, references to “the Company,” “we,” “us,” and “our” refer to the consolidated group for the period after the completion of the stock conversion and refer to ICC and its subsidiaries for the period prior to the stock conversion. On a stand-alone basis ICC Holdings, Inc is referred to as the “Parent Company.” The consolidated group consists of the holding company, ICC Holdings, Inc., an operating insurance company, Illinois Casulaty Company (ICC), and ICC’s three wholly-owned subsidiaries, Beverage Insurance Agency, Inc., an inactive insurance agency, Estrella Innovative Solutions, Inc., an outsourcing company, and ICC Realty, LLC, a real estate services and holding company. ICC is an Illinois domiciled company. ICC Holdings, Inc. was formed so that it could acquire all of the capital stock of ICC in a mutual-to-stock conversion. The plan of conversion was approved by ICC policyholders at a special meeting on March 17, 2017. Simultaneously, surplus notes totaling $1.65 million were converted into 165,000 shares of the Company’s common stock. The Company’s offering closed on March 24, 2017, and o ur Employee Stock Ownership Plan (ESOP) purchased 350,000 of the shares in the offering. In order to complete the purchase of common shares, the ESOP borrowed money from ICC. ICC Holdings, Inc. secured a loan with American Bank & Trust in March 2017 and used the proceeds to repay ICC for the money borrowed by the ESOP. On March 28, 2017, the Company’s stocks began trading on the NASDAQ Capital Market under the “ICCH” ticker. The Company paid $978,150 of underwriting fees to Griffin Financial Group, LLC. Proceeds received from the offering net of offering costs and underwriting fees was $29. 1 million. Prior to the conversion on March 24, 2017, ICC Holdings, Inc did not engage in any operations. After the conversion, ICC Holdings, Inc’s primary assets are the outstanding capital stock of ICC and a portion of the net proceeds from the stock offering completed in connection with the mutual-to-stock conversion. On the effective date of the con version, ICC bec a me a wholly owned subsidiary of ICC Holdings, Inc. The mutual to stock conversion was accounted for as a change in corporate form with the historic basis of ICC’s assets, liabilities, and equity unchanged as a result. The condensed c onsolidated financial statements as of March 31, 2017 and for the three months then ended, include ICC Holdings and subsidiaries. The financial statements as of December 31, 2016, as of March 31, 2016, and for the three months ended March 31, 2016, represent ICC and its subsidiaries only, as the conversion to stock form was completed on March 24, 2017 . 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 Illinois, Iowa, Indiana, Minnesota, Missouri, Wisconsin, and Ohio and markets through independent agents. Approximately 35.9% and 39.2% of the premium is written in Illinois for the three months ended March 31, 2017 and 2016, respectively. ICC has three wholly owned subsidiaries, Beverage Insurance Agency, Estrella Innovative Solutions, Inc., and ICC Realty, LLC.; however the Company operates as a single segment. 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-Q. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2016 Annual Report on Form 10-K. The condensed consolidated balance sheet at December 31, 2016, was derived from the audited consolidated balance sheet of ICC as of that date. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2017, and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. 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 significant accounting policies in its Annual Report on Form 10-K for the year ended December 31, 2016. The following are new or revised disclosures. EMPLOYEE STOCK OWNERSHIP PLAN The Company recognizes compensation expense related to its employee stock ownership plan (ESOP) ratably 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 purposes of calculating earnings per share, the Company includes the weighted average of ESOP shares committed to be released for the period. The ESOP c overs executives, managers and associates. EARNINGS PER SHARE Basic and diluted earnings per share (EPS) are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. The denominator for basic and diluted EPS includes ESOP shares committed to be release. The unaudited pro forma earnings per share for the three months ended March 31, 2016 is provided to be used as a basis for comparison of current period earnings. The weighted average number of common shares outstanding for the three months ended March 31, 2016 is based off of the resulting shares from the initial public offering that was completed in March 2017. D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the Company’s 2016 Form 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies at a later date in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable. E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2017 and 2016, the Company recognized no impairments. Property and equipment are summarized as follows: As of March 31, December 31, 2017 2016 Automobiles $ 744,211 $ 668,794 Furniture and fixtures 432,179 516,318 Computer equipment and software 3,281,787 3,151,676 Home office 3,692,957 3,690,994 Total cost 8,151,134 8,027,782 Accumulated depreciation (4,414,058) (4,308,247) Net property and equipment $ 3,737,076 $ 3,719,535 F. COMPREHENSIVE EARNINGS Comprehensive earnings include net earnings plus unrealized gains and 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 34 percent tax rate. The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements. Three-Month Periods Ended March 31, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ 527,327 $ (179,291) $ 348,036 $ 1,653,064 $ (562,042) $ 1,091,022 Reclassification adjustment for (gains) losses included in net income (444,781) 151,226 (293,555) (124,248) 42,244 (82,004) Total other comprehensive (loss) earnings $ 82,546 $ (28,065) $ 54,481 $ 1,528,816 $ (519,798) $ 1,009,018 The following table provides the reclassifications out of accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2017 2016 where Net Earnings is Presented Unrealized gains on AFS investments: $ (444,781) $ (124,248) Net realized investment gains 151,226 42,244 Income tax expense Total reclassification adjustment, net of tax $ (293,555) $ (82,004) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | 2. INVESTMENTS The Company’s investments include fixed income debt securities and common and pref erred stock equity securities. All of the Company’s investments are presented 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 available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has no investment securities for which fair value is determined usin g Level 3 inputs as defined in Note 3 – Fair Value Disclosures . Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does not differ significantly from trade date accounting. The following is a summary of the proceeds from sales, maturities, and calls of available-for-sale securities and the related gross realized gains and losses for the three-months ended March 31 , 201 7 and 2016 . For the Three-Months Ended Ended March 31, Net realized Proceeds Gains Losses gain / (Loss) 2017 Fixed maturity securities $ 3,507,897 $ 29,328 $ (18) $ 29,310 Common stocks 1,955,715 415,471 — 415,471 2016 Fixed maturity securities $ 6,177,479 $ 124,251 $ (3) $ 124,248 The am ortized cost and estimated fair value of fixed income securities at March 31, 2017 , by contractual maturity, are show n as follows: Amortized Cost Fair Value Due in one year or less $ 1,002,040 $ 1,007,504 Due after one year through five years 17,204,823 17,632,613 Due after five years through 10 years 14,332,542 15,014,148 Due after 10 years 11,240,936 11,419,931 Asset and mortgage backed securities without a specific due date 22,703,589 22,610,608 Total fixed maturity securities $ 66,483,930 $ 67,684,804 Expected maturities may differ from contractual maturities due to call provisions on some existing securities. The following table is a schedule of cost or amortized cost and estimated fair values of investments in fixed income and equity securities as of March 31, 2017 and December 31, 201 6 : Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2017 Fixed maturity securities: U.S. treasury $ 1,345,335 $ 1,342,762 $ 2,466 $ (5,039) MBS/ABS/CMBS 22,703,589 22,610,608 168,126 (261,107) Corporate 26,227,525 26,984,615 827,528 (70,438) Municipal 16,207,481 16,746,819 659,592 (120,254) Total fixed maturity securities 66,483,930 67,684,804 1,657,712 (456,838) Equity securities: Common stocks 7,718,532 8,355,129 678,475 (41,878) Preferred stocks 3,670,884 3,664,710 41,864 (48,038) Total equity securities 11,389,416 12,019,839 720,339 (89,916) Total AFS securities $ 77,873,346 $ 79,704,643 $ 2,378,051 $ (546,754) Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2016 Fixed maturity securities: U.S. treasury $ 1,244,542 $ 1,241,125 $ 2,527 $ (5,944) MBS/ABS/CMBS 19,751,138 19,677,200 183,175 (257,113) Corporate 27,593,568 28,344,907 842,782 (91,443) Municipal 14,339,843 14,870,791 665,790 (134,842) Total fixed maturity securities 62,929,091 64,134,023 1,694,274 (489,342) Equity securities: Common stocks 6,311,708 6,982,547 704,768 (33,929) Preferred stocks 2,925,434 2,798,413 5,425 (132,446) Total equity securities 9,237,142 9,780,960 710,193 (166,375) Total AFS securities $ 72,166,233 $ 73,914,983 $ 2,404,467 $ (655,717) Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are residential mortgage backed securities with fair values of $13,517,204 and $10,288,405 and commercial mortgage backed securities of $7,560,031 and $7,600,109 at March 31, 2017 and December 31, 2016, respectively. ANALYSIS The following table is also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of March 31, 2017, and December 31, 201 6 . The table segregates the securities based on type, noting the fair value, cost (or amortized cost), and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position. March 31, 2017 December 31, 2016 12 Mos 12 Mos < 12 Mos. & Greater Total < 12 Mos. & Greater Total U.S. Treasury Fair value $ 994,547 $ — $ 994,547 $ 993,576 $ — $ 993,576 Cost or Amortized cost 999,586 — 999,586 999,520 — 999,520 Unrealized Loss (5,039) — (5,039) (5,944) — (5,944) MBS/ABS/CMBS Fair value 10,393,841 235,713 10,629,554 10,712,987 322,641 11,035,628 Cost or Amortized cost 10,654,350 236,311 10,890,661 10,968,840 323,901 11,292,741 Unrealized Loss (260,509) (598) (261,107) (255,853) (1,260) (257,113) Corporate Fair value 4,194,343 988,578 5,182,921 5,476,442 984,115 6,460,557 Cost or Amortized cost 4,253,949 999,410 5,253,359 5,552,624 999,376 6,552,000 Unrealized Loss (59,606) (10,832) (70,438) (76,182) (15,261) (91,443) Municipal Fair value 5,703,400 — 5,703,400 2,995,362 — 2,995,362 Cost or Amortized cost 5,823,654 — 5,823,654 3,130,204 — 3,130,204 Unrealized Loss (120,254) — (120,254) (134,842) — (134,842) Subtotal, fixed income Fair value 21,286,131 1,224,291 22,510,422 20,178,367 1,306,756 21,485,123 Cost or Amortized cost 21,731,539 1,235,721 22,967,260 20,651,188 1,323,277 21,974,465 Unrealized Loss (445,408) (11,430) (456,838) (472,821) (16,521) (489,342) Common Stock Fair value — 216,690 216,690 — 445,872 445,872 Cost or Amortized cost — 258,568 258,568 — 479,801 479,801 Unrealized Loss — (41,878) (41,878) — (33,929) (33,929) Preferred Stock Fair value 1,917,159 — 1,917,159 2,328,345 — — Cost or Amortized cost 1,965,197 — 1,965,197 2,460,791 — — Unrealized Loss (48,038) — (48,038) (132,446) — (132,446) Total Fair value 23,203,290 1,440,981 24,644,271 22,506,712 1,752,628 24,259,340 Cost or amortized cost 23,696,736 1,494,289 25,191,025 23,111,979 1,803,078 24,915,057 Unrealized Loss $ (493,446) $ (53,308) $ (546,754) $ (605,267) $ (50,450) $ (655,717) As of Marc h 31, 2017, the Company held 14 common equity and preferred stock securities in an unrealized loss position. Of these 14 securities, one has been in an unrealized loss position for 12 consecutive months or longer and represents $41,878 in unrealized losses. As of December 31, 2016, the Company held 21 equity securities that were in unrealized loss positions. Of these 21 securities, two were in an unrealized loss position for 12 consecutive months or longer and represented $33,929 in unrealized losses. The fixed income portfolio contained 57 securities in an unrealized loss position as of March 31, 2017. Of these 57 securities, four have been in an unrealized loss position for 12 consecutive months or longer and represent $11,430 in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management’s analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest. There were no other-than-temporary impairment losses recognized in other comprehensive earnings in the periods presented. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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 levels of inputs that may be used to measure fair value. 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 is applied to valuations based on readily available, unadjusted quoted prices in active markets for identical assets. · Level 2 is applied to valuations based upon quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data. · Level 3 is applied to valuations that are derived from techniques in which one or more of the significant inputs are unobservable. Financial assets are classified based upon the lowest level of significant input that is used to determine fair value. As a part of the process to determine fair value, management utilizes widely recognized, third-party pricing sources to determine fair values. Management has obtained an understanding of the third-party pricing sources’ valuation methodologies and inputs. The following is a description of the valuation techniques used for financial assets that are measured at fair value, including the general classification of such assets pursuant to the fair value hierarchy. Corporate, Agencies, and Municipal Bonds — The pricing vendor employs a multi-dimensional model which uses standard inputs including (listed in order of priority for use) benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers and other reference data. The pricing vendor also monitors market indicators, as well as industry and economic events. All bonds valued using these techniques are classified as Level 2. All Corporate, Agencies, and Municipal securities are deemed Level 2. Mortgage-backed Securities (MBS)/Collateralized Mortgage Obligations (CMO) an d Asset-backed Securities (ABS)— The pricing vendor evaluation methodology includes principally interest rate movements and new issue data. Evaluation of the tranches (non-volatile, volatile, or credit sensitivity) is based on the pricing vendors’ interpretation of accepted modeling and pricing conventions. This information is then used to determine the cash flows for each tranche, benchmark yields, pre-payment assumptions and to incorporate collateral performance. To evaluate CMO volatility, an option adjusted spread model is used in combination with models that simulate interest rate paths to determine market price information. This process allows the pricing vendor to obtain evaluations of a broad universe of securities in a way that reflects changes in yield curve, index rates, implied volatility, mortgage rates, and recent trade activity. MBS/CMO and ABS with corroborated and observable inputs are classified as Level 2. All MBS/CMO and ABS holdings are deemed Level 2. U.S. Treasury Bonds , Common Stocks and Exchange Traded Funds — U.S. treasury bonds and exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices). All common stock holdings are deemed Level 1. Preferred Stock — Preferred stocks do not have readily observable prices, but do have quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices and are classified as Level 2. All preferred stock holdings are deemed Level 2. Due to the relatively short-term nature of cash, cash equivalents, and the mortgage on the home office, their carrying amounts are reasonable estimates of fair value. Reported in Note 4–Debt , t he surp lus notes, capital lease obligations, and other debt obligations are carried at face value and given that there is no readily available market for these to trade in, management believes that face value accurately reflects fair value. Cash and cash equivalents are classified as Level 1 of the hierarchy. The mortgage on the home office and the surplus notes are carried at Level 2 of the hierarchy. Asset s measured at fair value on a recurring basis as of March 31, 2017 , are as summarized below: 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 $ 1,342,762 $ — $ — $ 1,342,762 MBS/ABS/CMBS — 22,610,608 — 22,610,608 Corporate — 26,984,615 — 26,984,615 Municipal — 16,746,819 — 16,746,819 Total fixed maturity securities 1,342,762 66,342,042 — 67,684,804 Equity securities Common stocks 8,355,129 — — 8,355,129 Preferred stocks — 3,664,710 — 3,664,710 Total equity securities 8,355,129 3,664,710 — 12,019,839 Total AFS securities $ 9,697,891 $ 70,006,752 $ — $ 79,704,643 Assets measured at fair value on a recurri ng basis as of December 31, 2016 , are as summarized below: 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 $ 1,241,125 $ — $ — $ 1,241,125 MBS/ABS/CMBS — 19,677,200 — 19,677,200 Corporate — 28,344,907 — 28,344,907 Municipal — 14,870,791 — 14,870,791 Total fixed maturity securities 1,241,125 62,892,898 — 64,134,023 Equity securities Common stocks 6,982,547 — — 6,982,547 Preferred stocks — 2,798,413 — 2,798,413 Total equity securities 6,982,547 2,798,413 — 9,780,960 Total AFS seuciriteis $ 8,223,672 $ 65,691,311 $ — $ 73,914,983 As noted in the previous tables, the Company did not have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2017, and December 31, 201 6 . Additionally, there were no secur ities transferred in or out of L evels 1 or 2 during the three -month periods ended March 31, 2017 and 201 6 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt [Abstract] | |
Debt | 4. DEBT As of March 31, 2017 and December 31, 2016, outstanding debt balances totaled $5,215,142 and $3,786,950 , respectively. The Company incurred interest expense for the three-month periods ended March 31, 2017, and 2016, of $52,310 and $41,347 , respectively. The average rate on remaining debt was 4 .0% as of March 31, 2017, compared to 5.0% as of December 31, 2016 . Long-term d ebt consists of the following as of the periods referenced below: March 31, December 31, 2017 2016 Surplus notes $ — $ 1,850,000 Capital lease obligation 1,123,759 1,227,541 Debt obligation 3,986,018 525,619 Home office mortgage 105,365 183,790 Total $ 5,215,142 $ 3,786,950 Surplus Notes ICC’s Plan of Conversion from a mutual to a stock company was approved by ICC policyholders at a special meeting on March 17, 2017. Simultaneously, surplus notes totaling $1.65 million, representing all outstanding surplus notes as of that date were converted into 165,000 shares of the Company’s common stock. Leasehold Obligation The Company entered into a sale leaseback arrangement in 2016 that is accounted for as a capital lease. Under the agreement, Bofi Federal Bank purchased electronic data processing software, vehicles, and other assets which are leased to the Company. These assets remain on the Company’s books due to provisions within the agreement that trigger capital lease accounting. To secure the lowest rate possible of 4.7% , the Company pledged additional bonds totaling $860,969 during 2016, bringing the total pledged to $1,808,523 as of March 31, 2017, and December 31, 2016, respectively. There was no gain or loss recognized as part of this transaction. Lease payments totaled $125,494 and $62,111 for the three months ended March 31, 2017 and 2016, respectively. The term of the electronic data processing lease is 48 months and the term of the titled vehicles lease is 36 months. The outstanding lease obligation at March 31, 2017 was $1,123,759 compared to $1,227,541 at Decemeber 31, 2016. Debt Obligation The Company entered into a debt agreement in 2017 for $3,500,000 with American Bank & Trust to fund the purchase of the ESOP shares. The term of the loan is five years bearing interest at 3.65% . The Company pledged the ESOP shares and $1.5 million of trust assets as collateral for the loan. Additionally, the Company entered into two debt agreements in 2016 with Bofi Federal Bank; one agreement for $500,000 and another debt agreement for $75,000 . The terms of the loans are 36 months, but the Company has the option to prepay the $500,000 loan after 12 months. The total balance of the debt agreements at March 31, 2017 and December 31, 2016 was $3,986,018 and $525,619 , respectively. The loans bear interest at 4.7% . Interest paid for the three months ended March 31, 2017 was $7,544 . There were no borrowings and there was no interest paid on the line of credit for the three months ended March 31, 2016. Home Office Mortgage The Company maintains a mortgage on its home office. Interest is charged at a fixed rate of 2.6% and the loan matures in 2017 . The building is used as collateral to secure the loan. The loan balance at March 31, 2017 and December 31, 2016 was $105,365 and $183,790 , respectively. The interest paid on the loan during the three months ended March 31, 2017 and 2016, was $997 and $3,040 , respectively. Revolving Line of Credit We maintain a revolving line of credit with American Bank & Trust, which permits borrowing up to an aggregate principal amount of $1.75 million. This facility was entered into during 2013 and is renewed annually with a current expiration of August 1, 2017 . The line of credit is priced at 30 day LIBOR plus 2% with a floor of 3.5% . There was no interest paid on the line of credit during the three months ended March 31, 2017 and 2016. There are no financial covenants governing this agreement. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance [Abstract] | |
Reinsurance | 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 occurrence or event. The arrangements allow the Company to pursue greater diversification of business and serve to limit the maximum net loss to a single event, such as a catastrophe. Through the quantification of exposed policy limits in each region and the extensive use of computer-assisted modeling techniques, management monitors the concentration of risks exposed to catastrophic events. Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $ 500,000 , although certain treaties contain an annual aggregate deductible before reinsurance applies. Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows: Three-Month Periods Ended March 31, 2017 2016 WRITTEN Direct $ 12,588,591 $ 12,077,065 Reinsurance assumed 39,836 45,720 Reinsurance ceded (1,976,230) (1,955,964) Net $ 10,652,197 $ 10,166,821 EARNED Direct $ 12,792,794 $ 12,104,517 Reinsurance assumed 49,218 59,364 Reinsurance ceded (2,003,906) (1,873,119) Net $ 10,838,106 $ 10,290,762 LOSSES AND SETTLEMENT EXPENSES INCURRED Direct $ 7,869,502 $ 11,289,354 Reinsurance assumed 42,432 22,599 Reinsurance ceded (1,312,550) (4,932,457) Net $ 6,599,384 $ 6,379,496 |
Unpaid Losses and Settlement Ex
Unpaid Losses and Settlement Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Unpaid Losses and Loss Adjustment Expenses | 6. UNPAID LOSSES AND SETTLEMENT EXPENSES The following table is a reconciliation of the Company’s unpaid loss es and settlement expenses : For the periods ending March 31, March 31, (In thousands) 2017 2016 Unpaid losses and settlement expense - beginning of the period: Gross $ 52,817 $ 61,056 Less: Ceded 12,115 19,158 Net 40,702 41,898 Increase (decrease) in incurred losses and settlement expense: Current year 6,893 6,504 Prior years (294) (125) Total incurred 6,599 6,379 Deduct: Loss and settlement expense payments for claims incurred: Current year 1,974 795 Prior years 4,936 5,501 Total paid 6,910 6,296 Net unpaid losses and settlement expense - end of the period 40,391 41,981 Plus: Reinsurance recoverable on unpaid losses 9,473 19,448 Gross unpaid losses and settlement expense - end of the period $ 49,864 $ 61,429 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 7. INCOME TAXES The Company’s effective tax rate for the three month period ended March 31 , 201 7 , was 35.4% , compared to 39.4% for the same period in 201 6. Effective rates are dependent upon components of pretax earnings and the related tax effects. Income tax expense for the three-month periods ended March 31 , 201 7 and 201 6 , differed from the amounts computed by applying the U.S. federal tax rate of 34 % to pretax income from continuing operations as demonstrated in the following tables: For the Three-Months Ended Ended March 31, 2017 2016 Provision for income taxes at the statutory federal tax rates $ 446,729 $ 263,653 Increase (reduction) in taxes resulting from: Dividends received deduction (9,104) — Tax-exempt interest income (40,338) (43,665) 15% proration of tax exempt interest and dividends received decution 7,416 6,550 Officer life insurance, net 5,003 5,794 Nondeductible expenses 8,811 10,220 Prior year true-ups and other 46,347 62,901 Total $ 464,864 $ 305,453 The Company has recorded its deferred tax assets and liabilities using the statutory federal tax rate of 34 % . Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset. In addition, it is believed that when these deferred items reverse in future years, taxable income will be taxed at an effective rate of 34 % . As of March 31, 2017 and December 31, 201 6 , the Company does not have any capital or operating loss carryforwards. Periods still subject to Internal Revenue Service (IRS) audit include 201 3 through current year. There are currently no open tax exams. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Employee Benefits [Abstract] | |
Employee Benefits | 8. EMPLOYEE BENEFITS ESOP In connection with our conversion and public offering, we establish an ESOP. The ESOP borrowed from the Company to purchase 350,000 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the shareholder’s equity section of the balance sheet for the unallocated shares at an amount equal to their $10.00 per share purchase price. The Company may make discretionary contributions to the ESOP and pay dividends on unallocated shares to the ESOP, the ESOP uses funds it receiveds to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation and expense is recorde d. No contributions to the ESOP were made during the three months ended March 31, 2017. A compensation expense charge is booked ratably during each year for the shares committed to be allocated to particpants 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 three months ended March 31, 2017, we recognized compensation expense of $22,111 related to 1,433 shares of our common stock that were committed to be released to partipants’ accounts at December 31, 2017. The committment to release these shares was recognized on March 31, 2017 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2017. |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2017 | |
Related Party [Abstract] | |
Related Party | 9. RELATED PARTY Mr. John R. Klocka u, a director of the Company, he ld two surplus note s from the Company totaling $1,150,000 which were converted into 115,000 shares of the Company’s common stock on March 17, 2017. John R. Klockau received a payment for interest on the surplus notes of $12,975 during the three months ended March 31, 2017. Additionally, Mr. Klockau is a claims consultant and was paid $2,470 and $2,585 as of March 31, 2017 and 2016, respectively, related to his services to the Company. Mr. Scott T. Burgess is a director of the Company and a Senior Managing Director of Griffin Financial Group (Griffin). Mr. Burgess was paid $841 and $0 as of March 31, 2017 and 2016, respectively. Griffin was paid $0 as of March 31, 2017 and 2016, respectively. Griffin and Stevens & Lee are affiliated. Stevens & Lee is a full-service law firm that was paid $893,240 and $17,950 as of March 31, 2017 and 2016, respectively. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | 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-Q. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2016 Annual Report on Form 10-K. The condensed consolidated balance sheet at December 31, 2016, was derived from the audited consolidated balance sheet of ICC as of that date. Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at March 31, 2017, and the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year. 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. |
Employee Stock Ownership Plan | EMPLOYEE STOCK OWNERSHIP PLAN The Company recognizes compensation expense related to its employee stock ownership plan (ESOP) ratably 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 purposes of calculating earnings per share, the Company includes the weighted average of ESOP shares committed to be released for the period. The ESOP c overs executives, managers and associates. |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per share (EPS) are calculated by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. The denominator for basic and diluted EPS includes ESOP shares committed to be release. The unaudited pro forma earnings per share for the three months ended March 31, 2016 is provided to be used as a basis for comparison of current period earnings. The weighted average number of common shares outstanding for the three months ended March 31, 2016 is based off of the resulting shares from the initial public offering that was completed in March 2017. |
Prospective Accounting Standards | D. PROSPECTIVE ACCOUNTING STANDARDS For information regarding accounting standards that the Company has not yet adopted, see the “Prospective Accounting Standards” in Note 1 – Summary of Significant Accounting Policies in the Company’s 2016 Form 10-K. The Company maintains its status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We have taken advantage of the extended transition period provided by Section 107 of the JOBS Act. We decided to comply with the effective dates for financial accounting standards applicable to emerging growth companies at a later date in compliance with the requirements in Sections 107(b)(2) and (3) of the JOBS Act. Such decision is irrevocable. |
Property and Equipment | E. PROPERTY AND EQUIPMENT Annually, the Company reviews the major asset classes of property and equipment held for impairment. For the periods ended March 31, 2017 and 2016, the Company recognized no impairments. Property and equipment are summarized as follows: As of March 31, December 31, 2017 2016 Automobiles $ 744,211 $ 668,794 Furniture and fixtures 432,179 516,318 Computer equipment and software 3,281,787 3,151,676 Home office 3,692,957 3,690,994 Total cost 8,151,134 8,027,782 Accumulated depreciation (4,414,058) (4,308,247) Net property and equipment $ 3,737,076 $ 3,719,535 |
Comprehensive Earnings | F. COMPREHENSIVE EARNINGS Comprehensive earnings include net earnings plus unrealized gains and 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 34 percent tax rate. The following table illustrates the components of other comprehensive earnings for each period presented in the condensed consolidated interim financial statements. Three-Month Periods Ended March 31, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ 527,327 $ (179,291) $ 348,036 $ 1,653,064 $ (562,042) $ 1,091,022 Reclassification adjustment for (gains) losses included in net income (444,781) 151,226 (293,555) (124,248) 42,244 (82,004) Total other comprehensive (loss) earnings $ 82,546 $ (28,065) $ 54,481 $ 1,528,816 $ (519,798) $ 1,009,018 The following table provides the reclassifications out of accumulated other comprehensive earnings for the periods presented: Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2017 2016 where Net Earnings is Presented Unrealized gains on AFS investments: $ (444,781) $ (124,248) Net realized investment gains 151,226 42,244 Income tax expense Total reclassification adjustment, net of tax $ (293,555) $ (82,004) |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Property, Plant and Equipment | As of March 31, December 31, 2017 2016 Automobiles $ 744,211 $ 668,794 Furniture and fixtures 432,179 516,318 Computer equipment and software 3,281,787 3,151,676 Home office 3,692,957 3,690,994 Total cost 8,151,134 8,027,782 Accumulated depreciation (4,414,058) (4,308,247) Net property and equipment $ 3,737,076 $ 3,719,535 |
Summary of Components of Other Comprehensive Earnings | Three-Month Periods Ended March 31, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive earnings (loss), net of tax Unrealized gains and losses on investments: Unrealized holding (losses) gains arising during the period $ 527,327 $ (179,291) $ 348,036 $ 1,653,064 $ (562,042) $ 1,091,022 Reclassification adjustment for (gains) losses included in net income (444,781) 151,226 (293,555) (124,248) 42,244 (82,004) Total other comprehensive (loss) earnings $ 82,546 $ (28,065) $ 54,481 $ 1,528,816 $ (519,798) $ 1,009,018 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnins | Amounts Reclassified from Accumulated Other Comprehensive Earnings Details about Accumulated Other Three-Month Periods Ended March 31, Affected Line Item in the Statement Comprehensive Earnings Component 2017 2016 where Net Earnings is Presented Unrealized gains on AFS investments: $ (444,781) $ (124,248) Net realized investment gains 151,226 42,244 Income tax expense Total reclassification adjustment, net of tax $ (293,555) $ (82,004) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Summary of Recognized Impairments | For the Three-Months Ended Ended March 31, Net realized Proceeds Gains Losses gain / (Loss) 2017 Fixed maturity securities $ 3,507,897 $ 29,328 $ (18) $ 29,310 Common stocks 1,955,715 415,471 — 415,471 2016 Fixed maturity securities $ 6,177,479 $ 124,251 $ (3) $ 124,248 |
Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity | Amortized Cost Fair Value Due in one year or less $ 1,002,040 $ 1,007,504 Due after one year through five years 17,204,823 17,632,613 Due after five years through 10 years 14,332,542 15,014,148 Due after 10 years 11,240,936 11,419,931 Asset and mortgage backed securities without a specific due date 22,703,589 22,610,608 Total fixed maturity securities $ 66,483,930 $ 67,684,804 |
Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments | Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2017 Fixed maturity securities: U.S. treasury $ 1,345,335 $ 1,342,762 $ 2,466 $ (5,039) MBS/ABS/CMBS 22,703,589 22,610,608 168,126 (261,107) Corporate 26,227,525 26,984,615 827,528 (70,438) Municipal 16,207,481 16,746,819 659,592 (120,254) Total fixed maturity securities 66,483,930 67,684,804 1,657,712 (456,838) Equity securities: Common stocks 7,718,532 8,355,129 678,475 (41,878) Preferred stocks 3,670,884 3,664,710 41,864 (48,038) Total equity securities 11,389,416 12,019,839 720,339 (89,916) Total AFS securities $ 77,873,346 $ 79,704,643 $ 2,378,051 $ (546,754) Cost or Gross Unrealized Amortized Cost Fair Value Gains Losses 2016 Fixed maturity securities: U.S. treasury $ 1,244,542 $ 1,241,125 $ 2,527 $ (5,944) MBS/ABS/CMBS 19,751,138 19,677,200 183,175 (257,113) Corporate 27,593,568 28,344,907 842,782 (91,443) Municipal 14,339,843 14,870,791 665,790 (134,842) Total fixed maturity securities 62,929,091 64,134,023 1,694,274 (489,342) Equity securities: Common stocks 6,311,708 6,982,547 704,768 (33,929) Preferred stocks 2,925,434 2,798,413 5,425 (132,446) Total equity securities 9,237,142 9,780,960 710,193 (166,375) Total AFS securities $ 72,166,233 $ 73,914,983 $ 2,404,467 $ (655,717) |
Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position | March 31, 2017 December 31, 2016 12 Mos 12 Mos < 12 Mos. & Greater Total < 12 Mos. & Greater Total U.S. Treasury Fair value $ 994,547 $ — $ 994,547 $ 993,576 $ — $ 993,576 Cost or Amortized cost 999,586 — 999,586 999,520 — 999,520 Unrealized Loss (5,039) — (5,039) (5,944) — (5,944) MBS/ABS/CMBS Fair value 10,393,841 235,713 10,629,554 10,712,987 322,641 11,035,628 Cost or Amortized cost 10,654,350 236,311 10,890,661 10,968,840 323,901 11,292,741 Unrealized Loss (260,509) (598) (261,107) (255,853) (1,260) (257,113) Corporate Fair value 4,194,343 988,578 5,182,921 5,476,442 984,115 6,460,557 Cost or Amortized cost 4,253,949 999,410 5,253,359 5,552,624 999,376 6,552,000 Unrealized Loss (59,606) (10,832) (70,438) (76,182) (15,261) (91,443) Municipal Fair value 5,703,400 — 5,703,400 2,995,362 — 2,995,362 Cost or Amortized cost 5,823,654 — 5,823,654 3,130,204 — 3,130,204 Unrealized Loss (120,254) — (120,254) (134,842) — (134,842) Subtotal, fixed income Fair value 21,286,131 1,224,291 22,510,422 20,178,367 1,306,756 21,485,123 Cost or Amortized cost 21,731,539 1,235,721 22,967,260 20,651,188 1,323,277 21,974,465 Unrealized Loss (445,408) (11,430) (456,838) (472,821) (16,521) (489,342) Common Stock Fair value — 216,690 216,690 — 445,872 445,872 Cost or Amortized cost — 258,568 258,568 — 479,801 479,801 Unrealized Loss — (41,878) (41,878) — (33,929) (33,929) Preferred Stock Fair value 1,917,159 — 1,917,159 2,328,345 — — Cost or Amortized cost 1,965,197 — 1,965,197 2,460,791 — — Unrealized Loss (48,038) — (48,038) (132,446) — (132,446) Total Fair value 23,203,290 1,440,981 24,644,271 22,506,712 1,752,628 24,259,340 Cost or amortized cost 23,696,736 1,494,289 25,191,025 23,111,979 1,803,078 24,915,057 Unrealized Loss $ (493,446) $ (53,308) $ (546,754) $ (605,267) $ (50,450) $ (655,717) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a recurring Basis | Asset s measured at fair value on a recurring basis as of March 31, 2017 , are as summarized below: 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 $ 1,342,762 $ — $ — $ 1,342,762 MBS/ABS/CMBS — 22,610,608 — 22,610,608 Corporate — 26,984,615 — 26,984,615 Municipal — 16,746,819 — 16,746,819 Total fixed maturity securities 1,342,762 66,342,042 — 67,684,804 Equity securities Common stocks 8,355,129 — — 8,355,129 Preferred stocks — 3,664,710 — 3,664,710 Total equity securities 8,355,129 3,664,710 — 12,019,839 Total AFS securities $ 9,697,891 $ 70,006,752 $ — $ 79,704,643 Assets measured at fair value on a recurri ng basis as of December 31, 2016 , are as summarized below: 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 $ 1,241,125 $ — $ — $ 1,241,125 MBS/ABS/CMBS — 19,677,200 — 19,677,200 Corporate — 28,344,907 — 28,344,907 Municipal — 14,870,791 — 14,870,791 Total fixed maturity securities 1,241,125 62,892,898 — 64,134,023 Equity securities Common stocks 6,982,547 — — 6,982,547 Preferred stocks — 2,798,413 — 2,798,413 Total equity securities 6,982,547 2,798,413 — 9,780,960 Total AFS seuciriteis $ 8,223,672 $ 65,691,311 $ — $ 73,914,983 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt [Abstract] | |
Schedule of Long-Term Debt | March 31, December 31, 2017 2016 Surplus notes $ — $ 1,850,000 Capital lease obligation 1,123,759 1,227,541 Debt obligation 3,986,018 525,619 Home office mortgage 105,365 183,790 Total $ 5,215,142 $ 3,786,950 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance [Abstract] | |
Summary of the Effects of Reinsurance | Three-Month Periods Ended March 31, 2017 2016 WRITTEN Direct $ 12,588,591 $ 12,077,065 Reinsurance assumed 39,836 45,720 Reinsurance ceded (1,976,230) (1,955,964) Net $ 10,652,197 $ 10,166,821 EARNED Direct $ 12,792,794 $ 12,104,517 Reinsurance assumed 49,218 59,364 Reinsurance ceded (2,003,906) (1,873,119) Net $ 10,838,106 $ 10,290,762 LOSSES AND SETTLEMENT EXPENSES INCURRED Direct $ 7,869,502 $ 11,289,354 Reinsurance assumed 42,432 22,599 Reinsurance ceded (1,312,550) (4,932,457) Net $ 6,599,384 $ 6,379,496 |
Unpaid Losses and Settlement 21
Unpaid Losses and Settlement Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense | For the periods ending March 31, March 31, (In thousands) 2017 2016 Unpaid losses and settlement expense - beginning of the period: Gross $ 52,817 $ 61,056 Less: Ceded 12,115 19,158 Net 40,702 41,898 Increase (decrease) in incurred losses and settlement expense: Current year 6,893 6,504 Prior years (294) (125) Total incurred 6,599 6,379 Deduct: Loss and settlement expense payments for claims incurred: Current year 1,974 795 Prior years 4,936 5,501 Total paid 6,910 6,296 Net unpaid losses and settlement expense - end of the period 40,391 41,981 Plus: Reinsurance recoverable on unpaid losses 9,473 19,448 Gross unpaid losses and settlement expense - end of the period $ 49,864 $ 61,429 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the Three-Months Ended Ended March 31, 2017 2016 Provision for income taxes at the statutory federal tax rates $ 446,729 $ 263,653 Increase (reduction) in taxes resulting from: Dividends received deduction (9,104) — Tax-exempt interest income (40,338) (43,665) 15% proration of tax exempt interest and dividends received decution 7,416 6,550 Officer life insurance, net 5,003 5,794 Nondeductible expenses 8,811 10,220 Prior year true-ups and other 46,347 62,901 Total $ 464,864 $ 305,453 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Narrative) (Details) | Mar. 28, 2017USD ($) | Mar. 17, 2017USD ($)shares | Mar. 31, 2017USD ($)entityshares | Mar. 31, 2016 | Mar. 24, 2017shares | Dec. 31, 2016shares |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Employee stock ownership plan, shares | shares | 350,000 | 350,000 | 0 | |||
Underwriting fees paid | $ 978,150 | |||||
Proceeds received from issuance of shares of common stock, net of offering | $ 29,136,900 | |||||
Federal tax rate | 34.00% | 34.00% | ||||
Illinois [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk | 35.90% | 39.20% | ||||
Illinois Casualty Company [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of subsidiaries | entity | 3 | |||||
Surplus Notes [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Notes converted | $ 1,650,000 | |||||
Debt converted, shares issued | shares | 165,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Summary of Property, Plant and Equipment) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 8,151,134 | $ 8,027,782 |
Accumulated depreciation | (4,414,058) | (4,308,247) |
Net property and equipent | 3,737,076 | 3,719,535 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 744,211 | 668,794 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 432,179 | 516,318 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 3,281,787 | 3,151,676 |
Home Office [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 3,692,957 | $ 3,690,994 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Summary of Components of Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | ||
Unrealized holding (losses) gains arising during the period, Pre-tax | $ 527,327 | $ 1,653,064 |
Reclassification adjustment for (gains) losses included in net income, Pre-tax | (444,781) | (124,248) |
Total other comprehensive (loss) earnings, Pre-tax | 82,546 | 1,528,816 |
Unrealized holding (losses) gains arising during the period, Tax | (179,291) | (562,042) |
Reclassification adjustment for (gains) losses included in net income, Tax | 151,226 | 42,244 |
Total other comprehensive (loss) earnings, Tax | (28,065) | (519,798) |
Unrealized holding (losses) gains arising during the period, After-tax | 348,036 | 1,091,022 |
Reclassification adjustment for (gains) losses included in net income, After-tax | (293,555) | (82,004) |
Other comprehensive income (loss) | $ 54,481 | $ 1,009,018 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Schedule of Reclassification Out of Accumulated Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gains | $ 444,781 | $ 124,248 |
Income tax expense | 464,864 | 305,453 |
Total reclassification adjustment, net of tax | (293,555) | (82,004) |
Unrealized Gains on AFS Investments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gains | (444,781) | (124,248) |
Income tax expense | $ 151,226 | $ 42,244 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)item | Dec. 31, 2016USD ($)item | |
Schedule of Available-for-sale Securities [Line Items] | ||
OTTI losses recognized in other comprehensive earnings | $ 0 | $ 0 |
Fair value | $ 79,704,643 | $ 73,914,983 |
Common Equity And Preferred Stock Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in an unrealized loss position | item | 14 | 21 |
Number of securities in an unrealized loss position for 12 consecutive months or longer | item | 1 | 2 |
Unrealized losses | $ 41,878 | $ 33,929 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in an unrealized loss position | item | 57 | |
Number of securities in an unrealized loss position for 12 consecutive months or longer | item | 4 | |
Unrealized losses | $ 11,430 | |
MBS/ABS/CMBS [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | 13,517,204 | 10,288,405 |
MBS/ABS/CMBS [Member] | Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value | $ 7,560,031 | $ 7,600,109 |
Investments (Summary of Recogni
Investments (Summary of Recognized Impairments) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fixed Maturity Securities [Member] | ||
Proceeds | $ 3,507,897 | $ 6,177,479 |
Gains | 29,328 | 124,251 |
Losses | (18) | (3) |
Net realized gain / (loss) | 29,310 | $ 124,248 |
Common Stocks [Member] | ||
Proceeds | 1,955,715 | |
Gains | 415,471 | |
Net realized gain / (loss) | $ 415,471 |
Investments (Summary of Amortiz
Investments (Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Due in one year or less, amortized cost | $ 1,002,040 | |
Due after one year through five years, amortized cost | 17,204,823 | |
Due after five years through 10 years, amortized cost | 14,332,542 | |
Due after 10 years, amortized cost | 11,240,936 | |
Asset and mortgage backed securities without a specific due date, amortized cost | 22,703,589 | |
Fixed maturity securities, amortized cost | 66,483,930 | $ 62,929,091 |
Due in one year or less, fair value | 1,007,504 | |
Due after one year through five years, fair value | 17,632,613 | |
Due after five years through 10 years, fair value | 15,014,148 | |
Due after 10 years, fair value | 11,419,931 | |
Asset and mortgage backed securities witout a specific due date, fair value | 22,610,608 | |
Fixed maturity securities, fair value | $ 67,684,804 | $ 64,134,023 |
Investments (Schedule of Cost o
Investments (Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | $ 66,483,930 | $ 62,929,091 |
Equity securities, amortized cost | 11,389,416 | 9,237,142 |
AFS securities, amortized cost | 77,873,346 | 72,166,233 |
Fixed maturity securities, fair value | 67,684,804 | 64,134,023 |
Equity securities, fair value | 12,019,839 | 9,780,960 |
AFS securities, fair value | 79,704,643 | 73,914,983 |
Fixed maturity securities, gross unrealized gains | 1,657,712 | 1,694,274 |
Equity securities, gross unrealized gains | 720,339 | 710,193 |
Total AFS securities, gross unrealized gains | 2,378,051 | 2,404,467 |
Fixed maturity securities, gross unrealized losses | (456,838) | (489,342) |
Equity securities, gross unrealized losses | (89,916) | (166,375) |
Total AFS securities, gross unrealized losses | (546,754) | (655,717) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 1,345,335 | 1,244,542 |
Fixed maturity securities, fair value | 1,342,762 | 1,241,125 |
Fixed maturity securities, gross unrealized gains | 2,466 | 2,527 |
Fixed maturity securities, gross unrealized losses | (5,039) | (5,944) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 22,703,589 | 19,751,138 |
Fixed maturity securities, fair value | 22,610,608 | 19,677,200 |
Fixed maturity securities, gross unrealized gains | 168,126 | 183,175 |
Fixed maturity securities, gross unrealized losses | (261,107) | (257,113) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 26,227,525 | 27,593,568 |
Fixed maturity securities, fair value | 26,984,615 | 28,344,907 |
Fixed maturity securities, gross unrealized gains | 827,528 | 842,782 |
Fixed maturity securities, gross unrealized losses | (70,438) | (91,443) |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 16,207,481 | 14,339,843 |
Fixed maturity securities, fair value | 16,746,819 | 14,870,791 |
Fixed maturity securities, gross unrealized gains | 659,592 | 665,790 |
Fixed maturity securities, gross unrealized losses | (120,254) | (134,842) |
Common Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities, amortized cost | 7,718,532 | 6,311,708 |
Equity securities, fair value | 8,355,129 | 6,982,547 |
Equity securities, gross unrealized gains | 678,475 | 704,768 |
Equity securities, gross unrealized losses | (41,878) | (33,929) |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities, amortized cost | 3,670,884 | 2,925,434 |
Equity securities, fair value | 3,664,710 | 2,798,413 |
Equity securities, gross unrealized gains | 41,864 | 5,425 |
Equity securities, gross unrealized losses | $ (48,038) | $ (132,446) |
Investments (Summary of Impairm
Investments (Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 23,203,290 | $ 22,506,712 |
Greater than 12 months, fair value | 1,440,981 | 1,752,628 |
Fair value | 24,644,271 | 24,259,340 |
Less than 12 months, amortized cost | 23,696,736 | 23,111,979 |
Greater than 12 months, amortized cost | 1,494,289 | 1,803,078 |
Amortized cost | 25,191,025 | 24,915,057 |
Less than 12 months, unrealized loss | (493,446) | (605,267) |
Greater than 12 months, unrealized loss | (53,308) | (50,450) |
Unrealized losses | (546,754) | (655,717) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 994,547 | 993,576 |
Greater than 12 months, fair value | ||
Fair value | 994,547 | 993,576 |
Less than 12 months, amortized cost | 999,586 | 999,520 |
Greater than 12 months, amortized cost | ||
Amortized cost | 999,586 | 999,520 |
Less than 12 months, unrealized loss | (5,039) | (5,944) |
Greater than 12 months, unrealized loss | ||
Unrealized losses | (5,039) | (5,944) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 10,393,841 | 10,712,987 |
Greater than 12 months, fair value | 235,713 | 322,641 |
Fair value | 10,629,554 | 11,035,628 |
Less than 12 months, amortized cost | 10,654,350 | 10,968,840 |
Greater than 12 months, amortized cost | 236,311 | 323,901 |
Amortized cost | 10,890,661 | 11,292,741 |
Less than 12 months, unrealized loss | (260,509) | (255,853) |
Greater than 12 months, unrealized loss | (598) | (1,260) |
Unrealized losses | (261,107) | (257,113) |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 4,194,343 | 5,476,442 |
Greater than 12 months, fair value | 988,578 | 984,115 |
Fair value | 5,182,921 | 6,460,557 |
Less than 12 months, amortized cost | 4,253,949 | 5,552,624 |
Greater than 12 months, amortized cost | 999,410 | 999,376 |
Amortized cost | 5,253,359 | 6,552,000 |
Less than 12 months, unrealized loss | (59,606) | (76,182) |
Greater than 12 months, unrealized loss | (10,832) | (15,261) |
Unrealized losses | (70,438) | (91,443) |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 5,703,400 | 2,995,362 |
Greater than 12 months, fair value | ||
Fair value | 5,703,400 | 2,995,362 |
Less than 12 months, amortized cost | 5,823,654 | 3,130,204 |
Greater than 12 months, amortized cost | ||
Amortized cost | 5,823,654 | 3,130,204 |
Less than 12 months, unrealized loss | (120,254) | (134,842) |
Greater than 12 months, unrealized loss | ||
Unrealized losses | (120,254) | (134,842) |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 21,286,131 | 20,178,367 |
Greater than 12 months, fair value | 1,224,291 | 1,306,756 |
Fair value | 22,510,422 | 21,485,123 |
Less than 12 months, amortized cost | 21,731,539 | 20,651,188 |
Greater than 12 months, amortized cost | 1,235,721 | 1,323,277 |
Amortized cost | 22,967,260 | 21,974,465 |
Less than 12 months, unrealized loss | (445,408) | (472,821) |
Greater than 12 months, unrealized loss | (11,430) | (16,521) |
Unrealized losses | (456,838) | (489,342) |
Common Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | ||
Greater than 12 months, fair value | 216,690 | 445,872 |
Fair value | 216,690 | 445,872 |
Less than 12 months, amortized cost | ||
Greater than 12 months, amortized cost | 258,568 | 479,801 |
Amortized cost | 258,568 | 479,801 |
Less than 12 months, unrealized loss | ||
Greater than 12 months, unrealized loss | (41,878) | (33,929) |
Unrealized losses | (41,878) | (33,929) |
Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 1,917,159 | 2,328,345 |
Greater than 12 months, fair value | ||
Fair value | 1,917,159 | |
Less than 12 months, amortized cost | 1,965,197 | 2,460,791 |
Greater than 12 months, amortized cost | ||
Amortized cost | 1,965,197 | |
Less than 12 months, unrealized loss | (48,038) | (132,446) |
Greater than 12 months, unrealized loss | ||
Unrealized losses | $ (48,038) | $ (132,446) |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Securities transferred in or out of levels 1 or 2 | $ 0 | $ 0 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary of Assets Measured at Fai Value on a recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 79,704,643 | $ 73,914,983 |
US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,342,762 | 1,241,125 |
MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 22,610,608 | 19,677,200 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 26,984,615 | 28,344,907 |
Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 16,746,819 | 14,870,791 |
Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 67,684,804 | 64,134,023 |
Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 8,355,129 | 6,982,547 |
Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 3,664,710 | 2,798,413 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 12,019,839 | 9,780,960 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 9,697,891 | 8,223,672 |
Level 1 [Member] | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,342,762 | 1,241,125 |
Level 1 [Member] | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 1 [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 1 [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 1 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,342,762 | 1,241,125 |
Level 1 [Member] | Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 8,355,129 | 6,982,547 |
Level 1 [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 8,355,129 | 6,982,547 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 70,006,752 | 65,691,311 |
Level 2 [Member] | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 2 [Member] | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 22,610,608 | 19,677,200 |
Level 2 [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 26,984,615 | 28,344,907 |
Level 2 [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 16,746,819 | 14,870,791 |
Level 2 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 66,342,042 | 62,892,898 |
Level 2 [Member] | Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 2 [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 3,664,710 | 2,798,413 |
Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 3,664,710 | 2,798,413 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | ||
Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Mar. 17, 2017USD ($)shares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)item |
Debt Instrument [Line Items] | ||||
Corporate debt | $ 5,215,142 | $ 3,786,950 | ||
Interest expense | $ 52,310 | $ 41,347 | ||
Average interest rate | 4.00% | 5.00% | ||
Gain (loss) on capital lease | $ 0 | $ 0 | ||
Surplus Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes converted | $ 1,650,000 | |||
Debt converted, shares issued | shares | 165,000 | |||
Debt | $ 1,850,000 | |||
Leasehold Obligation [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.70% | |||
Capital lease, additional pledged bonds | 860,969 | |||
Capital lease, pledged bonds | $ 1,808,523 | |||
Lease payments | 125,494 | 62,111 | ||
Outstanding lease obligation | $ 1,123,759 | 1,227,541 | ||
Leasehold Obligation [Member] | Electronic Data Processing [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital Lease, Term | 48 years | |||
Leasehold Obligation [Member] | Titled Vehicles [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital Lease, Term | 36 years | |||
American Bank & Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 3,500,000 | |||
Term of debt instrument | 5 years | |||
Interest rate | 3.65% | |||
Collateral | $ 1,500,000 | |||
Debt | 3,986,018 | 525,619 | ||
Bofi Federal Bank B [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | 500,000 | |||
Bofi Federal Bank C [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 75,000 | |||
Bofi Federal Bank B & C [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 7,544 | 0 | ||
Face amount of debt instrument | $ 500,000 | |||
Term of debt instrument | 36 months | |||
Interest rate | 4.70% | |||
Number of debt agreements | item | 2 | |||
Optional prepayment term | 12 months | |||
Debt | $ 3,986,018 | 0 | $ 525,619 | |
Home Office Mortgage [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 997 | 3,040 | ||
Interest rate | 2.60% | |||
Debt | $ 105,365 | $ 183,790 | ||
Debt maturity | Dec. 31, 2017 | |||
Revolving Line Of Credt [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 0 | $ 0 | ||
Debt maturity | Aug. 1, 2017 | |||
Maximum borrowing capacity | $ 1,750,000 | |||
Revolving Line Of Credt [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 2.00% | |||
Revolving Line Of Credt [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate | 3.50% |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 1,123,759 | $ 1,227,541 |
Total | 5,215,142 | 3,786,950 |
Surplus Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,850,000 | |
American Bank & Trust [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,986,018 | 525,619 |
Home Office Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 105,365 | $ 183,790 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
WRITTEN | ||
Direct | $ 12,588,591 | $ 12,077,065 |
Reinsurance assumed | 39,836 | 45,720 |
Reinsurance ceded | (1,976,230) | (1,955,964) |
Net | 10,652,197 | 10,166,821 |
EARNED | ||
Direct | 12,792,794 | 12,104,517 |
Reinsurance assumed | 49,218 | 59,364 |
Reinsurance ceded | (2,003,906) | (1,873,119) |
Net | 10,838,106 | 10,290,762 |
LOSSES AND SETTLEMENT EXPENSES INCURRED | ||
Direct | 7,869,502 | 11,289,354 |
Reinsurance assumed | 42,432 | 22,599 |
Reinsurance ceded | (1,312,550) | (4,932,457) |
Net | $ 6,599,384 | $ 6,379,496 |
Unpaid Losses and Settlement 37
Unpaid Losses and Settlement Expenses (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Individual risk | $ 500,000 |
Unpaid Losses and Settlement 38
Unpaid Losses and Settlement Expenses (Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Unpaid losses and settlement expense - beginning of the period: | ||
Gross | $ 52,817,254 | $ 61,056,000 |
Less: Ceded | 12,114,998 | 19,158,000 |
Net | 40,702,000 | 41,898,000 |
Increase (decrease) in incurred losses and settlement expense: | ||
Current year | 6,893,000 | 6,504,000 |
Prior years | (294,000) | (125,000) |
Net | 6,599,384 | 6,379,496 |
Deduct: Loss and settlement expense payments for claims incurred: | ||
Current year | 1,974,000 | 795,000 |
Prior years | 4,936,000 | 5,501,000 |
Total paid | 6,910,000 | 6,296,000 |
Net unpaid losses and settlement expense - end of the period | 40,391,000 | 41,981,000 |
Plus: Reinsurance recoverable on unpaid losses | 9,472,625 | 19,448,000 |
Gross unpaid losses and settlement expense - end of the period | $ 49,863,933 | $ 61,429,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Effective tax rate | 35.40% | 39.40% | |
Federal tax rate | 34.00% | 34.00% | |
Capital loss carryforward | $ 0 | $ 0 | |
Operating loss carryforward | $ 0 | $ 0 |
Income Taxes (Schedule of of Ef
Income Taxes (Schedule of of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Abstract] | ||
Provision for income taxes at the statutory federal tax rates | $ 446,729 | $ 263,653 |
Increase (reduction) in taxes resulting from: | ||
Dividends received deduction | (9,104) | |
Tax-exempt interest income | (40,338) | (43,665) |
15% proration of tax exempt interest and dividends received decution | 7,416 | 6,550 |
Officer life insurance, net | 5,003 | 5,794 |
Nondeductible expenses | 8,811 | 10,220 |
Prior year true-ups and other | 46,347 | 62,901 |
Total income tax expense | $ 464,864 | $ 305,453 |
Proration percentage | 15.00% | 15.00% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 24, 2017 | Dec. 31, 2016 | |
Employee Benefits [Abstract] | |||
Employee stock ownership plan, shares | 350,000 | 350,000 | 0 |
Employee stock ownership plan, share purchase price | $ 10 | ||
Contributions to the ESOP, cash | $ 0 | ||
Contributions to the ESOP, shares | 0 | ||
Compensation expense | $ 22,111 | ||
Shares committed to be released | 1,433 |
Related Party (Details)
Related Party (Details) | Mar. 17, 2017USD ($)loanshares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
John R. Klockau [Member] | |||
Related Party Transaction [Line Items] | |||
Number of notes held | loan | 2 | ||
Fees paid to related party | $ 2,470 | $ 2,585 | |
Scott T. Burgess [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 841 | 0 | |
Griffin Financial Group [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 0 | ||
Stevens & Lee [Member] | |||
Related Party Transaction [Line Items] | |||
Fees paid to related party | 893,240 | $ 17,950 | |
Surplus Notes [Member] | |||
Related Party Transaction [Line Items] | |||
Notes converted | $ 1,650,000 | ||
Debt converted, shares issued | shares | 165,000 | ||
Surplus Notes [Member] | John R. Klockau [Member] | |||
Related Party Transaction [Line Items] | |||
Notes converted | $ 1,150,000 | ||
Debt converted, shares issued | shares | 115,000 | ||
Debt converted, interest payment | $ 12,975 |