Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-38046 | |
Entity Registrant Name | ICC Holdings, Inc. | |
Entity Central Index Key | 0001681903 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 81-3359409 | |
Entity Address, Address Line One | 225 20th Street | |
Entity Address, City or Town | Rock Island | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 61201 | |
City Area Code | 309 | |
Local Phone Number | 793-1700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ICCH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 3,284,768 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Investments and cash: | |||
Fixed maturity securities (amortized cost of $100,018,472 at 6/30/2022 and $102,145,223 at 12/31/2021) | $ 92,371,500 | $ 105,841,543 | |
Other invested assets | 3,792,362 | 3,086,568 | |
Property held for investment, at cost, net of accumulated depreciation of $521,315 at 6/30/2022 and $464,713 at 12/31/2021 | 5,581,481 | 5,509,114 | |
Cash and cash equivalents | 8,041,975 | 4,606,378 | |
Total investments and cash | 130,912,938 | 145,432,250 | |
Accrued investment income | 707,190 | 659,413 | |
Premiums and reinsurance balances receivable, net of allowances for uncollectible amounts of $100,000 at 6/30/2022 and 12/31/2021 | 29,759,983 | 27,199,804 | |
Ceded unearned premiums | 981,211 | 967,022 | |
Reinsurance balances recoverable on unpaid losses and settlement expenses, net of allowances for uncollectible amounts of $0 at 6/30/2022 and 12/31/2021 | 15,526,114 | 14,521,219 | |
Federal income taxes | 3,324,334 | 195,694 | |
Deferred policy acquisition costs, net | 7,156,770 | 6,538,844 | |
Property and equipment, at cost, net of accumulated depreciation of $6,378,208 at 6/30/2022 and $6,243,055 at 12/31/2021 | 3,206,245 | 3,144,218 | |
Other assets | 1,327,125 | 1,343,504 | |
Total assets | 192,901,910 | 200,001,968 | |
Liabilities: | |||
Unpaid losses and settlement expenses | 70,381,083 | 61,834,809 | |
Unearned premiums | 39,512,116 | 36,212,266 | |
Reinsurance balances payable | 813,069 | 1,368,294 | |
Corporate debt | 15,000,000 | 18,455,342 | |
Accrued expenses | 4,640,904 | 5,441,611 | |
Other liabilities | 1,047,109 | 1,030,870 | |
Total liabilities | 131,394,281 | 125,298,054 | |
Equity: | |||
Common stock | [1] | 35,000 | 35,000 |
Treasury stock, at cost | [2] | (3,192,640) | (3,155,399) |
Additional paid-in capital | 32,939,978 | 32,965,136 | |
Accumulated other comprehensive earnings, net of tax | (6,041,174) | 2,920,027 | |
Retained earnings | 39,993,988 | 44,282,895 | |
Less: Unearned Employee Stock Ownership Plan shares at cost | [3] | (2,227,523) | (2,343,745) |
Total equity | 61,507,629 | 74,703,914 | |
Total liabilities and equity | 192,901,910 | 200,001,968 | |
Common Stocks [Member] | |||
Investments and cash: | |||
Stocks at fair value | 18,092,308 | 23,608,197 | |
Preferred Stock [Member] | |||
Investments and cash: | |||
Stocks at fair value | $ 3,033,312 | $ 2,780,450 | |
[1] Par value $ 0.01 ; authorized: 2022 - 10,000,000 shares and 2021 – 10,000,000 shares; issued: 2022 – 3,500,000 shares and 2021 – 3,500,000 shares; outstanding: 2022 – 3,289,558 and 2021 - 3,291,852 shares 2022 – 210,442 shares and 2021 – 208,148 shares 2022 – 222,752 shares and 2021 – 234,374 shares |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Fixed maturity securities, amortized cost | $ 100,018,472 | $ 102,145,223 |
Property held for investment, accumulated depreciation | 521,315 | 464,713 |
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 | $ 6,378,208 | $ 6,243,055 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 3,500,000 | 3,500,000 |
Common stock, shares outstanding (in shares) | 3,289,558 | 3,291,852 |
Treasury stock (in shares) | 210,442 | 208,148 |
Unearned Employee Stock Ownership Plan | 222,752 | 234,374 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Earnings - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Consolidated Statements of Earnings and Comprehensive Earnings [Abstract] | ||||
Net premiums earned | $ 17,024,642 | $ 12,732,807 | $ 33,041,319 | $ 24,781,520 |
Net investment income | 952,189 | 783,718 | 1,869,270 | 1,585,124 |
Net realized investment gains | 536,809 | 349,906 | 744,394 | 536,615 |
Net unrealized (losses) gains on equity securities | (3,804,511) | 728,819 | (5,097,203) | 1,605,135 |
Other income | 88,226 | 91,318 | 247,657 | 138,034 |
Consolidated revenues | 14,797,355 | 14,686,568 | 30,805,437 | 28,646,428 |
Losses and settlement expenses | 13,808,605 | 8,664,280 | 24,003,806 | 16,466,986 |
Policy acquisition costs and other operating expenses | 6,002,808 | 5,047,023 | 11,775,208 | 9,514,601 |
Interest expense on debt | 42,241 | 58,014 | 103,252 | 111,716 |
General corporate expenses | 184,503 | 196,133 | 373,918 | 360,117 |
Total expenses | 20,038,157 | 13,965,450 | 36,256,184 | 26,453,420 |
(Loss) earnings before income taxes | (5,240,802) | 721,118 | (5,450,747) | 2,193,008 |
Total income tax (benefit) expense | (1,112,035) | 158,450 | (1,161,840) | 468,401 |
Net (loss) earnings | (4,128,767) | 562,668 | (4,288,907) | 1,724,607 |
Unrealized gains and losses on fixed maturity securities: | ||||
Other comprehensive loss, net of tax | (3,992,132) | 1,080,987 | (8,961,201) | (1,145,535) |
Comprehensive (loss) earnings | $ (8,120,899) | $ 1,643,655 | $ (13,250,108) | $ 579,072 |
Basic: | ||||
Basic net (loss) earnings per share | $ (1.35) | $ 0.18 | $ (1.40) | $ 0.57 |
Diluted: | ||||
Diluted net (loss) earnings per share | $ (1.34) | $ 0.18 | $ (1.40) | $ 0.57 |
Weighted average number of common shares outstanding: | ||||
Basic | 3,069,430 | 3,051,010 | 3,061,119 | 3,037,738 |
Diluted | 3,082,000 | 3,064,455 | 3,073,689 | 3,051,183 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock [Member] | Treasury Stock [Member] | Unearned ESOP [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Earnings (Loss) [Member] | Total |
Balance at Dec. 31, 2020 | $ 35,000 | $ (3,153,838) | $ (2,578,115) | $ 32,780,436 | $ 40,140,115 | $ 5,520,091 | $ 72,743,689 |
Purchase of treasury stock | (92,414) | (92,414) | |||||
Net earnings (loss) | 1,724,607 | 1,724,607 | |||||
Other comprehensive loss, net of tax | (1,145,535) | (1,145,535) | |||||
Restricted stock unit expense | 137,599 | (50,386) | 87,213 | ||||
ESOP compensation expense | 116,222 | 58,391 | 174,613 | ||||
Balance at Jun. 30, 2021 | 35,000 | (3,108,653) | (2,461,893) | 32,788,441 | 41,864,722 | 4,374,556 | 73,492,173 |
Balance at Dec. 31, 2021 | 35,000 | (3,155,399) | (2,343,745) | 32,965,136 | 44,282,895 | 2,920,027 | 74,703,914 |
Purchase of treasury stock | (238,686) | (238,686) | |||||
Net earnings (loss) | (4,288,907) | (4,288,907) | |||||
Other comprehensive loss, net of tax | (8,961,201) | (8,961,201) | |||||
Restricted stock unit expense | 201,445 | (103,699) | 97,746 | ||||
ESOP compensation expense | 116,222 | 78,541 | 194,763 | ||||
Balance at Jun. 30, 2022 | $ 35,000 | $ (3,192,640) | $ (2,227,523) | $ 32,939,978 | $ 39,993,988 | $ (6,041,174) | $ 61,507,629 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) earnings | $ (4,288,907) | $ 1,724,607 |
Adjustments to reconcile net (loss) earnings to net cash (used in) provided by operating activities | ||
Net realized investment gains | (744,394) | (536,615) |
Net unrealized losses (gains) on equity securities | 5,097,203 | (1,605,135) |
Depreciation | 341,014 | 321,015 |
Deferred income tax | (1,191,849) | 267,950 |
Amortization of bond premium and discount | 115,225 | 143,687 |
Stock-based compensation expense | 292,509 | 261,826 |
Change in: | ||
Accrued investment income | (47,777) | 4,582 |
Premiums and reinsurance balances receivable | (2,560,179) | (1,352,895) |
Ceded unearned premiums | (14,189) | (82,340) |
Reinsurance balances payable | (555,225) | 470,133 |
Reinsurance balances recoverable | (1,004,895) | (2,897,838) |
Deferred policy acquisition costs | (617,926) | (652,178) |
Unpaid losses and settlement expenses | 8,546,274 | 2,282,563 |
Unearned premiums | 3,299,850 | 3,611,517 |
Accrued expenses | (800,707) | 391,232 |
Current federal income tax | (509,561) | 179,075 |
Other | 257,609 | (107,600) |
Net cash provided by operating activities | 5,614,074 | 2,423,587 |
Purchases of: | ||
Fixed maturity securities | (10,602,574) | (12,878,221) |
Other invested assets | (725,000) | (100,000) |
Property held for investment | (432,279) | (994,832) |
Property and equipment | (329,264) | (481,864) |
Proceeds from sales, maturities and calls of: | ||
Fixed maturity securities | 12,614,074 | 6,184,298 |
Other invested assets | 18,518 | 300,000 |
Property held for investment | 278,679 | 1,316,993 |
Property and equipment | 7,454 | 15,135 |
Net cash provided by (used in) investing activities | 1,515,552 | (9,926,282) |
Cash flows from financing activities: | ||
Proceeds from loans | 5,000,000 | 9,000,000 |
Repayments of borrowed funds | (8,455,342) | (4,005,245) |
Purchase of treasury stock | (238,686) | (92,414) |
Net cash (used in) provided by financing activities | (3,694,029) | 4,902,341 |
Net increase (decrease) in cash and cash equivalents | 3,435,597 | (2,600,354) |
Cash and cash equivalents at beginning of year | 4,606,378 | 6,598,842 |
Cash and cash equivalents at end of period | 8,041,975 | 3,998,488 |
Supplemental information: | ||
Interest paid | 97,900 | 108,800 |
Common Stocks [Member] | ||
Purchases of: | ||
Equity securities | (1,927,583) | (5,259,415) |
Proceeds from sales, maturities and calls of: | ||
Equity securities | 3,376,818 | 1,964,835 |
Preferred Stock [Member] | ||
Purchases of: | ||
Equity securities | (1,166,999) | (333,734) |
Proceeds from sales, maturities and calls of: | ||
Equity securities | $ 403,708 | $ 340,523 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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. 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.; ICC Realty, LLC, a real estate services and holding company; Beverage Insurance Agency, Inc., a non-insurance subsidiary; Estrella Innovative Solutions, Inc., an outsourcing company; Southern Hospitality Education, LLC, dba Katkin, a full-service food safety and education company; and Illinois Casualty Company (ICC), an operating insurance company that is the parent company of ICC Properties, LLC, a real estate series limited liability company. Both ICC and ICC Properties, LLC are Illinois domiciled companies. 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 23.2 % and 24.8 % of the premium is written in Illinois for the three months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, approximately 23.2 % and 24.8 %, respectively, of the premium is written in Illinois. The Company operates as one 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 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 Annual Report on Form 10-K, for the year ended December 31, 2021 (the “2021 10-K”). 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 June 30, 2022 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 its significant accounting policies in the 2021 10-K. 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 2021 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 later 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 June 30, 2022 and 2021, the Company recognized no impairments. Property and equipment are summarized as follows: As of June 30, December 31, 2022 2021 Automobiles $ 494,770 $ 507,889 Furniture and fixtures 516,741 512,268 Computer equipment and software 4,555,944 4,350,118 Home office 4,016,998 4,016,998 Total cost 9,584,453 9,387,273 Accumulated depreciation ( 6,378,208 ) ( 6,243,055 ) Net property and equipment $ 3,206,245 $ 3,144,218 F. COMPREHENSIVE EARNINGS Comprehensive (loss) earnings include net (loss) earnings plus unrealized (losses) gains 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 and comprehensive earnings, the Company used a 21 % tax rate . Other comprehensive earnings, as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax (benefit) of $( 2,382,091 ) and $( 304,509 ) for the six months ended June 30, 2022 and 2021, respectively. The following table presents changes in accumulated other comprehensive (loss) earnings for unrealized gains and losses on available-for-sale securities: Six-Months Ended June 30, 2022 2021 Beginning balance $ 2,920,027 $ 5,520,091 Other comprehensive loss before reclassification ( 8,961,697 ) ( 1,137,734 ) Amount reclassified from accumulated other comprehensive loss 496 ( 7,801 ) Net current period other comprehensive loss ( 8,961,201 ) ( 1,145,535 ) Ending balance $ ( 6,041,174 ) $ 4,374,556 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 June 30, 2022 2021 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 (losses) gains arising during the period $ ( 5,063,685 ) $ 1,063,373 $ ( 4,000,312 ) $ 1,376,922 $ ( 289,153 ) $ 1,087,769 Reclassification adjustment for losses (gains) included in net earnings 10,355 ( 2,175 ) 8,180 ( 8,584 ) 1,802 ( 6,782 ) Total other comprehensive (loss) earnings $ ( 5,053,330 ) $ 1,061,198 $ ( 3,992,132 ) $ 1,368,338 $ ( 287,351 ) $ 1,080,987 Six-Month Periods Ended June 30, 2022 2021 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 losses arising during the period $ ( 11,343,920 ) $ 2,382,223 $ ( 8,961,697 ) $ ( 1,440,170 ) $ 302,436 $ ( 1,137,734 ) Reclassification adjustment for losses (gains) included in net earnings 628 ( 132 ) 496 ( 9,874 ) 2,073 ( 7,801 ) Total other comprehensive loss $ ( 11,343,292 ) $ 2,382,091 $ ( 8,961,201 ) $ ( 1,450,044 ) $ 304,509 $ ( 1,145,535 ) 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 Six-Month Periods Ended Details about Accumulated Other June 30, June 30, Affected Line Item in the Statement Comprehensive Earnings Component 2022 2021 2022 2021 where Net Earnings is Presented Unrealized losses (gains) on AFS investments: $ 10,355 $ ( 8,584 ) $ 628 $ ( 9,874 ) Net realized investment losses (gains) ( 2,175 ) 1,802 ( 132 ) 2,073 Income tax expense Total reclassification adjustment, net of tax $ 8,180 $ ( 6,782 ) $ 496 $ ( 7,801 ) 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 ongoing COVID-19 pandemic has resulted in, and could continue to result in, significant disruptions in economic activity and financial markets. Russia’s invasion of Ukraine, inflation and related monetary policy responses, and recession fears are also causing volatility. The cumulative effects of these events on the Company cannot be predicted, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Investments | 2. INVESTMENTS The Company’s investments are primarily composed of fixed income debt securities and common and preferred 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 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 using 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. Available-for-Sale Fixed Maturity and Equity Securities The following tables are a summary of the proceeds from sales, maturities, and calls of AFS fixed maturity and equity securities and the related gross realized gains and losses. For the Three-Months Ended June 30, Net Realized Proceeds Gains Losses Gains (Losses) 2022 Fixed maturity securities $ 10,168,949 $ 96,191 $ ( 106,546 ) $ ( 10,355 ) Common stocks 2,740,714 736,152 ( 186,562 ) 549,590 Preferred stocks 38,200 — ( 2,426 ) ( 2,426 ) 2021 Fixed maturity securities $ 2,699,867 $ 18,137 $ ( 9,553 ) $ 8,584 Common stocks 1,277,820 342,408 ( 33,342 ) 309,065 Preferred stocks 262,054 32,256 — 32,256 For the Six-Months Ended June 30, Net Realized Proceeds Gains Losses Gains (Losses) 2022 Fixed maturity securities $ 12,614,074 $ 105,918 $ ( 106,546 ) $ ( 628 ) Common stocks 3,376,818 940,342 ( 194,632 ) 745,710 Preferred stocks 403,708 7,745 ( 8,433 ) ( 688 ) 2021 Fixed maturity securities $ 6,184,298 $ 19,456 $ ( 9,582 ) $ 9,874 Common stocks 1,964,835 554,769 ( 65,739 ) 489,030 Preferred stocks 340,523 37,711 — 37,711 The amortized cost and estimated fair value of fixed income securities at June 30, 2022, by contractual maturity, are shown as follows: Amortized Cost Fair Value Due in one year or less $ 598,599 $ 600,352 Due after one year through five years 16,090,223 15,725,521 Due after five years through 10 years 18,130,639 16,524,045 Due after 10 years 26,877,655 23,362,604 Asset and mortgage backed securities without a specific due date 38,105,551 35,947,073 Redeemable preferred stocks 215,805 211,905 Total fixed maturity securities $ 100,018,472 $ 92,371,500 Expected maturities may differ from contractual maturities due to call provisions on some existing securities. The following table is a schedule of amortized cost and estimated fair values of investments in securities classified as available for sale at June 30, 2022 and December 31, 2021 Gross Unrealized Amortized Cost Fair Value Gains Losses 2022 Fixed maturity securities: U.S. Treasury $ 1,353,242 $ 1,278,703 $ — $ ( 74,539 ) MBS/ABS/CMBS 38,105,551 35,947,073 4,743 ( 2,163,221 ) Corporate 38,820,084 36,002,420 94,211 ( 2,911,876 ) Municipal 21,523,790 18,931,399 129,114 ( 2,721,505 ) Redeemable preferred stock 215,805 211,905 3,840 ( 7,740 ) Total fixed maturity securities $ 100,018,472 $ 92,371,500 $ 231,908 $ ( 7,878,881 ) Gross Unrealized Amortized Cost Fair Value Gains Losses 2021 Fixed maturity securities: U.S. Treasury $ 1,352,044 $ 1,345,992 $ 11,276 $ ( 17,328 ) MBS/ABS/CMBS 40,712,275 41,023,871 607,483 ( 295,887 ) Corporate 38,959,905 41,206,964 2,434,738 ( 187,679 ) Municipal 20,905,194 22,031,831 1,149,998 ( 23,361 ) Redeemable preferred stock 215,805 232,885 17,080 — Total fixed maturity securities $ 102,145,223 $ 105,841,543 $ 4,220,575 $ ( 524,255 ) All the Company’s collateralized securities carry an average credit rating of AA+ by one or more major rating agencies and continue to pay according to contractual terms. Included within MBS/ABS/CMBS, as defined in Note 3 – Fair Value Disclosures, are asset backed securities with fair values of $ 11,461,525 and $ 14,351,099 , residential mortgage backed securities of $ 15,129,817 and $ 14,975,101 , and commercial mortgage backed securities of $ 9,355,731 and $ 11,697,671 at June 30, 2022 and December 31, 2021, respectively. 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 June 30, 2022 and December 31, 2021. The tables segregate the securities based on type, noting the fair value, 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. June 30, 2022 December 31, 2021 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total Fixed Maturity Securities: U.S. Treasury Fair value $ 630,063 $ 648,641 $ 1,278,704 $ 391,250 $ 291,891 $ 683,141 Amortized cost 652,843 700,400 1,353,243 400,408 300,061 700,469 Unrealized loss ( 22,780 ) ( 51,759 ) ( 74,539 ) ( 9,158 ) ( 8,170 ) ( 17,328 ) MBS/ABS/CMBS Fair value 26,290,190 8,213,254 34,503,444 20,403,757 1,124,095 21,527,852 Amortized cost 27,523,725 9,142,940 36,666,665 20,647,568 1,176,171 21,823,739 Unrealized loss ( 1,233,535 ) ( 929,686 ) ( 2,163,221 ) ( 243,811 ) ( 52,076 ) ( 295,887 ) Corporate Fair value 27,074,435 1,516,798 28,591,233 6,428,166 995,235 7,423,401 Amortized cost 29,745,958 1,757,151 31,503,109 6,590,227 1,020,853 7,611,080 Unrealized loss ( 2,671,523 ) ( 240,353 ) ( 2,911,876 ) ( 162,061 ) ( 25,618 ) ( 187,679 ) Municipal Fair value 13,669,863 211,521 13,881,384 2,676,052 269,247 2,945,299 Amortized cost 16,329,722 273,167 16,602,889 2,695,269 273,391 2,968,660 Unrealized loss ( 2,659,859 ) ( 61,646 ) ( 2,721,505 ) ( 19,217 ) ( 4,144 ) ( 23,361 ) Redeemable preferred stock Fair value 139,155 — 139,155 — — — Cost 146,895 — 146,895 — — — Unrealized loss ( 7,740 ) — ( 7,740 ) — — — Total Fair value 67,803,706 10,590,214 78,393,920 29,899,225 2,680,468 32,579,693 Amortized cost 74,399,143 11,873,658 86,272,801 30,333,472 2,770,476 33,103,948 Unrealized loss ( 6,595,437 ) $ ( 1,283,444 ) $ ( 7,878,881 ) $ ( 434,247 ) $ ( 90,008 ) $ ( 524,255 ) The fixed income portfolio contained 201 securities in an unrealized loss position as of June 30, 2022. Of these 201 securities, 21 have been in an unrealized loss position for 12 consecutive months or longer and represent $ 1,283,444 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 net earnings during the first six months ended June 30, 2022. For all fixed income securities at a loss at June 30, 2022, management believes it is probable that the Company will receive all contractual payments in the form of principal and interest. In addition, the Company is not required to, nor does it intend to sell these investments prior to recovering the entire amortized cost basis for each security, which may be at maturity. The fixed income securities in an unrealized loss position were not other-than-temporarily impaired at June 30, 2022 and December 31, 2021. UNREALIZED GAINS AND LOSSES ON EQUITY SECURITIES Net unrealized (losses) for the three and six months ended June 30, 2022 for equity securities held as of June 30, 2022 were $( 3,804,511 ) and $( 5,097,203 ), respectively. Net unrealized gains for the three and six months ended June 30, 2021 for equity securities held as of June 30, 2021 were $ 728,819 and $ 1,605,135 , respectively. Other Invested Assets Other invested assets as of June 30, 2022 and December 31, 2021 were $ 3,792,362 and $ 3,086,568 , respectively. Other invested assets as of June 30, 2022 include privately held investments of $ 2,314,629 and notes receivable of $ 1,052,733 , compared to $ 1,720,502 and $ 1,066,066 , respectively, at December 31, 2021. The notes bear interest between 3.9 % and 6.5 %. As of June 30, 2022, $ 18,518 in note payments were received and $ 5,185 in accrued escrow and interest receivable was recorded. Comparatively, as of June 30, 2021, no note payments were received and $ 6,970 in accrued escrow and interest receivable was recorded. The Company had no allowance recorded related to uncollectible note receivables at June 30, 2022 and December 31, 2021. In addition, other invested assets includes a membership in the Federal Home Loan Bank of Chicago (FHLBC) worth $ 425,000 and $ 300,000 as of June 30, 2022 and December 31, 2021, respectively. In November 2021, we agreed to commit up to $ 10.0 million to a private investment fund, subject to regulatory approval, which may be callable from time to time by such fund. As of June 30, 2022 and December 31, 2021, no calls were received. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
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), Commercial Mortgage-backed Securities (CMBS) and 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, CMBS, CMO and ABS with corroborated and observable inputs are classified as Level 2. All MBS, CMBS, 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 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 readily available market for these to trade in, management believes that face value accurately reflects fair value. Assets measured at fair value on a recurring basis as of June 30, 2022, are 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 $ 1,278,703 $ — $ — $ 1,278,703 MBS/ABS/CMBS — 35,947,073 — 35,947,073 Corporate — 36,002,420 — 36,002,420 Municipal — 18,931,399 — 18,931,399 Redeemable preferred stocks — 211,905 — 211,905 Total fixed maturity securities 1,278,703 91,092,797 — 92,371,500 Equity securities Common stocks 18,092,308 — — 18,092,308 Perpetual preferred stocks — 3,033,312 — 3,033,312 Total equity securities 18,092,308 3,033,312 — 21,125,620 Total marketable investments measured at fair value $ 19,371,011 $ 94,126,109 $ — $ 113,497,120 Assets measured at fair value on a recurring basis as of December 31, 2021, are 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 $ 1,345,992 $ — $ — $ 1,345,992 MBS/ABS/CMBS — 41,023,871 — 41,023,871 Corporate — 41,206,964 — 41,206,964 Municipal — 22,031,831 — 22,031,831 Redeemable preferred stocks — 232,885 — 232,885 Total fixed maturity securities 1,345,992 104,495,551 — 105,841,543 Equity securities Common stocks 23,608,197 — — 23,608,197 Perpetual preferred stocks — 2,780,450 — 2,780,450 Total equity securities 23,608,197 2,780,450 — 26,388,647 Total marketable investments measured at fair value $ 24,954,189 $ 107,276,001 $ — $ 132,230,190 As noted in the previous tables, the Company did no t have any assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2022 or December 31, 2021. Additionally, there were no securities transferred in or out of Levels 1 and 2 during the six-month periods ended June 30, 2022 and 2021. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt [Abstract] | |
Debt | 4. DEBT Debt Obligation ICC Holdings, Inc. secured a loan with a commercial bank in March 2017 in the amount of $ 3.5 million and used the proceeds to repay ICC for the money borrowed by the ESOP. The term of the loan is five years bearing interest at 3.65 %. The Company pledged stock and $ 1.0 million of marketable assets as collateral for the loan. The Company paid off this loan in April 2022. The Company also has borrowing capacity of $ 42.0 million, which is 25 % of net admitted statutory assets of Illinois Casualty Company as of the prior year-end. As part of the Company’s response to COVID-19, the Company obtained, in March 2020, a $ 6.0 million loan from the FHLBC as a precautionary measure to increase its cash position, to provide increased liquidity, and to compensate for potential reductions in premium receivable collections. The term of the loan is five year s bearing interest at 1.4 %. The Company pledged $ 6.8 million of fixed income securities as collateral for this loan. In May 2021, the Company entered into a $ 4.0 million, 0.74 % fixed interest, five-year FHLBC loan. A one year FHLBC loan for $ 5.0 million, 0 % interest was entered into in May 2021. Upon maturity in May 2022, this loan rolled over to a $ 5.0 million, 1.36 % fixed interest loan. The Company has $ 19.3 million in bonds pledged as collateral for all FHLBC loans. The total balance of the debt agreements at June 30, 2022 and December 31, 2021 was $ 15,000,000 and $ 18,455,342 , respectively. The average interest rate on remaining debt was 1.2 % as of June 30, 2022 and 1.3 % as of December 31, 2021. Revolving Line of Credit We increased our revolving line of credit with a commercial bank from $ 2.0 million to $ 4.0 million in July 2022. This line of credit is priced at Prime plus 0.5 % with a floor of 4.75 % and renews annually with a current expiration date of July 2023. The Company pledged $ 4.0 million of business assets in the event the Company draws down on the line of credit. This agreement includes an annually calculated financial debt covenant requiring a minimum total adjusted capital of $ 21.0 million. Total adjusted capital is the sum of an insurer’s statutory capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed with Illinois Department of Insurance. There was no interest paid on the line of credit during the six months ended June 30, 2022 and 2021. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2022 | |
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 $ 1,000,000 for casualty and workers’ compensation business and $ 750,000 for property, 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 June 30, 2022 2021 WRITTEN Direct $ 21,228,432 $ 18,516,434 Reinsurance assumed 32,410 ( 34,245 ) Reinsurance ceded ( 2,266,365 ) ( 2,898,257 ) Net $ 18,994,477 $ 15,583,932 EARNED Direct $ 19,231,944 $ 15,576,595 Reinsurance assumed 25,851 ( 26,862 ) Reinsurance ceded ( 2,233,153 ) ( 2,816,926 ) Net $ 17,024,642 $ 12,732,807 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 15,524,735 $ 12,038,753 Reinsurance assumed 2,284 ( 15,194 ) Reinsurance ceded ( 1,718,414 ) ( 3,359,279 ) Net $ 13,808,605 $ 8,664,280 Six-Month Periods Ended June 30, 2022 2021 WRITTEN Direct $ 40,794,615 $ 33,688,469 Reinsurance assumed 69,358 ( 6,347 ) Reinsurance ceded ( 4,536,993 ) ( 5,371,425 ) Net $ 36,326,980 $ 28,310,697 EARNED Direct $ 37,496,644 $ 30,058,645 Reinsurance assumed 67,479 11,960 Reinsurance ceded ( 4,522,804 ) ( 5,289,085 ) Net $ 33,041,319 $ 24,781,520 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 28,137,877 $ 22,806,187 Reinsurance assumed 47,693 10,251 Reinsurance ceded ( 4,181,764 ) ( 6,349,452 ) Net $ 24,003,806 $ 16,466,986 |
Unpaid Losses and Settlement Ex
Unpaid Losses and Settlement Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Unpaid Losses and Settlement Expenses [Abstract] | |
Unpaid Losses and Settlement Expenses | 6. UNPAID LOSSES AND SETTLEMENT EXPENSES The following table is a reconciliation of the Company’s unpaid losses and settlement expenses: For the Three-Months Ended June 30, (In thousands) 2022 2021 Unpaid losses and settlement expense - beginning of the period: Gross $ 67,407 $ 61,808 Less: Ceded 16,089 14,011 Net 51,318 47,797 Increase in incurred losses and settlement expense: Current year 11,960 8,094 Prior years 1,849 570 Total incurred 13,809 8,664 Deduct: Loss and settlement expense payments for claims incurred: Current year 4,605 3,523 Prior years 5,667 4,998 Total paid 10,272 8,521 Net unpaid losses and settlement expense - end of the period 54,855 47,940 Plus: Reinsurance recoverable on unpaid losses 15,526 15,918 Gross unpaid losses and settlement expense - end of the period $ 70,381 $ 63,858 For the Six-Months Ended June 30, (In thousands) 2022 2021 Unpaid losses and settlement expense - beginning of the period: Gross $ 61,835 $ 61,576 Less: Ceded 14,521 13,020 Net 47,314 48,556 Increase in incurred losses and settlement expense: Current year 19,485 15,236 Prior years 4,519 1,231 Total incurred 24,004 16,467 Deduct: Loss and settlement expense payments for claims incurred: Current year 5,994 4,811 Prior years 10,469 12,272 Total paid 16,463 17,083 Net unpaid losses and settlement expense - end of the period 54,855 47,940 Plus: Reinsurance recoverable on unpaid losses 15,526 15,918 Gross unpaid losses and settlement expense - end of the period $ 70,381 $ 63,858 For the six months ended June 30, 2022 and 2021, we experienced unfavorable development of $ 4,519,000 and $ 1,231,000 , respectively. The unfavorable development for the six months ended June 30, 2022 was primarily driven by new claims and additional information received for a handful of prior year claims in the following lines of business and denoted accident years: Business Owners Liability (2020; one claim & 2017; two claims) and Liquor Liability (2019; one claim). The Business Owners Property line of business was the primary driver of adverse development for the six months ended June 30, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 7. INCOME TAXES The Company’s effective tax rate for the six month periods ended June 30, 2022 was 21.3 % compared to 21.4 % for the same period in 2021. Effective rates are dependent upon components of pretax earnings and losses and the related tax effects. Income tax expense for the six month periods ended June 30, 2022 and 2021 differed from the amounts computed by applying the U.S. federal tax rate of 21 % to pretax income from continuing operations as demonstrated in the following table: For the Three-Months Ended June 30, 2022 2021 Provision for income taxes at the statutory federal tax rates $ ( 1,100,569 ) $ 151,435 Increase (reduction) in taxes resulting from: Dividends received deduction ( 11,117 ) ( 7,967 ) Tax-exempt interest income ( 12,961 ) ( 14,753 ) Proration of tax-exempt interest and dividends received deduction 5,828 5,499 Nondeductible expenses 10,119 24,069 Officer life insurance, net ( 3,335 ) 167 Total $ ( 1,112,035 ) $ 158,450 For the Six-Months Ended June 30, 2022 2021 Provision for income taxes at the statutory federal tax rates $ ( 1,144,657 ) $ 460,532 Increase (reduction) in taxes resulting from: Dividends received deduction ( 22,398 ) ( 16,075 ) Tax-exempt interest income ( 26,312 ) ( 29,547 ) Proration of tax-exempt interest and dividends received deduction 11,798 11,063 Nondeductible expenses 27,411 42,095 Officer life insurance, net ( 7,682 ) 333 Total $ ( 1,161,840 ) $ 468,401 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. As of June 30, 2022 and December 31, 2021, the Company does no t have any capital or operating loss carryforwards. Periods still subject to IRS audit include 2018 through current year. There are currently no open tax exams. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits | 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 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the 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. ICC makes annual contributions to the ESOP sufficient to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation. The Company repurchases shares from participants that have left our employment. ICC Holdings contributed $ 92,080 and $ 0 to the ESOP for the six months ended June 30, 2022 and 2021, respectively. No other contributions were made to the ESOP during these time periods. 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 six months ended June 30, 2022, we recognized compensation expense of $ 194,763 related to 11,622 shares of our common stock that are committed to be released to participants’ accounts at December 31, 2022. For the six months ended June 30, 2021, we recognized compensation expense of $ 174,613 related to 11,622 shares of our common stock that were committed to be released to participants’ accounts at December 31, 2021. RESTRICTED STOCK UNITS Restricted stock units (RSUs) were granted for the first time in February 2018 and more recently in April of each year. RSUs have a grant date value equal to the closing price of the Company’s stock on the dates the shares are granted. The RSUs vest one third over three years beginning the first anniversary of the date of grant. RSUs Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 $ 259,059 $ 13.30 Granted 219,945 17.05 Vested ( 97,747 ) 13.47 Nonvested at June 30, 2022 $ 381,257 $ 15.17 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date the financial statements were issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | 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. 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.; ICC Realty, LLC, a real estate services and holding company; Beverage Insurance Agency, Inc., a non-insurance subsidiary; Estrella Innovative Solutions, Inc., an outsourcing company; Southern Hospitality Education, LLC, dba Katkin, a full-service food safety and education company; and Illinois Casualty Company (ICC), an operating insurance company that is the parent company of ICC Properties, LLC, a real estate series limited liability company. Both ICC and ICC Properties, LLC are Illinois domiciled companies. 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 23.2 % and 24.8 % of the premium is written in Illinois for the three months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, approximately 23.2 % and 24.8 %, respectively, of the premium is written in Illinois. The Company operates as one segment. |
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 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 Annual Report on Form 10-K, for the year ended December 31, 2021 (the “2021 10-K”). 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 June 30, 2022 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. |
Significant Accounting Policies | C. SIGNIFICANT ACCOUNTING POLICIES The Company reported its significant accounting policies in the 2021 10-K. |
Prospective Accunting 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 2021 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 later 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 June 30, 2022 and 2021, the Company recognized no impairments. Property and equipment are summarized as follows: As of June 30, December 31, 2022 2021 Automobiles $ 494,770 $ 507,889 Furniture and fixtures 516,741 512,268 Computer equipment and software 4,555,944 4,350,118 Home office 4,016,998 4,016,998 Total cost 9,584,453 9,387,273 Accumulated depreciation ( 6,378,208 ) ( 6,243,055 ) Net property and equipment $ 3,206,245 $ 3,144,218 |
Comprehensive Earnings | F. COMPREHENSIVE EARNINGS Comprehensive (loss) earnings include net (loss) earnings plus unrealized (losses) gains 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 and comprehensive earnings, the Company used a 21 % tax rate . Other comprehensive earnings, as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax (benefit) of $( 2,382,091 ) and $( 304,509 ) for the six months ended June 30, 2022 and 2021, respectively. The following table presents changes in accumulated other comprehensive (loss) earnings for unrealized gains and losses on available-for-sale securities: Six-Months Ended June 30, 2022 2021 Beginning balance $ 2,920,027 $ 5,520,091 Other comprehensive loss before reclassification ( 8,961,697 ) ( 1,137,734 ) Amount reclassified from accumulated other comprehensive loss 496 ( 7,801 ) Net current period other comprehensive loss ( 8,961,201 ) ( 1,145,535 ) Ending balance $ ( 6,041,174 ) $ 4,374,556 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 June 30, 2022 2021 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 (losses) gains arising during the period $ ( 5,063,685 ) $ 1,063,373 $ ( 4,000,312 ) $ 1,376,922 $ ( 289,153 ) $ 1,087,769 Reclassification adjustment for losses (gains) included in net earnings 10,355 ( 2,175 ) 8,180 ( 8,584 ) 1,802 ( 6,782 ) Total other comprehensive (loss) earnings $ ( 5,053,330 ) $ 1,061,198 $ ( 3,992,132 ) $ 1,368,338 $ ( 287,351 ) $ 1,080,987 Six-Month Periods Ended June 30, 2022 2021 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 losses arising during the period $ ( 11,343,920 ) $ 2,382,223 $ ( 8,961,697 ) $ ( 1,440,170 ) $ 302,436 $ ( 1,137,734 ) Reclassification adjustment for losses (gains) included in net earnings 628 ( 132 ) 496 ( 9,874 ) 2,073 ( 7,801 ) Total other comprehensive loss $ ( 11,343,292 ) $ 2,382,091 $ ( 8,961,201 ) $ ( 1,450,044 ) $ 304,509 $ ( 1,145,535 ) 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 Six-Month Periods Ended Details about Accumulated Other June 30, June 30, Affected Line Item in the Statement Comprehensive Earnings Component 2022 2021 2022 2021 where Net Earnings is Presented Unrealized losses (gains) on AFS investments: $ 10,355 $ ( 8,584 ) $ 628 $ ( 9,874 ) Net realized investment losses (gains) ( 2,175 ) 1,802 ( 132 ) 2,073 Income tax expense Total reclassification adjustment, net of tax $ 8,180 $ ( 6,782 ) $ 496 $ ( 7,801 ) |
Risks and Uncertainties | 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 ongoing COVID-19 pandemic has resulted in, and could continue to result in, significant disruptions in economic activity and financial markets. Russia’s invasion of Ukraine, inflation and related monetary policy responses, and recession fears are also causing volatility. The cumulative effects of these events on the Company cannot be predicted, but could reduce demand for our insurance policies, result in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Property, Plant and Equipment | As of June 30, December 31, 2022 2021 Automobiles $ 494,770 $ 507,889 Furniture and fixtures 516,741 512,268 Computer equipment and software 4,555,944 4,350,118 Home office 4,016,998 4,016,998 Total cost 9,584,453 9,387,273 Accumulated depreciation ( 6,378,208 ) ( 6,243,055 ) Net property and equipment $ 3,206,245 $ 3,144,218 |
Accumulated Other Comprehensive Earnings (Loss) | Six-Months Ended June 30, 2022 2021 Beginning balance $ 2,920,027 $ 5,520,091 Other comprehensive loss before reclassification ( 8,961,697 ) ( 1,137,734 ) Amount reclassified from accumulated other comprehensive loss 496 ( 7,801 ) Net current period other comprehensive loss ( 8,961,201 ) ( 1,145,535 ) Ending balance $ ( 6,041,174 ) $ 4,374,556 |
Summary of Components of Other Comprehensive Earnings | Three-Month Periods Ended June 30, 2022 2021 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 (losses) gains arising during the period $ ( 5,063,685 ) $ 1,063,373 $ ( 4,000,312 ) $ 1,376,922 $ ( 289,153 ) $ 1,087,769 Reclassification adjustment for losses (gains) included in net earnings 10,355 ( 2,175 ) 8,180 ( 8,584 ) 1,802 ( 6,782 ) Total other comprehensive (loss) earnings $ ( 5,053,330 ) $ 1,061,198 $ ( 3,992,132 ) $ 1,368,338 $ ( 287,351 ) $ 1,080,987 Six-Month Periods Ended June 30, 2022 2021 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 losses arising during the period $ ( 11,343,920 ) $ 2,382,223 $ ( 8,961,697 ) $ ( 1,440,170 ) $ 302,436 $ ( 1,137,734 ) Reclassification adjustment for losses (gains) included in net earnings 628 ( 132 ) 496 ( 9,874 ) 2,073 ( 7,801 ) Total other comprehensive loss $ ( 11,343,292 ) $ 2,382,091 $ ( 8,961,201 ) $ ( 1,450,044 ) $ 304,509 $ ( 1,145,535 ) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnings | Amounts Reclassified from Accumulated Other Comprehensive Earnings Three-Month Periods Ended Six-Month Periods Ended Details about Accumulated Other June 30, June 30, Affected Line Item in the Statement Comprehensive Earnings Component 2022 2021 2022 2021 where Net Earnings is Presented Unrealized losses (gains) on AFS investments: $ 10,355 $ ( 8,584 ) $ 628 $ ( 9,874 ) Net realized investment losses (gains) ( 2,175 ) 1,802 ( 132 ) 2,073 Income tax expense Total reclassification adjustment, net of tax $ 8,180 $ ( 6,782 ) $ 496 $ ( 7,801 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Summary of Recognized Impairments | For the Three-Months Ended June 30, Net Realized Proceeds Gains Losses Gains (Losses) 2022 Fixed maturity securities $ 10,168,949 $ 96,191 $ ( 106,546 ) $ ( 10,355 ) Common stocks 2,740,714 736,152 ( 186,562 ) 549,590 Preferred stocks 38,200 — ( 2,426 ) ( 2,426 ) 2021 Fixed maturity securities $ 2,699,867 $ 18,137 $ ( 9,553 ) $ 8,584 Common stocks 1,277,820 342,408 ( 33,342 ) 309,065 Preferred stocks 262,054 32,256 — 32,256 For the Six-Months Ended June 30, Net Realized Proceeds Gains Losses Gains (Losses) 2022 Fixed maturity securities $ 12,614,074 $ 105,918 $ ( 106,546 ) $ ( 628 ) Common stocks 3,376,818 940,342 ( 194,632 ) 745,710 Preferred stocks 403,708 7,745 ( 8,433 ) ( 688 ) 2021 Fixed maturity securities $ 6,184,298 $ 19,456 $ ( 9,582 ) $ 9,874 Common stocks 1,964,835 554,769 ( 65,739 ) 489,030 Preferred stocks 340,523 37,711 — 37,711 |
Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity | Amortized Cost Fair Value Due in one year or less $ 598,599 $ 600,352 Due after one year through five years 16,090,223 15,725,521 Due after five years through 10 years 18,130,639 16,524,045 Due after 10 years 26,877,655 23,362,604 Asset and mortgage backed securities without a specific due date 38,105,551 35,947,073 Redeemable preferred stocks 215,805 211,905 Total fixed maturity securities $ 100,018,472 $ 92,371,500 |
Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments | December 31, 2021 Gross Unrealized Amortized Cost Fair Value Gains Losses 2022 Fixed maturity securities: U.S. Treasury $ 1,353,242 $ 1,278,703 $ — $ ( 74,539 ) MBS/ABS/CMBS 38,105,551 35,947,073 4,743 ( 2,163,221 ) Corporate 38,820,084 36,002,420 94,211 ( 2,911,876 ) Municipal 21,523,790 18,931,399 129,114 ( 2,721,505 ) Redeemable preferred stock 215,805 211,905 3,840 ( 7,740 ) Total fixed maturity securities $ 100,018,472 $ 92,371,500 $ 231,908 $ ( 7,878,881 ) Gross Unrealized Amortized Cost Fair Value Gains Losses 2021 Fixed maturity securities: U.S. Treasury $ 1,352,044 $ 1,345,992 $ 11,276 $ ( 17,328 ) MBS/ABS/CMBS 40,712,275 41,023,871 607,483 ( 295,887 ) Corporate 38,959,905 41,206,964 2,434,738 ( 187,679 ) Municipal 20,905,194 22,031,831 1,149,998 ( 23,361 ) Redeemable preferred stock 215,805 232,885 17,080 — Total fixed maturity securities $ 102,145,223 $ 105,841,543 $ 4,220,575 $ ( 524,255 ) |
Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position | June 30, 2022 December 31, 2021 12 Months 12 Months < 12 Months & Greater Total < 12 Months & Greater Total Fixed Maturity Securities: U.S. Treasury Fair value $ 630,063 $ 648,641 $ 1,278,704 $ 391,250 $ 291,891 $ 683,141 Amortized cost 652,843 700,400 1,353,243 400,408 300,061 700,469 Unrealized loss ( 22,780 ) ( 51,759 ) ( 74,539 ) ( 9,158 ) ( 8,170 ) ( 17,328 ) MBS/ABS/CMBS Fair value 26,290,190 8,213,254 34,503,444 20,403,757 1,124,095 21,527,852 Amortized cost 27,523,725 9,142,940 36,666,665 20,647,568 1,176,171 21,823,739 Unrealized loss ( 1,233,535 ) ( 929,686 ) ( 2,163,221 ) ( 243,811 ) ( 52,076 ) ( 295,887 ) Corporate Fair value 27,074,435 1,516,798 28,591,233 6,428,166 995,235 7,423,401 Amortized cost 29,745,958 1,757,151 31,503,109 6,590,227 1,020,853 7,611,080 Unrealized loss ( 2,671,523 ) ( 240,353 ) ( 2,911,876 ) ( 162,061 ) ( 25,618 ) ( 187,679 ) Municipal Fair value 13,669,863 211,521 13,881,384 2,676,052 269,247 2,945,299 Amortized cost 16,329,722 273,167 16,602,889 2,695,269 273,391 2,968,660 Unrealized loss ( 2,659,859 ) ( 61,646 ) ( 2,721,505 ) ( 19,217 ) ( 4,144 ) ( 23,361 ) Redeemable preferred stock Fair value 139,155 — 139,155 — — — Cost 146,895 — 146,895 — — — Unrealized loss ( 7,740 ) — ( 7,740 ) — — — Total Fair value 67,803,706 10,590,214 78,393,920 29,899,225 2,680,468 32,579,693 Amortized cost 74,399,143 11,873,658 86,272,801 30,333,472 2,770,476 33,103,948 Unrealized loss ( 6,595,437 ) $ ( 1,283,444 ) $ ( 7,878,881 ) $ ( 434,247 ) $ ( 90,008 ) $ ( 524,255 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a recurring Basis | Assets measured at fair value on a recurring basis as of June 30, 2022, are 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 $ 1,278,703 $ — $ — $ 1,278,703 MBS/ABS/CMBS — 35,947,073 — 35,947,073 Corporate — 36,002,420 — 36,002,420 Municipal — 18,931,399 — 18,931,399 Redeemable preferred stocks — 211,905 — 211,905 Total fixed maturity securities 1,278,703 91,092,797 — 92,371,500 Equity securities Common stocks 18,092,308 — — 18,092,308 Perpetual preferred stocks — 3,033,312 — 3,033,312 Total equity securities 18,092,308 3,033,312 — 21,125,620 Total marketable investments measured at fair value $ 19,371,011 $ 94,126,109 $ — $ 113,497,120 Assets measured at fair value on a recurring basis as of December 31, 2021, are 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 $ 1,345,992 $ — $ — $ 1,345,992 MBS/ABS/CMBS — 41,023,871 — 41,023,871 Corporate — 41,206,964 — 41,206,964 Municipal — 22,031,831 — 22,031,831 Redeemable preferred stocks — 232,885 — 232,885 Total fixed maturity securities 1,345,992 104,495,551 — 105,841,543 Equity securities Common stocks 23,608,197 — — 23,608,197 Perpetual preferred stocks — 2,780,450 — 2,780,450 Total equity securities 23,608,197 2,780,450 — 26,388,647 Total marketable investments measured at fair value $ 24,954,189 $ 107,276,001 $ — $ 132,230,190 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance [Abstract] | |
Summary of the Effects of Reinsurance | Three-Month Periods Ended June 30, 2022 2021 WRITTEN Direct $ 21,228,432 $ 18,516,434 Reinsurance assumed 32,410 ( 34,245 ) Reinsurance ceded ( 2,266,365 ) ( 2,898,257 ) Net $ 18,994,477 $ 15,583,932 EARNED Direct $ 19,231,944 $ 15,576,595 Reinsurance assumed 25,851 ( 26,862 ) Reinsurance ceded ( 2,233,153 ) ( 2,816,926 ) Net $ 17,024,642 $ 12,732,807 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 15,524,735 $ 12,038,753 Reinsurance assumed 2,284 ( 15,194 ) Reinsurance ceded ( 1,718,414 ) ( 3,359,279 ) Net $ 13,808,605 $ 8,664,280 Six-Month Periods Ended June 30, 2022 2021 WRITTEN Direct $ 40,794,615 $ 33,688,469 Reinsurance assumed 69,358 ( 6,347 ) Reinsurance ceded ( 4,536,993 ) ( 5,371,425 ) Net $ 36,326,980 $ 28,310,697 EARNED Direct $ 37,496,644 $ 30,058,645 Reinsurance assumed 67,479 11,960 Reinsurance ceded ( 4,522,804 ) ( 5,289,085 ) Net $ 33,041,319 $ 24,781,520 LOSS AND SETTLEMENT EXPENSES INCURRED Direct $ 28,137,877 $ 22,806,187 Reinsurance assumed 47,693 10,251 Reinsurance ceded ( 4,181,764 ) ( 6,349,452 ) Net $ 24,003,806 $ 16,466,986 |
Unpaid Losses and Settlement _2
Unpaid Losses and Settlement Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Unpaid Losses and Settlement Expenses [Abstract] | |
Reconciliation of Unpaid Losses and Settlement Expenses | For the Three-Months Ended June 30, (In thousands) 2022 2021 Unpaid losses and settlement expense - beginning of the period: Gross $ 67,407 $ 61,808 Less: Ceded 16,089 14,011 Net 51,318 47,797 Increase in incurred losses and settlement expense: Current year 11,960 8,094 Prior years 1,849 570 Total incurred 13,809 8,664 Deduct: Loss and settlement expense payments for claims incurred: Current year 4,605 3,523 Prior years 5,667 4,998 Total paid 10,272 8,521 Net unpaid losses and settlement expense - end of the period 54,855 47,940 Plus: Reinsurance recoverable on unpaid losses 15,526 15,918 Gross unpaid losses and settlement expense - end of the period $ 70,381 $ 63,858 For the Six-Months Ended June 30, (In thousands) 2022 2021 Unpaid losses and settlement expense - beginning of the period: Gross $ 61,835 $ 61,576 Less: Ceded 14,521 13,020 Net 47,314 48,556 Increase in incurred losses and settlement expense: Current year 19,485 15,236 Prior years 4,519 1,231 Total incurred 24,004 16,467 Deduct: Loss and settlement expense payments for claims incurred: Current year 5,994 4,811 Prior years 10,469 12,272 Total paid 16,463 17,083 Net unpaid losses and settlement expense - end of the period 54,855 47,940 Plus: Reinsurance recoverable on unpaid losses 15,526 15,918 Gross unpaid losses and settlement expense - end of the period $ 70,381 $ 63,858 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the Three-Months Ended June 30, 2022 2021 Provision for income taxes at the statutory federal tax rates $ ( 1,100,569 ) $ 151,435 Increase (reduction) in taxes resulting from: Dividends received deduction ( 11,117 ) ( 7,967 ) Tax-exempt interest income ( 12,961 ) ( 14,753 ) Proration of tax-exempt interest and dividends received deduction 5,828 5,499 Nondeductible expenses 10,119 24,069 Officer life insurance, net ( 3,335 ) 167 Total $ ( 1,112,035 ) $ 158,450 For the Six-Months Ended June 30, 2022 2021 Provision for income taxes at the statutory federal tax rates $ ( 1,144,657 ) $ 460,532 Increase (reduction) in taxes resulting from: Dividends received deduction ( 22,398 ) ( 16,075 ) Tax-exempt interest income ( 26,312 ) ( 29,547 ) Proration of tax-exempt interest and dividends received deduction 11,798 11,063 Nondeductible expenses 27,411 42,095 Officer life insurance, net ( 7,682 ) 333 Total $ ( 1,161,840 ) $ 468,401 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Employee Benefits [Abstract] | |
Restricted Stock Unit, Activity | RSUs Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 $ 259,059 $ 13.30 Granted 219,945 17.05 Vested ( 97,747 ) 13.47 Nonvested at June 30, 2022 $ 381,257 $ 15.17 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment | $ 0 | $ 0 | ||
Federal tax rate | 21% | 21% | ||
Operating segments | segment | 1 | |||
Tax (benefit) expense | $ (2,382,091) | $ (304,509) | ||
Premiums [Member] | Geographic Concentration Risk [Member] | Illinois [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk | 23.20% | 24.80% | 23.20% | 24.80% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Summary of Property, Plant and Equipment) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 9,584,453 | $ 9,387,273 |
Accumulated depreciation | (6,378,208) | (6,243,055) |
Net property and equipment | 3,206,245 | 3,144,218 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 494,770 | 507,889 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 516,741 | 512,268 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,555,944 | 4,350,118 |
Home Office [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 4,016,998 | $ 4,016,998 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Accumulated Other Comprehensive Earnings (Loss)) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net current period other comprehensive loss | $ (3,992,132) | $ 1,080,987 | $ (8,961,201) | $ (1,145,535) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 2,920,027 | 5,520,091 | ||
Other comprehensive loss before reclassification | (8,961,697) | (1,137,734) | ||
Amount reclassified from accumulated other comprehensive loss | 496 | (7,801) | ||
Net current period other comprehensive loss | (8,961,201) | (1,145,535) | ||
Balance | $ (6,041,174) | $ 4,374,556 | $ (6,041,174) | $ 4,374,556 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Summary of Components of Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Unrealized holding losses arising during the period, Pre-tax | $ (5,063,685) | $ 1,376,922 | $ (11,343,920) | $ (1,440,170) |
Reclassification adjustment fo gains included in net earnings, Pre-tax | 10,355 | (8,584) | 628 | (9,874) |
Total other comprehensive loss, Pre-tax | (5,053,330) | 1,368,338 | (11,343,292) | (1,450,044) |
Unrealized holding losses arising during the period, Tax | 1,063,373 | (289,153) | 2,382,223 | 302,436 |
Reclassification adjustment for gains included in net earnings, Tax | (2,175) | 1,802 | (132) | 2,073 |
Total other comprehensive loss, Tax | 1,061,198 | (287,351) | 2,382,091 | 304,509 |
Unrealized holding losses arising during the period, After-tax | (4,000,312) | 1,087,769 | (8,961,697) | (1,137,734) |
Reclassification adjustment for gains included in net earnings, After-tax | 8,180 | (6,782) | 496 | (7,801) |
Net current period other comprehensive loss | $ (3,992,132) | $ 1,080,987 | $ (8,961,201) | $ (1,145,535) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Schedule of Reclassifications Out of Accumulated Other Comprehensive Earnings) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized investment losses (gains) | $ (536,809) | $ (349,906) | $ (744,394) | $ (536,615) |
Income tax expense | (1,112,035) | 158,450 | (1,161,840) | 468,401 |
Net income (loss) | 4,288,907 | (1,724,607) | ||
Unrealized (Gains) Losses 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 losses (gains) | 10,355 | (8,584) | 628 | (9,874) |
Income tax expense | (2,175) | 1,802 | (132) | 2,073 |
Net income (loss) | $ 8,180 | $ (6,782) | $ 496 | $ (7,801) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) item | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2021 USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Unrealized losses for 12 consecutive months or longer | $ 1,283,444 | $ 1,283,444 | $ 90,008 | |||
OTTI losses recognized in other comprehensive earnings | 0 | |||||
Other invested assets | 3,792,362 | 3,792,362 | 3,086,568 | |||
Notes Receivable [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Other invested assets | 1,052,733 | 1,052,733 | 1,066,066 | |||
Federal Home Loan Bank of Chicago [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Interest Receivable | 5,185 | 5,185 | ||||
Other invested assets | 425,000 | 425,000 | 300,000 | |||
Allowance recorded | 0 | $ 0 | 0 | $ 0 | ||
Debt Instrument, Accumulated Payments Received | 18,518 | 18,518 | ||||
Accrued Escrow And Interest Receivable | 6,970 | 6,970 | ||||
Equity Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Unrealized gain (loss) | (3,804,511) | $ 728,819 | (5,097,203) | $ 1,605,135 | ||
MBS/ABS/CMBS [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair value | 11,461,525 | 11,461,525 | 14,351,099 | |||
Unrealized losses for 12 consecutive months or longer | 929,686 | 929,686 | 52,076 | |||
MBS/ABS/CMBS [Member] | Residential Mortgage Backed Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair value | 15,129,817 | 15,129,817 | 14,975,101 | |||
MBS/ABS/CMBS [Member] | Commercial Mortgage Backed Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair value | $ 9,355,731 | $ 9,355,731 | 11,697,671 | |||
Fixed Maturity Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of securities in an unrealized loss position | item | 201 | 201 | ||||
Number of securities in an unrealized loss position for 12 consecutive months or longer | item | 21 | 21 | ||||
Unrealized losses for 12 consecutive months or longer | $ 1,283,444 | $ 1,283,444 | ||||
Privately Help Investments [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Other invested assets | 2,314,629 | 2,314,629 | $ 1,720,502 | |||
Private Investment Fund [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Other invested assets | $ 10,000,000 | |||||
Significant Unobservable Inputs (Level 3) | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Fair value | $ 0 | $ 0 | ||||
Minimum [Member] | Federal Home Loan Bank of Chicago [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Interest rate | 3.90% | 3.90% | ||||
Maximum [Member] | Federal Home Loan Bank of Chicago [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Interest rate | 6.50% | 6.50% |
Investments (Summary of Recogni
Investments (Summary of Recognized Impairments) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Proceeds | $ 12,614,074 | $ 6,184,298 | ||
Fixed Maturity Securities [Member] | ||||
Proceeds | $ 10,168,949 | $ 2,699,867 | 12,614,074 | 6,184,298 |
Gains | 96,191 | 18,137 | 105,918 | 19,456 |
Losses | (106,546) | (9,553) | (106,546) | (9,582) |
Net Realized Gain/(Losses) | (10,355) | 8,584 | (628) | 9,874 |
Common Stocks [Member] | ||||
Proceeds | 2,740,714 | 1,277,820 | 3,376,818 | 1,964,835 |
Gains | 736,152 | 342,408 | 940,342 | 554,769 |
Losses | (186,562) | (33,342) | (194,632) | (65,739) |
Net Realized Gain/(Losses) | 549,590 | 309,065 | 745,710 | 489,030 |
Preferred Stock [Member] | ||||
Proceeds | 38,200 | 262,054 | 403,708 | 340,523 |
Gains | 32,256 | 7,745 | 37,711 | |
Losses | (2,426) | (8,433) | ||
Net Realized Gain/(Losses) | $ (2,426) | $ 32,256 | $ (688) | $ 37,711 |
Investments (Summary of Amortiz
Investments (Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, amortized cost | $ 598,599 | |
Due after one year through five years, amortized cost | 16,090,223 | |
Due after five years through 10 years, amortized cost | 18,130,639 | |
Due after 10 years, amortized cost | 26,877,655 | |
Fixed maturity securities, amortized cost | 100,018,472 | $ 102,145,223 |
Due in one year or less, fair value | 600,352 | |
Due after one year through five years, fair value | 15,725,521 | |
Due after five years through 10 years, fair value | 16,524,045 | |
Due after 10 years, fair value | 23,362,604 | |
Fixed maturity securities, fair value | 92,371,500 | 105,841,543 |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other, amortized cost | 38,105,551 | |
Other, fair value | 35,947,073 | |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other, amortized cost | 215,805 | |
Fixed maturity securities, amortized cost | 215,805 | 215,805 |
Other, fair value | 211,905 | |
Fixed maturity securities, fair value | $ 211,905 | $ 232,885 |
Investments (Schedule of Cost o
Investments (Schedule of Cost or Amortized Cost and Estimated Fair Values of Investments) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | $ 100,018,472 | $ 102,145,223 |
Fixed maturity securities, fair value | 92,371,500 | 105,841,543 |
Fixed maturity securities, gross unrealized gains | 231,908 | 4,220,575 |
Fixed maturity securities, gross unrealized losses | (7,878,881) | (524,255) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 1,353,242 | 1,352,044 |
Fixed maturity securities, fair value | 1,278,703 | 1,345,992 |
Fixed maturity securities, gross unrealized gains | 11,276 | |
Fixed maturity securities, gross unrealized losses | (74,539) | (17,328) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 38,105,551 | 40,712,275 |
Fixed maturity securities, fair value | 35,947,073 | 41,023,871 |
Fixed maturity securities, gross unrealized gains | 4,743 | 607,483 |
Fixed maturity securities, gross unrealized losses | (2,163,221) | (295,887) |
Corporate Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 38,820,084 | 38,959,905 |
Fixed maturity securities, fair value | 36,002,420 | 41,206,964 |
Fixed maturity securities, gross unrealized gains | 94,211 | 2,434,738 |
Fixed maturity securities, gross unrealized losses | (2,911,876) | (187,679) |
State And Local Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 21,523,790 | 20,905,194 |
Fixed maturity securities, fair value | 18,931,399 | 22,031,831 |
Fixed maturity securities, gross unrealized gains | 129,114 | 1,149,998 |
Fixed maturity securities, gross unrealized losses | (2,721,505) | (23,361) |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed maturity securities, amortized cost | 215,805 | 215,805 |
Fixed maturity securities, fair value | 211,905 | 232,885 |
Fixed maturity securities, gross unrealized gains | 3,840 | $ 17,080 |
Fixed maturity securities, gross unrealized losses | $ (7,740) |
Investments (Summary of Impairm
Investments (Summary of Impairment Analysis and Value of Securities in an Unrealized Loss Position) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 67,803,706 | $ 29,899,225 |
Less than 12 months, Cost or amortized cost | 74,399,143 | 30,333,472 |
Less than 12 months, unrealized loss | (6,595,437) | (434,247) |
Greater than 12 months, fair value | 10,590,214 | 2,680,468 |
Greater than 12 months, Cost or amortized cost | 11,873,658 | 2,770,476 |
Greater than 12 months, unrealized loss | (1,283,444) | (90,008) |
Fair value | 78,393,920 | 32,579,693 |
Cost or amortized cost | 86,272,801 | 33,103,948 |
Unrealized loss | (7,878,881) | (524,255) |
US Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 630,063 | 391,250 |
Less than 12 months, Cost or amortized cost | 652,843 | 400,408 |
Less than 12 months, unrealized loss | (22,780) | (9,158) |
Greater than 12 months, fair value | 648,641 | 291,891 |
Greater than 12 months, Cost or amortized cost | 700,400 | 300,061 |
Greater than 12 months, unrealized loss | (51,759) | (8,170) |
Fair value | 1,278,704 | 683,141 |
Cost or amortized cost | 1,353,243 | 700,469 |
Unrealized loss | (74,539) | (17,328) |
MBS/ABS/CMBS [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 26,290,190 | 20,403,757 |
Less than 12 months, Cost or amortized cost | 27,523,725 | 20,647,568 |
Less than 12 months, unrealized loss | (1,233,535) | (243,811) |
Greater than 12 months, fair value | 8,213,254 | 1,124,095 |
Greater than 12 months, Cost or amortized cost | 9,142,940 | 1,176,171 |
Greater than 12 months, unrealized loss | (929,686) | (52,076) |
Fair value | 34,503,444 | 21,527,852 |
Cost or amortized cost | 36,666,665 | 21,823,739 |
Unrealized loss | (2,163,221) | (295,887) |
Corporate Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 27,074,435 | 6,428,166 |
Less than 12 months, Cost or amortized cost | 29,745,958 | 6,590,227 |
Less than 12 months, unrealized loss | (2,671,523) | (162,061) |
Greater than 12 months, fair value | 1,516,798 | 995,235 |
Greater than 12 months, Cost or amortized cost | 1,757,151 | 1,020,853 |
Greater than 12 months, unrealized loss | (240,353) | (25,618) |
Fair value | 28,591,233 | 7,423,401 |
Cost or amortized cost | 31,503,109 | 7,611,080 |
Unrealized loss | (2,911,876) | (187,679) |
State And Local Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 13,669,863 | 2,676,052 |
Less than 12 months, Cost or amortized cost | 16,329,722 | 2,695,269 |
Less than 12 months, unrealized loss | (2,659,859) | (19,217) |
Greater than 12 months, fair value | 211,521 | 269,247 |
Greater than 12 months, Cost or amortized cost | 273,167 | 273,391 |
Greater than 12 months, unrealized loss | (61,646) | (4,144) |
Fair value | 13,881,384 | 2,945,299 |
Cost or amortized cost | 16,602,889 | 2,968,660 |
Unrealized loss | (2,721,505) | $ (23,361) |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Greater than 12 months, unrealized loss | (1,283,444) | |
Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 139,155 | |
Less than 12 months, Cost or amortized cost | 146,895 | |
Less than 12 months, unrealized loss | (7,740) | |
Greater than 12 months, fair value | ||
Greater than 12 months, Cost or amortized cost | ||
Greater than 12 months, unrealized loss | ||
Fair value | 139,155 | |
Cost or amortized cost | 146,895 | |
Unrealized loss | $ (7,740) |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 113,497,120 | $ 132,230,190 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 0 | $ 0 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary of Assets Measured at Fair Value on a recurring Basis) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 113,497,120 | 132,230,190 |
Fair Value, Measurements, Recurring [Member] | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,278,703 | 1,345,992 |
Fair Value, Measurements, Recurring [Member] | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 35,947,073 | 41,023,871 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 36,002,420 | 41,206,964 |
Fair Value, Measurements, Recurring [Member] | State And Local Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 18,931,399 | 22,031,831 |
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 211,905 | 232,885 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 92,371,500 | 105,841,543 |
Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 18,092,308 | 23,608,197 |
Fair Value, Measurements, Recurring [Member] | Perpetual Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 3,033,312 | 2,780,450 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 21,125,620 | 26,388,647 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 19,371,011 | 24,954,189 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,278,703 | 1,345,992 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 1,278,703 | 1,345,992 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stocks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 18,092,308 | 23,608,197 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 18,092,308 | 23,608,197 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 94,126,109 | 107,276,001 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | MBS/ABS/CMBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 35,947,073 | 41,023,871 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Corporate Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 36,002,420 | 41,206,964 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | State And Local Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 18,931,399 | 22,031,831 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 211,905 | 232,885 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Fixed Maturity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 91,092,797 | 104,495,551 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Perpetual Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | 3,033,312 | 2,780,450 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total AFS securities | $ 3,033,312 | $ 2,780,450 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | May 03, 2021 | Aug. 03, 2020 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 15,000,000 | $ 18,455,342 | ||||
Maximum borrowing capacity | $ 42,000,000 | |||||
Line Of Credit Facility Maximum Borrowing Capacity, Percent | 25% | |||||
Federal Home Loan Bank of Chicago [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.40% | |||||
Collateral | $ 19,300,000 | |||||
Term of debt instrument | 5 years | |||||
FHLBC advances | $ 6,000,000 | |||||
Securities pledged | $ 6,800,000 | |||||
Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 0 | 0 | ||||
Collateral | $ 4,000,000 | |||||
Maximum borrowing capacity | 2,000,000 | |||||
Debt Obligation 2 [Member] | Federal Home Loan Bank of Chicago [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 4,000,000 | |||||
Interest rate | 0.74% | |||||
Debt Obligation 3 [Member] | Federal Home Loan Bank of Chicago [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 5,000,000 | |||||
Interest rate | 0% | |||||
Debt Obligation 4 [Member] | Federal Home Loan Bank of Chicago [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 5,000,000 | |||||
Interest rate | 1.36% | |||||
Line Of Credit, July 2022 [Member] | Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Covenant, Adjusted Capital | $ 21 | |||||
Maximum borrowing capacity | $ 4,000,000 | |||||
Line Of Credit, July 2022 [Member] | Prime Rate [Member] | Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 0.50% | |||||
Line Of Credit, July 2022 [Member] | Prime Rate [Member] | Minimum [Member] | Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 4.75% | |||||
Debt Obligation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 3,500,000 | |||||
Interest rate | 3.65% | |||||
Collateral | $ 1,000,000 | |||||
Debt Obligation [Member] | Bofi Federal Bank B & C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 15,000,000 | $ 18,455,342 | ||||
Current interest rate | 1.20% | 1.30% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Casualty Business [Member] | ||
Ceded Credit Risk [Line Items] | ||
Individual risk | $ 1,000,000 | |
Workers Compensation [Member] | ||
Ceded Credit Risk [Line Items] | ||
Individual risk | $ 750,000 |
Reinsurance (Summary of the Eff
Reinsurance (Summary of the Effects of Reinsurance) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
WRITTEN | ||||
Direct | $ 21,228,432 | $ 18,516,434 | $ 40,794,615 | $ 33,688,469 |
Reinsurance assumed | 32,410 | (34,245) | 69,358 | (6,347) |
Reinsurance ceded | (2,266,365) | (2,898,257) | (4,536,993) | (5,371,425) |
Net | 18,994,477 | 15,583,932 | 36,326,980 | 28,310,697 |
EARNED | ||||
Direct | 19,231,944 | 15,576,595 | 37,496,644 | 30,058,645 |
Reinsurance assumed | 25,851 | (26,862) | 67,479 | 11,960 |
Reinsurance ceded | (2,233,153) | (2,816,926) | (4,522,804) | (5,289,085) |
Net | 17,024,642 | 12,732,807 | 33,041,319 | 24,781,520 |
LOSSES AND SETTLEMENT EXPENSES INCURRED | ||||
Direct | 15,524,735 | 12,038,753 | 28,137,877 | 22,806,187 |
Reinsurance assumed | 2,284 | (15,194) | 47,693 | 10,251 |
Reinsurance ceded | (1,718,414) | (3,359,279) | (4,181,764) | (6,349,452) |
Total incurred | $ 13,808,605 | $ 8,664,280 | $ 24,003,806 | $ 16,466,986 |
Unpaid Losses and Settlement _3
Unpaid Losses and Settlement Expenses (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 claim | Dec. 31, 2019 claim | Dec. 31, 2017 claim | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Number Of Claims | claim | 1 | 1 | 2 | ||
Liquor Liability And Business Owners Liability [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Increase in net unpaid losses and settlement expense | $ 4,519,000 | ||||
Liquor Liability And Umbrella Liability [Member] | |||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||||
Increase in net unpaid losses and settlement expense | $ 1,231,000 |
Unpaid Losses and Settlement _4
Unpaid Losses and Settlement Expenses (Reconciliation of Unpaid Losses and Settlement Expenses) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Unpaid losses and settlement expense - beginning of the period: | ||||||||
Gross | $ 67,407,000 | $ 61,808,000 | $ 61,834,809 | $ 61,576,000 | ||||
Less: Ceded | 16,089,000 | 14,011,000 | 14,521,219 | 13,020,000 | ||||
Net | 54,855,000 | 47,940,000 | 54,855,000 | 47,940,000 | $ 51,318,000 | $ 47,314,000 | $ 47,797,000 | $ 48,556,000 |
Increase in incurred losses and settlement expense: | ||||||||
Current year | 11,960,000 | 8,094,000 | 19,485,000 | 15,236,000 | ||||
Prior years | 1,849,000 | 570,000 | 4,519,000 | 1,231,000 | ||||
Total incurred | 13,808,605 | 8,664,280 | 24,003,806 | 16,466,986 | ||||
Deduct: Loss and settlement expense payments for claims incurred: | ||||||||
Current year | 4,605,000 | 3,523,000 | 5,994,000 | 4,811,000 | ||||
Prior years | 5,667,000 | 4,998,000 | 10,469,000 | 12,272,000 | ||||
Total paid | 10,272,000 | 8,521,000 | 16,463,000 | 17,083,000 | ||||
Net unpaid losses and settlement expense - end of the period | 54,855,000 | 47,940,000 | 54,855,000 | 47,940,000 | ||||
Plus: Reinsurance recoverable on unpaid losses | 15,526,114 | 15,918,000 | 15,526,114 | 15,918,000 | ||||
Gross unpaid losses and settlement expense - end of the period | $ 70,381,083 | $ 63,858,000 | $ 70,381,083 | $ 63,858,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2022 USD ($) item | Jun. 30, 2021 | Dec. 31, 2021 USD ($) | |
Income Taxes [Abstract] | |||
Federal tax rate | 21% | 21% | |
Effective tax rate | 21.30% | 21.40% | |
Capital loss carryforward | $ 0 | $ 0 | |
Operating loss carryforward | $ 0 | $ 0 | |
Number of open exams | item | 0 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes [Abstract] | ||||
Provision for income taxes at the statutory federal tax rates | $ (1,100,569) | $ 151,435 | $ (1,144,657) | $ 460,532 |
Increase (reduction) in taxes resulting from: | ||||
Dividends received deduction | (11,117) | (7,967) | (22,398) | (16,075) |
Tax-exempt interest income | (12,961) | (14,753) | (26,312) | (29,547) |
Proration of tax-exempt interest and dividends received deduction | 5,828 | 5,499 | 11,798 | 11,063 |
Nondeductible expenses | 10,119 | 24,069 | 27,411 | 42,095 |
Officer life insurance, net | (3,335) | 167 | (7,682) | 333 |
Total income tax (benefit) expense | $ (1,112,035) | $ 158,450 | $ (1,161,840) | $ 468,401 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Employee stock ownership plan, shares | 350,000 | |
Employee stock ownership plan, share purchase price | $ 10 | |
Compensation expense | $ 194,763 | $ 174,613 |
Shares committed to be released | 11,622 | 11,622 |
Contributions to ESOP | $ 92,080 | $ 0 |
Shares granted | 219,945 | |
Fair value of shares granted | $ 17.05 | |
Restricted Stock Units (RSUs) | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Vesting percentage | 33% | |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Vesting percentage | 33% | |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Three [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Vesting percentage | 33% |
Employee Benefits (Restricted S
Employee Benefits (Restricted Stock Unit, Activity) (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
RSU | |
Nonvested | shares | 259,059 |
Granted | shares | 219,945 |
Vested | shares | 97,747 |
Nonvested | shares | 381,257 |
Weighted Average Grant Date Fair Value | |
Nonvested | $ / shares | $ 13.30 |
Granted | $ / shares | 17.05 |
Vested | $ / shares | 13.47 |
Nonvested | $ / shares | $ 15.17 |