Midwest Holding (MDWT) 10-Q15 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 15, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity File Number	001-39812
Entity Registrant Name	MIDWEST HOLDING INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0362426
Entity Address, Address Line One	2900 S. 70th Street, Suite 400
Entity Address, City or Town	Lincoln
Entity Address, State or Province	NE
Entity Address, Postal Zip Code	68506
City Area Code	402
Local Phone Number	817-5701
Title of 12(b) Security	Voting Common Stock, $0.001 par value
Trading Symbol	MDWT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,728,601
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000355379
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Fixed maturities, available for sale, at fair value (amortized cost: $1,417,548 in 2023, and $1,269,735 in 2022. Allowance for credit losses of $10,314 in 2023) (See Note 2)	$ 1,343,668	$ 1,214,635
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	333,466	227,047
Derivative instruments (See Note 3)	23,814	15,934
Equity securities, at fair value (cost: $5,592 in 2023 and $5,592 in 2022)	5,178	5,111
Other invested assets (Allowance for credit losses of $1,173 in 2023.)	83,580	112,431
Preferred stock	32,714	31,415
Deposits and notes receivable	10,447	8,359
Policy loans	23	25
Total investments	1,832,890	1,614,957
Cash and cash equivalents	170,073	191,414
Deferred acquisition costs, net	48,150	43,433
Premiums receivable	368	362
Accrued investment income	31,590	25,165
Reinsurance recoverables (See Note 7)	55,202	20,190
Property and equipment, net	1,805	1,897
Receivable for securities sold		10,518
Other assets	4,397	12,495
Total assets	2,144,475	1,920,431
Liabilities:
Benefit reserves	12,739	12,945
Deposit-type contracts (See Note 5)	1,963,786	1,743,348
Other policy-holder funds	9,267	4,105
Notes payable (See Note 6)	25,000	25,000
Deferred gain on coinsurance transactions	39,952	38,063
Payable for securities purchased	22,677	8,872
Other liabilities	46,204	53,721
Total liabilities	2,119,625	1,886,054
Stockholders' Equity:
Preferred stock, $0.001 par value; authorized 2,000,000 shares; no shares issued and outstanding as of March 31, 2023 or December 31, 2022
Voting common stock, $0.001 par value; authorized 20,000,000 shares; 3,728,601 shares issued and outstanding as of March 31, 2023, and 3,727,976 as of December 31, 2022, respectively; non-voting common stock, $0.001 par value, 2,000,000 shares authorized; no shares issued and outstanding March 31, 2023 and December 31, 2022, respectively	4	4
Additional paid-in capital	138,789	138,482
Treasury stock	(175)	(175)
Accumulated deficit	(63,863)	(63,019)
Accumulated other comprehensive (loss)	(61,928)	(51,386)
Total Midwest Holding Inc.'s stockholders' equity	12,827	23,906
Noncontrolling interests	12,023	10,471
Total stockholders' equity	24,850	34,377
Total liabilities and stockholders' equity	$ 2,144,475	$ 1,920,431

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Amortized Cost	$ 1,417,548	$ 1,269,735
Fixed maturities, Allowance for credit losses	10,314
Mortgage loan on real estate, Allowance for credit losses	2,709
Equity securities, amortized cost	5,592	$ 5,592
Other invested assets, Allowance for credit losses	$ 1,173
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	3,728,601	3,727,976
Common stock, shares outstanding	3,728,601	3,727,976
Non Voting Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Non Voting Common Stock, Shares Authorized	2,000,000	2,000,000
Non Voting Common Stock, Shares Issued	0	0
Non Voting Common Stock, Shares Outstanding	0	0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues
Investment income, net of expenses	$ 19,193	$ 6,242
Net realized gain (loss) on investments (See Note 2)	16,287	(6,175)
Amortization of deferred gain on reinsurance transactions	1,573	970
Policy administration fees	639	348
Service fee revenue, net of expenses	654	1,098
Other revenue	106	100
Total revenue	38,452	2,583
Expenses
Interest credited	7,689	(6,674)
Benefits	958
Amortization of deferred acquisition costs	1,703	851
Salaries and benefits	5,503	4,318
Other operating expenses	13,912	(1,822)
Total expenses	29,765	(3,327)
Net income before income tax expense	8,687	5,910
Income tax expense (See Note 8)	(2,907)	(4,722)
Net income after income tax expense	5,780	1,188
Less: Income attributable to noncontrolling interest	1,951	1,001
Net income attributable to Midwest Holding Inc.	3,829	187
Comprehensive loss:
Unrealized losses on investments arising during the three months ended March 31, 2023 and 2022, net of offsets, (tax ($10,300) and ($2,600), respectively)	(10,552)	(9,703)
Less: Reclassification adjustment for net realized losses on investments, net of offsets (net of tax ($2,700) and ($136), respectively)	10	(512)
Other comprehensive loss	(10,542)	(10,215)
Comprehensive loss:	$ (6,713)	$ (10,028)
Income per common share
Basic (in dollars per share)	$ 1.03	$ 0.05
Diluted (in dollars per share)	$ 1.01	$ 0.05

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Consolidated Statements of Comprehensive Loss
Unrealized losses on investments arising during period, net of tax	$ (10,300)	$ (2,600)
Reclassification adjustment for net realized losses on investments, net of tax	$ (2,700)	$ (136)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Treasury Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit Cumulative effect of change in accounting estimate	Accumulated Deficit	AOCI	Noncontrolling Interest	Cumulative effect of change in accounting estimate	Total
Balance at Dec. 31, 2021	$ (175)	$ 4	$ 138,452		$ (70,159)	$ 2,634	$ 15,000		$ 85,756
Net income					187				187
Employee stock options			31						31
Unrealized losses on investments, net of taxes						(10,215)			(10,215)
Noncontrolling interest							3,432		3,432
Balance at Mar. 31, 2022	(175)	4	138,483		(69,972)	(7,581)	18,432		79,191
Balance at Dec. 31, 2022	(175)	4	138,482		(63,019)	(51,386)	10,471		34,377
Net income					3,829				3,829
Employee stock options			307						307
Unrealized losses on investments, net of taxes						(10,542)			(10,542)
Noncontrolling interest							1,552		1,552
Balance at Mar. 31, 2023	$ (175)	$ 4	$ 138,789	$ (4,673)	$ (63,863)	$ (61,928)	$ 12,023	$ (4,673)	$ 24,850

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Income attributable to Midwest Holding Inc.	$ 3,829	$ 187
Adjustments to arrive at cash provided by operating activities:
Net premium and discount on investments	9,253	(639)
Depreciation and amortization	95	11
Stock options	307	32
Amortization of deferred acquisition costs	4,788	851
Deferred acquisition costs capitalized	(9,912)	(4,464)
Net realized (loss) gain on investments	(16,287)	6,175
Deferred gain on coinsurance transactions	1,889	1,460
Changes in operating assets and liabilities:
Reinsurance recoverable	(27,809)	5,316
Interest and dividends due and accrued	(6,425)	418
Premiums receivable	(6)	(10)
Deposit-type liabilities	56,963	(16,151)
Policy liabilities	4,955	897
Receivable and payable for securities	24,323	11,702
Other assets and liabilities	437	4,522
Net cash provided by operating activities	46,400	10,307
Fixed maturities available for sale:
Purchases	(193,329)	(226,416)
Proceeds from sale or maturity	50,382	140,758
Mortgage loans on real estate, held for investment
Purchases	(131,820)	(19,699)
Proceeds from sale	22,108	30,835
Derivatives
Purchases	(3,716)	(4,691)
Proceeds from sale	4,197	1,388
Equity securities
Purchases	(68)
Proceeds from sale		142
Other invested assets
Purchases		(23,768)
Proceeds from sale	22,202	3,334
Purchase of restricted common stock	(1,425)
Preferred stock
Purchases	(1,299)	(1,549)
Net change in policy loans	2	(3)
Net purchases of property and equipment		(195)
Net cash used in investing activities	(232,766)	(99,864)
Cash Flows from Financing Activities:
Net transfer to noncontrolling interest	1,552	3,432
Receipts on deposit-type contracts	194,551	98,111
Withdrawals on deposit-type contracts	(31,078)	(9,315)
Net cash provided by financing activities	165,025	92,228
Net (decrease) increase in cash and cash equivalents	(21,341)	2,671
Cash and cash equivalents:
Beginning	191,414	142,013
Ending	$ 170,073	144,684
Supplementary information
Cash paid for taxes		$ 250

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies	MIDWEST HOLDING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Midwest Holding Inc. (“Midwest,” “the Company,” “we,” “our,” or “us”) was incorporated in Nebraska on October 31, 2003 for the primary purpose of operating a financial services company. The Company redomesticated from the State of Nebraska to the State of Delaware on August 27, 2020. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiaries, American Life & Security Corp. (“American Life”), and 1505 Capital LLC (“1505 Capital”) as well as through its sponsored captive reinsurance company, Seneca Reinsurance Company, LLC (“Seneca Re”). American Life is a Nebraska-domiciled life insurance company, that was licensed to sell, underwrite, and market life insurance and annuity products in 24 states and the District of Columbia as of March 31, 2023. Effective March 12, 2020, Seneca Re, a Vermont limited liability company, was formed by Midwest to operate as a sponsored captive insurance company for the purpose of insuring and reinsuring various types of risks of its participants through one or more protected cells and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont insurance regulations. On March 30, 2020, Seneca Re received its Certification of Authority to transact the business of a captive insurance company. On May 12, 2020, Midwest contributed $0.3 million to Seneca Re for a 100% ownership interest. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re and as of March 31, 2023, Seneca Re has three incorporated cells, Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Re Incorporated Cell 2021-03 (“SRC3”), which are consolidated in our financial statements. Additionally, Seneca Re Incorporated Cell 2022-04 (“SRC4) was established on September 30, 2022, however management has determined that the entity does not qualify for consolidation into our financial statements. Midwest initially owned a 100% interest in SRC1, however on December 30, 2021, Midwest closed the sale of approximately 70% of SRC1 to a subsidiary of ORIX Corporation USA (“ORIX USA”) for $15.0 million. Under the terms of the agreement, Midwest now holds a 30% ownership interest in SRC1. ORIX Advisers, LLC, another subsidiary of ORIX USA, is the manager of the assets underlying SRC1’s reinsurance obligations going forward, replacing Midwest’s asset management arm, 1505 Capital. On July 27, 2020, American Life entered into a reinsurance agreement (the “Reinsurance Agreement”) with a new protected cell formed by Seneca Re (Seneca Incorporated Cell, LLC 2020-02 (“SRC2”)). SRC2 was capitalized by Crestline Management, L.P. (“Crestline”), a significant shareholder of Midwest via a Crestline subsidiary, Crestline Re SPC1. The Reinsurance Agreement, which was effective as of April 24, 2020, was entered into pursuant to a Master Letter Agreement (the “Master Agreement”) dated and effective as of April 24, 2020, among American Life, Seneca Re and Crestline. The Reinsurance Agreement supports American Life’s new business production by providing reinsurance capacity for American Life to write certain kinds of fixed and multi-year guaranteed annuity products. Concurrently with the Reinsurance Agreement: ● American Life and SRC2 each entered into investment management agreements with Crestline, pursuant to which Crestline manages the assets that support the reinsured business; and ● American Life and SRC2 entered into a trust agreement whereby SRC2 maintains for American Life’s benefit a trust account that supports the reinsured business. Under the Master Agreement, Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of American Life arising from its multi-year guaranteed annuities (“MYGA”) and a quota share percentage of 40% of the liabilities of American Life arising from its fixed indexed annuity (“FIA”) products. The Master Agreement expires on April 24, 2023. In addition, pursuant to the Master Agreement, the parties thereto have agreed to enter into one or more separate agreements whereby, among other things and subject to certain conditions, American Life will agree to reinsure additional new business production to one or more reinsurers formed and/or capitalized by Crestline, Midwest or an appropriate affiliate will be compensated for providing administrative services to certain advisory clients of Crestline, and American Life will consider investing in certain assets originated or sourced by Crestline. On June 26, 2021, the Nebraska Department of Insurance (‘NDOI”) issued its non-disapproval of the Modified Coinsurance Agreement (“Modco AEG Agreement”) of American Life with American Republic Insurance Company (“AEG”), an Iowa domiciled reinsurance company. The agreement closed on June 30, 2021. Under the Modco AEG Agreement, American Life cedes to AEG, on a modified coinsurance basis, 20% quota share of certain liabilities with respect to its MYGA-5 business and an initial 20% quota share of certain liabilities with respect to its FIA products. American Life has established a Modco Deposit Account to hold the assets for the Modco AEG Agreement. Effective February 28, 2023, AEG elected not to extend its commitment period for reinsuring liabilities under its Modco AEG Agreement. As a result, AEG’s current quota share with respect to MYGA and FIA policies is 0%. The AEG Coinsurance Agreement remains in place, and AEG remains responsible for previously ceded liabilities. In November 2021, Midwest purchased 100% ownership of an intermediary holding company which immediately purchased 100% of SRC3 Class A and B capital stock. Also, on November 10, 2021, American Life and SRC3 entered into a Funds Withheld and Modified Coinsurance Agreement, whereby, SRC3 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA products and quota share percentage of 45% of the liabilities of American Life arising from its FIA products. In the fourth quarter of 2022, the agreement with SRC3 was amended to provide a one time reinsurance funding for a quota share of $10.0 million of the liabilities of American Life arising from its FIA products. On September 30, 2022, American Life entered into a reinsurance agreement (the “Reinsurance Agreement”) with a new protected cell formed by Seneca Re (Seneca Incorporated Cell, LLC 2022-04 (“SRC4”)). SRC4 was capitalized by loans from Embrace Software, Inc (“Embrace”) and Tillman Networks LLC (“Tillman”). The Reinsurance Agreement was effective as of July 1, 2022, among American Life and Seneca Re. The Reinsurance Agreement supports American Life’s new business production by providing reinsurance capacity for American Life to write certain kinds of fixed indexed and multi-year guaranteed annuity products. Under the Reinsurance Agreement, SRC4 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA-5 products and a quota share percentage of 10% of the liabilities of American Life arising from its MYGA-3 products. American Life has established a Modco Deposit Account, a Funds Withheld custody account, and a Trust Account pursuant to the Reinsurance Agreement. The initial settlement included net premium of $21.4 million and net reserves of $21.5 million for the modified coinsurance account. Also on September 30, 2022, American Life entered into an Investment Management Agreement (“IMA”) with CoVenture Management, LLC (“CoVenture”) naming CoVenture as the manager of certain assets held by American Life on behalf of SRC4. Management evaluates the Company as one reporting segment in the life insurance industry. The Company is primarily engaged in the underwriting and marketing of annuity products through American Life, and then reinsuring such products with third-party reinsurers, and since May 13, 2020, with Seneca Re protected cells. American Life’s legacy product offerings consisted of a multi-benefit life insurance policy that combined cash value life insurance with a tax deferred annuity and a single premium term life product. American Life presently offers six annuity products: two MYGAs, two FIAs, and two bonus plans associated with the FIA product. It is not presently offering any traditional life insurance products. Basis of Presentation These consolidated financial statements for the three months ended March 31, 2023 and 2022 have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following is a summary of our significant accounting policies and estimates. These accounting policies inherently require significant judgment and assumptions, and actual operating results could differ significantly from management’s estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. All intercompany accounts and transactions have been eliminated in consolidation and certain immaterial reclassifications have been made to the prior period results to conform to the current period’s presentation with no impact on results of operations or total stockholders’ equity. Credit Loss Impairments for Fixed Maturities and Other Invested Assets The Company adopted new current expected credit loss guidance on January 1, 2023 impacting the Company’s investment portfolio. If the Company has not made the decision to sell and it is not more likely than not that the Company will be required to sell before the anticipated recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity. The Company estimates the anticipated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the fixed maturity’s current effective rate and are compared to the amortized cost basis of the fixed maturity. The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the fixed maturity. All reasonably available information relevant to the collectability of the fixed maturity are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the fixed maturity, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the insurer, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate the anticipated recovery value if the Company determines that the fixed maturity is dependent on the liquidation of collateral for ultimate settlement. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis, a credit loss allowance is recorded as a net investment loss for the shortfall in expected cash flows; however, the amortized cost basis, net of the credit loss allowance, may not be lower than the fair value of the fixed maturity. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed maturity does not have sufficient cash flows or other information to estimate a recovery value for the fixed maturity, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recognized as a net investment loss. When a fixed maturity is sold or otherwise disposed or the fixed maturity is deemed uncollectible and written-off, the Company reverses amounts previously recognized in the credit loss allowance through net investment gains (losses). Recoveries after write-offs are recognized when received. The Company does not measure a credit loss allowance on accrued interest receivable as accrued interest receivable is written off to net investment income in a timely manner when there are concerns regarding collectability Fixed Maturities All fixed maturities owned by the Company are considered available-for-sale and are included in the consolidated financial statements at their fair value, net of allowances for expected credit losses, as of the financial statement date. Premiums and discounts on fixed maturity debt instruments are amortized using the scientific-yield method over the term of the instruments. Realized gains and losses on fixed maturities sold during the year are determined using the specific identification method. Unrealized holding gains and losses, net of applicable income taxes, are included in accumulated other comprehensive (loss) income. Investment income consists of interest, dividends, gains and losses from investments, and real estate income, which are recognized on an accrual basis along with the amortization of premiums and discounts. Certain available-for-sale investments are maintained as collateral under Funds Withheld (“FW”) and Modified Coinsurance (“Modco”) agreements but the assets and total returns or losses on the asset portfolios belong to the third-party reinsurers. American Life has treaties with several third-party reinsurers that have FW and Modco provisions. In a Modco agreement, the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a FW agreement, assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurers to reduce the potential credit risk. The unrealized gains/losses on those investments are passed through to the third-party reinsurers as either a realized gain or loss on the Consolidated Statements of Comprehensive Loss. Mortgage Loans on Real Estate Mortgage loans on real estate, held for investment are carried at unpaid principal balances, net of allowance for expected credit losses. Interest income is recognized in net investment income at the contract interest rate when earned. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement. Valuation allowances for impairments on mortgage loans are established based upon losses expected by management to be realized in connection with future dispositions or settlements of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan’s original effective interest rate and disposition of collateral. These evaluations are revised as conditions change and added information becomes available. As of March 31, 2023, the Company held one asset valued at $7.7 million with a total impairment of $1.4 million , and one asset with an impairment for the full value of $0.6 million. At December 31, 2022, the company had one asset valued at $7.7 million with a total impairment of $1.4 million. Derivative Instruments Derivatives are used to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. To qualify for hedge accounting, at the inception of the hedging relationship, the Company must formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we would identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that would be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which would be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness would be formally assessed at inception and periodically throughout the life of the designated hedging relationship. During the last quarter of 2020, the Company began investing in futures to hedge the fluctuations in various aspects of our business. The formal documentation and hedge effectiveness was not completed at the date we entered into those futures contracts; therefore, they do not qualify for hedge accounting. The futures change in fair market values were recorded on our Consolidated Statements of Comprehensive Loss as realized gains or (losses). Additionally, reinsurance agreements written on a FW or Modco basis contain embedded derivatives on our annuity products. Gains or (losses) associated with the performance of assets maintained in the modified coinsurance deposit and funds withheld accounts are reflected as realized (losses) or gains in the Consolidated Statements of Comprehensive Loss. Equity Securities Equity securities at March 31, 2023, consisted of exchange traded funds (“ETFs”). The ETFs are carried at fair value with the change in fair value recorded through realized gains and losses in the Consolidated Statements of Comprehensive Loss. As of March 31, 2023, we held $5.2 million of ETFs and $5.1 million of ETFs as of December 31, 2022. Preferred Stock The company holds investments in preferred stock of $32.7 million as of March 31, 2023. Changes in the fair value of preferred stock are recorded through unrealized gains and losses in net investment income in the Consolidated Statements of Comprehensive Loss. In 2020 American Life entered into a series of transactions with an unaffiliated entity, Ascona Group Holdings Ltd (“AGH”) aquiring preferred equity and warrants, and later created a special purpose vehicle, Ascona Asset Holding LLC (“AAH”), to hold the preferred equity and warrants, and later created Ascona Collinwood HoldCo LLC (“ACH”) to be the sole member of AAH. American Life and Crestline Re SP1 own 74% and 26%, respectively, of ACH. American Life is carrying the preferred equity and warrants at a market value in USD of $11.3 million as of March 31, 2023 and $10.5 million of December 31, 2022. For the three months ended March 31, 2023, $2.3 million of investment income related to ACH was recognized, and $0.6 million was attributed to the noncontrolling interest held by Crestline Re SP1. For the three months ended March 31, 2022, $1.7 million of investment income was recognized, and $0.4 million was attributed to Crestline Re SP1. Other Invested Assets Other invested assets consists of approximately $83.6 million of various investments. Of this total, approximately $73.3 million are primarily collateral loans, and $11.5 million of private credit and equipment leases. The collateral loanes, private credit and equipment leases are carried at fair market value, net of allowance for expectd credit losses. Also, we had an initial investment of $19.0 million investment in a private fund between American Life and an unaffiliated entity, PF Collinwood Holdings, LLC (“PFC”), with American Life owning 100% of the entity effective January 2021. The fair value of the PFC investment as of March 31, 2023, was $13.7 million and as of December 31, 2022, $13.7 million, respectively, with any change in fair market value recorded in unrealized gains and losses in equity on the balance sheet. On February 2, 2022, we established a special purpose vehicle, Python Asset Holding LLC, with American Life owning 100% of the entity with an initial investment of $7.4 million. As of March 31, 2023, our investment in Python was carried at the net asset value (“NAV”) plus approximately $0.4 million of investment income. Deposits and notes receivable Investment escrow The Company held in escrow $1.4 million and $0.8 million as of March 31, 2023 and December 31, 2022, respectively. The cash held at year end was used to purchased mortgages in April and January 2023, respectively. Federal Home Loan Bank stock American Life initially purchased Federal Home Loan Bank of Topeka (“FHLB”) common stock on May 5, 2021. This investment was to solidify our membership with FHLB Topeka. The carrying value of FHLB stock approximates fair value since the Company can redeem the stock with FHLB at cost. As a member of the FHLB, the Company is required to purchase this stock, which is carried at cost and classified as restricted equity securities. Membership allows access to various funding arrangements to provide a source of additional liquidity. As of March 31, 2023, the Company had pledged assets with a market value of $145.7 million to FHLB to allow a borrowing capacity of $131.1 million and $121.1 million pledged as of December 31, 2022. As of March 31, 2023 we had $60.0 million of outstanding funding arrangements, and $29.0 million outstanding as of December 31, 2022. Notes Receivable The Company held notes receivable carried at fair value of $6.3 million and $6.3 million as of March 31, 2023 and December 31, 2022, respectively, between American Life and a related party. The note receivable has an annual interest rate of 5% which is paid in kind (“PIK”) interest per annum that increases the outstanding note balance. This note was rated BBB+ by a nationally recognized statistical rating organization. This note matures on June 18, 2050. See Note 15 – Related Party – Chelsea for details regarding this note. Policy Loans Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. No valuation allowance is established for these policy loans as the amount of the loan is fully secured by the death benefit of the policy and cash surrender value. Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less when purchased to be cash equivalents. Deferred Acquisition Costs Deferred acquisition costs (“DAC”) consist of incremental direct costs, net of amounts ceded to third-party reinsurers, that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. These costs are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. The Company evaluates the types of acquisition costs it capitalizes. The Company capitalizes agent compensation and benefits and other expenses that are directly related to the successful acquisition of contracts. The Company also capitalizes expenses directly related to activities performed by the Company, such as underwriting, policy issuance, and processing fees incurred in connection with successful contract acquisitions. The following table represents a roll forward of DAC, net of reinsurance: (In thousands) March 31, 2023 December 31, 2022 Beginning balance $ 43,433 $ 24,530 Additions 7,200 23,857 Amortization (1,703) (3,905) Interest (374) (883) Impact of unrealized investment losses (406) (166) Ending Balance $ 48,150 $ 43,433 Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense. The Company performs a recoverability analysis annually in the fourth quarter unless events occur which in management’s judgment require an immediate review. The Company performed a recoverability analysis during the first quarter of 2023 and determined that all DAC balances were recoverable as of March 31, 2023 and December 31, 2022. Premiums Receivable Premiums receivable consists of premiums earned on our legacy insurance business which have been earned but have not yet been collected. Amounts are receivable from our legacy business partners and were consistent at $0.4 million and $0.4 million in 2023 and 2022 respectively. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Annual depreciation is primarily computed using straight-line methods for financial reporting and straight-line and accelerated methods for tax purposes. Furniture and equipment is depreciated over three Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of the asset are capitalized. The net book value of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in earnings. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. The Company determined that no such events occurred in the periods covered by the Consolidated Financial Statements that would indicate the carrying amounts may not be recoverable. Reinsurance We seek to reinsure a significant portion of our new annuity policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. Under these reinsurance agreements, we expect there will be a monthly or quarterly settlement of premiums, claims, surrenders, collateral, and other administration fees. We believe this will help preserve American Life’s capital while supporting its growth because American Life will have lower capital requirements when its business is reinsured due to lower overall financial exposure versus retaining the insurance policy business itself. See Note 7 below for further discussion of our reinsurance activities. There are two main categories of reinsurance transactions: 1) “indemnity,” where we cede a portion of our risk but retain the legal responsibility to our policyholders should our reinsurers not meet their financial obligations; and 2) “assumption,” where we transfer the risk and legal responsibilities to the reinsurers. The reinsurers are required to acquire the appropriate regulatory and policyholder approvals to convert indemnity policies to assumption policies. Our reinsurers may be domestic or foreign capital markets investors or traditional reinsurance companies seeking to assume U.S. insurance business. We plan to mitigate the credit risk relating to reinsurers generally by requiring other financial commitments from the reinsurers to secure the reinsured risks (such as posting substantial collateral). It should be noted that under indemnity reinsurance agreements American Life remains exposed to the credit risk of its reinsurers. If one or more reinsurers become insolvent or are otherwise unable or unwilling to pay claims under the terms of the applicable reinsurance agreement, American Life retains legal responsibility to pay policyholder claims, which in such event would likely materially and adversely affect the capital and surplus of American Life. Midwest formed Seneca Re in early 2020, followed by Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Incorporated Cell, LLC 2021-03 (“SRC3”) which are consolidated in these financial statements. Midwest sold 70% ownership of SRC1 to an ORIX Corporation USA subsidiary on December 30, 2021, and retained 30% ownership. Midwest maintains control over SRC1 and we continue to consolidate SRC1, in these financial statements. Additionally, Seneca Re has established Seneca Incorporated Cell, LLC 2022-04; however, management has determined that Midwest does not control the entity and thus it is not consolidated into these financial statements. American Life entered into a novation agreement with SRC2 and Crestline Re SPC, for and on behalf of Crestline Re SP1, under which the above-described reinsurance, trust and related asset management agreements were novated and replaced with substantially similar agreements entered into by American Life and Crestline Re SP1. Some reinsurers are not and may not be “accredited” or qualified as reinsurers under Nebraska law and regulations. In order to enter into reinsurance agreements with such reinsurers and to reduce potential credit risk, American Life holds a deposit or withholds funds from the reinsurer or requires the reinsurer to maintain a trust that holds assets backing up the reinsurer’s obligation to pay claims on the business it assumes. The reinsurer may also appoint an investment manager for such funds, which in some cases may be our investment adviser subsidiary, 1505 Capital, to manage these assets pursuant to guidelines adopted by us that are consistent with Nebraska investment statutes and reinsurance regulations. American Life currently has treaties with several third-party reinsurers and one related party reinsurer. In a Modco agreement, the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a FW agreement, assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurers, to reduce the potential credit risk. Under those provisions with third-party reinsurers, the assets backing the treaties are maintained by American Life as investments but the assets and total returns or losses on the investments are owned by the reinsurers. Under GAAP, this arrangement is considered an embedded derivative as discussed in Comprehensive Loss and Note 4 below. Assets carried as investments on American Life’s financial statements for the third-party reinsurers contained cumulative unrealized gains and (losses) as of March 31, 2023 and December 31, 2022. The terms of the contracts with the third-party reinsurers provide that changes in the unrealized gains and losses on the portfolios accrue to the third-party reinsurers. To recognize changes in the third-party unrealized gains and (losses), American Life records the year -to-date change as an offsetting realized (loss) or gain in Net Realized (Loss) Gain on Investments on the Consolidated Statements of Income and in amounts recoverable from third-party reinsurers on the Consolidated Balance Sheets. For further discussion see Note 4 below. Benefit Reserves The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon estimates at the time of issue for investment yields, mortality and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables. Policy Claims Policy claims are based on reported claims plus estimated incurred but not reported claims developed from trends of historical data applied to current exposure. Depo

Investments

Investments	3 Months Ended
Investments	Mar. 31, 2023
Investments.
Investments	Note 2. Investments The following table represents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and estimated fair value of investments classified as available-for-sale as of March 31, 2023 and December 31, 2022: Allowance Gross Gross Amortized for Credit Unrealized Unrealized Estimated (In thousands) Cost Losses Gains Losses Fair Value March 31, 2023: Fixed maturities: Bonds: U.S. government obligations $ 1,215 $ - $ - $ (58) $ 1,157 Mortgage-backed securities 383,960 (3,592) 569 (29,080) 351,857 Asset-backed securities 40,743 (245) 58 (3,653) 36,903 Collateralized loan obligations 349,151 (610) 798 (23,706) 325,633 States and political subdivisions-general obligations 129 - - (2) 127 States and political subdivisions-special revenue - - - - - Corporate 49,403 - 304 (4,520) 45,187 Term loans 592,947 (5,867) 2,199 (6,475) 582,804 Total fixed maturities $ 1,417,548 $ (10,314) $ 3,928 $ (67,494) $ 1,343,668 Mortgage loans on real estate, held for investment 336,175 (2,709) - - 333,466 Derivatives 31,665 - 5,257 (13,108) 23,814 Equity securities 5,592 - - (414) 5,178 Other invested assets 82,004 (1,173) 3,026 (277) 83,580 Preferred stock 36,798 - 2,070 (6,154) 32,714 Deposits and notes receivable 10,447 - - - 10,447 Policy loans 23 - - - 23 Total investments $ 1,920,252 $ (14,196) $ 14,281 $ (87,447) $ 1,832,890 December 31, 2022: Fixed maturities: Bonds: U.S. government obligations $ 1,343 $ - $ - $ (81) $ 1,262 Mortgage-backed securities 316,105 - 469 (22,508) 294,066 Asset-backed securities 34,728 - 17 (3,989) 30,756 Collateralized loan obligations 308,871 - 726 (21,924) 287,673 States and political subdivisions-general obligations 104 - - (3) 101 States and political subdivisions-special revenue 228 - - (23) 205 Corporate 46,700 - 415 (5,515) 41,600 Term loans 561,656 - 1,923 (4,607) 558,972 Total fixed maturities $ 1,269,735 $ - $ 3,550 $ (58,650) $ 1,214,635 Mortgage loans on real estate, held for investment 227,047 - - - 227,047 Derivatives 30,239 - 2,694 (16,999) 15,934 Equity securities 5,592 - - (481) 5,111 Other invested assets 108,979 - 3,667 (215) 112,431 Preferred stock 35,644 - 1,757 (5,986) 31,415 Deposits and notes receivable 8,359 - - - 8,359 Policy loans 25 - - - 25 Total investments $ 1,685,620 $ - $ 11,668 $ (82,331) $ 1,614,957 The following table presents information related to allowance for credit losses as of March 31, 2023: (In Thousands) Balance December 31, 2022 Additional Allowance Recognized Due to Adoption of Accounting Guidance Credit Loss Expense for the Current Period Balance March 31, 2023 Fixed Maturities Bonds: Mortgage-backed securities $ - $ 3,564 $ 28 $ 3,592 Asset-backed securities - 273 (28) 245 Collateralized loan obligations - 588 22 610 Term loans - 8,518 (2,651) 5,867 Mortgage loans on real estate, held for investment - 2,024 685 2,709 Other invested asset - 1,703 (530) 1,173 Total Allowance $ - $ 16,670 $ (2,474) $ 14,196 The following table shows the distribution of the credit ratings of our portfolio of fixed maturity securities by carrying value as of March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 Carrying Carrying (In thousands) Value Percent Value Percent AAA and U.S. Government $ 153,851 11.5 % $ 124,183 10.2 % AA 15,699 1.2 815 0.1 A 424,789 31.6 371,371 30.6 BBB 667,491 49.7 619,516 51.0 Total investment grade 1,261,830 94.0 1,115,885 91.9 BB and below 81,838 6.0 98,750 8.1 Total $ 1,343,668 100.0 % $ 1,214,635 100.0 % Reflecting the quality of fixed maturities maintained by us, as of March 31, 2023 and December 31, 2022, 94.0% and 91.9%, respectively, of all fixed maturity securities were investment grade. The BB and below also includes maturities that have no rating. The following table summarizes, for all fixed maturity securities in an unrealized loss position as of March 31, 2023 and December 31, 2022 for which an allowance for credit losses has not been recorded and the estimated fair value, pre-tax gross unrealized loss, and number of fixed maturities by consecutive months they have been in an unrealized loss position. March 31, 2023 December 31, 2022 Gross Number Gross Number Estimated Unrealized of Estimated Unrealized of (In thousands) Fair Value Loss Securities (1) Fair Value Loss Securities (1) Fixed Maturities: Less than 12 months: U.S. government obligations $ 197 $ (3) 1 $ 1,135 $ (70) 13 Mortgage-backed securities 251,760 (13,127) 100 233,624 (18,464) 89 Asset-backed securities 17,842 (2,014) 11 24,552 (3,278) 23 Collateralized loan obligations 187,146 (10,812) 162 203,549 (16,730) 252 States and political subdivisions-general obligations 127 (2) 2 101 (3) 1 States and political subdivisions-special revenue - - - 47 (2) 3 Corporate 30,511 (1,638) 33 37,286 (5,426) 64 Term loans 588,624 (6,475) - 558,337 (4,607) 36 Greater than 12 months: U.S. government obligations 960 (55) 8 126 (11) 5 Asset-backed securities 15,941 (1,639) 19 5,321 (711) 7 Collateralized loan obligations 95,673 (12,894) 157 37,814 (5,194) 47 States and political subdivisions-special revenue - - - 158 (21) 7 Mortgage-backed securities 67,003 (15,953) 47 17,985 (4,044) 14 Corporate 10,906 (2,882) 33 376 (89) 7 Total fixed maturities $ 1,266,690 $ (67,494) 573 $ 1,120,411 $ (58,650) 568 (1) Our securities positions resulted in a gross unrealized loss position as of March 31, 2023 that was greater than the gross unrealized loss position at December 31, 2022. The Company views the decrease in fair value for all of the fixed maturity securities with unrealized losses as of March 31, 2023, which are driven largely by increasing interest rates, spread widening, financial market illiquidity and/or market volatility, as temporary. As of March 31, 2023, the Company has not made the decision to sell these securities and the Company does not believe it will be required to sell the fixed maturity securities with unrealized losses before an anticipated recovery in value. Therefore, it was determined that the unrealized losses on the fixed maturity securities were not indicative of any credit loss impairments as of March 31, 2023. The Company reviews and analyzes all investments on an ongoing basis for changes in market interest rates and credit deterioration. The review process includes analyzing the recoverability of the amortized cost basis of each investment that has a fair value that is materially lower than its amortized cost and requires a high degree of management judgment and involves uncertainty. The evaluation of securities for credit loss is a quantitative and qualitative process, which is subject to risks and uncertainties. The process to identify securities that could potentially have credit loss involves monitoring market events and other items that could impact issuers. The evaluation includes but is not limited to such factors as: •the determination of whether a mark-to-market loss on a fixed income security is due to a deterioration in the underlying credit quality of the security or to temporary market effects such as interest rates through a comprehensive understanding of both the specific security and the broader market context; •the issuer’s payment history and adherence; •the remaining payment terms and the financial condition and near-term prospects of the issuer; •the lack of ability to refinance due to liquidity problems in the credit market; •the fair value of any associated collateral; •the availability of any credit protection; •our intent to sell and the likelihood of needing to sell prior to recovery for debt securities; •consideration of rating agency actions; and •changes in estimated cash flows of mortgage and asset backed securities. See the discussion in Note 7 Reinsurance regarding unrealized gains/losses on investments that are owned by our reinsurers and the corresponding offset carried as a loss/gain in the associated embedded derivatives. The Company purchases and sells equipment leases in its investment portfolio. As of March 31, 2023, the Company owned several leases, all of which were performing. No impairment was required as of March 31, 2023. The amortized cost and estimated fair value of fixed maturities as of March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (In thousands) Cost Fair Value Due in one year or less $ 89,688 $ 87,010 Due after one year through five years 728,295 706,224 Due after five years through ten years 513,865 473,994 Due after ten years through twenty years 54,106 51,108 Due after twenty years 31,594 25,332 $ 1,417,548 $ 1,343,668 The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At March 31, 2023 and December 31, 2022, these required deposits had a total amortized cost of $1.5 million and $1.2 million, respectively, and fair values of $1.3 million and $1 million, respectively. Mortgage loans consist of the following: (In thousands) March 31, 2023 December 31, 2022 1-4 Family $ 59,767 $ 59,579 Hospitality 22,071 12,902 Land 101,621 62,119 Multifamily (5+) 43,138 34,072 Retail 89,721 22,119 Other 19,857 36,256 Allowance for credit loss (2,709) - Total mortgage loans $ 333,466 $ 227,047 Geographic Location: As of March 31, 2023, the commercial mortgages loans were secured by properties geographically dispersed (with the largest concentrations in loans secured by properties in New York (20%), New Jersey (17%), Florida (10%), New Zealand (9%), and Delaware (8%)). As of December 31, 2022, the commercial mortgages loans were secured by properties geographically dispersed (with the largest concentrations in New York (24%), Florida (15%), Delaware (10%), California (6%), and Arizona (5%)). The loan-to-value ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A loan-to-value ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The following represents the loan-to-value ratio of the commercial mortgage loan portfolio, excluding those under development, net of valuation allowances. As of March 31, 2023, the Company held one asset valued at $7.7 million with an impairment of $1.4 million. As of March 31, 2023, the Company held one asset valued at $7.7 million with a total impairment of $1.4 million, and one asset with an impairment for the full value of $0.6 million. At December 31, 2022, the company had one asset valued at $7.7 million with a total impairment of $1.4 million. Commercial Mortgage Loans (In thousands) March 31, 2023 December 31, 2022 Loan-to-Value Ratio: 0%-59.99% $ 202,472 $ 108,281 60%-69.99% 77,868 79,968 70%-79.99% 47,874 33,268 80% or greater 5,252 5,530 Total mortgage loans $ 333,466 $ 227,047 The components of net investment income for the three months ended March 31, 2023 and 2022 are as follows: Three months ended March 31, (In thousands) 2023 2022 Fixed maturities $ 31,430 $ 12,664 Mortgage loans 7,360 2,420 Other invested assets 2,792 1,395 Other interest income 8,030 5,544 Gross investment income 49,612 22,023 Less: investment expenses (5,896) (2,212) Less: amounts charged to reinsurers (26,997) (13,569) Less: allowance for credit losses 2,474 Investment income, net of expenses $ 19,193 $ 6,242 Proceeds for the three months ended March 31, 2023 and 2022 from sales of investments classified as available-for-sale were $2.2 million, and $93.5 million, respectively. Gross gains of less than $0.1 million and $0.1 million and gross losses of $1.5 million and $0.5 million were realized on sales and the realized losses on sales during the three months ended March 31, 2023 and 2022, respectively. The proceeds included those assets associated with the third-party reinsurers. The gains and losses relate only to the assets retained by American Life. Unrealized gain/loss included as part of net investment income were gains of $19.2 million and $6.2 million for the the three months ended March 31, 2023 and 2022.

Derivative Instruments

Derivative Instruments	3 Months Ended
Derivative Instruments	Mar. 31, 2023
Derivative Instruments
Derivative Instruments	Note 3. Derivative Instruments The Company enters into derivative instruments to manage risk, primarily equity, interest rate, credit, foreign currency and market volatility. Some of these derivative instruments are to hedge fixed indexed annuity products that guarantee the return of principal to the policyholders and credit interest based on a percentage of the gain in a specified market index. To hedge against adverse changes in equity indices, the Company entered into contracts to buy equity indexed options. The following is a summary of the asset derivatives not designated as hedges embedded derivatives in our FIA product as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (In thousands, except number of contracts) Location in the Derivatives Not Designated Consolidated Notional Number of Estimated Notional Number of Estimated as Hedging Instruments Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 870,515 622 $ 23,814 $ 831,657 595 $ 15,592 Equity-indexed embedded derivatives Deposit-type 811,940 6,444 124,915 782,997 6,131 111,618 At March 31, 2023, the value of the embedded derivative considers all amounts projected to be paid in excess of the minimum guarantee (the amounts payable without any indexation increases) over future periods. The host contract reflects the minimum guaranteed values. Due to price changes in the capital markets, our securities positions resulted in increased unrealized losses at March 31, 2023, compared to December 31, 2022, reported in accumulated other comprehensive income on the balance sheet. The embedded derivative related to the asset portfolio belonging to the third-party reinsurers offset these unrealized losses. The unrealized losses as of March 31, 2023 were $17.7 million compared to unrealized losses of $10.5 million as of December 31, 2022. The following table summarizes the impact of those embedded derivatives related to the funds withheld provision where the total return on the asset portfolio is passed through to the third-party reinsurers: March 31, 2023 December 31, 2022 (In thousands) Book Value Market Value Total Return Book Value Market Value Total Return Portfolio Assets Assets Swap Value Assets Assets Swap Value American Republic Insurance Company $ 172,166 $ 164,423 $ 7,743 $ 150,413 $ 143,952 $ 6,461 Crestline Re SP1 404,318 401,030 3,288 354,806 356,374 (1,568) Ironbound 164,951 159,509 5,442 159,644 154,477 5,167 Ascendent Re 56,942 55,243 1,699 56,064 54,790 1,274 SRC4 97,830 98,336 (506) 61,646 62,516 (870) Total $ 896,207 $ 878,541 $ 17,666 $ 782,573 $ 772,109 $ 10,464 Assets carried as investments on American Life’s financial statements for the third-party reinsurers contained cumulative unrealized losses of approximately $17.7 million as of March 31, 2023, and cumulative unrealized losses of $10.5 million as of December 31, 2022, respectively. The terms of the contracts with the third-party reinsurers provide that the changes in unrealized gains or losses on the portfolios accrue to the third-party reinsurers. Accordingly, the change in unrealized losses on the assets held by American Life were offset by gains in the embedded derivative of $7.2 million and a gain in the embedded derivative of $2.8 million for the three months ended March 31, 2023 and 2022, respectively. We account for this unrealized (loss) pass-through by recording an equivalent realized gain on our Consolidated Statements of Comprehensive Loss and in amounts payable to our third-party reinsurers on the Consolidated Balance Sheets.

Fair Values of Financial Instru

Fair Values of Financial Instruments	3 Months Ended
Fair Values of Financial Instruments	Mar. 31, 2023
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 4. Fair Values of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We use valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, accounting standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the valuation inputs, or their ability to be observed, may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in/out of the Level 3 category as of the beginning of the period in which the reclassifications occur. A description of the valuation methodologies used for assets measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Level 1 measurements Cash equivalents: Level 2 measurements Fixed maturity securities: Derivatives: Equity securities Preferred stock Deposits and notes receivable Level 3 measurements Term Loans Mortgage Loans Other Invested Assets Deposits and notes receivable: Preferred Stock Policy loans: Deposit-type contracts: Embedded derivative for equity-indexed contracts The following table presents the Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022. Significant Quoted Other Significant In Active Observable Unobservable Estimated Markets Inputs Inputs Net Asset Fair (In thousands) (Level 1) (Level 2) (Level 3) Value Value March 31, 2023 Financial assets Fixed maturity securities: Bonds U.S. government obligations $ - $ 1,157 $ - $ - $ 1,157 Mortgage-backed securities - 351,857 - - 351,857 Asset-backed securities - 36,903 - - 36,903 Collateralized loan obligations - 325,633 - - 325,633 States and political subdivisions-general obligations - 127 - - 127 States and political subdivisions-special revenue - - - - - Corporate - 45,187 - - 45,187 Term loans - - 582,804 - 582,804 Total fixed maturity securities - 760,864 582,804 - 1,343,668 Mortgage loans on real estate, held for investment - - 333,466 - 333,466 Derivatives - 23,814 - - 23,814 Equity securities - 5,178 - - 5,178 Other invested assets - - 69,881 13,699 83,580 Preferred stock - 9,376 23,338 - 32,714 Deposits and notes receivable - 7,716 2,731 - 10,447 Policy loans - - 23 - 23 Total investments $ - $ 806,948 $ 1,012,243 $ 13,699 $ 1,832,890 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ — $ 124,915 $ — 124,915 December 31, 2022 Financial assets Fixed maturity securities: Bonds U.S. government obligations $ — $ 1,262 $ — $ — $ 1,262 Mortgage-backed securities — 294,066 — — 294,066 Asset-backed securities — 30,756 — — 30,756 Collateralized loan obligations — 287,673 — — 287,673 States and political subdivisions-general obligations — 101 — — 101 States and political subdivisions-special revenue — 205 — — 205 Corporate — 41,600 — — 41,600 Term loans — — 558,972 — 558,972 Total fixed maturity securities — 655,663 558,972 — 1,214,635 Mortgage loans on real estate, held for investment — — 227,047 — 227,047 Derivatives — 15,934 — — 15,934 Equity securities — 5,111 — — 5,111 Other invested assets — — 99,997 12,434 112,431 Preferred stock — 9,544 21,871 — 31,415 Investment escrow — 784 — — 784 Federal Home Loan Bank stock — — 1,306 — 1,306 Notes receivable — 6,269 — — 6,269 Deposits and notes receivable — 7,053 1,306 — 8,359 Policy loans — — 25 — 25 Total investments $ — $ 693,305 $ 909,218 $ 12,434 $ 1,614,957 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ — $ 111,618 $ — 111,618 There were no transfers of financial instruments between any levels during the three months ended March 31, 2023 or the year ended December 31, 2022. Accounting standards require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis are discussed above. As of March 31, 2023 or December 31, 2022, there were no financial assets or financial liabilities measured at fair value on a non-recurring basis. The following disclosure contains the carrying values, estimated fair values and their corresponding placement in the fair value hierarchy, for financial assets and financial liabilities as of March 31, 2023 and December 31, 2022, respectively: March 31, 2023 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 23 $ — $ — $ 23 $ 23 Cash equivalents 170,073 — 170,073 — 170,073 Liabilities: Policyholder deposits (deposit-type contracts) 1,963,786 — — 1,963,786 1,963,786 December 31, 2022 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 25 $ — $ — $ 25 $ 25 Cash equivalents 191,414 — 191,414 — 191,414 Liabilities: Policyholder deposits (deposit-type contracts) 1,743,348 — — 1,743,348 1,743,348 The following table presents a reconciliation of the beginning balance for all assets and liabilities measured at fair value on a recurring basis using level three inputs during the three months ended March 31, 2023: March 31, 2023 Total realized and unrealized gains (losses) Beginning Balance Included in Income Included in OCI Net Purchases, Issuances, Sales, and Settlements Ending Balance (In thousands) Assets Term loans $ 558,972 $ - $ (4,276) $ 33,975 $ 588,671 Mortgage loans on real estate, held for investment 227,047 - - 109,128 336,175 Deposits and notes receivable 1,306 - - 1,425 2,731 Other invested assets 99,997 - 2,749 (31,692) 71,054 Preferred stock 21,871 - (4,084) 5,551 23,338 Policy loans 25 - - (2) 23 Total level 3 assets $ 909,218 $ - $ (5,611) $ 118,385 $ 1,021,992 Liabilities Embedded derivative for equity-indexed contracts (111,618) 14,704 - (28,001) (124,915) Total level 3 liabilities $ (111,618) $ 14,704 $ - $ (28,001) $ (124,915) The following tables present a reconciliation of the beginning balance for all investments measured at fair value on a recurring basis using level three inputs during the year ended December 31, 2022: December 31, 2022 Total realized and unrealized gains (losses) (In thousands) Beginning Balance Included in Income Included in OCI Net Purchases, Issuances, Sales, and Settlements Ending Balance Assets Term loans $ 267,468 $ - $ (2,683) $ 294,187 558,972 Mortgage loans on real estate, held for investment 183,203 - - 43,844 227,047 Deposits and notes receivable 500 - - 806 1,306 Other invested assets 35,293 - 3,452 61,252 99,997 Preferred stock 18,686 - (4,229) 7,414 21,871 Policy loans 87 - - (62) 25 Total level 3 assets $ 505,237 $ - $ (3,460) $ 407,441 $ 909,218 Liabilities Embedded derivative for equity-indexed contracts (123,692) (10,193) - 22,267 (111,618) Total level 3 liabilities $ (123,692) $ (10,193) $ - $ 22,267 $ (111,618) Significant Unobservable Inputs —Significant unobservable inputs occur when we could not obtain or corroborate the quantitative detail of the inputs. This applies to fixed maturity securities, preferred stock, mortgage loans and certain derivatives, as well as embedded derivatives in liabilities. Additional significant unobservable inputs are described below. Interest sensitive contract liabilities – embedded derivative – Significant unobservable inputs we use in the fixed indexed annuities embedded derivative of the interest sensitive contract liabilities valuation include: ● Nonperformance risk – For contracts we issue, we use the credit spread, relative to the US Department of the Treasury (Treasury) curve based on our public credit rating as of the valuation date. This represents our credit risk for use in the estimate of the fair value of embedded derivatives. ● Option budget – We assume future hedge costs in the derivative’s fair value estimate. The level of option budgets determines the future costs of the options and impacts future policyholder account value growth. ● Policyholder behavior – We regularly review the lapse and withdrawal assumptions (surrender rate). These are based on our initial pricing assumptions updated for actual experience. Actual experience may be limited for recently issued products. Preferred equity and warrants – Significant unobservable inputs we use include surrender rate, discount rates, EBITDA Multiples, . ● EBITDA Multiple -The warrants valued using a market approach guideline public company method ("GCPM") using a multiplier of EBITDA. ● Discount Rates - For the preferred equity, discounted cash flow models are used to assist with the calculation the fair value. Other Invested Assets ● EBITDA Multiple -The other invested assets valued using a market approach guideline public company method ("GCPM") using a multiplier of EBITDA. ● Discount Rates - For the other invested assets, discounted cash flow models are used to assist with the calculation the fair value. Term Loans Mortgage Loans The following summarizes the unobservable inputs for available for sale and trading securities and the embedded derivatives of fixed indexed annuities and preferred stock (with associated detachable warrants): March 31, 2023 (In millions, except for percentages and multiples) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average* Impact of an increase in the input on fair value Term loans $582.8 Yield Analysis Discount rates 4.6% 17.3% 12.4% Decrease Mortgage loans on real estate $333.5 Yield Analysis Principal funded NA NA NA Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives $124.9 Option Budget Method Nonperformance risk 0.8% 1.5% 1.1% Decrease Option budget 1.1% 5.9% 2.7% Increase Surrender rate 0.5% 15% (base) 12.0% Decrease Other invested assets $69.9 Market Approach EBITDA Multiples 2.6x 3.1x 2.8x NA Discount rates 8.0% 25.5% 14.5% NA Preferred equity $6.6 Yield Analysis Discount rates 24.0% 28.0% 26.0% Increase Detachable warrants $2.4 Market Approach GPCM EBITDA Multiples 10.0x 11.5x 100.0% Decrease Preferred stock $23.3 Market Approach EBITDA Multiples 2.55x 3.05x 2.8x Decrease * Weighted by account value December 31, 2022 (In millions, except for percentages and multiples) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average* Impact of an increase in the input on fair value Term loans $559.0 Yield Analysis Discount rates 4.6% 17.3% 12.4% Decrease Mortgage loans on real estate $227.0 Yield Analysis Principal funded NA NA NA Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives $111.6 Option Budget Method Nonperformance risk 0.6% 1.5% 1.1% Decrease Option budget 1.1% 5.7% 2.7% Increase Surrender rate 0.5% 15% (base) 10.5% Decrease Other invested assets $100.0 Market Approach EBITDA Multiples 2.6x 3.1x 2.8x NA Discount rates 8.0% 25.5% 14.5% NA Preferred equity $6.1 Yield Analysis Discount rates 24.0% 28.0% 26.0% Increase Detachable warrants $2.2 Market Approach GPCM EBITDA Multiples 10.0x 11.5x 100.0% Decrease Preferred stock $31.4 Market Approach EBITDA Multiples 2.55x 3.05x 2.8x Decrease * Weighted by account value

Deposit-Type Contracts

Deposit-Type Contracts	3 Months Ended
Deposit-Type Contracts	Mar. 31, 2023
Deposit-Type Contracts
Deposit-Type Contracts	Note 5. Deposit-Type Contracts The Company’s deposit-type contracts represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. Liabilities for these deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals. The following table provides information about deposit-type contracts for the three months ended March 31, 2023 and the year ended December 31, 2022: (In thousands) March 31, 2023 December 31, 2022 Beginning balance $ 1,743,348 $ 1,075,439 US Alliance 519 (2,176) Unified Life Insurance Company - (10) Ironbound Reinsurance Company Limited 1,540 5,959 Ascendant Re 649 (3,185) Crestline SP1 5,117 (11,623) American Republic Insurance Company 1,995 (4,080) SRC4 989 613 Deposits received 225,064 745,083 Investment earnings (includes embedded derivative) 14,704 (10,193) Withdrawals (30,139) (51,659) Policy charges - (820) Ending balance $ 1,963,786 $ 1,743,348 In addition, membership in FHLB provides the Company with access to additional short-term liquidity based on the level of investment in FHLB stock and pledged collateral. At March 31, 2023 and December 31, 2022 funding agreements of $60.0 million and $29.0 million were outstanding.

Debt

Debt	3 Months Ended
Debt	Mar. 31, 2023
Debt
Debt	Note 6. Debt On November 22, 2022, the Company entered into a three-year senior secured revolving credit agreement (“Credit Agreement”) with Royal Bank of Canada and other lenders with a capacity of $30 million (the “Revolving Credit Facility”). The maturity date of the Credit Agreement is November 22, 2025. The obligations under the Credit Agreement are secured by a first priority lien on a variety of the Company’s assets. The balance of the revolving credit was $25.0 million at March 31, 2023, and December 31, 2022, with $5.0 million unutilized credit. Under the terms of the Credit Agreement, the Company has the option of selecting an applicable variable interest rate of (a) an adjusted term standard overnight financing rate (“SOFR”), plus an applicable margin or (b) a base rate, plus an applicable margin. Depending on our debt to capitalization ratio, the applicable margin can range from 2.50% to 3.25% for the base rate and from 3.50% to 4.25% for an adjusted term SOFR loan. Interest paid for the three months ended March 31, 2023 and 2022 was $0.6 million and $0.0 million respectively. The terms of the Credit Agreement require the Company to maintain, among other things, certain financial measures including: ● Consolidated debt to capitalization must not be greater than 35% on the last day of any fiscal quarter; ● Risk-based capital of American Life & Security Corp. must not be less than 300% on the last day of any fiscal quarter; ● Consolidated liquidity must not be less than $3.0 million at any time; and ● The strength rating of American Life & Security Corp. from A.M. Best must not fall below “B++”.

Reinsurance

Reinsurance	3 Months Ended
Reinsurance	Mar. 31, 2023
Reinsurance
Reinsurance	Note 7. Reinsurance A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of March 31, 2023 and December 31, 2022 is as follows: (In thousands) March 31, 2023 December 31, 2022 Assets: Reinsurance recoverables $ 55,202 $ 20,190 Liabilities: Deposit-type contracts Direct $ 1,963,786 1,743,348 Reinsurance ceded (1,005,666) (912,982) Retained deposit-type contracts $ 958,120 $ 830,366 Three months ended March 31, 2023 2022 (In thousands) Premiums Direct $ 35 $ 61 Reinsurance ceded (35) (61) Total Premiums $ — $ — Future policy and other policy benefits Direct $ 57 $ 54 Reinsurance ceded (57) (54) Total future policy and other policy benefits $ — $ — The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third-party reinsurers as of March 31, 2023: Recoverable/ Total Amount Recoverable Recoverable (Payable) on Benefit Ceded Recoverable/ (In thousands) AM Best on Paid on Unpaid Reserves/Deposit- Due (Payable) to/from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ - $ - $ 875 $ - $ 875 Optimum Re Insurance Company A - - 705 - 705 Sagicor Life Insurance Company A- - 188 12,552 (324) 12,416 Ascendant Re NR - - (2,886) - (2,886) Crestline SP1 NR - - (2,534) - (2,534) American Republic Insurance Company A - - 5,112 - 5,112 SRC4 NR - - (19,531) - (19,531) Unified Life Insurance Company NR - 36 1,153 (16) 1,173 US Alliance Life and Security Company NR - - 59,895 (23) 59,872 $ - $ 224 $ 55,341 $ (363) $ 55,202 The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third-party reinsurers as of December 31, 2022: Recoverable on Total Amount Recoverable Recoverable Benefit Ceded Recoverable (In thousands) AM Best on Paid on Unpaid Reserves/Deposit- Due from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ - $ - $ (344) $ - $ (344) Optimum Re Insurance Company A - - 601 - 601 Sagicor Life Insurance Company A- - 154 10,744 (303) 10,595 Ascendant Re NR - - (2,130) - (2,130) Crestline SP1 NR - - (3,357) - (3,357) American Republic Insurance Company A - - 5,879 - 5,879 SRC4 NR - - (44,442) - (44,442) Unified Life Insurance Company NR - 41 986 (17) 1,010 US Alliance Life and Security Company NR - - 52,400 (22) 52,378 $ - $ 195 $ 20,337 $ (342) $ 20,190 Our securities positions resulted in changes in the unrealized gain position as of March 31, 2023, compared to December 31, 2022, that is reported in accumulated other comprehensive (loss) income on the Consolidated Balance Sheets. As discussed in Note 1, American Life has treaties with several third-party reinsurers that have FW and Modco provisions. Under those provisions, the assets backing the treaties are maintained by American Life as collateral but the assets and total returns or losses on the asset portfolios belong to the third-party reinsurers. Under GAAP this arrangement is considered an embedded derivative as discussed in Note 3. On June 26, 2021, the NDOI issued its non-disapproval of the Modified Coinsurance Agreement (“Modco AEG Agreement”) with American Republic Insurance Company (“AEG”), an Iowa domiciled reinsurance company. The agreement closed on June 30, 2021. Under the Modco AEG Agreement, American Life cedes to AEG, on a modified coinsurance basis, a 20% quota share of certain liabilities with respect to its MYGA-5 business and an initial 20% quota share of certain liabilities with respect to its FIA business. Effective February 28, 2023, AEG elected not to extend its commitment period for reinsuring liabilities under its Modco AEG Agreement. As a result, AEG’s current quota share with respect to MYGA and FIA policies is 0%. The AEG Coinsurance Agreement remains in place, and AEG remains responsible for previously ceded liabilities. On November 10, 2021, the NDOI issued its non-disapproval of the Funds Withheld and Modified Coinsurance Agreement with SRC3, whereby, SRC3 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA products and a quota share percentage of 45% of the liabilities of American Life arising from its FIA products. In the fourth quarter of 2022, the agreement with SRC3 was amended to provide a one time reinsurance funding for $10.0 million of the liabilities of American Life arising from its FIA products. On September 21, 2022, the NDOI issued its non-disapproval of the conversion of American Life’s agreement with US Alliance to convert its block of business from a Funds Withheld agreement to a Funds Paid Coinsurance agreement. The conversion was effective as of October 1, 2022, and was triggered by US Alliance becoming a Qualified Institutional Buyer as specified in the original agreement. Upon conversion, American Life began transferring assets held on behalf of US Alliance to the reinsurer, with a corresponding entry made to Amounts Recoverable. The approximate value of assets transferred was $37.9 million. On September 30, 2022, American Life entered into a reinsurance agreement (the “Reinsurance Agreement”) with a new protected cell formed by Seneca Re (Seneca Incorporated Cell, LLC 2022-04 (“SRC4”)). SRC4 was capitalized by loans from Embrace Software, Inc (“Embrace”) and Tillman Networks LLC (“Tillman”). The Reinsurance Agreement was effective as of July 1, 2022, among American Life and Seneca Re. The Reinsurance Agreement supports American Life’s new business production by providing reinsurance capacity for American Life to write certain kinds of fixed indexed and multi-year guaranteed annuity products. Under the Reinsurance Agreement, SRC4 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA-5 products and a quota share percentage of 10% of the liabilities of American Life arising from its MYGA-3 products. American Life has established a Modco Deposit Account, a Funds Withheld custody account, and a Trust Account pursuant to the Reinsurance Agreement. The initial settlement included net premium of $21.4 million and net reserves of $21.5 million for the modified coinsurance account. Also on September 30, 2022, American Life entered into an Investment Management Agreement (“IMA”) with CoVenture Management, LLC (“CoVenture”) naming CoVenture as the manager of certain assets held by American Life on behalf of SRC4. The tables below shows the ceding commissions from the reinsurers, excluding SRC1 and SRC3, and what was earned on a GAAP basis for the three months ended March 31, 2023 and 2022: Three months ended March 31, (In thousands) 2023 2022 Reinsurer Gross Ceding Commission Expense Allowance (1) Interest on Ceding Commission Earned Ceding Commission Gross Ceding Commission Expense Allowance Interest on Ceding Commission Earned Ceding Commission Unified Life Insurance Company $ — $ — $ — $ 3 $ — $ — $ — $ 8 Ironbound Reinsurance Company Limited — — 47 134 — — 49 130 Ascendant Re — — 23 89 — — 23 86 US Alliance Life and Security Company — — 13 87 — — 14 87 Crestline SP1 1,039 918 132 866 1,034 1,830 80 506 American Republic Insurance Company 559 705 52 301 801 1,454 23 153 SRC4 1,367 1,214 30 93 — — — — $ 2,965 $ 2,837 $ 297 $ 1,573 $ 1,835 $ 3,284 $ 189 $ 970 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. The table below shows the ceding commissions deferred on each reinsurance transaction on a GAAP basis: (In thousands) March 31, 2023 December 31, 2022 Reinsurer Deferred Gain on Reinsurance Transactions Deferred Gain on Reinsurance Transactions US Alliance Life and Security Company (1) $ 150 $ 152 Unified Life Insurance Company (1) 210 217 Ironbound Reinsurance Company Limited (2) 4,876 4,876 Ascendant Re 2,947 2,947 US Alliance Life and Security Company (2) 2,069 2,069 American Republic Insurance Company (2) 7,724 7,502 Crestline SP1 (2) 18,906 18,475 SRC4 (2) 3,070 1,825 $ 39,952 $ 38,063 1) These reinsurance transactions on our legacy life insurance business received gross ceding commissions on the effective dates of the transaction. The difference between the statutory net adjusted reserves and the GAAP adjusted reserves plus the elimination of DAC and value of business acquired related to these businesses reduces the gross ceding commission with the remaining deferred and amortized over the lifetime of the blocks of business. 2) These reinsurance transactions include the ceding commissions and expense allowances which are accounted for as described in (1). The use of reinsurance does not relieve American Life of its primary liability to pay the full amount of the insurance benefit in the event of the failure of a reinsurer to honor its contractual obligation for all blocks of business except what is included in the Unified transaction. The reinsurance agreement with Unified discharges American Life’s responsibilities once all the policies have changed from indemnity to assumptive reinsurance. No reinsurer of business ceded by American Life has failed to pay policy claims (individually or in the aggregate) with respect to our ceded business. American Life monitors several factors that it considers relevant to satisfy itself as to the ongoing ability of a reinsurer to meet all obligations of the reinsurance agreements. These factors include the credit rating of the reinsurer, the financial strength of the reinsurer, significant changes or events of the reinsurer, and any other relevant factors. If American Life believes that any reinsurer would not be able to satisfy its obligations with American Life, separate contingency reserves may be established. As of March 31, 2023 or December 31, 2022, no contingency reserves were established. American Life expects to reinsure a significant portion of its new insurance policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. American Life may retain some business with the intent to reinsure some or all at a future date. Retained and Reinsured Balance Sheets The tables below shows the retained and reinsurance consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Retained Reinsured Consolidated Retained Reinsured Consolidated Assets Total investments $ 945,074 $ 887,816 $ 1,832,890 $ 812,177 $ 802,780 $ 1,614,957 Cash and cash equivalents 99,438 70,635 170,073 127,291 64,123 191,414 Deferred acquisition costs, net 48,150 - 48,150 43,433 - 43,433 Premiums receivable - 368 368 - - - Accrued investment income 12,545 19,045 31,590 11,307 13,858 25,165 Reinsurance recoverables (36,797) 91,999 55,202 (6,853) 27,405 20,552 Property and equipment, net 1,805 - 1,805 1,897 - 1,897 Receivable for securities sold - - - 2,033 8,485 10,518 Other assets 10,632 (6,235) 4,397 12,259 236 12,495 Total assets $ 1,080,847 $ 1,063,628 $ 2,144,475 $ 1,003,544 $ 916,887 $ 1,920,431 Liabilities and Stockholders’ Equity Liabilities: Benefit reserves $ 1,171 $ 11,568 $ 12,739 $ 1,332 $ 11,613 $ 12,945 Deposit-type contracts 955,775 1,008,011 1,963,786 841,980 901,368 1,743,348 Other policy-holder funds 9,252 15 9,267 4,105 - 4,105 Notes payable 25,000 - 25,000 25,000 - 25,000 Deferred gain on coinsurance transactions 150 39,802 39,952 38,063 - 38,063 Payable for securities sold 22,677 - 22,677 8,872 - 8,872 Operating lease 2,078 - 2,078 2,135 - 2,135 Other liabilities 39,894 4,232 44,126 47,680 3,906 51,586 Total liabilities $ 1,055,997 $ 1,063,628 $ 2,119,625 $ 969,167 $ 916,887 $ 1,886,054 Stockholders’ Equity: Preferred stock $ - $ - $ - $ - $ - $ - Voting common stock 4 - 4 4 - 4 Additional paid-in capital 138,789 - 138,789 138,482 - 138,482 Treasury stock (175) - (175) (175) - (175) Accumulated deficit (63,863) - (63,863) (63,019) - (63,019) Accumulated other comprehensive loss (61,928) - (61,928) (51,386) - (51,386) Total Midwest Holding Inc.'s stockholders' equity $ 12,827 $ - $ 12,827 $ 23,906 $ - $ 23,906 Noncontrolling interest 12,023 - 12,023 10,471 - 10,471 Total stockholders' equity 24,850 - 24,850 34,377 - 34,377 Total liabilities and stockholders' equity $ 1,080,847 $ 1,063,628 $ 2,144,475 $ 1,003,544 $ 916,887 $ 1,920,431

Income Tax Matters

Income Tax Matters	3 Months Ended
Income Tax Matters	Mar. 31, 2023
Income Tax Matters
Income Tax Matters	Note 8. Income Tax Matters Significant components of the Company’s deferred tax assets and liabilities as of March 31, 2023 and December 31, 2022 are as follows: (In thousands) March 31, 2023 December 31, 2022 Deferred tax assets: Loss carryforwards $ 3,469 $ 2,672 Capitalized costs 67 79 Stock option granted 1,131 1,066 Policy acquisition costs 7,245 6,489 Charitable contribution carryforward - - General business credits 6 6 Derivative option allowance - - Sec 163(j) limitation 171 171 Benefit reserves 10,004 12,010 Property and equipment - - Impairments 403 403 Unrealized losses on investments 16,462 13,624 Other 1,928 1,928 Total deferred tax assets 40,886 38,448 Less valuation allowance (38,331) (35,305) Total deferred tax assets, net of valuation allowance 2,555 3,143 Deferred tax liabilities: Unrealized losses on investments - - Due premiums - - Intangible assets 147 147 Derivative option allowance 1,084 2,150 Bond Discount 1,424 936 Property and equipment (100) (90) Total deferred tax liabilities 2,555 3,143 Net deferred tax assets $ - $ - At March 31, 2023 and December 31, 2022, the Company recorded a valuation allowance of $38.3million and $35.3 million, respectively, on the deferred tax assets to reduce the total to an amount that management believes will ultimately be realized. Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry forwards are expected to be available to reduce taxable income. There was income tax expense of $2.9 million and $4.7 million for the three months ended March 31, 2023 and 2022. This differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income, as a result of the following: Three months ended March 31, (In thousands) 2023 2022 Computed expected income tax benefit (expense) $ (2,785) $ (1,099) Reduction (increase) in income taxes resulting from: Interest maintenance reserve and reinsurance 69 (79) Nondeductible expenses (3) (2) Change in valuation allowance (188) (3,532) Deferred tax adjustment - (10) Subtotal of increases (122) (3,623) Tax expense $ (2,907) $ (4,722) Section 382 of the Internal Revenue Code limits the utilization of U.S. net operating loss (“NOL”) carryforwards following a change of control, which occurred on June 28, 2018. As of March 31, 2023, the deferred tax assets included the expected tax benefit attributable to federal NOLs of $9.4 million. The federal NOLs generated by Midwest Holding and American Life prior to June 28, 2018 which are subject to the Section 382 limitation can be carried forward. If not utilized, the NOLs of $1.0 million prior to 2017 will expire through the year of 2032. The NOLs generated by SRC1 prior to December 30, 2021 of less than $0.1 million are subject to Section 382 limitations due to the change in control. However, under the Tax Cuts and Jobs Act of 2017, they will not expire and can be carried forward indefinitely. The NOLs not subject to Section 382 which were generated from June 28, 2018 to December 31, 2022 do not expire and will carry forward indefinitely, however their utilization in any carry forward year is limited to 80% of taxable income in that year. The Company believes that it is more likely than not that the benefit from federal NOL carryforwards will not be realized; thus, we have recorded a full valuation allowance of $2 million on the deferred tax assets related to these federal NOL carryforwards.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2023
Leases
Leases	Note 9. Leases Our operating lease activities consist of leases for office space and equipment and do not include variable lease payments. Supplemental balance sheet information for our leases as of March 31, 2023 and December 31, 2022 is as follows: (In thousands) Classification March 31, 2023 December 31, 2022 Assets Operating Operating lease right-of-use assets $ 2,059 $ 2,119 Liabilities Operating lease Operating lease liabilities $ 2,078 $ 2,135 Our operating lease expense for the March 31, 2023 and 2022, is as follows: Three months ended March 31, (In thousands) Classification 2023 2022 Operating General and administrative expense $ 3 $ 3 Minimum contractual obligations for our leases as of March 31, 2023 are as follows: (In thousands) Operating Leases 2023 $ 257 2024 342 2025 342 2026 345 2027 353 2028 362 2029 and after 1,042 Total remaining lease payments $ 3,043 The cash flows related to the operating lease were less than $0.1 million for both the three months ended March 31, 2023 and 2022. The weighted average remaining lease terms of our operating leases were approximately eight and one half years

Equity

Equity	3 Months Ended
Equity	Mar. 31, 2023
Equity
Equity	Note 10. Equity Preferred stock As of March 31, 2023 and December 31, 2022, the Company had two million shares of preferred stock authorized with none issued or outstanding. Common Stock Our voting common stock is traded on The Nasdaq Capital Market under the symbol “MDWT.” Midwest has authorized 20 million shares of voting common stock and two million shares of non-voting common stock. As of March 31, 2023 and December 31, 2022, Midwest had 3,728,601 and 3,727,976 shares of voting common stock issued outstanding Midwest holds approximately 4,500 shares of voting common stock in its treasury due to a reverse stock split. Additional paid-in capital Additional paid-in capital is primarily comprised of the cumulative cash that exceeds the par value received by the Company in conjunction with past issuances of its shares. It also is increased by the amortization expense of the consideration calculated at inception of the stock option grants as discussed in Note 11 – Long-Term Incentive Plans below. Accumulated Other Comprehensive Income (AOCI) AOCI represents the cumulative other comprehensive income (loss) items that are reported separate from net loss and detailed on the Consolidated Statements of Comprehensive Loss. AOCI includes the unrealized gains and losses on certain investments and DAC, net of offsets and taxes as follows: (In thousands) Unrealized investment gains (losses) on fixed maturities, net of offsets Balance at December 31, 2021 $ 2,634 Other comprehensive (loss) before reclassifications, net of tax (54,975) Less: Reclassification adjustments for losses realized in net income 955 Balance, December 31, 2022 (51,386) Other comprehensive (loss) before reclassifications, net of tax (10,552) Less: Reclassification adjustments for losses realized in net income, net of tax 10 Balance, March 31, 2023 $ (61,928)

Long-Term Incentive Plans

Long-Term Incentive Plans	3 Months Ended
Long-Term Incentive Plans	Mar. 31, 2023
Long-Term Incentive Plans
Long-Term Incentive Plans	Note 11. Long-Term Incentive Plans In 2019, the Board approved the Midwest Holding Inc. (“MHI”) Long-Term Incentive Plan (the “2019 Plan”) that reserves up to 102,000 shares of MHI voting common stock for award issuances. It provides for the grant of options, restricted stock awards, restricted stock units, stock appreciation rights, performance units, performance bonuses, stock awards, and other incentive awards to eligible employees, consultants and eligible directors, subject to the conditions set forth in the 2019 Plan. In 2019, the shareholders of MHI approved the 2019 Plan. All awards are required to be established, approved, and/or granted by the Compensation Committee of the Board. In 2020, the Board adopted a new equity incentive plan titled the 2020 Long-Term Incentive Plan (the “2020 Plan”) that reserves up to 350,000 shares of MHI voting common stock for award issuances. The terms of the 2020 Plan are essentially the same as the 2019 Plan. In 2021, the shareholders of MHI approved the 2020 Plan. During 2022, the Board approved the addition of 150,000 shares of voting common stock to be added to the 2020 Plan for future awards and these shares were approved by the shareholders of MHI. Stock Options In accordance with the stockholder-approved equity incentive plans above, the Company grants stock options to employees and directors for the purchase of common stock at exercise prices established at the date of the grants. Fair value and compensation at grant date are calculated using the Black Scholes Model. Compensation expense for option shares is expensed on a straight-line basis over the requisite service periods, accounting for forfeitures as they occur. Stock options become exercisable under various vesting schedules (typically two Changes in outstanding options were as follows: Weighted Average Exercise Price Per Share Range of Option Exercise Prices per Share Total Outstanding, Vested and December 31, 2022 $ 32.21 $ 11.20 - 55.02 319,121 271,517 47,604 Granted 17.12 17.12 5,000 5,000 - Prior year adjustment 11.20 11.20 750 750 - Vested 38.14 55.02 - (4,550) 4,550 Exercised - - - - - Forfeited 37.51 25.00 - 55.02 (2,400) (2,400) - Expired - - - - - March 31, 2023 $ 31.93 $ 11.20 - 55.02 322,471 270,317 52,154 Option information segregated by ranges of exercise prices were as follows: March 31, 2023 Total Outstanding Options Vested and Exercisable Range of Option Exercise Prices per Share Options Weighted Average Exercise Price per Share Weighted Average Remaining Term Options Weighted Average Exercise Price per Share Weighted Average Remaining Term > $50.00 46,803 $ 60.37 7.80 4,550 $ 55.02 7.84 $40.00 - $49.99 91,709 57.46 7.94 36,042 41.25 7.79 $30.00 - $39.99 - - - - - - $20.00 - $29.99 21,090 31.18 7.55 7,277 25.00 7.08 $10.00 - $19.99 110,715 13.75 9.25 4,285 16.37 8.73 < $10.00 - $ - - - $ - - The weighted average exercise prices of vested and exercisable options as of March 31, 2023, were $38.14. As of March 31, 2023, based on a closing stock price of $15.80 per share, the aggregate intrinsic (in-the-money) values of vested options and all options outstanding were $0.0 million and $0.3 million, respectively. Restricted Stock and Restricted Stock Units In 2020, the Company awarded 18,597 shares of restricted stock, had a grant date fair value of $41.25 per share and were subject to time-based vesting requirements of one-fourth 5,089 restricted stock units (“RSUs”) were granted to our non-employee directors in June 2021 with a grant date fair value of $24.34 per share and vested on June 14, 2022, the date of the Company’s 2022 annual meeting of stockholders. The compensation expense relating to these awards was calculated using the grant date fair value and is amortizing on a straight-line basis over the requisite service periods. On June 14, 2022, the Company granted 18,718 RSUs to our non-employee directors with a grant date fair value of $11.22 per share. The RSUs will vest at the earlier of the date of our 2023 annual meeting of stockholders or June 14, 2023. The compensation expense relating to these awards was calculated using the grant date fair value and is amortized on a straight-line basis over the requisite service periods. Total Outstanding Units Vested Units Units Weighted Average Grand Date Fair Value Units Weighted Average Grant Date Fair Value December 31, 2022 17,207 $ 13.84 1,163 $ 50.00 Granted - - - - Vested - - - - Forfeited - - - - Released - - - - March 31, 2023 17,207 $ 13.84 1,163 $ 50.00 The table below identifies the assumptions used in the Black Scholes Model to calculate the compensation expense: March 31, December 31, 2023 2022 Volatility 287.29% 4.16% - 4.26% Weighted-average volatility 287.3% 3.7% Expected term (in years) 6.54 2 - 7 Risk-free rate 3.57% 0.02% - 2.15% For the three months ended March 31, 2023 and 2022, we amortized the compensation expense related to the 2019 and 2020 Plans, from the stock grants above, over vesting tranches which resulted in expense and an increase in additional paid in capital of $0.3 million and less than $0.1 million, respectively. The tables below shows the remaining non-vested shares under the 2019 and 2020 Plans as of March 31, 2023 and December 31, 2022, respectively: March 31, 2023 Awards Outstanding Weighted Average Grant-Date Fair Value Weighted Average Exercise Price Nonvested stock options and restricted Stock unit awards at December 31, 2022 287,561 $ 16.96 $ 32.29 Options granted 5,000 16.56 17.12 Adjustment for Prior Year Options 750 $16.56 $11.20 Restricted stock units granted - - - Vested (4,550) 34.95 55.02 Forfeited or expired (2,400) 23.02 37.51 Ending Balance at March 31, 2023 286,361 $ 16.93 $ 31.93 December 31, 2022 Stock Options Outstanding Weighted Average Grant-Date Fair Value Weighted Average Exercise Price Nonvested stock options and restricted stock unit awards at December 31, 2021 317,217 $ 25.80 $ 40.13 Options granted 117,367 9.57 14.92 Restricted stock units granted 18,718 — — Vested (56,678) 21.12 36.53 Forfeited (109,063) 23.82 38.87 Ending Balance at December 31, 2022 287,561 $ 16.96 $ 32.29

Statutory Net Income and Surplu

Statutory Net Income and Surplus	3 Months Ended
Statutory Net Income and Surplus	Mar. 31, 2023
Statutory Net Income and Surplus
Statutory Net Income and Surplus	Note 12. Statutory Net Income and Surplus American Life and Seneca Re are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Nebraska Department of Insurance and the Vermont Department of Insurance. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The following table represents the net gains or (losses) as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: Three months ended March 31, (In thousands) 2023 2022 American Life $ (16,588) $ 9,593 SRC1 $ 3,214 $ (822) SRC3 $ 288 $ 469 The following table represents the Capital and Surplus as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: (In thousands) March 31, 2023 December 31, 2022 American Life $ 59,971 $ 69,936 SRC1 $ 12,829 $ 9,615 SRC3 $ 6,334 $ 6,023 The following table represents the premiums sales as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: Three months ended March 31, (In thousands) 2023 2022 American Life $ 92,287 $ 58,118 SRC1 $ - $ - SRC3 $ 175 $ (148) State insurance laws require American Life to maintain certain minimum capital and surplus amounts on a statutory basis. American Life is subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from its domiciliary insurance regulatory authorities. American Life is also subject to risk-based capital (“RBC”) requirements that may further affect its ability to pay dividends. American Life’s statutory capital and surplus as of March 31, 2023 and December 31, 2022, exceeded the amount of statutory capital and surplus necessary to satisfy regulatory requirements, including the RBC requirements as of those dates. As of March 31, 2023 and December 31, 2022, American Life did not hold any participating policyholder contracts where dividends were required to be paid.

Third-party Administration

Third-party Administration	3 Months Ended
Third-party Administration	Mar. 31, 2023
Third-party Administration
Third-party Administration	Note 13. Third-party Administration The Company, through its investment advisory subsidiary 1505 Capital, offers investment and structuring services. Our reinsurance partners may choose to engage 1505 as the investment advisor for their portfolios. Services are also available to unaffiliated investors. As of March 31, 2023, 1505 Capital had $828.6 million of third-party assets under management.

Policy Administration Fees

Policy Administration Fees	3 Months Ended
Policy Administration Fees	Mar. 31, 2023
Policy Administration Fees
Policy Administration Fees	Note 14. Policy Administration Fees The company generates revenue through policy administration for our third-party reinsurers, as well as fees received from early termination of policies. For the three months ended March 31, 2023 and 2022, we received $0.6 million and $0.3 million of fees.

Related Party

Related Party	3 Months Ended
Related Party	Mar. 31, 2023
Third-party Administration
Related Party	Note 15. Related Party Crestline On April 24, 2020, we entered into a Securities Purchase Agreement with Crestline Assurance Holdings LLC (“Crestline”) an institutional alternative investment management firm under which we issued 444,444 shares of our voting common stock to Crestline. We contributed $5.0 million of the net proceeds to American Life and used $3.3 million of the proceeds to capitalize Seneca Re and its first protected cell. We also entered into a Stockholders Agreement along with Xenith and Vespoint that grants Crestline certain rights. Also, Douglas K. Bratton, a principal of Crestline, was appointed as a director of both our Board and the American Life Board of Directors. In addition, on April 24, 2020, American Life entered into a three-year master letter agreement and related reinsurance, trust and asset management agreement with Seneca Re and a Crestline affiliate regarding the flow of annuity reinsurance and related asset management, whereby Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of American Life arising from its MYGA and quota share percentage of 40% the liabilities of American Life arising from its FIA products. Through March 31, 2023, American Life had ceded $1.0 million face amount of annuities to Crestline Re SP1. American Life received total ceding commissions of $0.9 million and expense reimbursements of $0.9 million in connection with these transactions for three months ended March 31, 2023. The Reinsurance Agreement also contains the following agreements: ● American Life and Crestline Re SP1 each entered into investment management agreements with Crestline, pursuant to which Crestline manages the assets that support the reinsured business; and ● American Life and Crestline Re SP1 entered into a trust agreement whereby Crestline maintains for American Life’s benefit a trust account that supports the reinsured business. On September 16, 2022, Midwest Holding and Crestline executed a Letter of Understanding relating to the Stockholders Agreement. The Company and Crestline agreed that Crestline’s representative on would resign from the Boards of Directors of the Company and American Life. Notwithstanding the foregoing, the parties agreed that the resignation and Crestline’s decision to no longer appoint a director does not constitute a permanent waiver of Crestline’s rights under the Stockholders Agreement to appoint a Crestline Designated Director. The Company and Crestline agreed that the foregoing described agreement will remain in place until the earlier to occur of the date (i) the parties reach written agreement otherwise, (ii) that Crestline is no longer an affiliate of a life insurance entity it recently acquired and (iii) on which Crestline no longer has the right to elect or appoint a Designated Director and Observer to the Board. As of March 31, 2023, Crestline has approximately $472.4 million of the Company’s assets under management and is a subadvisor on approximately $142.9 million of additional investments. Chelsea On June 29, 2020, Midwest’s subsidiary, American Life, purchased a 17% interest in Financial Guaranty UK Limited through an economic interest in Chelsea Holdings Midwest LLC. American Life has a note receivable from Chelsea Holdings Midwest LLC with an interest rate of 5% per annum that was rated BBB+ by a nationally recognized statistical rating organization (“NRSRO”) and Class B preferred shares in Chelsea Holdings Midwest LLC. This note is being carried at cost plus PIK of $6.3 million, and the preferred shares are carried at a fair market value of $2.3 million, based upon valuations received from an independent their-party, as of March 31, 2023.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies.
Commitments and Contingencies	Note 16. Commitments and Contingencies Contingent Commitments: (In thousands) March 31, 2023 December 31, 2022 Due in one year or less $ 74,790 $ 52,951 Due in two years 31,970 43,604 Due in three years 24,030 7,731 Due in four years 13,409 13,277 Due in five years and after 54,174 61,432 $ 198,373 $ 178,995 Legal Proceedings: Regulatory Matters:

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events
Subsequent Events	Note 17. Subsequent Events On April 30, 2023, Midwest Holding Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Midas Parent, LP, a Delaware limited partnership (“Parent”) and an affiliate of Antarctica Capital, LLC (“Antarctica”), and Midas Merger Acquisition Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which Merger Sub will merge with and into the Company and whereupon Merger Sub will cease to exist and the Company will be the surviving corporation in the Merger and will continue as a wholly-owned subsidiary of Parent (the “Merger”). The board of directors of the Company (the “Company Board”) has unanimously approved and declared it advisable to enter into the Merger Agreement and resolved to recommend that the Company’s stockholders approve the adoption of the Merger Agreement and the transactions contemplated thereby (the “Transactions”), including the Merger on the terms and subject to the conditions set forth in the Merger Agreement. As a result of the Merger, at the effective time of the Merger (the “Effective Time”), each outstanding share of common stock of the Company, par value $0.001 per share (the “Company Common Stock”) (other than (i) Company Common Stock held by Parent or the Company or any of their respective wholly owned subsidiaries, and (ii) any shares of Company Common Stock who properly exercise appraisal rights under Delaware law), outstanding immediately prior to the Effective Time, will be converted into the right to receive $27.00 per share in cash, without interest. Consummation of the Merger is subject to certain conditions, including, but not limited to, (i) the Company’s receipt of approval of the Company’s stockholders, (ii) the absence of any law or order prohibiting or making illegal the consummation of the Merger, (iii) the approval of the Merger by the Nebraska Department of Insurance and Vermont Department of Financial Regulation without the imposition of any Burdensome Condition (as defined in the Merger Agreement), and (iv) the absence of any Company Material Adverse Effect (as defined in the Merger Agreement). In connection with the Merger Agreement, certain stockholders entered into voting agreements (the “Voting Agreements”) with Parent pursuant to which, among other things, the stockholders agreed to vote their shares of Company Common Stock representing approximately 33% of the shares of Company Common Stock outstanding as of the date of the Merger Agreement in favor of the approval and adoption of the Merger, the Merger Agreement or any related action reasonably required in furtherance thereof, and against any acquisition proposal or any action that would reasonably be expected to prevent, materially delay or materially impair the consummation of the Merger or the Transactions. The Voting Agreements terminate upon the first to occur of (i) the Effective Time, (ii) the termination of the Merger Agreement in accordance with its terms, (iii) with respect to any stockholder, the mutual written agreement of such stockholder and Parent or (iv) any amendment to the Merger Agreement that decreases the amount of, or changes the form of, the Merger Consideration or increases the liabilities or obligations of such stockholders without the consent of such stockholder, upon written notice by such stockholder to Parent within ten (10) Business Days of such amendment.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations	Nature of Operations Midwest Holding Inc. (“Midwest,” “the Company,” “we,” “our,” or “us”) was incorporated in Nebraska on October 31, 2003 for the primary purpose of operating a financial services company. The Company redomesticated from the State of Nebraska to the State of Delaware on August 27, 2020. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiaries, American Life & Security Corp. (“American Life”), and 1505 Capital LLC (“1505 Capital”) as well as through its sponsored captive reinsurance company, Seneca Reinsurance Company, LLC (“Seneca Re”). American Life is a Nebraska-domiciled life insurance company, that was licensed to sell, underwrite, and market life insurance and annuity products in 24 states and the District of Columbia as of March 31, 2023. Effective March 12, 2020, Seneca Re, a Vermont limited liability company, was formed by Midwest to operate as a sponsored captive insurance company for the purpose of insuring and reinsuring various types of risks of its participants through one or more protected cells and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont insurance regulations. On March 30, 2020, Seneca Re received its Certification of Authority to transact the business of a captive insurance company. On May 12, 2020, Midwest contributed $0.3 million to Seneca Re for a 100% ownership interest. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re and as of March 31, 2023, Seneca Re has three incorporated cells, Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Re Incorporated Cell 2021-03 (“SRC3”), which are consolidated in our financial statements. Additionally, Seneca Re Incorporated Cell 2022-04 (“SRC4) was established on September 30, 2022, however management has determined that the entity does not qualify for consolidation into our financial statements. Midwest initially owned a 100% interest in SRC1, however on December 30, 2021, Midwest closed the sale of approximately 70% of SRC1 to a subsidiary of ORIX Corporation USA (“ORIX USA”) for $15.0 million. Under the terms of the agreement, Midwest now holds a 30% ownership interest in SRC1. ORIX Advisers, LLC, another subsidiary of ORIX USA, is the manager of the assets underlying SRC1’s reinsurance obligations going forward, replacing Midwest’s asset management arm, 1505 Capital. On July 27, 2020, American Life entered into a reinsurance agreement (the “Reinsurance Agreement”) with a new protected cell formed by Seneca Re (Seneca Incorporated Cell, LLC 2020-02 (“SRC2”)). SRC2 was capitalized by Crestline Management, L.P. (“Crestline”), a significant shareholder of Midwest via a Crestline subsidiary, Crestline Re SPC1. The Reinsurance Agreement, which was effective as of April 24, 2020, was entered into pursuant to a Master Letter Agreement (the “Master Agreement”) dated and effective as of April 24, 2020, among American Life, Seneca Re and Crestline. The Reinsurance Agreement supports American Life’s new business production by providing reinsurance capacity for American Life to write certain kinds of fixed and multi-year guaranteed annuity products. Concurrently with the Reinsurance Agreement: ● American Life and SRC2 each entered into investment management agreements with Crestline, pursuant to which Crestline manages the assets that support the reinsured business; and ● American Life and SRC2 entered into a trust agreement whereby SRC2 maintains for American Life’s benefit a trust account that supports the reinsured business. Under the Master Agreement, Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of American Life arising from its multi-year guaranteed annuities (“MYGA”) and a quota share percentage of 40% of the liabilities of American Life arising from its fixed indexed annuity (“FIA”) products. The Master Agreement expires on April 24, 2023. In addition, pursuant to the Master Agreement, the parties thereto have agreed to enter into one or more separate agreements whereby, among other things and subject to certain conditions, American Life will agree to reinsure additional new business production to one or more reinsurers formed and/or capitalized by Crestline, Midwest or an appropriate affiliate will be compensated for providing administrative services to certain advisory clients of Crestline, and American Life will consider investing in certain assets originated or sourced by Crestline. On June 26, 2021, the Nebraska Department of Insurance (‘NDOI”) issued its non-disapproval of the Modified Coinsurance Agreement (“Modco AEG Agreement”) of American Life with American Republic Insurance Company (“AEG”), an Iowa domiciled reinsurance company. The agreement closed on June 30, 2021. Under the Modco AEG Agreement, American Life cedes to AEG, on a modified coinsurance basis, 20% quota share of certain liabilities with respect to its MYGA-5 business and an initial 20% quota share of certain liabilities with respect to its FIA products. American Life has established a Modco Deposit Account to hold the assets for the Modco AEG Agreement. Effective February 28, 2023, AEG elected not to extend its commitment period for reinsuring liabilities under its Modco AEG Agreement. As a result, AEG’s current quota share with respect to MYGA and FIA policies is 0%. The AEG Coinsurance Agreement remains in place, and AEG remains responsible for previously ceded liabilities. In November 2021, Midwest purchased 100% ownership of an intermediary holding company which immediately purchased 100% of SRC3 Class A and B capital stock. Also, on November 10, 2021, American Life and SRC3 entered into a Funds Withheld and Modified Coinsurance Agreement, whereby, SRC3 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA products and quota share percentage of 45% of the liabilities of American Life arising from its FIA products. In the fourth quarter of 2022, the agreement with SRC3 was amended to provide a one time reinsurance funding for a quota share of $10.0 million of the liabilities of American Life arising from its FIA products. On September 30, 2022, American Life entered into a reinsurance agreement (the “Reinsurance Agreement”) with a new protected cell formed by Seneca Re (Seneca Incorporated Cell, LLC 2022-04 (“SRC4”)). SRC4 was capitalized by loans from Embrace Software, Inc (“Embrace”) and Tillman Networks LLC (“Tillman”). The Reinsurance Agreement was effective as of July 1, 2022, among American Life and Seneca Re. The Reinsurance Agreement supports American Life’s new business production by providing reinsurance capacity for American Life to write certain kinds of fixed indexed and multi-year guaranteed annuity products. Under the Reinsurance Agreement, SRC4 agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its MYGA-5 products and a quota share percentage of 10% of the liabilities of American Life arising from its MYGA-3 products. American Life has established a Modco Deposit Account, a Funds Withheld custody account, and a Trust Account pursuant to the Reinsurance Agreement. The initial settlement included net premium of $21.4 million and net reserves of $21.5 million for the modified coinsurance account. Also on September 30, 2022, American Life entered into an Investment Management Agreement (“IMA”) with CoVenture Management, LLC (“CoVenture”) naming CoVenture as the manager of certain assets held by American Life on behalf of SRC4. Management evaluates the Company as one reporting segment in the life insurance industry. The Company is primarily engaged in the underwriting and marketing of annuity products through American Life, and then reinsuring such products with third-party reinsurers, and since May 13, 2020, with Seneca Re protected cells. American Life’s legacy product offerings consisted of a multi-benefit life insurance policy that combined cash value life insurance with a tax deferred annuity and a single premium term life product. American Life presently offers six annuity products: two MYGAs, two FIAs, and two bonus plans associated with the FIA product. It is not presently offering any traditional life insurance products.
Basis of Presentation	Basis of Presentation These consolidated financial statements for the three months ended March 31, 2023 and 2022 have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following is a summary of our significant accounting policies and estimates. These accounting policies inherently require significant judgment and assumptions, and actual operating results could differ significantly from management’s estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. All intercompany accounts and transactions have been eliminated in consolidation and certain immaterial reclassifications have been made to the prior period results to conform to the current period’s presentation with no impact on results of operations or total stockholders’ equity.
Credit Loss Impairments for Fixed Maturities and Other Invested Assets	Credit Loss Impairments for Fixed Maturities and Other Invested Assets The Company adopted new current expected credit loss guidance on January 1, 2023 impacting the Company’s investment portfolio. If the Company has not made the decision to sell and it is not more likely than not that the Company will be required to sell before the anticipated recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity. The Company estimates the anticipated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the fixed maturity’s current effective rate and are compared to the amortized cost basis of the fixed maturity. The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the fixed maturity. All reasonably available information relevant to the collectability of the fixed maturity are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the fixed maturity, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the insurer, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate the anticipated recovery value if the Company determines that the fixed maturity is dependent on the liquidation of collateral for ultimate settlement. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis, a credit loss allowance is recorded as a net investment loss for the shortfall in expected cash flows; however, the amortized cost basis, net of the credit loss allowance, may not be lower than the fair value of the fixed maturity. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed maturity does not have sufficient cash flows or other information to estimate a recovery value for the fixed maturity, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recognized as a net investment loss. When a fixed maturity is sold or otherwise disposed or the fixed maturity is deemed uncollectible and written-off, the Company reverses amounts previously recognized in the credit loss allowance through net investment gains (losses). Recoveries after write-offs are recognized when received. The Company does not measure a credit loss allowance on accrued interest receivable as accrued interest receivable is written off to net investment income in a timely manner when there are concerns regarding collectability
Fixed Maturities	Fixed Maturities All fixed maturities owned by the Company are considered available-for-sale and are included in the consolidated financial statements at their fair value, net of allowances for expected credit losses, as of the financial statement date. Premiums and discounts on fixed maturity debt instruments are amortized using the scientific-yield method over the term of the instruments. Realized gains and losses on fixed maturities sold during the year are determined using the specific identification method. Unrealized holding gains and losses, net of applicable income taxes, are included in accumulated other comprehensive (loss) income. Investment income consists of interest, dividends, gains and losses from investments, and real estate income, which are recognized on an accrual basis along with the amortization of premiums and discounts. Certain available-for-sale investments are maintained as collateral under Funds Withheld (“FW”) and Modified Coinsurance (“Modco”) agreements but the assets and total returns or losses on the asset portfolios belong to the third-party reinsurers. American Life has treaties with several third-party reinsurers that have FW and Modco provisions. In a Modco agreement, the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a FW agreement, assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurers to reduce the potential credit risk. The unrealized gains/losses on those investments are passed through to the third-party reinsurers as either a realized gain or loss on the Consolidated Statements of Comprehensive Loss.
Mortgage Loans on Real Estate	Mortgage Loans on Real Estate Mortgage loans on real estate, held for investment are carried at unpaid principal balances, net of allowance for expected credit losses. Interest income is recognized in net investment income at the contract interest rate when earned. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement. Valuation allowances for impairments on mortgage loans are established based upon losses expected by management to be realized in connection with future dispositions or settlements of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan’s original effective interest rate and disposition of collateral. These evaluations are revised as conditions change and added information becomes available. As of March 31, 2023, the Company held one asset valued at $7.7 million with a total impairment of $1.4 million , and one asset with an impairment for the full value of $0.6 million. At December 31, 2022, the company had one asset valued at $7.7 million with a total impairment of $1.4 million.
Derivative Instruments	Derivative Instruments Derivatives are used to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. To qualify for hedge accounting, at the inception of the hedging relationship, the Company must formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we would identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that would be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which would be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness would be formally assessed at inception and periodically throughout the life of the designated hedging relationship. During the last quarter of 2020, the Company began investing in futures to hedge the fluctuations in various aspects of our business. The formal documentation and hedge effectiveness was not completed at the date we entered into those futures contracts; therefore, they do not qualify for hedge accounting. The futures change in fair market values were recorded on our Consolidated Statements of Comprehensive Loss as realized gains or (losses). Additionally, reinsurance agreements written on a FW or Modco basis contain embedded derivatives on our annuity products. Gains or (losses) associated with the performance of assets maintained in the modified coinsurance deposit and funds withheld accounts are reflected as realized (losses) or gains in the Consolidated Statements of Comprehensive Loss.
Equity Securities	Equity Securities Equity securities at March 31, 2023, consisted of exchange traded funds (“ETFs”). The ETFs are carried at fair value with the change in fair value recorded through realized gains and losses in the Consolidated Statements of Comprehensive Loss. As of March 31, 2023, we held $5.2 million of ETFs and $5.1 million of ETFs as of December 31, 2022.
Preferred Stock	Preferred Stock The company holds investments in preferred stock of $32.7 million as of March 31, 2023. Changes in the fair value of preferred stock are recorded through unrealized gains and losses in net investment income in the Consolidated Statements of Comprehensive Loss. In 2020 American Life entered into a series of transactions with an unaffiliated entity, Ascona Group Holdings Ltd (“AGH”) aquiring preferred equity and warrants, and later created a special purpose vehicle, Ascona Asset Holding LLC (“AAH”), to hold the preferred equity and warrants, and later created Ascona Collinwood HoldCo LLC (“ACH”) to be the sole member of AAH. American Life and Crestline Re SP1 own 74% and 26%, respectively, of ACH. American Life is carrying the preferred equity and warrants at a market value in USD of $11.3 million as of March 31, 2023 and $10.5 million of December 31, 2022. For the three months ended March 31, 2023, $2.3 million of investment income related to ACH was recognized, and $0.6 million was attributed to the noncontrolling interest held by Crestline Re SP1. For the three months ended March 31, 2022, $1.7 million of investment income was recognized, and $0.4 million was attributed to Crestline Re SP1.
Other Invested Assets	Other Invested Assets Other invested assets consists of approximately $83.6 million of various investments. Of this total, approximately $73.3 million are primarily collateral loans, and $11.5 million of private credit and equipment leases. The collateral loanes, private credit and equipment leases are carried at fair market value, net of allowance for expectd credit losses. Also, we had an initial investment of $19.0 million investment in a private fund between American Life and an unaffiliated entity, PF Collinwood Holdings, LLC (“PFC”), with American Life owning 100% of the entity effective January 2021. The fair value of the PFC investment as of March 31, 2023, was $13.7 million and as of December 31, 2022, $13.7 million, respectively, with any change in fair market value recorded in unrealized gains and losses in equity on the balance sheet. On February 2, 2022, we established a special purpose vehicle, Python Asset Holding LLC, with American Life owning 100% of the entity with an initial investment of $7.4 million. As of March 31, 2023, our investment in Python was carried at the net asset value (“NAV”) plus approximately $0.4 million of investment income.
Deposits and notes receivable	Deposits and notes receivable Investment escrow The Company held in escrow $1.4 million and $0.8 million as of March 31, 2023 and December 31, 2022, respectively. The cash held at year end was used to purchased mortgages in April and January 2023, respectively. Federal Home Loan Bank stock American Life initially purchased Federal Home Loan Bank of Topeka (“FHLB”) common stock on May 5, 2021. This investment was to solidify our membership with FHLB Topeka. The carrying value of FHLB stock approximates fair value since the Company can redeem the stock with FHLB at cost. As a member of the FHLB, the Company is required to purchase this stock, which is carried at cost and classified as restricted equity securities. Membership allows access to various funding arrangements to provide a source of additional liquidity. As of March 31, 2023, the Company had pledged assets with a market value of $145.7 million to FHLB to allow a borrowing capacity of $131.1 million and $121.1 million pledged as of December 31, 2022. As of March 31, 2023 we had $60.0 million of outstanding funding arrangements, and $29.0 million outstanding as of December 31, 2022. Notes Receivable The Company held notes receivable carried at fair value of $6.3 million and $6.3 million as of March 31, 2023 and December 31, 2022, respectively, between American Life and a related party. The note receivable has an annual interest rate of 5% which is paid in kind (“PIK”) interest per annum that increases the outstanding note balance. This note was rated BBB+ by a nationally recognized statistical rating organization. This note matures on June 18, 2050. See Note 15 – Related Party – Chelsea for details regarding this note.
Policy Loans	Policy Loans Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. No valuation allowance is established for these policy loans as the amount of the loan is fully secured by the death benefit of the policy and cash surrender value.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all liquid investments with original maturities of three months or less when purchased to be cash equivalents.
Deferred Acquisition Costs	Deferred Acquisition Costs Deferred acquisition costs (“DAC”) consist of incremental direct costs, net of amounts ceded to third-party reinsurers, that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. These costs are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. The Company evaluates the types of acquisition costs it capitalizes. The Company capitalizes agent compensation and benefits and other expenses that are directly related to the successful acquisition of contracts. The Company also capitalizes expenses directly related to activities performed by the Company, such as underwriting, policy issuance, and processing fees incurred in connection with successful contract acquisitions. The following table represents a roll forward of DAC, net of reinsurance: (In thousands) March 31, 2023 December 31, 2022 Beginning balance $ 43,433 $ 24,530 Additions 7,200 23,857 Amortization (1,703) (3,905) Interest (374) (883) Impact of unrealized investment losses (406) (166) Ending Balance $ 48,150 $ 43,433 Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense. The Company performs a recoverability analysis annually in the fourth quarter unless events occur which in management’s judgment require an immediate review. The Company performed a recoverability analysis during the first quarter of 2023 and determined that all DAC balances were recoverable as of March 31, 2023 and December 31, 2022.
Premiums Receivable	Premiums Receivable Premiums receivable consists of premiums earned on our legacy insurance business which have been earned but have not yet been collected. Amounts are receivable from our legacy business partners and were consistent at $0.4 million and $0.4 million in 2023 and 2022 respectively.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Annual depreciation is primarily computed using straight-line methods for financial reporting and straight-line and accelerated methods for tax purposes. Furniture and equipment is depreciated over three Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of the asset are capitalized. The net book value of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in earnings. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. The Company determined that no such events occurred in the periods covered by the Consolidated Financial Statements that would indicate the carrying amounts may not be recoverable.
Reinsurance	Reinsurance We seek to reinsure a significant portion of our new annuity policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. Under these reinsurance agreements, we expect there will be a monthly or quarterly settlement of premiums, claims, surrenders, collateral, and other administration fees. We believe this will help preserve American Life’s capital while supporting its growth because American Life will have lower capital requirements when its business is reinsured due to lower overall financial exposure versus retaining the insurance policy business itself. See Note 7 below for further discussion of our reinsurance activities. There are two main categories of reinsurance transactions: 1) “indemnity,” where we cede a portion of our risk but retain the legal responsibility to our policyholders should our reinsurers not meet their financial obligations; and 2) “assumption,” where we transfer the risk and legal responsibilities to the reinsurers. The reinsurers are required to acquire the appropriate regulatory and policyholder approvals to convert indemnity policies to assumption policies. Our reinsurers may be domestic or foreign capital markets investors or traditional reinsurance companies seeking to assume U.S. insurance business. We plan to mitigate the credit risk relating to reinsurers generally by requiring other financial commitments from the reinsurers to secure the reinsured risks (such as posting substantial collateral). It should be noted that under indemnity reinsurance agreements American Life remains exposed to the credit risk of its reinsurers. If one or more reinsurers become insolvent or are otherwise unable or unwilling to pay claims under the terms of the applicable reinsurance agreement, American Life retains legal responsibility to pay policyholder claims, which in such event would likely materially and adversely affect the capital and surplus of American Life. Midwest formed Seneca Re in early 2020, followed by Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Incorporated Cell, LLC 2021-03 (“SRC3”) which are consolidated in these financial statements. Midwest sold 70% ownership of SRC1 to an ORIX Corporation USA subsidiary on December 30, 2021, and retained 30% ownership. Midwest maintains control over SRC1 and we continue to consolidate SRC1, in these financial statements. Additionally, Seneca Re has established Seneca Incorporated Cell, LLC 2022-04; however, management has determined that Midwest does not control the entity and thus it is not consolidated into these financial statements. American Life entered into a novation agreement with SRC2 and Crestline Re SPC, for and on behalf of Crestline Re SP1, under which the above-described reinsurance, trust and related asset management agreements were novated and replaced with substantially similar agreements entered into by American Life and Crestline Re SP1. Some reinsurers are not and may not be “accredited” or qualified as reinsurers under Nebraska law and regulations. In order to enter into reinsurance agreements with such reinsurers and to reduce potential credit risk, American Life holds a deposit or withholds funds from the reinsurer or requires the reinsurer to maintain a trust that holds assets backing up the reinsurer’s obligation to pay claims on the business it assumes. The reinsurer may also appoint an investment manager for such funds, which in some cases may be our investment adviser subsidiary, 1505 Capital, to manage these assets pursuant to guidelines adopted by us that are consistent with Nebraska investment statutes and reinsurance regulations. American Life currently has treaties with several third-party reinsurers and one related party reinsurer. In a Modco agreement, the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a FW agreement, assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurers, to reduce the potential credit risk. Under those provisions with third-party reinsurers, the assets backing the treaties are maintained by American Life as investments but the assets and total returns or losses on the investments are owned by the reinsurers. Under GAAP, this arrangement is considered an embedded derivative as discussed in Comprehensive Loss and Note 4 below. Assets carried as investments on American Life’s financial statements for the third-party reinsurers contained cumulative unrealized gains and (losses) as of March 31, 2023 and December 31, 2022. The terms of the contracts with the third-party reinsurers provide that changes in the unrealized gains and losses on the portfolios accrue to the third-party reinsurers. To recognize changes in the third-party unrealized gains and (losses), American Life records the year -to-date change as an offsetting realized (loss) or gain in Net Realized (Loss) Gain on Investments on the Consolidated Statements of Income and in amounts recoverable from third-party reinsurers on the Consolidated Balance Sheets. For further discussion see Note 4 below.
Benefit Reserves	Benefit Reserves The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon estimates at the time of issue for investment yields, mortality and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables.
Policy Claims	Policy Claims Policy claims are based on reported claims plus estimated incurred but not reported claims developed from trends of historical data applied to current exposure.
Deposit-type Contracts	Deposit-type Contracts Deposit-type contracts consist of amounts on deposit associated with deferred annuity riders, premium deposit funds and supplemental contracts without life contingencies. Deposit-type contracts also include balances outstanding under funding agreements with the Federal Home Loan Bank of Topeka (“FHLB”). The funding agreements are carried at cost. Amounts received and repaid under FHLB funding agreements are classified as financing activities in the Company's Consolidated Statements of Cash Flows. In 2021, the Company became a member of FHLB, which provides access to collateralized borrowings and other FHLB products. Any borrowing from FHLB requires the purchase of FHLB activity-based common stock in an amount equal to 4.5% of the borrowing. In 2022, the Board authorized a maximum amount equal to 5% of net aggregate admitted retained assets of American Life for FHLB advances and funding agreements combined. In 2023 and 2022, American Life received advances of $31.0 million and $60.0 million respectively, from FHLB under funding agreements and made no repayments on FHLB funding agreements. Outstanding advances under FHLB funding agreements are reported as part of deposit-type contracts in the Consolidated Balance Sheets and totaled $60.0 million as of March 31, 2023, and $29.0 million as of December 31, 2022. Interest on the funding agreements accrues at their effective interest rates. As of March 31, 2023, scheduled maturity dates for outstanding FHLB funding agreements were as follows: (Dollar amounts in thousands) Interest Maturity Date Rate Amount March 1, 2024 5.10% $ 16,000 January 22, 2025 5.47% 13,000 January 22, 2025 5.17% 2,000 August 16, 2025 5.48% 8,000 September 1, 2027 5.40% 4,000 September 15, 2027 5.20% 8,000 October 1, 2027 5.41% 9,000 $ 60,000
Note Payable	Note Payable On November 22, 2022, the Company entered into a three-year senior secured revolving credit agreement (“Credit Agreement”) with Royal Bank of Canada and other lenders with a capacity of $30.0 million (the “Revolving Credit Facility”). The maturity date of the Credit Agreement is November 22, 2025. The obligations under the Credit Agreement are secured by a first priority lien on a variety of our assets. The balance of the revolving credit was $25.0 million at March 31, 2023, and December 31, 2022, with $5.0 million unutilized credit.
Deferred Gain on Coinsurance Transactions	Deferred Gain on Coinsurance Transactions American Life entered several reinsurance contracts where it has earned or is earning ceding commissions. These ceding commissions are recorded as a deferred liability and amortized over the life of the business ceded. American Life receives commission and administrative expenses from reinsurance transactions that represent recovery of acquisition costs. These remittances first reduce the DAC associated with the reinsured blocks of business with the remainder being included in the deferred gain on coinsurance transactions that is also being amortized.
Revenue Recognition and Related Expenses	Revenue Recognition and Related Expenses Amounts received as payment for annuities are recognized as deposits to policyholder account balances and are included in deposit-type liabilities. Revenues from these contracts are comprised of fees earned for administrative and contract-holder services and cost of insurance, which are recognized over the period of the contracts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows. Revenues on traditional life insurance products consist of direct and assumed premiums reported as earned when due. Liabilities for future policy benefits provided and acquisition costs are amortized by associating benefits and expenses with earned premiums to recognize related profits over the life of the contracts. Acquisition costs are amortized over the expected life of the annuity contracts. Service fee revenue is comprised of third-party administration (“TPA”) fees and investment management fees: ● The TPA fees are related to accounting services performed based on service agreements with varying lengths. Revenue associated with TPA fees are only recognized when the services are performed, which is typically on a monthly or quarterly basis. ● Fees for investment management fees are based on the total assets managed for each client at a contracted rate. The length of term on the contracts varies by client. The Company accrues investment advisory fees and recognizes revenue based on the market value of the client’s assets at the end of the applicable period, at the client’s contracted rate.
Income Taxes	Income Taxes The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2019. The Company is not currently under examination for any open years for income taxes. The provision for income taxes is based on income as reported in the financial statements. The income tax provision is calculated under the asset and liability method. Deferred tax assets are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are investments, insurance reserves, and DAC. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. The Company has no uncertain tax positions that it believes are more-likely-than not that the benefit will not to be
Comprehensive Loss	Comprehensive Loss Comprehensive Loss is comprised of net income (loss) and other comprehensive loss. Other comprehensive loss includes unrealized gains and losses from fixed maturities classified as available for sale and unrealized gains and losses from other invested assets, net of applicable taxes. American Life has treaties with several third-party reinsurers that have FW and Modco provisions. Under those provisions, the assets backing the treaties are maintained by American Life as collateral but are owned by the third-party reinsurers, thus, the total return on the asset portfolio belongs to the third-party reinsurers. Under GAAP this is considered an embedded derivative as discussed above under “Reinsurance” and in Note 7 below.
Earnings Per Share	Earnings Per Share Basic income per share for the three months ended March 31, 2023 and 2022 was $1.03 and $0.05 respectively, which includes a gain of $7.2 million and loss of $2.8 million from an embedded derivative, respectively. The Company has 20.0 million voting common shares authorized, two million non-voting common shares authorized, and two million preferred shares authorized. There were 3,728,601 voting common shares issued December 31, 2022 Three months ended March 31, 2023 2022 (In thousands, except per share amounts) Numerator: Net income attributable to Midwest Holding Inc. $ 3,829 $ 187 Denominator: Weighted average common shares outstanding 3,728,594 3,737,564 Effect of dilutive securities: Stock options and deferred compensation agreements 80,000 — Denominator for earnings (loss) per common share 3,808,594 3,737,564 Income (loss) per common share $ 1.03 $ 0.05 Income (loss) per common share, diluted $ 1.01 $ 0.05
Adoption of New Accounting Standards	Adoption of New Accounting Standards In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 846): Deferral of the Sunset Date of Topic 848. In 2020, the Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022—12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in ASU 2022-06 defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Measurement of Credit Losses on Financial Instruments In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The amendments in this update include items brought to the FASB’s attention by stakeholders to clarify the guidance in the amendments in ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) which was issued in June 2016. These updated amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Under ASU 2016-13, the incurred loss impairment methodology in current GAAP is replaced with a methodology that reflects expected credit losses that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to maturity debt securities. It also applies to off-balance sheet credit exposures, not accounted for as insurance (loan commitments, standby letters of credit financial guarantees, and other instruments). In addition, ASU 2016-13 made changes to the accounting for available for sale debt fixed maturities. One such change is to require credit losses to be presented as an allowance rather than a write-down on available for sale debt fixed maturities management does not intend to sell or believes that it is not more likely than not they will be required to sell. The new standard became effective for reporting periods beginning after December 15, 2022, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning accumulated deficit. The Company’s implementation activities are complete, and the impacts relate to the Company’s investment portfolio. The Company adopted the new guidance on January 1, 2023 and recognized a cumulative effect adjustment that decreased retained earnings by $4.7 million, in conjunction with the $16.5 million allowance for credit losses and $11.8 million to Reinsurance Recoverables. Future Adoption of New Accounting Standards Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued ASU No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended by ASU 2019-09, Financial Services —Insurance (Topic 944). The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of DAC for virtually all long duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. The new standard becomes effective for reporting periods after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2024 for companies eligible as smaller reporting companies. Early application of the amendments in Update 2018-12 is permitted. We anticipate that the adoption of ASU 2018-12 will have a broad impact on our consolidated financial statements and related disclosures and will require us to make changes to certain of our processes, systems and controls. The Company is evaluating the impact this guidance will have on its results of operations and financial position.

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Nature of Operations and Summary of Significant Accounting Policies
Schedule of deferred acquisition costs	(In thousands) March 31, 2023 December 31, 2022 Beginning balance $ 43,433 $ 24,530 Additions 7,200 23,857 Amortization (1,703) (3,905) Interest (374) (883) Impact of unrealized investment losses (406) (166) Ending Balance $ 48,150 $ 43,433
Summary of scheduled maturity dates for outstanding FHLB funding agreements	(Dollar amounts in thousands) Interest Maturity Date Rate Amount March 1, 2024 5.10% $ 16,000 January 22, 2025 5.47% 13,000 January 22, 2025 5.17% 2,000 August 16, 2025 5.48% 8,000 September 1, 2027 5.40% 4,000 September 15, 2027 5.20% 8,000 October 1, 2027 5.41% 9,000 $ 60,000
Schedule of earnings (loss) per share	Three months ended March 31, 2023 2022 (In thousands, except per share amounts) Numerator: Net income attributable to Midwest Holding Inc. $ 3,829 $ 187 Denominator: Weighted average common shares outstanding 3,728,594 3,737,564 Effect of dilutive securities: Stock options and deferred compensation agreements 80,000 — Denominator for earnings (loss) per common share 3,808,594 3,737,564 Income (loss) per common share $ 1.03 $ 0.05 Income (loss) per common share, diluted $ 1.01 $ 0.05

Investments (Tables)

Investments (Tables)	3 Months Ended
Investments (Tables)	Mar. 31, 2023
Investments
Schedule of Available for Sale Investments	Allowance Gross Gross Amortized for Credit Unrealized Unrealized Estimated (In thousands) Cost Losses Gains Losses Fair Value March 31, 2023: Fixed maturities: Bonds: U.S. government obligations $ 1,215 $ - $ - $ (58) $ 1,157 Mortgage-backed securities 383,960 (3,592) 569 (29,080) 351,857 Asset-backed securities 40,743 (245) 58 (3,653) 36,903 Collateralized loan obligations 349,151 (610) 798 (23,706) 325,633 States and political subdivisions-general obligations 129 - - (2) 127 States and political subdivisions-special revenue - - - - - Corporate 49,403 - 304 (4,520) 45,187 Term loans 592,947 (5,867) 2,199 (6,475) 582,804 Total fixed maturities $ 1,417,548 $ (10,314) $ 3,928 $ (67,494) $ 1,343,668 Mortgage loans on real estate, held for investment 336,175 (2,709) - - 333,466 Derivatives 31,665 - 5,257 (13,108) 23,814 Equity securities 5,592 - - (414) 5,178 Other invested assets 82,004 (1,173) 3,026 (277) 83,580 Preferred stock 36,798 - 2,070 (6,154) 32,714 Deposits and notes receivable 10,447 - - - 10,447 Policy loans 23 - - - 23 Total investments $ 1,920,252 $ (14,196) $ 14,281 $ (87,447) $ 1,832,890 December 31, 2022: Fixed maturities: Bonds: U.S. government obligations $ 1,343 $ - $ - $ (81) $ 1,262 Mortgage-backed securities 316,105 - 469 (22,508) 294,066 Asset-backed securities 34,728 - 17 (3,989) 30,756 Collateralized loan obligations 308,871 - 726 (21,924) 287,673 States and political subdivisions-general obligations 104 - - (3) 101 States and political subdivisions-special revenue 228 - - (23) 205 Corporate 46,700 - 415 (5,515) 41,600 Term loans 561,656 - 1,923 (4,607) 558,972 Total fixed maturities $ 1,269,735 $ - $ 3,550 $ (58,650) $ 1,214,635 Mortgage loans on real estate, held for investment 227,047 - - - 227,047 Derivatives 30,239 - 2,694 (16,999) 15,934 Equity securities 5,592 - - (481) 5,111 Other invested assets 108,979 - 3,667 (215) 112,431 Preferred stock 35,644 - 1,757 (5,986) 31,415 Deposits and notes receivable 8,359 - - - 8,359 Policy loans 25 - - - 25 Total investments $ 1,685,620 $ - $ 11,668 $ (82,331) $ 1,614,957
Schedule of allowance for credit losses on investments	(In Thousands) Balance December 31, 2022 Additional Allowance Recognized Due to Adoption of Accounting Guidance Credit Loss Expense for the Current Period Balance March 31, 2023 Fixed Maturities Bonds: Mortgage-backed securities $ - $ 3,564 $ 28 $ 3,592 Asset-backed securities - 273 (28) 245 Collateralized loan obligations - 588 22 610 Term loans - 8,518 (2,651) 5,867 Mortgage loans on real estate, held for investment - 2,024 685 2,709 Other invested asset - 1,703 (530) 1,173 Total Allowance $ - $ 16,670 $ (2,474) $ 14,196
Schedule of credit ratings of fixed maturity securities	March 31, 2023 December 31, 2022 Carrying Carrying (In thousands) Value Percent Value Percent AAA and U.S. Government $ 153,851 11.5 % $ 124,183 10.2 % AA 15,699 1.2 815 0.1 A 424,789 31.6 371,371 30.6 BBB 667,491 49.7 619,516 51.0 Total investment grade 1,261,830 94.0 1,115,885 91.9 BB and below 81,838 6.0 98,750 8.1 Total $ 1,343,668 100.0 % $ 1,214,635 100.0 %
Schedule of Unrealized Loss of Securities	March 31, 2023 December 31, 2022 Gross Number Gross Number Estimated Unrealized of Estimated Unrealized of (In thousands) Fair Value Loss Securities (1) Fair Value Loss Securities (1) Fixed Maturities: Less than 12 months: U.S. government obligations $ 197 $ (3) 1 $ 1,135 $ (70) 13 Mortgage-backed securities 251,760 (13,127) 100 233,624 (18,464) 89 Asset-backed securities 17,842 (2,014) 11 24,552 (3,278) 23 Collateralized loan obligations 187,146 (10,812) 162 203,549 (16,730) 252 States and political subdivisions-general obligations 127 (2) 2 101 (3) 1 States and political subdivisions-special revenue - - - 47 (2) 3 Corporate 30,511 (1,638) 33 37,286 (5,426) 64 Term loans 588,624 (6,475) - 558,337 (4,607) 36 Greater than 12 months: U.S. government obligations 960 (55) 8 126 (11) 5 Asset-backed securities 15,941 (1,639) 19 5,321 (711) 7 Collateralized loan obligations 95,673 (12,894) 157 37,814 (5,194) 47 States and political subdivisions-special revenue - - - 158 (21) 7 Mortgage-backed securities 67,003 (15,953) 47 17,985 (4,044) 14 Corporate 10,906 (2,882) 33 376 (89) 7 Total fixed maturities $ 1,266,690 $ (67,494) 573 $ 1,120,411 $ (58,650) 568 (1)
Schedule of Fixed Maturities	Amortized Estimated (In thousands) Cost Fair Value Due in one year or less $ 89,688 $ 87,010 Due after one year through five years 728,295 706,224 Due after five years through ten years 513,865 473,994 Due after ten years through twenty years 54,106 51,108 Due after twenty years 31,594 25,332 $ 1,417,548 $ 1,343,668
Schedule of investment in mortgage loans	(In thousands) March 31, 2023 December 31, 2022 Loan-to-Value Ratio: 0%-59.99% $ 202,472 $ 108,281 60%-69.99% 77,868 79,968 70%-79.99% 47,874 33,268 80% or greater 5,252 5,530 Total mortgage loans $ 333,466 $ 227,047
Components of net investment income	Three months ended March 31, (In thousands) 2023 2022 Fixed maturities $ 31,430 $ 12,664 Mortgage loans 7,360 2,420 Other invested assets 2,792 1,395 Other interest income 8,030 5,544 Gross investment income 49,612 22,023 Less: investment expenses (5,896) (2,212) Less: amounts charged to reinsurers (26,997) (13,569) Less: allowance for credit losses 2,474 Investment income, net of expenses $ 19,193 $ 6,242
Mortgage-back securities
Investments
Schedule of Mortgage Loan Activity	(In thousands) March 31, 2023 December 31, 2022 1-4 Family $ 59,767 $ 59,579 Hospitality 22,071 12,902 Land 101,621 62,119 Multifamily (5+) 43,138 34,072 Retail 89,721 22,119 Other 19,857 36,256 Allowance for credit loss (2,709) - Total mortgage loans $ 333,466 $ 227,047

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
Derivative Instruments (Tables)	Mar. 31, 2023
Derivative Instruments
Summary of the derivatives not designated as hedges	The following is a summary of the asset derivatives not designated as hedges embedded derivatives in our FIA product as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (In thousands, except number of contracts) Location in the Derivatives Not Designated Consolidated Notional Number of Estimated Notional Number of Estimated as Hedging Instruments Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 870,515 622 $ 23,814 $ 831,657 595 $ 15,592 Equity-indexed embedded derivatives Deposit-type 811,940 6,444 124,915 782,997 6,131 111,618
Summary of embedded derivatives related to the funds withheld provision	The following table summarizes the impact of those embedded derivatives related to the funds withheld provision where the total return on the asset portfolio is passed through to the third-party reinsurers: March 31, 2023 December 31, 2022 (In thousands) Book Value Market Value Total Return Book Value Market Value Total Return Portfolio Assets Assets Swap Value Assets Assets Swap Value American Republic Insurance Company $ 172,166 $ 164,423 $ 7,743 $ 150,413 $ 143,952 $ 6,461 Crestline Re SP1 404,318 401,030 3,288 354,806 356,374 (1,568) Ironbound 164,951 159,509 5,442 159,644 154,477 5,167 Ascendent Re 56,942 55,243 1,699 56,064 54,790 1,274 SRC4 97,830 98,336 (506) 61,646 62,516 (870) Total $ 896,207 $ 878,541 $ 17,666 $ 782,573 $ 772,109 $ 10,464

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	3 Months Ended
Fair Values of Financial Instruments (Tables)	Mar. 31, 2023
Fair Values of Financial Instruments
Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis	The following table presents the Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022. Significant Quoted Other Significant In Active Observable Unobservable Estimated Markets Inputs Inputs Net Asset Fair (In thousands) (Level 1) (Level 2) (Level 3) Value Value March 31, 2023 Financial assets Fixed maturity securities: Bonds U.S. government obligations $ - $ 1,157 $ - $ - $ 1,157 Mortgage-backed securities - 351,857 - - 351,857 Asset-backed securities - 36,903 - - 36,903 Collateralized loan obligations - 325,633 - - 325,633 States and political subdivisions-general obligations - 127 - - 127 States and political subdivisions-special revenue - - - - - Corporate - 45,187 - - 45,187 Term loans - - 582,804 - 582,804 Total fixed maturity securities - 760,864 582,804 - 1,343,668 Mortgage loans on real estate, held for investment - - 333,466 - 333,466 Derivatives - 23,814 - - 23,814 Equity securities - 5,178 - - 5,178 Other invested assets - - 69,881 13,699 83,580 Preferred stock - 9,376 23,338 - 32,714 Deposits and notes receivable - 7,716 2,731 - 10,447 Policy loans - - 23 - 23 Total investments $ - $ 806,948 $ 1,012,243 $ 13,699 $ 1,832,890 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ — $ 124,915 $ — 124,915 December 31, 2022 Financial assets Fixed maturity securities: Bonds U.S. government obligations $ — $ 1,262 $ — $ — $ 1,262 Mortgage-backed securities — 294,066 — — 294,066 Asset-backed securities — 30,756 — — 30,756 Collateralized loan obligations — 287,673 — — 287,673 States and political subdivisions-general obligations — 101 — — 101 States and political subdivisions-special revenue — 205 — — 205 Corporate — 41,600 — — 41,600 Term loans — — 558,972 — 558,972 Total fixed maturity securities — 655,663 558,972 — 1,214,635 Mortgage loans on real estate, held for investment — — 227,047 — 227,047 Derivatives — 15,934 — — 15,934 Equity securities — 5,111 — — 5,111 Other invested assets — — 99,997 12,434 112,431 Preferred stock — 9,544 21,871 — 31,415 Investment escrow — 784 — — 784 Federal Home Loan Bank stock — — 1,306 — 1,306 Notes receivable — 6,269 — — 6,269 Deposits and notes receivable — 7,053 1,306 — 8,359 Policy loans — — 25 — 25 Total investments $ — $ 693,305 $ 909,218 $ 12,434 $ 1,614,957 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ — $ 111,618 $ — 111,618
Schedule of Financial Assets and Liabilities at Fair Value	The following disclosure contains the carrying values, estimated fair values and their corresponding placement in the fair value hierarchy, for financial assets and financial liabilities as of March 31, 2023 and December 31, 2022, respectively: March 31, 2023 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 23 $ — $ — $ 23 $ 23 Cash equivalents 170,073 — 170,073 — 170,073 Liabilities: Policyholder deposits (deposit-type contracts) 1,963,786 — — 1,963,786 1,963,786 December 31, 2022 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair (In thousands) Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 25 $ — $ — $ 25 $ 25 Cash equivalents 191,414 — 191,414 — 191,414 Liabilities: Policyholder deposits (deposit-type contracts) 1,743,348 — — 1,743,348 1,743,348
Schedule of Recurring Basis Using Level Three Inputs	March 31, 2023 Total realized and unrealized gains (losses) Beginning Balance Included in Income Included in OCI Net Purchases, Issuances, Sales, and Settlements Ending Balance (In thousands) Assets Term loans $ 558,972 $ - $ (4,276) $ 33,975 $ 588,671 Mortgage loans on real estate, held for investment 227,047 - - 109,128 336,175 Deposits and notes receivable 1,306 - - 1,425 2,731 Other invested assets 99,997 - 2,749 (31,692) 71,054 Preferred stock 21,871 - (4,084) 5,551 23,338 Policy loans 25 - - (2) 23 Total level 3 assets $ 909,218 $ - $ (5,611) $ 118,385 $ 1,021,992 Liabilities Embedded derivative for equity-indexed contracts (111,618) 14,704 - (28,001) (124,915) Total level 3 liabilities $ (111,618) $ 14,704 $ - $ (28,001) $ (124,915) December 31, 2022 Total realized and unrealized gains (losses) (In thousands) Beginning Balance Included in Income Included in OCI Net Purchases, Issuances, Sales, and Settlements Ending Balance Assets Term loans $ 267,468 $ - $ (2,683) $ 294,187 558,972 Mortgage loans on real estate, held for investment 183,203 - - 43,844 227,047 Deposits and notes receivable 500 - - 806 1,306 Other invested assets 35,293 - 3,452 61,252 99,997 Preferred stock 18,686 - (4,229) 7,414 21,871 Policy loans 87 - - (62) 25 Total level 3 assets $ 505,237 $ - $ (3,460) $ 407,441 $ 909,218 Liabilities Embedded derivative for equity-indexed contracts (123,692) (10,193) - 22,267 (111,618) Total level 3 liabilities $ (123,692) $ (10,193) $ - $ 22,267 $ (111,618)
Summary of unobservable inputs for AFS and trading securities	March 31, 2023 (In millions, except for percentages and multiples) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average* Impact of an increase in the input on fair value Term loans $582.8 Yield Analysis Discount rates 4.6% 17.3% 12.4% Decrease Mortgage loans on real estate $333.5 Yield Analysis Principal funded NA NA NA Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives $124.9 Option Budget Method Nonperformance risk 0.8% 1.5% 1.1% Decrease Option budget 1.1% 5.9% 2.7% Increase Surrender rate 0.5% 15% (base) 12.0% Decrease Other invested assets $69.9 Market Approach EBITDA Multiples 2.6x 3.1x 2.8x NA Discount rates 8.0% 25.5% 14.5% NA Preferred equity $6.6 Yield Analysis Discount rates 24.0% 28.0% 26.0% Increase Detachable warrants $2.4 Market Approach GPCM EBITDA Multiples 10.0x 11.5x 100.0% Decrease Preferred stock $23.3 Market Approach EBITDA Multiples 2.55x 3.05x 2.8x Decrease * Weighted by account value December 31, 2022 (In millions, except for percentages and multiples) Fair value Valuation technique Unobservable inputs Minimum Maximum Weighted average* Impact of an increase in the input on fair value Term loans $559.0 Yield Analysis Discount rates 4.6% 17.3% 12.4% Decrease Mortgage loans on real estate $227.0 Yield Analysis Principal funded NA NA NA Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives $111.6 Option Budget Method Nonperformance risk 0.6% 1.5% 1.1% Decrease Option budget 1.1% 5.7% 2.7% Increase Surrender rate 0.5% 15% (base) 10.5% Decrease Other invested assets $100.0 Market Approach EBITDA Multiples 2.6x 3.1x 2.8x NA Discount rates 8.0% 25.5% 14.5% NA Preferred equity $6.1 Yield Analysis Discount rates 24.0% 28.0% 26.0% Increase Detachable warrants $2.2 Market Approach GPCM EBITDA Multiples 10.0x 11.5x 100.0% Decrease Preferred stock $31.4 Market Approach EBITDA Multiples 2.55x 3.05x 2.8x Decrease * Weighted by account value

Deposit-Type Contracts (Tables)

Deposit-Type Contracts (Tables)	3 Months Ended
Deposit-Type Contracts (Tables)	Mar. 31, 2023
Deposit-Type Contracts
Schedule of deposit-type contracts	(In thousands) March 31, 2023 December 31, 2022 Beginning balance $ 1,743,348 $ 1,075,439 US Alliance 519 (2,176) Unified Life Insurance Company - (10) Ironbound Reinsurance Company Limited 1,540 5,959 Ascendant Re 649 (3,185) Crestline SP1 5,117 (11,623) American Republic Insurance Company 1,995 (4,080) SRC4 989 613 Deposits received 225,064 745,083 Investment earnings (includes embedded derivative) 14,704 (10,193) Withdrawals (30,139) (51,659) Policy charges - (820) Ending balance $ 1,963,786 $ 1,743,348

Reinsurance (Tables)

Reinsurance (Tables)	3 Months Ended
Reinsurance (Tables)	Mar. 31, 2023
Reinsurance
Summary of significant reinsurance amounts	A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of March 31, 2023 and December 31, 2022 is as follows: (In thousands) March 31, 2023 December 31, 2022 Assets: Reinsurance recoverables $ 55,202 $ 20,190 Liabilities: Deposit-type contracts Direct $ 1,963,786 1,743,348 Reinsurance ceded (1,005,666) (912,982) Retained deposit-type contracts $ 958,120 $ 830,366 Three months ended March 31, 2023 2022 (In thousands) Premiums Direct $ 35 $ 61 Reinsurance ceded (35) (61) Total Premiums $ — $ — Future policy and other policy benefits Direct $ 57 $ 54 Reinsurance ceded (57) (54) Total future policy and other policy benefits $ — $ —
Schedule of significant reinsurance balances	The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third-party reinsurers as of March 31, 2023: Recoverable/ Total Amount Recoverable Recoverable (Payable) on Benefit Ceded Recoverable/ (In thousands) AM Best on Paid on Unpaid Reserves/Deposit- Due (Payable) to/from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ - $ - $ 875 $ - $ 875 Optimum Re Insurance Company A - - 705 - 705 Sagicor Life Insurance Company A- - 188 12,552 (324) 12,416 Ascendant Re NR - - (2,886) - (2,886) Crestline SP1 NR - - (2,534) - (2,534) American Republic Insurance Company A - - 5,112 - 5,112 SRC4 NR - - (19,531) - (19,531) Unified Life Insurance Company NR - 36 1,153 (16) 1,173 US Alliance Life and Security Company NR - - 59,895 (23) 59,872 $ - $ 224 $ 55,341 $ (363) $ 55,202 The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third-party reinsurers as of December 31, 2022: Recoverable on Total Amount Recoverable Recoverable Benefit Ceded Recoverable (In thousands) AM Best on Paid on Unpaid Reserves/Deposit- Due from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ - $ - $ (344) $ - $ (344) Optimum Re Insurance Company A - - 601 - 601 Sagicor Life Insurance Company A- - 154 10,744 (303) 10,595 Ascendant Re NR - - (2,130) - (2,130) Crestline SP1 NR - - (3,357) - (3,357) American Republic Insurance Company A - - 5,879 - 5,879 SRC4 NR - - (44,442) - (44,442) Unified Life Insurance Company NR - 41 986 (17) 1,010 US Alliance Life and Security Company NR - - 52,400 (22) 52,378 $ - $ 195 $ 20,337 $ (342) $ 20,190
Schedule of ceding commissions from the reinsurers	Three months ended March 31, (In thousands) 2023 2022 Reinsurer Gross Ceding Commission Expense Allowance (1) Interest on Ceding Commission Earned Ceding Commission Gross Ceding Commission Expense Allowance Interest on Ceding Commission Earned Ceding Commission Unified Life Insurance Company $ — $ — $ — $ 3 $ — $ — $ — $ 8 Ironbound Reinsurance Company Limited — — 47 134 — — 49 130 Ascendant Re — — 23 89 — — 23 86 US Alliance Life and Security Company — — 13 87 — — 14 87 Crestline SP1 1,039 918 132 866 1,034 1,830 80 506 American Republic Insurance Company 559 705 52 301 801 1,454 23 153 SRC4 1,367 1,214 30 93 — — — — $ 2,965 $ 2,837 $ 297 $ 1,573 $ 1,835 $ 3,284 $ 189 $ 970 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees.
Schedule of ceding commissions deferred on each reinsurance transaction	(In thousands) March 31, 2023 December 31, 2022 Reinsurer Deferred Gain on Reinsurance Transactions Deferred Gain on Reinsurance Transactions US Alliance Life and Security Company (1) $ 150 $ 152 Unified Life Insurance Company (1) 210 217 Ironbound Reinsurance Company Limited (2) 4,876 4,876 Ascendant Re 2,947 2,947 US Alliance Life and Security Company (2) 2,069 2,069 American Republic Insurance Company (2) 7,724 7,502 Crestline SP1 (2) 18,906 18,475 SRC4 (2) 3,070 1,825 $ 39,952 $ 38,063 1) These reinsurance transactions on our legacy life insurance business received gross ceding commissions on the effective dates of the transaction. The difference between the statutory net adjusted reserves and the GAAP adjusted reserves plus the elimination of DAC and value of business acquired related to these businesses reduces the gross ceding commission with the remaining deferred and amortized over the lifetime of the blocks of business. 2) These reinsurance transactions include the ceding commissions and expense allowances which are accounted for as described in (1).
Schedule of retained and reinsurance balance sheets	The tables below shows the retained and reinsurance consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Retained Reinsured Consolidated Retained Reinsured Consolidated Assets Total investments $ 945,074 $ 887,816 $ 1,832,890 $ 812,177 $ 802,780 $ 1,614,957 Cash and cash equivalents 99,438 70,635 170,073 127,291 64,123 191,414 Deferred acquisition costs, net 48,150 - 48,150 43,433 - 43,433 Premiums receivable - 368 368 - - - Accrued investment income 12,545 19,045 31,590 11,307 13,858 25,165 Reinsurance recoverables (36,797) 91,999 55,202 (6,853) 27,405 20,552 Property and equipment, net 1,805 - 1,805 1,897 - 1,897 Receivable for securities sold - - - 2,033 8,485 10,518 Other assets 10,632 (6,235) 4,397 12,259 236 12,495 Total assets $ 1,080,847 $ 1,063,628 $ 2,144,475 $ 1,003,544 $ 916,887 $ 1,920,431 Liabilities and Stockholders’ Equity Liabilities: Benefit reserves $ 1,171 $ 11,568 $ 12,739 $ 1,332 $ 11,613 $ 12,945 Deposit-type contracts 955,775 1,008,011 1,963,786 841,980 901,368 1,743,348 Other policy-holder funds 9,252 15 9,267 4,105 - 4,105 Notes payable 25,000 - 25,000 25,000 - 25,000 Deferred gain on coinsurance transactions 150 39,802 39,952 38,063 - 38,063 Payable for securities sold 22,677 - 22,677 8,872 - 8,872 Operating lease 2,078 - 2,078 2,135 - 2,135 Other liabilities 39,894 4,232 44,126 47,680 3,906 51,586 Total liabilities $ 1,055,997 $ 1,063,628 $ 2,119,625 $ 969,167 $ 916,887 $ 1,886,054 Stockholders’ Equity: Preferred stock $ - $ - $ - $ - $ - $ - Voting common stock 4 - 4 4 - 4 Additional paid-in capital 138,789 - 138,789 138,482 - 138,482 Treasury stock (175) - (175) (175) - (175) Accumulated deficit (63,863) - (63,863) (63,019) - (63,019) Accumulated other comprehensive loss (61,928) - (61,928) (51,386) - (51,386) Total Midwest Holding Inc.'s stockholders' equity $ 12,827 $ - $ 12,827 $ 23,906 $ - $ 23,906 Noncontrolling interest 12,023 - 12,023 10,471 - 10,471 Total stockholders' equity 24,850 - 24,850 34,377 - 34,377 Total liabilities and stockholders' equity $ 1,080,847 $ 1,063,628 $ 2,144,475 $ 1,003,544 $ 916,887 $ 1,920,431

Income Tax Matters (Tables)

Income Tax Matters (Tables)	3 Months Ended
Income Tax Matters (Tables)	Mar. 31, 2023
Income Tax Matters
Schedule of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities as of March 31, 2023 and December 31, 2022 are as follows: (In thousands) March 31, 2023 December 31, 2022 Deferred tax assets: Loss carryforwards $ 3,469 $ 2,672 Capitalized costs 67 79 Stock option granted 1,131 1,066 Policy acquisition costs 7,245 6,489 Charitable contribution carryforward - - General business credits 6 6 Derivative option allowance - - Sec 163(j) limitation 171 171 Benefit reserves 10,004 12,010 Property and equipment - - Impairments 403 403 Unrealized losses on investments 16,462 13,624 Other 1,928 1,928 Total deferred tax assets 40,886 38,448 Less valuation allowance (38,331) (35,305) Total deferred tax assets, net of valuation allowance 2,555 3,143 Deferred tax liabilities: Unrealized losses on investments - - Due premiums - - Intangible assets 147 147 Derivative option allowance 1,084 2,150 Bond Discount 1,424 936 Property and equipment (100) (90) Total deferred tax liabilities 2,555 3,143 Net deferred tax assets $ - $ -
Schedule of effective tax rate reconciliation	There was income tax expense of $2.9 million and $4.7 million for the three months ended March 31, 2023 and 2022. This differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income, as a result of the following: Three months ended March 31, (In thousands) 2023 2022 Computed expected income tax benefit (expense) $ (2,785) $ (1,099) Reduction (increase) in income taxes resulting from: Interest maintenance reserve and reinsurance 69 (79) Nondeductible expenses (3) (2) Change in valuation allowance (188) (3,532) Deferred tax adjustment - (10) Subtotal of increases (122) (3,623) Tax expense $ (2,907) $ (4,722)

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2023
Leases
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information for our leases as of March 31, 2023 and December 31, 2022 is as follows: (In thousands) Classification March 31, 2023 December 31, 2022 Assets Operating Operating lease right-of-use assets $ 2,059 $ 2,119 Liabilities Operating lease Operating lease liabilities $ 2,078 $ 2,135
Schedule of Components of Lease Expenses	Our operating lease expense for the March 31, 2023 and 2022, is as follows: Three months ended March 31, (In thousands) Classification 2023 2022 Operating General and administrative expense $ 3 $ 3
Schedule of Finance and Operating Leases Minimum	Minimum contractual obligations for our leases as of March 31, 2023 are as follows: (In thousands) Operating Leases 2023 $ 257 2024 342 2025 342 2026 345 2027 353 2028 362 2029 and after 1,042 Total remaining lease payments $ 3,043

Equity (Tables)

Equity (Tables)	3 Months Ended
Equity (Tables)	Mar. 31, 2023
Equity
Summary of Balance of and Changes in Each Component of AOCI	(In thousands) Unrealized investment gains (losses) on fixed maturities, net of offsets Balance at December 31, 2021 $ 2,634 Other comprehensive (loss) before reclassifications, net of tax (54,975) Less: Reclassification adjustments for losses realized in net income 955 Balance, December 31, 2022 (51,386) Other comprehensive (loss) before reclassifications, net of tax (10,552) Less: Reclassification adjustments for losses realized in net income, net of tax 10 Balance, March 31, 2023 $ (61,928)

Long-Term Incentive Plans (Tabl

Long-Term Incentive Plans (Tables)	3 Months Ended
Long-Term Incentive Plans (Tables)	Mar. 31, 2023
Long-Term Incentive Plans
Schedule of Changes in outstanding options activities	Weighted Average Exercise Price Per Share Range of Option Exercise Prices per Share Total Outstanding, Vested and December 31, 2022 $ 32.21 $ 11.20 - 55.02 319,121 271,517 47,604 Granted 17.12 17.12 5,000 5,000 - Prior year adjustment 11.20 11.20 750 750 - Vested 38.14 55.02 - (4,550) 4,550 Exercised - - - - - Forfeited 37.51 25.00 - 55.02 (2,400) (2,400) - Expired - - - - - March 31, 2023 $ 31.93 $ 11.20 - 55.02 322,471 270,317 52,154
Schedule of Option information segregated by ranges of exercise prices	March 31, 2023 Total Outstanding Options Vested and Exercisable Range of Option Exercise Prices per Share Options Weighted Average Exercise Price per Share Weighted Average Remaining Term Options Weighted Average Exercise Price per Share Weighted Average Remaining Term > $50.00 46,803 $ 60.37 7.80 4,550 $ 55.02 7.84 $40.00 - $49.99 91,709 57.46 7.94 36,042 41.25 7.79 $30.00 - $39.99 - - - - - - $20.00 - $29.99 21,090 31.18 7.55 7,277 25.00 7.08 $10.00 - $19.99 110,715 13.75 9.25 4,285 16.37 8.73 < $10.00 - $ - - - $ - -
Schedule of outstanding restricted stock and restricted stock units	Total Outstanding Units Vested Units Units Weighted Average Grand Date Fair Value Units Weighted Average Grant Date Fair Value December 31, 2022 17,207 $ 13.84 1,163 $ 50.00 Granted - - - - Vested - - - - Forfeited - - - - Released - - - - March 31, 2023 17,207 $ 13.84 1,163 $ 50.00
Schedule of assumptions used to calculate compensation expense	March 31, December 31, 2023 2022 Volatility 287.29% 4.16% - 4.26% Weighted-average volatility 287.3% 3.7% Expected term (in years) 6.54 2 - 7 Risk-free rate 3.57% 0.02% - 2.15%
Schedule of outstanding remaining non-vested shares	March 31, 2023 Awards Outstanding Weighted Average Grant-Date Fair Value Weighted Average Exercise Price Nonvested stock options and restricted Stock unit awards at December 31, 2022 287,561 $ 16.96 $ 32.29 Options granted 5,000 16.56 17.12 Adjustment for Prior Year Options 750 $16.56 $11.20 Restricted stock units granted - - - Vested (4,550) 34.95 55.02 Forfeited or expired (2,400) 23.02 37.51 Ending Balance at March 31, 2023 286,361 $ 16.93 $ 31.93 December 31, 2022 Stock Options Outstanding Weighted Average Grant-Date Fair Value Weighted Average Exercise Price Nonvested stock options and restricted stock unit awards at December 31, 2021 317,217 $ 25.80 $ 40.13 Options granted 117,367 9.57 14.92 Restricted stock units granted 18,718 — — Vested (56,678) 21.12 36.53 Forfeited (109,063) 23.82 38.87 Ending Balance at December 31, 2022 287,561 $ 16.96 $ 32.29

Statutory Net Income and Surp_2

Statutory Net Income and Surplus (Tables)	3 Months Ended
Statutory Net Income and Surplus (Tables)	Mar. 31, 2023
Statutory Net Income and Surplus
Statutory Accounting Practices Disclosure	The following table represents the net gains or (losses) as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: Three months ended March 31, (In thousands) 2023 2022 American Life $ (16,588) $ 9,593 SRC1 $ 3,214 $ (822) SRC3 $ 288 $ 469 The following table represents the Capital and Surplus as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: (In thousands) March 31, 2023 December 31, 2022 American Life $ 59,971 $ 69,936 SRC1 $ 12,829 $ 9,615 SRC3 $ 6,334 $ 6,023 The following table represents the premiums sales as filed in the statutory-basis annual statement with the Nebraska Department of Insurance for American Life and the Vermont Department of Insurance for SRC1 and SRC3: Three months ended March 31, (In thousands) 2023 2022 American Life $ 92,287 $ 58,118 SRC1 $ - $ - SRC3 $ 175 $ (148)

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
Commitments and Contingencies (Tables)	Mar. 31, 2023
Commitments and Contingencies.
Schedule of other commitments	(In thousands) March 31, 2023 December 31, 2022 Due in one year or less $ 74,790 $ 52,951 Due in two years 31,970 43,604 Due in three years 24,030 7,731 Due in four years 13,409 13,277 Due in five years and after 54,174 61,432 $ 198,373 $ 178,995

Nature of Operations and Basis

Nature of Operations and Basis of Presentation - (Narrative) (Details)										3 Months Ended		12 Months Ended
	Feb. 28, 2023	Jan. 01, 2023 USD ($)	Nov. 22, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 30, 2021	Nov. 10, 2021	Jun. 26, 2021	May 12, 2020 USD ($)	Apr. 24, 2020	Mar. 31, 2023 USD ($) product segment $ / shares	Mar. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($)	Feb. 02, 2022 USD ($)	Nov. 30, 2021
Number of reporting segment \| segment										1
Number of products \| product										6
Number of bonus plans \| product										2
Mortgage backed and asset backed securities at fair value										$ 7,700,000		$ 7,700,000
Mortgage servicing rights MSR impairment recovery										1,400,000	$ 1,400,000	1,400,000
Equity securities, fair value										5,178,000		5,111,000
Investment escrow										1,400,000		784,000
Fund investments											23,768,000
Other investments in fund										19,000,000
Investment income										19,193,000	6,242,000
Other investments in private credit and equipment leases										11,500,000
Pledged assets, market value										145,700,000
Premiums receivable										368,000		362,000
FHLB borrowing capacity										131,100,000		121,100,000
Other invested assets										83,580,000		112,431,000
Impairment allowance on investment										0
Perpetual preferred stock										32,700,000
Notes receivable										6,300,000		6,269,000
Valuation allowance on policy loans										0
Depreciation										300,000	300,000
Accumulated depreciation										1,400,000		1,100,000
Unrealized gains (losses)										(17,700,000)		(10,500,000)
Embedded derivatives gain										$ 7,200,000	$ (2,800,000)
Basic Income (loss) per common share \| $ / shares										$ 1.03	$ 0.05
Outstanding advances under FHLB funding agreements										$ 60,000,000
Accumulated deficit										(63,863,000)		(63,019,000)
Allowance for credit losses on investments										14,196,000
Fixed maturities, Allowance for credit losses										$ 10,314,000
Cumulative effect of change in accounting estimate
Allowance for credit losses on investments												16,670,000
2016-13 \| Cumulative effect of change in accounting estimate
Accumulated deficit		$ (4,700,000)
Allowance for credit losses on investments		(16,500,000)
Reinsurance recoverables		(11,800,000)
Change in allowance for expected credit losses		200,000
Fixed maturities, Allowance for credit losses		$ 4,500,000
BBB+
Interest rate										5%
Ascona Group Holdings Ltd
Market value										$ 11,300,000		10,500,000
Investment income										2,300,000	$ 1,700,000
Investment income, non-controlling interest										600,000	$ 400,000
SRC3
Ownership interest														100%
PF Collinwood Holdings LLC
Other invested assets										13,700,000		13,700,000
SRC1
Sale of non controlling interest												$ 15,000,000
Python Asset Holding LLC
Other investments in fund													$ 7,400,000
Investment income										$ 400,000
Ownership (as a percent)													100%
Furniture and Fixtures \| Minimum
Useful life										3 years
Furniture and Fixtures \| Maximum
Useful life										7 years
Computer Software, Intangible Asset
Useful life										3 years
FHLB advances
Percentage of borrowing equals the purchase of FHLB activity-based common stock												4.50%
Percentage of net aggregate admitted retained assets equals the maximum amount of borrowing												5%
Advances received from FHLB under funding agreements										$ 31,000,000		$ 60,000,000
Repayments on FHLB funding agreements										0
Outstanding advances under FHLB funding agreements										60,000,000		29,000,000
FHLB funding agreements, matured on March 1, 2024 Member
Outstanding advances under FHLB funding agreements										$ 16,000,000
Interest Rate										5.10%
FHLB funding agreements, matured on January 22, 2025
Outstanding advances under FHLB funding agreements										$ 13,000,000
Interest Rate										5.47%
FHLB Second Funding Agreements, Matured On January 22, 2025
Outstanding advances under FHLB funding agreements										$ 2,000,000
Interest Rate										5.17%
FHLB funding agreements, matured on August 16, 2025
Outstanding advances under FHLB funding agreements										$ 8,000,000
Interest Rate										5.48%
FHLB Funding Agreements, Matured On September 1, 2027
Outstanding advances under FHLB funding agreements										$ 4,000,000
Interest Rate										5.40%
FHLB funding agreements, matured on September 15, 2027
Outstanding advances under FHLB funding agreements										$ 8,000,000
Interest Rate										5.20%
FHLB Funding Agreements, Matured On October 1, 2027
Outstanding advances under FHLB funding agreements										$ 9,000,000
Interest Rate										5.41%
Securities Purchase Agreement \| SRC1
Ownership (as a percent)										30%
Seneca Re Agreement
Basic Income (loss) per common share \| $ / shares										$ (1.03)
Seneca Re Agreement \| MYGA
Percentage of indemnity coinsurance									25%
Seneca Re Agreement \| FIA
Percentage of indemnity coinsurance									40%
Seneca Re Agreement \| SRC1 \| MYGA-3
Percentage of multi year guaranteed annuity				10%
SRC1 \| SRC1
Ownership (as a percent)						100%
Credit Agreement \| Revolving Credit Facility
Loan term			3 years
Maximum borrowing capacity			$ 30,000,000
Outstanding balance										$ 25,000,000		25,000,000
Unutilized credit										$ 5,000,000
American Life and Security National Life Insurance
Percentage of quota share of liabilities	0%
American Life and Security National Life Insurance \| US Alliance Agreement \| MYGA
Percentage of multi year guaranteed annuity							20%
American Life and Security National Life Insurance \| US Alliance Agreement \| FIA
Percentage of fixed indexed annuity							20%			20%
SRC4
Net premium income				$ 21,400,000						$ 21,400,000
Net statutory reserves										$ 21,500,000
Amount owed deposit account				$ 21,500,000
SRC4 \| Seneca Re Agreement \| MYGA-5
Percentage of multi year guaranteed annuity				45%
Percentage of indemnity coinsurance										45%
SRC4 \| Seneca Re Agreement \| MYGA-3
Percentage of indemnity coinsurance										10%
Multi Year Guaranteed Annuity
Number of products \| product										2
Multi Year Guaranteed Annuity \| SRC3
Percentage of indemnity coinsurance						45%
Multi Year Guaranteed Annuity \| Crestline Assurance Holdings LLC \| Master Letter Agreement
Percentage of indemnity coinsurance									25%
Fixed Index Annuity
Number of products \| product										2
Fixed Index Annuity \| SRC3
Percentage of indemnity coinsurance						45%
One time reinsurance funding for a quota share of the liabilities												10,000,000
Fixed Index Annuity \| Crestline Assurance Holdings LLC \| Master Letter Agreement
Percentage of indemnity coinsurance									40%
Collateralized loan obligation
Fixed maturities, Allowance for credit losses										$ 610,000
Collateralized loan obligation \| Cumulative effect of change in accounting estimate
Fixed maturities, Allowance for credit losses												588,000
Exchange Traded Funds
Equity securities, fair value										5,200,000		$ 5,100,000
Mortgage loans on real estate one
Mortgage backed and asset backed securities at fair value										7,700,000
Mortgage servicing rights MSR impairment recovery										1,400,000
Mortgage loans on real estate two
Mortgage servicing rights MSR impairment recovery										$ 600,000
ORIX USA \| SRC1
Ownership (as a percent)					30%
Percentage of ownership interest sold					70%
ORIX USA \| Securities Purchase Agreement
Percentage of ownership interest sold										70%
American Life \| PF Collinwood Holdings LLC
Ownership (as a percent)										100%
Investment Manager
Other investments in fund										$ 73,300,000
Other invested assets										$ 83,600,000
American Life \| Ascona Group Holdings Ltd
Ownership interest										74%
Seneca Reinsurance Company, LLC
Contributions made								$ 300,000
Ownership percentage acquired								100%
Crestline Assurance Holdings LLC \| Ascona Group Holdings Ltd
Ownership interest										26%

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation - Deferred acquisition costs (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Deferred Acquisition Costs
Deferred Policy Acquisition Cost, Beginning Balance	$ 43,433	$ 24,530
Additions	7,200	23,857
Amortization	(1,703)	(3,905)
Interest	(374)	(883)
Impact of unrealized investment losses	(406)	(166)
Deferred Policy Acquisition Cost, Ending Balance	$ 48,150	$ 43,433

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation - Earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Nature of Operations and Summary of Significant Accounting Policies
Net income (loss) attributable to Midwest Holding Inc.	$ 3,829	$ 187
Weighted average common shares outstanding	3,728,594	3,737,564
Stock options and deferred compensation agreements	80,000
Denominator for earnings (loss) per common share	3,808,594	3,737,564
Basic Income (loss) per common share	$ 1.03	$ 0.05
Diluted Income (loss) per common share	$ 1.01	$ 0.05
Common stock, shares issued	3,728,601		3,727,976
Common stock, shares outstanding	3,728,601		3,727,976
Non-voting common shares authorized	2,000,000		2,000,000
Common stock, shares authorized	20,000,000		20,000,000
Preferred stock, shares authorized	2,000,000		2,000,000

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Investments) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost	$ 1,417,548	$ 1,269,735
Fixed maturities, Allowance for credit losses	(10,314)
Total fixed maturities	1,343,668	1,214,635
Mortgage loans on real estate, held for investment amortized cost	336,175
Mortgage loans on real estate, held for investment	333,466	227,047
Mortgage loan on real estate, Allowance for credit losses	(2,709)
Derivatives, Cost	31,665	30,239
Derivatives, Gross Unrealized Gains	5,257	2,694
Derivatives, Gross Unrealized Losses	(13,108)	(16,999)
Estimated Fair Value	23,814	15,934
Common Stock		1,306
Equity Securities, Amortized Cost	5,592	5,592
Equity securities, Gross Unrealized Losses	(414)	(481)
Equity securities, fair value	5,178	5,111
Other invested assets, Cost	82,004	108,979
Other invested assets, Allowance for credit losses	(1,173)
Other invested assets, Gross Unrealized Gains	3,026	3,667
Other invested assets, Gross Unrealized Losses	(277)	(215)
Other invested assets (Allowance for credit losses of $1,173 in 2023.)	83,580	112,431
Investment escrow	1,400	784
Preferred stock , Amortized cost	36,798	35,644
Preferred stock, Gross Unrealized Gains	2,070	1,757
Preferred stock, Gross Unrealized Losses	(6,154)	(5,986)
Preferred stock, Fair value	32,714	31,415
Deposits and notes receivable, Amortized Cost	10,447	8,359
Deposits and notes receivable, Estimated Fair Value	10,447	8,359
Notes receivable	6,300	6,269
Policy Loans	23	25
Total investments, Amortized Cost	1,920,252	1,685,620
Allowance for credit losses on investments	(14,196)
Investments, Gross Unrealized Gains	14,281	11,668
Investments, Gross Unrealized Losses	(87,447)	(82,331)
Investments, Fair Value Disclosure	1,832,890	1,614,957
Fixed Maturities
Amortized Cost	1,417,548	1,269,735
Fixed maturities, Allowance for credit losses	(10,314)
Gross Unrealized Gains	3,928	3,550
Gross Unrealized Losses	(67,494)	(58,650)
Total fixed maturities	1,343,668	1,214,635
U.S. government obligations
Amortized Cost	1,215	1,343
Gross Unrealized Losses	(58)	(81)
Total fixed maturities	1,157	1,262
Mortgage-back securities
Amortized Cost	383,960	316,105
Fixed maturities, Allowance for credit losses	(3,592)
Gross Unrealized Gains	569	469
Gross Unrealized Losses	(29,080)	(22,508)
Total fixed maturities	351,857	294,066
Asset-backed securities
Amortized Cost	40,743	34,728
Fixed maturities, Allowance for credit losses	(245)
Gross Unrealized Gains	58	17
Gross Unrealized Losses	(3,653)	(3,989)
Total fixed maturities	36,903	30,756
Collateralized loan obligation
Amortized Cost	349,151	308,871
Fixed maturities, Allowance for credit losses	(610)
Gross Unrealized Gains	798	726
Gross Unrealized Losses	(23,706)	(21,924)
Total fixed maturities	325,633	287,673
States and Political Subdivisions - general obligations
Amortized Cost	129	104
Gross Unrealized Losses	(2)	(3)
Total fixed maturities	127	101
States and Political Subdivisions - special revenue
Amortized Cost		228
Gross Unrealized Losses		(23)
Total fixed maturities		205
Corporate
Amortized Cost	49,403	46,700
Gross Unrealized Gains	304	415
Gross Unrealized Losses	(4,520)	(5,515)
Total fixed maturities	45,187	41,600
Term loans
Amortized Cost	592,947	561,656
Fixed maturities, Allowance for credit losses	(5,867)
Gross Unrealized Gains	2,199	1,923
Gross Unrealized Losses	(6,475)	(4,607)
Total fixed maturities	$ 582,804	$ 558,972

Investments (Schedule of Inform

Investments (Schedule of Information Related to Allowance for Credit Losses) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fixed Maturities
Ending balance	$ 10,314
Mortgage loans on real estate, held for investment
Credit Loss Expense for the Current Period	685
Ending balance	2,709
Other invested asset
Credit Loss Expense for the Current Period	(530)
Ending balance	1,173
Total allowance
Credit Loss Expense for the Current Period	(2,474)
Ending balance	14,196
Cumulative effect of change in accounting estimate
Mortgage loans on real estate, held for investment
Beginning balance	2,024
Other invested asset
Beginning balance	1,703
Total allowance
Beginning balance	16,670
Fixed Maturities
Fixed Maturities
Ending balance	10,314
Mortgage-back securities
Fixed Maturities
Credit Loss Expense for the Current Period	28
Ending balance	3,592
Mortgage-back securities \| Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance	3,564
Asset-backed securities
Fixed Maturities
Credit Loss Expense for the Current Period	(28)
Ending balance	245
Asset-backed securities \| Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance	273
Collateralized loan obligation
Fixed Maturities
Credit Loss Expense for the Current Period	22
Ending balance	610
Collateralized loan obligation \| Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance	588
Term loans
Fixed Maturities
Credit Loss Expense for the Current Period	(2,651)
Ending balance	5,867
Term loans \| Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance	$ 8,518

Investments (Schedule of Credit

Investments (Schedule of Credit Ratings of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Total fixed maturities	$ 1,343,668	$ 1,214,635
Fixed Maturities
Marketable Securities [Line Items]
Total fixed maturities	$ 1,343,668	$ 1,214,635
Percent	100%	100%
Fixed Maturities \| Investment grade
Marketable Securities [Line Items]
Total fixed maturities	$ 1,261,830	$ 1,115,885
Percent	94%	91.90%
Fixed Maturities \| Investment grade \| AAA and U.S. Government
Marketable Securities [Line Items]
Total fixed maturities	$ 153,851	$ 124,183
Percent	11.50%	10.20%
Fixed Maturities \| Investment grade \| AA
Marketable Securities [Line Items]
Total fixed maturities	$ 15,699	$ 815
Percent	1.20%	0.10%
Fixed Maturities \| Investment grade \| A
Marketable Securities [Line Items]
Total fixed maturities	$ 424,789	$ 371,371
Percent	31.60%	30.60%
Fixed Maturities \| Investment grade \| BBB
Marketable Securities [Line Items]
Total fixed maturities	$ 667,491	$ 619,516
Percent	49.70%	51%
Fixed Maturities \| Non investment grade \| BB and other
Marketable Securities [Line Items]
Total fixed maturities	$ 81,838	$ 98,750
Percent	6%	8.10%

Investments (Schedule of Unreal

Investments (Schedule of Unrealized Loss of Securities) (Details) $ in Thousands	Mar. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Fixed Maturities
Estimated Fair Value, Total	$ 1,266,690	$ 1,120,411
Gross Unrealized Loss, Total	$ (67,494)	$ (58,650)
Number of Securities, Total \| security	573	568
U.S. government obligations
Estimated Fair Value, Less than 12 months	$ 197	$ 1,135
Gross Unrealized Loss, Less than 12 months	$ (3)	$ (70)
Number of Securities, Less than 12 months \| security	1	13
Estimated Fair value, Greater than 12 months	$ 960	$ 126
Gross Unrealized Loss, Greater than 12 months	$ (55)	$ (11)
Number of Securities, Greater than 12 months \| security	8	5
Mortgage-back securities
Estimated Fair Value, Less than 12 months	$ 251,760	$ 233,624
Gross Unrealized Loss, Less than 12 months	$ (13,127)	$ (18,464)
Number of Securities, Less than 12 months \| security	100	89
Estimated Fair value, Greater than 12 months	$ 67,003	$ 17,985
Gross Unrealized Loss, Greater than 12 months	$ (15,953)	$ (4,044)
Number of Securities, Greater than 12 months \| security	47	14
Asset-backed securities
Estimated Fair Value, Less than 12 months	$ 17,842	$ 24,552
Gross Unrealized Loss, Less than 12 months	$ (2,014)	$ (3,278)
Number of Securities, Less than 12 months \| security	11	23
Estimated Fair value, Greater than 12 months	$ 15,941	$ 5,321
Gross Unrealized Loss, Greater than 12 months	$ (1,639)	$ (711)
Number of Securities, Greater than 12 months \| security	19	7
Collateralized loan obligation
Estimated Fair Value, Less than 12 months	$ 187,146	$ 203,549
Gross Unrealized Loss, Less than 12 months	$ (10,812)	$ (16,730)
Number of Securities, Less than 12 months \| security	162	252
Estimated Fair value, Greater than 12 months	$ 95,673	$ 37,814
Gross Unrealized Loss, Greater than 12 months	$ (12,894)	$ (5,194)
Number of Securities, Greater than 12 months \| security	157	47
States and Political Subdivisions - general obligations
Estimated Fair Value, Less than 12 months	$ 127	$ 101
Gross Unrealized Loss, Less than 12 months	$ (2)	$ (3)
Number of Securities, Less than 12 months \| security	2	1
States and Political Subdivisions - special revenue
Estimated Fair Value, Less than 12 months		$ 47
Gross Unrealized Loss, Less than 12 months		$ (2)
Number of Securities, Less than 12 months \| security		3
Estimated Fair value, Greater than 12 months		$ 158
Gross Unrealized Loss, Greater than 12 months		$ (21)
Number of Securities, Greater than 12 months \| security		7
Corporate
Estimated Fair Value, Less than 12 months	$ 30,511	$ 37,286
Gross Unrealized Loss, Less than 12 months	$ (1,638)	$ (5,426)
Number of Securities, Less than 12 months \| security	33	64
Estimated Fair value, Greater than 12 months	$ 10,906	$ 376
Gross Unrealized Loss, Greater than 12 months	$ (2,882)	$ (89)
Number of Securities, Greater than 12 months \| security	33	7
Term loans
Estimated Fair Value, Less than 12 months	$ 588,624	$ 558,337
Gross Unrealized Loss, Less than 12 months	$ (6,475)	$ (4,607)
Number of Securities, Less than 12 months \| security		36

Investments (Schedule of Fixed

Investments (Schedule of Fixed Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments.
Amortized Cost, Due in one year or less	$ 89,688
Amortized Cost, Due after one year through five years	728,295
Amortized Cost, Due after five years through ten years	513,865
Amortized Cost, Due after ten years through twenty years	54,106
Amortized Cost, Due after twenty years	31,594
Amortized Cost	1,417,548	$ 1,269,735
Estimated Fair Value, Due in one year or less	87,010
Estimated Fair Value, Due after one year through five years	706,224
Estimated Fair Value, Due after five years through ten years	473,994
Estimated Fair Value, Due after ten years through twenty years	51,108
Estimated Fair Value, Due after twenty years	25,332
Estimated Fair Value	$ 1,343,668	$ 1,214,635

Investments (Schedule of Invest

Investments (Schedule of Investments Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loan on real estate, Allowance for credit losses	$ (2,709)
Mortgage loans on real estate, held for investment	333,466	$ 227,047
1-4 Family
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	59,767	59,579
Hospitality
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	22,071	12,902
Land
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	101,621	62,119
Multifamily(5+)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	43,138	34,072
Retail Mortgage Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	89,721	22,119
Other.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans on real estate, before allowance for credit losses	$ 19,857	$ 36,256

Investments (Schedule of Mortga

Investments (Schedule of Mortgage Loan Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	$ 333,466	$ 227,047
0%-59.99%
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	202,472	108,281
60%-69.99%
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	77,868	79,968
70%-79.99%
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	47,874	33,268
80% or greater
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	$ 5,252	$ 5,530

Investments (Components of Net

Investments (Components of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Gross investment income	$ 49,612	$ 22,023
Less: investment expenses	(5,896)	(2,212)
Less: amounts charged to reinsurers	(26,997)	(13,569)
Less: allowance for credit losses	2,474
Investment income, net of expenses	19,193	6,242
Fixed Maturities
Gross investment income	31,430	12,664
Mortgage loans
Gross investment income	7,360	2,420
Other invested assets
Gross investment income	2,792	1,395
Other interest income
Gross investment income	$ 8,030	$ 5,544

Investments (Narrative) (Detail

Investments (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
Investments (Narrative) (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Impairment on fixed maturities	$ 0
Amortized cost	1,500,000		$ 1,200,000
Fair value	1,300,000		1,000,000
Mortgage backed and asset backed securities at fair value	7,700,000		7,700,000
Mortgage servicing rights MSR impairment recovery	1,400,000	$ 1,400,000	$ 1,400,000
Proceeds from sales of available-for-sale investments	2,200,000	93,500,000
Gross realized losses	1,500,000	500,000
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life	19,200,000	6,200,000
Mortgage loans on real estate one
Mortgage backed and asset backed securities at fair value	7,700,000
Mortgage servicing rights MSR impairment recovery	1,400,000
Mortgage loans on real estate two
Mortgage servicing rights MSR impairment recovery	600,000
Maximum
Gross realized gain	$ 100,000	$ 100,000
Mortgage Loans Secured by Property \| Delaware \| Geographic Concentration Risk
Concentration risk percentage	8%		10%
Mortgage Loans Secured by Property \| New York \| Geographic Concentration Risk
Concentration risk percentage	20%		24%
Mortgage Loans Secured by Property \| New Jersey \| Geographic Concentration Risk
Concentration risk percentage	17%
Mortgage Loans Secured by Property \| New Zealand \| Geographic Concentration Risk
Concentration risk percentage	9%
Mortgage Loans Secured by Property \| Arizona \| Geographic Concentration Risk
Concentration risk percentage			5%
Mortgage Loans Secured by Property \| California \| Geographic Concentration Risk
Concentration risk percentage			6%
Mortgage Loans Secured by Property \| Florida \| Geographic Concentration Risk
Concentration risk percentage	10%		15%

Derivative Instruments (Details

Derivative Instruments (Details) $ in Thousands	Mar. 31, 2023 USD ($) contract	Dec. 31, 2022 USD ($) contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Estimated Fair Value	$ 23,814	$ 15,934
Derivatives not designated as hedge \| Equity-indexed options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 870,515	$ 831,657
Number of Contracts \| contract	622	595
Estimated Fair Value	$ 23,814	$ 15,592
Derivatives not designated as hedge \| Equity-indexed embedded derivative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 811,940	$ 782,997
Number of Contracts \| contract	6,444	6,131
Estimated Fair Value	$ 124,915	$ 111,618

Derivative Instruments - Funds

Derivative Instruments - Funds Withheld Provision (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total return swap value	$ 7,200	$ (2,800)
Unrealized losses	17,700		$ 10,500
Unrealized gains (losses)	10,542	$ 10,215
Reinsurance recoverables (See Note 7)	55,202		20,190
American Republic Insurance Company
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reinsurance recoverables (See Note 7)	5,112		5,879
US Alliance Life and Security Company
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reinsurance recoverables (See Note 7)	59,872		52,378
Funds With held Provision Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	896,207		782,573
Market value of assets	878,541		772,109
Total return swap value	17,666		10,464
Unrealized loss on embedded derivatives	17,700		10,500
Funds With held Provision Agreement \| American Republic Insurance Company
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	172,166		150,413
Market value of assets	164,423		143,952
Total return swap value	7,743		6,461
Funds With held Provision Agreement \| Crestline SP 1
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	404,318		354,806
Market value of assets	401,030		356,374
Total return swap value	3,288		(1,568)
Funds With held Provision Agreement \| Ironbound Reinsurance Company Limited
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	164,951		159,644
Market value of assets	159,509		154,477
Total return swap value	5,442		5,167
Funds With held Provision Agreement \| Ascendent Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	56,942		56,064
Market value of assets	55,243		54,790
Total return swap value	1,699		1,274
Funds With held Provision Agreement \| SRC1
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	97,830		61,646
Market value of assets	98,336		62,516
Total return swap value	$ (506)		$ (870)

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 1,343,668	$ 1,214,635
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	333,466	227,047
Derivative instruments (See Note 3)	23,814	15,934
Equity securities, fair value	5,178	5,111
Other Invested assets	83,580	112,431
Investment escrow	1,400	784
Federal Home Loan Bank stock		1,306
Preferred stock	32,714	31,415
Deposits and notes receivable	10,447	8,359
Notes receivable	6,300	6,269
Policy Loans	23	25
Total Investments	1,832,890	1,614,957
Embedded derivative for equity-indexed contracts	124,915	111,618
Transfers between levels	0	0
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Invested assets	13,699	12,434
Total Investments	13,699	12,434
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments (See Note 3)	23,814	15,934
Equity securities, fair value	5,178	5,111
Investment escrow		784
Preferred stock	9,376	9,544
Deposits and notes receivable	7,716	7,053
Notes receivable		6,269
Total Investments	806,948	693,305
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	333,466	227,047
Other Invested assets	69,881	99,997
Federal Home Loan Bank stock		1,306
Preferred stock	23,338	21,871
Deposits and notes receivable	2,731	1,306
Policy Loans	23	25
Total Investments	1,012,243	909,218
Embedded derivative for equity-indexed contracts	124,915	111,618
Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,343,668	1,214,635
Fixed Maturities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	760,864	655,663
Fixed Maturities \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	582,804	558,972
U.S. government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,157	1,262
U.S. government obligations \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,157	1,262
Mortgage-back securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	351,857	294,066
Mortgage-back securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	351,857	294,066
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	36,903	30,756
Asset-backed securities \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	36,903	30,756
Collateralized loan obligation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	325,633	287,673
Collateralized loan obligation \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	325,633	287,673
States and Political Subdivisions - general obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	127	101
States and Political Subdivisions - general obligations \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	127	101
States and Political Subdivisions - special revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities		205
States and Political Subdivisions - special revenue \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities		205
Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	45,187	41,600
Corporate \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	45,187	41,600
Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	582,804	558,972
Term loans \| Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 582,804	$ 558,972

Fair Values of Financial Inst_4

Fair Values of Financial Instruments (Schedule of Financial Assets and Liabilities at Fair Value) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash	$ 170,073	$ 191,414
Liabilities:
Notes payable	25,000	25,000
Fair Value, Inputs, Level 2
Assets
Cash	170,073	191,414
Fair Value, Inputs, Level 3
Assets
Policy loans	23	25
Liabilities:
Policyholder deposits (Deposit-type contracts)	1,963,786	1,743,348
Carrying Amount
Assets
Policy loans	23	25
Cash	170,073	191,414
Liabilities:
Policyholder deposits (Deposit-type contracts)	1,963,786	1,743,348
Fair Value
Assets
Policy loans	23	25
Cash	170,073	191,414
Liabilities:
Policyholder deposits (Deposit-type contracts)	$ 1,963,786	$ 1,743,348

Fair Values of Financial Inst_5

Fair Values of Financial Instruments (Recurring Basis Level 3) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Assets
Beginning Balance	$ 909,218	$ 505,237
Total realized and unrealized gains (losses) Included In AOCI	$ (5,611)	$ (3,460)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]	Other comprehensive (loss) before reclassifications, net of tax	Other comprehensive (loss) before reclassifications, net of tax
Net Purchases, Issuances, Sales, and Settlements	$ 118,385	$ 407,441
Ending Balance	1,021,992	909,218
Liabilities
Beginning Balance	(111,618)	(123,692)
Total realized and unrealized gains (losses) Included In Income	$ 14,704	$ (10,193)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net realized gains (losses) on investments	Net realized gains (losses) on investments
Net Purchases, Issuances, Sales, and Settlements	$ (28,001)	$ 22,267
Ending Balance	(124,915)	(111,618)
Equity-indexed embedded derivative
Liabilities
Beginning Balance	(111,618)	(123,692)
Total realized and unrealized gains (losses) Included In Income	14,704	(10,193)
Net Purchases, Issuances, Sales, and Settlements	(28,001)	22,267
Ending Balance	(124,915)	(111,618)
Term loans
Assets
Beginning Balance	558,972	267,468
Total realized and unrealized gains (losses) Included In AOCI	(4,276)	(2,683)
Net Purchases, Issuances, Sales, and Settlements	33,975	294,187
Ending Balance	588,671	558,972
Policy loans
Assets
Beginning Balance	25	87
Net Purchases, Issuances, Sales, and Settlements	(2)	(62)
Ending Balance	23	25
Mortgage loans on real estate, held for investment
Assets
Beginning Balance	227,047	183,203
Net Purchases, Issuances, Sales, and Settlements	109,128	43,844
Ending Balance	336,175	227,047
Deposits and notes receivable
Assets
Beginning Balance	1,306	500
Net Purchases, Issuances, Sales, and Settlements	1,425	806
Ending Balance	2,731	1,306
Other invested assets
Assets
Beginning Balance	99,997	35,293
Total realized and unrealized gains (losses) Included In AOCI	2,749	3,452
Net Purchases, Issuances, Sales, and Settlements	(31,692)	61,252
Ending Balance	71,054	99,997
Preferred Stock
Assets
Beginning Balance	21,871	18,686
Total realized and unrealized gains (losses) Included In AOCI	(4,084)	(4,229)
Net Purchases, Issuances, Sales, and Settlements	5,551	7,414
Ending Balance	$ 23,338	$ 21,871

Fair Values of Financial Inst_6

Fair Values of Financial Instruments (Summary of unobservable inputs) (Details)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 1,343,668,000	$ 1,214,635,000
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	333,466,000	227,047,000
Other Invested assets	83,580,000	112,431,000
Preferred stock	32,714,000	31,415,000
Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	582,804,000	558,972,000
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	333,466,000	227,047,000
Other Invested assets	69,881,000	99,997,000
Preferred stock	$ 23,338,000	$ 21,871,000
Preferred Stock, Valuation Technique [Extensible Enumeration]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Preferred Stock, Measurement Input [Extensible Enumeration]	EBITDA Multiple	EBITDA Multiple
Fair Value, Inputs, Level 3 \| Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 582,804,000	$ 558,972,000
Fair Value, Inputs, Level 3 \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)		0.080
Fair Value, Inputs, Level 3 \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)		0.255
Fair Value, Inputs, Level 3 \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)		0.145
Fair Value, Inputs, Level 3 \| Non performance risk \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 124,900,000	$ 111,600,000
Embedded Derivative Liability, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueOptionPricingModelMember	us-gaap:ValuationTechniqueOptionPricingModelMember
Fair Value, Inputs, Level 3 \| Non performance risk \| Minimum \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.008	0.006
Fair Value, Inputs, Level 3 \| Non performance risk \| Maximum \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.015	0.015
Fair Value, Inputs, Level 3 \| Non performance risk \| Weighted average \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.011	0.011
Fair Value, Inputs, Level 3 \| Option budget \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.011	0.011
Fair Value, Inputs, Level 3 \| Option budget \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.059	0.057
Fair Value, Inputs, Level 3 \| Option budget \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.027	0.027
Fair Value, Inputs, Level 3 \| Discount rates \| Preferred equity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 6,600,000	$ 6,100,000
Embedded Derivative Liability, Valuation Technique [Extensible List]	mdwt:ValuationTechniqueYieldAnalysisMember	mdwt:ValuationTechniqueYieldAnalysisMember
Embedded Derivative Liability, Measurement Input [Extensible Enumeration]	Discount rates	Discount rates
Fair Value, Inputs, Level 3 \| Discount rates \| Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 582,800,000	$ 559,000,000
Debt Securities, Available-for-sale, Valuation Technique [Extensible List]	mdwt:ValuationTechniqueYieldAnalysisMember	mdwt:ValuationTechniqueYieldAnalysisMember
Debt Securities, Available-for-Sale, Measurement Input [Extensible Enumeration]	Discount rates	Discount rates
Fair Value, Inputs, Level 3 \| Discount rates \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	0.080
Fair Value, Inputs, Level 3 \| Discount rates \| Minimum \| Preferred equity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.240	0.240
Fair Value, Inputs, Level 3 \| Discount rates \| Minimum \| Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, term loans (as a percent)	0.046	0.046
Fair Value, Inputs, Level 3 \| Discount rates \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	0.255
Fair Value, Inputs, Level 3 \| Discount rates \| Maximum \| Preferred equity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.280	0.280
Fair Value, Inputs, Level 3 \| Discount rates \| Maximum \| Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, term loans (as a percent)	0.173	0.173
Fair Value, Inputs, Level 3 \| Discount rates \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	0.145
Fair Value, Inputs, Level 3 \| Discount rates \| Weighted average \| Preferred equity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.260	0.260
Fair Value, Inputs, Level 3 \| Discount rates \| Weighted average \| Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, term loans (as a percent)	0.124	0.124
Fair Value, Inputs, Level 3 \| EBITDA Multiple
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Invested assets	$ 69,900,000	$ 100,000,000
Alternative Investment, Valuation Technique [Extensible Enumeration]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Preferred stock	$ 23,300,000	$ 31,400,000
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Detachable warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 2,400,000	$ 2,200,000
Embedded Derivative Liability, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Embedded Derivative Liability, Measurement Input [Extensible Enumeration]	EBITDA Multiple	EBITDA Multiple
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	2.6	2.6
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Minimum \| Detachable warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.100	10
Interest sensitive contract liabilities, preferred stock (as a percent)	2.55	2.55
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	3.1	3.1
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Maximum \| Detachable warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.115	11.5
Interest sensitive contract liabilities, preferred stock (as a percent)	3.05	3.05
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, other invested assets (as a percent)	2.8	2.8
Fair Value, Inputs, Level 3 \| EBITDA Multiple \| Weighted average \| Detachable warrants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	1	1
Interest sensitive contract liabilities, preferred stock (as a percent)	2.8	2.8
Fair Value, Inputs, Level 3 \| Surrender rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.005	0.005
Fair Value, Inputs, Level 3 \| Surrender rate \| Maximum \| Base \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.15	0.15
Fair Value, Inputs, Level 3 \| Surrender rate \| Maximum \| Additional Shock \| Interest sensitive contract liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.30	0.30
Fair Value, Inputs, Level 3 \| Surrender rate \| Weighted average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest sensitive contract liabilities, embedded derivative (as a percent)	0.120	0.105
Fair Value, Inputs, Level 3 \| Principal funded
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans on real estate, held for investment (Allowance for credit losses of $2,709 in 2023.)	$ 333,500,000	$ 227,000,000
Mortgage Loans on Real Estate, Valuation Technique [Extensible Enumeration]	mdwt:ValuationTechniqueYieldAnalysisMember	mdwt:ValuationTechniqueYieldAnalysisMember
Mortgage Loans on Real Estate, Measurement Input [Extensible Enumeration]	Principal funded	Principal funded

Fair Values of Financial Inst_7

Fair Values of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Investment escrow	$ 1,400		$ 784
Equity securities, fair value	5,178		5,111
Notes receivable	6,300		6,269
Mortgage backed and asset backed securities at fair value	7,700		7,700
Mortgage servicing rights MSR impairment recovery	1,400	$ 1,400	1,400
Perpetual preferred stock	32,700
Preferred stock	32,714		31,415
Other Invested assets	83,580		112,431
Transfers between levels	$ 0		0
BBB+
Interest rate	5%
Exchange Traded Funds
Equity securities, fair value	$ 5,200		$ 5,100
Mortgage loans on real estate one
Mortgage backed and asset backed securities at fair value	7,700
Mortgage servicing rights MSR impairment recovery	1,400
Mortgage loans on real estate two
Mortgage servicing rights MSR impairment recovery	$ 600

Deposit-Type Contracts (Details

Deposit-Type Contracts (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Deposit-Type Contracts (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Beginning balance	$ 1,743,348	$ 1,075,439
US Alliance	519	(2,176)
Unified Life Insurance Company		(10)
Deposits received	225,064	745,083
Investment earnings (includes embedded derivative)	14,704	(10,193)
Withdrawals	(30,139)	(51,659)
Policy charges		(820)
Ending balance	1,963,786	1,743,348
FHLB borrowings outstanding	60,000	29,000
Outstanding advances under FHLB funding agreements	60,000
FHLB advances
Outstanding advances under FHLB funding agreements	60,000	29,000
Ironbound Reinsurance Company Limited
Ironbound Reinsurance Company Limited	1,540	5,959
Ascendant Re
Deposit contract	649	(3,185)
Crestline SP 1
Deposit contract	5,117	(11,623)
American Republic Insurance Company
Deposit contract	1,995	(4,080)
SRC4
Deposit contract	$ 989	$ 613

Debt (Details)

Debt (Details) - USD ($) $ in Millions		3 Months Ended
Debt (Details) - USD ($) $ in Millions	Nov. 22, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Minimum
Line of Credit Facility [Line Items]
Percentage of risk based capital percent		300%
Minimum consolidated liquidity requirement		$ 3
Maximum
Line of Credit Facility [Line Items]
Percentage of consolidated debt to capitalization		35%
Credit Agreement
Line of Credit Facility [Line Items]
Interest paid		$ 0.6	$ 0
Revolving Credit Facility \| Credit Agreement
Line of Credit Facility [Line Items]
Loan term	3 years
Maximum borrowing capacity	$ 30
Outstanding balance		25		$ 25
Unutilized credit		$ 5
Revolving Credit Facility \| Credit Agreement \| Minimum \| Base rate
Line of Credit Facility [Line Items]
Applicable margin	2.50%
Revolving Credit Facility \| Credit Agreement \| Minimum \| SOFR
Line of Credit Facility [Line Items]
Applicable margin	3.50%
Revolving Credit Facility \| Credit Agreement \| Maximum \| Base rate
Line of Credit Facility [Line Items]
Applicable margin	3.25%
Revolving Credit Facility \| Credit Agreement \| Maximum \| SOFR
Line of Credit Facility [Line Items]
Applicable margin	4.25%

Reinsurance (Summary of Signifi

Reinsurance (Summary of Significant Reinsurance Amounts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Reinsurance
Reinsurance recoverables	$ 55,202		$ 20,190
Deposit-type contracts	1,963,786		1,743,348	$ 1,075,439
Deposit-type contracts Reinsurance ceded	(1,005,666)		(912,982)
Retained deposit-type contracts	958,120		$ 830,366
Premiums
Direct	35	$ 61
Reinsurance ceded	(35)	(61)
Future policy and other policy benefits
Direct	57	54
Reinsurance ceded	$ (57)	$ (54)

Reinsurance (Schedule of Signif

Reinsurance (Schedule of Significant Reinsurance Balances) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Recoverable on Unpaid Losses	$ 224	$ 195
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	55,341	20,337
Ceded Due Premiums	(363)	(342)
Reinsurance recoverables	$ 55,202	$ 20,190
Ironbound Reinsurance Company Limited [Member]
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 875	$ (344)
Reinsurance payable		$ (344)
Reinsurance recoverables	$ 875
Optimum Reinsurance Company [Member]
AM Best Rating	A	A
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 705	$ 601
Reinsurance recoverables	$ 705	$ 601
Sagicor Life Insurance Company [Member]
AM Best Rating	A-	A-
Recoverable on Unpaid Losses	$ 188	$ 154
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	12,552	10,744
Ceded Due Premiums	(324)	(303)
Reinsurance recoverables	$ 12,416	$ 10,595
Ascendant Re
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (2,886)	$ (2,130)
Reinsurance payable	$ (2,886)	$ (2,130)
Crestline SP 1
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (2,534)	$ (3,357)
Reinsurance payable	$ (2,534)	$ (3,357)
American Republic Insurance Company
AM Best Rating	A	A
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 5,112	$ 5,879
Reinsurance recoverables	$ 5,112	$ 5,879
SRC4
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (19,531)	$ (44,442)
Reinsurance payable	$ (19,531)	$ (44,442)
Unified Life Insurance Company
AM Best Rating	NR	NR
Recoverable on Unpaid Losses	$ 36	$ 41
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	1,153	986
Ceded Due Premiums	(16)	(17)
Reinsurance recoverables	$ 1,173	$ 1,010
US Alliance Life and Security Company
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 59,895	$ 52,400
Ceded Due Premiums	(23)	(22)
Reinsurance recoverables	$ 59,872	$ 52,378

Reinsurance (Ceding commissions

Reinsurance (Ceding commissions deferred) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Gross Ceding Commission	$ 2,965	$ 1,835
Expense Allowances	2,837	3,284
Interest On Ceding Commissions	297	189
Earned Ceding Commission	1,573	970
Deferred gain on coinsurance transactions	39,952		$ 38,063
Unified Life Insurance Company
Earned Ceding Commission	3	8
Deferred gain on coinsurance transactions	210		217
Ironbound Reinsurance Company Limited [Member]
Interest On Ceding Commissions	47	49
Earned Ceding Commission	134	130
Deferred gain on coinsurance transactions	4,876		4,876
Ascendant Re
Interest On Ceding Commissions	23	23
Earned Ceding Commission	89	86
Deferred gain on coinsurance transactions	2,947		2,947
US Alliance Life and Security Company
Interest On Ceding Commissions	13	14
Earned Ceding Commission	87	87
Deferred gain on coinsurance transactions	150		152
Crestline SP 1
Gross Ceding Commission	1,039	1,034
Expense Allowances	918	1,830
Interest On Ceding Commissions	132	80
Earned Ceding Commission	866	506
Deferred gain on coinsurance transactions	18,906		18,475
American Republic Insurance Company
Gross Ceding Commission	559	801
Expense Allowances	705	1,454
Interest On Ceding Commissions	52	23
Earned Ceding Commission	301	$ 153
Deferred gain on coinsurance transactions	7,724		7,502
US Alliance Life and Security Company(3)
Deferred gain on coinsurance transactions	2,069		2,069
SRC4
Gross Ceding Commission	1,367
Expense Allowances	1,214
Interest On Ceding Commissions	30
Earned Ceding Commission	93
Deferred gain on coinsurance transactions	$ 3,070		$ 1,825

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($) $ in Thousands						3 Months Ended
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Sep. 30, 2022	Nov. 10, 2021	Jun. 26, 2021	Apr. 24, 2020	Mar. 31, 2023	Dec. 31, 2022
Contingency reserves						$ 0	$ 0
Seneca Re Agreement \| MYGA
Percentage of indemnity coinsurance					25%
Seneca Re Agreement \| FIA
Percentage of indemnity coinsurance					40%
SRC3 \| Multi Year Guaranteed Annuity
Percentage of indemnity coinsurance			45%
SRC3 \| Fixed Index Annuity
Percentage of indemnity coinsurance			45%
One time reinsurance funding							$ 10,000
US Alliance Life and Security Company
Value of assets transferred to the reinsurer						$ 37,900
US Alliance Life and Security Company \| US Alliance Agreement \| MYGA
Percentage of multi year guaranteed annuity						20%
American Life \| FW, Modco Agreement \| MYGA
Percentage of multi year guaranteed annuity						45%
American Life \| FW, Modco Agreement \| FIA
Percentage of fixed indexed annuity						45%
American Life and Security National Life Insurance [Member]
Percentage of quota share of liabilities	0%
American Life and Security National Life Insurance [Member] \| US Alliance Agreement \| MYGA
Percentage of multi year guaranteed annuity				20%
American Life and Security National Life Insurance [Member] \| US Alliance Agreement \| FIA
Percentage of fixed indexed annuity				20%		20%
SRC4
Net premium income		$ 21,400				$ 21,400
Net statutory reserves						$ 21,500
Amount owed deposit account		$ 21,500
SRC4 \| Seneca Re Agreement \| MYGA-5
Percentage of indemnity coinsurance						45%
Percentage of multi year guaranteed annuity		45%
SRC4 \| Seneca Re Agreement \| MYGA-3
Percentage of indemnity coinsurance						10%

Reinsurance (Retained and Reins

Reinsurance (Retained and Reinsured Balance Sheets) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Assets [Abstract]
Total investments	$ 1,832,890	$ 1,614,957
Cash and cash equivalents	170,073	191,414
Deferred acquisition costs, net	48,150	43,433		$ 24,530
Premiums receivable	368	362
Accrued investment income	31,590	25,165
Reinsurance recoverables	55,202	20,552
Property and equipment, net	1,805	1,897
Receivable for securities sold		10,518
Other assets	4,397	12,495
Total assets	2,144,475	1,920,431
Liabilities:
Benefit reserves	12,739	12,945
Deposit-type contracts	1,963,786	1,743,348		1,075,439
Other policy-holder funds	9,267	4,105
Notes payable	25,000	25,000
Deferred gain on coinsurance transactions	39,952	38,063
Payable for securities purchased	22,677	8,872
Operating lease	2,078	2,135
Other liabilities	44,126	51,586
Total liabilities	2,119,625	1,886,054
Stockholders' Equity:
Preferred stock
Voting common stock	4	4
Additional paid-in capital	138,789	138,482
Treasury stock	(175)	(175)
Accumulated deficit	(63,863)	(63,019)
Accumulated other comprehensive loss	(61,928)	(51,386)
Total Midwest Holding Inc.'s stockholders' equity	12,827	23,906
Noncontrolling interests	12,023	10,471
Total stockholders' equity	24,850	34,377	$ 79,191	$ 85,756
Total liabilities and stockholders' equity	2,144,475	1,920,431
Reinsurance Contract [Axis]: Reinsurance [Member]
Assets [Abstract]
Total investments	887,816	802,780
Cash and cash equivalents	70,635	64,123
Premiums receivable	368
Accrued investment income	19,045	13,858
Reinsurance recoverables	91,999	27,405
Receivable for securities sold		8,485
Other assets	(6,235)	236
Total assets	1,063,628	916,887
Liabilities:
Benefit reserves	11,568	11,613
Deposit-type contracts	1,008,011	901,368
Other policy-holder funds	15
Deferred gain on coinsurance transactions	39,802
Other liabilities	4,232	3,906
Total liabilities	1,063,628	916,887
Stockholders' Equity:
Total liabilities and stockholders' equity	1,063,628	916,887
Reinsurance Contract [Axis]: Retained [Member]
Assets [Abstract]
Total investments	945,074	812,177
Cash and cash equivalents	99,438	127,291
Deferred acquisition costs, net	48,150	43,433
Accrued investment income	12,545	11,307
Reinsurance recoverables	(36,797)	(6,853)
Property and equipment, net	1,805	1,897
Receivable for securities sold		2,033
Other assets	10,632	12,259
Total assets	1,080,847	1,003,544
Liabilities:
Benefit reserves	1,171	1,332
Deposit-type contracts	955,775	841,980
Other policy-holder funds	9,252	4,105
Notes payable	25,000	25,000
Deferred gain on coinsurance transactions	150	38,063
Payable for securities purchased	22,677	8,872
Operating lease	2,078	2,135
Other liabilities	39,894	47,680
Total liabilities	1,055,997	969,167
Stockholders' Equity:
Voting common stock	4	4
Additional paid-in capital	138,789	138,482
Treasury stock	(175)	(175)
Accumulated deficit	(63,863)	(63,019)
Accumulated other comprehensive loss	(61,928)	(51,386)
Total Midwest Holding Inc.'s stockholders' equity	12,827	23,906
Noncontrolling interests	12,023	10,471
Total stockholders' equity	24,850	34,377
Total liabilities and stockholders' equity	$ 1,080,847	$ 1,003,544

Income Tax Matters (Schedule of

Income Tax Matters (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Loss carryforwards	$ 3,469	$ 2,672
Capitalized costs	67	79
Stock option granted	1,131	1,066
Policy acquisition costs	7,245	6,489
General business credits	6	6
Sec 163(j) limitation	171	171
Benefit reserves	10,004	12,010
Impairments	403	403
Unrealized losses on investments	16,462	13,624
Other	1,928	1,928
Total deferred tax assets	40,886	38,448
Less valuation allowance	(38,331)	(35,305)
Total deferred tax assets, net of valuation allowance	2,555	3,143
Deferred tax liabilities:
Intangible assets	147	147
Derivative option allowance	1,084	2,150
Bond Discount	1,424	936
Property and equipment	(100)	(90)
Total deferred tax liabilities	2,555	3,143
Net deferred tax assets

Income Tax Matters (Schedule _2

Income Tax Matters (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Matters
Computed expected income tax benefit (expense)	$ (2,785)	$ (1,099)
Reduction (increase) in income taxes resulting from:
Interest maintenance reserve and reinsurance	69	(79)
Non deductible expenses	(3)	(2)
Change in valuation allowance	(188)	(3,532)
Deferred tax adjustment		(10)
Subtotal of increases	(122)	(3,623)
Tax benefit (expense)	$ (2,907)	$ (4,722)

Income Tax Matters (Narratives)

Income Tax Matters (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2016
Deferred Tax Assets, Valuation Allowance	$ 38,331		$ 35,305
U.S. federal income tax rate	21%
Net operating loss ("NOL") carryforwards	$ 9,400				$ 1,000
Percentage of carry forward year limited taxable income	80%
NOLs carryforwards, valuation allowance	$ 2,000
Income tax (benefit) expense	$ 2,907	$ 4,722
SRC1
Net operating loss ("NOL") carryforwards				$ 100

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Noncurrent:
Operating lease right of use assets	$ 2,059	$ 2,119
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Liabilities
Operating lease	$ 2,078	$ 2,135
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities

Leases (Schedule of Finance and

Leases (Schedule of Finance and Operating Leases Mature) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Operating Leases
2023	$ 257
2024	342
2025	342
2026	345
2027	353
2028	362
2029 and after	1,042
Total remaining lease payments	$ 3,043

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating cash flows from operating leases	$ 100	$ 100
Weighted Average Remaining Term - Operating lease	8 years 6 months	10 years
Weighted Average Discount Rate - Operating lease	8%	8%
Operating lease cost (General and administrative expense)	$ 3	$ 3

Equity (Narrative) (Details)

Equity (Narrative) (Details) - shares	3 Months Ended	12 Months Ended
Equity (Narrative) (Details) - shares	Mar. 31, 2023	Dec. 31, 2022
Preferred stock
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	3,728,601	3,727,976
Common stock, shares outstanding	3,728,601	3,727,976
Non Voting Common Stock, Shares Issued	0	0
Non Voting Common Stock, Shares Outstanding	0	0
Reverse stock split fractions retired (in shares)	4,500
Voting common share
Common Stock
Common stock, shares authorized	20,000,000	20,000,000
Non-voting common shares
Common Stock
Common stock, shares authorized	2,000,000	2,000,000

Equity (AOCI) (Details)

Equity (AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Equity (AOCI) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 34,377	$ 85,756	$ 85,756
Other comprehensive (loss) before reclassifications, net of tax	(10,552)	(9,703)
Less: Reclassification adjustments for losses realized in net income, net of tax	10	(512)
Balance	24,850	79,191	34,377
Unrealized investment gains (losses) on fixed maturities, net of offsets
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(51,386)	$ 2,634	2,634
Other comprehensive (loss) before reclassifications, net of tax	(10,552)		(54,975)
Less: Reclassification adjustments for losses realized in net income, net of tax	10		955
Balance	$ (61,928)		$ (51,386)

Long-Term Incentive Plans (Deta

Long-Term Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		12 Months Ended
	Jun. 14, 2022	Jun. 30, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2019
Employee stock options			$ 307	$ 31
Stock Options
Expiration period			10 years
Exercise price grant date intrinsic value			$ 0
Weighted average exercise prices of vested and exercisable (in dollars per share)			38.14
Share price			$ 15.80
Vested options			$ 0
Options outstanding			$ 300
Restricted Stock
Restricted stock granted (in shares)						18,597
Vesting percentage						25%
Restricted stock granted (in dollars per share)						$ 41.25
Vested (in shares)				5,812
Forfeited (in shares)				12,785
Restricted stock unit
Restricted stock granted (in shares)	18,718	5,089
Restricted stock granted (in dollars per share)	$ 11.22	$ 24.34
Vested (in shares)			1,163		1,163
Minimum \| Stock Options
Vesting period			2 years
Maximum \| Stock Options
Vesting period			4 years
Long-Term Incentive Plans.
Restricted stock granted (in shares)					18,718
2019 LTIP
Employee stock options			$ 300
2019 LTIP \| Maximum \| Stock Options
Shares authorized							102,000
2020 LTIP
Additional shares authorized					150,000
Employee stock options				$ 100
2020 LTIP \| Maximum \| Stock Options
Shares authorized						350,000

Long-Term Incentive Plans (Opti

Long-Term Incentive Plans (Options Outstanding) (Details)	3 Months Ended
Long-Term Incentive Plans (Options Outstanding) (Details)	Mar. 31, 2023 $ / shares shares
Weighted Average Exercise Price Per Share
Balance at the beginning (in dollars per share) \| $ / shares	$ 32.21
Granted (in dollars per share) \| $ / shares	17.12
Prior year adjustment (in dollars per share) \| $ / shares	11.20
Vested (in dollars per share) \| $ / shares	38.14
Forfeited (in dollars per share) \| $ / shares	37.51
Balance at the end (in dollars per share) \| $ / shares	31.93
Range of Option Exercise Prices Per Share
Granted (in dollars per share) \| $ / shares	17.12
Prior year adjustment (in dollars per share) \| $ / shares	11.20
Vested (in dollars per share) \| $ / shares	$ 55.02
Total Outstanding
Outstanding at the beginning (in shares) \| shares	319,121
Granted (in shares) \| shares	5,000
Prior year adjustment (in shares) \| shares	750
Vested (in shares) \| shares	4,550
Forfeited (in shares) \| shares	(2,400)
Outstanding at the end (in shares) \| shares	322,471
Outstanding, Non-vested
Outstanding, Non-vested Options at beginning (in shares) \| shares	271,517
Granted (in shares) \| shares	5,000
Prior year adjustment (in shares) \| shares	750
Vested (in shares) \| shares	(4,550)
Forfeited (in shares) \| shares	(2,400)
Outstanding, Non-vested Options at ending (in shares) \| shares	270,317
Vested and Exercisable
Vested and Exercisable Balance at the beginning (in shares) \| shares	47,604
Vested and Exercisable Vested (in shares) \| shares	4,550
Vested and Exercisable Balance at the end (in shares) \| shares	52,154
Minimum
Range of Option Exercise Prices Per Share
Balance at the beginning (in dollars per share) \| $ / shares	$ 11.20
Forfeited (in dollars per share) \| $ / shares	25
Balance at the end (in dollars per share) \| $ / shares	11.20
Maximum
Range of Option Exercise Prices Per Share
Balance at the beginning (in dollars per share) \| $ / shares	55.02
Forfeited (in dollars per share) \| $ / shares	55.02
Balance at the end (in dollars per share) \| $ / shares	$ 55.02

Long-Term Incentive Plans (Op_2

Long-Term Incentive Plans (Option information segregated by ranges of exercise prices) (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Greater than $50.00
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, upper limit	$ 50
Outstanding options \| shares	46,803
Outstanding, Exercise price (in dollars per share)	$ 60.37
Outstanding, Remaining term	7 years 9 months 18 days
Vested and exercisable options \| shares	4,550
Vested and exercisable, Exercise price (in dollars per share)	$ 55.02
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term	7 years 10 months 2 days
$40.00 - $49.99
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 40
Exercise price range, upper limit	$ 49.99
Outstanding options \| shares	91,709
Outstanding, Exercise price (in dollars per share)	$ 57.46
Outstanding, Remaining term	7 years 11 months 8 days
Vested and exercisable options \| shares	36,042
Vested and exercisable, Exercise price (in dollars per share)	$ 41.25
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term	7 years 9 months 14 days
$30.00 - $39.99
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 30
Exercise price range, upper limit	39.99
$20.00 - $29.99
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	20
Exercise price range, upper limit	$ 29.99
Outstanding options \| shares	21,090
Outstanding, Exercise price (in dollars per share)	$ 31.18
Outstanding, Remaining term	7 years 6 months 18 days
Vested and exercisable options \| shares	7,277
Vested and exercisable, Exercise price (in dollars per share)	$ 25
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term	7 years 29 days
$10.00 - $19.99
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 10
Exercise price range, upper limit	$ 19.99
Outstanding options \| shares	110,715
Outstanding, Exercise price (in dollars per share)	$ 13.75
Outstanding, Remaining term	9 years 3 months
Vested and exercisable options \| shares	4,285
Vested and exercisable, Exercise price (in dollars per share)	$ 16.37
Share-Based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term	8 years 8 months 23 days
Less than $10.00
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 10

Long-Term Incentive Plans (Rest

Long-Term Incentive Plans (Restricted Stock Units) (Details) - Restricted stock unit - $ / shares		1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 14, 2022	Jun. 30, 2021	Mar. 31, 2023	Dec. 31, 2022
Restricted Stock and Restricted Stock Units (RSUs)
Outstanding at beginning (in shares)			17,207
Granted (in shares)	18,718	5,089
Vested (in shares)			(1,163)	(1,163)
Outstanding at ending (in shares)			17,207	17,207
Weighted Average Grant-Date Fair Value
Weighted average grant-date fair value, at the beginning (in dollars per share)			$ 13.84
Weighted average grant-date fair value, Granted (in dollars per share)	$ 11.22	$ 24.34
Weighted average grant-date fair value, Vested (in dollars per share)			50	$ 50
Weighted average grant-date fair value, at the ending (in dollars per share)			$ 13.84	$ 13.84
Vested (in shares)			1,163	1,163
Weighted average grant-date fair value, Vested (in dollars per share)			$ 50	$ 50

Long-Term Incentive Plans (Assu

Long-Term Incentive Plans (Assumptions) (Details)	3 Months Ended	12 Months Ended
Long-Term Incentive Plans (Assumptions) (Details)	Mar. 31, 2023	Dec. 31, 2022
Fair value assumptions
Expected volatility (as a percent)	287.29%
Expected volatility, minimum (as a percent)		4.16%
Expected volatility, maximum (as a percent)		4.26%
Weighted-average volatility (as a percent)	287.30%	3.70%
Risk free rate (as a percent)	3.57%
Risk free rate, minimum (as a percent)	3.57%	0.02%
Risk free rate, maximum (as a percent)		2.15%
Minimum
Fair value assumptions
Expected term (in years)	6 years 6 months 14 days	2 years
Maximum
Fair value assumptions
Expected term (in years)		7 years

Long-Term Incentive Plans (Non-

Long-Term Incentive Plans (Non-vested shares) (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Outstanding, Non-vested Options at beginning (in shares)	271,517
Granted (in shares)	5,000
Vested (in shares)	(4,550)
Forfeited (in shares)	(2,400)
Outstanding, Non-vested Options at ending (in shares)	270,317	271,517
Balance at the beginning (in dollars per share)	$ 32.21
Granted (in dollars per share)	17.12
Prior year adjustment (in dollars per share)	11.20
Vested (in dollars per share)	38.14
Balance at the end (in dollars per share)	$ 31.93	$ 32.21
Long-Term Incentive Plans.
Outstanding, Non-vested Options at beginning (in shares)	287,561	317,217
Granted (in shares)	5,000	117,367
Adjustment to prior year options granted	(750)
Restricted stock granted (in shares)		18,718
Vested (in shares)	(4,550)	(56,678)
Forfeited (in shares)	(2,400)	(109,063)
Outstanding, Non-vested Options at ending (in shares)	286,361	287,561
Outstanding at beginning (in dollars per share)	$ 16.96	$ 25.80
Options granted (in dollars per share)	16.56	9.57
Adjustment to prior year options granted (in dollars per share)	16.56
Vested (in dollars per share)	34.95	21.12
Forfeited (in dollars per share)	23.02	23.82
Outstanding at ending (in dollars per share)	16.93	16.96
Balance at the beginning (in dollars per share)	32.29	40.13
Granted (in dollars per share)	17.12	14.92
Prior year adjustment (in dollars per share)	11.20
Vested (in dollars per share)	55.02	36.53
Forfeited, weighted average exercise price (in dollars per share)	37.51	38.87
Balance at the end (in dollars per share)	$ 31.93	$ 32.29

Statutory Net Income and Surp_3

Statutory Net Income and Surplus (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
SRC1
Statutory net income (loss)	$ 3,214	$ (822)
Statutory Capital and Surplus	12,829		$ 9,615
SRC3
Statutory net income (loss)	288	469
Statutory Capital and Surplus	6,334		6,023
Premiums Sales	175	(148)
American Life and Security Corporation
Statutory net income (loss)	(16,588)	9,593
Statutory Capital and Surplus	59,971		$ 69,936
Premiums Sales	$ 92,287	$ 58,118

Third-party Administration (Det

Third-party Administration (Details) $ in Millions	Mar. 31, 2023 USD ($)
TPA
Related Party Transaction [Line Items]
Third party assets under management	$ 828.6

Policy Administration Fees (Det

Policy Administration Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Policy Administration Fees
Policy administration fees	$ 639	$ 348

Related Party (Details)

Related Party (Details) - USD ($) $ in Millions			3 Months Ended
Related Party (Details) - USD ($) $ in Millions	Jun. 29, 2022	Apr. 24, 2020	Mar. 31, 2023
BBB+
Related Party Transaction [Line Items]
Interest rate			5%
Seneca Re Agreement
Related Party Transaction [Line Items]
Reinsurance term		3 years
Seneca Re Agreement \| MYGA
Related Party Transaction [Line Items]
Percentage of indemnity coinsurance		25%
Seneca Re Agreement \| FIA
Related Party Transaction [Line Items]
Percentage of indemnity coinsurance		40%
Crestline Assurance Holdings LLC
Related Party Transaction [Line Items]
Assets under management			$ 472.4
Additional investments			142.9
Crestline Assurance Holdings LLC \| Securities Purchase Agreement
Related Party Transaction [Line Items]
Shares issued		444,444
American Life
Related Party Transaction [Line Items]
Capital contribution		$ 5
American Life \| UK Limited
Related Party Transaction [Line Items]
Percentage of interest acquired in financial guarantee	17%
SRC1
Related Party Transaction [Line Items]
Capital contribution		$ 3.3
Chelsea Holdings Midwest LLC \| BBB+
Related Party Transaction [Line Items]
Interest rate	5%
Fair market value			6.3
Chelsea Holdings Midwest LLC \| Series B Preferred Stock \| BBB+
Related Party Transaction [Line Items]
Fair market value			2.3
Crestline SP 1
Related Party Transaction [Line Items]
Reinsurance ceded amount			1
Reinsurance ceded commissions			0.9
Reinsurance ceded expense reimbursements			$ 0.9

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($)
American Life and Security Corporation
Other Commitments [Line Items]
Number of jurisdiction licensed \| item	24
Unfunded Commitments
Other Commitments [Line Items]
Commitments	$ 198,373	$ 178,995
Commitments reinsurance	142,600
Unfunded Commitment
Due in one year or less	74,790	52,951
Due in two years	31,970	43,604
Due in three years	24,030	7,731
Due in four years	13,409	13,277
Due in five years and after	54,174	61,432
Total	198,373	$ 178,995
Unfunded Commitments \| American Life and Security Corporation
Other Commitments [Line Items]
Commitments	55,800
Unfunded Commitment
Total	$ 55,800

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 30, 2023 USD ($) $ / shares	Mar. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares
Subsequent Events.
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Subsequent Event \| Midas Merger Acquisition Sub, Inc
Subsequent Events.
Common stock, par value (in dollars per share)	$ 0.001
Right to receive per share in cash	$ 27
Percentage of shares held by shareholders	33%
Notice period to parent by the stockholder \| $	10