Midwest Holding (MDWT) 10-Q 13 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 13, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 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		3,744,645
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000355379
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Fixed maturities, available for sale, at fair value (amortized cost: $1,717,921 in 2023, and $1,269,735 in 2022. Allowance for credit losses of $8,917 in 2023.) (See Note 3)	$ 1,643,832	$ 1,214,635
Mortgage loans on real estate, held for investment (Allowance for credit losses of $1,577 in 2023.)	421,232	227,047
Derivative instruments (See Note 4)	26,559	15,934
Equity securities, at fair value (cost: $5,592 in 2023 and $5,592 in 2022)	5,112	5,111
Other invested assets (Allowance for credit losses of $1,600 in 2023.)	126,777	112,431
Preferred stock	33,926	31,415
Deposits and notes receivable	10,774	8,359
Policy loans	83	25
Total investments	2,268,295	1,614,957
Cash and cash equivalents	197,804	191,414
Deferred acquisition costs, net	69,470	43,433
Premiums receivable	63	362
Accrued investment income	44,694	25,165
Reinsurance recoverables (See Note 8)	27,870	20,190
Property and equipment, net	1,721	1,897
Receivable for securities sold		10,518
Other assets	14,335	12,495
Total assets	2,624,252	1,920,431
Liabilities:
Benefit reserves	11,532	12,945
Deposit-type contracts (See Note 6)	2,453,282	1,743,348
Other policy-holder funds	4,530	4,105
Notes payable (See Note 7)	25,000	25,000
Deferred gain on coinsurance transactions	44,140	38,063
Payable for securities purchased	27,029	8,872
Other liabilities	36,786	53,721
Total liabilities	2,602,299	1,886,054
Stockholders' Equity:
Preferred stock, $0.001 par value; authorized 2,000,000 shares; no shares issued and outstanding as of September 30, 2023 or December 31, 2022
Voting common stock, $0.001 par value; authorized 20,000,000 shares; 3,744,645 shares issued and outstanding as of September 30, 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 September 30, 2023 and December 31, 2022, respectively	4	4
Additional paid-in capital	138,122	138,482
Treasury stock	(175)	(175)
Accumulated deficit	(67,361)	(63,019)
Accumulated other comprehensive loss	(66,886)	(51,386)
Total Midwest Holding Inc.'s stockholders' equity	3,704	23,906
Noncontrolling interests	18,249	10,471
Total stockholders' equity	21,953	34,377
Total liabilities and stockholders' equity	$ 2,624,252	$ 1,920,431

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Amortized Cost	$ 1,717,921	$ 1,269,735
Fixed maturities, Allowance for credit losses	8,917
Mortgage loan on real estate, Allowance for credit losses	1,577
Equity securities, amortized cost	5,592	$ 5,592
Other invested assets, Allowance for credit losses	$ 1,600
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	3,744,645	3,727,976
Common stock, shares outstanding	3,744,645	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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues
Investment income, net of expenses	$ 20,796	$ 12,938	$ 64,237	$ 29,721
Net realized (loss) gain on investments	(8,946)	4,135	9,427	(14,676)
Amortization of deferred gain on reinsurance transactions	1,392	1,239	4,463	3,251
Policy administration fees	874	536	1,992	1,398
Service fee revenue, net of expenses	2,298	118	3,582	1,632
Other revenue	5	33	235	132
Total revenue	16,419	18,999	83,936	21,458
Expenses
Interest credited	2,524	5,682	22,803	(6,489)
Benefits	(526)	1,351	1,638	2,345
Amortization of deferred acquisition costs	2,215	1,193	5,832	3,095
Salaries and benefits	3,805	3,751	15,124	12,366
Other operating expenses	956	2,317	19,869	(1,744)
Total expenses	8,974	14,294	65,266	9,573
Net income before income tax expense	7,445	4,705	18,670	11,885
Income tax expense (See Note 9)	(4,606)	(1,250)	(10,482)	(3,848)
Net income after income tax expense	2,839	3,455	8,188	8,037
Less: Income (loss) attributable to noncontrolling interest	2,454	(3,976)	7,856	(8,846)
Net income attributable to Midwest Holding Inc.	385	7,431	332	16,883
Comprehensive loss:
Unrealized losses on investments arising during the three months ended September 2023 and 2022, net of offsets, net of tax ($1.9 million and $5.4 million, respectively); Unrealized losses on investments arising during the nine months ended September 2023 and 2022, net of offsets, net of tax ($3.2 million and $10.4 million, respectively)	(9,937)	(26,114)	(16,167)	(55,483)
Less: Reclassification adjustment for net realized gains (losses) on investments, net of offsets during the three months ended September 2023 and 2022 (net of tax less than $(0.1) million and $(19.9) million respectively); Reclassification adjustment for net realized gains (losses) on investments, net of offsets during the nine months ended September 2023 and 2022 (net of tax $(0.2) million and $(24.9) million respectively)	484	(952)	667	(94)
Other comprehensive loss	(9,453)	(27,066)	(15,500)	(55,577)
Comprehensive loss:	$ (9,068)	(19,635)	$ (15,168)	(38,694)
Total other-than-temporary impairment		346		880
Net other-than-temporary impairment loss recognized in net income		$ 346		$ 880
Income per common share
Basic (in dollars per share)	$ 0.10	$ 1.99	$ 0.09	$ 4.52
Diluted (in dollars per share)	$ 0.10	$ 1.96	$ 0.09	$ 4.45

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Consolidated Statements of Comprehensive Loss
Unrealized losses on investments arising during period, net of tax	$ 2.1	$ 5.4	$ 3.4	$ 10.4
Reclassification adjustment for net realized losses on investments, net of tax	$ (0.1)	$ (19.9)	$ (0.2)	$ (24.9)

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					16,883				16,883
Employee stock options			(286)						(286)
Unrealized losses on investments, net of taxes						(55,577)			(55,577)
Noncontrolling interest							(6,906)		(6,906)
Balance at Sep. 30, 2022	(175)	4	138,166		(53,276)	(52,943)	8,094		39,870
Balance at Jun. 30, 2022	(175)	4	138,838		(60,707)	(25,877)	12,413		64,496
Net income					7,431				7,431
Employee stock options			(672)						(672)
Unrealized losses on investments, net of taxes						(27,066)			(27,066)
Noncontrolling interest							(4,319)		(4,319)
Balance at Sep. 30, 2022	(175)	4	138,166		(53,276)	(52,943)	8,094		39,870
Balance at Dec. 31, 2022	(175)	4	138,482	$ (4,674)	(63,019)	(51,386)	10,471	$ (4,674)	34,377
Net income					332				332
Employee stock options			691						691
Unrealized losses on investments, net of taxes						(15,500)			(15,500)
Dividends paid			(1,051)						(1,051)
Noncontrolling interest							7,778		7,778
Balance at Sep. 30, 2023	(175)	4	138,122		(67,361)	(66,886)	18,249		21,953
Balance at Jun. 30, 2023	(175)	4	139,085		(67,746)	(57,433)	15,565		29,300
Net income					385				385
Employee stock options			88						88
Unrealized losses on investments, net of taxes						(9,453)			(9,453)
Dividends paid			(1,051)						(1,051)
Noncontrolling interest							2,684		2,684
Balance at Sep. 30, 2023	$ (175)	$ 4	$ 138,122		$ (67,361)	$ (66,886)	$ 18,249		$ 21,953

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Income attributable to Midwest Holding Inc.	$ 332	$ 16,883
Adjustments to arrive at cash provided by operating activities:
Net premium and discount on investments	(16,055)	(6,982)
Depreciation and amortization	281	229
Stock options	691	(287)
Amortization of deferred acquisition costs	5,832	3,095
Deferred acquisition costs capitalized	(32,425)	(18,285)
Net realized (loss) gain on investments	(5,950)	14,676
Allowance for Credit Losses	4,751
Deferred gain on coinsurance transactions	6,077	6,875
Changes in operating assets and liabilities:
Reinsurance recoverable	(3,679)	33,698
Interest and dividends due and accrued	(19,530)	(10,292)
Premiums receivable	299	(10)
Deposit-type liabilities	92,184	(17,245)
Policy liabilities	(989)	2,740
Receivable and payable for securities	28,673	22,100
Other assets and liabilities	(21,186)	17,697
Net cash provided by operating activities	39,306	64,892
Fixed maturities available for sale:
Purchases	(576,960)	(692,348)
Proceeds from sale or maturity	147,965	296,179
Mortgage loans on real estate, held for investment
Purchases	(306,010)	(75,985)
Proceeds from sale	110,785	58,033
Derivatives
Purchases	(22,249)	(22,981)
Proceeds from sale	12,730	3,232
Equity securities
Purchases	(1)
Proceeds from sale		12,772
Other invested assets
Purchases	(88,825)	(48,302)
Proceeds from sale	69,639	3,334
Purchase of restricted common stock	(1,700)	(1)
Preferred stock
Purchases	(2,511)	(2,893)
Net change in policy loans	(58)	66
Net purchases of property and equipment	(102)	(1,830)
Net cash used in investing activities	(657,297)	(470,724)
Cash flows from financing activities:
Net transfer to noncontrolling interest	7,682	(6,906)
Dividends Paid	(1,051)
Receipts on deposit-type contracts	716,540	509,660
Withdrawals on deposit-type contracts	(98,790)	(30,271)
Net cash provided by financing activities	624,381	472,483
Net increase in cash and cash equivalents	6,390	66,651
Cash and cash equivalents:
Beginning	191,414	142,013
Ending	197,804	208,664
Supplementary information
Cash paid for taxes	$ 9,682	$ 2,870

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies	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 25 states and the District of Columbia as of September 30, 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 Certificate 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 September 30, 2023, Seneca Re has three incorporated cells, including Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Incorporated Cell, LLC 2021-03 (“SRC3”), which are consolidated in our financial statements. Additionally, Seneca Incorporated Cell, LLC 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”), an affiliate of Crestline Assurance Holdings LLC, a significant shareholder of Midwest. The Reinsurance Agreement, which was effective as of April 24, 2020, was entered into pursuant to a Master Letter Agreement (the “Master Agreement”) also dated and effective as of April 24, 2020, by and 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 indexed 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. Effective December 8, 2020, American Life entered into a novation agreement with SRC2 and Crestline Re SPC, an exempted segregated portfolio company incorporated under the laws of the Cayman Islands, for and on behalf of Crestline SP1, a segregated portfolio company of Crestline Re SPC, under which the above-described Reinsurance Agreement, as well as the trust and related asset management agreements, were novated and replaced with substantially similar agreements entered into by American Life and Crestline SP1. The Reinsurance Agreement was most recently amended effective in April 2023 to allow Crestline to provide reinsurance funding for a quota share percentage of 20% of the liabilities of American Life arising from its three-year MYGAs, a quota share percentage of 10% of its five-year MYGAs, and a quota share percentage of 0% of the liabilities of American Life arising from its FIAs. The amended agreement limited the total amounts to be reinsured to $550 million. 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 was executed on June 29, 2021. Under the Modco AEG Agreement, American Life initially ceded to AEG (and subsequently renewed), on a modified coinsurance basis, a 20% quota share of certain liabilities with respect to its five-year MYGA 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 both MYGA and FIA policies is 0%. The Modco AEG Agreement remains in place, and AEG remains responsible for previously ceded liabilities. As of November 10, 2021, Midwest formed and purchased 100% of the common stock of an intermediary holding company which immediately purchased 100% of SRC3 Class A and B membership interests. Also dated as of November 10, 2021 but effective as of July 1, 2021, American Life and SRC3 entered into a Funds Withheld and Modified Coinsurance Agreement, whereby SRC3 agreed to provide reinsurance funding for an ongoing 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. The agreement with SRC3 has been amended, most recently in the fourth quarter of 2022, to provide one-time reinsurance funding for a quota share of $10.0 million of the liabilities of American Life arising from its 10-year FIA products. As of 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. and Tillman Networks LLC. The Reinsurance Agreement was effective as of July 1, 2022, by and between American Life and SRC4. 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 initially agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its five-year MYGA products and a quota share percentage of 10% of the liabilities of American Life arising from its three-year MYGA 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 Modco Deposit 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 and nine months ended September 30, 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. on a quarterly basis that may require a credit loss allowance. These reviews, in conjunction with the Company’s investment managers’ reports and relevant factors such as (1) the financial condition and near-term prospects of the issuer; (2) the Company’s intent to sell a fixed maturity or whether it is more likely than not that the Company will be required to sell a fixed maturity before the anticipated recovery in value; (3) the market leadership of the issuer; (4) the debt ratings of the issuer; and (5) the cash flows and liquidity of the issuer or the underlying cash flows, as required for our investment models, are all considered in the impairment assessment. 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, 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 of 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 an 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 September 30, 2023, the Company held one asset valued at $7.7 million with a total impairment of $1.4 million , and another 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 change in fair market values of these futures were recorded on our Consolidated Statements of Comprehensive Loss as realized gains or (losses). Additionally, reinsurance agreements written on an 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 custody accounts are reflected as realized (losses) or gains in the Consolidated Statements of Comprehensive Loss. Equity Securities Equity securities at September 30, 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 September 30, 2023, and December 31, 2022 we held $5.1 million of ETFs. Preferred Stock The company holds investments in preferred stock of $33.9 million as of September 30, 2023 and $31.4 million as of December 31, 2022, of which $10.0 million was redeemable at both dates. 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”), acquiring preferred equity and warrants, and later created a special purpose vehicle, Ascona Asset Holding LLC (“AAH”), to hold the preferred equity and warrants, and also 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 $12.3 million as of September 30, 2023 and $10.5 million of December 31, 2022. For the three months ended September 30, 2023, $ (0.7) million of investment income related to ACH was recognized, and $ (0.2) million was attributed to the noncontrolling interest held by Crestline Re SP1. For the three months ended September 30, 2022, $0.2 million of investment income was recognized, and less than $0.1 million was attributed to Crestline Re SP1. ​ Other Invested Assets Other invested assets consists of approximately $126.8 million of various investments. Of this total, approximately $113.7 million are primarily collateral loans, and $13.1 million of private credit and equipment leases. The collateral loans, private credit and equipment leases are carried at fair market value, net of allowance for expected 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 September 30, 2023, was $11.2 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 September 30, 2023, our investment in Python was carried at the net asset value (“NAV”) plus approximately $0.7 million of investment income. Deposits and notes receivable Investment escrow The Company held in escrow $1.3 million and $0.8 million as of September 30, 2023 and December 31, 2022, respectively. The cash held at year end was used to purchase mortgages in October 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 made 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 September 30, 2023, the Company had pledged assets with a market value of $233.5 million to FHLB to allow a borrowing capacity of $212.0 million and $121.1 million pledged as of December 31, 2022 to allow a borrowing capacity of $109.8 million. As of September 30, 2023 we had $68.0 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 $6.5 million and $6.3 million as of September 30, 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 16 – 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) September 30, 2023 ​ December 31, 2022 Beginning balance ​ $ 43,433 ​ $ 24,530 Additions ​ ​ 32,425 ​ ​ 23,857 Amortization ​ ​ (4,369) ​ ​ (3,905) Interest ​ ​ (1,463) ​ ​ (883) Impact of unrealized investment losses ​ ​ (556) ​ ​ (166) Ending balance ​ $ 69,470 ​ $ 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 third quarter of 2023 and determined that all DAC balances were recoverable as of September 30, 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 less than $0.1 million and $0.4 million at September 30, 2023 and December 31, 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 8 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 approximately 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 Seneca Incorporated Cell, LLC 2020-02 (“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 and/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 an FW agreement, assets that would normally be paid over to a

Non-controlling Interest

Non-controlling Interest	9 Months Ended
	Sep. 30, 2023
Non-controlling Interest
Non-controlling Interest	Note 2. Non-controlling Interest Disposal On December 30, 2021, Midwest closed the sale of approximately 70% of SRC1 to a subsidiary of ORIX Corporation USA for $15.0 million. Under the terms of the agreement, Midwest 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, replacing Midwest’s asset management arm, 1505 Capital LLC. Midwest carries the original purchase amount of $15.0 million as noncontrolling interest in the equity section of the Consolidated Balance Sheets plus cumulative income of $0.5 million as of September 30, 2023, and a cumulative loss of $5.5 million as of December 31, 2022. ​ Purchase In 2020 American Life entered into a series of transactions with an unaffiliated entity, Ascona Group Holdings Ltd (“AGH”). Through these transactions American Life acquired preferred equity in AGH in British Pound Sterling (“GBP”) of 3.6 million along with warrants bearing no initial assigned value. American Life subsequently 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 at a market USD value of $12.3 million as of September 30, 2023, and $10.5 million as of December 31, 2022. The change in market value for the three months ended September 30, 2023 and 2022, of $ (0.7) million and $0.2 million for the preferred stock and warrants was recorded in net investment income on the Consolidated Statements of Comprehensive Loss. Of the $ (0.7) million of investment income, $ (0.2) million was attributable to noncontrolling interest. The change in market value for the nine months ended September 30, 2023 and 2022, of $2.1 million and $1.8 million for the preferred stock and warrants was recorded in net investment income on the Consolidated Statements of Comprehensive Loss. Of the $2.1 million of investment income, $0.6 million was attributable to noncontrolling interest. Dividends In September 2023, SRC1 declared and paid a cash dividend of $1.5 million to its shareholders. Of the amounts declared and paid, $1.0 million were received by the subsidiary of ORIX Corporation USA and $0.5 million was received by Midwest. The amounts received by Midwest have been eliminated in the consolidation of our financial statements in accordance with accounting principles generally accepted in the United States. ​

Investments

Investments	9 Months Ended
	Sep. 30, 2023
Investments.
Investments	Note 3. 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 September 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ for Credit ​ Unrealized ​ Unrealized ​ Estimated (In thousands) Cost ​ Losses Gains Losses Fair Value September 30, 2023: ​ ​ ​ ​ ​ ​ ​ Fixed maturities: ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government obligations ​ $ 1,448 ​ $ - ​ $ 521 ​ $ (64) ​ $ 1,905 Mortgage-backed securities ​ 522,767 ​ (386) ​ 1,988 ​ (42,045) ​ 482,324 Asset-backed securities ​ ​ 39,121 ​ ​ - ​ ​ 84 ​ ​ (2,831) ​ ​ 36,374 Collateralized loan obligations ​ ​ 385,942 ​ ​ (613) ​ ​ 3,758 ​ ​ (12,363) ​ ​ 376,724 States and political subdivisions-general obligations ​ 128 ​ - ​ - ​ (4) ​ 124 States and political subdivisions-special revenue ​ - ​ - ​ - ​ - ​ - Corporate ​ 68,242 ​ (1,206) ​ 31 ​ (5,283) ​ 61,784 Term loans ​ ​ 700,273 ​ ​ (5,332) ​ ​ 1,710 ​ ​ (12,054) ​ ​ 684,597 Total fixed maturities ​ $ 1,717,921 ​ $ (7,537) ​ $ 8,092 ​ $ (74,644) ​ $ 1,643,832 Mortgage loans on real estate, held for investment ​ ​ 422,809 ​ ​ (1,577) ​ ​ - ​ ​ - ​ ​ 421,232 Derivatives ​ ​ 37,829 ​ ​ - ​ ​ 5,296 ​ ​ (16,566) ​ ​ 26,559 Equity securities ​ ​ 5,592 ​ ​ - ​ ​ - ​ ​ (480) ​ ​ 5,112 Other invested assets ​ ​ 126,696 ​ ​ (1,600) ​ ​ 2,154 ​ ​ (473) ​ ​ 126,777 Preferred stock ​ ​ 38,801 ​ ​ - ​ ​ 177 ​ ​ (5,052) ​ ​ 33,926 Deposits and notes receivable ​ ​ 10,774 ​ ​ - ​ ​ - ​ ​ - ​ ​ 10,774 Policy loans ​ ​ 83 ​ ​ - ​ ​ - ​ ​ - ​ ​ 83 Total investments ​ $ 2,360,505 ​ $ (10,714) ​ $ 15,719 ​ $ (97,215) ​ $ 2,268,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In Thousands) ​ Balance December 31, 2022 ​ Additional Allowance Recognized Due to Adoption of Accounting Guidance ​ Credit Loss Expense for the Current Period ​ Balance September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities $ - ​ $ 3,564 ​ $ (3,178) ​ $ 386 Corporate ​ - ​ ​ - ​ ​ 1,206 ​ ​ 1,206 Asset-backed securities ​ - ​ ​ 273 ​ ​ (273) ​ ​ - Collateralized loan obligations ​ - ​ ​ 588 ​ ​ 25 ​ ​ 613 Term loans ​ - ​ ​ 8,518 ​ ​ (3,186) ​ ​ 5,332 Mortgage loans on real estate, held for investment ​ - ​ ​ 2,024 ​ ​ (447) ​ ​ 1,577 Other invested asset ​ - ​ ​ 1,703 ​ ​ (103) ​ ​ 1,600 Total allowance $ - ​ $ 16,670 ​ $ (5,956) ​ $ 10,714 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In Thousands) ​ Balance June 30, 2023 ​ Additional Allowance Recognized Due to Adoption of Accounting Guidance ​ Credit Loss Expense for the Current Period ​ Balance September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities $ 1,035 ​ $ - ​ $ (649) ​ $ 386 Corporate ​ 1,297 ​ ​ - ​ ​ (91) ​ ​ 1,206 Asset-backed securities ​ - ​ ​ - ​ ​ - ​ ​ - Collateralized loan obligations ​ 480 ​ ​ - ​ ​ 133 ​ ​ 613 Term loans ​ 6,104 ​ ​ - ​ ​ (772) ​ ​ 5,332 Mortgage loans on real estate, held for investment ​ 1,493 ​ ​ - ​ ​ 84 ​ ​ 1,577 Other invested asset ​ 1,343 ​ ​ - ​ ​ 257 ​ ​ 1,600 Total allowance $ 11,752 ​ $ - ​ $ (1,038) ​ $ 10,714 ​ The following table shows the distribution of the credit ratings of our portfolio of fixed maturity securities by carrying value as of September 30, 2023 and December 31, 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 ​ ​ Carrying ​ ​ ​ Carrying ​ ​ (In thousands) Value Percent Value Percent AAA and U.S. Government ​ $ 230,903 14.0 % $ 124,183 10.2 % AA ​ 19,363 1.2 ​ 815 0.1 ​ A ​ 411,517 25.0 ​ 371,371 30.6 ​ BBB ​ 814,049 49.6 ​ 619,516 51.0 ​ Total investment grade ​ 1,475,832 89.8 ​ 1,115,885 91.9 ​ BB and below ​ 168,000 10.2 ​ 98,750 8.1 ​ Total ​ $ 1,643,832 100.0 % $ 1,214,635 100.0 % ​ Reflecting the quality of fixed maturities maintained by us, as of September 30, 2023 and December 31, 2022, 89.8% 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 September 30, 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ - ​ $ - - ​ $ 1,135 ​ $ (70) 13 Mortgage-backed securities ​ 250,705 ​ (8,878) 82 ​ 233,624 ​ (18,464) 89 Asset-backed securities ​ ​ 7,576 ​ ​ (311) ​ ​ 6 ​ ​ 24,552 ​ ​ (3,278) ​ ​ 23 Collateralized loan obligations ​ ​ 35,221 ​ ​ (740) ​ ​ 24 ​ ​ 203,549 ​ ​ (16,730) ​ ​ 252 States and political subdivisions-general obligations ​ ​ - ​ ​ - ​ ​ - ​ ​ 101 ​ ​ (3) ​ ​ 1 States and political subdivisions-special revenue ​ - ​ ​ - - ​ 47 ​ ​ (2) 3 Corporate ​ 30,732 ​ (419) 16 ​ 37,286 ​ (5,426) 64 Term loans ​ ​ 689,833 ​ ​ (12,052) ​ ​ - ​ ​ 558,337 ​ ​ (4,607) ​ ​ 36 Greater than 12 months: ​ ​ ​ ​ U.S. government obligations ​ 1,149 ​ (64) 9 ​ 126 ​ (11) 5 Asset-backed securities ​ ​ 25,030 ​ (2,520) 25 ​ 5,321 ​ (711) 7 Collateralized loan obligations ​ 175,805 ​ (11,621) 246 ​ 37,814 ​ (5,194) 47 States and political subdivisions-special revenue ​ ​ 124 ​ ​ (4) ​ ​ 2 ​ ​ 158 ​ ​ (21) ​ ​ 7 Mortgage-backed securities ​ ​ 143,544 ​ ​ (33,168) ​ ​ 91 ​ ​ 17,985 ​ ​ (4,044) ​ ​ 14 Corporate ​ 20,952 ​ ​ (4,867) 52 ​ 376 ​ ​ (89) 7 Total fixed maturities ​ $ 1,380,671 ​ $ (74,644) 553 ​ $ 1,120,411 ​ $ (58,650) 568 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Our securities positions resulted in a gross unrealized loss position as of September 30, 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 September 30, 2023, which are driven largely by increasing interest rates, spread widening, financial market illiquidity and/or market volatility, as temporary. As of September 30, 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 September 30, 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 8 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 September 30, 2023, the Company owned several leases, all of which were performing. No impairment was required as of September 30, 2023. ​ The amortized cost and estimated fair value of fixed maturities as of September 30, 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 ​ $ 199,892 ​ $ 195,433 Due after one year through five years ​ 879,623 ​ 860,178 Due after five years through ten years ​ 433,369 ​ 401,992 Due after ten years through twenty years ​ ​ 162,978 ​ ​ 152,915 Due after twenty years ​ ​ 42,059 ​ ​ 33,314 ​ ​ $ 1,717,921 ​ $ 1,643,832 ​ The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At September 30, 2023 and December 31, 2022, these required deposits had a total amortized cost of $1.7 million and $1.2 million, respectively, and fair values of $1.7 million and $1.0 million, respectively. Mortgage loans consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ September 30, 2023 ​ ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ 1-4 Family ​ $ 59,820 ​ $ 59,579 Hospitality ​ ​ 6,385 ​ ​ 12,902 Land ​ ​ 66,743 ​ ​ 62,119 Multifamily (5+) ​ ​ 107,330 ​ ​ 34,072 Retail ​ ​ 48,182 ​ ​ 22,119 Other ​ ​ 134,349 ​ ​ 36,256 Allowance for credit loss ​ ​ (1,577) ​ ​ - Total mortgage loans ​ $ 421,232 ​ $ 227,047 ​ Geographic Location: As of September 30, 2023, the commercial mortgages loans were secured by properties geographically dispersed (with the largest concentrations in loans secured by properties in New York (22%), New Zealand (16%), New Jersey (14%), Florida (8%), and California (5%)). 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 September 30, 2023, the Company held one asset valued at $7.7 million with an 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) September 30, 2023 ​ December 31, 2022 Loan-to-Value Ratio: ​ ​ ​ ​ ​ 0%-59.99% $ 285,205 ​ $ 108,281 60%-69.99% ​ 85,990 ​ ​ 79,968 70%-79.99% ​ 35,536 ​ ​ 33,268 80% or greater ​ 14,501 ​ ​ 5,530 Total mortgage loans $ 421,232 ​ $ 227,047 ​ The components of net investment income for three and nine months ended September 30, 2023 and 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, (In thousands) 2023 2022 2023 2022 Fixed maturities ​ $ 47,552 ​ $ 21,466 ​ $ 115,452 ​ $ 69,699 Mortgage loans ​ ​ 7,636 ​ ​ 1,627 ​ ​ 20,610 ​ ​ 11,265 Other invested assets ​ ​ 4,654 ​ ​ 334 ​ ​ 10,117 ​ ​ 6,157 Other interest income ​ 8,179 ​ 11,158 ​ 26,457 ​ 27,222 Gross investment income ​ 68,021 ​ 34,585 ​ 172,636 ​ 114,343 Less: investment expenses ​ (9,447) ​ (3,911) ​ (20,711) ​ (25,273) Less: amounts ceded to reinsurers ​ ​ (37,778) ​ ​ (17,736) ​ ​ (87,688) ​ ​ (59,349) Investment income, net of expenses ​ $ 20,796 ​ $ 12,938 ​ $ 64,237 ​ $ 29,721 ​ Proceeds for the three months ended September 30, 2023 and 2022 from sales of investments classified as available-for-sale were $15.0 million, and $94 million, respectively. Proceeds for the nine months ended September 30, 2023 and 2022 from sales of investments classified as available-for-sale were $28.0 million, and $187.6 million, respectively. The proceeds included those assets associated with the third-party reinsurers. Gross gains of $0.6 million and $0.1 million and gross losses of less than $0.1 million and $1.2 million were realized on sales and the realized losses on sales during the three months ended September 30, 2023 and 2022, respectively. Gross gains of $0.9 million and $1.5 million and gross losses of less than $0.1 million and $1.7 million were realized on sales and the realized losses on sales during the nine months ended September 30, 2023 and 2022, respectively. Unrealized gain/(loss) included as part of net investment income were losses of $(14.2) million and gains of $10.5 million for the three months ended September 30, 2023 and 2022. Unrealized gain/loss included as part of net investment income were losses of $16.6 million and gains of $16.8 million for the nine months ended September 30, 2023 and 2022. The gains and losses relate only to the assets retained by American Life.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2023
Derivative Instruments
Derivative Instruments	Note 4. 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 derivatives not designated as hedges and embedded derivatives in our FIA product as of September 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 $ 984,622 ​ 705 ​ $ 26,954 ​ $ 831,657 ​ 595 ​ $ 15,592 Equity-indexed embedded derivatives ​ Deposit-type ​ 936,754 ​ 7,807 ​ ​ 146,143 ​ ​ 782,997 ​ 6,131 ​ ​ 111,618 ​ ​ ​ At September 30, 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 September 30, 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 September 30, 2023 were $12.3 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ 169,677 ​ $ 161,920 ​ $ 7,757 ​ $ 150,413 ​ $ 143,952 ​ $ 6,461 Crestline Re SP1 ​ ​ 448,450 ​ ​ 450,908 ​ ​ (2,458) ​ ​ 354,806 ​ ​ 356,374 ​ ​ (1,568) Ironbound ​ ​ 160,688 ​ ​ 154,966 ​ ​ 5,722 ​ ​ 159,644 ​ ​ 154,477 ​ ​ 5,167 Ascendent Re ​ ​ 65,615 ​ ​ 63,998 ​ ​ 1,617 ​ ​ 56,064 ​ ​ 54,790 ​ ​ 1,274 SRC4 ​ ​ 213,013 ​ ​ 213,366 ​ ​ (353) ​ ​ 61,646 ​ ​ 62,516 ​ ​ (870) Total ​ $ 1,057,443 ​ $ 1,045,158 ​ $ 12,285 ​ $ 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 $12.3 million as of September 30, 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 $1.8 million and a gain in the embedded derivative of $14.6 million for the nine months ended September 30, 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	9 Months Ended
	Sep. 30, 2023
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 5. 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 and 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 September 30, 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 September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturity securities: ​ ​ ​ ​ ​ ​ ​ Bonds ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government obligations ​ $ - ​ $ 1,905 ​ $ - ​ $ - ​ $ 1,905 Mortgage-backed securities ​ ​ - ​ ​ 482,324 ​ ​ - ​ ​ - ​ ​ 482,324 Asset-backed securities ​ ​ - ​ ​ 36,374 ​ ​ - ​ ​ - ​ ​ 36,374 Collateralized loan obligations ​ ​ - ​ ​ 376,724 ​ ​ - ​ ​ - ​ ​ 376,724 States and political subdivisions-general obligations ​ - ​ 124 ​ - ​ - ​ 124 States and political subdivisions-special revenue ​ - ​ - ​ - ​ - ​ - Corporate ​ - ​ 61,784 ​ - ​ - ​ 61,784 Term loans ​ ​ - ​ ​ - ​ 684,597 ​ ​ - ​ 684,597 Total fixed maturity securities ​ ​ - ​ ​ 959,235 ​ ​ 684,597 ​ ​ - ​ ​ 1,643,832 Mortgage loans on real estate, held for investment ​ ​ - ​ ​ - ​ ​ 421,232 ​ ​ - ​ ​ 421,232 Derivatives ​ ​ - ​ ​ 26,559 ​ ​ - ​ ​ - ​ ​ 26,559 Equity securities ​ ​ - ​ ​ 5,112 ​ ​ - ​ ​ - ​ ​ 5,112 Other invested assets ​ ​ - ​ ​ - ​ ​ 114,013 ​ ​ 12,764 ​ ​ 126,777 Preferred stock ​ ​ - ​ ​ 10,940 ​ ​ 22,986 ​ ​ - ​ ​ 33,926 Deposits and notes receivable ​ ​ - ​ ​ 7,768 ​ ​ 3,006 ​ ​ - ​ ​ 10,774 Policy loans ​ ​ - ​ ​ - ​ ​ 83 ​ ​ - ​ 83 Total investments ​ $ - ​ $ 1,009,614 ​ $ 1,245,917 ​ $ 12,764 ​ $ 2,268,295 Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded derivative for equity-indexed contracts ​ $ — ​ $ — ​ $ 146,143 ​ $ — ​ ​ 146,143 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 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 nine months ended September 30, 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 September 30, 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 September 30, 2023 and December 31, 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ 83 ​ $ — ​ $ — ​ $ 83 ​ $ 83 Cash ​ 197,804 ​ 197,804 ​ — ​ — ​ 197,804 Liabilities: ​ ​ ​ ​ ​ Policyholder deposits (deposit-type contracts) ​ 2,453,282 ​ — ​ — ​ 2,453,282 ​ 2,453,282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 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 nine months ended September 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ - ​ $ (12,054) ​ $ 137,679 ​ $ 684,597 Mortgage loans on real estate, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ held for investment ​ ​ 227,047 ​ ​ - ​ ​ - ​ ​ 194,185 ​ ​ 421,232 Deposits and notes receivable ​ ​ 1,306 ​ ​ - ​ ​ - ​ ​ 1,700 ​ ​ 3,006 Other invested assets ​ ​ 99,997 ​ ​ - ​ ​ 1,681 ​ ​ 12,335 ​ ​ 114,013 Preferred stock ​ ​ 21,871 ​ ​ (4,874) ​ ​ - ​ ​ 5,989 ​ ​ 22,986 Policy loans ​ ​ 25 ​ ​ - ​ ​ - ​ ​ 58 ​ ​ 83 Total level 3 assets ​ $ 909,218 ​ $ (4,874) ​ $ (10,373) ​ $ 351,946 ​ $ 1,245,917 Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded derivative for equity-indexed contracts ​ ​ (111,618) ​ ​ 33,170 ​ ​ - ​ ​ (67,695) ​ ​ (146,143) Total level 3 liabilities ​ $ (111,618) ​ $ 33,170 ​ $ - ​ $ (67,695) ​ $ (146,143) ​ ​ 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $684.6 ​ Yield Analysis ​ Discount rates ​ 4.6% ​ 17.3% ​ 12.4% ​ Decrease Mortgage loans on real estate ​ $421.2 ​ Yield Analysis ​ Principal funded ​ NA ​ NA ​ NA ​ Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives ​ $146.1 ​ Option Budget Method ​ Nonperformance risk ​ 0.6% ​ 1.5% ​ 1.1% ​ Decrease ​ ​ ​ ​ ​ ​ Option budget ​ 1.1% ​ 5.9% ​ 2.9% ​ Increase ​ ​ ​ ​ ​ ​ Surrender rate ​ 0.5% ​ 15% (base) ​ 12.5% ​ Decrease Other invested assets ​ $114.0 ​ Market Approach ​ EBITDA Multiples ​ 2.6x ​ 3.1x ​ 2.8x ​ NA ​ ​ ​ ​ ​ ​ Discount rates ​ 8.0% ​ 25.5% ​ 14.5% ​ NA Preferred stock ​ $9.8 ​ Yield Analysis ​ Discount rates ​ 24.0% ​ 28.0% ​ 26.0% ​ Increase Detachable warrants ​ $2.5 ​ Market Approach GPCM ​ EBITDA Multiples ​ 10.0x ​ 11.5x ​ 100.0% ​ Decrease Preferred stock ​ $10.7 ​ 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	9 Months Ended
	Sep. 30, 2023
Deposit-Type Contracts
Deposit-Type Contracts	Note 6. 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 nine months ended September 30, 2023 and the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Beginning balance ​ $ 1,743,348 ​ $ 1,075,439 US Alliance ​ (452) ​ (2,176) Unified Life Insurance Company ​ ​ (129) ​ ​ (10) Ironbound Reinsurance Company Limited ​ 4,748 ​ 5,959 Ascendant Re ​ ​ 149 ​ ​ (3,185) Crestline SP1 ​ ​ 4,402 ​ ​ (11,623) American Republic Insurance Company ​ ​ 2,523 ​ ​ (4,080) SRC4 ​ ​ 5,475 ​ ​ 613 Deposits received ​ 755,213 ​ 745,083 Investment earnings (includes embedded derivative) ​ 33,170 ​ (10,193) Withdrawals ​ (95,165) ​ (51,659) Policy charges ​ ​ - ​ ​ (820) Ending balance ​ $ 2,453,282 ​ $ 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 September 30, 2023 and December 31, 2022 funding agreements of $68.0 million and $29.0 million were outstanding.

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt
Debt	Note 7. 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 September 30, 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 September 30, 2023 and 2022 was $0.7 million and $0.0 million respectively. Interest paid for the nine months ended September 30, 2023 and 2022 was $1.7 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	9 Months Ended
	Sep. 30, 2023
Reinsurance
Reinsurance	Note 8. Reinsurance A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of September 30, 2023 and December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Assets: ​ ​ Reinsurance recoverables ​ $ 27,870 ​ $ 20,190 Liabilities: ​ ​ ​ ​ ​ ​ Deposit-type contracts ​ ​ ​ ​ ​ ​ Direct ​ $ 2,453,282 ​ $ 1,743,348 Reinsurance ceded ​ ​ (1,157,854) ​ ​ (912,982) Retained deposit-type contracts ​ $ 1,295,428 ​ $ 830,366 ​ ​ ​ The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third-party reinsurers as of September 30, 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 ​ $ - ​ $ - ​ $ 1,327 ​ $ - ​ $ 1,327 Optimum Re Insurance Company ​ A ​ ​ - ​ ​ - ​ ​ 690 ​ ​ - ​ ​ 690 Sagicor Life Insurance Company ​ A- ​ - ​ 299 ​ 10,006 ​ (15) ​ 10,290 Ascendant Re ​ ​ NR ​ ​ - ​ ​ - ​ ​ (4,724) ​ ​ - ​ ​ (4,724) Crestline SP1 ​ ​ NR ​ ​ - ​ ​ - ​ ​ (9,907) ​ ​ - ​ ​ (9,907) American Republic Insurance Company ​ ​ A ​ ​ - ​ ​ - ​ ​ 6,057 ​ ​ - ​ ​ 6,057 SRC4 ​ ​ NR ​ ​ - ​ ​ - ​ ​ (26,407) ​ ​ - ​ ​ (26,407) Unified Life Insurance Company ​ ​ NR ​ ​ - ​ ​ 25 ​ ​ 772 ​ ​ (14) ​ ​ 783 US Alliance Life and Security Company ​ NR ​ - ​ - ​ 49,784 ​ (23) ​ 49,761 ​ ​ ​ ​ ​ $ - ​ $ 324 ​ $ 27,598 ​ $ (52) ​ $ 27,870 ​ ​ ​ 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 loss position as of September 30, 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 gains 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 4. 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 was executed on June 29, 2021. Under the Modco AEG Agreement, American Life initially ceded to AEG (and subsequently renewed), 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 Modco AEG 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 again amended to provide one-time reinsurance funding for $10.0 million of the liabilities of American Life arising from its 10-year FIA products. On September 21, 2022, the NDOI issued its approval 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. and Tillman Networks LLC. The Reinsurance Agreement was effective as of July 1, 2022, by and between American Life and SRC4. 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 initially 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 and nine months ended September 30, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, (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 ​ $ — ​ $ — ​ $ — ​ $ 2 ​ $ - ​ $ - ​ $ - $ ​ 6 Ironbound Reinsurance Company Limited ​ ​ — ​ ​ — ​ ​ 45 ​ ​ 121 ​ ​ - ​ ​ - ​ ​ 48 ​ ​ 123 Ascendant Re ​ ​ 43 ​ ​ 42 ​ ​ 25 ​ ​ 101 ​ ​ - ​ ​ - ​ ​ 23 ​ ​ 88 US Alliance Life and Security Company ​ ​ — ​ ​ — ​ ​ 12 ​ ​ 93 ​ ​ - ​ ​ - ​ ​ 13 ​ ​ 96 Crestline Re SP 1 ​ ​ 492 ​ ​ 475 ​ ​ 146 ​ ​ 846 ​ ​ 1,972 ​ ​ 2,794 ​ ​ 103 ​ ​ 604 American Republic Insurance Company ​ ​ — ​ ​ (132) ​ ​ 52 ​ ​ 294 ​ ​ 1,144 ​ ​ 1,631 ​ ​ 38 ​ ​ 242 SRC4 ​ ​ 849 ​ ​ 822 ​ ​ 78 ​ ​ (65) ​ ​ 878 ​ ​ 784 ​ ​ 5 ​ ​ 80 ​ ​ $ 1,384 ​ $ 1,207 ​ $ 358 ​ $ 1,392 ​ $ 3,994 ​ $ 5,209 ​ $ 230 ​ $ 1,239 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, (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 ​ $ — ​ $ — ​ $ — ​ $ 14 ​ $ — ​ $ — ​ $ — ​ $ 20 Ironbound Reinsurance Company Limited ​ ​ — ​ ​ — ​ ​ 138 ​ ​ 374 ​ ​ — ​ ​ — ​ ​ 146 ​ ​ 381 Ascendant Re ​ ​ 224 ​ ​ 217 ​ ​ 71 ​ ​ 287 ​ ​ — ​ ​ — ​ ​ 70 ​ ​ 250 US Alliance Life and Security Company ​ ​ — ​ ​ — ​ ​ 37 ​ ​ 249 ​ ​ — ​ ​ — ​ ​ 41 ​ ​ 259 Crestline SP1 ​ ​ 2,298 ​ ​ 2,106 ​ ​ 418 ​ ​ 2,486 ​ ​ 4,497 ​ ​ 7,026 ​ ​ 271 ​ ​ 1,669 American Republic Insurance Company ​ ​ 560 ​ ​ 621 ​ ​ 158 ​ ​ 856 ​ ​ 2,971 ​ ​ 4,859 ​ ​ 90 ​ ​ 592 SRC4 ​ ​ 4,730 ​ ​ 4,436 ​ ​ 164 ​ ​ 197 ​ ​ 878 ​ ​ 783 ​ ​ 5 ​ ​ 80 ​ ​ $ 7,812 ​ $ 7,380 ​ $ 986 ​ $ 4,463 ​ $ 8,346 ​ $ 12,668 ​ $ 623 ​ $ 3,251 ​ (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) ​ September 30, 2023 ​ December 31, 2022 Reinsurer Deferred Gain on Reinsurance Transactions ​ Deferred Gain on Reinsurance Transactions US Alliance Life and Security Company (1) $ - ​ $ 152 Unified Life Insurance Company (1) ​ 249 ​ ​ 217 Ironbound Reinsurance Company Limited (2) ​ ​ 4,750 ​ ​ 4,876 Ascendant Re ​ 3,096 ​ ​ 2,947 US Alliance Life and Security Company (2) ​ ​ 1,961 ​ ​ 2,069 American Republic Insurance Company (2) ​ ​ 7,400 ​ ​ 7,502 Crestline SP1 (2) ​ ​ 19,488 ​ ​ 18,475 SRC4 (2) ​ ​ 7,196 ​ ​ 1,825 ​ ​ $ 44,140 ​ $ 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 September 30, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Retained ​ Reinsured ​ Consolidated ​ Retained ​ Reinsured ​ Consolidated Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments ​ $ 1,212,973 ​ $ 1,055,322 ​ $ 2,268,295 ​ $ 812,177 ​ $ 802,780 ​ $ 1,614,957 Cash and cash equivalents ​ ​ 111,119 ​ ​ 86,685 ​ ​ 197,804 ​ ​ 127,291 ​ ​ 64,123 ​ ​ 191,414 Deferred acquisition costs, net ​ ​ 69,470 ​ ​ - ​ ​ 69,470 ​ ​ 43,433 ​ ​ - ​ ​ 43,433 Premiums receivable ​ ​ - ​ ​ 63 ​ ​ 63 ​ ​ - ​ ​ - ​ ​ - Accrued investment income ​ ​ 18,835 ​ ​ 25,859 ​ ​ 44,694 ​ ​ 11,307 ​ ​ 13,858 ​ ​ 25,165 Reinsurance recoverables ​ ​ (8,944) ​ ​ 36,814 ​ ​ 27,870 ​ ​ (6,853) ​ ​ 27,405 ​ ​ 20,552 Property and equipment, net ​ ​ 1,721 ​ ​ - ​ ​ 1,721 ​ ​ 1,897 ​ ​ - ​ ​ 1,897 Receivable for securities sold ​ ​ (9,650) ​ ​ 9,650 ​ ​ - ​ ​ 2,033 ​ ​ 8,485 ​ ​ 10,518 Other assets ​ ​ 12,760 ​ ​ 1,575 ​ ​ 14,335 ​ ​ 12,259 ​ ​ 236 ​ ​ 12,495 Total assets ​ $ 1,408,284 ​ $ 1,215,968 ​ $ 2,624,252 ​ $ 1,003,544 ​ $ 916,887 ​ $ 1,920,431 Liabilities and Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit reserves ​ $ 526 ​ $ 11,006 ​ $ 11,532 ​ $ 1,332 ​ $ 11,613 ​ $ 12,945 Deposit-type contracts ​ ​ 1,301,754 ​ ​ 1,151,528 ​ ​ 2,453,282 ​ ​ 841,980 ​ ​ 901,368 ​ ​ 1,743,348 Other policy-holder funds ​ ​ 4,219 ​ ​ 311 ​ ​ 4,530 ​ ​ 4,105 ​ ​ - ​ ​ 4,105 Notes payable ​ ​ 25,000 ​ ​ - ​ ​ 25,000 ​ ​ 25,000 ​ ​ - ​ ​ 25,000 Deferred gain on coinsurance transactions ​ ​ 416 ​ ​ 43,724 ​ ​ 44,140 ​ ​ 38,063 ​ ​ - ​ ​ 38,063 Payable for securities sold ​ ​ 27,029 ​ ​ - ​ ​ 27,029 ​ ​ 8,872 ​ ​ - ​ ​ 8,872 Other liabilities ​ ​ 27,387 ​ ​ 9,399 ​ ​ 36,786 ​ ​ 49,815 ​ ​ 3,906 ​ ​ 53,721 Total liabilities ​ $ 1,386,331 ​ $ 1,215,968 ​ $ 2,602,299 ​ $ 969,167 ​ $ 916,887 ​ $ 1,886,054 Stockholders’ Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred stock ​ $ - ​ $ - ​ $ - ​ $ - ​ $ - ​ $ - Voting common stock ​ ​ 4 ​ ​ - ​ ​ 4 ​ ​ 4 ​ ​ - ​ ​ 4 Additional paid-in capital ​ ​ 138,122 ​ ​ - ​ ​ 138,122 ​ ​ 138,482 ​ ​ - ​ ​ 138,482 Treasury stock ​ ​ (175) ​ ​ - ​ ​ (175) ​ ​ (175) ​ ​ - ​ ​ (175) Accumulated deficit ​ ​ (67,361) ​ ​ - ​ ​ (67,361) ​ ​ (63,019) ​ ​ - ​ ​ (63,019) Accumulated other comprehensive loss ​ ​ (66,886) ​ ​ - ​ ​ (66,886) ​ ​ (51,386) ​ ​ - ​ ​ (51,386) Total Midwest Holding Inc.'s stockholders' equity ​ $ 3,704 ​ $ - ​ $ 3,704 ​ $ 23,906 ​ $ - ​ $ 23,906 Noncontrolling interest ​ ​ 18,249 ​ ​ - ​ ​ 18,249 ​ ​ 10,471 ​ ​ - ​ ​ 10,471 Total stockholders' equity ​ ​ 21,953 ​ ​ - ​ ​ 21,953 ​ ​ 34,377 ​ ​ - ​ ​ 34,377 Total liabilities and stockholders' equity ​ $ 1,408,284 ​ $ 1,215,968 ​ $ 2,624,252 ​ $ 1,003,544 ​ $ 916,887 ​ $ 1,920,431 ​

Income Tax Matters

Income Tax Matters	9 Months Ended
	Sep. 30, 2023
Income Tax Matters
Income Tax Matters	Note 9. Income Tax Matters Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2023 and December 31, 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Deferred tax assets: ​ ​ Loss carryforwards ​ $ 4,146 ​ $ 2,672 Capitalized costs ​ 44 ​ 79 Stock option granted ​ ​ 1,190 ​ ​ 1,066 Policy acquisition costs ​ ​ 9,803 ​ ​ 6,489 General business credits ​ ​ 6 ​ ​ 6 Derivative option allowance ​ ​ - ​ ​ - Sec 163(j) limitation ​ ​ 171 ​ ​ 171 Benefit reserves ​ 17,189 ​ 12,010 Impairments ​ ​ 535 ​ ​ 403 Unrealized losses on investments ​ ​ 17,780 ​ ​ 13,624 Other ​ ​ 1,928 ​ ​ 1,928 Total deferred tax assets ​ 52,792 ​ 38,448 Less valuation allowance ​ (46,138) ​ (35,305) Total deferred tax assets, net of valuation allowance ​ 6,654 ​ 3,143 Deferred tax liabilities: ​ ​ Unrealized losses on investments ​ - ​ - Due premiums ​ - ​ - Intangible assets ​ 147 ​ 147 Derivative option allowance ​ 4,246 ​ 2,150 Bond Discount ​ ​ 2,400 ​ ​ 936 Property and equipment ​ (139) ​ (90) Total deferred tax liabilities ​ 6,654 ​ 3,143 Net deferred tax assets ​ $ - ​ $ - ​ At September 30, 2023 and December 31, 2022, the Company recorded a valuation allowance of $46.1 million 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 $4.6 million and $1.3 million for the three months ended September 30, 2023 and 2022. and $10.5 million and $3.8 million of tax expense for the nine months ended September 30, 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 September 30, ​ Nine months ended September 30, (In thousands) 2023 2022 2023 2022 Computed expected income tax benefit (expense) ​ $ (1,564) ​ $ (796) ​ $ (3,921) ​ $ (2,305) Reduction (increase) in income taxes resulting from: ​ ​ ​ ​ ​ ​ ​ Interest maintenance reserve and reinsurance ​ ​ (47) ​ ​ 176 ​ ​ 4 ​ ​ 158 Nondeductible expenses ​ ​ (3) ​ ​ (3) ​ ​ (9) ​ ​ (8) Change in valuation allowance ​ (2,896) ​ (641) ​ (6,677) ​ ​ (1,693) Deferred tax adjustment ​ ​ - ​ ​ 14 ​ ​ - ​ ​ - AETR adjustment ​ ​ (19) ​ ​ - ​ ​ (19) ​ ​ - Prior year true-up ​ ​ (77) ​ ​ - ​ ​ 140 ​ ​ - Subtotal of (increases) decreases ​ (3,042) ​ (454) ​ (6,561) ​ (1,543) Tax (benefit) expense ​ $ (4,606) ​ $ (1,250) ​ $ (10,482) ​ $ (3,848) ​ 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 September 30, 2023, the deferred tax assets included the expected tax benefit attributable to federal NOLs of $10.6 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 $0.9 million prior to 2017 will expire through the year of 2032. ​ The NOLs generated by SRC1 prior to December 30, 2021 of less than $3.6 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 $2.2 million on the deferred tax assets related to these federal NOL carryforwards.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
Leases
Leases	Note 10. Leases Our operating lease activities consist of leases for office space and equipment and do not include variable lease payments. The right of use assets and lease liabilities generated by our lease agreements are included in on the Consolidated Balance Sheets in the Other Assets and Other Liabilities categories, respectively. Supplemental balance sheet information for our leases as of September 30, 2023 and December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) Classification September 30, 2023 December 31, 2022 Assets ​ ​ Operating Operating lease right-of-use assets ​ $ 1,997 ​ $ 2,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ Operating lease Operating lease liabilities ​ $ 2,005 ​ $ 2,135 ​ Our operating lease expense for the three and nine months ended September 30, 2023 and 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, (In thousands) Classification 2023 2022 2023 2022 Operating General and administrative expense ​ $ 3 ​ $ 3 ​ $ 10 ​ $ 10 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Minimum contractual obligations for our leases as of September 30, 2023 are as follows: ​ ​ ​ ​ ​ (In thousands) Operating Leases 2023 ​ $ 112 2024 ​ 378 2025 ​ 342 2026 ​ ​ 345 2027 ​ ​ 353 2028 ​ ​ 362 2029 and after ​ ​ 1,041 Total remaining lease payments ​ $ 2,933 ​ The cash flows related to the operating lease were less than $0.1 million for both the three and the nine months ended September 30, 2023 and 2022. ​ The weighted average remaining lease terms of our operating leases were approximately eight-and-one-half years

Equity

Equity	9 Months Ended
	Sep. 30, 2023
Equity
Equity	Note 11. Equity Preferred stock As of September 30, 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 September 30, 2023 and December 31, 2022, Midwest had 3,744,645 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 12 – 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 ​ ​ (16,167) Less: Reclassification adjustments for losses realized in net income, net of tax ​ ​ 667 Balance, September 30, 2023 ​ $ (66,886) ​

Long-Term Incentive Plans

Long-Term Incentive Plans	9 Months Ended
	Sep. 30, 2023
Long-Term Incentive Plans
Long-Term Incentive Plans	Note 12. 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 $ 32.19 $ 11.20 - 55.02 ​ 319,121 ​ 271,517 ​ 47,604 Granted ​ 17.12 ​ 17.20 ​ 5,750 ​ 5,750 ​ - Prior year adjustment ​ 39.16 ​ 16.37 - 55.02 ​ - ​ (7,390) ​ 7,390 Vested ​ - ​ - ​ - ​ - ​ - Exercised ​ - ​ - ​ - ​ - ​ - Forfeited ​ 46.92 ​ 25.00 - 55.02 ​ (19,267) ​ (19,267) ​ - Expired ​ - ​ - ​ - ​ - ​ - September 30, 2023 $ 30.90 $ 11.20 - 55.02 ​ 305,604 ​ 250,610 ​ 54,994 ​ Option information segregated by ranges of exercise prices were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 35,853 $ 55.02 7.60 ​ 6,390 $ 55.02 7.33 $40.00 - $49.99 127,751 ​ 41.25 7.69 ​ 36,042 ​ 41.25 7.33 $30.00 - $39.99 - ​ - - ​ - ​ - - $20.00 - $29.99 23,600 ​ 23.36 7.54 ​ 5,877 ​ 25.00 7.04 $10.00 - $19.99 115,000 ​ 13.43 9.00 ​ 4,285 ​ 16.37 7.33 < $10.00 - $ - - ​ - $ - - ​ The weighted average exercise prices of vested and exercisable options as of September 30, 2023, were $39.16. ​ As of September 30, 2023, based on a closing stock price of $26.15 per share, the aggregate intrinsic (in-the-money) values of vested options and all options outstanding were less than $0.1 million and $1.6 million, respectively. ​ Restricted Stock and Restricted Stock Units ​ In 2020, the Company awarded 18,597 shares of restricted stock, with a grant date fair value of $41.25 per share and 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, although 2,674 of those RSUs were forfeited by former MHI director Douglas Bratton when he left the Board in September 2022. The remaining 16,044 RSUs vested on June 6, 2023 in conjunction with our annual stockholders meeting. The compensation expense relating to these awards was calculated using the grant date fair value and was amortized on a straight-line basis over the requisite service periods. ​ On June 6, 2023, the Company granted 6,984 RSUs to our non-employee directors with a grant date fair value of $25.70 per share. By their terms, the RSUs will vest on the earlier of June 6, 2024 or the date of our 2024 annual stockholders meeting, although they are also subject to accelerated vesting in connection with the transaction described in Note 18. The compensation expense relating to these awards was calculated using the grant date fair value and will be amortized on a straight-line basis over the requisite service period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 6,984 ​ 25.76 ​ - ​ - Vested ​ - ​ - ​ - ​ - Forfeited ​ - ​ - ​ - ​ - Released ​ (16,044) ​ 11.22 ​ - ​ - September 30, 2023 ​ 8,147 $ 22.08 ​ 1,163 $ 50.00 ​ The table below identifies the assumptions used in the Black Scholes Model to calculate the compensation expense for options granted during the nine months ended September 30, 2023 and the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2023 ​ 2022 Volatility ​ 287.3% ​ 4.16% - 4.26% Weighted-average volatility ​ 287.3% ​ 3.7% Expected term (in years) ​ 6.54 yrs ​ 2 - 7 Risk-free rate ​ 3.57% ​ 0.02% - 2.15% ​ For the three months ended September 30, 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 $0.1 million and negative $(0.7) million, respectively. For the nine months ended September 30, 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 $0.7 million and negative $(0.3) million, respectively. ​ The tables below shows the remaining non-vested shares under the 2019 and 2020 Plans as of September 30, 2023 and December 31, 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ 5,750 ​ ​ 16.56 ​ ​ 17.12 Restricted stock units granted ​ 6,984 ​ ​ 16.56 ​ ​ - Vested ​ (23,434) ​ ​ 13.59 ​ ​ 55.02 Forfeited or expired ​ (20,517) ​ ​ 27.99 ​ ​ 46.92 Ending Balance at September 30, 2023 ​ 256,344 ​ $ 16.92 ​ $ 30.90 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 or expired ​ (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	9 Months Ended
	Sep. 30, 2023
Statutory Net Income and Surplus
Statutory Net Income and Surplus	Note 13. 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 September 30, ​ Nine months ended September 30, (In thousands) ​ 2023 2022 ​ 2023 2022 American Life ​ $ 38,395 ​ $ (1,836) ​ $ 3,279 ​ $ 16,055 SRC1 ​ $ (458) ​ $ 1,129 ​ $ 6,853 ​ $ 181 SRC3 ​ $ 745 ​ $ 1,951 ​ $ 1,662 ​ $ 960 ​ 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) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 American Life ​ $ 67,018 ​ $ 69,936 ​ SRC1 ​ $ 14,968 ​ $ 9,615 ​ SRC3 ​ $ 7,983 ​ $ 6,088 ​ 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 September 30, ​ Nine months ended September 30, (In thousands) ​ 2023 2022 ​ 2023 2022 American Life ​ $ 207,689 ​ $ 141,602 ​ $ 438,896 ​ $ 272,218 SRC1 ​ $ - ​ $ - ​ $ - ​ $ - SRC3 ​ $ - ​ $ 174 ​ $ 123 ​ $ 23,931 ​ 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 September 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 2023
Third-party Administration
Third-party Administration	Note 14. 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 September 30, 2023, and December 31, 2022, 1505 Capital had $531.6 million and $501.9 of third-party assets under management, respectively. ​

Policy Administration Fees

Policy Administration Fees	9 Months Ended
	Sep. 30, 2023
Policy Administration Fees
Policy Administration Fees	Note 15. 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 September 30, 2023 and 2022, we received $0.9 million and $0.5 million of fees and for the nine months ended September 30, 2023 and 2022 we received $2.0 million and $1.4 million of fees.

Related Party

Related Party	9 Months Ended
	Sep. 30, 2023
Third-party Administration
Related Party	Note 16. 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 Bratton, a principal of Crestline, was initially 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 a quota share percentage of 40% the liabilities of American Life arising from its FIA products. Through September 30, 2023, American Life had ceded $534.6 million face amount of annuities to Crestline Re SP1. American Life received total ceding commissions of $0.5 million and expense reimbursements of $0.5 million in connection with these transactions for the three months ended September 30, 2023 and commissions of $2.3 million and expense reimbursements of $2.1 million for the nine months ended September 30, 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 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 September 30, 2023, and December 31, 2022, Crestline has approximately $504.4 million and $423.6 of the Company’s assets under management, respectively, and was a subadvisor on approximately $151.6 million and $134.3 million of additional investments as of September 30, 2023 and December 31, 2022, respectively. ​ 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 $6.5 million, and the preferred shares are carried at a fair market value of $1.9 million as of September 30, 2023 and $2.3 million as of December 31, 2022, based upon valuations received from an independent third-party. ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies.
Commitments and Contingencies	Note 17. Commitments and Contingencies Contingent Commitments: ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 ​ December 31, 2022 Due in one year or less $ 83,137 ​ $ 52,951 Due in two years 41,058 ​ 43,604 Due in three years 20,329 ​ 7,731 Due in four years ​ 24,947 ​ ​ 13,277 Due in five years and after ​ 53,569 ​ ​ 61,432 ​ $ 223,040 ​ $ 178,995 ​ Legal Proceedings: ​ Regulatory Matters:

Pending Merger

Pending Merger	9 Months Ended
	Sep. 30, 2023
Pending Merger
Pending Merger	Note 18. Pending Merger On April 30, 2023, Midwest Holding Inc. (the “Company”) 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, subject to the satisfaction (or waiver) of the conditions set forth in the Merger Agreement, 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”) 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 held by stockholders 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 the Vermont Department of Financial Regulation (“DFR”) 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). On May 14, 2023, the DFR granted its approval of the Merger. The transaction was approved by stockholders on July 26, 2023, and has been approved by the Vermont Department of Financial Regulation. The merger is still subject to the approval of the Nebraska Department of Insurance. We continue to work with Antarctica to provide all information requested by the Nebraska Department of Insurance (NDOI). Upon completion of the NDOI review, a public NDOI hearing will be required before final regulatory approval is received to proceed with closing the merger. We still anticipate closing the transaction shortly after the hearing and by year-end.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 25 states and the District of Columbia as of September 30, 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 Certificate 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 September 30, 2023, Seneca Re has three incorporated cells, including Seneca Incorporated Cell, LLC 2020-01 (“SRC1”) and Seneca Incorporated Cell, LLC 2021-03 (“SRC3”), which are consolidated in our financial statements. Additionally, Seneca Incorporated Cell, LLC 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”), an affiliate of Crestline Assurance Holdings LLC, a significant shareholder of Midwest. The Reinsurance Agreement, which was effective as of April 24, 2020, was entered into pursuant to a Master Letter Agreement (the “Master Agreement”) also dated and effective as of April 24, 2020, by and 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 indexed 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. Effective December 8, 2020, American Life entered into a novation agreement with SRC2 and Crestline Re SPC, an exempted segregated portfolio company incorporated under the laws of the Cayman Islands, for and on behalf of Crestline SP1, a segregated portfolio company of Crestline Re SPC, under which the above-described Reinsurance Agreement, as well as the trust and related asset management agreements, were novated and replaced with substantially similar agreements entered into by American Life and Crestline SP1. The Reinsurance Agreement was most recently amended effective in April 2023 to allow Crestline to provide reinsurance funding for a quota share percentage of 20% of the liabilities of American Life arising from its three-year MYGAs, a quota share percentage of 10% of its five-year MYGAs, and a quota share percentage of 0% of the liabilities of American Life arising from its FIAs. The amended agreement limited the total amounts to be reinsured to $550 million. 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 was executed on June 29, 2021. Under the Modco AEG Agreement, American Life initially ceded to AEG (and subsequently renewed), on a modified coinsurance basis, a 20% quota share of certain liabilities with respect to its five-year MYGA 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 both MYGA and FIA policies is 0%. The Modco AEG Agreement remains in place, and AEG remains responsible for previously ceded liabilities. As of November 10, 2021, Midwest formed and purchased 100% of the common stock of an intermediary holding company which immediately purchased 100% of SRC3 Class A and B membership interests. Also dated as of November 10, 2021 but effective as of July 1, 2021, American Life and SRC3 entered into a Funds Withheld and Modified Coinsurance Agreement, whereby SRC3 agreed to provide reinsurance funding for an ongoing 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. The agreement with SRC3 has been amended, most recently in the fourth quarter of 2022, to provide one-time reinsurance funding for a quota share of $10.0 million of the liabilities of American Life arising from its 10-year FIA products. As of 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. and Tillman Networks LLC. The Reinsurance Agreement was effective as of July 1, 2022, by and between American Life and SRC4. 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 initially agreed to provide reinsurance funding for a quota share percentage of 45% of the liabilities of American Life arising from its five-year MYGA products and a quota share percentage of 10% of the liabilities of American Life arising from its three-year MYGA 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 Modco Deposit 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 and nine months ended September 30, 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. on a quarterly basis that may require a credit loss allowance. These reviews, in conjunction with the Company’s investment managers’ reports and relevant factors such as (1) the financial condition and near-term prospects of the issuer; (2) the Company’s intent to sell a fixed maturity or whether it is more likely than not that the Company will be required to sell a fixed maturity before the anticipated recovery in value; (3) the market leadership of the issuer; (4) the debt ratings of the issuer; and (5) the cash flows and liquidity of the issuer or the underlying cash flows, as required for our investment models, are all considered in the impairment assessment. 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, 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 of 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 an 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 September 30, 2023, the Company held one asset valued at $7.7 million with a total impairment of $1.4 million , and another 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 change in fair market values of these futures were recorded on our Consolidated Statements of Comprehensive Loss as realized gains or (losses). Additionally, reinsurance agreements written on an 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 custody accounts are reflected as realized (losses) or gains in the Consolidated Statements of Comprehensive Loss.
Equity Securities	Equity Securities Equity securities at September 30, 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 September 30, 2023, and December 31, 2022 we held $5.1 million of ETFs.
Preferred Stock	Preferred Stock The company holds investments in preferred stock of $33.9 million as of September 30, 2023 and $31.4 million as of December 31, 2022, of which $10.0 million was redeemable at both dates. 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”), acquiring preferred equity and warrants, and later created a special purpose vehicle, Ascona Asset Holding LLC (“AAH”), to hold the preferred equity and warrants, and also 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 $12.3 million as of September 30, 2023 and $10.5 million of December 31, 2022. For the three months ended September 30, 2023, $ (0.7) million of investment income related to ACH was recognized, and $ (0.2) million was attributed to the noncontrolling interest held by Crestline Re SP1. For the three months ended September 30, 2022, $0.2 million of investment income was recognized, and less than $0.1 million was attributed to Crestline Re SP1.
Other Invested Assets	​ Other Invested Assets Other invested assets consists of approximately $126.8 million of various investments. Of this total, approximately $113.7 million are primarily collateral loans, and $13.1 million of private credit and equipment leases. The collateral loans, private credit and equipment leases are carried at fair market value, net of allowance for expected 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 September 30, 2023, was $11.2 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 September 30, 2023, our investment in Python was carried at the net asset value (“NAV”) plus approximately $0.7 million of investment income.
Deposits and notes receivable	Deposits and notes receivable Investment escrow The Company held in escrow $1.3 million and $0.8 million as of September 30, 2023 and December 31, 2022, respectively. The cash held at year end was used to purchase mortgages in October 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 made 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 September 30, 2023, the Company had pledged assets with a market value of $233.5 million to FHLB to allow a borrowing capacity of $212.0 million and $121.1 million pledged as of December 31, 2022 to allow a borrowing capacity of $109.8 million. As of September 30, 2023 we had $68.0 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 $6.5 million and $6.3 million as of September 30, 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 16 – 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) September 30, 2023 ​ December 31, 2022 Beginning balance ​ $ 43,433 ​ $ 24,530 Additions ​ ​ 32,425 ​ ​ 23,857 Amortization ​ ​ (4,369) ​ ​ (3,905) Interest ​ ​ (1,463) ​ ​ (883) Impact of unrealized investment losses ​ ​ (556) ​ ​ (166) Ending balance ​ $ 69,470 ​ $ 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 third quarter of 2023 and determined that all DAC balances were recoverable as of September 30, 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 less than $0.1 million and $0.4 million at September 30, 2023 and December 31, 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 8 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 approximately 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 Seneca Incorporated Cell, LLC 2020-02 (“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 and/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 an 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 September 30, 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 Comprehensive Loss 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 $39.0 million and $29.0 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 $68.0 million as of September 30, 2023, and $29.0 million as of December 31, 2022. Interest on the funding agreements accrues at their effective interest rates. ​ As of September 30, 2023, scheduled maturity dates for outstanding FHLB funding agreements were as follows: ​ ​ ​ ​ ​ ​ ​ ​ (Dollar amounts in thousands) ​ Interest ​ ​ Maturity Date ​ Rate Amount March 1, 2024 ​ ​ 5.540% ​ $ 16,000 January 22, 2025 ​ ​ 5.690% ​ ​ 13,000 January 22, 2025 ​ ​ 5.655% ​ ​ 2,000 August 16, 2025 ​ ​ 5.955% ​ ​ 8,000 September 1, 2027 ​ ​ 5.885% ​ ​ 4,000 September 15, 2027 ​ ​ 5.965% ​ ​ 8,000 October 1, 2027 ​ ​ 5.895% ​ ​ 9,000 December 1, 2027 ​ ​ 5.875% ​ ​ 6,000 December 1, 2027 ​ ​ 5.860% ​ ​ 2,000 ​ ​ ​ ​ ​ $ 68,000
Note Payable	​ ​ ​ ​ ​ ​ ​ ​ (Dollar amounts in thousands) ​ Interest ​ ​ Maturity Date ​ Rate Amount March 1, 2024 ​ ​ 5.540% ​ $ 16,000 January 22, 2025 ​ ​ 5.690% ​ ​ 13,000 January 22, 2025 ​ ​ 5.655% ​ ​ 2,000 August 16, 2025 ​ ​ 5.955% ​ ​ 8,000 September 1, 2027 ​ ​ 5.885% ​ ​ 4,000 September 15, 2027 ​ ​ 5.965% ​ ​ 8,000 October 1, 2027 ​ ​ 5.895% ​ ​ 9,000 December 1, 2027 ​ ​ 5.875% ​ ​ 6,000 December 1, 2027 ​ ​ 5.860% ​ ​ 2,000 ​ ​ ​ ​ ​ $ 68,000
Deferred Gain on Coinsurance Transactions	Deferred Gain on Coinsurance Transactions American Life entered into 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, unrealized gains and losses from other invested assets, and unrealized gains and losses from preferred stock, 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 8 below.
Earnings Per Share	Earnings Per Share Basic income per share for the three months ended September 30, 2023 and 2022 was $0.10 and $1.99 respectively, which includes a loss of $ (2.1) million and a gain of $0.1 million from an embedded derivative, respectively. Basic income per share for the nine months ended September 30, 2023 and 2022 was $0.09 and $4.52 respectively, which includes a gain of $1.8 million and $14.6 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 3,744,645 voting common shares issued December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2023 2022 2023 2022 (In thousands, except per share amounts) ​ ​ Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Midwest Holding Inc. ​ $ 385 ​ $ 7,431 ​ $ 332 ​ $ 16,883 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding ​ ​ 3,738,070 ​ ​ 3,736,933 ​ ​ 3,734,946 ​ ​ 3,791,082 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options and deferred compensation agreements ​ ​ 138,600 ​ ​ 52,000 ​ ​ 138,600 ​ ​ 52,000 Denominator for earnings per common share ​ ​ 3,876,670 ​ ​ 3,788,933 ​ ​ 3,873,546 ​ ​ 3,843,082 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per common share ​ $ 0.10 ​ $ 1.99 ​ $ 0.09 ​ $ 4.52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per common share, diluted ​ $ 0.10 ​ $ 1.96 ​ $ 0.09 ​ $ 4.45
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. an other-than-temporary impairment on a prospective basis. Accordingly, the amortized cost basis will remain the same before and after adoption and the effective interest rate was not changed at the time of adoption. ​ 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)	9 Months Ended
	Sep. 30, 2023
Nature of Operations and Summary of Significant Accounting Policies
Schedule of deferred acquisition costs	​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 ​ December 31, 2022 Beginning balance ​ $ 43,433 ​ $ 24,530 Additions ​ ​ 32,425 ​ ​ 23,857 Amortization ​ ​ (4,369) ​ ​ (3,905) Interest ​ ​ (1,463) ​ ​ (883) Impact of unrealized investment losses ​ ​ (556) ​ ​ (166) Ending balance ​ $ 69,470 ​ $ 43,433
Summary of scheduled maturity dates for outstanding FHLB funding agreements	​ ​ ​ ​ ​ ​ ​ ​ (Dollar amounts in thousands) ​ Interest ​ ​ Maturity Date ​ Rate Amount March 1, 2024 ​ ​ 5.540% ​ $ 16,000 January 22, 2025 ​ ​ 5.690% ​ ​ 13,000 January 22, 2025 ​ ​ 5.655% ​ ​ 2,000 August 16, 2025 ​ ​ 5.955% ​ ​ 8,000 September 1, 2027 ​ ​ 5.885% ​ ​ 4,000 September 15, 2027 ​ ​ 5.965% ​ ​ 8,000 October 1, 2027 ​ ​ 5.895% ​ ​ 9,000 December 1, 2027 ​ ​ 5.875% ​ ​ 6,000 December 1, 2027 ​ ​ 5.860% ​ ​ 2,000 ​ ​ ​ ​ ​ $ 68,000
Schedule of earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, ​ 2023 2022 2023 2022 (In thousands, except per share amounts) ​ ​ Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Midwest Holding Inc. ​ $ 385 ​ $ 7,431 ​ $ 332 ​ $ 16,883 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding ​ ​ 3,738,070 ​ ​ 3,736,933 ​ ​ 3,734,946 ​ ​ 3,791,082 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options and deferred compensation agreements ​ ​ 138,600 ​ ​ 52,000 ​ ​ 138,600 ​ ​ 52,000 Denominator for earnings per common share ​ ​ 3,876,670 ​ ​ 3,788,933 ​ ​ 3,873,546 ​ ​ 3,843,082 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per common share ​ $ 0.10 ​ $ 1.99 ​ $ 0.09 ​ $ 4.52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per common share, diluted ​ $ 0.10 ​ $ 1.96 ​ $ 0.09 ​ $ 4.45

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2023: ​ ​ ​ ​ ​ ​ ​ Fixed maturities: ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government obligations ​ $ 1,448 ​ $ - ​ $ 521 ​ $ (64) ​ $ 1,905 Mortgage-backed securities ​ 522,767 ​ (386) ​ 1,988 ​ (42,045) ​ 482,324 Asset-backed securities ​ ​ 39,121 ​ ​ - ​ ​ 84 ​ ​ (2,831) ​ ​ 36,374 Collateralized loan obligations ​ ​ 385,942 ​ ​ (613) ​ ​ 3,758 ​ ​ (12,363) ​ ​ 376,724 States and political subdivisions-general obligations ​ 128 ​ - ​ - ​ (4) ​ 124 States and political subdivisions-special revenue ​ - ​ - ​ - ​ - ​ - Corporate ​ 68,242 ​ (1,206) ​ 31 ​ (5,283) ​ 61,784 Term loans ​ ​ 700,273 ​ ​ (5,332) ​ ​ 1,710 ​ ​ (12,054) ​ ​ 684,597 Total fixed maturities ​ $ 1,717,921 ​ $ (7,537) ​ $ 8,092 ​ $ (74,644) ​ $ 1,643,832 Mortgage loans on real estate, held for investment ​ ​ 422,809 ​ ​ (1,577) ​ ​ - ​ ​ - ​ ​ 421,232 Derivatives ​ ​ 37,829 ​ ​ - ​ ​ 5,296 ​ ​ (16,566) ​ ​ 26,559 Equity securities ​ ​ 5,592 ​ ​ - ​ ​ - ​ ​ (480) ​ ​ 5,112 Other invested assets ​ ​ 126,696 ​ ​ (1,600) ​ ​ 2,154 ​ ​ (473) ​ ​ 126,777 Preferred stock ​ ​ 38,801 ​ ​ - ​ ​ 177 ​ ​ (5,052) ​ ​ 33,926 Deposits and notes receivable ​ ​ 10,774 ​ ​ - ​ ​ - ​ ​ - ​ ​ 10,774 Policy loans ​ ​ 83 ​ ​ - ​ ​ - ​ ​ - ​ ​ 83 Total investments ​ $ 2,360,505 ​ $ (10,714) ​ $ 15,719 ​ $ (97,215) ​ $ 2,268,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities $ - ​ $ 3,564 ​ $ (3,178) ​ $ 386 Corporate ​ - ​ ​ - ​ ​ 1,206 ​ ​ 1,206 Asset-backed securities ​ - ​ ​ 273 ​ ​ (273) ​ ​ - Collateralized loan obligations ​ - ​ ​ 588 ​ ​ 25 ​ ​ 613 Term loans ​ - ​ ​ 8,518 ​ ​ (3,186) ​ ​ 5,332 Mortgage loans on real estate, held for investment ​ - ​ ​ 2,024 ​ ​ (447) ​ ​ 1,577 Other invested asset ​ - ​ ​ 1,703 ​ ​ (103) ​ ​ 1,600 Total allowance $ - ​ $ 16,670 ​ $ (5,956) ​ $ 10,714 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In Thousands) ​ Balance June 30, 2023 ​ Additional Allowance Recognized Due to Adoption of Accounting Guidance ​ Credit Loss Expense for the Current Period ​ Balance September 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bonds: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mortgage-backed securities $ 1,035 ​ $ - ​ $ (649) ​ $ 386 Corporate ​ 1,297 ​ ​ - ​ ​ (91) ​ ​ 1,206 Asset-backed securities ​ - ​ ​ - ​ ​ - ​ ​ - Collateralized loan obligations ​ 480 ​ ​ - ​ ​ 133 ​ ​ 613 Term loans ​ 6,104 ​ ​ - ​ ​ (772) ​ ​ 5,332 Mortgage loans on real estate, held for investment ​ 1,493 ​ ​ - ​ ​ 84 ​ ​ 1,577 Other invested asset ​ 1,343 ​ ​ - ​ ​ 257 ​ ​ 1,600 Total allowance $ 11,752 ​ $ - ​ $ (1,038) ​ $ 10,714
Schedule of credit ratings of fixed maturity securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 ​ ​ Carrying ​ ​ ​ Carrying ​ ​ (In thousands) Value Percent Value Percent AAA and U.S. Government ​ $ 230,903 14.0 % $ 124,183 10.2 % AA ​ 19,363 1.2 ​ 815 0.1 ​ A ​ 411,517 25.0 ​ 371,371 30.6 ​ BBB ​ 814,049 49.6 ​ 619,516 51.0 ​ Total investment grade ​ 1,475,832 89.8 ​ 1,115,885 91.9 ​ BB and below ​ 168,000 10.2 ​ 98,750 8.1 ​ Total ​ $ 1,643,832 100.0 % $ 1,214,635 100.0 %
Schedule of Unrealized Loss of Securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ - ​ $ - - ​ $ 1,135 ​ $ (70) 13 Mortgage-backed securities ​ 250,705 ​ (8,878) 82 ​ 233,624 ​ (18,464) 89 Asset-backed securities ​ ​ 7,576 ​ ​ (311) ​ ​ 6 ​ ​ 24,552 ​ ​ (3,278) ​ ​ 23 Collateralized loan obligations ​ ​ 35,221 ​ ​ (740) ​ ​ 24 ​ ​ 203,549 ​ ​ (16,730) ​ ​ 252 States and political subdivisions-general obligations ​ ​ - ​ ​ - ​ ​ - ​ ​ 101 ​ ​ (3) ​ ​ 1 States and political subdivisions-special revenue ​ - ​ ​ - - ​ 47 ​ ​ (2) 3 Corporate ​ 30,732 ​ (419) 16 ​ 37,286 ​ (5,426) 64 Term loans ​ ​ 689,833 ​ ​ (12,052) ​ ​ - ​ ​ 558,337 ​ ​ (4,607) ​ ​ 36 Greater than 12 months: ​ ​ ​ ​ U.S. government obligations ​ 1,149 ​ (64) 9 ​ 126 ​ (11) 5 Asset-backed securities ​ ​ 25,030 ​ (2,520) 25 ​ 5,321 ​ (711) 7 Collateralized loan obligations ​ 175,805 ​ (11,621) 246 ​ 37,814 ​ (5,194) 47 States and political subdivisions-special revenue ​ ​ 124 ​ ​ (4) ​ ​ 2 ​ ​ 158 ​ ​ (21) ​ ​ 7 Mortgage-backed securities ​ ​ 143,544 ​ ​ (33,168) ​ ​ 91 ​ ​ 17,985 ​ ​ (4,044) ​ ​ 14 Corporate ​ 20,952 ​ ​ (4,867) 52 ​ 376 ​ ​ (89) 7 Total fixed maturities ​ $ 1,380,671 ​ $ (74,644) 553 ​ $ 1,120,411 ​ $ (58,650) 568 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1)
Schedule of Fixed Maturities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Estimated (In thousands) Cost Fair Value Due in one year or less ​ $ 199,892 ​ $ 195,433 Due after one year through five years ​ 879,623 ​ 860,178 Due after five years through ten years ​ 433,369 ​ 401,992 Due after ten years through twenty years ​ ​ 162,978 ​ ​ 152,915 Due after twenty years ​ ​ 42,059 ​ ​ 33,314 ​ ​ $ 1,717,921 ​ $ 1,643,832
Schedule of investment in mortgage loans	​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 ​ December 31, 2022 Loan-to-Value Ratio: ​ ​ ​ ​ ​ 0%-59.99% $ 285,205 ​ $ 108,281 60%-69.99% ​ 85,990 ​ ​ 79,968 70%-79.99% ​ 35,536 ​ ​ 33,268 80% or greater ​ 14,501 ​ ​ 5,530 Total mortgage loans $ 421,232 ​ $ 227,047
Components of net investment income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, (In thousands) 2023 2022 2023 2022 Fixed maturities ​ $ 47,552 ​ $ 21,466 ​ $ 115,452 ​ $ 69,699 Mortgage loans ​ ​ 7,636 ​ ​ 1,627 ​ ​ 20,610 ​ ​ 11,265 Other invested assets ​ ​ 4,654 ​ ​ 334 ​ ​ 10,117 ​ ​ 6,157 Other interest income ​ 8,179 ​ 11,158 ​ 26,457 ​ 27,222 Gross investment income ​ 68,021 ​ 34,585 ​ 172,636 ​ 114,343 Less: investment expenses ​ (9,447) ​ (3,911) ​ (20,711) ​ (25,273) Less: amounts ceded to reinsurers ​ ​ (37,778) ​ ​ (17,736) ​ ​ (87,688) ​ ​ (59,349) Investment income, net of expenses ​ $ 20,796 ​ $ 12,938 ​ $ 64,237 ​ $ 29,721
Mortgage-back securities
Investments
Schedule of Mortgage Loan Activity	​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ September 30, 2023 ​ ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ 1-4 Family ​ $ 59,820 ​ $ 59,579 Hospitality ​ ​ 6,385 ​ ​ 12,902 Land ​ ​ 66,743 ​ ​ 62,119 Multifamily (5+) ​ ​ 107,330 ​ ​ 34,072 Retail ​ ​ 48,182 ​ ​ 22,119 Other ​ ​ 134,349 ​ ​ 36,256 Allowance for credit loss ​ ​ (1,577) ​ ​ - Total mortgage loans ​ $ 421,232 ​ $ 227,047

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Derivative Instruments
Summary of the derivatives not designated as hedges	​ The following is a summary of the derivatives not designated as hedges and embedded derivatives in our FIA product as of September 30, 2023 and December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 $ 984,622 ​ 705 ​ $ 26,954 ​ $ 831,657 ​ 595 ​ $ 15,592 Equity-indexed embedded derivatives ​ Deposit-type ​ 936,754 ​ 7,807 ​ ​ 146,143 ​ ​ 782,997 ​ 6,131 ​ ​ 111,618
Summary of embedded derivatives related to the funds withheld provision	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ 169,677 ​ $ 161,920 ​ $ 7,757 ​ $ 150,413 ​ $ 143,952 ​ $ 6,461 Crestline Re SP1 ​ ​ 448,450 ​ ​ 450,908 ​ ​ (2,458) ​ ​ 354,806 ​ ​ 356,374 ​ ​ (1,568) Ironbound ​ ​ 160,688 ​ ​ 154,966 ​ ​ 5,722 ​ ​ 159,644 ​ ​ 154,477 ​ ​ 5,167 Ascendent Re ​ ​ 65,615 ​ ​ 63,998 ​ ​ 1,617 ​ ​ 56,064 ​ ​ 54,790 ​ ​ 1,274 SRC4 ​ ​ 213,013 ​ ​ 213,366 ​ ​ (353) ​ ​ 61,646 ​ ​ 62,516 ​ ​ (870) Total ​ $ 1,057,443 ​ $ 1,045,158 ​ $ 12,285 ​ $ 782,573 ​ $ 772,109 ​ $ 10,464

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed maturity securities: ​ ​ ​ ​ ​ ​ ​ Bonds ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government obligations ​ $ - ​ $ 1,905 ​ $ - ​ $ - ​ $ 1,905 Mortgage-backed securities ​ ​ - ​ ​ 482,324 ​ ​ - ​ ​ - ​ ​ 482,324 Asset-backed securities ​ ​ - ​ ​ 36,374 ​ ​ - ​ ​ - ​ ​ 36,374 Collateralized loan obligations ​ ​ - ​ ​ 376,724 ​ ​ - ​ ​ - ​ ​ 376,724 States and political subdivisions-general obligations ​ - ​ 124 ​ - ​ - ​ 124 States and political subdivisions-special revenue ​ - ​ - ​ - ​ - ​ - Corporate ​ - ​ 61,784 ​ - ​ - ​ 61,784 Term loans ​ ​ - ​ ​ - ​ 684,597 ​ ​ - ​ 684,597 Total fixed maturity securities ​ ​ - ​ ​ 959,235 ​ ​ 684,597 ​ ​ - ​ ​ 1,643,832 Mortgage loans on real estate, held for investment ​ ​ - ​ ​ - ​ ​ 421,232 ​ ​ - ​ ​ 421,232 Derivatives ​ ​ - ​ ​ 26,559 ​ ​ - ​ ​ - ​ ​ 26,559 Equity securities ​ ​ - ​ ​ 5,112 ​ ​ - ​ ​ - ​ ​ 5,112 Other invested assets ​ ​ - ​ ​ - ​ ​ 114,013 ​ ​ 12,764 ​ ​ 126,777 Preferred stock ​ ​ - ​ ​ 10,940 ​ ​ 22,986 ​ ​ - ​ ​ 33,926 Deposits and notes receivable ​ ​ - ​ ​ 7,768 ​ ​ 3,006 ​ ​ - ​ ​ 10,774 Policy loans ​ ​ - ​ ​ - ​ ​ 83 ​ ​ - ​ 83 Total investments ​ $ - ​ $ 1,009,614 ​ $ 1,245,917 ​ $ 12,764 ​ $ 2,268,295 Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded derivative for equity-indexed contracts ​ $ — ​ $ — ​ $ 146,143 ​ $ — ​ ​ 146,143 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 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 September 30, 2023 and December 31, 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ 83 ​ $ — ​ $ — ​ $ 83 ​ $ 83 Cash ​ 197,804 ​ 197,804 ​ — ​ — ​ 197,804 Liabilities: ​ ​ ​ ​ ​ Policyholder deposits (deposit-type contracts) ​ 2,453,282 ​ — ​ — ​ 2,453,282 ​ 2,453,282 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 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	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $ - ​ $ (12,054) ​ $ 137,679 ​ $ 684,597 Mortgage loans on real estate, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ held for investment ​ ​ 227,047 ​ ​ - ​ ​ - ​ ​ 194,185 ​ ​ 421,232 Deposits and notes receivable ​ ​ 1,306 ​ ​ - ​ ​ - ​ ​ 1,700 ​ ​ 3,006 Other invested assets ​ ​ 99,997 ​ ​ - ​ ​ 1,681 ​ ​ 12,335 ​ ​ 114,013 Preferred stock ​ ​ 21,871 ​ ​ (4,874) ​ ​ - ​ ​ 5,989 ​ ​ 22,986 Policy loans ​ ​ 25 ​ ​ - ​ ​ - ​ ​ 58 ​ ​ 83 Total level 3 assets ​ $ 909,218 ​ $ (4,874) ​ $ (10,373) ​ $ 351,946 ​ $ 1,245,917 Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded derivative for equity-indexed contracts ​ ​ (111,618) ​ ​ 33,170 ​ ​ - ​ ​ (67,695) ​ ​ (146,143) Total level 3 liabilities ​ $ (111,618) ​ $ 33,170 ​ $ - ​ $ (67,695) ​ $ (146,143) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ $684.6 ​ Yield Analysis ​ Discount rates ​ 4.6% ​ 17.3% ​ 12.4% ​ Decrease Mortgage loans on real estate ​ $421.2 ​ Yield Analysis ​ Principal funded ​ NA ​ NA ​ NA ​ Decrease Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives ​ $146.1 ​ Option Budget Method ​ Nonperformance risk ​ 0.6% ​ 1.5% ​ 1.1% ​ Decrease ​ ​ ​ ​ ​ ​ Option budget ​ 1.1% ​ 5.9% ​ 2.9% ​ Increase ​ ​ ​ ​ ​ ​ Surrender rate ​ 0.5% ​ 15% (base) ​ 12.5% ​ Decrease Other invested assets ​ $114.0 ​ Market Approach ​ EBITDA Multiples ​ 2.6x ​ 3.1x ​ 2.8x ​ NA ​ ​ ​ ​ ​ ​ Discount rates ​ 8.0% ​ 25.5% ​ 14.5% ​ NA Preferred stock ​ $9.8 ​ Yield Analysis ​ Discount rates ​ 24.0% ​ 28.0% ​ 26.0% ​ Increase Detachable warrants ​ $2.5 ​ Market Approach GPCM ​ EBITDA Multiples ​ 10.0x ​ 11.5x ​ 100.0% ​ Decrease Preferred stock ​ $10.7 ​ 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)	9 Months Ended
	Sep. 30, 2023
Deposit-Type Contracts
Schedule of deposit-type contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Beginning balance ​ $ 1,743,348 ​ $ 1,075,439 US Alliance ​ (452) ​ (2,176) Unified Life Insurance Company ​ ​ (129) ​ ​ (10) Ironbound Reinsurance Company Limited ​ 4,748 ​ 5,959 Ascendant Re ​ ​ 149 ​ ​ (3,185) Crestline SP1 ​ ​ 4,402 ​ ​ (11,623) American Republic Insurance Company ​ ​ 2,523 ​ ​ (4,080) SRC4 ​ ​ 5,475 ​ ​ 613 Deposits received ​ 755,213 ​ 745,083 Investment earnings (includes embedded derivative) ​ 33,170 ​ (10,193) Withdrawals ​ (95,165) ​ (51,659) Policy charges ​ ​ - ​ ​ (820) Ending balance ​ $ 2,453,282 ​ $ 1,743,348

Reinsurance (Tables)

Reinsurance (Tables)	9 Months Ended
	Sep. 30, 2023
Reinsurance
Summary of significant reinsurance amounts	A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of September 30, 2023 and December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Assets: ​ ​ Reinsurance recoverables ​ $ 27,870 ​ $ 20,190 Liabilities: ​ ​ ​ ​ ​ ​ Deposit-type contracts ​ ​ ​ ​ ​ ​ Direct ​ $ 2,453,282 ​ $ 1,743,348 Reinsurance ceded ​ ​ (1,157,854) ​ ​ (912,982) Retained deposit-type contracts ​ $ 1,295,428 ​ $ 830,366 ​ ​ ​
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 September 30, 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 ​ $ - ​ $ - ​ $ 1,327 ​ $ - ​ $ 1,327 Optimum Re Insurance Company ​ A ​ ​ - ​ ​ - ​ ​ 690 ​ ​ - ​ ​ 690 Sagicor Life Insurance Company ​ A- ​ - ​ 299 ​ 10,006 ​ (15) ​ 10,290 Ascendant Re ​ ​ NR ​ ​ - ​ ​ - ​ ​ (4,724) ​ ​ - ​ ​ (4,724) Crestline SP1 ​ ​ NR ​ ​ - ​ ​ - ​ ​ (9,907) ​ ​ - ​ ​ (9,907) American Republic Insurance Company ​ ​ A ​ ​ - ​ ​ - ​ ​ 6,057 ​ ​ - ​ ​ 6,057 SRC4 ​ ​ NR ​ ​ - ​ ​ - ​ ​ (26,407) ​ ​ - ​ ​ (26,407) Unified Life Insurance Company ​ ​ NR ​ ​ - ​ ​ 25 ​ ​ 772 ​ ​ (14) ​ ​ 783 US Alliance Life and Security Company ​ NR ​ - ​ - ​ 49,784 ​ (23) ​ 49,761 ​ ​ ​ ​ ​ $ - ​ $ 324 ​ $ 27,598 ​ $ (52) ​ $ 27,870 ​ ​ ​ 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	​ 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 and nine months ended September 30, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, (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 ​ $ — ​ $ — ​ $ — ​ $ 2 ​ $ - ​ $ - ​ $ - $ ​ 6 Ironbound Reinsurance Company Limited ​ ​ — ​ ​ — ​ ​ 45 ​ ​ 121 ​ ​ - ​ ​ - ​ ​ 48 ​ ​ 123 Ascendant Re ​ ​ 43 ​ ​ 42 ​ ​ 25 ​ ​ 101 ​ ​ - ​ ​ - ​ ​ 23 ​ ​ 88 US Alliance Life and Security Company ​ ​ — ​ ​ — ​ ​ 12 ​ ​ 93 ​ ​ - ​ ​ - ​ ​ 13 ​ ​ 96 Crestline Re SP 1 ​ ​ 492 ​ ​ 475 ​ ​ 146 ​ ​ 846 ​ ​ 1,972 ​ ​ 2,794 ​ ​ 103 ​ ​ 604 American Republic Insurance Company ​ ​ — ​ ​ (132) ​ ​ 52 ​ ​ 294 ​ ​ 1,144 ​ ​ 1,631 ​ ​ 38 ​ ​ 242 SRC4 ​ ​ 849 ​ ​ 822 ​ ​ 78 ​ ​ (65) ​ ​ 878 ​ ​ 784 ​ ​ 5 ​ ​ 80 ​ ​ $ 1,384 ​ $ 1,207 ​ $ 358 ​ $ 1,392 ​ $ 3,994 ​ $ 5,209 ​ $ 230 ​ $ 1,239 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine months ended September 30, (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 ​ $ — ​ $ — ​ $ — ​ $ 14 ​ $ — ​ $ — ​ $ — ​ $ 20 Ironbound Reinsurance Company Limited ​ ​ — ​ ​ — ​ ​ 138 ​ ​ 374 ​ ​ — ​ ​ — ​ ​ 146 ​ ​ 381 Ascendant Re ​ ​ 224 ​ ​ 217 ​ ​ 71 ​ ​ 287 ​ ​ — ​ ​ — ​ ​ 70 ​ ​ 250 US Alliance Life and Security Company ​ ​ — ​ ​ — ​ ​ 37 ​ ​ 249 ​ ​ — ​ ​ — ​ ​ 41 ​ ​ 259 Crestline SP1 ​ ​ 2,298 ​ ​ 2,106 ​ ​ 418 ​ ​ 2,486 ​ ​ 4,497 ​ ​ 7,026 ​ ​ 271 ​ ​ 1,669 American Republic Insurance Company ​ ​ 560 ​ ​ 621 ​ ​ 158 ​ ​ 856 ​ ​ 2,971 ​ ​ 4,859 ​ ​ 90 ​ ​ 592 SRC4 ​ ​ 4,730 ​ ​ 4,436 ​ ​ 164 ​ ​ 197 ​ ​ 878 ​ ​ 783 ​ ​ 5 ​ ​ 80 ​ ​ $ 7,812 ​ $ 7,380 ​ $ 986 ​ $ 4,463 ​ $ 8,346 ​ $ 12,668 ​ $ 623 ​ $ 3,251 ​ (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees.
Schedule of ceding commissions deferred on each reinsurance transaction	​ ​ ​ ​ ​ ​ ​ (In thousands) ​ September 30, 2023 ​ December 31, 2022 Reinsurer Deferred Gain on Reinsurance Transactions ​ Deferred Gain on Reinsurance Transactions US Alliance Life and Security Company (1) $ - ​ $ 152 Unified Life Insurance Company (1) ​ 249 ​ ​ 217 Ironbound Reinsurance Company Limited (2) ​ ​ 4,750 ​ ​ 4,876 Ascendant Re ​ 3,096 ​ ​ 2,947 US Alliance Life and Security Company (2) ​ ​ 1,961 ​ ​ 2,069 American Republic Insurance Company (2) ​ ​ 7,400 ​ ​ 7,502 Crestline SP1 (2) ​ ​ 19,488 ​ ​ 18,475 SRC4 (2) ​ ​ 7,196 ​ ​ 1,825 ​ ​ $ 44,140 ​ $ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Retained ​ Reinsured ​ Consolidated ​ Retained ​ Reinsured ​ Consolidated Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total investments ​ $ 1,212,973 ​ $ 1,055,322 ​ $ 2,268,295 ​ $ 812,177 ​ $ 802,780 ​ $ 1,614,957 Cash and cash equivalents ​ ​ 111,119 ​ ​ 86,685 ​ ​ 197,804 ​ ​ 127,291 ​ ​ 64,123 ​ ​ 191,414 Deferred acquisition costs, net ​ ​ 69,470 ​ ​ - ​ ​ 69,470 ​ ​ 43,433 ​ ​ - ​ ​ 43,433 Premiums receivable ​ ​ - ​ ​ 63 ​ ​ 63 ​ ​ - ​ ​ - ​ ​ - Accrued investment income ​ ​ 18,835 ​ ​ 25,859 ​ ​ 44,694 ​ ​ 11,307 ​ ​ 13,858 ​ ​ 25,165 Reinsurance recoverables ​ ​ (8,944) ​ ​ 36,814 ​ ​ 27,870 ​ ​ (6,853) ​ ​ 27,405 ​ ​ 20,552 Property and equipment, net ​ ​ 1,721 ​ ​ - ​ ​ 1,721 ​ ​ 1,897 ​ ​ - ​ ​ 1,897 Receivable for securities sold ​ ​ (9,650) ​ ​ 9,650 ​ ​ - ​ ​ 2,033 ​ ​ 8,485 ​ ​ 10,518 Other assets ​ ​ 12,760 ​ ​ 1,575 ​ ​ 14,335 ​ ​ 12,259 ​ ​ 236 ​ ​ 12,495 Total assets ​ $ 1,408,284 ​ $ 1,215,968 ​ $ 2,624,252 ​ $ 1,003,544 ​ $ 916,887 ​ $ 1,920,431 Liabilities and Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit reserves ​ $ 526 ​ $ 11,006 ​ $ 11,532 ​ $ 1,332 ​ $ 11,613 ​ $ 12,945 Deposit-type contracts ​ ​ 1,301,754 ​ ​ 1,151,528 ​ ​ 2,453,282 ​ ​ 841,980 ​ ​ 901,368 ​ ​ 1,743,348 Other policy-holder funds ​ ​ 4,219 ​ ​ 311 ​ ​ 4,530 ​ ​ 4,105 ​ ​ - ​ ​ 4,105 Notes payable ​ ​ 25,000 ​ ​ - ​ ​ 25,000 ​ ​ 25,000 ​ ​ - ​ ​ 25,000 Deferred gain on coinsurance transactions ​ ​ 416 ​ ​ 43,724 ​ ​ 44,140 ​ ​ 38,063 ​ ​ - ​ ​ 38,063 Payable for securities sold ​ ​ 27,029 ​ ​ - ​ ​ 27,029 ​ ​ 8,872 ​ ​ - ​ ​ 8,872 Other liabilities ​ ​ 27,387 ​ ​ 9,399 ​ ​ 36,786 ​ ​ 49,815 ​ ​ 3,906 ​ ​ 53,721 Total liabilities ​ $ 1,386,331 ​ $ 1,215,968 ​ $ 2,602,299 ​ $ 969,167 ​ $ 916,887 ​ $ 1,886,054 Stockholders’ Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred stock ​ $ - ​ $ - ​ $ - ​ $ - ​ $ - ​ $ - Voting common stock ​ ​ 4 ​ ​ - ​ ​ 4 ​ ​ 4 ​ ​ - ​ ​ 4 Additional paid-in capital ​ ​ 138,122 ​ ​ - ​ ​ 138,122 ​ ​ 138,482 ​ ​ - ​ ​ 138,482 Treasury stock ​ ​ (175) ​ ​ - ​ ​ (175) ​ ​ (175) ​ ​ - ​ ​ (175) Accumulated deficit ​ ​ (67,361) ​ ​ - ​ ​ (67,361) ​ ​ (63,019) ​ ​ - ​ ​ (63,019) Accumulated other comprehensive loss ​ ​ (66,886) ​ ​ - ​ ​ (66,886) ​ ​ (51,386) ​ ​ - ​ ​ (51,386) Total Midwest Holding Inc.'s stockholders' equity ​ $ 3,704 ​ $ - ​ $ 3,704 ​ $ 23,906 ​ $ - ​ $ 23,906 Noncontrolling interest ​ ​ 18,249 ​ ​ - ​ ​ 18,249 ​ ​ 10,471 ​ ​ - ​ ​ 10,471 Total stockholders' equity ​ ​ 21,953 ​ ​ - ​ ​ 21,953 ​ ​ 34,377 ​ ​ - ​ ​ 34,377 Total liabilities and stockholders' equity ​ $ 1,408,284 ​ $ 1,215,968 ​ $ 2,624,252 ​ $ 1,003,544 ​ $ 916,887 ​ $ 1,920,431 ​

Income Tax Matters (Tables)

Income Tax Matters (Tables)	9 Months Ended
	Sep. 30, 2023
Income Tax Matters
Schedule of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2023 and December 31, 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 December 31, 2022 Deferred tax assets: ​ ​ Loss carryforwards ​ $ 4,146 ​ $ 2,672 Capitalized costs ​ 44 ​ 79 Stock option granted ​ ​ 1,190 ​ ​ 1,066 Policy acquisition costs ​ ​ 9,803 ​ ​ 6,489 General business credits ​ ​ 6 ​ ​ 6 Derivative option allowance ​ ​ - ​ ​ - Sec 163(j) limitation ​ ​ 171 ​ ​ 171 Benefit reserves ​ 17,189 ​ 12,010 Impairments ​ ​ 535 ​ ​ 403 Unrealized losses on investments ​ ​ 17,780 ​ ​ 13,624 Other ​ ​ 1,928 ​ ​ 1,928 Total deferred tax assets ​ 52,792 ​ 38,448 Less valuation allowance ​ (46,138) ​ (35,305) Total deferred tax assets, net of valuation allowance ​ 6,654 ​ 3,143 Deferred tax liabilities: ​ ​ Unrealized losses on investments ​ - ​ - Due premiums ​ - ​ - Intangible assets ​ 147 ​ 147 Derivative option allowance ​ 4,246 ​ 2,150 Bond Discount ​ ​ 2,400 ​ ​ 936 Property and equipment ​ (139) ​ (90) Total deferred tax liabilities ​ 6,654 ​ 3,143 Net deferred tax assets ​ $ - ​ $ -
Schedule of effective tax rate reconciliation	There was income tax expense of $4.6 million and $1.3 million for the three months ended September 30, 2023 and 2022. and $10.5 million and $3.8 million of tax expense for the nine months ended September 30, 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 September 30, ​ Nine months ended September 30, (In thousands) 2023 2022 2023 2022 Computed expected income tax benefit (expense) ​ $ (1,564) ​ $ (796) ​ $ (3,921) ​ $ (2,305) Reduction (increase) in income taxes resulting from: ​ ​ ​ ​ ​ ​ ​ Interest maintenance reserve and reinsurance ​ ​ (47) ​ ​ 176 ​ ​ 4 ​ ​ 158 Nondeductible expenses ​ ​ (3) ​ ​ (3) ​ ​ (9) ​ ​ (8) Change in valuation allowance ​ (2,896) ​ (641) ​ (6,677) ​ ​ (1,693) Deferred tax adjustment ​ ​ - ​ ​ 14 ​ ​ - ​ ​ - AETR adjustment ​ ​ (19) ​ ​ - ​ ​ (19) ​ ​ - Prior year true-up ​ ​ (77) ​ ​ - ​ ​ 140 ​ ​ - Subtotal of (increases) decreases ​ (3,042) ​ (454) ​ (6,561) ​ (1,543) Tax (benefit) expense ​ $ (4,606) ​ $ (1,250) ​ $ (10,482) ​ $ (3,848)

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information for our leases as of September 30, 2023 and December 31, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) Classification September 30, 2023 December 31, 2022 Assets ​ ​ Operating Operating lease right-of-use assets ​ $ 1,997 ​ $ 2,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ Operating lease Operating lease liabilities ​ $ 2,005 ​ $ 2,135
Schedule of Components of Lease Expenses	Our operating lease expense for the three and nine months ended September 30, 2023 and 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended September 30, ​ Nine months ended September 30, (In thousands) Classification 2023 2022 2023 2022 Operating General and administrative expense ​ $ 3 ​ $ 3 ​ $ 10 ​ $ 10 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of Operating Leases Minimum	Minimum contractual obligations for our leases as of September 30, 2023 are as follows: ​ ​ ​ ​ ​ (In thousands) Operating Leases 2023 ​ $ 112 2024 ​ 378 2025 ​ 342 2026 ​ ​ 345 2027 ​ ​ 353 2028 ​ ​ 362 2029 and after ​ ​ 1,041 Total remaining lease payments ​ $ 2,933 ​

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 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 ​ ​ (16,167) Less: Reclassification adjustments for losses realized in net income, net of tax ​ ​ 667 Balance, September 30, 2023 ​ $ (66,886) ​

Long-Term Incentive Plans (Tabl

Long-Term Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 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 $ 32.19 $ 11.20 - 55.02 ​ 319,121 ​ 271,517 ​ 47,604 Granted ​ 17.12 ​ 17.20 ​ 5,750 ​ 5,750 ​ - Prior year adjustment ​ 39.16 ​ 16.37 - 55.02 ​ - ​ (7,390) ​ 7,390 Vested ​ - ​ - ​ - ​ - ​ - Exercised ​ - ​ - ​ - ​ - ​ - Forfeited ​ 46.92 ​ 25.00 - 55.02 ​ (19,267) ​ (19,267) ​ - Expired ​ - ​ - ​ - ​ - ​ - September 30, 2023 $ 30.90 $ 11.20 - 55.02 ​ 305,604 ​ 250,610 ​ 54,994
Schedule of Option information segregated by ranges of exercise prices	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 35,853 $ 55.02 7.60 ​ 6,390 $ 55.02 7.33 $40.00 - $49.99 127,751 ​ 41.25 7.69 ​ 36,042 ​ 41.25 7.33 $30.00 - $39.99 - ​ - - ​ - ​ - - $20.00 - $29.99 23,600 ​ 23.36 7.54 ​ 5,877 ​ 25.00 7.04 $10.00 - $19.99 115,000 ​ 13.43 9.00 ​ 4,285 ​ 16.37 7.33 < $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 ​ 6,984 ​ 25.76 ​ - ​ - Vested ​ - ​ - ​ - ​ - Forfeited ​ - ​ - ​ - ​ - Released ​ (16,044) ​ 11.22 ​ - ​ - September 30, 2023 ​ 8,147 $ 22.08 ​ 1,163 $ 50.00
Schedule of assumptions used to calculate compensation expense	​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2023 ​ 2022 Volatility ​ 287.3% ​ 4.16% - 4.26% Weighted-average volatility ​ 287.3% ​ 3.7% Expected term (in years) ​ 6.54 yrs ​ 2 - 7 Risk-free rate ​ 3.57% ​ 0.02% - 2.15%
Schedule of outstanding remaining non-vested shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 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 ​ 5,750 ​ ​ 16.56 ​ ​ 17.12 Restricted stock units granted ​ 6,984 ​ ​ 16.56 ​ ​ - Vested ​ (23,434) ​ ​ 13.59 ​ ​ 55.02 Forfeited or expired ​ (20,517) ​ ​ 27.99 ​ ​ 46.92 Ending Balance at September 30, 2023 ​ 256,344 ​ $ 16.92 ​ $ 30.90 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 or expired ​ (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)	9 Months Ended
	Sep. 30, 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 September 30, ​ Nine months ended September 30, (In thousands) ​ 2023 2022 ​ 2023 2022 American Life ​ $ 38,395 ​ $ (1,836) ​ $ 3,279 ​ $ 16,055 SRC1 ​ $ (458) ​ $ 1,129 ​ $ 6,853 ​ $ 181 SRC3 ​ $ 745 ​ $ 1,951 ​ $ 1,662 ​ $ 960 ​ 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) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2023 ​ December 31, 2022 American Life ​ $ 67,018 ​ $ 69,936 ​ SRC1 ​ $ 14,968 ​ $ 9,615 ​ SRC3 ​ $ 7,983 ​ $ 6,088 ​ 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 September 30, ​ Nine months ended September 30, (In thousands) ​ 2023 2022 ​ 2023 2022 American Life ​ $ 207,689 ​ $ 141,602 ​ $ 438,896 ​ $ 272,218 SRC1 ​ $ - ​ $ - ​ $ - ​ $ - SRC3 ​ $ - ​ $ 174 ​ $ 123 ​ $ 23,931

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies.
Schedule of other commitments	​ ​ ​ ​ ​ ​ ​ (In thousands) September 30, 2023 ​ December 31, 2022 Due in one year or less $ 83,137 ​ $ 52,951 Due in two years 41,058 ​ 43,604 Due in three years 20,329 ​ 7,731 Due in four years ​ 24,947 ​ ​ 13,277 Due in five years and after ​ 53,569 ​ ​ 61,432 ​ $ 223,040 ​ $ 178,995

Nature of Operations and Basis

Nature of Operations and Basis of Presentation - (Narrative) (Details) $ / shares in Units, $ in Thousands, £ in Millions												1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 28, 2023	Jan. 01, 2023 USD ($)	Nov. 22, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 30, 2021	Dec. 20, 2021 USD ($)	Nov. 10, 2021	Jun. 26, 2021	Sep. 28, 2020 GBP (£)	May 12, 2020 USD ($)	Apr. 24, 2020	Apr. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2023 USD ($) product segment $ / shares	Sep. 30, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Feb. 02, 2022 USD ($)	Dec. 31, 2020
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		$ 7,700		$ 7,700
Mortgage servicing rights MSR impairment recovery															1,400	$ 1,400	1,400
Equity securities, fair value													5,112		5,112		5,111
Investment escrow													1,300		1,300		800
Fund investments															88,825	48,302
Other investments in fund													19,000		19,000
Investment income (loss)													20,796	$ 12,938	64,237	29,721
Other investments in private credit and equipment leases													13,100		13,100
Pledged assets, market value													233,500		233,500		121,100
Premiums receivable													63		63		362
FHLB borrowing capacity													212,000		212,000		109,800
Other invested assets													126,777		126,777		112,431
Impairment allowance on investment															0
Perpetual preferred stock													33,900		33,900		31,400
Impairment on preferred stock														346		880
Notes receivable													6,500		6,500		6,300
Valuation allowance on policy loans													0		0
Depreciation													100	100	300	100
Accumulated depreciation													1,700		1,700		1,400
Unrealized gains (losses)															(12,300)		(10,500)
Embedded derivatives gain (loss)													$ (2,100)	$ 100	$ 1,800	$ 14,600
Basic Income (loss) per common share | $ / shares													$ 0.10	$ 1.99	$ 0.09	$ 4.52
Preferred stock dividend															$ 1,051
Outstanding advances under FHLB funding agreements													$ 68,000		68,000
Accumulated deficit													(67,361)		(67,361)		(63,019)
Allowance for credit losses on investments													10,714		10,714			$ 11,752
Fixed maturities, Allowance for credit losses													$ 8,917		$ 8,917
Cumulative effect of change in accounting estimate
Allowance for credit losses on investments																	16,670
2016-13 | Cumulative effect of change in accounting estimate
Accumulated deficit		$ (4,700)
Allowance for credit losses on investments		(16,500)
Reinsurance recoverables		(11,800)
Change in allowance for expected credit losses		200
Fixed maturities, Allowance for credit losses		$ 4,500
BBB+
Interest rate													5%		5%
Ascona Group Holdings Ltd
Investment income (loss)													$ (700)	$ 200	$ 2,100	$ 1,800
Market value				$ 200									12,300	200	12,300	200	10,500
Fair value of preferred stock													12,300		12,300		10,500
Investment income, non-controlling interest													(200)	100	600	$ 500
SRC3
Ownership interest							100%
Ascona Asset Holding LLC
Preferred equity | £									£ 3.6
PF Collinwood Holdings LLC
Other invested assets													11,200		11,200		13,700
SRC1
Sale of non controlling interest																	$ 15,000
Python Asset Holding LLC
Other investments in fund																			$ 7,400
Investment income (loss)															$ 700
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															$ 39,000		$ 29,000
Repayments on FHLB funding agreements															0
Outstanding advances under FHLB funding agreements													68,000		68,000		29,000
FHLB funding agreements, matured on March 1, 2024 Member
Outstanding advances under FHLB funding agreements													$ 16,000		$ 16,000
Interest Rate													5.54%		5.54%
FHLB funding agreements, matured on January 22, 2025
Outstanding advances under FHLB funding agreements													$ 13,000		$ 13,000
Interest Rate													5.69%		5.69%
FHLB Second Funding Agreements, Matured On January 22, 2025
Outstanding advances under FHLB funding agreements													$ 2,000		$ 2,000
Interest Rate													5.655%		5.655%
FHLB funding agreements, matured on August 16, 2025
Outstanding advances under FHLB funding agreements													$ 8,000		$ 8,000
Interest Rate													5.955%		5.955%
FHLB Funding Agreements, Matured On September 1, 2027
Outstanding advances under FHLB funding agreements													$ 4,000		$ 4,000
Interest Rate													5.885%		5.885%
FHLB funding agreements, matured on September 15, 2027
Outstanding advances under FHLB funding agreements													$ 8,000		$ 8,000
Interest Rate													5.965%		5.965%
FHLB Funding Agreements, Matured On October 1, 2027
Outstanding advances under FHLB funding agreements													$ 9,000		$ 9,000
Interest Rate													5.895%		5.895%
FHLB Funding Agreements, Matured On December 1, 2027
Outstanding advances under FHLB funding agreements													$ 6,000		$ 6,000
Interest Rate													5.875%		5.875%
FHLB Funding Agreements, Matured On December 1, 2027
Outstanding advances under FHLB funding agreements													$ 2,000		$ 2,000
Interest Rate													5.86%		5.86%
Securities Purchase Agreement | SRC1
Ownership (as a percent)													30%		30%
Seneca Re Agreement
Basic Income (loss) per common share | $ / shares													$ (0.10)		$ 0.09	$ 4.52
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%
Master Letter Agreement
Reinsurance payable												$ 550,000
Credit Agreement | Revolving Credit Facility
Loan term			3 years
Maximum borrowing capacity			$ 30,000
Outstanding balance													$ 25,000		$ 25,000		25,000
Unutilized credit													5,000		$ 5,000
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											$ 21,400
Net statutory reserves													21,500		21,500
Amount owed deposit account				$ 21,500										$ 21,500		$ 21,500
Reinsurance payable													26,407		$ 26,407		44,442
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
Fixed Index Annuity | Crestline Assurance Holdings LLC | Master Letter Agreement
Percentage of indemnity coinsurance											40%
Collateralized loan obligation
Fixed maturities, Allowance for credit losses													613		$ 613			$ 480
Collateralized loan obligation | Cumulative effect of change in accounting estimate
Fixed maturities, Allowance for credit losses																	588
Exchange Traded Funds
Equity securities, fair value													5,100		5,100		$ 5,100
Mortgage loans on real estate one
Mortgage backed and asset backed securities at fair value													$ 7,700		7,700
Mortgage servicing rights MSR impairment recovery															1,400
Mortgage loans on real estate two
Mortgage servicing rights MSR impairment recovery															600
ORIX USA | SRC1
Ownership (as a percent)					30%	30%
Sale of non controlling interest						$ 15,000									$ 15,000
Percentage of ownership interest sold					70%	70%
ORIX USA | Securities Purchase Agreement
Percentage of ownership interest sold															70%
American Life | PF Collinwood Holdings LLC
Ownership (as a percent)													100%		100%
Investment Manager
Other investments in fund													$ 113,700		$ 113,700
Other invested assets													$ 126,800		$ 126,800
American Life | Ascona Group Holdings Ltd
Ownership interest													74%		74%					74%
American Life | Multi Year Guaranteed Annuity | Crestline Assurance Holdings LLC | Master Letter Agreement
Percentage of indemnity coinsurance												20%
American Life | Five Year Multi-Year Guaranteed Annuity | Crestline Assurance Holdings LLC | Master Letter Agreement
Percentage of indemnity coinsurance												10%
American Life | Fixed Index Annuity | Master Letter Agreement
Percentage of indemnity coinsurance												0%
Seneca Reinsurance Company, LLC
Contributions made										$ 300
Ownership percentage acquired										100%
Crestline Assurance Holdings LLC | Ascona Group Holdings Ltd
Ownership interest													26%		26%					26%

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation - Deferred acquisition costs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Deferred Acquisition Costs
Deferred Policy Acquisition Cost, Beginning Balance	$ 43,433	$ 24,530
Additions	32,425	23,857
Amortization	(4,369)	(3,905)
Interest	(1,463)	(883)
Impact of unrealized investment losses	(556)	(166)
Deferred Policy Acquisition Cost, Ending Balance	$ 69,470	$ 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Nature of Operations and Summary of Significant Accounting Policies
Net income (loss) attributable to Midwest Holding Inc.	$ 385	$ 7,431	$ 332	$ 16,883
Weighted average common shares outstanding	3,738,070	3,736,933	3,734,946	3,791,082
Stock options and deferred compensation agreements	138,600	52,000	138,600	52,000
Denominator for earnings (loss) per common share	3,876,670	3,788,933	3,873,546	3,843,082
Basic Income (loss) per common share	$ 0.10	$ 1.99	$ 0.09	$ 4.52
Diluted Income (loss) per common share	$ 0.10	$ 1.96	$ 0.09	$ 4.45
Common stock, shares issued	3,744,645		3,744,645		3,727,976
Common stock, shares outstanding	3,744,645		3,744,645		3,727,976
Non-voting common shares authorized	2,000,000		2,000,000		2,000,000
Common stock, shares authorized	20,000,000		20,000,000		20,000,000
Preferred stock, shares authorized	2,000,000		2,000,000		2,000,000

Non-controlling Interest (Detai

Non-controlling Interest (Details) $ in Thousands, £ in Millions				1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 30, 2021	Dec. 20, 2021 USD ($)	Sep. 28, 2020 GBP (£)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2020
Investment income (loss)					$ 20,796	$ 12,938	$ 64,237	$ 29,721
Dividends Paid							(1,051)
SRC1
Sale of non controlling interest									$ 15,000
Dividends received				$ 500
Ascona Asset Holding LLC
Preferred equity | £			£ 3.6
Ascona Group Holdings Ltd
Market value				12,300	12,300	200	12,300	200	10,500
Investment income (loss)					(700)	200	2,100	1,800
Investment income, non-controlling interest					(200)	$ 100	600	$ 500
Fair value of preferred stock				$ 12,300	$ 12,300		$ 12,300		10,500
American Life | Ascona Group Holdings Ltd
Ownership interest				74%	74%		74%			74%
Crestline Assurance Holdings LLC | Ascona Group Holdings Ltd
Ownership interest				26%	26%		26%			26%
ORIX USA | SRC1
Percentage of ownership interest sold	70%	70%
Sale of non controlling interest		$ 15,000					$ 15,000
Ownership (as a percent)	30%	30%
Cumulative income (loss)				$ 500	$ 500		$ 500		$ (5,500)
Dividends received				1,000
SRC1
Dividends Paid				$ (1,500)

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Investments) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2023
Amortized Cost	$ 1,717,921	$ 1,269,735
Fixed maturities, Allowance for credit losses	(8,917)
Total fixed maturities	1,643,832	1,214,635
Mortgage loans on real estate, held for investment amortized cost	422,809
Mortgage loans on real estate, held for investment	421,232	227,047
Mortgage loan on real estate, Allowance for credit losses	(1,577)		$ (1,493)
Derivatives, Cost	37,829	30,239
Derivatives, Gross Unrealized Gains	5,296	2,694
Derivatives, Gross Unrealized Losses	(16,566)	(16,999)
Estimated Fair Value	26,559	15,934
Equity Securities, Amortized Cost	5,592	5,592
Equity securities, Gross Unrealized Losses	(480)	(481)
Equity securities, fair value	5,112	5,111
Other invested assets, Cost	126,696	108,979
Other invested assets, Allowance for credit losses	(1,600)		(1,343)
Other invested assets, Gross Unrealized Gains	2,154	3,667
Other invested assets, Gross Unrealized Losses	(473)	(215)
Other invested assets (Allowance for credit losses of $1,600 in 2023.)	126,777	112,431
Investment escrow	1,300	800
Preferred stock , Amortized cost	38,801	35,644
Preferred stock, Gross Unrealized Gains	177	1,757
Preferred stock, Gross Unrealized Losses	(5,052)	(5,986)
Preferred stock, Fair value	33,926	31,415
Deposits and notes receivable, Amortized Cost	10,774	8,359
Deposits and notes receivable, Estimated Fair Value	10,774	8,359
Notes receivable	6,500	6,300
Policy Loans	83	25
Total investments, Amortized Cost	2,360,505	1,685,620
Allowance for credit losses on investments	(10,714)		(11,752)
Investments, Gross Unrealized Gains	15,719	11,668
Investments, Gross Unrealized Losses	(97,215)	(82,331)
Investments, Fair Value Disclosure	2,268,295	1,614,957
Fixed maturities
Amortized Cost	1,717,921	1,269,735
Fixed maturities, Allowance for credit losses	(7,537)
Gross Unrealized Gains	8,092	3,550
Gross Unrealized Losses	(74,644)	(58,650)
Total fixed maturities	1,643,832	1,214,635
U.S. government obligations
Amortized Cost	1,448	1,343
Gross Unrealized Gains	521
Gross Unrealized Losses	(64)	(81)
Total fixed maturities	1,905	1,262
Mortgage-back securities
Amortized Cost	522,767	316,105
Fixed maturities, Allowance for credit losses	(386)		(1,035)
Gross Unrealized Gains	1,988	469
Gross Unrealized Losses	(42,045)	(22,508)
Total fixed maturities	482,324	294,066
Asset-backed securities
Amortized Cost	39,121	34,728
Gross Unrealized Gains	84	17
Gross Unrealized Losses	(2,831)	(3,989)
Total fixed maturities	36,374	30,756
Collateralized loan obligation
Amortized Cost	385,942	308,871
Fixed maturities, Allowance for credit losses	(613)		(480)
Gross Unrealized Gains	3,758	726
Gross Unrealized Losses	(12,363)	(21,924)
Total fixed maturities	376,724	287,673
States and Political Subdivisions - general obligations
Amortized Cost	128	104
Gross Unrealized Losses	(4)	(3)
Total fixed maturities	124	101
States and Political Subdivisions - special revenue
Amortized Cost		228
Gross Unrealized Losses		(23)
Total fixed maturities		205
Corporate
Amortized Cost	68,242	46,700
Fixed maturities, Allowance for credit losses	(1,206)		(1,297)
Gross Unrealized Gains	31	415
Gross Unrealized Losses	(5,283)	(5,515)
Total fixed maturities	61,784	41,600
Term loans
Amortized Cost	700,273	561,656
Fixed maturities, Allowance for credit losses	(5,332)		$ (6,104)
Gross Unrealized Gains	1,710	1,923
Gross Unrealized Losses	(12,054)	(4,607)
Total fixed maturities	$ 684,597	$ 558,972

Investments (Schedule of Inform

Investments (Schedule of Information Related to Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Fixed Maturities
Ending balance	$ 8,917	$ 8,917
Mortgage loans on real estate, held for investment
Beginning balance	1,493
Credit Loss Expense for the Current Period	84	(447)
Ending balance	1,577	1,577
Other invested asset
Beginning balance	1,343
Credit Loss Expense for the Current Period	257	(103)
Ending balance	1,600	1,600
Total allowance
Beginning balance	11,752
Credit Loss Expense for the Current Period	(1,038)	(5,956)
Ending balance	10,714	10,714
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	7,537	7,537
Mortgage-back securities
Fixed Maturities
Beginning balance	1,035
Credit Loss Expense for the Current Period	(649)	(3,178)
Ending balance	386	386
Mortgage-back securities | Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance		3,564
Corporate
Fixed Maturities
Beginning balance	1,297
Credit Loss Expense for the Current Period	(91)	1,206
Ending balance	1,206	1,206
Asset-backed securities
Fixed Maturities
Credit Loss Expense for the Current Period		(273)
Asset-backed securities | Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance		273
Collateralized loan obligation
Fixed Maturities
Beginning balance	480
Credit Loss Expense for the Current Period	133	25
Ending balance	613	613
Collateralized loan obligation | Cumulative effect of change in accounting estimate
Fixed Maturities
Beginning balance		588
Term loans
Fixed Maturities
Beginning balance	6,104
Credit Loss Expense for the Current Period	(772)	(3,186)
Ending balance	$ 5,332	5,332
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	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Total fixed maturities	$ 1,643,832	$ 1,214,635
Fixed maturities
Marketable Securities [Line Items]
Total fixed maturities	$ 1,643,832	$ 1,214,635
Percent	100%	100%
Fixed maturities | Investment grade
Marketable Securities [Line Items]
Total fixed maturities	$ 1,475,832	$ 1,115,885
Percent	89.80%	91.90%
Fixed maturities | Investment grade | AAA and U.S. Government
Marketable Securities [Line Items]
Total fixed maturities	$ 230,903	$ 124,183
Percent	14%	10.20%
Fixed maturities | Investment grade | AA
Marketable Securities [Line Items]
Total fixed maturities	$ 19,363	$ 815
Percent	1.20%	0.10%
Fixed maturities | Investment grade | A
Marketable Securities [Line Items]
Total fixed maturities	$ 411,517	$ 371,371
Percent	25%	30.60%
Fixed maturities | Investment grade | BBB
Marketable Securities [Line Items]
Total fixed maturities	$ 814,049	$ 619,516
Percent	49.60%	51%
Fixed maturities | Non investment grade | BB and other
Marketable Securities [Line Items]
Total fixed maturities	$ 168,000	$ 98,750
Percent	10.20%	8.10%

Investments (Schedule of Unreal

Investments (Schedule of Unrealized Loss of Securities) (Details) $ in Thousands	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Fixed maturities
Estimated Fair Value, Total	$ 1,380,671	$ 1,120,411
Gross Unrealized Loss, Total	$ (74,644)	$ (58,650)
Number of Securities, Total | security	553	568
U.S. government obligations
Estimated Fair Value, Less than 12 months		$ 1,135
Gross Unrealized Loss, Less than 12 months		$ (70)
Number of Securities, Less than 12 months | security		13
Estimated Fair value, Greater than 12 months	$ 1,149	$ 126
Gross Unrealized Loss, Greater than 12 months	$ (64)	$ (11)
Number of Securities, Greater than 12 months | security	9	5
Mortgage-back securities
Estimated Fair Value, Less than 12 months	$ 250,705	$ 233,624
Gross Unrealized Loss, Less than 12 months	$ (8,878)	$ (18,464)
Number of Securities, Less than 12 months | security	82	89
Estimated Fair value, Greater than 12 months	$ 143,544	$ 17,985
Gross Unrealized Loss, Greater than 12 months	$ (33,168)	$ (4,044)
Number of Securities, Greater than 12 months | security	91	14
Asset-backed securities
Estimated Fair Value, Less than 12 months	$ 7,576	$ 24,552
Gross Unrealized Loss, Less than 12 months	$ (311)	$ (3,278)
Number of Securities, Less than 12 months | security	6	23
Estimated Fair value, Greater than 12 months	$ 25,030	$ 5,321
Gross Unrealized Loss, Greater than 12 months	$ (2,520)	$ (711)
Number of Securities, Greater than 12 months | security	25	7
Collateralized loan obligation
Estimated Fair Value, Less than 12 months	$ 35,221	$ 203,549
Gross Unrealized Loss, Less than 12 months	$ (740)	$ (16,730)
Number of Securities, Less than 12 months | security	24	252
Estimated Fair value, Greater than 12 months	$ 175,805	$ 37,814
Gross Unrealized Loss, Greater than 12 months	$ (11,621)	$ (5,194)
Number of Securities, Greater than 12 months | security	246	47
States and Political Subdivisions - general obligations
Estimated Fair Value, Less than 12 months		$ 101
Gross Unrealized Loss, Less than 12 months		$ (3)
Number of Securities, Less than 12 months | security		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	$ 124	$ 158
Gross Unrealized Loss, Greater than 12 months	$ (4)	$ (21)
Number of Securities, Greater than 12 months | security	2	7
Corporate
Estimated Fair Value, Less than 12 months	$ 30,732	$ 37,286
Gross Unrealized Loss, Less than 12 months	$ (419)	$ (5,426)
Number of Securities, Less than 12 months | security	16	64
Estimated Fair value, Greater than 12 months	$ 20,952	$ 376
Gross Unrealized Loss, Greater than 12 months	$ (4,867)	$ (89)
Number of Securities, Greater than 12 months | security	52	7
Term loans
Estimated Fair Value, Less than 12 months	$ 689,833	$ 558,337
Gross Unrealized Loss, Less than 12 months	$ (12,052)	$ (4,607)
Number of Securities, Less than 12 months | security		36

Investments (Schedule of Fixed

Investments (Schedule of Fixed Maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investments.
Amortized Cost, Due in one year or less	$ 199,892
Amortized Cost, Due after one year through five years	879,623
Amortized Cost, Due after five years through ten years	433,369
Amortized Cost, Due after ten years through twenty years	162,978
Amortized Cost, Due after twenty years	42,059
Amortized Cost	1,717,921	$ 1,269,735
Estimated Fair Value, Due in one year or less	195,433
Estimated Fair Value, Due after one year through five years	860,178
Estimated Fair Value, Due after five years through ten years	401,992
Estimated Fair Value, Due after ten years through twenty years	152,915
Estimated Fair Value, Due after twenty years	33,314
Estimated Fair Value	$ 1,643,832	$ 1,214,635

Investments (Schedule of Invest

Investments (Schedule of Investments Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 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	$ (1,577)	$ (1,493)
Mortgage loans on real estate, held for investment	421,232		$ 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	59,820		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	6,385		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	66,743		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	107,330		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	48,182		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	$ 134,349		$ 36,256

Investments (Schedule of Mortga

Investments (Schedule of Mortgage Loan Investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Mortgage loans on real estate, held for investment	$ 421,232	$ 227,047
0%-59.99%
Mortgage loans on real estate, held for investment	285,205	108,281
60%-69.99%
Mortgage loans on real estate, held for investment	85,990	79,968
70%-79.99%
Mortgage loans on real estate, held for investment	35,536	33,268
80% or greater
Mortgage loans on real estate, held for investment	$ 14,501	$ 5,530

Investments (Components of Net

Investments (Components of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Gross investment income	$ 68,021	$ 34,585	$ 172,636	$ 114,343
Less: investment expenses	(9,447)	(3,911)	(20,711)	(25,273)
Less: amounts charged to reinsurers	(37,778)	(17,736)	(87,688)	(59,349)
Investment income, net of expenses	20,796	12,938	64,237	29,721
Fixed maturities
Gross investment income	47,552	21,466	115,452	69,699
Mortgage loans
Gross investment income	7,636	1,627	20,610	11,265
Other invested assets
Gross investment income	4,654	334	10,117	6,157
Other interest income
Gross investment income	$ 8,179	$ 11,158	$ 26,457	$ 27,222

Investments (Narrative) (Detail

Investments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Impairment on fixed maturities			$ 0
Amortized cost	$ 1,700		1,700		$ 1,200
Fair value	1,700		1,700		1,000
Mortgage backed and asset backed securities at fair value	7,700		7,700		7,700
Mortgage servicing rights MSR impairment recovery			1,400	$ 1,400	$ 1,400
Proceeds from sales of available-for-sale investments	15,000	$ 94,000	28,000	187,600
Gross realized gain	600	100	900	1,500
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life	(14,200)	10,500	16,600	16,800
Mortgage loans on real estate one
Mortgage backed and asset backed securities at fair value	7,700		7,700
Mortgage servicing rights MSR impairment recovery			1,400
Mortgage loans on real estate two
Mortgage servicing rights MSR impairment recovery			600
Maximum
Gross realized losses	$ 100	$ 1,200	$ 100	$ 1,700
Mortgage Loans Secured by Property | New York | Geographic Concentration Risk
Concentration risk percentage			22%		24%
Mortgage Loans Secured by Property | New Jersey | Geographic Concentration Risk
Concentration risk percentage			16%
Mortgage Loans Secured by Property | New Zealand | Geographic Concentration Risk
Concentration risk percentage			14%
Mortgage Loans Secured by Property | Florida | Geographic Concentration Risk
Concentration risk percentage			8%		15%
Mortgage Loans Secured by Property | TEXAS | Geographic Concentration Risk
Concentration risk percentage			5%
Mortgage Loans Secured by Property | Delaware | Geographic Concentration Risk
Concentration risk percentage					10%
Mortgage Loans Secured by Property | California | Geographic Concentration Risk
Concentration risk percentage					6%
Mortgage Loans Secured by Property | Arizona | Geographic Concentration Risk
Concentration risk percentage					5%

Derivative Instruments (Details

Derivative Instruments (Details) $ in Thousands	Sep. 30, 2023 USD ($) contract	Dec. 31, 2022 USD ($) contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Estimated Fair Value	$ 26,559	$ 15,934
Derivatives not designated as hedge | Equity-indexed options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 984,622	$ 831,657
Number of Contracts | contract	705	595
Estimated Fair Value	$ 26,954	$ 15,592
Derivatives not designated as hedge | Equity-indexed embedded derivative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 936,754	$ 782,997
Number of Contracts | contract	7,807	6,131
Estimated Fair Value	$ 146,143	$ 111,618

Derivative Instruments - Funds

Derivative Instruments - Funds Withheld Provision (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total return swap value	$ (2,100)	$ 100	$ 1,800	$ 14,600
Unrealized losses			12,300		$ 10,500
Unrealized gain/(loss) in value	9,453	$ 27,066	15,500	$ 55,577
Funds With held Provision Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	1,057,443		1,057,443		782,573
Market value of assets	1,045,158		1,045,158		772,109
Total return swap value			12,285		10,464
Unrealized loss on embedded derivatives			12,300		10,500
Funds With held Provision Agreement | American Republic Insurance Company
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	169,677		169,677		150,413
Market value of assets	161,920		161,920		143,952
Total return swap value			7,757		6,461
Funds With held Provision Agreement | Crestline SP 1
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	448,450		448,450		354,806
Market value of assets	450,908		450,908		356,374
Total return swap value			(2,458)		(1,568)
Funds With held Provision Agreement | Ironbound Reinsurance Company Limited
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	160,688		160,688		159,644
Market value of assets	154,966		154,966		154,477
Total return swap value			5,722		5,167
Funds With held Provision Agreement | Ascendent Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	65,615		65,615		56,064
Market value of assets	63,998		63,998		54,790
Total return swap value			1,617		1,274
Funds With held Provision Agreement | SRC 4
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	213,013		213,013		61,646
Market value of assets	$ 213,366		213,366		62,516
Total return swap value			$ (353)		$ (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	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 1,643,832	$ 1,214,635
Mortgage loans on real estate, held for investment	421,232	227,047
Derivative instruments (See Note 4)	26,559	15,934
Equity securities, fair value	5,112	5,111
Other Invested assets	126,777	112,431
Investment escrow	1,300	800
Preferred stock	33,926	31,415
Deposits and notes receivable	10,774	8,359
Notes receivable	6,500	6,300
Policy Loans	83	25
Total Investments	2,268,295	1,614,957
Embedded derivative for equity-indexed contracts	146,143	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	12,764	12,434
Total Investments	12,764	12,434
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments (See Note 4)	26,559	15,934
Equity securities, fair value	5,112	5,111
Preferred stock	10,940	9,544
Deposits and notes receivable	7,768	7,053
Total Investments	1,009,614	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	421,232	227,047
Other Invested assets	114,013	99,997
Preferred stock	22,986	21,871
Deposits and notes receivable	3,006	1,306
Policy Loans	83	25
Total Investments	1,245,917	909,218
Embedded derivative for equity-indexed contracts	146,143	111,618
Fixed maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,643,832	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	959,235	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	684,597	558,972
U.S. government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,905	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	1,905	1,262
Mortgage-back securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	482,324	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	482,324	294,066
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	36,374	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	36,374	30,756
Collateralized loan obligation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	376,724	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	376,724	287,673
States and Political Subdivisions - general obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	124	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	124	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	61,784	41,600
Corporate | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	61,784	41,600
Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	684,597	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	$ 684,597	$ 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	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash	$ 197,804	$ 191,414
Liabilities:
Notes payable	25,000	25,000
Fair Value, Inputs, Level 1
Assets
Cash	197,804	191,414
Fair Value, Inputs, Level 3
Assets
Policy loans	83	25
Liabilities:
Policyholder deposits (Deposit-type contracts)	2,453,282	1,743,348
Carrying Amount
Assets
Policy loans	83	25
Cash	197,804	191,414
Liabilities:
Policyholder deposits (Deposit-type contracts)	2,453,282	1,743,348
Fair Value
Assets
Policy loans	83	25
Cash	197,804	191,414
Liabilities:
Policyholder deposits (Deposit-type contracts)	$ 2,453,282	$ 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	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Assets
Beginning Balance	$ 909,218	$ 505,237
Total realized and unrealized gains (losses) Included In Income	(4,874)
Total realized and unrealized gains (losses) Included In AOCI	$ (10,373)	$ (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	$ 351,946	$ 407,441
Ending Balance	1,245,917	909,218
Liabilities
Beginning Balance	(111,618)	(123,692)
Total realized and unrealized gains (losses) Included In Income	$ 33,170	$ (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	$ (67,695)	$ 22,267
Ending Balance	(146,143)	(111,618)
Equity-indexed embedded derivative
Liabilities
Beginning Balance	(111,618)	(123,692)
Total realized and unrealized gains (losses) Included In Income	33,170	(10,193)
Net Purchases, Issuances, Sales, and Settlements	(67,695)	22,267
Ending Balance	(146,143)	(111,618)
Term loans
Assets
Beginning Balance	558,972	267,468
Total realized and unrealized gains (losses) Included In AOCI	(12,054)	(2,683)
Net Purchases, Issuances, Sales, and Settlements	137,679	294,187
Ending Balance	684,597	558,972
Policy loans
Assets
Beginning Balance	25	87
Net Purchases, Issuances, Sales, and Settlements	58	(62)
Ending Balance	83	25
Mortgage loans on real estate, held for investment
Assets
Beginning Balance	227,047	183,203
Net Purchases, Issuances, Sales, and Settlements	194,185	43,844
Ending Balance	421,232	227,047
Deposits and notes receivable
Assets
Beginning Balance	1,306	500
Net Purchases, Issuances, Sales, and Settlements	1,700	806
Ending Balance	3,006	1,306
Other invested assets
Assets
Beginning Balance	99,997	35,293
Total realized and unrealized gains (losses) Included In AOCI	1,681	3,452
Net Purchases, Issuances, Sales, and Settlements	12,335	61,252
Ending Balance	114,013	99,997
Preferred Stock
Assets
Beginning Balance	21,871	18,686
Total realized and unrealized gains (losses) Included In Income	(4,874)
Total realized and unrealized gains (losses) Included In AOCI		(4,229)
Net Purchases, Issuances, Sales, and Settlements	5,989	7,414
Ending Balance	$ 22,986	$ 21,871

Fair Values of Financial Inst_6

Fair Values of Financial Instruments (Summary of unobservable inputs) (Details)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 1,643,832,000	$ 1,214,635,000
Mortgage loans on real estate, held for investment (Allowance for credit losses of $1,577 in 2023.)	421,232,000	227,047,000
Other Invested assets	126,777,000	112,431,000
Preferred stock	33,926,000	31,415,000
Term loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	684,597,000	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 $1,577 in 2023.)	421,232,000	227,047,000
Other Invested assets	114,013,000	99,997,000
Preferred stock	22,986,000	$ 21,871,000
Preferred Stock, Valuation Technique [Extensible Enumeration]		us-gaap:MarketApproachValuationTechniqueMember
Preferred Stock, Measurement Input [Extensible Enumeration]		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	684,597,000	$ 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	$ 146,100,000	$ 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)	0.006	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)	0.029	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	$ 9,800,000	$ 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	$ 684,600,000	$ 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	$ 114,000,000	$ 100,000,000
Alternative Investment, Valuation Technique [Extensible Enumeration]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Preferred stock	$ 10,700,000	$ 31,400,000
Preferred Stock, Valuation Technique [Extensible Enumeration]	us-gaap:MarketApproachValuationTechniqueMember
Preferred Stock, Measurement Input [Extensible Enumeration]	EBITDA Multiple
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	$ 2,500,000	$ 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)	0.125	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 $1,577 in 2023.)	$ 421,200,000	$ 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	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Investment escrow	$ 1,300		$ 800
Equity securities, fair value	5,112		5,111
Notes receivable	6,500		6,300
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	33,900		31,400
Preferred stock	33,926		31,415
Other Invested assets	126,777		112,431
Transfers between levels	0		0
Fair Value, Inputs, Level 2
Equity securities, fair value	5,112		5,111
Preferred stock	10,940		9,544
Fair Value, Inputs, Level 3
Preferred stock	22,986		21,871
Other Invested assets	$ 114,013		99,997
BBB+
Interest rate	5%
Exchange Traded Funds
Equity securities, fair value	$ 5,100		$ 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	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Beginning balance	$ 1,743,348	$ 1,075,439
US Alliance	(452)	(2,176)
Unified Life Insurance Company	(129)	(10)
Deposits received	755,213	745,083
Investment earnings (includes embedded derivative)	33,170	(10,193)
Withdrawals	(95,165)	(51,659)
Policy charges		(820)
Ending balance	2,453,282	1,743,348
Outstanding advances under FHLB funding agreements	68,000
FHLB advances
Outstanding advances under FHLB funding agreements	68,000	29,000
Ironbound Reinsurance Company Limited
Ironbound Reinsurance Company Limited	4,748	5,959
Ascendant Re
Deposit contract	149	(3,185)
Crestline SP 1
Deposit contract	4,402	(11,623)
American Republic Insurance Company
Deposit contract	2,523	(4,080)
SRC4
Deposit contract	$ 5,475	$ 613

Debt (Details)

Debt (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Nov. 22, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Minimum
Line of Credit Facility [Line Items]
Percentage of risk based capital percent		300%		300%
Minimum consolidated liquidity requirement		$ 3		$ 3
Maximum
Line of Credit Facility [Line Items]
Percentage of consolidated debt to capitalization		35%		35%
Credit Agreement
Line of Credit Facility [Line Items]
Interest paid		$ 0.7	$ 0	$ 1.7	$ 0
Revolving Credit Facility | Credit Agreement
Line of Credit Facility [Line Items]
Loan term	3 years
Maximum borrowing capacity	$ 30
Outstanding balance		25		25		$ 25
Unutilized credit		$ 5		$ 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	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Reinsurance
Reinsurance recoverables	$ 27,870	$ 20,190
Deposit-type contracts Direct	2,453,282	1,743,348	$ 1,075,439
Deposit-type contracts Reinsurance ceded	(1,157,854)	(912,982)
Retained deposit-type contracts	$ 1,295,428	$ 830,366

Reinsurance (Schedule of Signif

Reinsurance (Schedule of Significant Reinsurance Balances) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Recoverable on Unpaid Losses	$ 324	$ 195
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	27,598	20,337
Ceded Due Premiums	(52)	(342)
Reinsurance recoverables	$ 27,870	$ 20,190
Ironbound Reinsurance Company Limited [Member]
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 1,327	$ (344)
Reinsurance payable		$ (344)
Reinsurance recoverables	$ 1,327
Optimum Reinsurance Company [Member]
AM Best Rating	A	A
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 690	$ 601
Reinsurance recoverables	$ 690	$ 601
Sagicor Life Insurance Company [Member]
AM Best Rating	A-	A-
Recoverable on Unpaid Losses	$ 299	$ 154
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	10,006	10,744
Ceded Due Premiums	(15)	(303)
Reinsurance recoverables	$ 10,290	$ 10,595
Ascendant Re
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (4,724)	$ (2,130)
Reinsurance payable	$ (4,724)	$ (2,130)
Crestline SP 1
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (9,907)	$ (3,357)
Reinsurance payable	$ (9,907)	$ (3,357)
American Republic Insurance Company
AM Best Rating	A	A
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 6,057	$ 5,879
Reinsurance recoverables	$ 6,057	$ 5,879
SRC4
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ (26,407)	$ (44,442)
Reinsurance payable	$ (26,407)	$ (44,442)
Unified Life Insurance Company
AM Best Rating	NR	NR
Recoverable on Unpaid Losses	$ 25	$ 41
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	772	986
Ceded Due Premiums	(14)	(17)
Reinsurance recoverables	$ 783	$ 1,010
US Alliance Life and Security Company
AM Best Rating	NR	NR
Recoverable/(Payable) on Benefit Reserves/Deposit-type Contracts	$ 49,784	$ 52,400
Ceded Due Premiums	(23)	(22)
Reinsurance recoverables	$ 49,761	$ 52,378

Reinsurance (Ceding commissions

Reinsurance (Ceding commissions deferred) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Gross Ceding Commission	$ 1,384	$ 3,994	$ 7,812	$ 8,346
Expense Allowances	1,207	5,209	7,380	12,668
Interest On Ceding Commissions	358	230	986	623
Earned Ceding Commission	1,392	1,239	4,463	3,251
Deferred gain on coinsurance transactions	44,140		44,140		$ 38,063
Unified Life Insurance Company
Earned Ceding Commission	2	6	14	20
Deferred gain on coinsurance transactions	249		249		217
Ironbound Reinsurance Company Limited [Member]
Interest On Ceding Commissions	45	48	138	146
Earned Ceding Commission	121	123	374	381
Deferred gain on coinsurance transactions	4,750		4,750		4,876
Ascendant Re
Gross Ceding Commission	43		224
Expense Allowances	42		217
Interest On Ceding Commissions	25	23	71	70
Earned Ceding Commission	101	88	287	250
Deferred gain on coinsurance transactions	3,096		3,096		2,947
US Alliance Life and Security Company
Interest On Ceding Commissions	12	13	37	41
Earned Ceding Commission	93	96	249	259
Deferred gain on coinsurance transactions					152
Crestline SP 1
Gross Ceding Commission	492	1,972	2,298	4,497
Expense Allowances	475	2,794	2,106	7,026
Interest On Ceding Commissions	146	103	418	271
Earned Ceding Commission	846	604	2,486	1,669
Deferred gain on coinsurance transactions	19,488		19,488		18,475
American Republic Insurance Company
Gross Ceding Commission		1,144	560	2,971
Expense Allowances	(132)	1,631	621	4,859
Interest On Ceding Commissions	52	38	158	90
Earned Ceding Commission	294	242	856	592
Deferred gain on coinsurance transactions	7,400		7,400		7,502
US Alliance Life and Security Company(3)
Deferred gain on coinsurance transactions	1,961		1,961		2,069
SRC4
Gross Ceding Commission	849	878	4,730	878
Expense Allowances	822	784	4,436	783
Interest On Ceding Commissions	78	5	164	5
Earned Ceding Commission	(65)	$ 80	197	$ 80
Deferred gain on coinsurance transactions	$ 7,196		$ 7,196		$ 1,825

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($) $ in Thousands						9 Months Ended
	Feb. 28, 2023	Sep. 30, 2022	Nov. 10, 2021	Jun. 26, 2021	Apr. 24, 2020	Sep. 30, 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	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Assets [Abstract]
Total investments	$ 2,268,295		$ 1,614,957
Cash and cash equivalents	197,804		191,414
Deferred acquisition costs, net	69,470		43,433			$ 24,530
Premiums receivable	63		362
Accrued investment income	44,694		25,165
Reinsurance recoverables	27,870		20,552
Property and equipment, net	1,721		1,897
Receivable for securities sold			10,518
Other assets	14,335		12,495
Total assets	2,624,252		1,920,431
Liabilities:
Benefit reserves	11,532		12,945
Deposit-type contracts Direct	2,453,282		1,743,348			1,075,439
Other policy-holder funds	4,530		4,105
Notes payable	25,000		25,000
Deferred gain on coinsurance transactions	44,140		38,063
Payable for securities purchased	27,029		8,872
Other liabilities	36,786		53,721
Total liabilities	2,602,299		1,886,054
Stockholders' Equity:
Preferred stock
Voting common stock	4		4
Additional paid-in capital	138,122		138,482
Treasury stock	(175)		(175)
Accumulated deficit	(67,361)		(63,019)
Accumulated other comprehensive loss	(66,886)		(51,386)
Total Midwest Holding Inc.'s stockholders' equity	3,704		23,906
Noncontrolling interests	18,249		10,471
Total stockholders' equity	21,953	$ 29,300	34,377	$ 39,870	$ 64,496	$ 85,756
Total liabilities and stockholders' equity	2,624,252		1,920,431
Reinsurance Contract [Axis]: Reinsurance [Member]
Assets [Abstract]
Total investments	1,055,322		802,780
Cash and cash equivalents	86,685		64,123
Premiums receivable	63
Accrued investment income	25,859		13,858
Reinsurance recoverables	36,814		27,405
Receivable for securities sold	9,650		8,485
Other assets	1,575		236
Total assets	1,215,968		916,887
Liabilities:
Benefit reserves	11,006		11,613
Deposit-type contracts Direct	1,151,528		901,368
Other policy-holder funds	311
Deferred gain on coinsurance transactions	43,724
Other liabilities	9,399		3,906
Total liabilities	1,215,968		916,887
Stockholders' Equity:
Total liabilities and stockholders' equity	1,215,968		916,887
Reinsurance Contract [Axis]: Retained [Member]
Assets [Abstract]
Total investments	1,212,973		812,177
Cash and cash equivalents	111,119		127,291
Deferred acquisition costs, net	69,470		43,433
Accrued investment income	18,835		11,307
Reinsurance recoverables	(8,944)		(6,853)
Property and equipment, net	1,721		1,897
Receivable for securities sold	(9,650)		2,033
Other assets	12,760		12,259
Total assets	1,408,284		1,003,544
Liabilities:
Benefit reserves	526		1,332
Deposit-type contracts Direct	1,301,754		841,980
Other policy-holder funds	4,219		4,105
Notes payable	25,000		25,000
Deferred gain on coinsurance transactions	416		38,063
Payable for securities purchased	27,029		8,872
Other liabilities	27,387		49,815
Total liabilities	1,386,331		969,167
Stockholders' Equity:
Voting common stock	4		4
Additional paid-in capital	138,122		138,482
Treasury stock	(175)		(175)
Accumulated deficit	(67,361)		(63,019)
Accumulated other comprehensive loss	(66,886)		(51,386)
Total Midwest Holding Inc.'s stockholders' equity	3,704		23,906
Noncontrolling interests	18,249		10,471
Total stockholders' equity	21,953		34,377
Total liabilities and stockholders' equity	$ 1,408,284		$ 1,003,544

Income Tax Matters (Schedule of

Income Tax Matters (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deferred tax assets:
Loss carryforwards	$ 4,146	$ 2,672
Capitalized costs	44	79
Stock option granted	1,190	1,066
Policy acquisition costs	9,803	6,489
General business credits	6	6
Sec 163(j) limitation	171	171
Benefit reserves	17,189	12,010
Impairments	535	403
Unrealized losses on investments	17,780	13,624
Other	1,928	1,928
Total deferred tax assets	52,792	38,448
Less valuation allowance	(46,138)	(35,305)
Total deferred tax assets, net of valuation allowance	6,654	3,143
Deferred tax liabilities:
Intangible assets	147	147
Derivative option allowance	4,246	2,150
Bond Discount	2,400	936
Property and equipment	(139)	(90)
Total deferred tax liabilities	6,654	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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Matters
Computed expected income tax benefit (expense)	$ (1,564)	$ (796)	$ (3,921)	$ (2,305)
Reduction (increase) in income taxes resulting from:
Interest maintenance reserve and reinsurance	(47)	176	4	158
Non deductible expenses	(3)	(3)	(9)	(8)
Change in valuation allowance	(2,896)	(641)	(6,677)	(1,693)
Deferred tax adjustment		14
AETR adjustment	(19)		(19)
Prior year true-up	(77)		140
Subtotal of (increases) decreases	(3,042)	(454)	(6,561)	(1,543)
Tax benefit (expense)	$ (4,606)	$ (1,250)	$ (10,482)	$ (3,848)

Income Tax Matters (Narratives)

Income Tax Matters (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2016
Deferred Tax Assets, Valuation Allowance	$ 46,138		$ 46,138		$ 35,305
U.S. federal income tax rate			21%
Net operating loss ("NOL") carryforwards	10,600		$ 10,600				$ 900
Percentage of carry forward year limited taxable income			80%
NOLs carryforwards, valuation allowance	2,200		$ 2,200
Income tax expense (benefit)	$ 4,606	$ 1,250	$ 10,482	$ 3,848
SRC1
Net operating loss ("NOL") carryforwards						$ 3,600

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Noncurrent:
Operating lease right of use assets	$ 1,997	$ 2,119
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Liabilities
Operating lease	$ 2,005	$ 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	Sep. 30, 2023 USD ($)
Operating Leases
2023	$ 112
2024	378
2025	342
2026	345
2027	353
2028	362
2029 and after	1,041
Total remaining lease payments	$ 2,933

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Leases
Operating cash flows from operating leases	$ 100	$ 100	$ 100	$ 100
Weighted Average Remaining Term - Operating lease	8 years 6 months		8 years 6 months		10 years
Weighted Average Discount Rate - Operating lease	8%		8%		8%
Operating lease cost (General and administrative expense)	$ 3	$ 3	$ 10	$ 10

Equity (Narrative) (Details)

Equity (Narrative) (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 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	3,744,645	3,727,976
Common stock, shares outstanding	3,744,645	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		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 29,300	$ 64,496	$ 34,377	$ 85,756	$ 85,756
Other comprehensive (loss) before reclassifications, net of tax	(9,937)	(26,114)	(16,167)	(55,483)
Less: Reclassification adjustments for losses realized in net income, net of tax	484	(952)	667	(94)
Balance	21,953	$ 39,870	21,953	39,870	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			(16,167)		(54,975)
Less: Reclassification adjustments for losses realized in net income, net of tax			667		955
Balance	$ (66,886)		$ (66,886)		$ (51,386)

Long-Term Incentive Plans (Deta

Long-Term Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended			9 Months Ended		12 Months Ended
	Jun. 06, 2023	Jun. 14, 2022	Sep. 30, 2022	Jun. 30, 2021	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2019
Employee stock options					$ 88	$ (672)		$ 691	$ (286)
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)					$ 39.16			39.16
Share price					$ 26.15			$ 26.15
Vested options								$ 100
Options outstanding					$ 1,600			$ 1,600
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)	6,984	18,718		5,089				6,984
Restricted stock granted (in dollars per share)	$ 25.70	$ 11.22		$ 24.34				$ 25.76
Vested (in shares)	16,044							1,163		1,163
Forfeited (in shares)			2,674
Minimum | Stock Options
Vesting period								2 years
Maximum | Stock Options
Vesting period								4 years
Long-Term Incentive Plans.
Restricted stock granted (in shares)								6,984		18,718
Restricted stock granted (in dollars per share)								$ 16.56
2019 LTIP
Employee stock options					100	100		$ 700	700
2019 LTIP | Maximum | Stock Options
Shares authorized												102,000
2020 LTIP
Additional shares authorized										150,000
Employee stock options					$ (700)	$ (700)		$ (300)	$ (300)
2020 LTIP | Maximum | Stock Options
Shares authorized											350,000

Long-Term Incentive Plans (Opti

Long-Term Incentive Plans (Options Outstanding) (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Weighted Average Exercise Price Per Share
Balance at the beginning, weighted average exercise price (in dollars per share)	$ 32.19
Granted (in dollars per share)	17.12
Prior year adjustment (in dollars per share)	39.16
Forfeited (in dollars per share)	46.92
Balance at the end, weighted average exercise price (in dollars per share)	30.90
Range of Option Exercise Prices Per Share
Granted (in dollars per share)	$ 17.20
Total Outstanding
Outstanding at the beginning (in shares) | shares	319,121
Granted (in shares) | shares	5,750
Prior year adjustment (in shares) | shares	(7,390)
Forfeited (in shares) | shares	(19,267)
Outstanding at the end (in shares) | shares	305,604
Outstanding, Non-vested
Outstanding, Non-vested Options at beginning (in shares) | shares	271,517
Granted (in shares) | shares	5,750
Prior year adjustment (in shares) | shares	(7,390)
Forfeited (in shares) | shares	(19,267)
Outstanding, Non-vested Options at ending (in shares) | shares	250,610
Vested and Exercisable
Vested and Exercisable Balance at the beginning (in shares) | shares	47,604
Vested and Exercisable Prior year adjustment (in shares) | shares	7,390
Vested and Exercisable Balance at the end (in shares) | shares	54,994
Minimum
Range of Option Exercise Prices Per Share
Balance at the beginning (in dollars per share)	$ 11.20
Prior year adjustment (in dollars per share)	16.37
Forfeited (in dollars per share)	25
Balance at the end (in dollars per share)	11.20
Maximum
Range of Option Exercise Prices Per Share
Balance at the beginning (in dollars per share)	55.02
Prior year adjustment (in dollars per share)	55.02
Forfeited (in dollars per share)	55.02
Balance at the end (in dollars per share)	$ 55.02

Long-Term Incentive Plans (Op_2

Long-Term Incentive Plans (Option information segregated by ranges of exercise prices) (Details)	9 Months Ended
	Sep. 30, 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	35,853
Outstanding, Exercise price (in dollars per share)	$ 55.02
Outstanding, Remaining term	7 years 7 months 6 days
Vested and exercisable options | shares	6,390
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 3 months 29 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	127,751
Outstanding, Exercise price (in dollars per share)	$ 41.25
Outstanding, Remaining term	7 years 8 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 3 months 29 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	23,600
Outstanding, Exercise price (in dollars per share)	$ 23.36
Outstanding, Remaining term	7 years 6 months 14 days
Vested and exercisable options | shares	5,877
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 14 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	115,000
Outstanding, Exercise price (in dollars per share)	$ 13.43
Outstanding, Remaining term	9 years
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	7 years 3 months 29 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		9 Months Ended	12 Months Ended
	Jun. 06, 2023	Jun. 14, 2022	Sep. 30, 2022	Jun. 30, 2021	Sep. 30, 2023	Dec. 31, 2022
Restricted Stock and Restricted Stock Units (RSUs)
Outstanding at beginning (in shares)					17,207
Granted (in shares)	6,984	18,718		5,089	6,984
Vested (in shares)	(16,044)				(1,163)	(1,163)
Forfeited (in shares)			(2,674)
Released (in shares)					(16,044)
Outstanding at ending (in shares)					8,147	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)	$ 25.70	$ 11.22		$ 24.34	25.76
Weighted average grant-date fair value, Vested (in dollars per share)					50	$ 50
Weighted average grant-date fair value, Awards released (in dollars per share)					11.22
Weighted average grant-date fair value, at the ending (in dollars per share)					$ 22.08	$ 13.84
Vested (in shares)	16,044				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)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair value assumptions
Expected volatility (as a percent)	287.30%
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%
Expected term (in years)	6 years 6 months 14 days
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)		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	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Outstanding, Non-vested Options at beginning (in shares)	271,517
Granted (in shares)	5,750
Forfeited (in shares)	(19,267)
Outstanding, Non-vested Options at ending (in shares)	250,610	271,517
Balance at the beginning, weighted average exercise price (in dollars per share)	$ 32.19
Granted (in dollars per share)	17.12
Prior year adjustment (in dollars per share)	39.16
Balance at the end, weighted average exercise price (in dollars per share)	$ 30.90	$ 32.19
Long-Term Incentive Plans.
Outstanding, Non-vested Options at beginning (in shares)	287,561	317,217
Granted (in shares)	5,750	117,367
Restricted stock granted (in shares)	6,984	18,718
Vested (in shares)	(23,434)	(56,678)
Forfeited (in shares)	(20,517)	(109,063)
Outstanding, Non-vested Options at ending (in shares)	256,344	287,561
Outstanding at beginning (in dollars per share)	$ 16.96	$ 25.80
Options granted (in dollars per share)	16.56	9.57
Restricted stock granted (in dollars per share)	16.56
Vested (in dollars per share)	13.59	21.12
Forfeited (in dollars per share)	27.99	23.82
Outstanding at ending (in dollars per share)	16.92	16.96
Balance at the beginning, weighted average exercise price (in dollars per share)	32.29	40.13
Granted (in dollars per share)	17.12	14.92
Vested, weighted average exercise price (in dollars per share)	55.02	36.53
Forfeited, weighted average exercise price (in dollars per share)	46.92	38.87
Balance at the end, weighted average exercise price (in dollars per share)	$ 30.90	$ 32.29

Statutory Net Income and Surp_3

Statutory Net Income and Surplus (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
SRC1
Statutory net income (loss)	$ (458)	$ 1,129	$ 6,853	$ 181
Statutory Capital and Surplus	14,968		14,968		$ 9,615
SRC3
Statutory net income (loss)	745	1,951	1,662	960
Statutory Capital and Surplus	7,983		7,983		6,088
Premiums Sales		174	123	23,931
American Life and Security Corporation
Statutory net income (loss)	38,395	(1,836)	3,279	16,055
Statutory Capital and Surplus	67,018		67,018		$ 69,936
Premiums Sales	$ 207,689	$ 141,602	$ 438,896	$ 272,218

Third-party Administration (Det

Third-party Administration (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
TPA
Related Party Transaction [Line Items]
Third party assets under management	$ 531.6	$ 501.9

Policy Administration Fees (Det

Policy Administration Fees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Policy Administration Fees
Policy administration fees	$ 874	$ 536	$ 1,992	$ 1,398

Related Party (Details)

Related Party (Details) - USD ($) $ in Millions			3 Months Ended	9 Months Ended
	Jun. 29, 2022	Apr. 24, 2020	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
BBB+
Related Party Transaction [Line Items]
Interest rate			5%	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]
Reinsurance ceded commissions			$ 0.5	$ 2.3
Reinsurance ceded expense reimbursements			0.5	2.1
Assets under management			504.4	504.4	$ 423.6
Additional investments			151.6	151.6	134.3
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			6.5	6.5
Chelsea Holdings Midwest LLC | Series B Preferred Stock | BBB+
Related Party Transaction [Line Items]
Fair market value			1.9	1.9	$ 2.3
Crestline SP 1
Related Party Transaction [Line Items]
Reinsurance ceded amount			$ 534.6	$ 534.6

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2023 USD ($) item	Dec. 31, 2022 USD ($)
American Life and Security Corporation
Other Commitments [Line Items]
Number of jurisdiction licensed | item	25
Unfunded Commitments
Other Commitments [Line Items]
Commitments	$ 223,040	$ 178,995
Commitments reinsurance	158,800
Unfunded Commitment
Due in one year or less	83,137	52,951
Due in two years	41,058	43,604
Due in three years	20,329	7,731
Due in four years	24,947	13,277
Due in five years and after	53,569	61,432
Total	223,040	$ 178,995
Unfunded Commitments | American Life and Security Corporation
Other Commitments [Line Items]
Commitments	64,200
Unfunded Commitment
Total	$ 64,200

Pending Merger (Details)

Pending Merger (Details) - $ / shares	Sep. 30, 2023	Apr. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.001		$ 0.001
Midas Merger Acquisition Sub, Inc
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 0.001
Right to receive per share in cash		$ 27