Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | AMERINST INSURANCE GROUP LTD | |
Entity Central Index Key | 1,065,201 | |
Trading Symbol | aigt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 995,253 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Fixed maturity investments, available for sale, at fair value (amortized cost $8,701,939 and $7,637,599) | $ 8,799,988 | $ 7,691,186 |
Equity securities, available for sale, at fair value (cost $11,150,478 and $10,418,922) | 14,558,625 | 14,702,845 |
TOTAL INVESTMENTS | 23,358,613 | 22,394,031 |
Cash and cash equivalents | 4,111,302 | 3,073,747 |
Restricted cash and cash equivalents | 9,788 | 608,370 |
Other invested assets | 980,000 | 980,000 |
Assumed reinsurance balances receivable | 1,235,637 | 1,031,992 |
Accrued investment income | 71,953 | 59,342 |
Property and equipment | 230,288 | 130,740 |
Deferred policy acquisition costs | 1,433,389 | 1,066,789 |
Prepaid expenses and other assets | 2,125,290 | 1,042,249 |
TOTAL ASSETS | 33,556,260 | 30,387,260 |
LIABILITIES | ||
Unpaid losses and loss adjustment expenses | 9,143,075 | 6,583,474 |
Unearned premium | 3,874,020 | 2,883,203 |
Assumed reinsurance balances payable | 9 | 269,055 |
Accrued expenses and other liabilities | 3,040,890 | 3,129,906 |
TOTAL LIABILITIES | 16,057,994 | 12,865,638 |
SHAREHOLDERS’ EQUITY | ||
Common shares, $1 par value, 2016 and 2015: 2,000,000 shares authorized, 995,253 issued and outstanding | 995,253 | 995,253 |
Additional paid-in capital | 6,287,293 | 6,287,293 |
Retained earnings | 14,951,739 | 14,213,781 |
Accumulated other comprehensive income | 3,506,196 | 4,337,510 |
Shares held by Subsidiary (342,992 and 345,610 shares) at cost | (8,242,215) | (8,312,215) |
TOTAL SHAREHOLDERS’ EQUITY | 17,498,266 | 17,521,622 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 33,556,260 | $ 30,387,260 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fixed maturity investments, amortized cost | $ 8,701,939 | $ 7,637,599 |
Equity securities, cost | $ 11,150,478 | $ 10,418,922 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common shares, issued (in shares) | 995,253 | 995,253 |
Common shares, outstanding (in shares) | 995,253 | 995,253 |
Shares held by Subsidiary (in shares) | 342,992 | 345,610 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations, Comprehensive Income (Loss) and Retained Earnings (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUE | ||||
Net premiums earned | $ 1,844,243 | $ 1,406,901 | $ 4,960,678 | $ 3,944,388 |
Commission income | 976,514 | 728,969 | 2,957,272 | 2,185,785 |
Net investment income | 63,821 | 55,709 | 209,938 | 186,186 |
Net realized gain on investments | 960,767 | 7,576 | 1,720,881 | 464,772 |
TOTAL REVENUE | 3,845,345 | 2,199,155 | 9,848,769 | 6,781,131 |
LOSSES AND EXPENSES | ||||
Losses and loss adjustment expenses | 1,207,979 | 986,478 | 3,249,245 | 2,648,532 |
Policy acquisition costs | 682,372 | 520,556 | 1,835,457 | 1,459,430 |
Operating and management expenses | 1,192,097 | 1,042,206 | 3,720,350 | 3,437,629 |
TOTAL LOSSES AND EXPENSES | 3,082,448 | 2,549,240 | 8,805,052 | 7,545,591 |
NET INCOME (LOSS) BEFORE TAX | 762,897 | (350,085) | 1,043,717 | (764,460) |
Income tax expense | 0 | 0 | ||
NET INCOME (LOSS) AFTER TAX | 762,897 | (350,085) | 1,043,717 | (764,460) |
OTHER COMPREHENSIVE LOSS | ||||
Net unrealized holding gains (losses) arising during the period | 713,847 | (1,437,636) | 889,567 | (1,474,470) |
Reclassification adjustment for gains included in net income | (960,767) | (7,576) | (1,720,881) | (464,772) |
OTHER COMPREHENSIVE LOSS | (246,920) | (1,445,212) | (831,314) | (1,939,242) |
COMPREHENSIVE INCOME (LOSS) | 515,977 | (1,795,297) | 212,403 | (2,703,702) |
RETAINED EARNINGS, BEGINNING OF PERIOD | 14,351,907 | 15,360,306 | 14,213,781 | 15,926,472 |
Net income (loss) | 762,897 | (350,085) | 1,043,717 | (764,460) |
Dividends | (163,065) | (164,416) | (305,759) | (316,207) |
RETAINED EARNINGS, END OF PERIOD | $ 14,951,739 | $ 14,845,805 | $ 14,951,739 | $ 14,845,805 |
Per share amounts | ||||
Basic and diluted income (loss) (in dollars per share) | $ 1.17 | $ (0.53) | $ 1.60 | $ (1.16) |
Dividends (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Weighted average number of shares outstanding for the entire period (for basic and diluted) (in shares) | 652,261 | 657,666 | 650,952 | 656,529 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net Cash provided by in Operating Activities | $ 1,017,200 | $ 1,542,472 |
INVESTING ACTIVITIES | ||
Movement in restricted cash and cash equivalents | 598,582 | 1,038,452 |
Purchases of property and equipment | (150,587) | (4,290) |
Purchases of available-for-sale securities | (7,048,154) | (4,733,353) |
Proceeds from sales of available-for-sale securities | 4,776,870 | 3,436,202 |
Proceeds from redemptions of fixed maturity investments | 1,114,403 | 35,000 |
Proceeds from maturities of fixed maturity investments | 1,035,000 | 660,000 |
Net Cash provided by Investing Activities | 326,114 | 432,011 |
FINANCING ACTIVITIES | ||
Dividends paid | (305,759) | (316,207) |
Net Cash used in Financing Activities | (305,759) | (316,207) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,037,555 | 1,658,276 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,073,747 | 2,723,369 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 4,111,302 | $ 4,381,645 |
Note 1 - Basis of Preparation a
Note 1 - Basis of Preparation and Consolidation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. BASIS OF PREPARATION AND CONSOLIDATION The condensed consolidated financial statements included herein have been prepared by AmerInst Insurance Group, Ltd. (“AmerInst”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). These financial statements reflect all adjustments consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations as of the end of and for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under U.S. GAAP to be included in a full set of financial statements. In these notes, the terms “we”, “us”, “our” or the “Company” refer to AmerInst and its subsidiaries. These condensed statements should be read in conjunction with the audited consolidated financial statements at and for the year ended December 31, 2015 and notes thereto, included in AmerInst’s Annual Report on Form 10-K for the year then ended. New Accounting Pronouncements Accounting Standards Not Yet Adopted Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standards Update 2016-13 (“ASU 2016-13”), which amends the guidance on impairment of financial instruments and significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the existing “incurred loss” approach, with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the existing other-than -temporary-impairment model. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; without limitation, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services—Insurance Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued Accounting Standards Update 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). Currently, there is no guidance under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective annual periods ending December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. Disclosures about Short-Duration Contracts In May 2015, the FASB issued Accounting Standards Update 2015-09, “Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts” (“ASU 2015-09”). ASU 2015-09 provides enhanced disclosures, on an annual basis, related to the reserve for losses and loss expenses. The enhanced disclosures required by ASU 2015-09 include (1) net incurred and paid claims development information by accident year, (2) a reconciliation of incurred and paid claims development information to the aggregate carrying amount of the reserve for losses and loss expenses, (3) for each accident year presented of incurred claims development information, the total of reserves for incurred but not reported (IBNR), including expected development on reported claims, included in the reserve for losses and loss expenses and a description of the reserving methodologies and changes to the reserving methodologies, and (4) for each accident year presented of incurred claims development information, quantitative information about claims frequency, as well as a description of methodologies used for determining claim frequency information. ASU 2015-09 is effective for annual periods beginning after December 15, 2015, and as such the disclosures will first be presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company is currently assessing the impact the adoption of ASU 2015-09 will have on future disclosures. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 changes current U.S. GAAP for public entities by requiring the following, among others: (1) equity securities, except those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized in net income; (2) the use of the exit price when measuring fair value of financial instruments for disclosure purposes; (3) an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; and (4) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or notes to the financial statements. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-01 will have on future financial statements and disclosures. |
Note 2 - Investments
Note 2 - Investments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 2. INVESTMENTS The cost or amortized cost, gross unrealized holding gains and losses, and estimated fair value of the Company’s fixed maturity investments, by major security type, and equity securities as of September 30, 2016 and December 31, 2015 are as follows: Cost or Gross Gross Estimated As of September 30, 2016 Fixed maturity investments: U.S. government agency securities $ 1,466,039 $ 12,724 $ — $ 1,478,763 Obligations of states and political subdivisions 4,750,545 70,287 (6,495 ) 4,814,337 Corporate debt securities 2,485,355 26,005 (4,472 ) 2,506,888 Total fixed maturity investments 8,701,939 109,016 (10,967 ) 8,799,988 Equity securities 10,868,778 3,274,414 (52,092 ) 14,091,100 Hedge fund 281,700 185,825 — 467,525 Total equity securities 11,150,478 3,460,239 (52,092 ) 14,558,625 Total investments $ 19,852,417 $ 3,569,255 $ (63,059 ) $ 23,358,613 Cost or Gross Gross Estimated As of December 31, 2015 Fixed maturity investments: U.S. government agency securities $ 1,477,979 $ 5,372 $ (3,965 ) $ 1,479,386 Obligations of states and political subdivisions 5,851,938 61,506 (14,888 ) 5,898,556 Corporate debt securities 307,682 5,562 — 313,244 Total fixed maturity investments 7,637,599 72,440 (18,853 ) 7,691,186 Equity securities 9,418,922 3,702,368 (87,838 ) 13,033,452 Hedge fund 1,000,000 669,393 — 1,669,393 Total equity securities 10,418,922 4,371,761 (87,838 ) 14,702,845 Total investments $ 18,056,521 $ 4,444,201 $ (106,691 ) $ 22,394,031 The following tables summarize the Company’s fixed maturity and equity securities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: 12 months or greater Less than 12 months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized As of September 30, 2016 Fixed maturity investments: U.S. government agency securities $ — $ — $ — $ — $ — $ — Obligations of states and political subdivisions — — 1,961,842 (6,495 ) 1,961,842 (6,495 ) Corporate debt securities 476,289 (4,472 ) — — 476,289 (4,472 ) Total fixed maturity investments 476,289 (4,472 ) 1,961,842 (6,495 ) 2,438,131 (10,967 ) Equity securities 113,019 (13,134 ) 866,199 (38,958 ) 979,218 (52,092 ) Hedge fund — — — — — — Total equity securities 113,019 (13,134 ) 866,199 (38,958 ) 979,218 (52,092 ) Total investments $ 589,308 $ (17,606 ) $ 2,828,041 $ (45,453 ) $ 3,417,349 $ (63,059 ) 12 months or greater Less than 12 months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized As of December 31, 2015 Fixed maturity investments: U.S. government agency securities $ — $ — $ 1,025,773 $ (3,965 ) $ 1,025,773 $ (3,965 ) Obligations of states and political subdivisions 1,699,466 (11,744 ) 928,206 (3,144 ) 2,627,672 (14,888 ) Corporate debt securities — — — — — — Total fixed maturity investments 1,699,466 (11,744 ) 1,953,979 (7,109 ) 3,653,445 (18,853 ) Equity securities 141,370 (26,393 ) 790,698 (61,445 ) 932,068 (87,838 ) Hedge fund — — — — — — Total equity securities 141,370 (26,393 ) 790,698 (61,445 ) 932,068 (87,838 ) Total investments $ 1,840,836 $ (38,137 ) $ 2,744,677 $ (68,554 ) $ 4,585,513 $ (106,691 ) As of September 30, 2016 and December 31, 2015, there were 18 and 26 securities in an unrealized loss position with an estimated fair value of $3,417,349 and $4,585,513, respectively. As of September 30, 2016 and December 31, 2015, 9 and 10 of these securities had been in an unrealized loss position for 12 months or greater, respectively. As of September 30, 2016 and December 31, 2015, none of these securities were considered to be other-than-temporarily impaired. The Company has the intent to hold these securities for a sufficient period of time for the value to recover and it is not more likely than not that the Company will be required to sell these securities before their fair value recover above the adjusted cost. The unrealized losses from these securities were not as a result of credit, collateral or structural issues. At September 30, 2016 and December 31, 2015, the Company had investments in certificates of deposit (“CD”) in the amount of $980,000 comprised of fully insured time deposits placed with Federal Deposit Insurance Corporation (“FDIC”) insured commercial banks and savings associations. The FDIC, an independent agency of the United States government, protects depositors up to an amount of $250,000 per depositor, per insured institution. FDIC insurance is backed by the full faith and credit of the United States government. The stated interest rate of an FDIC insured CD varies greatly among commercial banks and savings associations, depending on the term of the CD and the institution’s need for funding. The liquidity of “marketable” CDs is marginal, even though they are assigned an FDIC number, a CUSIP number and are held in book-entry form through the Depository Trust Company. Depending on market liquidity and conditions, the bid price for an FDIC insured CD would reflect the supply of and the demand for deposits of the particular bank or savings association, as well as prevailing interest rates, the remaining term of the deposit, specific features of the CD, and compensation of the broker arranging the sale of the CD. These time deposits have maturities ranging from less than one year to two years and are classified as other invested assets on the Company’s consolidated balance sheet. Other-Than-Temporary Impairment Process The Company assesses whether declines in the fair value of its fixed maturity investments classified as available-for-sale represent impairments that are other-than-temporary by reviewing each fixed maturity investment that is impaired and (1) determining if the Company has the intent to sell the fixed maturity investment or if it is more likely than not that the Company will be required to sell the fixed maturity investment before its anticipated recovery; and (2) assessing whether a credit loss exists, that is, where the Company expects that the present value of the cash flows expected to be collected from the fixed maturity investment are less than the amortized cost basis of the investment. The Company had no planned sales of its fixed maturity investments classified as available-for-sale that were in an unrealized loss position at September 30, 2016. In assessing whether it is more likely than not that the Company will be required to sell a fixed maturity investment before its anticipated recovery, the Company considers various factors including its future cash flow requirements, legal and regulatory requirements, the level of its cash, cash equivalents, short term investments and fixed maturity investments available for sale in an unrealized gain position, and other relevant factors. For the nine months ended September 30, 2016, the Company did not recognize any other-than-temporary impairments due to sales. In evaluating credit losses, the Company considers a variety of factors in the assessment of a fixed maturity investment including: (1) the time period during which there has been a significant decline below cost; (2) the extent of the decline below cost and par; (3) the potential for the fixed maturity investment to recover in value; (4) an analysis of the financial condition of the issuer; (5) the rating of the issuer; and (6) failure of the issuer of the fixed maturity investment to make scheduled interest or principal payments. Equity securities are reviewed on a regular basis to determine if they have sustained an impairment of value that is considered to be other than temporary. Several factors are considered in the assessment of an investment, which include (i) the extent of the decline below cost, and (ii) the potential for the security to recover in value. If we conclude a security is other-than-temporarily impaired, we write down the amortized cost of the security to fair value, with a charge to net realized investment gains (losses) in the Consolidated Statement of Operations. Gross unrealized losses on the investment portfolio as of September 30, 2016 and December 31, 2015, relating to 6 and 11 fixed maturity securities, amounted to $10,967 and $18,853, respectively, and 12 and 15 equity securities, amounted to $52,092 and $87,838, respectively. The unrealized losses on these available for sale fixed maturity securities were not as a result of credit, collateral or structural issues. During the nine months ended and three months ended September 30, 2016, the Company recorded a total other-than-temporary impairment charge of $219,417 and $98,301 on four and two equity security, respectively, as a result of the decline in fair value below cost. During the nine months ended and three months ended September 30, 2015, the Company recorded a total other-than-temporary impairment charge of $536,806 and $297,986 on four and one equity securities, respectively, as a result of the decline in fair value below cost. Fair Value of Investments Under existing U.S. GAAP, we are required to recognize certain assets at their fair value in our consolidated balance sheets. This includes our fixed maturity investments and equity securities. In accordance with the Fair Value Measurements and Disclosures Topic of Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level (Level 1) and unobservable inputs being the lowest level (Level 3). A fair value measurement will fall within the level of the hierarchy based on the inputs that are significant to determining such measurement. The three levels are defined as follows: • Level 1 • Level 2 • Level 3 At each measurement date, we estimate the fair value of the security using various valuation techniques. We utilize, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of our investments. When quoted market prices or observable market inputs are not available, we utilize valuation techniques that rely on unobservable inputs to estimate the fair value of investments. The following describes the valuation techniques we used to determine the fair value of investments held as of September 30, 2016 and December 31, 2015 and what level within the fair value hierarchy each valuation technique resides: • U.S. government agency securities • Obligations of state and political subdivisions • Corporate debt securities • Equity securities, at fair value • Hedge fund While we obtain pricing from independent pricing services, management is ultimately responsible for determining the fair value measurements for all securities. To ensure fair value measurement is applied consistently and in accordance with U.S. GAAP, we periodically update our understanding of the pricing methodologies used by the independent pricing services. We also undertake further analysis with respect to prices we believe may not be representative of fair value under current market conditions. Our review process includes, but is not limited to: (i) initial and ongoing evaluation of the pricing methodologies and valuation models used by outside parties to calculate fair value; (ii) quantitative analysis; (iii) a review of multiple quotes obtained in the pricing process and the range of resulting fair values for each security, if available, and (iv) randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates provided by the independent pricing sources. There have been no material changes to our valuation techniques from what was used as of December 31, 2015. Since the fair value of a security is an estimate of what a willing buyer would pay for such security if we sold it, we cannot know the ultimate value of our securities until they are sold. We believe the valuation techniques utilized provide us with a reasonable estimate of the price that would be received if we were to sell our assets or transfer our liabilities in an orderly market transaction between participants at the measurement date. The following tables show the fair value of the Company’s investments in accordance with ASC 820 as of September 30, 2016 and December 31, 2015: Fair value measurement using: Carrying Total fair Quoted prices Significant other Significant September 30, 2016 U.S. government agency securities $ 1,478,763 $ 1,478,763 $ — $ 1,478,763 $ — Obligations of state and political subdivisions 4,814,337 4,814,337 4,814,337 Corporate debt securities 2,506,888 2,506,888 2,506,888 Total fixed maturity investments 8,799,988 8,799,988 Equity securities (excluding the hedge fund) 14,091,100 14,091,100 14,091,100 Total equity securities (excluding the hedge fund) 14,091,100 14,091,100 Hedge fund measured at net asset value (a) 467,525 467,525 Total investments $ 23,358,613 $ 23,358,613 $ 14,091,100 $ 8,799,988 $ — Fair value measurement using: Carrying Total fair Quoted prices Significant other Significant December 31, 2015 U.S. government agency securities $ 1,479,386 $ 1,479,386 $ — $ 1,479,386 $ — Obligations of state and political subdivisions 5,898,556 5,898,556 5,898,556 Corporate debt securities 313,244 313,244 313,244 Total fixed maturity investments 7,691,186 7,691,186 Equity securities (excluding the hedge fund) 13,033,452 13,033,452 13,033,452 Total equity securities (excluding the hedge fund) 13,033,452 13,033,452 Hedge fund measured at net asset value (a) 1,669,393 1,669,393 Total investments $ 22,394,031 $ 22,394,031 $ 13,033,452 $ 7,691,186 $ — (a) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position There were no transfers between Levels 1 and 2 during the nine months ended September 30, 2016 and the year ended December 31, 2015. The cost or amortized cost and estimated fair value of fixed maturity investments as of September 30, 2016 and December 31, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations without penalties. Amortized Estimated As of September 30, 2016 Due in one year or less $ 2,107,504 $ 2,108,082 Due after one year through five years 5,560,478 5,664,266 Due after five years through ten years 864,990 860,555 Due after ten years 168,967 167,085 Total $ 8,701,939 $ 8,799,988 Amortized Estimated As of December 31, 2015 Due in one year or less $ 1,686,728 $ 1,688,395 Due after one year through five years 5,550,706 5,600,089 Due after five years through ten years 226,799 231,638 Due after ten years 173,366 171,064 Total $ 7,637,599 $ 7,691,186 Information on sales and maturities of investments during the nine months ended September 30, 2016 and 2015 are as follows: September 30, September 30, Total proceeds on sales of available-for-sale securities $ 4,776,870 $ 3,436,202 Proceeds from redemptions of fixed maturity investments 1,114,403 35,000 Total proceeds from maturities of fixed maturity investments 1,035,000 660,000 Gross gains on sales 1,956,107 1,168,098 Gross losses on sales (15,809 ) (166,520 ) Impairment losses (219,417 ) (536,806 ) Information on sales and maturities of investments during the three months ended September 30, 2016 and 2015 are as follows: September 30, September 30, Total proceeds on sales of available-for-sale securities $ 2,232,934 $ 1,619,408 Proceeds from redemptions of fixed maturity investments 1,114,403 35,000 Total proceeds from maturities of fixed maturity investments 330,000 250,000 Gross gains on sales 1,073,665 468,157 Gross losses on sales (14,597 ) (162,595 ) Impairment losses (98,301 ) (297,986 ) Major categories of net investment income during the nine months ended September 30, 2016 and 2015 are summarized as follows: September 30, September 30, Interest earned: Fixed maturity investments $ 139,274 $ 130,025 Short term investments and cash and cash equivalents 3,056 1,414 Dividends earned 169,351 157,138 Investment expenses (101,743 ) (102,391 ) Net investment income $ 209,938 $ 186,186 Major categories of net investment income during the three months ended September 30, 2016 and 2015 are summarized as follows: September 30, September 30, Interest earned: Fixed maturity investments $ 47,245 $ 41,984 Short term investments and cash and cash equivalents 1,152 506 Dividends earned 50,569 47,724 Investment expenses (35,145 ) (34,505 ) Net investment income $ 63,821 $ 55,709 |
Note 3 - Segment Information
Note 3 - Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 3. SEGMENT INFORMATION AmerInst has two reportable segments: (1) reinsurance activity, which also includes investments and other activities, and (2) insurance activity, which offers professional liability solutions to professional service firms under the Agency Agreement with C&F, as defined in the “Overview” section below. The tables below summarize the results of our reportable segments as of and for the nine months ended September 30, 2016 and 2015. As of and for the Nine Months Ended September 30, 2016 Reinsurance Insurance Total Revenues $ 6,891,340 $ 2,957,429 $ 9,848,769 Total losses and expenses 5,878,504 2,926,548 8,805,052 Segment income 1,012,836 30,881 1,043,717 Identifiable assets — 230,288 230,288 As of and for the Nine Months Ended September 30, 2015 Reinsurance Insurance Total Revenues $ 4,594,051 $ 2,187,080 $ 6,781,131 Total losses and expenses 4,920,208 2,625,383 7,545,591 Segment loss (326,157 ) (438,303 ) (764,460 ) Identifiable assets — 169,900 169,900 The tables below summarize the results of our reportable segments as of and for the three months ended September 30, 2016 and 2015. As of and for the Three Months Ended September 30, 2016 Reinsurance Insurance Total Revenues $ 2,869,863 $ 975,482 $ 3,845,345 Total losses and expenses 2,115,268 967,180 3,082,448 Segment income 754,595 8,302 762,897 Identifiable assets — 230,288 230,288 As of and for the Three Months Ended September 30, 2015 Reinsurance Insurance Total Revenues $ 1,469,737 $ 729,418 $ 2,199,155 Total losses and expenses 1,699,764 849,476 2,549,240 Segment loss (230,027 ) (120,058 ) (350,085 ) Identifiable assets — 169,900 169,900 |
Note 4 - Stock Compensation
Note 4 - Stock Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 4. STOCK COMPENSATION AmerInst Professional Services, Limited (“APSL”), a subsidiary of AmerInst, has employment agreements with four key members of senior management, including one of our named executive officers, Kyle Nieman, the President of APSL, which grant them phantom shares of the Company. Under these agreements, these employees were initially granted an aggregate of 75,018 phantom shares of the Company on the date of their employment, subject to certain vesting requirements. The phantom shares are eligible for phantom dividends payable at the same rate as regular dividends on the Company’s common shares. The phantom dividends may be used only to purchase additional phantom shares with the purchase price of such phantom shares being the net book value of the Company’s actual common shares as of the end of the previous quarter. During the three and nine months ended September 30, 2016, 798 and 1,569 phantom shares were granted, respectively, arising from the dividends declared on the Company’s common shares. 84,725 phantom shares were outstanding at September 30, 2016. For three of these employees, including Mr. Nieman, the phantom shares initially granted, as well as any additional shares granted from dividends declared, vested on January 1, 2015. For the fourth employee, the phantom shares initially granted, as well as any additional shares granted from dividends declared, will vest on January 1, 2018. The liability payable to these employees under the phantom share agreements is equal to the value of the phantom shares based on the net book value of the Company’s actual common shares at the end of the previous quarter less the value of phantom shares initially granted and is payable in cash upon the earlier of the employee attaining 65 years of age or within 60 days of such employee’s death or permanent disability, including if such death or permanent disability occurs before January 1, 2018 for the fourth employee. The liability relating to these phantom shares is recalculated quarterly based on the net book value of the Company’s common shares at the end of each quarter. As a result of the overall decrease in the net book value of the Company’s common shares since the grant dates, no liability has been recorded by the Company relating to these phantom shares at September 30, 2016. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The condensed consolidated financial statements included herein have been prepared by AmerInst Insurance Group, Ltd. (“AmerInst”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). These financial statements reflect all adjustments consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations as of the end of and for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated on consolidation. These statements are condensed and do not incorporate all the information required under U.S. GAAP to be included in a full set of financial statements. In these notes, the terms “we”, “us”, “our” or the “Company” refer to AmerInst and its subsidiaries. These condensed statements should be read in conjunction with the audited consolidated financial statements at and for the year ended December 31, 2015 and notes thereto, included in AmerInst’s Annual Report on Form 10-K for the year then ended. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Accounting Standards Not Yet Adopted Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued Accounting Standards Update 2016-13 (“ASU 2016-13”), which amends the guidance on impairment of financial instruments and significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace the existing “incurred loss” approach, with an “expected loss” model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the existing other-than -temporary-impairment model. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; without limitation, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services—Insurance Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued Accounting Standards Update 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). Currently, there is no guidance under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective annual periods ending December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. Disclosures about Short-Duration Contracts In May 2015, the FASB issued Accounting Standards Update 2015-09, “Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts” (“ASU 2015-09”). ASU 2015-09 provides enhanced disclosures, on an annual basis, related to the reserve for losses and loss expenses. The enhanced disclosures required by ASU 2015-09 include (1) net incurred and paid claims development information by accident year, (2) a reconciliation of incurred and paid claims development information to the aggregate carrying amount of the reserve for losses and loss expenses, (3) for each accident year presented of incurred claims development information, the total of reserves for incurred but not reported (IBNR), including expected development on reported claims, included in the reserve for losses and loss expenses and a description of the reserving methodologies and changes to the reserving methodologies, and (4) for each accident year presented of incurred claims development information, quantitative information about claims frequency, as well as a description of methodologies used for determining claim frequency information. ASU 2015-09 is effective for annual periods beginning after December 15, 2015, and as such the disclosures will first be presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The Company is currently assessing the impact the adoption of ASU 2015-09 will have on future disclosures. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 changes current U.S. GAAP for public entities by requiring the following, among others: (1) equity securities, except those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized in net income; (2) the use of the exit price when measuring fair value of financial instruments for disclosure purposes; (3) an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; and (4) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or notes to the financial statements. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods. Early application is permitted. The Company is currently assessing the impact the adoption of ASU 2016-01 will have on future financial statements and disclosures. |
Note 2 - Investments (Tables)
Note 2 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Cost or Gross Gross Estimated As of September 30, 2016 Fixed maturity investments: U.S. government agency securities $ 1,466,039 $ 12,724 $ — $ 1,478,763 Obligations of states and political subdivisions 4,750,545 70,287 (6,495 ) 4,814,337 Corporate debt securities 2,485,355 26,005 (4,472 ) 2,506,888 Total fixed maturity investments 8,701,939 109,016 (10,967 ) 8,799,988 Equity securities 10,868,778 3,274,414 (52,092 ) 14,091,100 Hedge fund 281,700 185,825 — 467,525 Total equity securities 11,150,478 3,460,239 (52,092 ) 14,558,625 Total investments $ 19,852,417 $ 3,569,255 $ (63,059 ) $ 23,358,613 Cost or Gross Gross Estimated As of December 31, 2015 Fixed maturity investments: U.S. government agency securities $ 1,477,979 $ 5,372 $ (3,965 ) $ 1,479,386 Obligations of states and political subdivisions 5,851,938 61,506 (14,888 ) 5,898,556 Corporate debt securities 307,682 5,562 — 313,244 Total fixed maturity investments 7,637,599 72,440 (18,853 ) 7,691,186 Equity securities 9,418,922 3,702,368 (87,838 ) 13,033,452 Hedge fund 1,000,000 669,393 — 1,669,393 Total equity securities 10,418,922 4,371,761 (87,838 ) 14,702,845 Total investments $ 18,056,521 $ 4,444,201 $ (106,691 ) $ 22,394,031 |
Schedule of Unrealized Loss on Investments [Table Text Block] | 12 months or greater Less than 12 months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized As of September 30, 2016 Fixed maturity investments: U.S. government agency securities $ — $ — $ — $ — $ — $ — Obligations of states and political subdivisions — — 1,961,842 (6,495 ) 1,961,842 (6,495 ) Corporate debt securities 476,289 (4,472 ) — — 476,289 (4,472 ) Total fixed maturity investments 476,289 (4,472 ) 1,961,842 (6,495 ) 2,438,131 (10,967 ) Equity securities 113,019 (13,134 ) 866,199 (38,958 ) 979,218 (52,092 ) Hedge fund — — — — — — Total equity securities 113,019 (13,134 ) 866,199 (38,958 ) 979,218 (52,092 ) Total investments $ 589,308 $ (17,606 ) $ 2,828,041 $ (45,453 ) $ 3,417,349 $ (63,059 ) 12 months or greater Less than 12 months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized As of December 31, 2015 Fixed maturity investments: U.S. government agency securities $ — $ — $ 1,025,773 $ (3,965 ) $ 1,025,773 $ (3,965 ) Obligations of states and political subdivisions 1,699,466 (11,744 ) 928,206 (3,144 ) 2,627,672 (14,888 ) Corporate debt securities — — — — — — Total fixed maturity investments 1,699,466 (11,744 ) 1,953,979 (7,109 ) 3,653,445 (18,853 ) Equity securities 141,370 (26,393 ) 790,698 (61,445 ) 932,068 (87,838 ) Hedge fund — — — — — — Total equity securities 141,370 (26,393 ) 790,698 (61,445 ) 932,068 (87,838 ) Total investments $ 1,840,836 $ (38,137 ) $ 2,744,677 $ (68,554 ) $ 4,585,513 $ (106,691 ) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair value measurement using: Carrying Total fair Quoted prices Significant other Significant September 30, 2016 U.S. government agency securities $ 1,478,763 $ 1,478,763 $ — $ 1,478,763 $ — Obligations of state and political subdivisions 4,814,337 4,814,337 4,814,337 Corporate debt securities 2,506,888 2,506,888 2,506,888 Total fixed maturity investments 8,799,988 8,799,988 Equity securities (excluding the hedge fund) 14,091,100 14,091,100 14,091,100 Total equity securities (excluding the hedge fund) 14,091,100 14,091,100 Hedge fund measured at net asset value (a) 467,525 467,525 Total investments $ 23,358,613 $ 23,358,613 $ 14,091,100 $ 8,799,988 $ — Fair value measurement using: Carrying Total fair Quoted prices Significant other Significant December 31, 2015 U.S. government agency securities $ 1,479,386 $ 1,479,386 $ — $ 1,479,386 $ — Obligations of state and political subdivisions 5,898,556 5,898,556 5,898,556 Corporate debt securities 313,244 313,244 313,244 Total fixed maturity investments 7,691,186 7,691,186 Equity securities (excluding the hedge fund) 13,033,452 13,033,452 13,033,452 Total equity securities (excluding the hedge fund) 13,033,452 13,033,452 Hedge fund measured at net asset value (a) 1,669,393 1,669,393 Total investments $ 22,394,031 $ 22,394,031 $ 13,033,452 $ 7,691,186 $ — |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Estimated As of September 30, 2016 Due in one year or less $ 2,107,504 $ 2,108,082 Due after one year through five years 5,560,478 5,664,266 Due after five years through ten years 864,990 860,555 Due after ten years 168,967 167,085 Total $ 8,701,939 $ 8,799,988 Amortized Estimated As of December 31, 2015 Due in one year or less $ 1,686,728 $ 1,688,395 Due after one year through five years 5,550,706 5,600,089 Due after five years through ten years 226,799 231,638 Due after ten years 173,366 171,064 Total $ 7,637,599 $ 7,691,186 |
Realized Gain (Loss) on Investments [Table Text Block] | September 30, September 30, Total proceeds on sales of available-for-sale securities $ 4,776,870 $ 3,436,202 Proceeds from redemptions of fixed maturity investments 1,114,403 35,000 Total proceeds from maturities of fixed maturity investments 1,035,000 660,000 Gross gains on sales 1,956,107 1,168,098 Gross losses on sales (15,809 ) (166,520 ) Impairment losses (219,417 ) (536,806 ) September 30, September 30, Total proceeds on sales of available-for-sale securities $ 2,232,934 $ 1,619,408 Proceeds from redemptions of fixed maturity investments 1,114,403 35,000 Total proceeds from maturities of fixed maturity investments 330,000 250,000 Gross gains on sales 1,073,665 468,157 Gross losses on sales (14,597 ) (162,595 ) Impairment losses (98,301 ) (297,986 ) |
Condensed Cash Flow Statement [Table Text Block] | September 30, September 30, Interest earned: Fixed maturity investments $ 139,274 $ 130,025 Short term investments and cash and cash equivalents 3,056 1,414 Dividends earned 169,351 157,138 Investment expenses (101,743 ) (102,391 ) Net investment income $ 209,938 $ 186,186 September 30, September 30, Interest earned: Fixed maturity investments $ 47,245 $ 41,984 Short term investments and cash and cash equivalents 1,152 506 Dividends earned 50,569 47,724 Investment expenses (35,145 ) (34,505 ) Net investment income $ 63,821 $ 55,709 |
Note 3 - Segment Information (T
Note 3 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | As of and for the Nine Months Ended September 30, 2016 Reinsurance Insurance Total Revenues $ 6,891,340 $ 2,957,429 $ 9,848,769 Total losses and expenses 5,878,504 2,926,548 8,805,052 Segment income 1,012,836 30,881 1,043,717 Identifiable assets — 230,288 230,288 As of and for the Nine Months Ended September 30, 2015 Reinsurance Insurance Total Revenues $ 4,594,051 $ 2,187,080 $ 6,781,131 Total losses and expenses 4,920,208 2,625,383 7,545,591 Segment loss (326,157 ) (438,303 ) (764,460 ) Identifiable assets — 169,900 169,900 As of and for the Three Months Ended September 30, 2016 Reinsurance Insurance Total Revenues $ 2,869,863 $ 975,482 $ 3,845,345 Total losses and expenses 2,115,268 967,180 3,082,448 Segment income 754,595 8,302 762,897 Identifiable assets — 230,288 230,288 As of and for the Three Months Ended September 30, 2015 Reinsurance Insurance Total Revenues $ 1,469,737 $ 729,418 $ 2,199,155 Total losses and expenses 1,699,764 849,476 2,549,240 Segment loss (230,027 ) (120,058 ) (350,085 ) Identifiable assets — 169,900 169,900 |
Note 2 - Investments (Details T
Note 2 - Investments (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Minimum [Member] | |||||
Maturity of Time Deposits | 1 year | ||||
Maximum [Member] | |||||
Maturity of Time Deposits | 2 years | ||||
Fixed Maturity Investments [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 6 | 6 | 11 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 98,301 | $ 297,986 | $ 219,417 | $ 536,806 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 10,967 | $ 10,967 | $ 18,853 | ||
Equity Securities [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 12 | 12 | 15 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 52,092 | $ 52,092 | $ 87,838 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 9 | 9 | 10 | ||
Certificates of Deposit, at Carrying Value | $ 980,000 | $ 980,000 | $ 980,000 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | 0 | $ 0 | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 0 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 18 | 18 | 26 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 3,417,349 | $ 3,417,349 | $ 4,585,513 | ||
Cash, FDIC Insured Amount | 250,000 | 250,000 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 63,059 | $ 63,059 | $ 106,691 | ||
Number of Strategies | 6 |
Note 2 - Investments - Cost or
Note 2 - Investments - Cost or Amortized Cost, Gross Unrealized Holding Gains and Losses, and Estimated Fair Value of Fixed Maturity Investments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | ||
Cost or Amortized Cost | $ 1,466,039 | $ 1,477,979 |
Gross Unrealized Gains | 12,724 | 5,372 |
Gross Unrealized Losses | (3,965) | |
Estimated Fair Value | 1,478,763 | 1,479,386 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Cost or Amortized Cost | 4,750,545 | 5,851,938 |
Gross Unrealized Gains | 70,287 | 61,506 |
Gross Unrealized Losses | (6,495) | (14,888) |
Estimated Fair Value | 4,814,337 | 5,898,556 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ||
Cost or Amortized Cost | 2,485,355 | 307,682 |
Gross Unrealized Gains | 26,005 | 5,562 |
Gross Unrealized Losses | (4,472) | |
Estimated Fair Value | 2,506,888 | 313,244 |
Fixed Maturities [Member] | ||
Cost or Amortized Cost | 8,701,939 | 7,637,599 |
Gross Unrealized Gains | 109,016 | 72,440 |
Gross Unrealized Losses | (10,967) | (18,853) |
Estimated Fair Value | 8,799,988 | 7,691,186 |
Equity Securities [Member] | ||
Cost or Amortized Cost | 10,868,778 | 9,418,922 |
Gross Unrealized Gains | 3,274,414 | 3,702,368 |
Gross Unrealized Losses | (52,092) | (87,838) |
Estimated Fair Value | 14,091,100 | 13,033,452 |
Hedge Funds [Member] | ||
Cost or Amortized Cost | 281,700 | 1,000,000 |
Gross Unrealized Gains | 185,825 | 669,393 |
Gross Unrealized Losses | ||
Estimated Fair Value | 467,525 | 1,669,393 |
Equity Securities and Hedge Funds [Member] | ||
Cost or Amortized Cost | 11,150,478 | 10,418,922 |
Gross Unrealized Gains | 3,460,239 | 4,371,761 |
Gross Unrealized Losses | (52,092) | (87,838) |
Estimated Fair Value | 14,558,625 | 14,702,845 |
Cost or Amortized Cost | 19,852,417 | 18,056,521 |
Gross Unrealized Gains | 3,569,255 | 4,444,201 |
Gross Unrealized Losses | (63,059) | (106,691) |
Estimated Fair Value | $ 23,358,613 | $ 22,394,031 |
Note 2 - Investments - Fixed Ma
Note 2 - Investments - Fixed Maturity and Securities in an Unrealized Loss Position and Aggregate Fair Value and Gross Unrealized Loss (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US Government Agencies Debt Securities [Member] | Fixed Maturities [Member] | ||
12 months or greater, estimated fair value | ||
12 months or greater, unrealized losses | ||
Less than 12 months, estimated fair value | 1,025,773 | |
Less than 12 months, unrealized losses | (3,965) | |
Total estimated fair value | 1,025,773 | |
Total unrealized losses | (3,965) | |
US States and Political Subdivisions Debt Securities [Member] | Fixed Maturities [Member] | ||
12 months or greater, estimated fair value | 1,699,466 | |
12 months or greater, unrealized losses | (11,744) | |
Less than 12 months, estimated fair value | 1,961,842 | 928,206 |
Less than 12 months, unrealized losses | (6,495) | (3,144) |
Total estimated fair value | 1,961,842 | 2,627,672 |
Total unrealized losses | (6,495) | (14,888) |
Corporate Debt Securities [Member] | Fixed Maturities [Member] | ||
12 months or greater, estimated fair value | 476,289 | |
12 months or greater, unrealized losses | (4,472) | |
Less than 12 months, estimated fair value | ||
Less than 12 months, unrealized losses | ||
Total estimated fair value | 476,289 | |
Total unrealized losses | (4,472) | |
Equity Securities and Hedge Funds [Member] | ||
12 months or greater, estimated fair value | 113,019 | 141,370 |
12 months or greater, unrealized losses | (13,134) | (26,393) |
Less than 12 months, estimated fair value | 866,199 | 790,698 |
Less than 12 months, unrealized losses | (38,958) | (61,445) |
Total estimated fair value | 979,218 | 932,068 |
Total unrealized losses | (52,092) | (87,838) |
Fixed Maturities [Member] | ||
12 months or greater, estimated fair value | 476,289 | 1,699,466 |
12 months or greater, unrealized losses | (4,472) | (11,744) |
Less than 12 months, estimated fair value | 1,961,842 | 1,953,979 |
Less than 12 months, unrealized losses | (6,495) | (7,109) |
Total estimated fair value | 2,438,131 | 3,653,445 |
Total unrealized losses | (10,967) | (18,853) |
Equity Securities [Member] | ||
12 months or greater, estimated fair value | 113,019 | 141,370 |
12 months or greater, unrealized losses | (13,134) | (26,393) |
Less than 12 months, estimated fair value | 866,199 | 790,698 |
Less than 12 months, unrealized losses | (38,958) | (61,445) |
Total estimated fair value | 979,218 | 932,068 |
Total unrealized losses | (52,092) | (87,838) |
Hedge Funds [Member] | ||
12 months or greater, estimated fair value | ||
12 months or greater, unrealized losses | ||
Less than 12 months, estimated fair value | ||
Less than 12 months, unrealized losses | ||
Total estimated fair value | ||
Total unrealized losses | ||
12 months or greater, estimated fair value | 589,308 | 1,840,836 |
12 months or greater, unrealized losses | (17,606) | (38,137) |
Less than 12 months, estimated fair value | 2,828,041 | 2,744,677 |
Less than 12 months, unrealized losses | (45,453) | (68,554) |
Total estimated fair value | 3,417,349 | 4,585,513 |
Total unrealized losses | $ (63,059) | $ (106,691) |
Note 2 - Investments - Fair Val
Note 2 - Investments - Fair Value of Investments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | |
Reported Value Measurement [Member] | Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | |||
Total Investments | $ 1,478,763 | $ 1,479,386 | |
Reported Value Measurement [Member] | Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Total Investments | 4,814,337 | 5,898,556 | |
Reported Value Measurement [Member] | Fixed Maturities [Member] | Corporate Debt Securities [Member] | |||
Total Investments | 2,506,888 | 313,244 | |
Reported Value Measurement [Member] | Fixed Maturities [Member] | |||
Total Investments | 8,799,988 | 7,691,186 | |
Reported Value Measurement [Member] | Equity Securities [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Reported Value Measurement [Member] | Hedge Funds [Member] | |||
Total Investments | [1] | 467,525 | 1,669,393 |
Reported Value Measurement [Member] | Equity Securities and Hedge Funds [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Reported Value Measurement [Member] | |||
Total Investments | 23,358,613 | 22,394,031 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Total Investments | 1,478,763 | 1,479,386 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | US Government Agencies Debt Securities [Member] | |||
Total Investments | 1,478,763 | 1,479,386 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Total Investments | 4,814,337 | 5,898,556 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Total Investments | 4,814,337 | 5,898,556 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Total Investments | 2,506,888 | 313,244 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | Corporate Debt Securities [Member] | |||
Total Investments | 2,506,888 | 313,244 | |
Estimate of Fair Value Measurement [Member] | Fixed Maturities [Member] | |||
Total Investments | 8,799,988 | 7,691,186 | |
Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Estimate of Fair Value Measurement [Member] | Equity Securities [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Estimate of Fair Value Measurement [Member] | Hedge Funds [Member] | |||
Total Investments | [1] | 467,525 | 1,669,393 |
Estimate of Fair Value Measurement [Member] | Equity Securities and Hedge Funds [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Total Investments | 8,799,988 | 7,691,186 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Total Investments | 14,091,100 | 13,033,452 | |
Estimate of Fair Value Measurement [Member] | |||
Total Investments | 23,358,613 | 22,394,031 | |
Total Investments | $ 23,358,613 | $ 22,394,031 | |
[1] | In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Note 2 - Investments - Cost o17
Note 2 - Investments - Cost or Amortized Cost and Estimated Fair Value of Fixed Maturity Investments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due in one year or less | $ 2,107,504 | $ 1,686,728 |
Due in one year or less, fair value | 2,108,082 | 1,688,395 |
Due after one year through five years | 5,560,478 | 5,550,706 |
Due after one year through five years, fair value | 5,664,266 | 5,600,089 |
Due after five years through ten years | 864,990 | 226,799 |
Due after five years through ten years, fair value | 860,555 | 231,638 |
Due after ten years | 168,967 | 173,366 |
Due after ten years, fair value | 167,085 | 171,064 |
Fixed maturity investments, amortized cost | 8,701,939 | 7,637,599 |
Total, fair value | $ 8,799,988 | $ 7,691,186 |
Note 2 - Investments - Sales an
Note 2 - Investments - Sales and Maturities of Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total proceeds on sales of available-for-sale securities | $ 2,232,934 | $ 1,619,408 | $ 4,776,870 | $ 3,436,202 |
Proceeds from redemptions of fixed maturity investments | 1,114,403 | 35,000 | 1,114,403 | 35,000 |
Total proceeds from maturities of fixed maturity investments | 330,000 | 250,000 | 1,035,000 | 660,000 |
Gross gains on sales | 1,073,665 | 468,157 | 1,956,107 | 1,168,098 |
Gross losses on sales | (14,597) | (162,595) | (15,809) | (166,520) |
Impairment losses | $ (98,301) | $ (297,986) | $ (219,417) | $ (536,806) |
Note 2 - Investments - Major Ca
Note 2 - Investments - Major Categories of Net Interest and Dividend Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fixed maturity investments | $ 47,245 | $ 41,984 | $ 139,274 | $ 130,025 |
Short term investments and cash and cash equivalents | 1,152 | 506 | 3,056 | 1,414 |
Dividends earned | 50,569 | 47,724 | 169,351 | 157,138 |
Investment expenses | (35,145) | (34,505) | (101,743) | (102,391) |
Net investment income | 63,821 | 55,709 | 209,938 | 186,186 |
Net investment income | $ 63,821 | $ 55,709 | $ 209,938 | $ 186,186 |
Note 3 - Segment Information (D
Note 3 - Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Number of Reportable Segments | 2 |
Note 3 - Segment information -
Note 3 - Segment information - Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Reinsurance Segment [Member] | |||||
Revenues | $ 2,869,863 | $ 1,469,737 | $ 6,891,340 | $ 4,594,051 | |
Total losses and expenses | 2,115,268 | 1,699,764 | 5,878,504 | 4,920,208 | |
Net income (loss) | 754,595 | (230,027) | 1,012,836 | (326,157) | |
Property and equipment | |||||
Insurance Segment [Member] | |||||
Revenues | 975,482 | 729,418 | 2,957,429 | 2,187,080 | |
Total losses and expenses | 967,180 | 849,476 | 2,926,548 | 2,625,383 | |
Net income (loss) | 8,302 | (120,058) | 30,881 | (438,303) | |
Property and equipment | 230,288 | 169,900 | 230,288 | 169,900 | |
Revenues | 3,845,345 | 2,199,155 | 9,848,769 | 6,781,131 | |
Total losses and expenses | 3,082,448 | 2,549,240 | 8,805,052 | 7,545,591 | |
Net income (loss) | 762,897 | (350,085) | 1,043,717 | (764,460) | |
Property and equipment | $ 230,288 | $ 169,900 | $ 230,288 | $ 169,900 | $ 130,740 |
Note 4 - Stock Compensation (De
Note 4 - Stock Compensation (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Dec. 31, 2012shares | |
Phantom Share Units (PSUs) [Member] | |||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 798 | 1,569 | 75,018 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 84,725 | 84,725 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Value, Payable Requisite Employee Age | 65 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Value, Payable Period before Death or Permanent Disability | 60 days | ||
Number of Employees in Plan | 4 | 4 |