• Filing Date: 2020-03-23
  • Form Type: 10-K
  • Description: Annual report
v3.20.1
Investments
12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments

The Company from time to time invests in fixed-maturity securities and equity securities, with its fixed-maturity securities classified as available-for-sale. At December 31, 2019, the Company did not hold any available-for-sale securities. At December 31, 2018, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:

 

   

Cost or

Amortized

Cost

   

Gross

Unrealized

Gain

   

Gross

Unrealized

Loss

   

Estimated

Fair

Value ($000)

 
    ($ in thousands)  
As of December 31, 2018                        
Fixed-maturity securities                        
U.S. Treasury and agency securities   $ 991     $ 2     $ -     $ 993  
                                 

 

At December 31, 2018, available-for-sale securities with fair value of $993,000, was held in trust accounts as collateral under reinsurance contacts with the Company’s ceding insurers.

 

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, and equity securities, for the years ended December 31, 2019 and 2018 are as follows:

 

    Gross proceeds from sales    

Gross

Realized

Gains

   

Gross

Realized

Losses

 
    ($ in thousands)  
                   
Year ended December 31, 2019                  
Available-for-sale fixed-maturity securities   $ 994     $ 3     $ -  
                         
                         
Year ended December 31, 2018                        
Available-for-sale fixed-maturity securities   $ 8,340     $ 7     $ (22 )
                         
Equity securities   $ 7,617     $ 475     $ (715 )

 

The Company regularly reviews its individual investment securities for OTTI. The Company considers various factors in determining whether each individual debt security is other-than-temporarily impaired, including:

 

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or income;

 

the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

 

general market conditions and industry or sector specific factors;

 

nonpayment by the issuer of its contractually obligated interest and principal payments; and

 

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

 

There were no available-for-sale securities at December 31, 2019 neither were there any available-for-sale securities in an unrealized loss position at December 31, 2018.

 

Assets Measured at Estimated Fair Value on a Recurring Basis

 

The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis that is reflected in the consolidated balance sheets at carrying value. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2019 and 2018:

 

    Fair Value Measurements Using        
    (Level 1)     (Level 2)     (Level 3)     Total  
As of December 31, 2019   ($ in thousands)  
Financial Assets:                        
Cash and cash equivalents   $ 5,962     $ -     $ -     $ 5,962  
                                 
Restricted cash and cash equivalents   $ 2,054     $ -     $ -     $ 2,054  
                                 
Total equity securities   $ 692     $ -     $ -     $ 692  
                                 
Total   $ 8,708     $ -     $ -     $ 8,708  

 

    Fair Value Measurements Using        
    (Level 1)     (Level 2)     (Level 3)     Total  
As of December 31, 2018   ($ in thousands)  
Financial Assets:                        
Cash and cash equivalents   $ 8,074     $ -     $ -     $ 8,074  
                                 
Restricted cash and cash equivalents   $ 3,225     $ -     $ -     $ 3,225  
                                 
Total fixed-maturity securities   $ -     $ 993     $ -     $ 993  
                                 
Total equity securities   $ 162     $ -     $ -     $ 162  
                                 
Total   $ 11,461     $ 993     $ -     $ 12,454  

 

There were no transfers between Levels 1, 2 and 3 during the years ended December 31, 2019 and 2018.