Federal Life Group, Inc.

CIK:0001743886|SEC Filings

Consolidated Statement of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Insurance revenues	$ 2,120	$ 2,744
Net investment income	2,201	2,107
Net investment gains	574	90
Other revenues	26	49
Total Revenues	4,921	4,990
Benefits and expenses
Policyholder benefits	1,954	3,095
Interest credit to policyholders	70	(48)
Operating costs and expenses	2,459	2,241
Amortization of deferred acquisition and sales inducement costs	371	374
Taxes, licenses and fees	189	197
Dividends to policyholders	18	18
Total Benefits and Expenses	5,061	5,877
Net loss before taxes	(140)	(887)
Tax expense (benefit)	(2)	3
Net loss	(138)	(890)
Other Comprehensive Income (Loss), net of tax:
Unrealized holding gains (losses) arising during the period (net of tax)	4,997	(4,847)
Adjustment to deferred acquisition costs (net of tax)	(649)	582
Other Comprehensive Income (Loss)	4,348	(4,265)
Comprehensive Gain (Loss)	$ 4,210	$ (5,155)
Basic loss per common share	$ (0.04)	$ (0.25)
Diluted loss per common share	$ (0.04)	$ (0.25)

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (138)	$ (890)
Adjustments to reconcile net loss to net cash used in operating activities:
Investment gains, net	(574)	(90)
Amortization on investments	(11)	(21)
Depreciation	47	68
Stock-based compensation	145	0
Deferred insurance acquisition costs	(482)	(506)
Deferred sales inducement costs	(76)	(99)
Interest and amortization of deferred acquisition and sales inducement costs	371	374
Change in value of derivatives and other	(314)	101
Change in accrued investment income	(162)	(25)
Change in receivables	(29)	(654)
Change in reinsurance recoverable	35	75
Change in prepaid reinsurance premiums	(49)	(46)
Change in policy benefits	(937)	(146)
Change in unearned revenue	(25)	(36)
Change in deferred reinsurance settlements	(77)	(75)
Change in other	(57)	45
Net cash used in operating activities	(2,333)	(1,925)
Proceeds from investments sold or matured:
Fixed maturity securities	3,768	5,614
Equity securities	2,827	0
Derivatives	77	128
Policy loans	94	102
Costs of investments purchased:
Fixed maturity securities	(9,286)	(6,093)
Equity securities	(35)	0
Derivatives	(127)	(111)
Real estate additions	(1)	(19)
Purchase of property and equipment	(9)	(24)
Net cash used in investing activities	(2,692)	(403)
Policyholder account balances:
Deposits	3,321	4,459
Withdrawals	(1,707)	(2,417)
Net proceeds received from issuance of shares of common stock	1	0
Net cash provided by financing activities	1,615	2,042
Net decrease in cash	(3,410)	(286)
Cash, beginning of period	33,252	4,085
Cash, end of period	29,842	3,799
Supplemental non-cash activity:
Deferral of sales inducements	$ 76	$ 99

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost: 2019, $192,573; 2018, $187,035)	$ 195,753	$ 184,475
Equity securities, at fair value	3,806	6,004
Policy loans	9,488	9,581
Other invested assets	536	202
Total investments	209,583	200,262
Cash and cash equivalents	29,842	33,252
Real estate, property and equipment, net	2,093	2,130
Accrued investment income	2,069	1,908
Accounts receivable	527	498
Reinsurance recoverables	3,521	3,556
Prepaid reinsurance premiums	1,467	1,418
Deferred policy acquisition costs, net	12,832	13,533
Deferred sales inducement costs, net	1,415	1,348
Deferred tax asset, net		492
Other assets	608	511
Separate account asset	22,922	20,819
Total Assets	286,879	279,727
Policy liabilities and accruals
Policyholder account balance	117,995	116,298
Future life policy benefits	71,444	71,992
Future accident and health policy benefits	355	345
Reserve for deposit type contracts	10,504	10,587
Other policyholder funds	998	1,398
Unearned revenue	1,342	1,367
Deferred reinsurance settlements	2,563	2,641
Deferred tax liability, net	79
Other liabilities	1,513	1,360
Separate account liability	22,922	20,819
Total Liabilities	229,715	226,807
Equity
Common stock, par value $.01 per share, 4,010,250 shares authorized; issued and outstanding: 2019 - 3,530,250 2018 - 3,530,150	35	35
Additional paid-in capital	33,110	33,076
Retained earnings	22,796	21,774
Accumulated other comprehensive income (loss)	1,223	(1,965)
Total Equity	57,164	52,920
Total Liabilities and Equity	$ 286,879	$ 279,727