v3.26.1
Note 3 - Derivative Instruments
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 3.

Derivative Instruments

 

Accounting for Derivative Instruments

 

See Note 4 for a detailed description of the accounting treatment for derivative instruments, including embedded derivatives.

 

Types of Derivatives used by the Company

 

The Company’s derivatives consist of a reinsurance contract allocated hedge recorded through the change in value of embedded derivative in net investment losses on the statement of comprehensive loss.

 

Summary of Derivative Positions

 

The fair value of the Company’s derivative financial instruments on the consolidated balance sheets is as follows:

 

   

June 30, 2026

   

December 31, 2025

   
   

Derivative

   

Derivative

 

Balance

   

Asset

   

Liability

   

Asset

   

Liability

 

Reported In

 

 

(unaudited)

                   
Derivatives:                                  

Embedded derivatives:

                                 

Reinsurance contract allocated hedge

  $ 57,808     $ -     $ 77,197     $ -  

Reinsurance related assets

 

The following tables shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive income (loss):

 

   

Six Months Ending

   

Six Months Ending

 

Balance

   

June 30, 2026

   

June 30, 2025

 

Reported In

   

(unaudited)

   

(unaudited)

   
Derivatives:                  

Embedded derivatives:

                 

Change in reinsurance contract allocated hedge

  $ 37,732     $ (393,963 )

Net investment gains (losses)

 

   

Three Months Ending

   

Three Months Ending

 

Balance

   

June 30, 2026

   

June 30, 2025

 

Reported In

   

(unaudited)

   

(unaudited)

   
Derivatives:                  

Embedded derivatives:

                 

Change in reinsurance contract allocated hedge

  $ (3,114 )   $ (275,201 )

Net investment losses