Federal Life Group, Inc.
A Pennsylvania Corporation
3750 West Deerfield Road Riverwoods, Illinois 60015 Telephone: (847) 520-1900
I.R.S. Employer Identification No.: 82-4944172
ANNUAL REPORT (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2021
Title of each class of security | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $.01 | FLFG | OTC Pink Open Market |
APPLICABLE TO CORPORATE ISSUERS:
As of December 31, 2021, there were 3,647,642 shares of the registrant's common stock, $.01 par value, outstanding.
TABLE OF CONTENTS
CONSOLIDATED BALANCE SHEETS 1
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 3
CONSOLIDATED STATEMENT OF CASH FLOWS 4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
1. | Organization and Basis of Presentation | 6 |
2. | Summary of Significant Accounting Policies | 7 |
3. | Recent Accounting Pronouncements | 7 |
4. | Investments and Related Income | 9 |
5. | Derivative Instruments | 12 |
6. | Deferred Policy Acquisition Costs and Deferred Sales Inducements | 12 |
7. | Fair Value of Financial Instruments | 14 |
8. | Policyholder Liabilities | 17 |
9. | Accumulated Other Comprehensive Income | 18 |
10. | Real Estate | 19 |
11. | Property and Equipment | 19 |
12. | Income Taxes | 19 |
13. | Commitments and Contingent Liabilities | 20 |
14. | Employer's Disclosures About Postretirement Benefits | 20 |
15. | Debt and Federal Home Loan Bank Advances | 20 |
16. | Related Party Transactions | 20 |
17. | Earnings Per Share | 21 |
18. | Reinsurance | 21 |
19. | Management Discussion and Analysis | 21 |
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, 2021
Assets Investments:
December 31, 2020
Fixed maturity securities available for sale, at fair value (amortized cost: 2021, $196,527; 2020, $206,706) $ 206,329 | $ 225,406 |
2,878 8,911
Equity securities, at fair value 4,554
Mortgage loans 1,700 | - |
Other invested assets 2,030 1,552
Policy loans 8,503
Total investments 223,116 | 238,747 |
Cash and cash equivalents 12,835Real
Real estate, property and equipment, net 1,896 | 2,044 |
20,525
Accrued investment income 1,664Accounts
1,810
Accounts receivable 704 | 490 |
Reinsurance recoverables 3,566Prepaid
3,273
Prepaid reinsurance premiums 1,615 | 1,481 |
Deferred policy acquisition costs, net 11,206Deferr
10,208
Other assets 10,568Separate
Deferred sales inducement costs, net 2,083 | 1,892 |
468
Separate account asset 31,207 | 26,929 |
Total Assets $ 300,460 | $ 307,867 |
Policy liabilities and accruals:
Liabilities
Policyholder account balance Future life policy benefits
Future accident and health policy benefits Reserve for deposit type contracts
Other policyholder funds
Unearned revenue
Deferred reinsurance settlements Deferred tax liability, net
Other liabilities
$$
133,818 129,232
67,223 68,979
1,057 320
15,058 12,005
2,802 3,125
1,093 1,224
1,903 2,095
1,276 2,872
1,249 1,014
Separate account liability 31,207 | 26,929 |
247,795
Total Liabilities Equity
Common stock, par value $.01 per share, 4,010,250 shares authorized; issued and outstanding: 2021 - 3,647,642 2020 - 3,630,249
Additional paid-in capital Retained earnings
Accumulated other comprehensive income (loss)
Total Equity
256,686
36
36
34,860 34,342
3,157 13,965
5,721 11,729
43,774
60,072
Total Liabilities and Equity | $ 300,460 | $ 307,867 |
See accompanying notes to unaudited consolidated financial statements
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Year Ended December 31,
2021
2020
Insurance revenues Net investment income Net investment gains
$
14,061 $ 7,941
7,973 8,176
(3,156) 1,885
Other revenues | 556 | 187 |
18,189
Total Revenues 19,434
Benefits and expenses |
11,450
Policyholder benefits 14,167
Interest credit to policyholders 331 308
Operating costs and expenses 11,451 8,434 Amortization of deferred acquisition and sales inducement
costs
Taxes, licenses and fees
Dividends to policyholders | 58 | 60 |
28,23214
Net loss before taxes | (8,798) | (4,616) |
Total Benefits and ExpensesTax expense
1,480745
1,822 731 22,805
13
Net Loss | $ (8,812) | $ (4,629) |
Unrealized holding gains (losses) arising during the period, net of tax
Other Comprehensive Income (Loss), net of tax:
Adjustment to deferred acquisition costs, net of tax
(7,033) 1,025
6,620 (930)
Other Comprehensive Income (Loss) | (6,008) | 5,690 |
$
Comprehensive Income (Loss)
(14,820) $
1,061
Earnings per common share for the periods (Note 17):
Year ended Dec 31, 2021
Year ended Dec 31, 2020
Basic loss per common share | $ (2.42) | $ (1.28) |
$
Diluted loss per common share
$
See accompanying notes to unaudited consolidated financial statements
(2.42)
(1.28)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Balance, January 1, 2020
Net loss for the period Paid in capital
Other comprehensive income
Common StockSharesAmount
3,565,150 $ - 65,099 -
AccumulatedAdditional Paid-In Capital
Other Comprehensive Income (Loss)
(Dollars in thousands)Retained EarningsTotal Stockholders'
Equity
35 $ - 1 -
33,548 $ - 794 -
6,039 $ - - 5,690
18,594 $ (4,629)
58,216 (4,629)
- -
795 5,690
Balance, December 31, 2020 3,630,249 $ 36 | $ 34,342 | $ 11,729 | $ 13,965 | $ 60,072 |
Net loss for the period (8,812)
- | - | - | (8,812) |
- | - | - | (1,996) |
- | 518 | - | 518 |
Stockholder dividends - (1,996)Paid in capital
-17,393
518
Other comprehensive loss - - - (6,008) - | (6,008) |
$
Balance, December 31, 2021
3,647,642
$
36
$
34,860
$
5,721$
See accompanying notes to unaudited consolidated financial statements
3,157
43,774
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Federal Life Group Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 00:21:04 UTC.