M A N A G E M E N T ’ S D I S C U S S I O N & A N A L Y S I S
Executive Overview Directors Investment Group, Inc. (DIG), a Nevada corporation, is the parent company for a diverse group of companies with a focus on two strategic industries – life insurance and financial services. The combined financial statements of Directors Investment Group, Inc. include all accounts of DIG and its subsidiaries (the Company) accounted for on a Generally Accepted Accounting Principles basis with the exception of the insurance subsidiaries that are accounted for on a Statutory Accounting Principles basis. The subsidiaries include Directors Capital Ventures, Inc. (DCVI), Directors Holding Corporation (DHC), Directors Air Corporation (DAC), Parkway Advisors Group, Inc. (PAGI), and Parkway Advisors Holdings, Inc. (PAHI) and Funeral Agency, Inc. (FAI). Additionally, the limited partnerships owned by the subsidiaries are included in the combined statement. The limited partnerships are Directors Real Estate Management LP (DREMLP), Parkway Advisors LP (PALP), and Directors Agency LP (DALP). In April of 2015, DIG acquired 87% majority ownership in Passare, Inc. (Passare) in exchange for outstanding debt. During the second half of 2019, DIG acquired the remaining shares of Passare in exchange for cash or equivalent value in treasury shares. Effective January 1, 2020, Passare was merged into DIG and as a legal entity ceased to exist. Going forward, Passare operations will continue to be reported separately, but as a division of DIG. The insurance company subsidiaries include Funeral Directors Life Insurance Company (FDLIC), Kentucky Funeral Directors Life Insurance Company (KFDLIC), and Funeral Directors Life of Louisiana (FDLA). FDLA was created in June of 2019 in response to the requests of Louisiana funeral home clients in order to address insurance licensing issues in the state. The value of the insurance company subsidiaries is recorded on the books of the Company at book value in accordance with the methods set forth by the National Association of Insurance Commissioners (NAIC). The sections that follow provide information about the important aspects of our operations and investments, both at the combined and subsidiary levels, and includes discussion of our results of operations. The accounting periods for all of the entities end on December 31.
DIRECTORS INVESTMENT GROUP, INC.
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