Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 10, 2021 | Jun. 30, 2020 | |
Cover page. | |||
Entity Registrant Name | ATLANTIC AMERICAN CORP | ||
Entity Central Index Key | 0000008177 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, State or Province | GA | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,720,805 | ||
Entity Common Stock, Shares Outstanding | 20,415,243 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 19,319 | $ 12,893 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost: $222,461 and $219,233) | 254,106 | 232,472 |
Equity securities, at fair value (cost: $6,393 and $7,168) | 18,716 | 22,922 |
Other invested assets (cost: $3,765 and $9,908) | 3,238 | 9,960 |
Policy loans | 1,975 | 2,007 |
Real estate | 38 | 38 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
Total investments | 279,311 | 268,637 |
Receivables: | ||
Reinsurance | 29,086 | 32,135 |
Insurance premiums and other, net of allowance for doubtful accounts of $198 and $183 as of 2020 and 2019, respectively | 27,512 | 13,134 |
Deferred income taxes, net | 0 | 314 |
Deferred acquisition costs | 39,611 | 38,861 |
Other assets | 7,804 | 9,108 |
Intangibles | 2,544 | 2,544 |
Total assets | 405,187 | 377,626 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Future policy benefits | 90,872 | 92,490 |
Unearned premiums | 27,131 | 26,035 |
Losses and claims | 79,147 | 81,448 |
Other policy liabilities | 1,526 | 1,933 |
Total insurance reserves and policyholder funds | 198,676 | 201,906 |
Accounts payable and accrued expenses | 26,412 | 23,588 |
Deferred income taxes, net | 1,301 | 0 |
Junior subordinated debenture obligations, net | 33,738 | 33,738 |
Total liabilities | 260,127 | 259,232 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value | 55 | 55 |
Common stock, $1 par, 50,000,000 shares authorized; 22,400,894 shares issued; 20,415,243 and 20,472,162 shares outstanding as of 2020 and 2019, respectively | 22,401 | 22,401 |
Additional paid-in capital | 57,437 | 57,820 |
Retained earnings | 47,790 | 36,020 |
Accumulated other comprehensive income | 25,000 | 10,459 |
Unearned stock grant compensation | (284) | (781) |
Treasury stock, at cost, 1,985,651 and 1,928,732 shares as of 2020 and 2019, respectively | (7,339) | (7,580) |
Total shareholders' equity | 145,060 | 118,394 |
Total liabilities and shareholders' equity | $ 405,187 | $ 377,626 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturities, cost | $ 222,461 | $ 219,233 |
Equity securities, cost | 6,393 | 7,168 |
Other invested assets, cost | 3,765 | 9,908 |
Receivables: | ||
Insurance premiums and other, allowance for doubtful accounts | $ 198 | $ 183 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 55,000 | 55,000 |
Preferred stock, shares outstanding (in shares) | 55,000 | 55,000 |
Preferred stock, redemption value | $ 5,500 | $ 5,500 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,400,894 | 22,400,894 |
Common stock, shares outstanding (in shares) | 20,415,243 | 20,472,162 |
Treasury stock, at cost (in shares) | 1,985,651 | 1,928,732 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | ||
Insurance premiums, net | $ 183,539 | $ 181,925 |
Net investment income | 7,744 | 8,979 |
Realized investment gains, net | 7,420 | 1,574 |
Unrealized gains (losses) on equity securities, net | (3,431) | 5,511 |
Other income | 76 | 190 |
Total revenue | 195,348 | 198,179 |
Benefits and expenses: | ||
Insurance benefits and losses incurred | 119,876 | 139,225 |
Commissions and underwriting expenses | 46,811 | 45,477 |
Interest expense | 1,610 | 2,130 |
Other expense | 11,548 | 11,754 |
Total benefits and expenses | 179,845 | 198,586 |
Income (loss) before income taxes | 15,503 | (407) |
Income tax expense (benefit) | 3,334 | (21) |
Net income (loss) | 12,169 | (386) |
Preferred stock dividends | (399) | (399) |
Net income (loss) applicable to common shareholders | $ 11,770 | $ (785) |
Earnings (loss) per common share (basic) (in dollars per share) | $ 0.58 | $ (0.04) |
Earnings (loss) per common share (diluted) (in dollars per share) | $ 0.56 | $ (0.04) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net Income (loss) | $ 12,169 | $ (386) |
Available-for-sale fixed maturity securities: | ||
Gross unrealized holding gain arising in the period | 18,791 | 23,130 |
Related income tax effect | (3,946) | (4,857) |
Subtotal | 14,845 | 18,273 |
Less: reclassification adjustment for net realized gains included in net income (loss) | (385) | (353) |
Related income tax effect | 81 | 74 |
Subtotal | (304) | (279) |
Total other comprehensive income, net of tax | 14,541 | 17,994 |
Total comprehensive income | $ 26,710 | $ 17,608 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Stock Grant Compensation [Member] | Treasury Stock [Member] | Total |
Balance, beginning of year at Dec. 31, 2018 | $ 55 | $ 22,401 | $ 57,414 | $ 37,208 | $ (7,535) | $ (186) | $ (7,985) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (386) | $ (386) | ||||||
Other comprehensive income, net of tax | 17,994 | 17,994 | ||||||
Dividends on common stock | (403) | |||||||
Dividends accrued on preferred stock | (399) | |||||||
Restricted stock grants, net of forfeitures | 396 | (948) | 552 | |||||
Amortization of unearned compensation | 353 | |||||||
Purchase of shares for treasury | (71) | |||||||
Net shares acquired related to employee share-based compensation plans | (92) | |||||||
Issuance of shares under stock plans | 10 | 16 | ||||||
Balance, end of year at Dec. 31, 2019 | 55 | 22,401 | 57,820 | 36,020 | 10,459 | (781) | (7,580) | $ 118,394 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock per share (in dollars per share) | $ (0.02) | |||||||
Net income (loss) | 12,169 | $ 12,169 | ||||||
Other comprehensive income, net of tax | 14,541 | 14,541 | ||||||
Dividends on common stock | 0 | |||||||
Dividends accrued on preferred stock | (399) | |||||||
Restricted stock grants, net of forfeitures | (376) | 60 | 316 | |||||
Amortization of unearned compensation | 437 | |||||||
Purchase of shares for treasury | 0 | |||||||
Net shares acquired related to employee share-based compensation plans | (91) | |||||||
Issuance of shares under stock plans | (7) | 16 | ||||||
Balance, end of year at Dec. 31, 2020 | $ 55 | $ 22,401 | $ 57,437 | $ 47,790 | $ 25,000 | $ (284) | $ (7,339) | $ 145,060 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared on common stock per share (in dollars per share) | $ 0 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Treasury Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Treasury shares purchased (in shares) | 0 | 26,210 |
Restricted shares issued (in shares) | 20,000 | 355,000 |
Shares issued under stock plans (in shares) | 4,701 | 10,862 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net Income (loss) | $ 12,169 | $ (386) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Amortization of deferred acquisition costs | 19,393 | 17,288 |
Acquisition costs deferred | (20,143) | (19,055) |
Realized investment gains, net | (7,420) | (1,574) |
Unrealized (gains) losses on equity securities, net | 3,431 | (5,511) |
Distributions received from equity method investees | 0 | 379 |
Compensation expense related to share awards | 437 | 353 |
Depreciation and amortization | 980 | 996 |
Deferred income tax benefit | (2,250) | (913) |
(Increase) decrease in receivables, net | 1,349 | (4,709) |
Increase (decrease) in insurance reserves and policyholder funds | (3,230) | 12,858 |
Increase in accounts payable and accrued expenses | 2,324 | 3,472 |
Other, net | 1,931 | (5,005) |
Net cash provided by (used in) operating activities | 8,971 | (1,807) |
Cash flows from investing activities: | ||
Proceeds from investments sold | 18,541 | 120,950 |
Proceeds from investments matured, called or redeemed | 7,117 | 6,157 |
Investments purchased | (27,489) | (124,029) |
Additions to property and equipment | (233) | (69) |
Net cash (used in) provided by investing activities | (2,064) | 3,009 |
Cash flows from financing activities: | ||
Payment of dividends on Series D preferred stock | (399) | (399) |
Payment of dividends on common stock | 0 | (403) |
Proceeds from shares issued under stock plans | 9 | 26 |
Treasury stock acquired - share repurchase authorization | 0 | (71) |
Treasury stock acquired - net employee share-based compensation | (91) | (92) |
Net cash used in financing activities | (481) | (939) |
Net increase in cash | 6,426 | 263 |
Cash and cash equivalents at beginning of year | 12,893 | 12,630 |
Cash and cash equivalents at end of year | 19,319 | 12,893 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 1,665 | 2,155 |
Cash paid for income taxes | 3,883 | 1,662 |
Non-cash investing activities: | ||
Receivable from sale of other invested assets | $ 12,678 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. At December 31, 2020, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity. Premium Revenue and Cost Recognition Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). Intangibles Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented. Investments The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. As of December 31, 2020, the Company owned a certain equity security in the amount of $143, with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. As of December 31, 2020, all fixed maturities were valued using publicly quoted market prices or techniques with observable inputs. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a fixed maturity security or other invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income. Income Taxes Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized. Earnings Per Common Share Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase. Reinsurance The Company enters into reinsurance agreements with other companies in the normal course of business. For each reinsurance agreement, the Company determines if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. Reinsurance premiums from assumed business are estimated based on information received from ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the period in which they are determined. Share-Based Transactions For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date. Treasury Stock Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued. Recently Issued Accounting Standards Adoption of New Accounting Standards Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. Goodwill. Future Adoption of New Accounting Standards Reference Rate Reform Investments – Equity Securities. Income Taxes – Simplifying the Accounting for Income Taxes. Accounting for Long-Duration Contracts. Financial Instruments – Credit Losses. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | Note 2. Investments The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of December 31, 2020 and December 31, 2019. Fixed maturities were comprised of the following: 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 30,762 $ 1,381 $ 26 $ 29,407 Obligations of states and political subdivisions 11,802 898 — 10,904 Corporate securities: Utilities and telecom 30,359 4,423 — 25,936 Financial services 78,258 9,811 6 68,453 Other business – diversified 41,145 5,689 15 35,471 Other consumer – diversified 61,530 9,479 47 52,098 Total corporate securities 211,292 29,402 68 181,958 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 254,106 $ 31,739 $ 94 $ 222,461 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 20,259 $ 467 $ 53 $ 19,845 Obligations of states and political subdivisions 11,940 371 53 11,622 Corporate securities: Utilities and telecom 26,648 2,404 32 24,276 Financial services 73,917 4,249 57 69,725 Other business – diversified 41,706 2,335 98 39,469 Other consumer – diversified 57,752 3,702 54 54,104 Total corporate securities 200,023 12,690 241 187,574 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 232,472 $ 13,586 $ 347 $ 219,233 Bonds having an amortized cost of $10,670 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2020 and 2019, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $1,997 and $0 and included in the tables above were pledged as collateral to FHLB at December 31, 2020 and 2019, respectively. 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Equity securities: Common and non-redeemable preferred stocks: Financial services 2,111 351 — 1,760 Other business – diversified 16,605 11,972 — 4,633 Total equity securities $ 18,716 $ 12,323 $ — $ 6,393 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Equity securities: Common and non-redeemable preferred stocks: Financial services 3,159 624 — 2,535 Other business – diversified 19,763 15,130 — 4,633 Total equity securities $ 22,922 $ 15,754 $ — $ 7,168 The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2020 and 2019 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. 2020 2019 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 2,041 $ 2,015 $ — $ — Due after one year through five years 18,373 17,039 14,664 14,280 Due after five years through ten years 89,892 79,993 77,934 73,521 Due after ten years 124,609 104,527 130,680 122,321 Asset backed securities 19,191 18,887 9,194 9,111 Totals $ 254,106 $ 222,461 $ 232,472 $ 219,233 The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2020 and 2019. 2020 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 7,045 $ 26 $ — $ — $ 7,045 $ 26 Corporate securities 4,602 68 — — 4,602 68 Total temporarily impaired securities $ 11,647 $ 94 $ — $ — $ 11,647 $ 94 2019 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 3,432 $ 22 $ 3,533 $ 31 $ 6,965 $ 53 Obligations of states and political subdivisions 3,106 53 — — 3,106 53 Corporate securities 23,245 145 2,504 96 25,749 241 Total temporarily impaired securities $ 29,783 $ 220 $ 6,037 $ 127 $ 35,820 $ 347 The evaluation for an OTTI is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. There were no OTTI charges recorded during the years ended December 31, 2020 and 2019. As of December 31, 2020 and 2019, there were twenty and thirty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The decrease in the number and value of securities in an unrealized loss position during the year ended December 31, 2020, was primarily attributable to improvement in market values in certain of the Company’s fixed maturity securities as a result of a declining interest rate environment. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2020. Investment income was earned from the following sources: 2020 2019 Fixed maturities $ 8,646 $ 8,485 Equity securities 141 282 Other (788 ) 319 7,999 9,086 Investment expenses 255 107 Net investment income $ 7,744 $ 8,979 A summary of realized investment gains (losses) follows: 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 835 $ 88 $ 6,948 $ 7,871 Losses (450 ) (1 ) — (451 ) Realized investment gains, net $ 385 $ 87 $ 6,948 $ 7,420 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 2,003 $ 1,221 $ — $ 3,224 Losses (1,650 ) — — (1,650 ) Realized investment gains, net $ 353 $ 1,221 $ — $ 1,574 Proceeds from the sales of available-for-sale fixed maturities were as follows: 2020 2019 Sales proceeds $ 18,504 $ 117,530 Gross gains 835 2,003 Gross losses (450 ) (1,650 ) Proceeds from the sales of available-for-sale equity securities were as follows: 2020 2019 Sales proceeds $ 5 $ 2,568 Gross gains — 1,113 Gross losses (1 ) — Sales of available-for-sale securities in 2020 and 2019 were primarily a result of improving the overall risk versus return profile of the portfolio. In addition, the Company sold its interest in a certain limited liability company held as other invested assets to a third-party. The transaction closed prior to December 31, 2020. The Company recorded gross realized gains on this sale of $6.9 million and proceeds of $12.7 million which settled after year end. The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31, 2020 and 2019. 2020 2019 Net realized and unrealized gains (losses) recognized during the period on equity securities $ (3,344 ) $ 6,732 Less: Net realized gains (losses) recognized during the period on equity securities sold during the period 87 1,221 Unrealized gains (losses) on equity securities, net $ (3,431 ) $ 5,511 The Company’s bond portfolio included 97% investment grade securities, as defined by the NAIC, at December 31, 2020. Variable Interest Entities The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $3,238 and $9,960 at December 31, 2020 and 2019, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated subsidiaries, totaled $1,238 at December 31, 2020 and 2019. The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $4,476 and $11,198, at December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company had outstanding commitments totaling $1,997, whereby the Company is committed to fund these investments and may be called by such VIEs during the commitment period to fund the purchase of new investments and partnership expenses. |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosures About Fair Value of Financial Instruments [Abstract] | |
Disclosures About Fair Value of Financial Instruments | Note 3. Disclosures About Fair Value of Financial Instruments The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels. Level 1 Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks. Level 2 Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly most of its fixed maturities, which consist of U.S. Treasury securities, U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers. Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data. Level 3 Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. The Company’s financial instruments valued using Level 3 criteria consist of one fixed maturity security and one equity security. As of December 31, 2020 and December 31, 2019, the value of the fixed maturity valued using Level 3 criteria was $0 for both years. As of December 31, 2020 and December 31, 2019, the value of the equity security valued using Level 3 criteria was $143 and $0, respectively. The equity security is not traded and valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations. Recurring Fair Value Measurements Cash Equivalents . Fixed Maturities and Common and Non-Redeemable Preferred Stocks . Nonrecurring Fair Value Measurements Non-publicly Traded Invested Assets . Policy Loans . Junior Subordinated Debentures . As of December 31, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below: Assets: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed maturities $ — $ 254,106 $ — $ 254,106 Equity securities 18,573 — 143 18,716 Cash equivalents 12,010 — — 12,010 Total $ 30,583 $ 254,106 $ 143 $ 284,832 As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below: Assets: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed maturities $ — $ 232,472 $ — $ 232,472 Equity securities 22,922 — — 22,922 Cash equivalents 7,173 — — 7,173 Total $ 30,095 $ 232,472 $ — $ 262,567 The Company does not have any fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of years ended December 31, 2020 and 2019. The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of December 31, 2020 and 2019. Level in 2020 2019 Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 19,319 $ 19,319 $ 12,893 $ 12,893 Fixed maturities (1) 254,106 254,106 232,472 232,472 Equity securities (1) 18,716 18,716 22,922 22,922 Other invested assets Level 3 3,238 3,238 9,960 9,960 Policy loans Level 2 1,975 1,975 2,007 2,007 Investments in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior Subordinated Debentures, net Level 2 33,738 32,297 33,738 35,977 (1) See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | Note 4. Deferred Policy Acquisition Costs The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31. 2020 2019 American Southern Bankers Fidelity American Southern Bankers Fidelity Deferred policy acquisition costs: Balance, beginning of year $ 1,979 $ 36,882 $ 2,047 $ 35,047 Capitalization 9,910 10,233 8,761 10,294 Amortization (9,590 ) (9,803 ) (8,829 ) (8,459 ) Balance, end of year $ 2,299 $ 37,312 $ 1,979 $ 36,882 |
Insurance Reserves and Policyho
Insurance Reserves and Policyholder Funds | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Insurance Reserves and Policyholder Funds | Note 5. Insurance Reserves and Policyholder Funds The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2020 and 2019. Amount of Insurance In Force, Net 2020 2019 2020 2019 Future policy benefits Life insurance policies: Ordinary life and annuities $ 54,442 $ 55,403 $ 199,827 $ 212,774 Group life 91 93 83,533 (1) 33,508 54,533 55,496 $ 283,360 $ 246,282 Accident and health insurance policies 36,339 36,994 90,872 92,490 Unearned premiums 27,131 26,035 Losses, claims and loss adjustment expenses 79,147 81,448 Other policy liabilities 1,526 1,933 Total insurance reserves and policyholder funds $ 198,676 $ 201,906 (1) The group life in force amounts increased significantly during 2020. However, the impact on future policy benefits is not significant due to the deferred premium offset to the gross benefit reserve. Annualized premiums for accident and health insurance policies were $109,430 and $112,734 at December 31, 2020 and 2019, respectively. Future Policy Benefits Liabilities for life insurance future policy benefits are based upon assumed future investment yields, mortality rates, and withdrawal rates after giving effect to possible risks of unexpected claim experience. The assumed mortality, withdrawal rates and expenses are based upon the Company’s experience, modified as necessary to reflect anticipated trends and are generally established at contract inception. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 7% graded to 5.5% for 1977 through 1979 issues, (iii) 9% for 1980 through 1987 issues, (iv) 5% to 7% for 1988 through 2009 issues, (v) 4% for 2010 through 2012 issues, and (vi) 3.5% to 4.0% for 2013 through 2020 issues. Loss and Claim Reserves Loss and claim reserves represent estimates of projected ultimate losses and are based upon: (a) management’s estimate of ultimate liability and claims adjusters’ evaluations for unpaid claims reported prior to the close of the accounting period, (b) estimates of IBNR claims based on past experience, and (c) estimates of loss adjustment expenses. The estimated liability is periodically reviewed by management and updated, with changes to the estimated liability recorded in the statement of operations in the year in which such changes are known. Activity in the liability for unpaid loss and claim reserves is summarized as follows: 2020 2019 Balance at January 1 $ 81,448 $ 72,612 Less: Reinsurance recoverable on unpaid losses (18,339 ) (14,354 ) Net balance at January 1 63,109 58,258 Incurred related to: Current year 122,626 137,305 Prior years (3,480 ) (1) (80 ) (2) Total incurred 119,146 137,225 Paid related to: Current year 84,518 95,489 Prior years 36,190 36,885 Total paid 120,708 132,374 Net balance at December 31 61,547 63,109 Plus: Reinsurance recoverable on unpaid losses 17,600 18,339 Balance at December 31 $ 79,147 $ 81,448 (1) Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected. Additionally, the Company experienced favorable development in the surety line of business in American Southern due to a reduction in exposure coupled with recoveries on certain prior year losses. (2) Prior years’ development was primarily the result of better than expected development on prior years loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: 2020 2019 Total incurred losses $ 119,146 $ 137,225 Cash surrender value and matured endowments 1,198 1,362 Benefit reserve changes (468 ) 638 Total insurance benefits and losses incurred $ 119,876 $ 139,225 Liability for Unpaid Losses, Claims and Loss Adjustment Expenses The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. Medicare Supplement For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 38,188 $ 38,296 $ 38,360 $ 38,327 $ 38,316 $ 38,302 $ 38,299 $ 38,297 $ 38,297 $ 38,297 $ — 664,056 2012 50,021 50,996 51,021 50,998 50,989 50,987 50,985 50,984 50,984 — 867,050 2013 56,974 56,970 57,034 57,023 57,021 57,016 57,015 57,014 — 957,363 2014 57,179 56,938 56,981 56,981 56,976 56,977 56,976 — 939,478 2015 55,482 54,939 54,993 54,990 54,984 54,985 — 898,374 2016 58,849 59,851 63,226 63,225 63,221 — 1,036,769 2017 67,960 69,655 69,643 69,635 — 1,510,654 2018 79,140 80,404 80,361 — 1,782,982 2019 88,765 87,028 172 2,242,156 2020 75,857 12,728 1,620,697 $ 634,358 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 31,720 $ 38,296 $ 38,360 $ 38,327 $ 38,316 $ 38,302 $ 38,299 $ 38,297 $ 38,297 $ 38,297 2012 42,267 50,996 51,021 50,998 50,989 50,987 50,985 50,984 50,984 2013 47,770 56,970 57,034 57,023 57,021 57,016 57,015 57,014 2014 48,024 56,938 56,981 56,981 56,976 56,977 56,976 2015 45,430 54,876 54,993 54,990 54,984 54,985 2016 49,165 59,747 63,226 63,225 63,221 2017 57,696 69,517 69,643 69,635 2018 66,565 80,222 80,361 2019 72,333 86,856 2020 63,129 $ 621,458 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 12,900 The cumulative number of reported claims for the Medicare supplement line of business is the number of distinct claims incurred and submitted to Medicare for payment in the given year. Multiple payments on the same claim are not counted in the frequency information. Estimated ultimate claims incurred, using claims data reported during each month of any given year, are calculated using the chain ladder method modified to use seasonality and trend-adjusted expected claims for the final four months. Additional adjustments to the estimated ultimate claims incurred are then applied to account for seasonal changes in billing and payment frequencies. The IBNR reserve is calculated as estimated ultimate claims less paid claims and claims in course of settlement. Thirty-six months of loss data are used to develop the estimated ultimate incurred claims. Similar approaches are used for other less significant health products, subject to modifications to account for unique aspects of the product. Automobile Liability For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 12,263 $ 13,802 $ 13,235 $ 13,289 $ 13,281 $ 13,495 $ 13,385 $ 13,330 $ 13,329 $ 13,328 $ — 2,134 2012 12,980 15,007 14,108 13,707 13,313 13,343 13,357 13,373 13,373 — 2,343 2013 18,664 20,702 21,096 21,823 21,352 21,020 20,972 20,972 — 3,267 2014 20,812 21,881 22,041 22,353 21,682 22,080 22,100 48 3,544 2015 18,521 19,857 20,017 20,007 20,086 20,680 75 3,525 2016 20,549 21,275 21,846 22,388 22,245 140 3,842 2017 22,179 24,212 23,766 25,180 801 3,772 2018 24,284 25,682 27,338 2,072 3,578 2019 25,241 24,045 3,117 3,479 2020 22,416 12,187 2,183 $ 211,677 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 4,205 $ 7,934 $ 9,858 $ 12,071 $ 13,039 $ 13,106 $ 13,199 $ 13,330 $ 13,329 $ 13,328 2012 4,627 8,791 11,507 12,932 13,197 13,211 13,288 13,373 13,373 2013 5,144 12,193 16,782 19,407 20,382 20,982 20,972 20,972 2014 6,822 13,807 17,554 20,177 20,878 21,735 21,813 2015 6,226 11,878 14,938 17,612 19,557 20,234 2016 6,796 13,141 16,397 19,613 21,408 2017 7,401 16,317 20,221 22,778 2018 6,989 15,647 21,121 2019 7,305 14,694 2020 5,172 $ 174,893 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 36,784 Automobile Physical Damage For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2016 2017 2018 2019 2020 2016 $ 6,877 $ 6,386 $ 6,352 $ 6,289 $ 6,289 $ — 1,269 2017 6,257 5,933 5,857 5,860 — 1,324 2018 7,805 7,530 7,447 — 1,452 2019 8,526 8,026 2 1,485 2020 10,288 177 1,526 $ 37,910 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2016 2017 2018 2019 2020 2016 $ 5,804 $ 6,353 $ 6,349 $ 6,289 $ 6,289 2017 5,215 5,914 5,856 5,860 2018 6,344 7,510 7,446 2019 6,360 8,005 2020 8,347 $ 35,947 All outstanding liabilities before 2016, net of reinsurance 1 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 1,964 General Liability For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 3,022 $ 1,723 $ 1,452 $ 1,338 $ 1,174 $ 1,242 $ 1,327 $ 1,335 $ 1,400 $ 1,534 $ 20 210 2012 4,055 1,305 1,269 1,270 1,214 1,333 1,344 1,377 1,388 25 161 2013 3,461 728 926 817 865 820 945 904 11 197 2014 3,744 501 557 476 406 497 523 6 194 2015 4,421 1,037 1,227 1,044 867 855 — 146 2016 3,119 1,148 736 608 621 1 92 2017 1,490 488 513 738 68 82 2018 1,656 333 198 40 75 2019 1,916 707 261 82 2020 2,223 1,749 62 $ 9,691 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 295 $ 412 $ 582 $ 835 $ 1,161 $ 1,169 $ 1,278 $ 1,285 $ 1,325 $ 1,426 2012 371 707 847 1,034 1,113 1,219 1,260 1,269 1,280 2013 104 339 579 811 791 803 805 855 2014 171 299 331 369 373 493 498 2015 98 259 464 664 863 855 2016 116 203 568 608 617 2017 75 136 365 556 2018 65 90 115 2019 41 209 2020 208 $ 6,619 All outstanding liabilities before 2011, net of reinsurance 343 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 3,415 Surety For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 4,422 $ 4,786 $ 5,080 $ 5,092 $ 4,966 $ 5,031 $ 5,112 $ 5,111 $ 5,112 $ 5,163 $ 7 128 2012 4,979 4,767 5,396 5,345 4,869 4,880 4,892 4,925 4,944 2 89 2013 3,060 2,007 2,743 2,947 2,866 2,809 2,765 2,757 — 58 2014 3,214 3,130 2,990 2,760 2,685 2,617 2,818 43 54 2015 1,902 1,630 1,400 1,359 1,406 1,310 6 50 2016 3,314 1,812 1,865 1,876 1,865 — 46 2017 4,677 3,671 3,799 3,629 13 58 2018 3,528 1,938 1,381 6 62 2019 2,130 657 128 30 2020 2,263 1,887 20 $ 26,787 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 1,031 $ 3,207 $ 4,622 $ 4,748 $ 4,939 $ 5,022 $ 5,109 $ 5,111 $ 5,112 $ 5,117 2012 2,257 4,581 4,856 5,331 4,869 4,880 4,878 4,916 4,934 2013 323 1,010 1,369 2,763 2,789 2,749 2,765 2,757 2014 1,331 2,327 2,727 2,739 2,664 2,593 2,562 2015 641 856 1,127 1,125 1,128 1,271 2016 1,054 1,732 1,772 1,873 1,862 2017 1,971 3,255 3,523 3,545 2018 1,157 1,454 1,361 2019 259 395 2020 97 $ 23,901 All outstanding liabilities before 2011, net of reinsurance 54 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 2,940 For the property and casualty lines of business, the number of claims presented above equals the number of occurrences by type of claim reported to the Company. The number of claims reported during a given year corresponds to the number of claims records opened during the year. Frequency information is maintained on a cumulative basis by accident year by line of business. For automobile claims, a claim count is separately maintained for bodily injury, property damage and physical damage claims. The Company has consistently monitored claim frequency on this basis, and believes this provides more meaningful information than using claimant count which can change over the course of settling a claim. In general, when a claim is reported, claims representatives establish a “case reserve” for the estimated amount of the ultimate payment based on the known information of the claim at that time. Claims managers review and monitor all property and casualty claims in excess of $25,000. As new information becomes available or payments are made on a claim, the case reserve is adjusted to reflect the revised estimate of the ultimate amount to be paid out. Estimates and assumptions pertaining to individual claims are based on complex and subjective judgments and subject to change at any time as new information becomes available. In addition to case reserves, IBNR reserves are established to provide for claims which have not been reported to the Company as of the reporting date as well as potential adverse development on known case reserves. IBNR reserve estimates are derived through a number of analytical techniques. Actuarial data is analyzed by line of business, coverage and accident year. Qualitative factors are also considered in determining IBNR reserves and include such factors as judicial decisions, general economic trends such as inflation, changes in policy forms, and underwriting changes. Reserves are reviewed quarterly and any indicated adjustments are made. Because of the inherent uncertainties in establishing both case and IBNR reserves, ultimate loss experience may prove better or worse than indicated by the combined claim reserves. Adjustments to claim reserves are reflected in the period recognized and could increase or decrease earnings for the period. The following is supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Reserve Line 1 st 2 nd 3 rd 4 th 5 th 6 th 7 th 8 th 9 th 10 th Medicare Supplement 83.0 % 16.9 % 0.1 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Automobile Liability 29.1 % 30.9 % 17.3 % 12.7 % 5.8 % 2.1 % 0.4 % 0.5 % 0.0 % 0.0 % Automobile Physical Damage 85.4 % 14.2 % -0.6 % -0.4 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % General Liability 17.8 % 17.8 % 22.5 % 16.9 % 8.4 % 6.3 % 2.8 % 2.2 % 1.7 % 6.6 % Surety 41.2 % 31.1 % 10.5 % 9.8 % -1.3 % 1.8 % 0.3 % 0.2 % 0.2 % 0.1 % The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows: December 31, 2020 Net outstanding liabilities Medicare Supplement $ 12,900 Automobile Liability 36,784 Automobile Physical Damage 1,964 General Liability 3,415 Surety 2,940 Other short-duration insurance lines 1,666 Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance 59,669 Reinsurance recoverable on unpaid losses: Medicare Supplement 8,975 Automobile Liability 6,260 Automobile Physical Damage 3 General Liability 2,362 Total reinsurance recoverable on unpaid losses 17,600 Unallocated claims adjustment expenses 1,878 Total gross liability for unpaid losses, claims and loss adjustment expenses $ 79,147 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | Note 6. Reinsurance In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99.6% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2020. Reinsurance recoverables of $28,980 were due from General Re Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance recoverables, if appropriate. The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows: 2020 2019 Direct premiums written $ 239,687 $ 237,973 Assumed premiums written 23,253 23,275 Ceded premiums written (77,622 ) (77,750 ) Net premiums written $ 185,318 $ 183,498 Direct premiums earned $ 238,209 $ 237,361 Assumed premiums earned 23,144 22,345 Ceded premiums earned (77,814 ) (77,781 ) Net premiums earned $ 183,539 $ 181,925 Provision for benefits and losses incurred $ 175,825 $ 206,390 Reinsurance loss recoveries (55,949 ) (67,165 ) Insurance benefits and losses incurred $ 119,876 $ 139,225 Components of reinsurance receivables at December 31, 2020 and 2019 were as follows: 2020 2019 Recoverable on unpaid losses $ 17,600 $ 18,339 Recoverable on unpaid benefits 9,832 10,772 Recoverable on paid losses 447 1,538 Ceded unearned premiums 963 1,155 Ceded advanced premiums 244 331 Total reinsurance receivables $ 29,086 $ 32,135 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7. Income Taxes Total income taxes were allocated as follows: 2020 2019 Total tax expense (benefit) on income $ 3,334 $ (21 ) Tax expense on components of shareholders’ equity: Net unrealized gains on investment securities 3,865 4,783 Total tax expense $ 7,199 $ 4,762 A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as follows: 2020 2019 Federal income tax provision $ 3,256 $ (86 ) Statutory rate 21 % 21 % Dividends-received deduction (12 ) (23 ) Meals & entertainment 20 55 Vested stock & club dues 36 37 Parking disallowance 16 17 Adjustment for prior years’ estimates to actual 18 (21 ) Income tax expense (benefit) $ 3,334 $ (21 ) Effective tax rate 21.5 % 5.2 % The primary differences between the effective tax rate and the federal statutory income tax rate for 2020 resulted from permanent differences related to meals & entertainment and vested stock grants. Also contributing to differences between the effective tax rate and the federal statutory income tax rate were provision-to-filed return adjustments that are generally updated at the completion of the third quarter of each fiscal year and were $18 in the year ended December 31, 2020. The primary differences between the effective tax rate and the federal statutory income tax rate for 2019 resulted from permanent differences related to meals & entertainment and vested stock grants. Also contributing to differences between the effective tax rate and the federal statutory income tax rate was the dividends-received deduction (“DRD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. Deferred tax assets and liabilities at December 31, 2020 and 2019 were comprised of the following: 2020 2019 Deferred tax assets: Deferred acquisition costs $ 4,666 $ 2,540 Insurance reserves 2,682 3,323 Impaired assets 822 822 Bad debts and other 326 319 Total deferred tax assets 8,496 7,004 Deferred tax liabilities: Deferred and uncollected premiums $ (409 ) $ (328 ) Net unrealized investment gains (9,235 ) (6,090 ) Other (153 ) (272 ) Total deferred tax liabilities (9,797 ) (6,690 ) Net deferred tax (liability) asset $ (1,301 ) $ 314 The components of income tax expense (benefit) were: 2020 2019 Current – Federal $ 5,584 $ 892 Deferred – Federal (2,250 ) (913 ) Total $ 3,334 $ (21 ) The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. Tax years 2017, 2018 and 2019 are considered open tax years that remain subject to examination by the Internal Revenue Service. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Junior Subordinated Debentures [Abstract] | |
Junior Subordinated Debentures | Note 8. Junior Subordinated Debentures The Company has two unconsolidated Connecticut statutory business trusts, which exist for the exclusive purposes of: (i) issuing trust preferred securities (“Trust Preferred Securities”) representing undivided beneficial interests in the assets of the trusts; (ii) investing the gross proceeds of the Trust Preferred Securities in junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) of Atlantic American; and (iii) engaging in those activities necessary or incidental thereto. At December 31, 2020, the effective interest rate was 4.28%. The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2020 and 2019, was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1)(2) Balance December 31, 2020 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance December 31, 2020 $ 18,042 $ 15,696 Net balance December 31, 2019 $ 18,042 $ 15,696 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Interest payable Quarterly Quarterly Maturity date December 4, 2032 May 15, 2033 Redeemable by issuer Yes Yes TRUST PREFERRED SECURITIES Issuance date December 4, 2002 May 15, 2003 Securities issued 17,500 22,500 Liquidation preference per security $ 1 $ 1 Liquidation value $ 17,500 $ 22,500 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Distribution payable Quarterly Quarterly Distribution guaranteed by (4) Atlantic American Corporation Atlantic American Corporation (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) In 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 9. Leases The Company has two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option through 2026. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for each of the years ended December 31, 2020 and 2019 was $1,014. Additional information regarding the Company’s real estate operating leases is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Other information on operating leases: Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 978 815 Right-of-use assets included in other assets on the consolidated balance sheet 4,832 5,476 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 5.9 years 6.9 years The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability 2021 $ 1,015 2022 1,031 2023 1,048 2024 1,065 2025 1,083 Thereafter 942 Total undiscounted lease payments 6,184 Less: present value adjustment 1,116 Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet $ 5,068 As of December 31, 2020, the Company has no operating leases that have not yet commenced. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Equity Incentive Plan On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. In 2020, a total of 20,000 restricted shares, with an estimated fair value of $38, were issued under the 2012 Plan and 35,000 restricted shares, with an estimated fair value of $98, were forfeited under such plan. In 2019, a total of 355,000 restricted shares, with an estimated fair value of $948, were issued under the 2012 Plan. The estimated fair value of the restricted shares issued under the 2012 Plan for 2020 and 2019 was based on the common stock price at date of grant. Stock grants are generally issued from treasury shares. Vesting of restricted shares generally occurs after a one to three year period. The Company accounts for forfeitures as they occur. There were no stock options granted or outstanding under the 2012 Plan in 2020 or 2019. Shares available for future grant at December 31, 2020 and 2019 were 935,200 and 920,200, respectively. 401(k) Plan The Company initiated an employees’ savings plan (the “Plan”) qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan covers substantially all of the Company’s employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company’s total matching contribution for 2020 and 2019 was $231 and $230, respectively, and consisted of a contribution equal to 35% of up to the first 6% of each participant’s contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2020 and 2019 of $520 and $524, respectively. All contributions were made in cash. Participants are 100% vested in their own contributions and the vested percentage attributable to certain employer contributions is based on a five-year graded schedule. Agent Stock Purchase Plan The Company initiated a nonqualified stock purchase plan (the “Agent Stock Purchase Plan”) in May 2012. The purpose of the Agent Stock Purchase Plan is to promote and advance the interests of the Company and its shareholders by providing independent agents who qualify as participants with an opportunity to purchase the common stock of the Company. Under the Agent Stock Purchase Plan, payment for shares of common stock of the Company is made by either deduction from an agent’s commission payment or a direct cash payment. Stock purchases are made at the end of each calendar quarter at the then current market value. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 11. Preferred Stock The Company had 55,000 shares of Series D preferred stock (“Series D Preferred Stock”) outstanding at December 31, 2020 and 2019, respectively. All of the shares of Series D Preferred Stock are held by an affiliate of the Company’s controlling shareholder. The outstanding shares of Series D Preferred Stock have a par value of $1 per share and a redemption value of $100 per share; accrue annual dividends at a rate of $7.25 per share (payable in cash or shares of the Company’s common stock at the option of the board of directors of the Company) and are cumulative. In certain circumstances, the shares of the Series D Preferred Stock may be convertible into an aggregate of approximately 1,378,000 shares of the Company’s common stock, subject to certain adjustments and provided that such adjustments do not result in the Company issuing more than approximately 2,703,000 shares of common stock without obtaining prior shareholder approval; and are redeemable solely at the Company’s option. The Series D Preferred Stock is not currently convertible. The Company had accrued, but unpaid, dividends, on the Series D Preferred Stock of $18 at December 31, 2020 and 2019. During each of 2020 and 2019, the Company paid Series D Preferred Stock dividends of $399. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings (Loss) Per Common Share [Abstract] | |
Earnings (Loss) Per Common Share | Note 12. Earnings (Loss) Per Common Share Basic earnings per share was computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities. A reconciliation of the numerator and denominator of the income (loss) per common share calculations is as follows: For the Year Ended December 31, 2020 Income Weighted Average Shares Outstanding (In thousands) Per Share Amount Basic Earnings Per Common Share Net income before preferred stock dividends $ 12,169 20,441 - Less preferred stock dividends (399 ) — Net income applicable to common shareholders 11,770 20,441 0.58 Diluted Earnings Per Common Share: Effect of Series D preferred stock 399 1,378 Net income applicable to common shareholders $ 12,169 21,819 $ 0.56 For the Year Ended December 31, 2019 Loss Weighted Average Shares Outstanding (In thousands) P er Share Amount Basic and Diluted Loss Per Common Share Net loss before preferred stock dividends $ (386 ) 20,258 - Less preferred stock dividends (399 ) — Net loss applicable to common shareholders $ (785 ) 20,258 $ (.04 ) The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2019 since its impact would have been antidilutive. |
Statutory Reporting
Statutory Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reporting [Abstract] | |
Statutory Reporting | Note 13. Statutory Reporting The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies in some respects from statutory accounting practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) certain assets that are non-admitted assets are eliminated from the balance sheet; (ii) acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iii) the provision that is made for deferred income taxes is different than under GAAP; (iv) the timing of establishing certain reserves is different than under GAAP; and (v) certain valuation allowances attributable to certain investments are different. The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows: 2020 2019 Bankers Fidelity, net income (loss) $ 7,712 $ (9,509 ) American Southern, net income 8,575 4,778 Statutory net income (loss) $ 16,287 $ (4,731 ) Bankers Fidelity, surplus $ 42,326 $ 35,546 American Southern, surplus 50,194 45,827 Statutory surplus $ 92,520 $ 81,373 Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $3,900 and $4,800 in the years ended 2020 and 2019, respectively, from its subsidiaries. In 2020, dividend payments to the Parent by the insurance subsidiaries in excess of $9,589 would require prior approval. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions In the normal course of business the Company has engaged in transactions with entities affiliated with the controlling shareholder of the Company. These transactions include the leasing of office space as well as certain investing and financing activities. At December 31, 2020, two members of the Company’s board of directors, including the Company’s chairman, president and chief executive officer, were considered to be affiliates of the majority shareholder. The Company leases approximately 49,586 square feet of office and covered garage space from one such controlled entity. During the years ended December 31, 2020 and 2019, the Company paid $939 and $908, respectively, under this lease. Certain financing for the Company has also been provided by this entity in the form of an investment in the Series D Preferred Stock (See Note 11). During the years ended December 31, 2020 and 2019, the Company paid this entity $399 in dividends on the Series D Preferred Stock. Certain members of the Company’s management and board of directors are shareholders and on the board of directors of Gray Television, Inc. (“Gray”). As of December 31, 2020 and 2019, the Company owned 880,272 shares of Gray Class A common stock and 106,000 shares of Gray common stock. The aggregate carrying value of these investments in Gray at December 31, 2020 and 2019 was $16,606 and $19,764, respectively. During the years ended December 31, 2020 and 2019, Gray paid the Company approximately $1,038 and $1,022, respectively, in insurance premiums related to certain voluntary employee benefit plans. During the year ended December 31, 2019, the Company transferred its remaining fractional interest in an aircraft arrangement to Gray for $151. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | Note 15. Segment Information The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than that in the corporate and other segment is from external sources. For the Year Ended December 31, 2020 American Southern Bankers Fidelity Corporate & Other Adjustments & Eliminations Consolidated Insurance premiums, net $ 62,372 $ 121,167 $ — $ — $ 183,539 Insurance benefits and losses incurred 39,339 80,537 — — 119,876 Expenses deferred (9,910 ) (10,233 ) — — (20,143 ) Amortization and depreciation expense 9,772 10,007 594 — 20,373 Other expenses 19,542 34,403 14,526 (8,732 ) 59,739 Total expenses 58,743 114,714 15,120 (8,732 ) 179,845 Underwriting income 3,629 6,453 — — 10,082 Net investment income 3,586 4,971 1,174 (1,987 ) 7,744 Other income 37 11 6,773 (6,745 ) 76 Operating income (loss) 7,252 11,435 (7,173 ) — 11,514 Net realized gains 3,389 4,031 — — 7,420 Unrealized losses on equity securities (205 ) (3,036 ) (190 ) — (3,431 ) Income (loss) before income taxes $ 10,436 $ 12,430 $ (7,363 ) $ — $ 15,503 Total revenues $ 69,179 $ 127,144 $ 7,757 $ (8,732 ) $ 195,348 Intangibles $ 1,350 $ 1,194 $ — $ — $ 2,544 Total assets $ 158,808 $ 236,197 $ 183,178 $ (172,996 ) $ 405,187 For the Year Ended December 31, 2019 American Southern Bankers Fidelity Corporate & Other Adjustments & Eliminations Consolidated Insurance premiums, net $ 58,680 $ 123,245 $ — $ — $ 181,925 Insurance benefits and losses incurred 39,541 99,684 — — 139,225 Expenses deferred (8,761 ) (10,294 ) — — (19,055 ) Amortization and depreciation expense 9,024 8,709 551 — 18,284 Other expenses 16,869 37,158 15,939 (9,834 ) 60,132 Total expenses 56,673 135,257 16,490 (9,834 ) 198,586 Underwriting income (loss) 2,007 (12,012 ) — — (10,005 ) Net investment income 3,689 5,317 2,597 (2,624 ) 8,979 Other income 75 18 7,307 (7,210 ) 190 Operating income (loss) 5,771 (6,677 ) (6,586 ) — (7,492 ) Net realized gains (losses) (386 ) 840 1,120 — 1,574 Unrealized gains on equity securities 344 2,191 2,976 — 5,511 Income (loss) before income taxes $ 5,729 $ (3,646 ) $ (2,490 ) $ — $ (407 ) Total revenues $ 62,402 $ 131,611 $ 14,000 $ (9,834 ) $ 198,179 Intangibles $ 1,350 $ 1,194 $ — $ — $ 2,544 Total assets $ 141,524 $ 224,122 $ 154,687 $ (142,707 ) $ 377,626 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Litigation From time to time, the Company is, and expects to continue to be, involved in various claims and lawsuits incidental to and in the ordinary course of its business. In the opinion of management, any such known claims are not expected to have a material effect on the financial condition or results of operations of the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events On March 23, 2021, the Company’s board of directors declared an annual cash dividend of $0.02 per share of common stock that is payable to shareholders of record as of the close of business on April 13, 2021. Since December 31, 2020, the COVID-19 pandemic continues to cause material disruption to financial markets and the economy. As a result of the pandemic, the Company could experience future losses in its investment portfolio as a result of the weakened and volatile markets. Additionally, the Company can experience increased risk of loss any time unforeseen infectious diseases impact large portions of a population. Specifically, the Company’s life and health business could experience significant loss due to increased claims volume arising from COVID-19. The duration and impact of the COVID-19 pandemic is unknown at this time and it is not possible to reliably estimate the impact on the financial condition, operating results or liquidity of the Company and its operating subsidiaries in future periods. |
Schedule II CONDENSED FINANCIAL
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2020 | |
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT ATLANTIC AMERICAN CORPORATION (Parent Company Only) BALANCE SHEETS ASSETS December 31, 2020 2019 (In thousands) Cash and cash equivalents $ 2,090 $ 2,068 Investments 2,598 3,267 Investment in subsidiaries 172,996 142,707 Investments in unconsolidated trusts 1,238 1,238 Income taxes receivable from subsidiaries 1,683 2,304 Other assets 4,311 5,126 Total assets $ 184,916 $ 156,710 LIABILITIES AND SHAREHOLDERS’ EQUITY Deferred tax liability, net $ 1,765 $ 346 Other payables 4,353 4,232 Junior subordinated debentures 33,738 33,738 Total liabilities 39,856 38,316 Shareholders’ equity 145,060 118,394 Total liabilities and shareholders’ equity $ 184,916 $ 156,710 See accompanying report of independent registered public accounting firm. Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT ATLANTIC AMERICAN CORPORATION (Parent Company Only) STATEMENTS OF OPERATIONS Year Ended December 31, 2020 2019 (In thousands) REVENUE Fee income from subsidiaries $ 6,745 $ 7,210 Distributed earnings from subsidiaries 3,900 4,800 Unrealized gains (losses) on equity securities, net (191 ) 2,976 Other (784 ) 1,190 Total revenue 9,670 16,176 GENERAL AND ADMINISTRATIVE EXPENSES 11,521 11,731 INTEREST EXPENSE 1,610 2,130 (3,461 ) 2,315 INCOME TAX BENEFIT (1) (3,623 ) (2,035 ) 162 4,350 EQUITY IN UNDISTRIBUTED EARNINGS (LOSS) OF SUBSIDIARIES, NET 12,007 (4,736 ) NET INCOME (LOSS) $ 12,169 $ (386 ) (1) Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company’s income tax benefit results from the utilization of the Parent’s separate return loss to reduce the consolidated taxable income of the Company. See accompanying report of independent registered public accounting firm. Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT ATLANTIC AMERICAN CORPORATION (Parent Company Only) STATEMENTS OF CASH FLOWS Year Ended December 31, 2020 2019 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (loss) $ 12,169 $ (386 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Realized investment gains, net — (1,120 ) Unrealized losses (gains) on equity securities, net 191 (2,976 ) Depreciation and amortization 594 552 Compensation expense related to share awards 437 353 Distributions received from equity method investees — 51 Equity in undistributed (earnings) loss of subsidiaries, net (12,007 ) 4,736 Decrease in intercompany taxes 622 551 Deferred income tax benefit (2,446 ) (913 ) Increase in accounts payable and accrued expenses 121 2,360 Other, net 917 (2,314 ) Net cash provided by operating activities 598 894 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from investments sold, called or matured — 3,574 Investments purchased — (1,060 ) Capital contribution to subsidiaries — (3,500 ) Additions to property and equipment (95 ) (44 ) Net cash used in investing activities (95 ) (1,030 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of dividends on Series D preferred stock (399 ) (399 ) Payment of dividends on common stock — (403 ) Proceeds from shares issued under stock plans 9 27 Treasury stock acquired — share repurchase authorization — (71 ) Treasury stock acquired — net employee share-based compensation (91 ) (92 ) Net cash used in financing activities (481 ) (938 ) Net increase (decrease) in cash 22 (1,074 ) Cash and cash equivalents at beginning of year 2,068 3,142 Cash and cash equivalents at end of year $ 2,090 $ 2,068 Supplemental disclosure: Cash paid for interest $ 1,665 $ 2,155 Cash paid for income taxes $ 3,883 $ 1,662 Intercompany tax settlement from subsidiaries $ 1,798 $ 3,335 |
Schedule III SUPPLEMENTARY INSU
Schedule III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Schedule III SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |
Schedule III SUPPLEMENTARY INSURANCE INFORMATION | Schedule III ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION Segment Deferred Acquisition Costs Future Policy Benefits, Losses, Claims and Loss Reserves Unearned Premiums Other Policy Claims and Benefits Payable (In thousands) December 31, 2020: Bankers Fidelity $ 37,312 $ 115,136 $ 4,199 $ 1,526 American Southern 2,299 54,883 22,932 — $ 39,611 $ 170,019 (1) $ 27,131 $ 1,526 December 31, 2019: Bankers Fidelity $ 36,882 $ 121,657 $ 4,606 $ 1,933 American Southern 1,979 52,281 21,429 — $ 38,861 $ 173,938 (2) $ 26,035 $ 1,933 (1) Includes future policy benefits of $90,872 and losses and claims of $79,147. (2) Includes future policy benefits of $92,490 and losses and claims of $81,448. See accompanying report of independent registered public accounting firm. Schedule III ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION Segment Premium Revenue Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses Casualty Premiums Written (In thousands) December 31, 2020: Bankers Fidelity $ 121,167 $ 4,971 $ 80,537 $ 9,803 $ 24,374 $ — American Southern 62,372 3,586 39,339 9,590 9,814 64,366 Corporate & other — (813 ) — — 6,388 — $ 183,539 $ 7,744 $ 119,876 $ 19,393 $ 40,576 $ 64,366 December 31, 2019: Bankers Fidelity $ 123,245 $ 5,317 $ 99,684 $ 8,459 $ 27,114 $ — American Southern 58,680 3,689 39,541 8,829 8,303 60,328 Corporate & other — (27 ) — — 6,656 — $ 181,925 $ 8,979 $ 139,225 $ 17,288 $ 42,073 $ 60,328 |
Schedule IV REINSURANCE
Schedule IV REINSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
Schedule IV REINSURANCE [Abstract] | |
Schedule IV REINSURANCE | Schedule IV ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES REINSURANCE INFORMATION Direct Amount Ceded to Other Companies Assumed From Other Companies Net Amounts Percentage of Amount Assumed to Net (Dollars in thousands) Year ended December 31, 2020: Life insurance in force $ 294,392 $ (11,032 ) $ — $ 283,360 Premiums — Bankers Fidelity $ 193,082 $ (71,924 ) $ 9 $ 121,167 0.0 % American Southern 45,127 (5,890 ) 23,135 62,372 37.1 % Total premiums $ 238,209 $ (77,814 ) $ 23,144 $ 183,539 12.6 % Year ended December 31, 2019: Life insurance in force $ 257,731 $ (11,449 ) $ — $ 246,282 Premiums — Bankers Fidelity $ 195,481 $ (72,261 ) $ 25 $ 123,245 0.0 % American Southern 41,880 (5,520 ) 22,320 58,680 39.6 % Total premiums $ 237,361 $ (77,781 ) $ 22,345 $ 181,925 12.8 % |
Schedule VI SUPPLEMENTAL INFORM
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | |
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS | Schedule VI ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS Claims and Claim Adjustment Expenses Incurred Related To Year Ended Deferred Policy Acquisition Costs Reserves Unearned Premiums Earned Premiums Net Investment Income Current Year Prior Years Amortization of Deferred Acquisition Costs Paid Claims and Claim Adjustment Expenses Premiums Written (In thousands) December 31, 2020 $ 2,299 $ 54,883 $ 22,932 $ 62,372 $ 3,586 $ 39,859 $ (520 ) $ 9,590 $ 37,645 $ 64,366 December 31, 2019 $ 1,979 $ 52,281 $ 21,429 $ 58,680 $ 3,689 $ 40,361 $ (820 ) $ 8,829 $ 37,905 $ 60,328 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. At December 31, 2020, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity. |
Premium Revenue and Cost Recognition | Premium Revenue and Cost Recognition Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). |
Intangibles | Intangibles Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented. |
Investments | Investments The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. As of December 31, 2020, the Company owned a certain equity security in the amount of $143, with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. As of December 31, 2020, all fixed maturities were valued using publicly quoted market prices or techniques with observable inputs. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a fixed maturity security or other invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income. |
Income Taxes | Income Taxes Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase. |
Reinsurance | Reinsurance The Company enters into reinsurance agreements with other companies in the normal course of business. For each reinsurance agreement, the Company determines if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. Reinsurance premiums from assumed business are estimated based on information received from ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the period in which they are determined. |
Share-Based Transactions | Share-Based Transactions For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date. |
Treasury Stock | Treasury Stock Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of New Accounting Standards Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. Goodwill. Future Adoption of New Accounting Standards Reference Rate Reform Investments – Equity Securities. Income Taxes – Simplifying the Accounting for Income Taxes. Accounting for Long-Duration Contracts. Financial Instruments – Credit Losses. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments Aggregated by Type and Industry | Fixed maturities were comprised of the following: 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 30,762 $ 1,381 $ 26 $ 29,407 Obligations of states and political subdivisions 11,802 898 — 10,904 Corporate securities: Utilities and telecom 30,359 4,423 — 25,936 Financial services 78,258 9,811 6 68,453 Other business – diversified 41,145 5,689 15 35,471 Other consumer – diversified 61,530 9,479 47 52,098 Total corporate securities 211,292 29,402 68 181,958 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 254,106 $ 31,739 $ 94 $ 222,461 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Amortized Cost Fixed maturities: Bonds: U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 20,259 $ 467 $ 53 $ 19,845 Obligations of states and political subdivisions 11,940 371 53 11,622 Corporate securities: Utilities and telecom 26,648 2,404 32 24,276 Financial services 73,917 4,249 57 69,725 Other business – diversified 41,706 2,335 98 39,469 Other consumer – diversified 57,752 3,702 54 54,104 Total corporate securities 200,023 12,690 241 187,574 Redeemable preferred stocks: Other consumer – diversified 250 58 — 192 Total redeemable preferred stocks 250 58 — 192 Total fixed maturities $ 232,472 $ 13,586 $ 347 $ 219,233 Bonds having an amortized cost of $10,670 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2020 and 2019, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $1,997 and $0 and included in the tables above were pledged as collateral to FHLB at December 31, 2020 and 2019, respectively. 2020 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Equity securities: Common and non-redeemable preferred stocks: Financial services 2,111 351 — 1,760 Other business – diversified 16,605 11,972 — 4,633 Total equity securities $ 18,716 $ 12,323 $ — $ 6,393 2019 Estimated Fair Value Gross Unrealized Gains Gross Unrealized Losses Cost or Amortized Cost Equity securities: Common and non-redeemable preferred stocks: Financial services 3,159 624 — 2,535 Other business – diversified 19,763 15,130 — 4,633 Total equity securities $ 22,922 $ 15,754 $ — $ 7,168 |
Amortized Cost and Carrying Value of Fixed Maturities by Contractual Maturity | The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2020 and 2019 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. 2020 2019 Carrying Value Amortized Cost Carrying Value Amortized Cost Due in one year or less $ 2,041 $ 2,015 $ — $ — Due after one year through five years 18,373 17,039 14,664 14,280 Due after five years through ten years 89,892 79,993 77,934 73,521 Due after ten years 124,609 104,527 130,680 122,321 Asset backed securities 19,191 18,887 9,194 9,111 Totals $ 254,106 $ 222,461 $ 232,472 $ 219,233 |
Investment Securities with Continuous Unrealized Loss Position | The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2020 and 2019. 2020 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 7,045 $ 26 $ — $ — $ 7,045 $ 26 Corporate securities 4,602 68 — — 4,602 68 Total temporarily impaired securities $ 11,647 $ 94 $ — $ — $ 11,647 $ 94 2019 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government agencies and authorities $ 3,432 $ 22 $ 3,533 $ 31 $ 6,965 $ 53 Obligations of states and political subdivisions 3,106 53 — — 3,106 53 Corporate securities 23,245 145 2,504 96 25,749 241 Total temporarily impaired securities $ 29,783 $ 220 $ 6,037 $ 127 $ 35,820 $ 347 |
Investment Income Earned | Investment income was earned from the following sources: 2020 2019 Fixed maturities $ 8,646 $ 8,485 Equity securities 141 282 Other (788 ) 319 7,999 9,086 Investment expenses 255 107 Net investment income $ 7,744 $ 8,979 |
Summary of Realized Investment Gains (Losses) | A summary of realized investment gains (losses) follows: 2020 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 835 $ 88 $ 6,948 $ 7,871 Losses (450 ) (1 ) — (451 ) Realized investment gains, net $ 385 $ 87 $ 6,948 $ 7,420 2019 Fixed Maturities Equity Securities Other Invested Assets Total Gains $ 2,003 $ 1,221 $ — $ 3,224 Losses (1,650 ) — — (1,650 ) Realized investment gains, net $ 353 $ 1,221 $ — $ 1,574 |
Proceeds from Sales of Investments | Proceeds from the sales of available-for-sale fixed maturities were as follows: 2020 2019 Sales proceeds $ 18,504 $ 117,530 Gross gains 835 2,003 Gross losses (450 ) (1,650 ) Proceeds from the sales of available-for-sale equity securities were as follows: 2020 2019 Sales proceeds $ 5 $ 2,568 Gross gains — 1,113 Gross losses (1 ) — |
Unrealized Gains (Losses) on Equity Securities | The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31, 2020 and 2019. 2020 2019 Net realized and unrealized gains (losses) recognized during the period on equity securities $ (3,344 ) $ 6,732 Less: Net realized gains (losses) recognized during the period on equity securities sold during the period 87 1,221 Unrealized gains (losses) on equity securities, net $ (3,431 ) $ 5,511 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosures About Fair Value of Financial Instruments [Abstract] | |
Financial Instruments Carried at Fair Value Measured on a Recurring Basis | As of December 31, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below: Assets: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed maturities $ — $ 254,106 $ — $ 254,106 Equity securities 18,573 — 143 18,716 Cash equivalents 12,010 — — 12,010 Total $ 30,583 $ 254,106 $ 143 $ 284,832 As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below: Assets: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fixed maturities $ — $ 232,472 $ — $ 232,472 Equity securities 22,922 — — 22,922 Cash equivalents 7,173 — — 7,173 Total $ 30,095 $ 232,472 $ — $ 262,567 |
Carrying Amount, Estimated Fair Value and Level within the Fair Value Hierarchy of Financial Instruments | The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of December 31, 2020 and 2019. Level in 2020 2019 Fair Value Hierarchy (1) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents Level 1 $ 19,319 $ 19,319 $ 12,893 $ 12,893 Fixed maturities (1) 254,106 254,106 232,472 232,472 Equity securities (1) 18,716 18,716 22,922 22,922 Other invested assets Level 3 3,238 3,238 9,960 9,960 Policy loans Level 2 1,975 1,975 2,007 2,007 Investments in unconsolidated trusts Level 2 1,238 1,238 1,238 1,238 Liabilities: Junior Subordinated Debentures, net Level 2 33,738 32,297 33,738 35,977 (1) See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs by Segment | The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31. 2020 2019 American Southern Bankers Fidelity American Southern Bankers Fidelity Deferred policy acquisition costs: Balance, beginning of year $ 1,979 $ 36,882 $ 2,047 $ 35,047 Capitalization 9,910 10,233 8,761 10,294 Amortization (9,590 ) (9,803 ) (8,829 ) (8,459 ) Balance, end of year $ 2,299 $ 37,312 $ 1,979 $ 36,882 |
Insurance Reserves and Policy_2
Insurance Reserves and Policyholder Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Reserves for Life, Accident, Health and Property and Casualty Losses, Including Loss Adjustment Expenses | The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2020 and 2019. Amount of Insurance In Force, Net 2020 2019 2020 2019 Future policy benefits Life insurance policies: Ordinary life and annuities $ 54,442 $ 55,403 $ 199,827 $ 212,774 Group life 91 93 83,533 (1) 33,508 54,533 55,496 $ 283,360 $ 246,282 Accident and health insurance policies 36,339 36,994 90,872 92,490 Unearned premiums 27,131 26,035 Losses, claims and loss adjustment expenses 79,147 81,448 Other policy liabilities 1,526 1,933 Total insurance reserves and policyholder funds $ 198,676 $ 201,906 (1) The group life in force amounts increased significantly during 2020. However, the impact on future policy benefits is not significant due to the deferred premium offset to the gross benefit reserve. |
Summary of Activity in Liabilities for Unpaid Loss and Claim Reserved | Activity in the liability for unpaid loss and claim reserves is summarized as follows: 2020 2019 Balance at January 1 $ 81,448 $ 72,612 Less: Reinsurance recoverable on unpaid losses (18,339 ) (14,354 ) Net balance at January 1 63,109 58,258 Incurred related to: Current year 122,626 137,305 Prior years (3,480 ) (1) (80 ) (2) Total incurred 119,146 137,225 Paid related to: Current year 84,518 95,489 Prior years 36,190 36,885 Total paid 120,708 132,374 Net balance at December 31 61,547 63,109 Plus: Reinsurance recoverable on unpaid losses 17,600 18,339 Balance at December 31 $ 79,147 $ 81,448 (1) Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected. Additionally, the Company experienced favorable development in the surety line of business in American Southern due to a reduction in exposure coupled with recoveries on certain prior year losses. (2) Prior years’ development was primarily the result of better than expected development on prior years loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity. |
Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses | Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred: 2020 2019 Total incurred losses $ 119,146 $ 137,225 Cash surrender value and matured endowments 1,198 1,362 Benefit reserve changes (468 ) 638 Total insurance benefits and losses incurred $ 119,876 $ 139,225 |
Supplementary Information about Average Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2020. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Reserve Line 1 st 2 nd 3 rd 4 th 5 th 6 th 7 th 8 th 9 th 10 th Medicare Supplement 83.0 % 16.9 % 0.1 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % Automobile Liability 29.1 % 30.9 % 17.3 % 12.7 % 5.8 % 2.1 % 0.4 % 0.5 % 0.0 % 0.0 % Automobile Physical Damage 85.4 % 14.2 % -0.6 % -0.4 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % General Liability 17.8 % 17.8 % 22.5 % 16.9 % 8.4 % 6.3 % 2.8 % 2.2 % 1.7 % 6.6 % Surety 41.2 % 31.1 % 10.5 % 9.8 % -1.3 % 1.8 % 0.3 % 0.2 % 0.2 % 0.1 % |
Reconciliation of Net Incurred and Paid Claims Development | The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows: December 31, 2020 Net outstanding liabilities Medicare Supplement $ 12,900 Automobile Liability 36,784 Automobile Physical Damage 1,964 General Liability 3,415 Surety 2,940 Other short-duration insurance lines 1,666 Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance 59,669 Reinsurance recoverable on unpaid losses: Medicare Supplement 8,975 Automobile Liability 6,260 Automobile Physical Damage 3 General Liability 2,362 Total reinsurance recoverable on unpaid losses 17,600 Unallocated claims adjustment expenses 1,878 Total gross liability for unpaid losses, claims and loss adjustment expenses $ 79,147 |
Medicare Supplement [Member] | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Information About Incurred and Paid Claims Development | The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. Medicare Supplement For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 38,188 $ 38,296 $ 38,360 $ 38,327 $ 38,316 $ 38,302 $ 38,299 $ 38,297 $ 38,297 $ 38,297 $ — 664,056 2012 50,021 50,996 51,021 50,998 50,989 50,987 50,985 50,984 50,984 — 867,050 2013 56,974 56,970 57,034 57,023 57,021 57,016 57,015 57,014 — 957,363 2014 57,179 56,938 56,981 56,981 56,976 56,977 56,976 — 939,478 2015 55,482 54,939 54,993 54,990 54,984 54,985 — 898,374 2016 58,849 59,851 63,226 63,225 63,221 — 1,036,769 2017 67,960 69,655 69,643 69,635 — 1,510,654 2018 79,140 80,404 80,361 — 1,782,982 2019 88,765 87,028 172 2,242,156 2020 75,857 12,728 1,620,697 $ 634,358 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 31,720 $ 38,296 $ 38,360 $ 38,327 $ 38,316 $ 38,302 $ 38,299 $ 38,297 $ 38,297 $ 38,297 2012 42,267 50,996 51,021 50,998 50,989 50,987 50,985 50,984 50,984 2013 47,770 56,970 57,034 57,023 57,021 57,016 57,015 57,014 2014 48,024 56,938 56,981 56,981 56,976 56,977 56,976 2015 45,430 54,876 54,993 54,990 54,984 54,985 2016 49,165 59,747 63,226 63,225 63,221 2017 57,696 69,517 69,643 69,635 2018 66,565 80,222 80,361 2019 72,333 86,856 2020 63,129 $ 621,458 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 12,900 |
Automobile Liability [Member] | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Information About Incurred and Paid Claims Development | The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. Automobile Liability For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 12,263 $ 13,802 $ 13,235 $ 13,289 $ 13,281 $ 13,495 $ 13,385 $ 13,330 $ 13,329 $ 13,328 $ — 2,134 2012 12,980 15,007 14,108 13,707 13,313 13,343 13,357 13,373 13,373 — 2,343 2013 18,664 20,702 21,096 21,823 21,352 21,020 20,972 20,972 — 3,267 2014 20,812 21,881 22,041 22,353 21,682 22,080 22,100 48 3,544 2015 18,521 19,857 20,017 20,007 20,086 20,680 75 3,525 2016 20,549 21,275 21,846 22,388 22,245 140 3,842 2017 22,179 24,212 23,766 25,180 801 3,772 2018 24,284 25,682 27,338 2,072 3,578 2019 25,241 24,045 3,117 3,479 2020 22,416 12,187 2,183 $ 211,677 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 4,205 $ 7,934 $ 9,858 $ 12,071 $ 13,039 $ 13,106 $ 13,199 $ 13,330 $ 13,329 $ 13,328 2012 4,627 8,791 11,507 12,932 13,197 13,211 13,288 13,373 13,373 2013 5,144 12,193 16,782 19,407 20,382 20,982 20,972 20,972 2014 6,822 13,807 17,554 20,177 20,878 21,735 21,813 2015 6,226 11,878 14,938 17,612 19,557 20,234 2016 6,796 13,141 16,397 19,613 21,408 2017 7,401 16,317 20,221 22,778 2018 6,989 15,647 21,121 2019 7,305 14,694 2020 5,172 $ 174,893 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 36,784 |
Automobile Physical Damage [Member] | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Information About Incurred and Paid Claims Development | The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. Automobile Physical Damage For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2016 2017 2018 2019 2020 2016 $ 6,877 $ 6,386 $ 6,352 $ 6,289 $ 6,289 $ — 1,269 2017 6,257 5,933 5,857 5,860 — 1,324 2018 7,805 7,530 7,447 — 1,452 2019 8,526 8,026 2 1,485 2020 10,288 177 1,526 $ 37,910 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2016 2017 2018 2019 2020 2016 $ 5,804 $ 6,353 $ 6,349 $ 6,289 $ 6,289 2017 5,215 5,914 5,856 5,860 2018 6,344 7,510 7,446 2019 6,360 8,005 2020 8,347 $ 35,947 All outstanding liabilities before 2016, net of reinsurance 1 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 1,964 |
General Liability [Member] | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Information About Incurred and Paid Claims Development | The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. General Liability For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 3,022 $ 1,723 $ 1,452 $ 1,338 $ 1,174 $ 1,242 $ 1,327 $ 1,335 $ 1,400 $ 1,534 $ 20 210 2012 4,055 1,305 1,269 1,270 1,214 1,333 1,344 1,377 1,388 25 161 2013 3,461 728 926 817 865 820 945 904 11 197 2014 3,744 501 557 476 406 497 523 6 194 2015 4,421 1,037 1,227 1,044 867 855 — 146 2016 3,119 1,148 736 608 621 1 92 2017 1,490 488 513 738 68 82 2018 1,656 333 198 40 75 2019 1,916 707 261 82 2020 2,223 1,749 62 $ 9,691 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 295 $ 412 $ 582 $ 835 $ 1,161 $ 1,169 $ 1,278 $ 1,285 $ 1,325 $ 1,426 2012 371 707 847 1,034 1,113 1,219 1,260 1,269 1,280 2013 104 339 579 811 791 803 805 855 2014 171 299 331 369 373 493 498 2015 98 259 464 664 863 855 2016 116 203 568 608 617 2017 75 136 365 556 2018 65 90 115 2019 41 209 2020 208 $ 6,619 All outstanding liabilities before 2011, net of reinsurance 343 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 3,415 |
Surety [Member] | |
Insurance Reserves and Policyholder Funds [Abstract] | |
Information About Incurred and Paid Claims Development | The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited. Surety For the Years Ended December 31, As of December 31, 2020 Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance IBNR Reserves Cumulative Number of Reported Claims Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 4,422 $ 4,786 $ 5,080 $ 5,092 $ 4,966 $ 5,031 $ 5,112 $ 5,111 $ 5,112 $ 5,163 $ 7 128 2012 4,979 4,767 5,396 5,345 4,869 4,880 4,892 4,925 4,944 2 89 2013 3,060 2,007 2,743 2,947 2,866 2,809 2,765 2,757 — 58 2014 3,214 3,130 2,990 2,760 2,685 2,617 2,818 43 54 2015 1,902 1,630 1,400 1,359 1,406 1,310 6 50 2016 3,314 1,812 1,865 1,876 1,865 — 46 2017 4,677 3,671 3,799 3,629 13 58 2018 3,528 1,938 1,381 6 62 2019 2,130 657 128 30 2020 2,263 1,887 20 $ 26,787 Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance Accident Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 $ 1,031 $ 3,207 $ 4,622 $ 4,748 $ 4,939 $ 5,022 $ 5,109 $ 5,111 $ 5,112 $ 5,117 2012 2,257 4,581 4,856 5,331 4,869 4,880 4,878 4,916 4,934 2013 323 1,010 1,369 2,763 2,789 2,749 2,765 2,757 2014 1,331 2,327 2,727 2,739 2,664 2,593 2,562 2015 641 856 1,127 1,125 1,128 1,271 2016 1,054 1,732 1,772 1,873 1,862 2017 1,971 3,255 3,523 3,545 2018 1,157 1,454 1,361 2019 259 395 2020 97 $ 23,901 All outstanding liabilities before 2011, net of reinsurance 54 Liabilities for losses, claims and loss adjustment expenses, net of reinsurance $ 2,940 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance [Abstract] | |
Effects of Reinsurance on Premiums Written, Premiums Earned and Insurance Benefits and Losses Incurred | The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows: 2020 2019 Direct premiums written $ 239,687 $ 237,973 Assumed premiums written 23,253 23,275 Ceded premiums written (77,622 ) (77,750 ) Net premiums written $ 185,318 $ 183,498 Direct premiums earned $ 238,209 $ 237,361 Assumed premiums earned 23,144 22,345 Ceded premiums earned (77,814 ) (77,781 ) Net premiums earned $ 183,539 $ 181,925 Provision for benefits and losses incurred $ 175,825 $ 206,390 Reinsurance loss recoveries (55,949 ) (67,165 ) Insurance benefits and losses incurred $ 119,876 $ 139,225 |
Components of Reinsurance Recoverables | Components of reinsurance receivables at December 31, 2020 and 2019 were as follows: 2020 2019 Recoverable on unpaid losses $ 17,600 $ 18,339 Recoverable on unpaid benefits 9,832 10,772 Recoverable on paid losses 447 1,538 Ceded unearned premiums 963 1,155 Ceded advanced premiums 244 331 Total reinsurance receivables $ 29,086 $ 32,135 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Allocation of Total Income Taxes | Total income taxes were allocated as follows: 2020 2019 Total tax expense (benefit) on income $ 3,334 $ (21 ) Tax expense on components of shareholders’ equity: Net unrealized gains on investment securities 3,865 4,783 Total tax expense $ 7,199 $ 4,762 |
Reconciliation of Income Tax Expense (Benefit) | A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as follows: 2020 2019 Federal income tax provision $ 3,256 $ (86 ) Statutory rate 21 % 21 % Dividends-received deduction (12 ) (23 ) Meals & entertainment 20 55 Vested stock & club dues 36 37 Parking disallowance 16 17 Adjustment for prior years’ estimates to actual 18 (21 ) Income tax expense (benefit) $ 3,334 $ (21 ) Effective tax rate 21.5 % 5.2 % |
Deferred Tax Liabilities and Assets | Deferred tax assets and liabilities at December 31, 2020 and 2019 were comprised of the following: 2020 2019 Deferred tax assets: Deferred acquisition costs $ 4,666 $ 2,540 Insurance reserves 2,682 3,323 Impaired assets 822 822 Bad debts and other 326 319 Total deferred tax assets 8,496 7,004 Deferred tax liabilities: Deferred and uncollected premiums $ (409 ) $ (328 ) Net unrealized investment gains (9,235 ) (6,090 ) Other (153 ) (272 ) Total deferred tax liabilities (9,797 ) (6,690 ) Net deferred tax (liability) asset $ (1,301 ) $ 314 |
Components of Income Tax Expense | The components of income tax expense (benefit) were: 2020 2019 Current – Federal $ 5,584 $ 892 Deferred – Federal (2,250 ) (913 ) Total $ 3,334 $ (21 ) |
Junior Subordinated Debentures
Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Junior Subordinated Debentures [Abstract] | |
Financial Structure of Statutory Business Trusts | The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2020 and 2019, was as follows: Atlantic American Statutory Trust I Atlantic American Statutory Trust II JUNIOR SUBORDINATED DEBENTURES (1)(2) Balance December 31, 2020 $ 18,042 $ 23,196 Less: Treasury debt (3) — (7,500 ) Net balance December 31, 2020 $ 18,042 $ 15,696 Net balance December 31, 2019 $ 18,042 $ 15,696 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Interest payable Quarterly Quarterly Maturity date December 4, 2032 May 15, 2033 Redeemable by issuer Yes Yes TRUST PREFERRED SECURITIES Issuance date December 4, 2002 May 15, 2003 Securities issued 17,500 22,500 Liquidation preference per security $ 1 $ 1 Liquidation value $ 17,500 $ 22,500 Coupon rate LIBOR + 4.00% LIBOR + 4.10% Distribution payable Quarterly Quarterly Distribution guaranteed by (4) Atlantic American Corporation Atlantic American Corporation (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) In 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Additional Information of Operating Leases | Additional information regarding the Company’s real estate operating leases is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Other information on operating leases: Cash payments included in the measurement of lease liabilities reported in operating cash flows $ 978 815 Right-of-use assets included in other assets on the consolidated balance sheet 4,832 5,476 Weighted average discount rate 6.8 % 6.8 % Weighted average remaining lease term in years 5.9 years 6.9 years |
Maturities and Present Value of Lease Liabilities | The following table presents maturities and present value of the Company’s lease liabilities: Lease Liability 2021 $ 1,015 2022 1,031 2023 1,048 2024 1,065 2025 1,083 Thereafter 942 Total undiscounted lease payments 6,184 Less: present value adjustment 1,116 Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet $ 5,068 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings (Loss) Per Common Share [Abstract] | |
Reconciliation of Numerator and Denominator used in Earnings (Loss) per Common Share Calculations | A reconciliation of the numerator and denominator of the income (loss) per common share calculations is as follows: For the Year Ended December 31, 2020 Income Weighted Average Shares Outstanding (In thousands) Per Share Amount Basic Earnings Per Common Share Net income before preferred stock dividends $ 12,169 20,441 - Less preferred stock dividends (399 ) — Net income applicable to common shareholders 11,770 20,441 0.58 Diluted Earnings Per Common Share: Effect of Series D preferred stock 399 1,378 Net income applicable to common shareholders $ 12,169 21,819 $ 0.56 For the Year Ended December 31, 2019 Loss Weighted Average Shares Outstanding (In thousands) P er Share Amount Basic and Diluted Loss Per Common Share Net loss before preferred stock dividends $ (386 ) 20,258 - Less preferred stock dividends (399 ) — Net loss applicable to common shareholders $ (785 ) 20,258 $ (.04 ) |
Statutory Reporting (Tables)
Statutory Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reporting [Abstract] | |
Reported statutory net income and surplus for the Parent's insurance subsidiaries | The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows: 2020 2019 Bankers Fidelity, net income (loss) $ 7,712 $ (9,509 ) American Southern, net income 8,575 4,778 Statutory net income (loss) $ 16,287 $ (4,731 ) Bankers Fidelity, surplus $ 42,326 $ 35,546 American Southern, surplus 50,194 45,827 Statutory surplus $ 92,520 $ 81,373 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Assets, Revenue and Income (Loss) Before Income Taxes for Each Business Unit | The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than that in the corporate and other segment is from external sources. For the Year Ended December 31, 2020 American Southern Bankers Fidelity Corporate & Other Adjustments & Eliminations Consolidated Insurance premiums, net $ 62,372 $ 121,167 $ — $ — $ 183,539 Insurance benefits and losses incurred 39,339 80,537 — — 119,876 Expenses deferred (9,910 ) (10,233 ) — — (20,143 ) Amortization and depreciation expense 9,772 10,007 594 — 20,373 Other expenses 19,542 34,403 14,526 (8,732 ) 59,739 Total expenses 58,743 114,714 15,120 (8,732 ) 179,845 Underwriting income 3,629 6,453 — — 10,082 Net investment income 3,586 4,971 1,174 (1,987 ) 7,744 Other income 37 11 6,773 (6,745 ) 76 Operating income (loss) 7,252 11,435 (7,173 ) — 11,514 Net realized gains 3,389 4,031 — — 7,420 Unrealized losses on equity securities (205 ) (3,036 ) (190 ) — (3,431 ) Income (loss) before income taxes $ 10,436 $ 12,430 $ (7,363 ) $ — $ 15,503 Total revenues $ 69,179 $ 127,144 $ 7,757 $ (8,732 ) $ 195,348 Intangibles $ 1,350 $ 1,194 $ — $ — $ 2,544 Total assets $ 158,808 $ 236,197 $ 183,178 $ (172,996 ) $ 405,187 For the Year Ended December 31, 2019 American Southern Bankers Fidelity Corporate & Other Adjustments & Eliminations Consolidated Insurance premiums, net $ 58,680 $ 123,245 $ — $ — $ 181,925 Insurance benefits and losses incurred 39,541 99,684 — — 139,225 Expenses deferred (8,761 ) (10,294 ) — — (19,055 ) Amortization and depreciation expense 9,024 8,709 551 — 18,284 Other expenses 16,869 37,158 15,939 (9,834 ) 60,132 Total expenses 56,673 135,257 16,490 (9,834 ) 198,586 Underwriting income (loss) 2,007 (12,012 ) — — (10,005 ) Net investment income 3,689 5,317 2,597 (2,624 ) 8,979 Other income 75 18 7,307 (7,210 ) 190 Operating income (loss) 5,771 (6,677 ) (6,586 ) — (7,492 ) Net realized gains (losses) (386 ) 840 1,120 — 1,574 Unrealized gains on equity securities 344 2,191 2,976 — 5,511 Income (loss) before income taxes $ 5,729 $ (3,646 ) $ (2,490 ) $ — $ (407 ) Total revenues $ 62,402 $ 131,611 $ 14,000 $ (9,834 ) $ 198,179 Intangibles $ 1,350 $ 1,194 $ — $ — $ 2,544 Total assets $ 141,524 $ 224,122 $ 154,687 $ (142,707 ) $ 377,626 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)Subsidiary | |
Principles of Consolidation [Abstract] | |
Number of insurance subsidiaries owned by the parent | Subsidiary | 4 |
Number of non-insurance subsidiaries owned by the parent | Subsidiary | 1 |
Intangibles [Abstract] | |
Impairment of intangible assets | $ | $ 0 |
Investments: | |
Estimated fair value | $ | $ 143 |
Investments, Aggregated by Type
Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | $ 254,106 | $ 232,472 |
Gross unrealized gains | 31,739 | 13,586 |
Gross unrealized losses | 94 | 347 |
Amortized cost total | 222,461 | 219,233 |
Estimated fair value | 18,716 | 22,922 |
Gross unrealized gains | 12,323 | 15,754 |
Gross unrealized losses | 0 | 0 |
Cost | 6,393 | 7,168 |
Amortized cost of bonds on deposit with insurance regulatory authorities | 10,670 | 10,669 |
Amortized cost pledged as collateral to FHLB | 1,997 | 0 |
Fixed Maturities [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 30,762 | 20,259 |
Gross unrealized gains | 1,381 | 467 |
Gross unrealized losses | 26 | 53 |
Amortized cost total | 29,407 | 19,845 |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 11,802 | 11,940 |
Gross unrealized gains | 898 | 371 |
Gross unrealized losses | 0 | 53 |
Amortized cost total | 10,904 | 11,622 |
Fixed Maturities [Member] | Corporate Securities [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 211,292 | 200,023 |
Gross unrealized gains | 29,402 | 12,690 |
Gross unrealized losses | 68 | 241 |
Amortized cost total | 181,958 | 187,574 |
Fixed Maturities [Member] | Corporate Securities [Member] | Utilities and Telecom [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 30,359 | 26,648 |
Gross unrealized gains | 4,423 | 2,404 |
Gross unrealized losses | 0 | 32 |
Amortized cost total | 25,936 | 24,276 |
Fixed Maturities [Member] | Corporate Securities [Member] | Financial Services [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 78,258 | 73,917 |
Gross unrealized gains | 9,811 | 4,249 |
Gross unrealized losses | 6 | 57 |
Amortized cost total | 68,453 | 69,725 |
Fixed Maturities [Member] | Corporate Securities [Member] | Other Business - Diversified [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 41,145 | 41,706 |
Gross unrealized gains | 5,689 | 2,335 |
Gross unrealized losses | 15 | 98 |
Amortized cost total | 35,471 | 39,469 |
Fixed Maturities [Member] | Corporate Securities [Member] | Other Consumer - Diversified [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 61,530 | 57,752 |
Gross unrealized gains | 9,479 | 3,702 |
Gross unrealized losses | 47 | 54 |
Amortized cost total | 52,098 | 54,104 |
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 250 | 250 |
Gross unrealized gains | 58 | 58 |
Gross unrealized losses | 0 | 0 |
Amortized cost total | 192 | 192 |
Fixed Maturities [Member] | Redeemable Preferred Stocks [Member] | Other Consumer - Diversified [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 250 | 250 |
Gross unrealized gains | 58 | 58 |
Gross unrealized losses | 0 | 0 |
Amortized cost total | 192 | 192 |
Equity Securities [Member] | Common and Non-redeemable Preferred Stocks [Member] | Financial Services [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 2,111 | 3,159 |
Gross unrealized gains | 351 | 624 |
Gross unrealized losses | 0 | 0 |
Cost | 1,760 | 2,535 |
Equity Securities [Member] | Common and Non-redeemable Preferred Stocks [Member] | Other Business - Diversified [Member] | ||
Investments aggregated by type and industry [Abstract] | ||
Estimated fair value | 16,605 | 19,763 |
Gross unrealized gains | 11,972 | 15,130 |
Gross unrealized losses | 0 | 0 |
Cost | $ 4,633 | $ 4,633 |
Investments, Fixed Maturities b
Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value [Abstract] | ||
Due in one year or less | $ 2,041 | $ 0 |
Due after one year through five years | 18,373 | 14,664 |
Due after five years through ten years | 89,892 | 77,934 |
Due after ten years | 124,609 | 130,680 |
Asset backed securities | 19,191 | 9,194 |
Carrying value total | 254,106 | 232,472 |
Amortized Cost [Abstract] | ||
Due in one year or less | 2,015 | 0 |
Due after one year through five years | 17,039 | 14,280 |
Due after five years through ten years | 79,993 | 73,521 |
Due after ten years | 104,527 | 122,321 |
Asset backed securities | 18,887 | 9,111 |
Amortized cost total | $ 222,461 | $ 219,233 |
Investments, Securities with Co
Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities | |
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | $ 11,647 | $ 29,783 |
12 months or longer | 0 | 6,037 |
Total | 11,647 | 35,820 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 94 | 220 |
12 months or longer | 0 | 127 |
Total | 94 | 347 |
Gross OTTI losses charged to realized gains | $ 0 | $ 0 |
Number of securities in unrealized loss position | Securities | 20 | 30 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | $ 7,045 | $ 3,432 |
12 months or longer | 0 | 3,533 |
Total | 7,045 | 6,965 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 26 | 22 |
12 months or longer | 0 | 31 |
Total | 26 | 53 |
Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 3,106 | |
12 months or longer | 0 | |
Total | 3,106 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 53 | |
12 months or longer | 0 | |
Total | 53 | |
Corporate Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months | 4,602 | 23,245 |
12 months or longer | 0 | 2,504 |
Total | 4,602 | 25,749 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract] | ||
Less than 12 months | 68 | 145 |
12 months or longer | 0 | 96 |
Total | $ 68 | $ 241 |
Investments, Income Earned (Det
Investments, Income Earned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment income earned [Abstract] | ||
Gross investment income | $ 7,999 | $ 9,086 |
Investment expenses | 255 | 107 |
Net investment income | 7,744 | 8,979 |
Fixed Maturities [Member] | ||
Investment income earned [Abstract] | ||
Gross investment income | 8,646 | 8,485 |
Equity Securities [Member] | ||
Investment income earned [Abstract] | ||
Gross investment income | 141 | 282 |
Other [Member] | ||
Investment income earned [Abstract] | ||
Gross investment income | $ 319 | |
Gross investment loss | $ (788) |
Investments, Summary of Realize
Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of realized investment gains (losses) [Abstract] | ||
Gains | $ 7,871 | $ 3,224 |
Losses | (451) | (1,650) |
Realized investment gains, net | 7,420 | 1,574 |
Fixed Maturities [Member] | ||
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 835 | 2,003 |
Losses | (450) | (1,650) |
Realized investment gains, net | 385 | 353 |
Proceeds from sales of available-for-sale fixed maturities [Abstract] | ||
Sales proceeds | 18,504 | 117,530 |
Gross gains | 835 | 2,003 |
Gross losses | (450) | (1,650) |
Equity Securities [Member] | ||
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 88 | 1,221 |
Losses | (1) | 0 |
Realized investment gains, net | 87 | 1,221 |
Proceeds from sales of available-for-sale equity securities [Abstract] | ||
Sales proceeds | 5 | 2,568 |
Gross gains | 0 | 1,113 |
Gross losses | (1) | 0 |
Other Invested Assets [Member] | ||
Summary of realized investment gains (losses) [Abstract] | ||
Gains | 6,948 | 0 |
Losses | 0 | 0 |
Realized investment gains, net | 6,948 | $ 0 |
Proceeds from Sales of other invested assets [Abstract] | ||
Sales proceeds | 12,700 | |
Gross gains | $ 6,900 |
Investments, Unrealized Gains (
Investments, Unrealized Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | ||
Net realized and unrealized gains (losses) recognized during the period on equity securities | $ (3,344) | $ 6,732 |
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period | 87 | 1,221 |
Unrealized gains (losses) on equity securities, net | $ (3,431) | $ 5,511 |
Percentage of investment grade securities in bond portfolio | 97.00% |
Investments, Variable Interest
Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entities [Abstract] | ||
Carrying amount of interest | $ 3,238 | $ 9,960 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
VIE, Not Primary Beneficiary [Member] | Other Invested Assets [Member] | ||
Variable Interest Entities [Abstract] | ||
Carrying amount of interest | 3,238 | 9,960 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
Maximum loss exposure | 4,476 | 11,198 |
Outstanding commitments | $ 1,997 | $ 1,997 |
Disclosures About Fair Value _3
Disclosures About Fair Value of Financial Instruments, Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Fixed maturities | $ 254,106 | $ 232,472 |
Equity securities | 18,716 | 22,922 |
Recurring [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Fixed maturities | 254,106 | 232,472 |
Equity securities | 18,716 | 22,922 |
Cash equivalents | 12,010 | 7,173 |
Assets at fair value | 284,832 | 262,567 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Equity securities | 18,573 | 22,922 |
Cash equivalents | 12,010 | 7,173 |
Assets at fair value | 30,583 | 30,095 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Fixed maturities | 254,106 | 232,472 |
Equity securities | 0 | 0 |
Cash equivalents | 0 | 0 |
Assets at fair value | 254,106 | 232,472 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial instruments carried at fair value measured on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Equity securities | 143 | 0 |
Cash equivalents | 0 | 0 |
Assets at fair value | $ 143 | $ 0 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Financial Instruments, Carrying Amount, Estimated Fair Value and Level (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets [Abstract] | |||
Fixed maturities | $ 254,106 | $ 232,472 | |
Equity securities | 18,716 | 22,922 | |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Fixed maturities | [1] | 254,106 | 232,472 |
Equity securities | [1] | 18,716 | 22,922 |
Carrying Amount [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 19,319 | 12,893 | |
Carrying Amount [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Policy loans | 1,975 | 2,007 | |
Investment in unconsolidated trusts | 1,238 | 1,238 | |
Liabilities [Abstract] | |||
Junior Subordinated Debentures, net | 33,738 | 33,738 | |
Carrying Amount [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Other invested assets | 3,238 | 9,960 | |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Fixed maturities | [1] | 254,106 | 232,472 |
Equity securities | [1] | 18,716 | 22,922 |
Estimated Fair Value [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 19,319 | 12,893 | |
Estimated Fair Value [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Policy loans | 1,975 | 2,007 | |
Investment in unconsolidated trusts | 1,238 | 1,238 | |
Liabilities [Abstract] | |||
Junior Subordinated Debentures, net | 32,297 | 35,977 | |
Estimated Fair Value [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Other invested assets | $ 3,238 | $ 9,960 | |
[1] | See the aforementioned information for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets. |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | $ 38,861 | |
Amortization | (19,393) | $ (17,288) |
Balance, end of year | 39,611 | 38,861 |
American Southern [Member] | ||
Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | 1,979 | 2,047 |
Capitalization | 9,910 | 8,761 |
Amortization | (9,590) | (8,829) |
Balance, end of year | 2,299 | 1,979 |
Bankers Fidelity [Member] | ||
Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | 36,882 | 35,047 |
Capitalization | 10,233 | 10,294 |
Amortization | (9,803) | (8,459) |
Balance, end of year | $ 37,312 | $ 36,882 |
Insurance Reserves and Policy_3
Insurance Reserves and Policyholder Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Reserves for life, accident and health [Abstract] | |||||||
Future policy benefits | $ 90,872 | $ 92,490 | |||||
Amount of insurance in force, net | 283,360 | 246,282 | |||||
Unearned premiums | 27,131 | 26,035 | |||||
Losses, claims and loss adjustment expenses | $ 81,448 | $ 72,612 | 79,147 | 81,448 | |||
Other policy liabilities | 1,526 | 1,933 | |||||
Total insurance reserves and policyholder funds | 198,676 | 201,906 | |||||
Annualized premiums for accident and health insurance policies | 109,430 | 112,734 | |||||
Summary of activity in liability for unpaid loss and claim reserves [Roll Forward] | |||||||
Balance at January 1 | 81,448 | 72,612 | |||||
Less: Reinsurance recoverable on unpaid losses | (18,339) | (14,354) | |||||
Net balance at January 1 | 63,109 | 58,258 | |||||
Incurred related to [Abstract] | |||||||
Current year | 122,626 | 137,305 | |||||
Prior years | (3,480) | [1] | (80) | [2] | |||
Total incurred | 119,146 | 137,225 | |||||
Paid related to [Abstract] | |||||||
Current year | 84,518 | 95,489 | |||||
Prior years | 36,190 | 36,885 | |||||
Total paid | 120,708 | 132,374 | |||||
Net balance at December 31 | 61,547 | 63,109 | |||||
Plus: Reinsurance recoverable on unpaid losses | 17,600 | 18,339 | |||||
Balance at December 31 | 79,147 | 81,448 | |||||
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract] | |||||||
Total incurred losses | 119,146 | 137,225 | |||||
Cash surrender value and matured endowments | 1,198 | 1,362 | |||||
Benefit reserve changes | (468) | 638 | |||||
Total insurance benefits and losses incurred | $ 119,876 | $ 139,225 | |||||
Ordinary Life and Annuities [Member] | |||||||
Reserves for life, accident and health [Abstract] | |||||||
Future policy benefits | 54,442 | 55,403 | |||||
Amount of insurance in force, net | 199,827 | 212,774 | |||||
Group Life [Member] | |||||||
Reserves for life, accident and health [Abstract] | |||||||
Future policy benefits | 91 | 93 | |||||
Amount of insurance in force, net | 83,533 | [3] | 33,508 | ||||
Life Insurance Segment [Member] | |||||||
Reserves for life, accident and health [Abstract] | |||||||
Future policy benefits | 54,533 | 55,496 | |||||
Amount of insurance in force, net | 283,360 | 246,282 | |||||
Accident and Health Insurance [Member] | |||||||
Reserves for life, accident and health [Abstract] | |||||||
Future policy benefits | $ 36,339 | $ 36,994 | |||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Policy issue range for future benefits assumptions | prior to 1977 | ||||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Minimum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 2.50% | ||||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Maximum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 5.50% | ||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Policy issue range for future benefits assumptions | 1977 through 1979 | ||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Minimum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 5.50% | ||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Maximum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 7.00% | ||||||
Life, Accident and Health Insurance [Member] | 1980 through 1987 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 9.00% | ||||||
Policy issue range for future benefits assumptions | 1980 through 1987 | ||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Policy issue range for future benefits assumptions | 1988 through 2009 | ||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Minimum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 5.00% | ||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Maximum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 7.00% | ||||||
Life, Accident and Health Insurance [Member] | 2010 through 2012 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 4.00% | ||||||
Policy issue range for future benefits assumptions | 2010 through 2012 | ||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Policy issue range for future benefits assumptions | 2013 through 2020 | ||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Minimum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 3.50% | ||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Maximum [Member] | |||||||
Future policy benefits [Abstract] | |||||||
Interest rates assumed for future policy benefits | 4.00% | ||||||
[1] | Prior years' development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected. Additionally, the Company experienced favorable development in the surety line of business in American Southern due to a reduction in exposure coupled with recoveries on certain prior year losses. | ||||||
[2] | Prior years' development was primarily the result of better than expected development on prior years loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity. | ||||||
[3] | The group life in force amounts increased significantly during 2020. However, the impact on future policy benefits is not significant due to the deferred premium offset to the gross benefit reserve. |
Insurance Reserves and Policy_4
Insurance Reserves and Policyholder Funds, Liability for Unpaid Losses, Claims and Loss Adjustment Expenses (Details) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)Claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | |
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ 59,669 | |||||||||
Duration required for loss data to develop the estimated ultimate incurred claims | 36 months | |||||||||
Minimum [Member] | ||||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Property and casualty claim threshold amount required for review | $ 25,000 | |||||||||
Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 634,358 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 621,458 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 12,900 | |||||||||
Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 211,677 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 174,893 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 36,784 | |||||||||
Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 37,910 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 35,947 | |||||||||
All outstanding liabilities prior period net of reinsurance | 1 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 1,964 | |||||||||
General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 9,691 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 6,619 | |||||||||
All outstanding liabilities prior period net of reinsurance | 343 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 3,415 | |||||||||
Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 26,787 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 23,901 | |||||||||
All outstanding liabilities prior period net of reinsurance | 54 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 2,940 | |||||||||
Accident Year 2011 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 38,297 | $ 38,297 | $ 38,297 | $ 38,299 | $ 38,302 | $ 38,316 | $ 38,327 | $ 38,360 | $ 38,296 | $ 38,188 |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 664,056 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 38,297 | 38,297 | 38,297 | 38,299 | 38,302 | 38,316 | 38,327 | 38,360 | 38,296 | 31,720 |
Accident Year 2011 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 13,328 | 13,329 | 13,330 | 13,385 | 13,495 | 13,281 | 13,289 | 13,235 | 13,802 | 12,263 |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 2,134 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 13,328 | 13,329 | 13,330 | 13,199 | 13,106 | 13,039 | 12,071 | 9,858 | 7,934 | 4,205 |
Accident Year 2011 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,534 | 1,400 | 1,335 | 1,327 | 1,242 | 1,174 | 1,338 | 1,452 | 1,723 | 3,022 |
IBNR Reserves | $ 20 | |||||||||
Cumulative number of reported claims | Claim | 210 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,426 | 1,325 | 1,285 | 1,278 | 1,169 | 1,161 | 835 | 582 | 412 | 295 |
Accident Year 2011 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 5,163 | 5,112 | 5,111 | 5,112 | 5,031 | 4,966 | 5,092 | 5,080 | 4,786 | 4,422 |
IBNR Reserves | $ 7 | |||||||||
Cumulative number of reported claims | Claim | 128 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 5,117 | 5,112 | 5,111 | 5,109 | 5,022 | 4,939 | 4,748 | 4,622 | 3,207 | $ 1,031 |
Accident Year 2012 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 50,984 | 50,984 | 50,985 | 50,987 | 50,989 | 50,998 | 51,021 | 50,996 | 50,021 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 867,050 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 50,984 | 50,984 | 50,985 | 50,987 | 50,989 | 50,998 | 51,021 | 50,996 | 42,267 | |
Accident Year 2012 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 13,373 | 13,373 | 13,357 | 13,343 | 13,313 | 13,707 | 14,108 | 15,007 | 12,980 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 2,343 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 13,373 | 13,373 | 13,288 | 13,211 | 13,197 | 12,932 | 11,507 | 8,791 | 4,627 | |
Accident Year 2012 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,388 | 1,377 | 1,344 | 1,333 | 1,214 | 1,270 | 1,269 | 1,305 | 4,055 | |
IBNR Reserves | $ 25 | |||||||||
Cumulative number of reported claims | Claim | 161 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,280 | 1,269 | 1,260 | 1,219 | 1,113 | 1,034 | 847 | 707 | 371 | |
Accident Year 2012 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 4,944 | 4,925 | 4,892 | 4,880 | 4,869 | 5,345 | 5,396 | 4,767 | 4,979 | |
IBNR Reserves | $ 2 | |||||||||
Cumulative number of reported claims | Claim | 89 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 4,934 | 4,916 | 4,878 | 4,880 | 4,869 | 5,331 | 4,856 | 4,581 | $ 2,257 | |
Accident Year 2013 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 57,014 | 57,015 | 57,016 | 57,021 | 57,023 | 57,034 | 56,970 | 56,974 | ||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 957,363 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 57,014 | 57,015 | 57,016 | 57,021 | 57,023 | 57,034 | 56,970 | 47,770 | ||
Accident Year 2013 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 20,972 | 20,972 | 21,020 | 21,352 | 21,823 | 21,096 | 20,702 | 18,664 | ||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 3,267 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 20,972 | 20,972 | 20,982 | 20,382 | 19,407 | 16,782 | 12,193 | 5,144 | ||
Accident Year 2013 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 904 | 945 | 820 | 865 | 817 | 926 | 728 | 3,461 | ||
IBNR Reserves | $ 11 | |||||||||
Cumulative number of reported claims | Claim | 197 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 855 | 805 | 803 | 791 | 811 | 579 | 339 | 104 | ||
Accident Year 2013 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,757 | 2,765 | 2,809 | 2,866 | 2,947 | 2,743 | 2,007 | 3,060 | ||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 58 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 2,757 | 2,765 | 2,749 | 2,789 | 2,763 | 1,369 | 1,010 | $ 323 | ||
Accident Year 2014 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 56,976 | 56,977 | 56,976 | 56,981 | 56,981 | 56,938 | 57,179 | |||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 939,478 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 56,976 | 56,977 | 56,976 | 56,981 | 56,981 | 56,938 | 48,024 | |||
Accident Year 2014 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,100 | 22,080 | 21,682 | 22,353 | 22,041 | 21,881 | 20,812 | |||
IBNR Reserves | $ 48 | |||||||||
Cumulative number of reported claims | Claim | 3,544 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 21,813 | 21,735 | 20,878 | 20,177 | 17,554 | 13,807 | 6,822 | |||
Accident Year 2014 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 523 | 497 | 406 | 476 | 557 | 501 | 3,744 | |||
IBNR Reserves | $ 6 | |||||||||
Cumulative number of reported claims | Claim | 194 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 498 | 493 | 373 | 369 | 331 | 299 | 171 | |||
Accident Year 2014 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,818 | 2,617 | 2,685 | 2,760 | 2,990 | 3,130 | 3,214 | |||
IBNR Reserves | $ 43 | |||||||||
Cumulative number of reported claims | Claim | 54 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 2,562 | 2,593 | 2,664 | 2,739 | 2,727 | 2,327 | $ 1,331 | |||
Accident Year 2015 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 54,985 | 54,984 | 54,990 | 54,993 | 54,939 | 55,482 | ||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 898,374 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 54,985 | 54,984 | 54,990 | 54,993 | 54,876 | 45,430 | ||||
Accident Year 2015 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 20,680 | 20,086 | 20,007 | 20,017 | 19,857 | 18,521 | ||||
IBNR Reserves | $ 75 | |||||||||
Cumulative number of reported claims | Claim | 3,525 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 20,234 | 19,557 | 17,612 | 14,938 | 11,878 | 6,226 | ||||
Accident Year 2015 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 855 | 867 | 1,044 | 1,227 | 1,037 | 4,421 | ||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 146 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 855 | 863 | 664 | 464 | 259 | 98 | ||||
Accident Year 2015 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,310 | 1,406 | 1,359 | 1,400 | 1,630 | 1,902 | ||||
IBNR Reserves | $ 6 | |||||||||
Cumulative number of reported claims | Claim | 50 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,271 | 1,128 | 1,125 | 1,127 | 856 | $ 641 | ||||
Accident Year 2016 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 63,221 | 63,225 | 63,226 | 59,851 | 58,849 | |||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,036,769 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 63,221 | 63,225 | 63,226 | 59,747 | 49,165 | |||||
Accident Year 2016 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,245 | 22,388 | 21,846 | 21,275 | 20,549 | |||||
IBNR Reserves | $ 140 | |||||||||
Cumulative number of reported claims | Claim | 3,842 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 21,408 | 19,613 | 16,397 | 13,141 | 6,796 | |||||
Accident Year 2016 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 6,289 | 6,289 | 6,352 | 6,386 | 6,877 | |||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,269 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 6,289 | 6,289 | 6,349 | 6,353 | 5,804 | |||||
Accident Year 2016 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 621 | 608 | 736 | 1,148 | 3,119 | |||||
IBNR Reserves | $ 1 | |||||||||
Cumulative number of reported claims | Claim | 92 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 617 | 608 | 568 | 203 | 116 | |||||
Accident Year 2016 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,865 | 1,876 | 1,865 | 1,812 | 3,314 | |||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 46 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,862 | 1,873 | 1,772 | 1,732 | $ 1,054 | |||||
Accident Year 2017 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 69,635 | 69,643 | 69,655 | 67,960 | ||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,510,654 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 69,635 | 69,643 | 69,517 | 57,696 | ||||||
Accident Year 2017 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 25,180 | 23,766 | 24,212 | 22,179 | ||||||
IBNR Reserves | $ 801 | |||||||||
Cumulative number of reported claims | Claim | 3,772 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 22,778 | 20,221 | 16,317 | 7,401 | ||||||
Accident Year 2017 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 5,860 | 5,857 | 5,933 | 6,257 | ||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,324 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 5,860 | 5,856 | 5,914 | 5,215 | ||||||
Accident Year 2017 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 738 | 513 | 488 | 1,490 | ||||||
IBNR Reserves | $ 68 | |||||||||
Cumulative number of reported claims | Claim | 82 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 556 | 365 | 136 | 75 | ||||||
Accident Year 2017 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 3,629 | 3,799 | 3,671 | 4,677 | ||||||
IBNR Reserves | $ 13 | |||||||||
Cumulative number of reported claims | Claim | 58 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 3,545 | 3,523 | 3,255 | $ 1,971 | ||||||
Accident Year 2018 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 80,361 | 80,404 | 79,140 | |||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,782,982 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 80,361 | 80,222 | 66,565 | |||||||
Accident Year 2018 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 27,338 | 25,682 | 24,284 | |||||||
IBNR Reserves | $ 2,072 | |||||||||
Cumulative number of reported claims | Claim | 3,578 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 21,121 | 15,647 | 6,989 | |||||||
Accident Year 2018 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 7,447 | 7,530 | 7,805 | |||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,452 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 7,446 | 7,510 | 6,344 | |||||||
Accident Year 2018 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 198 | 333 | 1,656 | |||||||
IBNR Reserves | $ 40 | |||||||||
Cumulative number of reported claims | Claim | 75 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 115 | 90 | 65 | |||||||
Accident Year 2018 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,381 | 1,938 | 3,528 | |||||||
IBNR Reserves | $ 6 | |||||||||
Cumulative number of reported claims | Claim | 62 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,361 | 1,454 | $ 1,157 | |||||||
Accident Year 2019 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 87,028 | 88,765 | ||||||||
IBNR Reserves | $ 172 | |||||||||
Cumulative number of reported claims | Claim | 2,242,156 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 86,856 | 72,333 | ||||||||
Accident Year 2019 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 24,045 | 25,241 | ||||||||
IBNR Reserves | $ 3,117 | |||||||||
Cumulative number of reported claims | Claim | 3,479 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 14,694 | 7,305 | ||||||||
Accident Year 2019 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 8,026 | 8,526 | ||||||||
IBNR Reserves | $ 2 | |||||||||
Cumulative number of reported claims | Claim | 1,485 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 8,005 | 6,360 | ||||||||
Accident Year 2019 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 707 | 1,916 | ||||||||
IBNR Reserves | $ 261 | |||||||||
Cumulative number of reported claims | Claim | 82 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 209 | 41 | ||||||||
Accident Year 2019 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 657 | 2,130 | ||||||||
IBNR Reserves | $ 128 | |||||||||
Cumulative number of reported claims | Claim | 30 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 395 | $ 259 | ||||||||
Accident Year 2020 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 75,857 | |||||||||
IBNR Reserves | $ 12,728 | |||||||||
Cumulative number of reported claims | Claim | 1,620,697 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 63,129 | |||||||||
Accident Year 2020 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,416 | |||||||||
IBNR Reserves | $ 12,187 | |||||||||
Cumulative number of reported claims | Claim | 2,183 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 5,172 | |||||||||
Accident Year 2020 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 10,288 | |||||||||
IBNR Reserves | $ 177 | |||||||||
Cumulative number of reported claims | Claim | 1,526 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 8,347 | |||||||||
Accident Year 2020 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,223 | |||||||||
IBNR Reserves | $ 1,749 | |||||||||
Cumulative number of reported claims | Claim | 62 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 208 | |||||||||
Accident Year 2020 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,263 | |||||||||
IBNR Reserves | $ 1,887 | |||||||||
Cumulative number of reported claims | Claim | 20 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 97 |
Insurance Reserves and Policy_5
Insurance Reserves and Policyholder Funds, Average Historical Claims Duration (Details) | Dec. 31, 2020 |
Medicare Supplement [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 83.00% |
2nd Year | 16.90% |
3rd Year | 0.10% |
4th Year | 0.00% |
5th Year | 0.00% |
6th Year | 0.00% |
7th Year | 0.00% |
8th Year | 0.00% |
9th Year | 0.00% |
10th Year | 0.00% |
Automobile Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 29.10% |
2nd Year | 30.90% |
3rd Year | 17.30% |
4th Year | 12.70% |
5th Year | 5.80% |
6th Year | 2.10% |
7th Year | 0.40% |
8th Year | 0.50% |
9th Year | 0.00% |
10th Year | 0.00% |
Automobile Physical Damage [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 85.40% |
2nd Year | 14.20% |
3rd Year | (0.60%) |
4th Year | (0.40%) |
5th Year | 0.00% |
6th Year | 0.00% |
7th Year | 0.00% |
8th Year | 0.00% |
9th Year | 0.00% |
10th Year | 0.00% |
General Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 17.80% |
2nd Year | 17.80% |
3rd Year | 22.50% |
4th Year | 16.90% |
5th Year | 8.40% |
6th Year | 6.30% |
7th Year | 2.80% |
8th Year | 2.20% |
9th Year | 1.70% |
10th Year | 6.60% |
Surety [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 41.20% |
2nd Year | 31.10% |
3rd Year | 10.50% |
4th Year | 9.80% |
5th Year | (1.30%) |
6th Year | 1.80% |
7th Year | 0.30% |
8th Year | 0.20% |
9th Year | 0.20% |
10th Year | 0.10% |
Insurance Reserves and Policy_6
Insurance Reserves and Policyholder Funds, Incurred Paid Claims Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | $ 59,669 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 17,600 | $ 18,339 | |
Unallocated claims adjustment expenses | 1,878 | ||
Total gross liability for unpaid losses, claims and loss adjustment expenses | 79,147 | $ 81,448 | $ 72,612 |
Medicare Supplement [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 12,900 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 8,975 | ||
Automobile Liability [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 36,784 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 6,260 | ||
Automobile Physical Damage [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 1,964 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 3 | ||
General Liability [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 3,415 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 2,362 | ||
Surety [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 2,940 | ||
Other Short-Duration Insurance Lines [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | $ 1,666 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of premiums written, premiums earned and insurance benefits and losses [Abstract] | ||
Direct premiums written | $ 239,687 | $ 237,973 |
Assumed premiums written | 23,253 | 23,275 |
Ceded premiums written | (77,622) | (77,750) |
Net premiums written | 185,318 | 183,498 |
Direct premiums earned | 238,209 | 237,361 |
Assumed premiums earned | 23,144 | 22,345 |
Ceded premiums earned | (77,814) | (77,781) |
Net premiums earned | 183,539 | 181,925 |
Provision for benefits and losses incurred | 175,825 | 206,390 |
Reinsurance loss recoveries | (55,949) | (67,165) |
Total insurance benefits and losses incurred | 119,876 | 139,225 |
Components of reinsurance recoverables [Abstract] | ||
Recoverable on unpaid losses | 17,600 | 18,339 |
Recoverable on unpaid benefits | 9,832 | 10,772 |
Recoverable on paid losses | 447 | 1,538 |
Ceded unearned premiums | 963 | 1,155 |
Ceded advanced premiums | 244 | 331 |
Total reinsurance receivables | $ 29,086 | $ 32,135 |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | ||
Reinsurance Recoverables [Abstract] | ||
Percentage of reinsurance recoverables due from reinsurers | 99.60% | |
General Re Life Corporation [Member] | Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | ||
Reinsurance Recoverables [Abstract] | ||
Reinsurance recoverables due | $ 28,980 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allocation of total income taxes [Abstract] | ||
Total tax expense (benefit) on income | $ 3,334 | $ (21) |
Tax expense on components of shareholders' equity [Abstract] | ||
Net unrealized gains on investment securities | 3,865 | 4,783 |
Total tax expense | 7,199 | 4,762 |
Reconciliation of income tax expense (benefit) [Abstract] | ||
Federal income tax provision | $ 3,256 | $ (86) |
Statutory rate | 21.00% | 21.00% |
Dividends-received deduction | $ (12) | $ (23) |
Meals & entertainment | 20 | 55 |
Vested stock & club dues | 36 | 37 |
Parking disallowance | 16 | 17 |
Adjustment for prior years' estimates to actual | 18 | (21) |
Income tax expense (benefit) | $ 3,334 | $ (21) |
Effective tax rate | 21.50% | 5.20% |
Deferred tax assets [Abstract] | ||
Deferred acquisition costs | $ 4,666 | $ 2,540 |
Insurance reserves | 2,682 | 3,323 |
Impaired assets | 822 | 822 |
Bad debts and other | 326 | 319 |
Total deferred tax assets | 8,496 | 7,004 |
Deferred tax liabilities [Abstract] | ||
Deferred and uncollected premiums | (409) | (328) |
Net unrealized investment gains | (9,235) | (6,090) |
Other | (153) | (272) |
Total deferred tax liabilities | (9,797) | (6,690) |
Net deferred tax asset | 314 | |
Net deferred tax (liability) | (1,301) | |
Components of income tax expense [Abstract] | ||
Current - Federal | 5,584 | 892 |
Deferred - Federal | (2,250) | (913) |
Income tax expense (benefit) | $ 3,334 | $ (21) |
Open tax years | 2017 2018 2019 |
Junior Subordinated Debenture_2
Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)TrustQuarter$ / sharesshares | ||
Debt Instruments [Abstract] | ||
Number of Connecticut statutory business trusts | Trust | 2 | |
Financial structure of statutory business trusts [Abstract] | ||
Net balance December 31, 2020 | $ 33,738 | |
Net balance December 31, 2019 | $ 33,738 | |
Junior Subordinated Debentures [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, effective interest rate percentage | 4.28% | |
Financial structure of statutory business trusts [Abstract] | ||
Number of consecutive quarters for which interest payments can be deferred | Quarter | 20 | |
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Balance December 31, 2020 | $ 18,042 | [1],[2] |
Less: Treasury debt | 0 | [1],[2],[3] |
Net balance December 31, 2020 | 18,042 | [1],[2] |
Net balance December 31, 2019 | $ 18,042 | [1],[2] |
Coupon rate | LIBOR + 4.00% | [1],[2] |
Interest payable | Quarterly | [1],[2] |
Maturity date | Dec. 4, 2032 | [1],[2] |
Redeemable by issuer | Yes | [1],[2] |
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Basis spread on variable rate | 4.00% | |
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Coupon rate | LIBOR + 4.00% | |
Issuance date | Dec. 4, 2002 | |
Securities issued (in shares) | shares | 17,500 | |
Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |
Liquidation value | $ 17,500 | |
Distribution payable | Quarterly | |
Distribution guaranteed by | Atlantic American Corporation | [4] |
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Basis spread on variable rate | 4.00% | |
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Balance December 31, 2020 | $ 23,196 | [1],[2] |
Less: Treasury debt | (7,500) | [1],[2],[3] |
Net balance December 31, 2020 | 15,696 | [1],[2] |
Net balance December 31, 2019 | $ 15,696 | [1],[2] |
Coupon rate | LIBOR + 4.10% | [1],[2] |
Interest payable | Quarterly | [1],[2] |
Maturity date | May 15, 2033 | [1],[2] |
Redeemable by issuer | Yes | [1],[2] |
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Basis spread on variable rate | 4.10% | |
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Coupon rate | LIBOR + 4.10% | |
Issuance date | May 15, 2003 | |
Securities issued (in shares) | shares | 22,500 | |
Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |
Liquidation value | $ 22,500 | |
Distribution payable | Quarterly | |
Distribution guaranteed by | Atlantic American Corporation | [4] |
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||
Financial structure of statutory business trusts [Abstract] | ||
Basis spread on variable rate | 4.10% | |
[1] | For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures' respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company's common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. | |
[2] | The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. | |
[3] | In 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. | |
[4] | The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation. |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Lease | Dec. 31, 2019USD ($) | |
Lease description [Abstract] | ||
Number of operating lease agreements | Lease | 2 | |
Lease expense | $ 1,014 | $ 1,014 |
Other information on operating leases [Abstract] | ||
Cash payments included in the measurement of lease liabilities reported in operating cash flows | 978 | 815 |
Right-of-use assets included in other assets on the consolidated balance sheet | $ 4,832 | $ 5,476 |
Weighted average discount rate | 6.80% | 6.80% |
Weighted average remaining lease term in years | 5 years 10 months 24 days | 6 years 10 months 24 days |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | OtherAssets | |
Maturities and present value of lease liabilities [Abstract] | ||
2021 | $ 1,015 | |
2022 | 1,031 | |
2023 | 1,048 | |
2024 | 1,065 | |
2025 | 1,083 | |
Thereafter | 942 | |
Total undiscounted lease payments | 6,184 | |
Less: present value adjustment | 1,116 | |
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet | $ 5,068 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | |
Second Lease [Member] | ||
Lease description [Abstract] | ||
Lease term | 10 years | |
Renewal option period | 7 years |
Benefit Plans (Details)
Benefit Plans (Details) - 2012 Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Awards [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Number of shares authorized for issuance (in shares) | 2,000,000 | |
Shares available for future grant (in shares) | 935,200 | 920,200 |
Stock Options [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Options granted (in shares) | 0 | 0 |
Options outstanding (in shares) | 0 | 0 |
Restricted Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Restricted shares issued (in shares) | 20,000 | 355,000 |
Estimated fair value of shares issued | $ 38 | $ 948 |
Restricted shares forfeited (in shares) | 35,000 | |
Estimated fair value of shares forfeited | $ 98 | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Vesting period | 1 year | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Vesting period | 3 years |
Benefit Plans, 401(k) Plans (De
Benefit Plans, 401(k) Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
401(k) Plan [Abstract] | ||
Maximum percentage of compensation employees may defer | 50.00% | |
Total matching contribution | $ 231 | $ 230 |
Employer maximum contribution to plan | 35.00% | 35.00% |
Percentage of participants contribution | 6.00% | 6.00% |
Safe harbor non-elective contribution | 3.00% | 3.00% |
Safe harbor non-elective contribution | $ 520 | $ 524 |
Employer contribution graded vesting period | 5 years |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Preferred Stock [Abstract] | ||
Preferred Stock, outstanding (in shares) | 55,000 | 55,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Series D Preferred Stock [Member] | ||
Preferred Stock [Abstract] | ||
Preferred Stock, outstanding (in shares) | 55,000 | 55,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, redemption value (in dollars per share) | 100 | 100 |
Accrued annual dividends rate (in dollars per share) | $ 7.25 | $ 7.25 |
Number of preferred stock shares convertible to common shares (in shares) | 1,378,000 | 1,378,000 |
Maximum number of common stock issuable from conversion of preference shares, without obtaining prior shareholder approval (in shares) | 2,703,000 | 2,703,000 |
Dividends accrued but unpaid | $ 18 | $ 18 |
Dividends paid on preferred stock | $ 399 | $ 399 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Basic Earnings Per Common Share [Abstract] | ||
Net income (loss) before preferred stock dividends | $ 12,169 | $ (386) |
Less preferred stock dividends | (399) | (399) |
Net income (loss) applicable to common shareholders | 11,770 | $ (785) |
Diluted Earnings Per Common Share [Abstract] | ||
Net income (loss) applicable to common shareholders, Diluted | $ 12,169 | |
Weighted Average Shares [Abstract] | ||
Weighted average shares outstanding, Basic and Diluted (in shares) | 20,258 | |
Weighted average shares outstanding, Basic (in shares) | 20,441 | |
Weighted average shares outstanding, Diluted (in shares) | 21,819 | |
Per Share Amount [Abstract] | ||
Net income (loss) applicable to common shareholders, Basic and Diluted (in dollars per share) | $ (0.04) | |
Net income (loss) applicable to common shareholders, Basic (in dollars per share) | $ 0.58 | (0.04) |
Net income (loss) applicable to common shareholders, Diluted (in dollars per share) | $ 0.56 | $ (0.04) |
Series D Preferred Stock [Member] | ||
Diluted Earnings Per Common Share [Abstract] | ||
Effect of Series D preferred stock | $ 399 | |
Weighted Average Shares [Abstract] | ||
Effect of Series D preferred stock (in shares) | 1,378 |
Statutory Reporting (Details)
Statutory Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Net Income and Surplus [Abstract] | ||
Dividends received from its subsidiaries | $ 3,900 | $ 4,800 |
Maximum dividend payments by insurance subsidiaries without requiring prior approval | 9,589 | |
Statutory Accounting Practices [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | 16,287 | (4,731) |
Statutory surplus | 92,520 | 81,373 |
Statutory Accounting Practices [Member] | Bankers Fidelity [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | 7,712 | (9,509) |
Statutory surplus | 42,326 | 35,546 |
Statutory Accounting Practices [Member] | American Southern [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | 8,575 | 4,778 |
Statutory surplus | $ 50,194 | $ 45,827 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)ft²Directorshares | Dec. 31, 2019USD ($)shares | |
Related Party Transaction [Abstract] | ||
Number of board of directors | Director | 2 | |
Payment of dividends on Series D Preferred Stock | $ 399 | $ 399 |
Series D Preferred Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Payment of dividends on Series D Preferred Stock | $ 399 | 399 |
Gray Television, Inc [Member] | ||
Related Party Transaction [Abstract] | ||
Office and covered garage space leased | ft² | 49,586 | |
Rental expense for operating leases | $ 939 | 908 |
Remaining fractional interest in aircraft arrangement transferred to related party | 151 | |
Members of Management [Member] | ||
Related Party Transaction [Abstract] | ||
Aggregate carrying value of investments in Gray | 16,606 | 19,764 |
Premiums paid by Gray for employee benefit plans | $ 1,038 | $ 1,022 |
Members of Management [Member] | Class A common stock [Member] | ||
Related Party Transaction [Abstract] | ||
Shares of Gray common stock owned (in shares) | shares | 880,272 | 880,272 |
Members of Management [Member] | Common Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Shares of Gray common stock owned (in shares) | shares | 106,000 | 106,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | $ 183,539 | $ 181,925 |
Insurance benefits and losses incurred | 119,876 | 139,225 |
Expenses deferred | (20,143) | (19,055) |
Amortization and depreciation expense | 20,373 | 18,284 |
Other expenses | 59,739 | 60,132 |
Total benefits and expenses | 179,845 | 198,586 |
Underwriting income (loss) | 10,082 | (10,005) |
Net investment income | 7,744 | 8,979 |
Other income | 76 | 190 |
Operating income (loss) | 11,514 | (7,492) |
Net realized gains (losses) | 7,420 | 1,574 |
Unrealized gains (losses) on equity securities | (3,431) | 5,511 |
Income (loss) before income taxes | 15,503 | (407) |
Total revenues | 195,348 | 198,179 |
Intangibles | 2,544 | 2,544 |
Total assets | 405,187 | 377,626 |
Operating Segments [Member] | American Southern [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 62,372 | 58,680 |
Insurance benefits and losses incurred | 39,339 | 39,541 |
Expenses deferred | (9,910) | (8,761) |
Amortization and depreciation expense | 9,772 | 9,024 |
Other expenses | 19,542 | 16,869 |
Total benefits and expenses | 58,743 | 56,673 |
Underwriting income (loss) | 3,629 | 2,007 |
Net investment income | 3,586 | 3,689 |
Other income | 37 | 75 |
Operating income (loss) | 7,252 | 5,771 |
Net realized gains (losses) | 3,389 | (386) |
Unrealized gains (losses) on equity securities | (205) | 344 |
Income (loss) before income taxes | 10,436 | 5,729 |
Total revenues | 69,179 | 62,402 |
Intangibles | 1,350 | 1,350 |
Total assets | 158,808 | 141,524 |
Operating Segments [Member] | Bankers Fidelity [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 121,167 | 123,245 |
Insurance benefits and losses incurred | 80,537 | 99,684 |
Expenses deferred | (10,233) | (10,294) |
Amortization and depreciation expense | 10,007 | 8,709 |
Other expenses | 34,403 | 37,158 |
Total benefits and expenses | 114,714 | 135,257 |
Underwriting income (loss) | 6,453 | (12,012) |
Net investment income | 4,971 | 5,317 |
Other income | 11 | 18 |
Operating income (loss) | 11,435 | (6,677) |
Net realized gains (losses) | 4,031 | 840 |
Unrealized gains (losses) on equity securities | (3,036) | 2,191 |
Income (loss) before income taxes | 12,430 | (3,646) |
Total revenues | 127,144 | 131,611 |
Intangibles | 1,194 | 1,194 |
Total assets | 236,197 | 224,122 |
Corporate and Other [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 594 | 551 |
Other expenses | 14,526 | 15,939 |
Total benefits and expenses | 15,120 | 16,490 |
Net investment income | 1,174 | 2,597 |
Other income | 6,773 | 7,307 |
Operating income (loss) | (7,173) | (6,586) |
Net realized gains (losses) | 0 | 1,120 |
Unrealized gains (losses) on equity securities | (190) | 2,976 |
Income (loss) before income taxes | (7,363) | (2,490) |
Total revenues | 7,757 | 14,000 |
Intangibles | 0 | 0 |
Total assets | 183,178 | 154,687 |
Adjustments & Eliminations [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 0 | 0 |
Other expenses | (8,732) | (9,834) |
Total benefits and expenses | (8,732) | (9,834) |
Net investment income | (1,987) | (2,624) |
Other income | (6,745) | (7,210) |
Operating income (loss) | 0 | 0 |
Net realized gains (losses) | 0 | 0 |
Unrealized gains (losses) on equity securities | 0 | 0 |
Income (loss) before income taxes | 0 | 0 |
Total revenues | (8,732) | (9,834) |
Intangibles | 0 | 0 |
Total assets | $ (172,996) | $ (142,707) |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Mar. 23, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Dividends declared on common stock per share (in dollars per share) | $ 0 | $ 0.02 | |
Subsequent Events [Member] | |||
Subsequent Event [Line Items] | |||
Dividends declared, date declared | Mar. 23, 2021 | ||
Dividends declared on common stock per share (in dollars per share) | $ 0.02 | ||
Dividends declared, date payable | Apr. 13, 2021 |
Schedule II CONDENSED FINANCI_2
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
ASSETS [Abstract] | |||
Cash and cash equivalents | $ 19,319 | $ 12,893 | |
Investments | 279,311 | 268,637 | |
Investments in unconsolidated trusts | 1,238 | 1,238 | |
Other assets | 7,804 | 9,108 | |
Total assets | 405,187 | 377,626 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | |||
Deferred income taxes, net | 1,301 | 0 | |
Other payables | 26,412 | 23,588 | |
Junior subordinated debentures | 33,738 | 33,738 | |
Total liabilities | 260,127 | 259,232 | |
Shareholders' equity | 145,060 | 118,394 | |
Total liabilities and shareholders' equity | 405,187 | 377,626 | |
REVENUE [Abstract] | |||
Unrealized gains (losses) on equity securities, net | (3,431) | 5,511 | |
Other | 76 | 190 | |
Total revenue | 195,348 | 198,179 | |
INTEREST EXPENSE | 1,610 | 2,130 | |
INCOME TAX BENEFIT | (3,334) | 21 | |
Net income (loss) | 12,169 | (386) | |
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | |||
Net Income (loss) | 12,169 | (386) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized investment gains, net | (7,420) | (1,574) | |
Unrealized (gains) losses on equity securities, net | 3,431 | (5,511) | |
Depreciation and amortization | 980 | 996 | |
Compensation expense related to share awards | 437 | 353 | |
Distributions received from equity method investees | 0 | 379 | |
Deferred income tax benefit | (2,250) | (913) | |
Increase in accounts payable and accrued expenses | 2,324 | 3,472 | |
Other, net | 1,931 | (5,005) | |
Net cash provided by (used in) operating activities | 8,971 | (1,807) | |
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | |||
Investments purchased | (27,489) | (124,029) | |
Additions to property and equipment | (233) | (69) | |
Net cash (used in) provided by investing activities | (2,064) | 3,009 | |
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | |||
Payment of dividends on Series D preferred stock | (399) | (399) | |
Payment of dividends on common stock | 0 | (403) | |
Proceeds from shares issued under stock plans | 9 | 26 | |
Treasury stock acquired - share repurchase authorization | 0 | (71) | |
Treasury stock acquired - net employee share-based compensation | (91) | (92) | |
Net cash used in financing activities | (481) | (939) | |
Net increase in cash | 6,426 | 263 | |
Cash and cash equivalents at beginning of year | 12,893 | 12,630 | |
Cash and cash equivalents at end of year | 19,319 | 12,893 | |
Supplemental disclosure [Abstract] | |||
Cash paid for interest | 1,665 | 2,155 | |
Cash paid for income taxes | 3,883 | 1,662 | |
Parent Company [Member] | |||
ASSETS [Abstract] | |||
Cash and cash equivalents | 2,090 | 2,068 | |
Investments | 2,598 | 3,267 | |
Investment in subsidiaries | 172,996 | 142,707 | |
Investments in unconsolidated trusts | 1,238 | 1,238 | |
Income taxes receivable from subsidiaries | 1,683 | 2,304 | |
Other assets | 4,311 | 5,126 | |
Total assets | 184,916 | 156,710 | |
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | |||
Deferred income taxes, net | 1,765 | 346 | |
Other payables | 4,353 | 4,232 | |
Junior subordinated debentures | 33,738 | 33,738 | |
Total liabilities | 39,856 | 38,316 | |
Shareholders' equity | 145,060 | 118,394 | |
Total liabilities and shareholders' equity | 184,916 | 156,710 | |
REVENUE [Abstract] | |||
Fee income from subsidiaries | 6,745 | 7,210 | |
Distributed earnings from subsidiaries | 3,900 | 4,800 | |
Unrealized gains (losses) on equity securities, net | (191) | 2,976 | |
Other | (784) | 1,190 | |
Total revenue | 9,670 | 16,176 | |
GENERAL AND ADMINISTRATIVE EXPENSES | 11,521 | 11,731 | |
INTEREST EXPENSE | 1,610 | 2,130 | |
Earnings before tax and equity in undistributed earnings (losses) of subsidiaries | (3,461) | 2,315 | |
INCOME TAX BENEFIT | [1] | (3,623) | (2,035) |
Earnings after tax but before equity in undistributed earnings (losses) of subsidiaries | 162 | 4,350 | |
EQUITY IN UNDISTRIBUTED EARNINGS (LOSS) OF SUBSIDIARIES, NET | 12,007 | (4,736) | |
Net income (loss) | 12,169 | (386) | |
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | |||
Net Income (loss) | 12,169 | (386) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized investment gains, net | 0 | (1,120) | |
Unrealized (gains) losses on equity securities, net | 191 | (2,976) | |
Depreciation and amortization | 594 | 552 | |
Compensation expense related to share awards | 437 | 353 | |
Distributions received from equity method investees | 0 | 51 | |
Equity in undistributed (earnings) loss of subsidiaries, net | (12,007) | 4,736 | |
Decrease in intercompany taxes | 622 | 551 | |
Deferred income tax benefit | (2,446) | (913) | |
Increase in accounts payable and accrued expenses | 121 | 2,360 | |
Other, net | 917 | (2,314) | |
Net cash provided by (used in) operating activities | 598 | 894 | |
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | |||
Proceeds from investments sold, called or matured | 0 | 3,574 | |
Investments purchased | 0 | (1,060) | |
Capital contribution to subsidiaries | 0 | (3,500) | |
Additions to property and equipment | (95) | (44) | |
Net cash (used in) provided by investing activities | (95) | (1,030) | |
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | |||
Payment of dividends on Series D preferred stock | (399) | (399) | |
Payment of dividends on common stock | 0 | (403) | |
Proceeds from shares issued under stock plans | 9 | 27 | |
Treasury stock acquired - share repurchase authorization | 0 | (71) | |
Treasury stock acquired - net employee share-based compensation | (91) | (92) | |
Net cash used in financing activities | (481) | (938) | |
Net increase in cash | 22 | (1,074) | |
Cash and cash equivalents at beginning of year | 2,068 | 3,142 | |
Cash and cash equivalents at end of year | 2,090 | 2,068 | |
Supplemental disclosure [Abstract] | |||
Cash paid for interest | 1,665 | 2,155 | |
Cash paid for income taxes | 3,883 | 1,662 | |
Intercompany tax settlement from subsidiaries | $ 1,798 | $ 3,335 | |
[1] | Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company's income tax benefit results from the utilization of the Parent's separate return loss to reduce the consolidated taxable income of the Company. |
Schedule III SUPPLEMENTARY IN_2
Schedule III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Supplementary Insurance Information by Segment [Abstract] | |||||
Deferred Acquisition Costs | $ 39,611 | $ 38,861 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 170,019 | [1] | 173,938 | [2] | |
Unearned Premiums | 27,131 | 26,035 | |||
Other Policy Claims and Benefits Payable | 1,526 | 1,933 | |||
Liability for future policy benefits | 90,872 | 92,490 | |||
Losses and claims | 79,147 | 81,448 | $ 72,612 | ||
Premium Revenue | 183,539 | 181,925 | |||
Net Investment Income | 7,744 | 8,979 | |||
Benefits, Claims, Losses and Settlement Expenses | 119,876 | 139,225 | |||
Amortization of Deferred Acquisition Costs | 19,393 | 17,288 | |||
Other Operating Expenses | 40,576 | 42,073 | |||
Casualty Premiums Written | 64,366 | 60,328 | |||
Bankers Fidelity [Member] | |||||
Supplementary Insurance Information by Segment [Abstract] | |||||
Deferred Acquisition Costs | 37,312 | 36,882 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 115,136 | 121,657 | |||
Unearned Premiums | 4,199 | 4,606 | |||
Other Policy Claims and Benefits Payable | 1,526 | 1,933 | |||
Premium Revenue | 121,167 | 123,245 | |||
Net Investment Income | 4,971 | 5,317 | |||
Benefits, Claims, Losses and Settlement Expenses | 80,537 | 99,684 | |||
Amortization of Deferred Acquisition Costs | 9,803 | 8,459 | |||
Other Operating Expenses | 24,374 | 27,114 | |||
Casualty Premiums Written | 0 | 0 | |||
American Southern [Member] | |||||
Supplementary Insurance Information by Segment [Abstract] | |||||
Deferred Acquisition Costs | 2,299 | 1,979 | |||
Future Policy Benefits, Losses, Claims and Loss Reserves | 54,883 | 52,281 | |||
Unearned Premiums | 22,932 | 21,429 | |||
Other Policy Claims and Benefits Payable | 0 | 0 | |||
Premium Revenue | 62,372 | 58,680 | |||
Net Investment Income | 3,586 | 3,689 | |||
Benefits, Claims, Losses and Settlement Expenses | 39,339 | 39,541 | |||
Amortization of Deferred Acquisition Costs | 9,590 | 8,829 | |||
Other Operating Expenses | 9,814 | 8,303 | |||
Casualty Premiums Written | 64,366 | 60,328 | |||
Corporate and Other [Member] | |||||
Supplementary Insurance Information by Segment [Abstract] | |||||
Premium Revenue | 0 | 0 | |||
Net Investment Income | (813) | (27) | |||
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 | |||
Amortization of Deferred Acquisition Costs | 0 | 0 | |||
Other Operating Expenses | 6,388 | 6,656 | |||
Casualty Premiums Written | $ 0 | $ 0 | |||
[1] | Includes future policy benefits of $90,872 and losses and claims of $79,147. | ||||
[2] | Includes future policy benefits of $92,490 and losses and claims of $81,448. |
Schedule IV REINSURANCE (Detail
Schedule IV REINSURANCE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Life Insurance in Force [Abstract] | ||
Direct Amount | $ 294,392 | $ 257,731 |
Ceded To Other Companies | (11,032) | (11,449) |
Assumed From Other Companies | 0 | 0 |
Net Amounts | 283,360 | 246,282 |
Premiums [Abstract] | ||
Direct Amount | 238,209 | 237,361 |
Ceded To Other Companies | (77,814) | (77,781) |
Assumed From Other Companies | 23,144 | 22,345 |
Net premiums earned | $ 183,539 | $ 181,925 |
Percentage of Amount Assumed to Net | 12.60% | 12.80% |
Bankers Fidelity [Member] | ||
Premiums [Abstract] | ||
Direct Amount | $ 193,082 | $ 195,481 |
Ceded To Other Companies | (71,924) | (72,261) |
Assumed From Other Companies | 9 | 25 |
Net premiums earned | $ 121,167 | $ 123,245 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% |
American Southern [Member] | ||
Premiums [Abstract] | ||
Direct Amount | $ 45,127 | $ 41,880 |
Ceded To Other Companies | (5,890) | (5,520) |
Assumed From Other Companies | 23,135 | 22,320 |
Net premiums earned | $ 62,372 | $ 58,680 |
Percentage of Amount Assumed to Net | 37.10% | 39.60% |
Schedule VI SUPPLEMENTAL INFO_2
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | ||
Deferred Policy Acquisition Costs | $ 2,299 | $ 1,979 |
Reserves | 54,883 | 52,281 |
Unearned Premiums | 22,932 | 21,429 |
Earned Premiums | 62,372 | 58,680 |
Net Investment Income | 3,586 | 3,689 |
Claims and Claim Adjustment Expenses Incurred Related To Current Year | 39,859 | 40,361 |
Claims and Claim Adjustment Expenses Incurred Related To Prior Years | (520) | (820) |
Amortization of Deferred Acquisition Costs | 9,590 | 8,829 |
Paid Claims and Claim Adjustment Expenses | 37,645 | 37,905 |
Premiums Written | $ 64,366 | $ 60,328 |