SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/13/23 Atlantic American Corp. 10-Q 9/30/23 62:8.4M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.65M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 23K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 23K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 19K 10: R1 Document and Entity Information HTML 70K 11: R2 Condensed Consolidated Balance Sheets HTML 131K 12: R3 Condensed Consolidated Balance Sheets HTML 61K (Parenthetical) 13: R4 Condensed Consolidated Statements of Operations HTML 95K 14: R5 Condensed Consolidated Statements of Comprehensive HTML 57K Loss 15: R6 Condensed Consolidated Statements of Shareholders' HTML 119K Equity 16: R7 Condensed Consolidated Statements of Cash Flows HTML 98K 17: R8 Basis of Presentation and Significant Accounting HTML 24K Policies 18: R9 Recently Issued Accounting Standards HTML 82K 19: R10 Investments HTML 260K 20: R11 Fair Values of Financial Instruments HTML 86K 21: R12 Internal-Use Software HTML 24K 22: R13 Insurance Reserves for Losses and Claims HTML 52K 23: R14 Credit Arrangements HTML 58K 24: R15 Earnings (Loss) Per Common Share HTML 66K 25: R16 Income Taxes HTML 57K 26: R17 Leases HTML 45K 27: R18 Commitments and Contingencies HTML 25K 28: R19 Segment Information HTML 82K 29: R20 Recently Issued Accounting Standards (Policies) HTML 80K 30: R21 Recently Issued Accounting Standards (Tables) HTML 47K 31: R22 Investments (Tables) HTML 256K 32: R23 Fair Values of Financial Instruments (Tables) HTML 78K 33: R24 Insurance Reserves for Losses and Claims (Tables) HTML 53K 34: R25 Credit Arrangements (Tables) HTML 42K 35: R26 Earnings (Loss) Per Common Share (Tables) HTML 63K 36: R27 Income Taxes (Tables) HTML 56K 37: R28 Leases (Tables) HTML 42K 38: R29 Segment Information (Tables) HTML 78K 39: R30 Basis of Presentation and Significant Accounting HTML 20K Policies (Details) 40: R31 Recently Issued Accounting Standards, Reinsurance HTML 37K Recoverables (Details) 41: R32 Recently Issued Accounting Standards, Insurance HTML 34K Premium and Other Receivables (Details) 42: R33 Investments, Aggregated by Type and Industry HTML 89K (Details) 43: R34 Investments, Fixed Maturities by Contractual HTML 51K Maturities (Details) 44: R35 Investments, Securities with Continuous Unrealized HTML 58K Loss Position (Details) 45: R36 Investments, Summary of Realized Investment Gains HTML 33K (Losses) (Details) 46: R37 Investments, Unrealized Gains (Losses) on Equity HTML 25K Securities (Details) 47: R38 Investments, Variable Interest Entities (Details) HTML 31K 48: R39 Fair Values of Financial Instruments, Measured on HTML 39K a Recurring Basis (Details) 49: R40 Fair Values of Financial Instruments, Estimated HTML 56K Fair Value and Level (Details) 50: R41 Internal-Use Software (Details) HTML 32K 51: R42 Insurance Reserves for Losses and Claims (Details) HTML 58K 52: R43 Credit Arrangements, Bank Debt (Details) HTML 41K 53: R44 Credit Arrangements, Junior Subordinated HTML 86K Debentures (Details) 54: R45 Earnings (Loss) Per Common Share (Details) HTML 71K 55: R46 Income Taxes (Details) HTML 48K 56: R47 Leases (Details) HTML 61K 57: R48 Segment Information (Details) HTML 56K 60: XML IDEA XML File -- Filing Summary XML 107K 58: XML XBRL Instance -- ef20012318_10q_htm XML 2.29M 59: EXCEL IDEA Workbook of Financial Report Info XLSX 117K 6: EX-101.CAL XBRL Calculations -- aame-20230930_cal XML 230K 7: EX-101.DEF XBRL Definitions -- aame-20230930_def XML 443K 8: EX-101.LAB XBRL Labels -- aame-20230930_lab XML 1.52M 9: EX-101.PRE XBRL Presentations -- aame-20230930_pre XML 855K 5: EX-101.SCH XBRL Schema -- aame-20230930 XSD 124K 61: JSON XBRL Instance as JSON Data -- MetaLinks 448± 658K 62: ZIP XBRL Zipped Folder -- 0001140361-23-052979-xbrl Zip 302K
i ☑ |
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
i Georgia
|
i 58-1027114
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
i 4370 Peachtree Road, N.E.,
i Atlanta, i Georgia
|
i 30319
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
i Common Stock, par value $1.00 per share
|
i AAME
|
i NASDAQ Global Market
|
2
|
||
Part I.
|
Financial Information
|
|
Item 1.
|
3 | |
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
Item 2.
|
21
|
|
Item 4.
|
27
|
|
Part II.
|
Other Information
|
|
Item 2.
|
28
|
|
Item 5.
|
28
|
|
Item 6.
|
28
|
|
29
|
Unaudited
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
i 23,921
|
$
|
i 28,863
|
||||
Investments:
|
||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: $ i 237,213
and $ i 236,766; i i no /
allowance for credit losses)
|
i 203,068
|
i 208,729
|
||||||
Equity securities, at fair value (cost: $ i 4,936 and $ i 4,907)
|
i 8,224
|
i 11,562
|
||||||
Other invested assets (cost: $ i 6,982 and $ i 5,628)
|
i 6,398
|
i 5,386
|
||||||
Policy loans
|
i 1,822
|
i 1,759
|
||||||
Real estate
|
i 38
|
i 38
|
||||||
Investment in unconsolidated trusts
|
i 1,238
|
i 1,238
|
||||||
Total investments
|
i 220,788
|
i 228,712
|
||||||
Receivables:
|
||||||||
Reinsurance (net of allowance for uncollectible reinsurance of $ i 64 and $ i 0)
|
i 21,839
|
i 25,913
|
||||||
Insurance premiums and other (net of allowance for expected credit losses $ i 191
and net of allowance for doubtful accounts $ i 177)
|
i 24,687
|
i 15,386
|
||||||
Deferred income taxes, net
|
i 17,156
|
i 14,163
|
||||||
Deferred acquisition costs
|
i 41,926
|
i 42,281
|
||||||
Other assets
|
i 8,759
|
i 9,202
|
||||||
Intangibles
|
i 2,544
|
i 2,544
|
||||||
Total assets
|
$
|
i 361,620
|
$
|
i 367,064
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Insurance reserves and policyholder funds:
|
||||||||
Future policy benefits
|
$
|
i 84,851
|
$
|
i 85,564
|
||||
Unearned premiums
|
i 30,642
|
i 28,348
|
||||||
Losses and claims
|
i 85,679
|
i 87,484
|
||||||
Other policy liabilities
|
i 816
|
i 1,255
|
||||||
Total insurance reserves and policyholder funds
|
i 201,988
|
i 202,651
|
||||||
Accounts payable and accrued expenses
|
i 24,129
|
i 26,473
|
||||||
Revolving credit facility |
i 3,019 | i 2,009 | ||||||
Junior subordinated debenture obligations, net
|
i 33,738
|
i 33,738
|
||||||
Total liabilities
|
i 262,874
|
i 264,871
|
||||||
Commitments and contingencies (Note 11) | i | i | ||||||
Shareholders’ equity:
|
||||||||
Preferred stock, $ i i 1 /
par, i i 4,000,000 / shares authorized; Series D preferred, i i i i 55,000 / / /
shares issued and outstanding; $ i i 5,500 / redemption value
|
i 55
|
i 55
|
||||||
Common stock, $ i i 1 /
par, i i 50,000,000 / shares authorized; shares issued: i i 22,400,894 / ;
shares outstanding: i 20,402,288 and i 20,407,229
|
i 22,401
|
i 22,401
|
||||||
Additional paid-in capital
|
i 57,425
|
i 57,425
|
||||||
Retained earnings
|
i 53,257
|
i 51,982
|
||||||
Accumulated other comprehensive income
|
( i 26,975
|
)
|
( i 22,149
|
)
|
||||
Unearned stock grant compensation
|
( i 16
|
)
|
( i 132
|
)
|
||||
Treasury stock, at cost: i 1,998,606 and i 1,993,665 shares
|
( i 7,401
|
)
|
( i 7,389
|
)
|
||||
Total shareholders’ equity
|
i 98,746
|
i 102,193
|
||||||
Total liabilities and shareholders’ equity
|
$
|
i 361,620
|
$
|
i 367,064
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023 | 2022 | ||||||||||||||
Revenue:
|
||||||||||||||||
Insurance premiums, net
|
$
|
i 43,746
|
$
|
i 46,380
|
$ | i 135,906 | $ | i 140,526 | ||||||||
Net investment income
|
i 2,325
|
i 2,641
|
i 7,425 | i 7,510 | ||||||||||||
Realized investment gains, net
|
i —
|
i 101
|
i 70 | i 29 | ||||||||||||
Unrealized losses on equity securities, net
|
( i 1,486
|
)
|
( i 2,783
|
)
|
( i 3,367 | ) | ( i 5,456 | ) | ||||||||
Other income
|
i 6
|
i 4
|
i 14 | i 11 | ||||||||||||
Total revenue
|
i 44,591
|
i 46,343
|
i 140,048 | i 142,620 | ||||||||||||
Benefits and expenses:
|
||||||||||||||||
Insurance benefits and losses incurred
|
i 26,818
|
i 30,630
|
i 86,643 | i 94,552 | ||||||||||||
Commissions and underwriting expenses
|
i 11,064
|
i 12,843
|
i 36,830 | i 35,894 | ||||||||||||
Interest expense
|
i 850
|
i 523
|
i 2,407 | i 1,291 | ||||||||||||
Other expense
|
i 3,721
|
i 3,296
|
i 11,631 | i 10,151 | ||||||||||||
Total benefits and expenses
|
i 42,453
|
i 47,292
|
i 137,511 | i 141,888 | ||||||||||||
Income (loss) before income taxes
|
i 2,138
|
( i 949
|
)
|
i 2,537 | i 732 | |||||||||||
Income tax expense (benefit)
|
i 379
|
( i 265
|
)
|
i 480 | i 253 | |||||||||||
Net income (loss)
|
i 1,759
|
( i 684
|
)
|
i 2,057 | i 479 | |||||||||||
Preferred stock dividends
|
( i 100
|
)
|
( i 100
|
)
|
( i 299 | ) | ( i 299 | ) | ||||||||
Net income (loss) applicable to common shareholders
|
$
|
i 1,659
|
$
|
( i 784
|
)
|
$ | i 1,758 | $ | i 180 | |||||||
Earnings (loss) per common share (basic) |
$ | i 0.08 | $ | ( i 0.04 | ) | $ | i 0.09 | $ | i 0.01 | |||||||
Earnings (loss) per common share (diluted)
|
$ | i 0.08 | $ | ( i 0.04 | ) | $ | i 0.09 | $ | i 0.01 |
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023 | 2022 | ||||||||||||||
Net income (loss)
|
$
|
i 1,759
|
$
|
( i 684
|
)
|
$ | i 2,057 | $ | i 479 | |||||||
Other comprehensive loss:
|
||||||||||||||||
Available-for-sale fixed maturity securities:
|
||||||||||||||||
Gross unrealized holding losses arising in the period
|
( i 7,604
|
)
|
( i 12,987
|
)
|
( i 6,038 | ) | ( i 54,548 | ) | ||||||||
Related income tax effect
|
i 1,596
|
i 2,727
|
i 1,267 | i 11,455 | ||||||||||||
Subtotal
|
( i 6,008
|
)
|
( i 10,260
|
)
|
( i 4,771 | ) | ( i 43,093 | ) | ||||||||
Less: reclassification adjustment for net realized gains included in net income (loss)
|
i —
|
( i 101
|
)
|
( i 70 | ) | ( i 48 | ) | |||||||||
Related income tax effect
|
i —
|
i 21
|
i 15 | i 10 | ||||||||||||
Subtotal
|
i —
|
( i 80
|
)
|
( i 55 | ) | ( i 38 | ) | |||||||||
Total other comprehensive loss, net of tax
|
( i 6,008
|
)
|
( i 10,340
|
)
|
( i 4,826 | ) | ( i 43,131 | ) | ||||||||
Total comprehensive loss |
$
|
( i 4,249
|
)
|
$
|
( i 11,024
|
)
|
$ | ( i 2,769 | ) | $ | ( i 42,652 | ) |
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023 | 2022 | ||||||||||||||
Preferred stock:
|
||||||||||||||||
Balance, beginning of period
|
$
|
i 55
|
$
|
i 55
|
$ | i 55 | $ | i 55 | ||||||||
Balance, end of period
|
i 55
|
i 55
|
i 55 | i 55 | ||||||||||||
Common stock:
|
||||||||||||||||
Balance, beginning of period
|
i 22,401
|
i 22,401
|
i 22,401 | i 22,401 | ||||||||||||
Balance, end of period
|
i 22,401
|
i 22,401
|
i 22,401 | i 22,401 | ||||||||||||
Additional paid-in capital:
|
||||||||||||||||
Balance, beginning of period
|
i 57,425
|
i 57,443
|
i 57,425 | i 57,441 | ||||||||||||
Restricted stock grants, net of forfeitures
|
i —
|
i —
|
i — | i 2 | ||||||||||||
Balance, end of period
|
i 57,425
|
i 57,443
|
i 57,425 | i 57,443 | ||||||||||||
Retained earnings:
|
||||||||||||||||
Balance, beginning of period
|
i 52,006
|
i 51,820
|
i 51,982 | i 51,264 | ||||||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023
|
— | — | ( i 75 | ) | — | |||||||||||
Net income (loss)
|
i 1,759
|
( i 684
|
)
|
i 2,057 | i 479 | |||||||||||
Dividends on common stock
|
( i 408
|
)
|
i —
|
( i 408 | ) | ( i 408 | ) | |||||||||
Dividends accrued on preferred stock
|
( i 100
|
)
|
( i 100
|
)
|
( i 299 | ) | ( i 299 | ) | ||||||||
Balance, end of period
|
i 53,257
|
i 51,036
|
i 53,257 | i 51,036 | ||||||||||||
Accumulated other comprehensive loss:
|
||||||||||||||||
Balance, beginning of period
|
( i 20,967
|
)
|
( i 15,103
|
)
|
( i 22,149 | ) | i 17,688 | |||||||||
Other comprehensive loss, net of tax
|
( i 6,008
|
)
|
( i 10,340
|
)
|
( i 4,826 | ) | ( i 43,131 | ) | ||||||||
Balance, end of period
|
( i 26,975
|
)
|
( i 25,443
|
)
|
( i 26,975 | ) | ( i 25,443 | ) | ||||||||
Unearned stock grant compensation:
|
||||||||||||||||
Balance, beginning of period
|
( i 33
|
)
|
( i 79
|
)
|
( i 132 | ) | ( i 73 | ) | ||||||||
Restricted stock grants, net of forfeitures
|
i —
|
i —
|
i — | ( i 71 | ) | |||||||||||
Amortization of unearned compensation
|
i 17
|
i 27
|
i 116 | i 92 | ||||||||||||
Balance, end of period
|
( i 16
|
)
|
( i 52
|
)
|
( i 16 | ) | ( i 52 | ) | ||||||||
Treasury stock:
|
||||||||||||||||
Balance, beginning of period
|
( i 7,401
|
)
|
( i 7,436
|
)
|
( i 7,389 | ) | ( i 7,490 | ) | ||||||||
Restricted stock grants, net of forfeitures
|
i —
|
i —
|
i — | i 69 | ||||||||||||
Net shares acquired related to employee share-based compensation plans
|
i — | ( i 93 | ) | ( i 12 | ) | ( i 108 | ) | |||||||||
Balance, end of period
|
( i 7,401
|
)
|
( i 7,529
|
)
|
( i 7,401 | ) | ( i 7,529 | ) | ||||||||
Total shareholders’ equity
|
$
|
i 98,746
|
$
|
i 97,911
|
$ | i 98,746 | $ | i 97,911 | ||||||||
Dividends declared on common stock per share
|
$
|
i 0.02
|
$
|
i —
|
$ | i 0.02 | $ | i 0.02 | ||||||||
Common shares outstanding:
|
||||||||||||||||
Balance, beginning of period
|
i 20,402,288 | i 20,398,497 | i 20,407,229 | i 20,378,576 | ||||||||||||
Net shares acquired under employee share-based compensation plans | i — | ( i 31,268 | ) | ( i 4,941 | ) | ( i 36,347 | ) | |||||||||
Restricted stock grants, net of forfeitures
|
i — | i — | i — | i 25,000 | ||||||||||||
Balance, end of period | i 20,402,288 | i 20,367,229 | i 20,402,288 | i 20,367,229 |
Nine Months Ended
|
||||||||
2022
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
i 2,057
|
$
|
i 479
|
||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Amortization of (additions to) acquisition costs, net
|
i 355
|
( i 2,718
|
)
|
|||||
Realized investment gains, net
|
( i 70
|
)
|
( i 29
|
)
|
||||
Unrealized losses on equity securities, net
|
i 3,367
|
i 5,456
|
||||||
Losses (earnings) from equity method investees
|
i 343 | ( i 275 | ) | |||||
Compensation expense related to share awards
|
i 116
|
i 92
|
||||||
Depreciation and amortization
|
i 521
|
i 683
|
||||||
Deferred income tax benefit
|
( i 1,711
|
)
|
( i 1,394
|
)
|
||||
Increase in receivables, net
|
( i 5,227 | ) |
( i 4,783
|
)
|
||||
(Decrease) increase in insurance reserves and policyholder funds
|
( i 663
|
)
|
i 2,492
|
|||||
Decrease in accounts payable and accrued expenses
|
( i 2,644
|
)
|
( i 2,350
|
)
|
||||
Other, net
|
i 13
|
i 101
|
||||||
Net cash used in operating activities
|
( i 3,543
|
)
|
( i 2,246
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from investments sold
|
i 5,038
|
i 3,871
|
||||||
Proceeds from investments matured, called or redeemed
|
i 8,000
|
i 8,997
|
||||||
Investments purchased
|
( i 14,942
|
)
|
( i 13,871
|
)
|
||||
Additions to property and equipment
|
( i 75
|
)
|
( i 112
|
)
|
||||
Net cash used in investing activities
|
( i 1,979
|
)
|
( i 1,115
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Payment of dividends on common stock
|
( i 408 | ) | ( i 408 | ) | ||||
Treasury stock acquired — net employee share-based compensation
|
( i 12 | ) | ( i 108 | ) | ||||
Proceeds from revolving credit facility, net
|
i 1,000 | i 1,000 | ||||||
Net cash provided by financing activities
|
i 580
|
i 484
|
||||||
Net decrease in cash and cash equivalents
|
( i 4,942
|
)
|
( i 2,877
|
)
|
||||
Cash and cash equivalents at beginning of period
|
i 28,863
|
i 24,753
|
||||||
Cash and cash equivalents at end of period
|
$
|
i 23,921
|
$
|
i 21,876
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid for interest
|
$
|
i 2,370
|
$
|
i 1,200
|
||||
Cash paid for income taxes |
$ | i 2,026 | $ | i 2,164 |
Note 1. |
Basis of Presentation and Significant Accounting Policies
|
Note 2. |
Recently Issued Accounting Standards
|
At and for the nine
months ended September 30, 2023
|
||||||||
(in thousands)
|
Reinsurance Recoverables,
Net of Allowance for Estimated
Uncollectible Reinsurance
|
Allowance for Estimated
Uncollectible Reinsurance
|
||||||
Balance, beginning of period
|
$
|
i 25,913
|
$
|
i —
|
||||
Cumulative effect of adoption of updated accounting guidance for
credit losses at January 1, 2023 |
i — |
i 75
|
||||||
Current period change for estimated uncollectible reinsurance
|
— |
( i 11
|
)
|
|||||
Write-offs of uncollectible reinsurance recoverables
|
— |
i —
|
||||||
Balance, end of period
|
$
|
i 21,839
|
$
|
i 64
|
At and for the nine months ended September 30, 2023
|
||||||||
(in thousands)
|
Insurance Premiums and Other,
Net of Expected Credit Losses
|
Allowance for Doubtful
Accounts/Expected Credit
Losses
|
||||||
Balance, beginning of period
|
$
|
i 15,386
|
$
|
i 177
|
||||
Cumulative effect of adoption of updated accounting guidance for
credit losses at January 1, 2023 |
i — |
i —
|
||||||
Current period change for expected credit losses
|
— |
i 14
|
||||||
Write-offs of uncollectible insurance premiums and other receivables
|
— | i — | ||||||
Balance, end of period
|
$
|
i 24,687
|
$
|
i 191
|
Note 3. |
Investments
|
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Allowance
for
Credit Losses
|
Cost or
Amortized
Cost
|
||||||||||||||||
Fixed maturities:
|
||||||||||||||||||||
Bonds:
|
||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
i 47,576
|
$
|
i 1
|
$
|
i 6,595
|
$ | i — |
$
|
i 54,170
|
||||||||||
Obligations of states and political subdivisions
|
i 7,570 |
i — |
i 1,947 |
i — | i 9,517 |
|||||||||||||||
Corporate securities:
|
||||||||||||||||||||
Utilities and telecom
|
i 19,693 |
i — |
i 4,064 |
i — | i 23,757 |
|||||||||||||||
Financial services
|
i 55,897 |
i 369 |
i 8,212 |
i — | i 63,740 |
|||||||||||||||
Other business – diversified
|
i 31,035 |
i 87 |
i 5,524 |
i — | i 36,472 |
|||||||||||||||
Other consumer – diversified
|
i 41,073 |
i 3 |
i 8,294 |
i — | i 49,364 |
|||||||||||||||
Total corporate securities
|
i 147,698 |
i 459 |
i 26,094 |
i — | i 173,333 |
|||||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||||||
Other consumer – diversified
|
i 224 |
i 31 |
i — |
i — | i 193 |
|||||||||||||||
Total redeemable preferred stocks
|
i 224 |
i 31 |
i — |
i — | i 193 |
|||||||||||||||
Total fixed maturities
|
$ | i 203,068 | $ | i 491 | $ | i 34,636 | $ | i — | $ | i 237,213 |
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost or
Amortized
Cost
|
|||||||||||||
Fixed maturities:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
i 44,412
|
$
|
i 5
|
$
|
i 5,926
|
$
|
i 50,333
|
||||||||
Obligations of states and political subdivisions
|
i 9,187 | i 4 |
i 1,702 |
i 10,885 | ||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
i 22,090 | i 120 | i 3,299 | i 25,269 | ||||||||||||
Financial services
|
i 59,054 | i 397 | i 7,085 | i 65,742 | ||||||||||||
Other business – diversified
|
i 31,058 | i 161 | i 4,689 | i 35,586 | ||||||||||||
Other consumer – diversified
|
i 42,705 | i 35 | i 6,089 | i 48,759 | ||||||||||||
Total corporate securities
|
i 154,907 | i 713 | i 21,162 | i 175,356 | ||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
i 223 | i 31 | i — | i 192 | ||||||||||||
Total redeemable preferred stocks
|
i 223 | i 31 | i — | i 192 | ||||||||||||
Total fixed maturities
|
$ | i 208,729 | $ | i 753 | $ | i 28,790 | $ | i 236,766 |
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Financial services
|
$ | i 880 | $ | i 577 | $ | i — | $ | i 303 | ||||||||
Other business – diversified
|
i 7,344 |
i 2,711 |
i — |
i 4,633 |
||||||||||||
Total equity securities
|
$ | i 8,224 | $ | i 3,288 | $ | i — | $ | i 4,936 |
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Financial services
|
$ | i 790 | $ | i 516 | $ | i — | $ | i 274 | ||||||||
Other business – diversified
|
i 10,772 |
i 6,139 |
i — |
i 4,633 | ||||||||||||
Total equity securities
|
$ | i 11,562 | $ | i 6,655 | $ | i — | $ | i 4,907 |
Carrying
Value
|
Amortized
Cost
|
Carrying
Value
|
Amortized
Cost
|
|||||||||||||
Due in one year or less
|
$ | i 367 | $ | i 375 | $ | i 3,776 | $ | i 3,797 | ||||||||
Due after one year through five years
|
i 57,498 |
i 61,209 |
i 40,150 |
i 42,174 |
||||||||||||
Due after five years through ten years
|
i 33,444 |
i 38,759 |
i 44,044 |
i 49,711 |
||||||||||||
Due after ten years
|
i 77,744 |
i 97,530 |
i 87,719 |
i 103,095 |
||||||||||||
Asset backed securities
|
i 34,015 |
i 39,340 |
i 33,040 |
i 37,989 |
||||||||||||
Totals
|
$ | i 203,068 | $ | i 237,213 | $ | i 208,729 | $ | i 236,766 |
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
|
$ | i 10,205 | $ | i 264 | $ | i 36,873 | $ | i 6,331 | $ | i 47,078 | $ | i 6,595 | ||||||||||||
Obligations of states and political subdivisions
|
i 2,121 | i 39 | i 5,449 | i 1,908 | i 7,570 | i 1,947 | ||||||||||||||||||
Corporate securities
|
i 12,457 |
i 748 |
i 129,484 |
i 25,346 |
i 141,941 |
i 26,094 |
||||||||||||||||||
Total temporarily impaired securities
|
$ | i 24,783 | $ | i 1,051 | $ | i 171,806 | $ | i 33,585 | $ | i 196,589 | $ | i 34,636 |
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
|
$ | i 23,763 | $ | i 2,410 | $ | i 19,259 | $ | i 3,516 | $ | i 43,022 | $ | i 5,926 | ||||||||||||
Obligations of states and political subdivisions | i 8,183 | i 1,702 | i — | i — | i 8,183 | i 1,702 | ||||||||||||||||||
Corporate securities
|
i 127,928 |
i 16,214 |
i 14,514 |
i 4,948 |
i 142,442 |
i 21,162 |
||||||||||||||||||
Total temporarily impaired securities
|
$ | i 159,874 | $ | i 20,326 | $ | i 33,773 | $ | i 8,464 | $ | i 193,647 | $ | i 28,790 |
Three Months Ended
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total
|
|||||||||||||
Gains
|
$
|
i —
|
$
|
i —
|
$
|
i —
|
$
|
i —
|
||||||||
Losses
|
i — | i — | i — | i — | ||||||||||||
Realized investment gains, net
|
$
|
i —
|
$
|
i —
|
$
|
i —
|
$
|
i —
|
Three Months Ended
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total
|
|||||||||||||
Gains
|
$
|
i 101
|
$
|
i —
|
$
|
i —
|
$
|
i 101
|
||||||||
Losses
|
i —
|
i —
|
i —
|
i —
|
||||||||||||
Realized investment gains, net
|
$
|
i 101
|
$
|
i —
|
$
|
i —
|
$
|
i 101
|
Nine Months Ended
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total
|
|||||||||||||
Gains
|
$
|
i 70
|
$
|
i —
|
$
|
i —
|
$
|
i 70
|
||||||||
Losses
|
i —
|
i —
|
i —
|
i —
|
||||||||||||
Realized investment gains, net
|
$
|
i 70
|
$
|
i —
|
$
|
i —
|
$
|
i 70
|
Nine Months Ended
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total
|
|||||||||||||
Gains | $ | i 101 | $ | i — | $ | i — | $ | i 101 | ||||||||
Losses
|
( i 53
|
)
|
i —
|
( i 19
|
)
|
( i 72
|
)
|
|||||||||
Realized investment gains (losses), net
|
$
|
i 48
|
$
|
i —
|
$
|
( i 19
|
)
|
$
|
i 29
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2023 | 2022 |
2023 |
2022 | |||||||||||||
Net realized and unrealized losses recognized during the period on equity securities
|
$
|
( i 1,486
|
)
|
$
|
( i 2,783
|
)
|
$ | ( i 3,367 | ) | $ | ( i 5,456 | ) | ||||
Less: Net realized gains recognized during the period on equity securities sold during the period
|
i —
|
i —
|
i — | i — | ||||||||||||
Unrealized losses recognized during the reporting period on equity securities, net
|
$
|
( i 1,486
|
)
|
$
|
( i 2,783
|
)
|
$ | ( i 3,367 | ) | $ | ( i 5,456 | ) |
Note 4. |
Fair Values of Financial Instruments
|
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 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 equity security. As of September 30, 2023 and December 31, 2022, the value of the equity security valued using Level 3 criteria was $ i 185 and $ i 156,
respectively. The
equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations.
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities
|
$
|
i —
|
$
|
i 203,068
|
$
|
i —
|
$
|
i 203,068
|
||||||||
Equity securities
|
i 8,039
|
i —
|
i 185
|
i 8,224
|
||||||||||||
Cash equivalents
|
i 14,035
|
i —
|
i —
|
i 14,035
|
||||||||||||
Total
|
$
|
i 22,074
|
$
|
i 203,068
|
$
|
i 185
|
$
|
i 225,327
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities
|
$
|
i —
|
$
|
i 208,729
|
$
|
i —
|
$
|
i 208,729
|
||||||||
Equity securities
|
i 11,406
|
i —
|
i 156
|
i 11,562
|
||||||||||||
Cash equivalents
|
i 18,861
|
i —
|
i —
|
i 18,861
|
||||||||||||
Total
|
$
|
i 30,267
|
$
|
i 208,729
|
$
|
i 156
|
$
|
i 239,152
|
Level in Fair
Value
Hierarchy (1)
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||||||||||
Assets:
|
||||||||||||||||||
Cash and cash equivalents
|
Level 1
|
$
|
i 23,921
|
$
|
i 23,921
|
$
|
i 28,863
|
$
|
i 28,863
|
|||||||||
Fixed maturities
|
Level 2 |
|
i 203,068
|
i 203,068
|
i 208,729
|
i 208,729
|
||||||||||||
Equity securities
|
(1) | |
i 8,224
|
i 8,224
|
i 11,562
|
i 11,562
|
||||||||||||
Other invested assets
|
Level 3
|
i 6,398
|
i 6,398
|
i 5,386
|
i 5,386
|
|||||||||||||
Policy loans
|
Level 2
|
i 1,822
|
i 1,822
|
i 1,759
|
i 1,759
|
|||||||||||||
Investment in unconsolidated trusts
|
Level 2
|
i 1,238
|
i 1,238
|
i 1,238
|
i 1,238
|
|||||||||||||
Liabilities:
|
||||||||||||||||||
Junior subordinated debentures, net
|
Level 2
|
i 33,738
|
i 32,923
|
i 33,738
|
i 33,810
|
|||||||||||||
Revolving credit facility |
Level 2 | i 3,019 | i 3,019 | i 2,009 | i 2,009 |
(1) |
See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.
|
Note 5. |
Internal-Use Software
|
Note 6. |
Insurance Reserves for Losses and Claims
|
Nine Months Ended
|
||||||||
2022
|
||||||||
Beginning insurance reserves for losses and claims, gross |
$
|
i 87,484
|
$
|
i 85,620
|
||||
Less: Reinsurance recoverable on unpaid losses
|
( i 17,647
|
)
|
( i 17,690
|
)
|
||||
Beginning insurance reserves for losses and claims, net
|
i 69,837
|
i 67,930
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
i 82,276
|
i 96,897
|
||||||
Prior accident year development
|
i 2,706 | (1) |
( i 3,544
|
)(2)
|
||||
Total incurred
|
i 84,982
|
i 93,353
|
||||||
Paid related to:
|
||||||||
Current accident year
|
i 43,595
|
i 57,478
|
||||||
Prior accident years
|
i 41,634
|
i 34,647
|
||||||
Total paid
|
i 85,229
|
i 92,125
|
||||||
Ending insurance reserves for losses and claims, net
|
i 69,590
|
i 69,158
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
i 16,089
|
i 17,420
|
||||||
Ending insurance reserves for losses and claims, gross
|
$
|
i 85,679
|
$
|
i 86,578
|
(1) |
Prior years’ development was primarily the result of unfavorable development in the
automobile liability line of business in the property and casualty operations due to inflationary factors.
|
(2) |
Prior years’ development was primarily the result of favorable development in the Medicare
supplement line of business in the life and health operations, as well as favorable development in the surety line of business in the property and casualty operations.
|
Nine Months Ended
|
||||||||
2022
|
||||||||
Total incurred losses
|
$
|
i 84,982
|
$
|
i 93,353
|
||||
Cash surrender value and matured endowments
|
i 1,063
|
i 1,326
|
||||||
Benefit reserve changes
|
i 598
|
( i 127
|
)
|
|||||
Total insurance benefits and losses incurred
|
$
|
i 86,643
|
$
|
i 94,552
|
Note 7. |
Credit
Arrangements
|
Atlantic American
Statutory Trust I
|
Atlantic American
Statutory Trust II
|
|||||||
JUNIOR SUBORDINATED DEBENTURES (1) (2)
|
||||||||
Principal amount owed September 30, 2023
|
$
|
i 18,042
|
$
|
i 23,196
|
||||
Less: Treasury debt (3)
|
i —
|
( i 7,500
|
)
|
|||||
Net balance September 30, 2023
|
$
|
i 18,042
|
$
|
i 15,696
|
||||
Net balance December 31, 2022
|
$
|
i 18,042
|
$
|
i 15,696
|
||||
Coupon rate
|
i 3-Month SOFR + 0.26161 spread adj + 4.00%
|
i 3-Month SOFR + 0.26161 spread adj + 4.10%
|
||||||
Interest payable
|
i Quarterly
|
i Quarterly
|
||||||
Maturity date | i December 4, 2032 | i May 15, 2033 | ||||||
Redeemable by issuer
|
i Yes
|
i Yes
|
||||||
TRUST PREFERRED SECURITIES
|
||||||||
Issuance date
|
||||||||
Securities issued
|
i 17,500
|
i 22,500
|
||||||
Liquidation preference per security
|
$
|
i 1
|
$
|
i 1
|
||||
Liquidation value
|
$
|
i 17,500
|
$
|
i 22,500
|
||||
Coupon rate
|
i 3-Month SOFR + 0.26161 spread adj + 4.00%
|
i 3-Month SOFR + 0.26161 spread adj + 4.10% |
||||||
Distribution payable
|
i Quarterly
|
i Quarterly
|
||||||
Distribution guaranteed by (4)
|
i Atlantic American Corporation
|
i 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 i 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) |
On August 4, 2014, the Company acquired $ i 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.
|
Note 8. |
Earnings (Loss) Per Common Share
|
Three Months Ended
September 30, 2023
|
||||||||||||
Income
|
Weighted
Average Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic Earnings Per Common Share:
|
||||||||||||
Net income
|
$ | i 1,759 | i 20,402 |
|||||||||
Less preferred stock dividends
|
( i 100 | ) | — |
|||||||||
Net income applicable to common shareholders
|
i 1,659 | i 20,402 |
i 0.08 | |||||||||
Diluted Earnings Per Common Share: | ||||||||||||
Effect of Series D preferred stock | i 100 | i 1,378 | ||||||||||
Net income applicable to common shareholders
|
$ | i 1,759 | i 21,780 | $ | i 0.08 |
Three Months Ended
September 30, 2022
|
||||||||||||
Loss |
Weighted
Average Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Loss Per Common Share:
|
||||||||||||
Net loss
|
$ | ( i 684 | ) | i i 20,389 / | ||||||||
Less preferred stock dividends
|
( i 100 | ) | — | |||||||||
Net loss applicable to common shareholders
|
$ | ( i i 784 / | ) | i i 20,389 / |
$ | ( i i 0.04 / | ) |
Nine Months Ended
|
||||||||||||
Income
|
Weighted
Average Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Earnings Per Common Share:
|
||||||||||||
Net income
|
$ | i 2,057 | i i 20,405 / |
|||||||||
Less preferred stock dividends
|
( i 299 | ) | — |
|||||||||
Net income applicable to common shareholders
|
$ | i i 1,758 / | i i 20,405 / |
$ | i i 0.09 / |
Nine Months Ended
|
||||||||||||
Income
|
Weighted
Average Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Earnings Per Common Share:
|
||||||||||||
Net income
|
$ | i 479 | i i 20,390 / |
|||||||||
Less preferred stock dividends
|
( i 299 | ) | — |
|||||||||
Net income applicable to common shareholders
|
$ | i i 180 / | i i 20,390 / |
$ | i i 0.01 / |
Note 9.
|
Income Taxes
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
Federal income tax provision at statutory rate of i 21%
|
$
|
i 449
|
$
|
( i 199
|
)
|
$
|
i 533
|
$
|
i 154
|
|||||||
Dividends-received deduction
|
( i 10
|
)
|
( i 6
|
)
|
( i 27
|
)
|
( i 18
|
)
|
||||||||
Meals and entertainment
|
i 9
|
i 29
|
i 32
|
i 49
|
||||||||||||
Vested stock and club dues |
i 11 | ( i 7 | ) | i 14 | ( i 7 | ) | ||||||||||
Parking disallowance
|
i 5
|
i 4
|
i 13
|
i 12
|
||||||||||||
Penalties and fines |
i — | i — | i — | i 149 | ||||||||||||
Adjustment for prior years’ estimates to actual |
( i 85 | ) | ( i 86 | ) | ( i 85 | ) | ( i 86 | ) | ||||||||
Income tax expense (benefit)
|
$
|
i 379
|
$
|
( i 265
|
)
|
$
|
i 480
|
$
|
i 253
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
Current – Federal
|
$
|
i 790
|
$
|
i 435
|
$
|
i 2,191
|
$
|
i 1,647
|
||||||||
Deferred – Federal
|
( i 411
|
)
|
( i 700
|
)
|
( i 1,711
|
)
|
( i 1,394
|
)
|
||||||||
Total
|
$
|
i 379
|
$
|
( i 265
|
)
|
$
|
i 480
|
$
|
i 253
|
Note 10. |
Leases
|
Nine Months Ended
September 30,
|
||||||||
Other information on operating leases:
|
2023
|
2022
|
||||||
Cash payments included in the measurement of lease
liabilities reported in operating cash flows
|
$
|
i 784
|
$
|
i 772
|
||||
Right-of-use assets included in other assets on the condensed consolidated balance sheet
|
i 2,817
|
i 3,595
|
||||||
Weighted average discount rate
|
i 6.8
|
%
|
i 6.8
|
%
|
||||
Weighted average remaining lease term in years
|
i 3.1 years
|
i 4.1 years
|
Lease Liability |
||||
Remainder of 2023
|
$
|
i 264
|
||
2024
|
i 1,065
|
|||
2025
|
i 1,083
|
|||
2026
|
i 942
|
|||
Thereafter
|
i —
|
|||
Total undiscounted lease payments
|
i 3,354
|
|||
Less: present value adjustment
|
i 343
|
|||
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet
|
$
|
i 3,011
|
Note 11. |
Commitments and Contingencies
|
Note 12. |
Segment Information
|
Assets
|
||||||||
American Southern
|
$
|
i 142,359
|
$
|
i 144,455
|
||||
Bankers Fidelity
|
i 188,875
|
i 195,028
|
||||||
Corporate and Other
|
i 30,386
|
i 27,581
|
||||||
Total assets
|
$
|
i 361,620
|
$
|
i 367,064
|
Revenues |
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
2022 |
2023
|
2022 | ||||||||||||||
American Southern
|
$
|
i 17,652
|
$
|
i 18,538
|
$ | i 54,817 | $ | i 56,540 | ||||||||
Bankers Fidelity
|
i 27,249
|
i 27,641
|
i 85,632 | i 86,099 | ||||||||||||
Corporate and Other
|
( i 310
|
)
|
i 164
|
( i 401 | ) | ( i 19 | ) | |||||||||
Total revenue
|
$
|
i 44,591
|
$
|
i 46,343
|
$ | i 140,048 | $ | i 142,620 |
Income (Loss) Before Income Taxes |
Three Months Ended
September 30,
|
Nine Months Ended
|
||||||||||||||
|
2022
|
2023
|
2022 | |||||||||||||
American Southern
|
$
|
i 1,437
|
$
|
i 1,892
|
$ | i 3,823 | $ | i 4,659 | ||||||||
Bankers Fidelity
|
i 3,502
|
( i 850
|
)
|
i 6,705 | i 2,084 | |||||||||||
Corporate and Other
|
( i 2,801
|
)
|
( i 1,991
|
)
|
( i 7,991 | ) | ( i 6,011 | ) | ||||||||
Income (loss) before income taxes
|
$
|
i 2,138
|
$
|
( i 949
|
)
|
$ | i 2,537 | $ | i 732 |
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
Insurance premiums, net
|
$
|
43,746
|
$
|
46,380
|
$
|
135,906
|
$
|
140,526
|
||||||||
Net investment income
|
2,325
|
2,641
|
7,425
|
7,510
|
||||||||||||
Realized investment gains, net
|
—
|
101
|
70
|
29
|
||||||||||||
Unrealized losses on equity securities, net
|
(1,486
|
)
|
(2,783
|
)
|
(3,367
|
)
|
(5,456
|
)
|
||||||||
Other income
|
6
|
4
|
14
|
11
|
||||||||||||
Total revenue
|
44,591
|
46,343
|
140,048
|
142,620
|
||||||||||||
Insurance benefits and losses incurred
|
26,818
|
30,630
|
86,643
|
94,552
|
||||||||||||
Commissions and underwriting expenses
|
11,064
|
12,843
|
36,830
|
35,894
|
||||||||||||
Interest expense
|
850
|
523
|
2,407
|
1,291
|
||||||||||||
Other expense
|
3,721
|
3,296
|
11,631
|
10,151
|
||||||||||||
Total benefits and expenses
|
42,453
|
47,292
|
137,511
|
141,888
|
||||||||||||
Income (loss) before income taxes
|
$
|
2,138
|
$
|
(949
|
)
|
$
|
2,537
|
$
|
732
|
|||||||
Net income (loss)
|
$
|
1,759
|
$
|
(684
|
)
|
$
|
2,057
|
$
|
479
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
Reconciliation of Non-GAAP Financial Measure
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(In thousands)
|
||||||||||||||||
Net income (loss)
|
$
|
1,759
|
$
|
(684
|
)
|
$
|
2,057
|
$
|
479
|
|||||||
Income tax expense (benefit)
|
379
|
(265
|
)
|
480
|
253
|
|||||||||||
Realized investment gains, net
|
—
|
(101
|
)
|
(70
|
)
|
(29
|
)
|
|||||||||
Unrealized losses on equity securities, net
|
1,486
|
2,783
|
3,367
|
5,456
|
||||||||||||
Non-GAAP operating income
|
$
|
3,624
|
$
|
1,733
|
$
|
5,834
|
$
|
6,159
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Gross written premiums
|
$
|
10,860
|
$
|
12,400
|
$
|
58,365
|
$
|
63,558
|
||||||||
Ceded premiums
|
(1,501
|
)
|
(1,583
|
)
|
(4,476
|
)
|
(4,922
|
)
|
||||||||
Net written premiums
|
$
|
9,359
|
$
|
10,817
|
$
|
53,889
|
$
|
58,636
|
||||||||
Net earned premiums
|
$
|
16,571
|
$
|
17,641
|
$
|
51,662
|
$
|
53,753
|
||||||||
Insurance benefits and losses incurred
|
11,881
|
12,031
|
38,089
|
36,549
|
||||||||||||
Commissions and underwriting expenses
|
4,335
|
4,615
|
12,906
|
15,332
|
||||||||||||
Underwriting income
|
$
|
355
|
$
|
995
|
$
|
667
|
$
|
1,872
|
||||||||
Loss ratio
|
71.7
|
%
|
68.2
|
%
|
73.7
|
%
|
68.0
|
%
|
||||||||
Expense ratio
|
26.2
|
26.2
|
25.0
|
28.5
|
||||||||||||
Combined ratio
|
97.9
|
%
|
94.4
|
%
|
98.7
|
%
|
96.5
|
%
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
(In thousands)
|
||||||||||||||||
Automobile liability
|
$
|
9,455
|
$
|
9,546
|
$
|
29,270
|
$
|
25,731
|
||||||||
Automobile physical damage
|
3,534
|
4,179
|
11,574
|
16,649
|
||||||||||||
General liability
|
1,399
|
1,532
|
4,250
|
4,391
|
||||||||||||
Surety
|
1,592
|
1,485
|
4,696
|
4,453
|
||||||||||||
Other lines
|
591
|
899
|
1,872
|
2,529
|
||||||||||||
Total
|
$
|
16,571
|
$
|
17,641
|
$
|
51,662
|
$
|
53,753
|
Three Months Ended
September 30,
|
Nine Months Ended
|
|||||||||||||||
2022
|
2023
|
2022
|
||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Medicare supplement
|
$
|
32,957
|
$
|
36,766
|
$
|
100,815
|
$
|
112,013
|
||||||||
Other health products
|
3,525
|
3,392
|
10,907
|
9,314
|
||||||||||||
Life insurance
|
4,619
|
3,994
|
14,691
|
12,081
|
||||||||||||
Gross earned premiums
|
41,101
|
44,152
|
126,413
|
133,408
|
||||||||||||
Ceded premiums
|
(13,926
|
)
|
(15,413
|
)
|
(42,169
|
)
|
(46,635
|
)
|
||||||||
Net earned premiums
|
27,175
|
28,739
|
84,244
|
86,773
|
||||||||||||
Insurance benefits and losses incurred
|
14,937
|
18,599
|
48,554
|
58,003
|
||||||||||||
Commissions and underwriting expenses
|
8,810
|
9,893
|
30,373
|
26,012
|
||||||||||||
Total expenses
|
23,747
|
28,492
|
78,927
|
84,015
|
||||||||||||
Underwriting income
|
$
|
3,428
|
$
|
247
|
$
|
5,317
|
$
|
2,758
|
||||||||
Loss ratio
|
55.0
|
%
|
64.7
|
%
|
57.6
|
%
|
66.8
|
%
|
||||||||
Expense ratio
|
32.4
|
34.4
|
36.1
|
30.0
|
||||||||||||
Combined ratio
|
87.4
|
%
|
99.1
|
%
|
93.7
|
%
|
96.8
|
%
|
Period
|
Total Number
of Shares
Purchased
|
Average
Price Paid
per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum Number
of Shares that may
Yet be Purchased
Under the Plans
or Programs
|
||||||||||||
July 1 – July 31, 2023
|
—
|
$
|
—
|
—
|
325,129
|
|||||||||||
August 1 – August 31, 2023
|
—
|
—
|
—
|
325,129
|
||||||||||||
September 1 – September 30, 2023
|
—
|
—
|
—
|
325,129
|
||||||||||||
Total
|
—
|
$
|
—
|
—
|
Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
ATLANTIC AMERICAN CORPORATION
|
|||
(Registrant)
|
|||
Date: November 13, 2023
|
By:
|
/s/ J. Ross Franklin
|
|
Vice President and Chief Financial Officer
|
|||
(Principal Financial and Accounting Officer)
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/15/33 | ||||
12/4/32 | ||||
9/30/26 | ||||
4/12/24 | ||||
12/31/23 | ||||
Filed on: | 11/13/23 | 8-K | ||
10/31/23 | ||||
For Period end: | 9/30/23 | |||
8/31/23 | ||||
7/31/23 | ||||
7/1/23 | ||||
6/30/23 | 10-K, 10-Q, 8-K, DEF 14A | |||
3/31/23 | 10-Q, NT 10-Q | |||
1/1/23 | ||||
12/31/22 | 10-K, 11-K, 5, NT 10-K | |||
9/30/22 | 10-Q | |||
3/15/22 | ||||
5/12/21 | 8-K | |||
3/3/21 | ||||
1/1/20 | ||||
10/31/16 | ||||
8/4/14 | ||||
5/15/03 | ||||
12/4/02 | ||||
List all Filings |