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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/11/18 Atlantic American Corp 10-Q 3/31/18 58:5.8M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 430K 2: EX-31.1 Certification -- §302 - SOA'02 HTML 26K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 26K 4: EX-32.1 Certification -- §906 - SOA'02 HTML 21K 11: R1 Document and Entity Information HTML 43K 12: R2 Condensed Consolidated Balance Sheets (Unaudited) HTML 118K 13: R3 Condensed Consolidated Balance Sheets (Unaudited) HTML 55K (Parenthetical) 14: R4 Condensed Consolidated Statements of Operations HTML 62K (Unaudited) 15: R5 Condensed Consolidated Statements of Comprehensive HTML 40K Income (Loss) (Unaudited) 16: R6 Condensed Consolidated Statements of Shareholders' HTML 60K Equity (Unaudited) 17: R7 Condensed Consolidated Statements of Cash Flows HTML 87K (Unaudited) 18: R8 Basis of Presentation HTML 25K 19: R9 Recently Issued Accounting Standards HTML 27K 20: R10 Investments HTML 256K 21: R11 Fair Values of Financial Instruments HTML 52K 22: R12 Liabilities for Unpaid Losses, Claims and Loss HTML 94K Adjustment Expenses 23: R13 Junior Subordinated Debentures HTML 49K 24: R14 Loss Per Common Share HTML 38K 25: R15 Income Taxes HTML 34K 26: R16 Commitments and Contingencies HTML 21K 27: R17 Segment Information HTML 36K 28: R18 Accumulated Other Comprehensive Income (Loss) HTML 29K 29: R19 Related Party Transactions HTML 21K 30: R20 Recently Issued Accounting Standards (Policies) HTML 27K 31: R21 Investments (Tables) HTML 260K 32: R22 Fair Values of Financial Instruments (Tables) HTML 50K 33: R23 Liabilities for Unpaid Losses, Claims and Loss HTML 103K Adjustment Expenses (Tables) 34: R24 Junior Subordinated Debentures (Tables) HTML 47K 35: R25 Loss Per Common Share (Tables) HTML 37K 36: R26 Income Taxes (Tables) HTML 36K 37: R27 Segment Information (Tables) HTML 36K 38: R28 Accumulated Other Comprehensive Income (Loss) HTML 28K (Tables) 39: R29 Basis of Presentation (Details) HTML 19K 40: R30 Recently Issued Accounting Standards (Details) HTML 46K 41: R31 Investments, Aggregated by Type and Industry HTML 118K (Details) 42: R32 Investments, Fixed Maturities by Contractual HTML 57K Maturities (Details) 43: R33 Investments, Securities with Continuous Unrealized HTML 50K Loss Position (Details) 44: R34 Investments, Fair Value Measured on a Recurring HTML 48K Basis (Details) 45: R35 Investments, Roll-forward of Financial Instruments HTML 25K Measured at Fair Value (Details) 46: R36 Investments, Summary of Realized Investment Gains HTML 24K (Losses) (Details) 47: R37 Investments, Unrealized Gains (Losses) Related to HTML 23K Equity Securities (Details) 48: R38 Fair Values of Financial Instruments (Details) HTML 53K 49: R39 Liabilities for Unpaid Losses, Claims and Loss HTML 82K Adjustment Expenses (Details) 50: R40 Junior Subordinated Debentures (Details) HTML 78K 51: R41 Loss Per Common Share (Details) HTML 33K 52: R42 Income Taxes (Details) HTML 40K 53: R43 Segment Information (Details) HTML 36K 54: R44 Accumulated Other Comprehensive Income (Loss) HTML 48K (Details) 55: R45 Related Party Transactions (Details) HTML 21K 57: XML IDEA XML File -- Filing Summary XML 101K 56: EXCEL IDEA Workbook of Financial Reports XLSX 57K 5: EX-101.INS XBRL Instance -- aame-20180331 XML 1.95M 7: EX-101.CAL XBRL Calculations -- aame-20180331_cal XML 208K 8: EX-101.DEF XBRL Definitions -- aame-20180331_def XML 416K 9: EX-101.LAB XBRL Labels -- aame-20180331_lab XML 1.36M 10: EX-101.PRE XBRL Presentations -- aame-20180331_pre XML 743K 6: EX-101.SCH XBRL Schema -- aame-20180331 XSD 127K 58: ZIP XBRL Zipped Folder -- 0001140361-18-022936-xbrl Zip 144K
Georgia
|
58-1027114
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
4370 Peachtree Road, N.E.,
|
30319
|
|
Atlanta, Georgia
|
(Zip Code)
|
|
(Address of principal executive offices)
|
Part I. Financial Information
|
Page No.
|
|
Item 1.
|
Financial Statements:
|
|
2
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
Item 2.
|
20
|
|
Item 4.
|
26
|
|
Part II. Other Information
|
||
Item 2.
|
27
|
|
Item 6.
|
27
|
|
28
|
ASSETS
|
||||||||
Unaudited
|
||||||||
Cash and cash equivalents
|
$
|
8,438
|
$
|
24,547
|
||||
Investments:
|
||||||||
Fixed maturities, available-for-sale (cost: $222,428 and $212,544)
|
217,848
|
215,108
|
||||||
Equity securities (cost: $10,918 and $10,918)
|
18,936
|
23,355
|
||||||
Other invested assets (cost: $5,663 and $5,626)
|
5,663
|
5,626
|
||||||
Policy loans
|
2,105
|
2,146
|
||||||
Real estate
|
38
|
38
|
||||||
Investment in unconsolidated trusts
|
1,238
|
1,238
|
||||||
Total investments
|
245,828
|
247,511
|
||||||
Receivables:
|
||||||||
Reinsurance
|
20,883
|
17,613
|
||||||
Insurance premiums and other (net of allowance for doubtful accounts: $223 and $209)
|
7,896
|
13,241
|
||||||
Deferred income taxes, net
|
2,271
|
-
|
||||||
Deferred acquisition costs
|
33,163
|
32,694
|
||||||
Other assets
|
4,787
|
5,089
|
||||||
Intangibles
|
2,544
|
2,544
|
||||||
Total assets
|
$
|
325,810
|
$
|
343,239
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Insurance reserves and policyholder funds:
|
||||||||
Future policy benefits
|
$
|
84,368
|
$
|
82,435
|
||||
Unearned premiums
|
16,887
|
23,449
|
||||||
Losses and claims
|
70,120
|
65,689
|
||||||
Other policy liabilities
|
1,577
|
2,010
|
||||||
Total insurance reserves and policyholder funds
|
172,952
|
173,583
|
||||||
Accounts payable and accrued expenses
|
17,396
|
22,342
|
||||||
Deferred income taxes, net
|
-
|
593
|
||||||
Junior subordinated debenture obligations, net
|
33,738
|
33,738
|
||||||
Total liabilities
|
224,086
|
230,256
|
||||||
Commitments and contingencies (Note 9)
|
||||||||
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; shares issued: 22,400,894; shares outstanding: 20,372,444 and 20,449,531
|
22,401
|
22,401
|
||||||
Additional paid-in capital
|
57,431
|
57,495
|
||||||
Retained earnings
|
33,188
|
30,993
|
||||||
Accumulated other comprehensive income (loss)
|
(3,618
|
)
|
9,751
|
|||||
Unearned stock grant compensation
|
(387
|
)
|
(579
|
)
|
||||
Treasury stock, at cost: 2,028,450 and 1,951,363 shares
|
(7,346
|
)
|
(7,133
|
)
|
||||
Total shareholders’ equity
|
101,724
|
112,983
|
||||||
Total liabilities and shareholders’ equity
|
$
|
325,810
|
$
|
343,239
|
Three Months Ended
|
||||||||
2017
|
||||||||
Revenue:
|
||||||||
Insurance premiums
|
$
|
42,202
|
$
|
40,782
|
||||
Investment income
|
2,359
|
2,159
|
||||||
Realized investment gains, net
|
370
|
883
|
||||||
Unrealized losses on equity securities, net
|
(4,419
|
)
|
-
|
|||||
Other income
|
28
|
35
|
||||||
Total revenue
|
40,540
|
43,859
|
||||||
Benefits and expenses:
|
||||||||
Insurance benefits and losses incurred
|
33,172
|
29,997
|
||||||
Commissions and underwriting expenses
|
10,019
|
10,614
|
||||||
Interest expense
|
462
|
409
|
||||||
Other expense
|
3,238
|
3,186
|
||||||
Total benefits and expenses
|
46,891
|
44,206
|
||||||
Loss before income taxes
|
(6,351
|
)
|
(347
|
)
|
||||
Income tax benefit
|
(1,327
|
)
|
(126
|
)
|
||||
Net loss
|
(5,024
|
)
|
(221
|
)
|
||||
Preferred stock dividends
|
(99
|
)
|
(99
|
)
|
||||
Net loss applicable to common shareholders
|
$
|
(5,123
|
)
|
$
|
(320
|
)
|
||
Loss per common share (basic and diluted)
|
$
|
(.25
|
)
|
$
|
(.02
|
)
|
Three Months Ended
|
||||||||
2017
|
||||||||
Net loss
|
$
|
(5,024
|
)
|
$
|
(221
|
)
|
||
Other comprehensive income (loss):
|
||||||||
Available-for-sale securities:
|
||||||||
Gross unrealized holding gain (loss) arising in the period
|
(6,774
|
)
|
4,243
|
|||||
Related income tax effect
|
1,422
|
(1,485
|
)
|
|||||
Less: reclassification adjustment for net realized gains included in net loss
|
(370
|
)
|
(883
|
)
|
||||
Related income tax effect
|
78
|
309
|
||||||
Total other comprehensive income (loss), net of tax
|
(5,644
|
)
|
2,184
|
|||||
Total comprehensive income (loss)
|
$
|
(10,668
|
)
|
$
|
1,963
|
Three Months Ended March 31, 2018
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
|
Unearned
Stock Grant
Compensation
|
Treasury
Stock
|
Total
|
||||||||||||||||||||||||
Balance, December 31, 2017
|
$
|
55
|
$
|
22,401
|
$
|
57,495
|
$
|
30,993
|
$
|
9,751
|
$
|
(579
|
)
|
$
|
(7,133
|
)
|
$
|
112,983
|
||||||||||||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018
|
-
|
-
|
-
|
9,825
|
(9,825
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018
|
-
|
-
|
-
|
(2,100
|
)
|
2,100
|
-
|
-
|
-
|
|||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
(5,024
|
)
|
-
|
-
|
-
|
(5,024
|
)
|
||||||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
-
|
-
|
-
|
(5,644
|
)
|
-
|
-
|
(5,644
|
)
|
||||||||||||||||||||||
Dividends declared on common stock
|
-
|
-
|
-
|
(407
|
)
|
-
|
-
|
-
|
(407
|
)
|
||||||||||||||||||||||
Dividends accrued on preferred stock
|
-
|
-
|
-
|
(99
|
)
|
-
|
-
|
-
|
(99
|
)
|
||||||||||||||||||||||
Restricted stock grants
|
-
|
-
|
(68
|
)
|
-
|
-
|
115
|
(47
|
)
|
-
|
||||||||||||||||||||||
Amortization of unearned compensation
|
-
|
-
|
-
|
-
|
-
|
77
|
-
|
77
|
||||||||||||||||||||||||
Purchase of shares for treasury
|
-
|
-
|
-
|
-
|
-
|
-
|
(169
|
)
|
(169
|
)
|
||||||||||||||||||||||
Issuance of shares under stock plans
|
-
|
-
|
4
|
-
|
-
|
-
|
3
|
7
|
||||||||||||||||||||||||
Balance, March 31, 2018
|
$
|
55
|
$
|
22,401
|
$
|
57,431
|
$
|
33,188
|
$
|
(3,618
|
)
|
$
|
(387
|
)
|
$
|
(7,346
|
)
|
$
|
101,724
|
|||||||||||||
|
||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2017
|
||||||||||||||||||||||||||||||||
Balance, December 31, 2016
|
$
|
55
|
$
|
22,401
|
$
|
57,114
|
$
|
27,272
|
$
|
5,830
|
$
|
(428
|
)
|
$
|
(6,738
|
)
|
$
|
105,506
|
||||||||||||||
Net loss
|
-
|
-
|
-
|
(221
|
)
|
-
|
-
|
-
|
(221
|
)
|
||||||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
-
|
-
|
2,184
|
-
|
-
|
2,184
|
||||||||||||||||||||||||
Dividends declared on common stock
|
-
|
-
|
-
|
(408
|
)
|
-
|
-
|
-
|
(408
|
)
|
||||||||||||||||||||||
Dividends accrued on preferred stock
|
-
|
-
|
-
|
(99
|
)
|
-
|
-
|
-
|
(99
|
)
|
||||||||||||||||||||||
Amortization of unearned compensation
|
-
|
-
|
-
|
-
|
-
|
116
|
-
|
116
|
||||||||||||||||||||||||
Purchase of shares for treasury
|
-
|
-
|
-
|
-
|
-
|
-
|
(105
|
)
|
(105
|
)
|
||||||||||||||||||||||
Issuance of shares under stock plans
|
-
|
-
|
5
|
-
|
-
|
-
|
3
|
8
|
||||||||||||||||||||||||
Balance, March 31, 2017
|
$
|
55
|
$
|
22,401
|
$
|
57,119
|
$
|
26,544
|
$
|
8,014
|
$
|
(312
|
)
|
$
|
(6,840
|
)
|
$
|
106,981
|
Three Months Ended
|
||||||||
2017
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net loss
|
$
|
(5,024
|
)
|
$
|
(221
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Amortization of deferred acquisition costs
|
3,719
|
3,399
|
||||||
Acquisition costs deferred
|
(4,188
|
)
|
(5,036
|
)
|
||||
Realized investment gains, net
|
(370
|
)
|
(883
|
)
|
||||
Unrealized losses on equity securities, net
|
4,419
|
-
|
||||||
Compensation expense related to share awards
|
77
|
116
|
||||||
Depreciation and amortization
|
273
|
387
|
||||||
Deferred income tax benefit
|
(1,363
|
)
|
(126
|
)
|
||||
Decrease in receivables, net
|
1,567
|
4,671
|
||||||
Decrease in insurance reserves
|
(631
|
)
|
(4,276
|
)
|
||||
Decrease in other liabilities
|
(5,453
|
)
|
(4,281
|
)
|
||||
Other, net
|
98
|
102
|
||||||
Net cash used in operating activities
|
(6,876
|
)
|
(6,148
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from investments sold
|
13,373
|
19,782
|
||||||
Proceeds from investments matured, called or redeemed
|
1,529
|
5,842
|
||||||
Investments purchased
|
(23,955
|
)
|
(21,870
|
)
|
||||
Additions to property and equipment
|
(18
|
)
|
(83
|
)
|
||||
Net cash (used in) provided by investing activities
|
(9,071
|
)
|
3,671
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from shares issued under stock plans
|
7
|
8
|
||||||
Purchase of shares for treasury
|
(169
|
)
|
(105
|
)
|
||||
Net cash used in financing activities
|
(162
|
)
|
(97
|
)
|
||||
Net decrease in cash and cash equivalents
|
(16,109
|
)
|
(2,574
|
)
|
||||
Cash and cash equivalents at beginning of period
|
24,547
|
13,252
|
||||||
Cash and cash equivalents at end of period
|
$
|
8,438
|
$
|
10,678
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid for interest
|
$
|
452
|
$
|
408
|
Carrying
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
|
$
|
29,978
|
$
|
87
|
$
|
966
|
$
|
30,857
|
||||||||
Obligations of states and political subdivisions
|
10,666
|
476
|
50
|
10,240
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
18,592
|
1,262
|
487
|
17,817
|
||||||||||||
Financial services
|
54,061
|
1,394
|
1,412
|
54,079
|
||||||||||||
Other business – diversified
|
49,639
|
491
|
2,366
|
51,514
|
||||||||||||
Other consumer – diversified
|
54,720
|
266
|
3,275
|
57,729
|
||||||||||||
Total corporate securities
|
177,012
|
3,413
|
7,540
|
181,139
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
192
|
-
|
-
|
192
|
||||||||||||
Total redeemable preferred stocks
|
192
|
-
|
-
|
192
|
||||||||||||
Total fixed maturities
|
217,848
|
3,976
|
8,556
|
222,428
|
||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Utilities and telecom
|
1,434
|
470
|
-
|
964
|
||||||||||||
Financial services
|
5,500
|
716
|
-
|
4,784
|
||||||||||||
Other business – diversified
|
299
|
252
|
-
|
47
|
||||||||||||
Other consumer – diversified
|
11,703
|
6,580
|
-
|
5,123
|
||||||||||||
Total equity securities
|
18,936
|
8,018
|
-
|
10,918
|
||||||||||||
Other invested assets
|
5,663
|
-
|
-
|
5,663
|
||||||||||||
Policy loans
|
2,105
|
-
|
-
|
2,105
|
||||||||||||
Real estate
|
38
|
-
|
-
|
38
|
||||||||||||
Investments in unconsolidated trusts
|
1,238
|
-
|
-
|
1,238
|
||||||||||||
Total investments
|
$
|
245,828
|
$
|
11,994
|
$
|
8,556
|
$
|
242,390
|
Carrying
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
|
$
|
31,155
|
$
|
149
|
$
|
511
|
$
|
31,517
|
||||||||
Obligations of states and political subdivisions
|
10,809
|
630
|
1
|
10,180
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
21,882
|
1,709
|
130
|
20,303
|
||||||||||||
Financial services
|
53,686
|
2,049
|
453
|
52,090
|
||||||||||||
Other business – diversified
|
44,184
|
1,024
|
1,349
|
44,509
|
||||||||||||
Other consumer – diversified
|
53,200
|
924
|
1,477
|
53,753
|
||||||||||||
Total corporate securities
|
172,952
|
5,706
|
3,409
|
170,655
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
192
|
-
|
-
|
192
|
||||||||||||
Total redeemable preferred stocks
|
192
|
-
|
-
|
192
|
||||||||||||
Total fixed maturities
|
215,108
|
6,485
|
3,921
|
212,544
|
||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Utilities and telecom
|
1,588
|
624
|
-
|
964
|
||||||||||||
Financial services
|
5,634
|
851
|
-
|
4,783
|
||||||||||||
Other business – diversified
|
297
|
250
|
-
|
47
|
||||||||||||
Other consumer – diversified
|
15,836
|
10,712
|
-
|
5,124
|
||||||||||||
Total equity securities
|
23,355
|
12,437
|
-
|
10,918
|
||||||||||||
Other invested assets
|
5,626
|
-
|
-
|
5,626
|
||||||||||||
Policy loans
|
2,146
|
-
|
-
|
2,146
|
||||||||||||
Real estate
|
38
|
-
|
-
|
38
|
||||||||||||
Investments in unconsolidated trusts
|
1,238
|
-
|
-
|
1,238
|
||||||||||||
Total investments
|
$
|
247,511
|
$
|
18,922
|
$
|
3,921
|
$
|
232,510
|
Carrying
Value
|
Amortized
Cost
|
Carrying
Value
|
Amortized
Cost
|
|||||||||||||
Due in one year or less
|
$
|
1,498
|
$
|
1,502
|
$
|
1,653
|
$
|
1,655
|
||||||||
Due after one year through five years
|
16,936
|
17,402
|
13,738
|
14,056
|
||||||||||||
Due after five years through ten years
|
127,271
|
130,853
|
112,847
|
112,116
|
||||||||||||
Due after ten years
|
53,646
|
53,539
|
67,328
|
64,928
|
||||||||||||
Varying maturities
|
18,497
|
19,132
|
19,542
|
19,789
|
||||||||||||
Totals
|
$
|
217,848
|
$
|
222,428
|
$
|
215,108
|
$
|
212,544
|
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
|
$
|
15,379
|
$
|
445
|
$
|
12,018
|
$
|
521
|
$
|
27,397
|
$
|
966
|
||||||||||||
Obligations of states and political subdivisions
|
4,029
|
50
|
-
|
-
|
4,029
|
50
|
||||||||||||||||||
Corporate securities
|
97,572
|
4,118
|
29,050
|
3,422
|
126,622
|
7,540
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
116,980
|
$
|
4,613
|
$
|
41,068
|
$
|
3,943
|
$
|
158,048
|
$
|
8,556
|
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
|
$
|
12,175
|
$
|
162
|
$
|
12,737
|
$
|
349
|
$
|
24,912
|
$
|
511
|
||||||||||||
Obligations of states and political subdivisions
|
999
|
1
|
-
|
-
|
999
|
1
|
||||||||||||||||||
Corporate securities
|
40,108
|
653
|
32,667
|
2,756
|
72,775
|
3,409
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
53,282
|
$
|
816
|
$
|
45,404
|
$
|
3,105
|
$
|
98,686
|
$
|
3,921
|
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 all of its fixed maturities, which consist of U.S. Treasury securities and 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 a matrix pricing concept, which is a mathematical technique used widely in the industry to value debt securities based on various relationships to other benchmark quoted prices.
|
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. The Company’s financial instruments valued using Level 3 criteria consist of a limited number of fixed maturities. As of March 31, 2018 and December 31, 2017, the value of the Company’s fixed maturities valued using Level 3 criteria was $1,339 and $1,369, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations.
|
Quoted Prices
in Active
Markets
for Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities
|
$
|
-
|
$
|
216,509
|
$
|
1,339
|
(1)
|
$
|
217,848
|
|||||||
Equity securities
|
13,657
|
5,279
|
(1)
|
-
|
18,936
|
|||||||||||
Cash equivalents
|
6,807
|
-
|
-
|
6,807
|
||||||||||||
Total
|
$
|
20,464
|
$
|
221,788
|
$
|
1,339
|
$
|
243,591
|
Quoted Prices
in Active
Markets
for Identical
Assets
|
Significant
Other
Observable
Inputs
|
Significant
Unobservable
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||||||
Assets:
|
||||||||||||||||
Fixed maturities
|
$
|
-
|
$
|
213,739
|
$
|
1,369
|
(1)
|
$
|
215,108
|
|||||||
Equity securities
|
17,973
|
5,382
|
(1)
|
-
|
23,355
|
|||||||||||
Cash equivalents
|
13,855
|
-
|
-
|
13,855
|
||||||||||||
Total
|
$
|
31,828
|
$
|
219,121
|
$
|
1,369
|
$
|
252,318
|
Fixed
Maturities
|
||||
Balance, December 31, 2017
|
$
|
1,369
|
||
Total unrealized losses included in other comprehensive loss
|
(30
|
)
|
||
Balance, March 31, 2018
|
$
|
1,339
|
Fixed
Maturities
|
||||
Balance, December 31, 2016
|
$
|
1,264
|
||
Total unrealized gains included in other comprehensive income
|
38
|
|||
Balance, March 31, 2017
|
$
|
1,302
|
Three Months Ended
|
||||||||
2017
|
||||||||
Gross gains
|
$
|
370
|
$
|
931
|
||||
Gross losses
|
-
|
(48
|
)
|
|||||
Realized investment gains, net
|
$
|
370
|
$
|
883
|
|
Three Months Ended
|
|||||||
2017
|
||||||||
Net losses recognized during the period on equity securities
|
$
|
(4,419
|
)
|
$
|
-
|
|||
Less: Net gains (losses) recognized during the period on equity securities sold during the period
|
-
|
-
|
||||||
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date
|
$
|
(4,419
|
)
|
$
|
-
|
Level in Fair
Value
Hierarchy (1)
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||||||||||
Assets:
|
||||||||||||||||||
Cash and cash equivalents
|
Level 1
|
$
|
8,438
|
$
|
8,438
|
$
|
24,547
|
$
|
24,547
|
|||||||||
Fixed maturities
|
(1)
|
217,848
|
217,848
|
215,108
|
215,108
|
|||||||||||||
Equity securities
|
(1)
|
18,936
|
18,936
|
23,355
|
23,355
|
|||||||||||||
Other invested assets
|
Level 3
|
5,663
|
5,663
|
5,626
|
5,626
|
|||||||||||||
Policy loans
|
Level 2
|
2,105
|
2,105
|
2,146
|
2,146
|
|||||||||||||
Real estate
|
Level 2
|
38
|
38
|
38
|
38
|
|||||||||||||
Investment in unconsolidated trusts
|
Level 2
|
1,238
|
1,238
|
1,238
|
1,238
|
|||||||||||||
Liabilities: | ||||||||||||||||||
Junior subordinated debentures, net
|
Level 2
|
33,738
|
33,738
|
33,738
|
33,738
|
(1) |
See Note 3 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.
|
Property and Casualty Insurance Products
|
Three Months Ended
|
|||||||
2017
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
47,997
|
$
|
49,556
|
||||
Less: Reinsurance recoverable on unpaid losses
|
(7,220
|
)
|
(9,806
|
)
|
||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
40,777
|
39,750
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
9,602
|
8,806
|
||||||
Prior accident year development (1)
|
(425
|
)
|
(522
|
)
|
||||
Total incurred
|
9,177
|
8,284
|
||||||
Paid related to:
|
||||||||
Current accident year
|
2,348
|
2,312
|
||||||
Prior accident years
|
5,976
|
5,836
|
||||||
Total paid
|
8,324
|
8,148
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
41,630
|
39,886
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
7,158
|
9,011
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
48,788
|
$
|
48,897
|
(1) |
In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.
|
Medicare Supplement Insurance Products
|
Three Months Ended
|
|||||||
2017
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
15,859
|
$
|
11,263
|
||||
Less: Reinsurance recoverable on unpaid losses
|
(4,748
|
)
|
(990
|
)
|
||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
11,111
|
10,273
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
17,615
|
18,035
|
||||||
Prior accident year development
|
3,343
|
(2)
|
241
|
|||||
Total incurred
|
20,958
|
18,276
|
||||||
Paid related to:
|
||||||||
Current accident year
|
5,873
|
8,797
|
||||||
Prior accident years
|
13,252
|
8,354
|
||||||
Total paid
|
19,125
|
17,151
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
12,944
|
11,398
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
6,535
|
1,819
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
19,479
|
$
|
13,217
|
(2) |
The prior accident year development for Medicare supplement insurance products was primarily due to influenza, the usual driver of elevated morbidity in winter, which was significantly higher than in the previous year and ultimately had an unfavorable effect on the Company’s loss patterns.
|
Other Life and Health Insurance Products
|
Three Months Ended
|
|||||||
2017
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
1,833
|
$
|
1,743
|
||||
Less: Reinsurance recoverable on unpaid losses
|
-
|
-
|
||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
1,833
|
1,743
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
2,516
|
1,527
|
||||||
Prior accident year development
|
(284
|
)
|
653
|
|||||
Total incurred
|
2,232
|
2,180
|
||||||
Paid related to:
|
||||||||
Current accident year
|
998
|
1,056
|
||||||
Prior accident years
|
1,214
|
1,221
|
||||||
Total paid
|
2,212
|
2,277
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
1,853
|
1,646
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
-
|
-
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
1,853
|
$
|
1,646
|
Three Months Ended
|
||||||||
2017
|
||||||||
Total incurred losses
|
$
|
32,367
|
$
|
28,740
|
||||
Cash surrender value and matured endowments
|
378
|
483
|
||||||
Benefit reserve changes
|
427
|
774
|
||||||
Total insurance benefits and losses incurred
|
$
|
33,172
|
$
|
29,997
|
Atlantic American
Statutory Trust I
|
Atlantic American
Statutory Trust II
|
|||||||
JUNIOR SUBORDINATED DEBENTURES (1) (2)
|
||||||||
Principal amount owed
|
$
|
18,042
|
$
|
23,196
|
||||
Balance March 31, 2018
|
$
|
18,042
|
$
|
23,196
|
||||
Less: Treasury debt (3)
|
-
|
(7,500
|
)
|
|||||
Net balance March 31, 2018
|
$
|
18,042
|
$
|
15,696
|
||||
Net balance December 31, 2017
|
$
|
18,042
|
$
|
15,696
|
||||
Coupon rate
|
LIBOR + 4.00%
|
LIBOR + 4.10%
|
||||||
Interest payable
|
Quarterly
|
Quarterly
|
||||||
Maturity date
|
||||||||
Redeemable by issuer
|
|
Yes
|
Yes
|
|||||
TRUST PREFERRED SECURITIES
|
||||||||
Issuance date
|
||||||||
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
|
(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.
|
(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.
|
Three Months Ended
|
||||||||||||
Loss
|
Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Loss Per Common Share:
|
||||||||||||
Net loss
|
$
|
(5,024
|
)
|
20,419
|
||||||||
Less preferred stock dividends
|
(99
|
)
|
-
|
|||||||||
Net loss applicable to common shareholders
|
$
|
(5,123
|
)
|
20,419
|
$
|
(.25
|
)
|
Three Months Ended
|
||||||||||||
Loss
|
Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Loss Per Common Share:
|
||||||||||||
Net loss
|
$
|
(221
|
)
|
20,432
|
||||||||
Less preferred stock dividends
|
(99
|
)
|
-
|
|||||||||
Net loss applicable to common shareholders
|
$
|
(320
|
)
|
20,432
|
$
|
(.02
|
)
|
Three Months Ended
|
||||||||
2017
|
||||||||
Federal income tax provision at statutory rate of 21% and 35% for 2018 and 2017, respectively
|
$
|
(1,334
|
)
|
$
|
(121
|
)
|
||
Dividends-received deduction
|
(10
|
)
|
(24
|
)
|
||||
Other permanent differences
|
17
|
19
|
||||||
Income tax benefit
|
$
|
(1,327
|
)
|
$
|
(126
|
)
|
Three Months Ended
|
||||||||
2017
|
||||||||
Current – Federal
|
$
|
36
|
$
|
-
|
||||
Deferred – Federal
|
(1,363
|
)
|
(126
|
)
|
||||
Total
|
$
|
(1,327
|
)
|
$
|
(126
|
)
|
Revenues
|
Three Months Ended
|
|||||||
2017
|
||||||||
American Southern
|
$
|
13,533
|
$
|
14,301
|
||||
Bankers Fidelity
|
30,113
|
29,537
|
||||||
Corporate and Other
|
(3,106
|
)
|
21
|
|||||
Total revenue
|
$
|
40,540
|
$
|
43,859
|
Income (Loss) Before Income Taxes
|
Three Months Ended
|
|||||||
2017
|
||||||||
American Southern
|
$
|
968
|
$
|
2,150
|
||||
Bankers Fidelity
|
(2,535
|
)
|
(835
|
)
|
||||
Corporate and Other
|
(4,784
|
)
|
(1,662
|
)
|
||||
Loss before income taxes
|
$
|
(6,351
|
)
|
$
|
(347
|
)
|
Unrealized Gains
on Available-for-
Sale Securities
|
||||
Balance, December 31, 2017
|
$
|
9,751
|
||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018
|
(9,825
|
)
|
||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018
|
2,100
|
|||
Total effect of adoption of updated accounting guidance at January 1, 2018
|
(7,725
|
)
|
||
Other comprehensive loss before reclassifications
|
(5,352
|
)
|
||
Amounts reclassified from accumulated other comprehensive loss
|
(292
|
)
|
||
Net current period other comprehensive loss
|
(5,644
|
)
|
||
Balance, March 31, 2018
|
$
|
(3,618
|
)
|
Three Months Ended
|
||||||||
2017
|
||||||||
(In thousands)
|
||||||||
Insurance premiums
|
$
|
42,202
|
$
|
40,782
|
||||
Investment income
|
2,359
|
2,159
|
||||||
Realized investment gains, net
|
370
|
883
|
||||||
Unrealized losses on equity securities, net
|
(4,419
|
)
|
-
|
|||||
Other income
|
28
|
35
|
||||||
Total revenue
|
40,540
|
43,859
|
||||||
Insurance benefits and losses incurred
|
33,172
|
29,997
|
||||||
Commissions and underwriting expenses
|
10,019
|
10,614
|
||||||
Other expense
|
3,238
|
3,186
|
||||||
Interest expense
|
462
|
409
|
||||||
Total benefits and expenses
|
46,891
|
44,206
|
||||||
Loss before income taxes
|
$
|
(6,351
|
)
|
$
|
(347
|
)
|
||
Net loss
|
$
|
(5,024
|
)
|
$
|
(221
|
)
|
Three Months Ended
March 31,
|
||||||||
Reconciliation of Non-GAAP Financial Measure
|
2018
|
2017
|
||||||
(In thousands)
|
||||||||
Net loss
|
$
|
(5,024
|
)
|
$
|
(221
|
)
|
||
Income tax benefit
|
(1,327
|
)
|
(126
|
)
|
||||
Realized investment gains, net
|
(370
|
)
|
(883
|
)
|
||||
Unrealized losses on equity securities, net
|
4,419
|
-
|
||||||
Operating loss
|
$
|
(2,302
|
)
|
$
|
(1,230
|
)
|
Three Months Ended
|
||||||||
2017
|
||||||||
(Dollars in thousands)
|
||||||||
Gross written premiums
|
$
|
6,841
|
$
|
7,297
|
||||
Ceded premiums
|
(1,203
|
)
|
(1,149
|
)
|
||||
Net written premiums
|
$
|
5,638
|
$
|
6,148
|
||||
Net earned premiums
|
$
|
12,707
|
$
|
13,091
|
||||
Net loss and loss adjustment expenses
|
9,177
|
8,284
|
||||||
Underwriting expenses
|
3,387
|
3,867
|
||||||
Underwriting income
|
$
|
143
|
$
|
940
|
||||
Loss ratio
|
72.2
|
%
|
63.3
|
%
|
||||
Expense ratio
|
26.7
|
29.5
|
||||||
Combined ratio
|
98.9
|
%
|
92.8
|
%
|
Three Months Ended
|
||||||||
2017
|
||||||||
(In thousands)
|
||||||||
Automobile liability
|
$
|
6,865
|
$
|
7,328
|
||||
Automobile physical damage
|
2,455
|
2,244
|
||||||
General liability
|
738
|
730
|
||||||
Surety
|
1,934
|
2,086
|
||||||
Other lines
|
715
|
703
|
||||||
Total
|
$
|
12,707
|
$
|
13,091
|
Three Months Ended
|
||||||||
2017
|
||||||||
(Dollars in thousands)
|
||||||||
Medicare supplement
|
$
|
25,356
|
$
|
23,851
|
||||
Other health products
|
1,846
|
1,464
|
||||||
Life insurance
|
2,293
|
2,376
|
||||||
Total earned premiums
|
29,495
|
27,691
|
||||||
Insurance benefits and losses
|
23,995
|
21,713
|
||||||
Underwriting expenses
|
8,652
|
8,658
|
||||||
Total expenses
|
32,647
|
30,371
|
||||||
Underwriting loss
|
$
|
(3,152
|
)
|
$
|
(2,680
|
)
|
||
Loss ratio
|
81.4
|
%
|
78.4
|
%
|
||||
Expense ratio
|
29.3
|
31.3
|
||||||
Combined ratio
|
110.7
|
%
|
109.7
|
%
|
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
|
||||||||||||
January 1 – January 31, 2018
|
13,962
|
$
|
3.50
|
13,962
|
530,480
|
|||||||||||
February 1 – February 28, 2018
|
4,331
|
3.48
|
4,331
|
526,149
|
||||||||||||
March 1 – March 31, 2018
|
4,412
|
3.38
|
4,412
|
521,737
|
||||||||||||
Total
|
22,705
|
$
|
3.47
|
22,705
|
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
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
ATLANTIC AMERICAN CORPORATION
|
||
(Registrant)
|
Date: |
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 | ||||
12/31/18 | 10-K, 11-K, 5 | |||
Filed on: | 5/11/18 | 8-K | ||
5/7/18 | ||||
For Period end: | 3/31/18 | |||
2/28/18 | ||||
1/31/18 | ||||
1/1/18 | ||||
12/31/17 | 10-K, 11-K | |||
12/22/17 | ||||
3/31/17 | 10-Q, DEF 14A | |||
12/31/16 | 10-K, 11-K, 5 | |||
10/31/16 | ||||
8/4/14 | ||||
5/15/03 | ||||
12/4/02 | ||||
List all Filings |