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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 5/13/19 Atlantic American Corp 10-Q 3/31/19 58:6.3M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 510K 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 42K 12: R2 Condensed Consolidated Balance Sheets (Unaudited) HTML 120K 13: R3 Condensed Consolidated Balance Sheets (Unaudited) HTML 55K (Parenthetical) 14: R4 Condensed Consolidated Statements of Operations HTML 76K (Unaudited) 15: R5 Condensed Consolidated Statements of Comprehensive HTML 52K Income (Loss) (Unaudited) 16: R6 Condensed Consolidated Statements of Shareholders' HTML 67K Equity (Unaudited) 17: R7 Condensed Consolidated Statements of Shareholders' HTML 20K Equity (Unaudited) (Parenthetical) 18: R8 Condensed Consolidated Statements of Cash Flows HTML 90K (Unaudited) 19: R9 Basis of Presentation HTML 25K 20: R10 Recently Issued Accounting Standards HTML 26K 21: R11 Investments HTML 215K 22: R12 Fair Values of Financial Instruments HTML 104K 23: R13 Liabilities for Unpaid Losses, Claims and Loss HTML 99K Adjustment Expenses 24: R14 Junior Subordinated Debentures HTML 48K 25: R15 Earnings (Loss) Per Common Share HTML 44K 26: R16 Income Taxes HTML 34K 27: R17 Leases HTML 36K 28: R18 Commitments and Contingencies HTML 21K 29: R19 Segment Information HTML 44K 30: R20 Recently Issued Accounting Standards (Policies) HTML 25K 31: R21 Investments (Tables) HTML 213K 32: R22 Fair Values of Financial Instruments (Tables) HTML 103K 33: R23 Liabilities for Unpaid Losses, Claims and Loss HTML 108K Adjustment Expenses (Tables) 34: R24 Junior Subordinated Debentures (Tables) HTML 46K 35: R25 Earnings (Loss) Per Common Share (Tables) HTML 44K 36: R26 Income Taxes (Tables) HTML 37K 37: R27 Leases (Tables) HTML 35K 38: R28 Segment Information (Tables) HTML 45K 39: R29 Basis of Presentation (Details) HTML 19K 40: R30 Recently Issued Accounting Standards (Details) HTML 36K 41: R31 Investments, Aggregated by Type and Industry HTML 91K (Details) 42: R32 Investments, Fixed Maturities by Contractual HTML 55K Maturities (Details) 43: R33 Investments, Securities with Continuous Unrealized HTML 47K Loss Position (Details) 44: R34 Investments, Summary of Realized Investment Gains HTML 32K (Losses) (Details) 45: R35 Investments, Unrealized Gains (Losses) Related to HTML 24K Equity Securities (Details) 46: R36 Investments, Variable Interest Entities (Details) HTML 32K 47: R37 Fair Values of Financial Instruments, Measured on HTML 41K a Recurring Basis (Details) 48: R38 Fair Values of Financial Instruments, Roll-forward HTML 25K of Financial Instruments Measured at Fair Value (Details) 49: R39 Fair Values of Financial Instruments, Estimated HTML 56K Fair Value and Level (Details) 50: R40 Liabilities for Unpaid Losses, Claims and Loss HTML 83K Adjustment Expenses (Details) 51: R41 Junior Subordinated Debentures (Details) HTML 76K 52: R42 Earnings (Loss) Per Common Share (Details) HTML 61K 53: R43 Income Taxes (Details) HTML 42K 54: R44 Leases (Details) HTML 62K 55: R45 Segment Information (Details) HTML 43K 57: XML IDEA XML File -- Filing Summary XML 101K 56: EXCEL IDEA Workbook of Financial Reports XLSX 55K 5: EX-101.INS XBRL Instance -- aame-20190331 XML 2.12M 7: EX-101.CAL XBRL Calculations -- aame-20190331_cal XML 212K 8: EX-101.DEF XBRL Definitions -- aame-20190331_def XML 461K 9: EX-101.LAB XBRL Labels -- aame-20190331_lab XML 1.41M 10: EX-101.PRE XBRL Presentations -- aame-20190331_pre XML 781K 6: EX-101.SCH XBRL Schema -- aame-20190331 XSD 118K 58: ZIP XBRL Zipped Folder -- 0001140361-19-008998-xbrl Zip 154K
Georgia
|
58-1027114
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
4370 Peachtree Road, N.E.,
|
||
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
||
Common Stock, par value $1.00 per share
|
AAME
|
NASDAQ Global Market
|
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
|
Unaudited
|
||||||||
Cash and cash equivalents
|
$
|
8,614
|
$
|
12,630
|
||||
Investments:
|
||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: $218,519 and $219,924)
|
217,149
|
210,386
|
||||||
Equity securities, at fair value (cost: $9,060 and $10,515)
|
25,792
|
20,758
|
||||||
Other invested assets (cost: $7,005 and $6,905)
|
7,493
|
7,424
|
||||||
Policy loans
|
2,035
|
2,085
|
||||||
Real estate
|
38
|
38
|
||||||
Investment in unconsolidated trusts
|
1,238
|
1,238
|
||||||
Total investments
|
253,745
|
241,929
|
||||||
Receivables:
|
||||||||
Reinsurance
|
28,452
|
26,110
|
||||||
Insurance premiums and other (net of allowance for doubtful accounts: $204 and $207)
|
12,137
|
15,223
|
||||||
Deferred income taxes, net
|
1,346
|
4,184
|
||||||
Deferred acquisition costs
|
37,359
|
37,094
|
||||||
Other assets
|
10,047
|
4,560
|
||||||
Intangibles
|
2,544
|
2,544
|
||||||
Total assets
|
$
|
354,244
|
$
|
344,274
|
Insurance reserves and policyholder funds:
|
||||||||
Future policy benefits
|
$
|
90,858
|
$
|
90,257
|
||||
Unearned premiums
|
17,259
|
24,206
|
||||||
Losses and claims
|
74,713
|
72,612
|
||||||
Other policy liabilities
|
1,451
|
1,973
|
||||||
Total insurance reserves and policyholder funds
|
184,281
|
189,048
|
||||||
Other liabilities
|
24,738
|
20,116
|
||||||
Junior subordinated debenture obligations, net
|
33,738
|
33,738
|
||||||
Total liabilities
|
242,757
|
242,902
|
||||||
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:
20,150,044 and 20,170,360
|
22,401
|
22,401
|
||||||
Additional paid-in capital
|
57,417
|
57,414
|
||||||
Retained earnings
|
40,868
|
37,208
|
||||||
Accumulated other comprehensive loss
|
(1,082
|
)
|
(7,535
|
)
|
||||
Unearned stock grant compensation
|
(128
|
)
|
(186
|
)
|
||||
Treasury stock, at cost: 2,250,850 and 2,230,534 shares
|
(8,044
|
)
|
(7,985
|
)
|
||||
Total shareholders’ equity
|
111,487
|
101,372
|
||||||
Total liabilities and shareholders’ equity
|
$
|
354,244
|
$
|
344,274
|
Three Months Ended
|
||||||||
2018
|
||||||||
Revenue:
|
||||||||
Insurance premiums, net
|
$
|
44,782
|
$
|
42,202
|
||||
Net investment income
|
2,334
|
2,359
|
||||||
Realized investment gains, net
|
1,385
|
370
|
||||||
Unrealized gains (losses) on equity securities, net
|
6,489
|
(4,419
|
)
|
|||||
Other income
|
28
|
28
|
||||||
Total revenue
|
55,018
|
40,540
|
||||||
Benefits and expenses:
|
||||||||
Insurance benefits and losses incurred
|
35,307
|
33,172
|
||||||
Commissions and underwriting expenses
|
11,015
|
10,019
|
||||||
Interest expense
|
546
|
462
|
||||||
Other expense
|
2,865
|
3,238
|
||||||
Total benefits and expenses
|
49,733
|
46,891
|
||||||
Income (loss) before income taxes
|
5,285
|
(6,351
|
)
|
|||||
Income tax expense (benefit)
|
1,123
|
(1,327
|
)
|
|||||
Net income (loss)
|
4,162
|
(5,024
|
)
|
|||||
Preferred stock dividends
|
(99
|
)
|
(99
|
)
|
||||
Net income (loss) applicable to common shareholders
|
$
|
4,063
|
$
|
(5,123
|
)
|
|||
Earnings (loss) per common share (basic)
|
$
|
0.20
|
$
|
(.25
|
)
|
|||
Earnings (loss) per common share (diluted)
|
$
|
0.19
|
$
|
(.25
|
)
|
Three Months Ended
|
||||||||
2018
|
||||||||
Net income (loss)
|
$
|
4,162
|
$
|
(5,024
|
)
|
|||
Other comprehensive income (loss):
|
||||||||
Available-for-sale fixed maturity securities:
|
||||||||
Gross unrealized holding gain (loss) arising in the period
|
8,440
|
(6,774
|
)
|
|||||
Related income tax effect
|
(1,772
|
)
|
1,422
|
|||||
Subtotal
|
6,668
|
(5,352
|
)
|
|||||
Less: reclassification adjustment for net realized gains included in net income (loss)
|
(272
|
)
|
(370
|
)
|
||||
Related income tax effect
|
57
|
78
|
||||||
Subtotal
|
(215
|
)
|
(292
|
)
|
||||
Total other comprehensive income (loss), net of tax
|
6,453
|
(5,644
|
)
|
|||||
Total comprehensive income (loss)
|
$
|
10,615
|
$
|
(10,668
|
)
|
Three Months Ended March 31, 2019
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings |
Accumulated
Other
Comprehensive
Loss
|
Unearned
Stock Grant
Compensation
|
Treasury
Stock
|
Total
|
||||||||||||||||||||||||
Balance, December 31, 2018
|
$
|
55
|
$
|
22,401
|
$
|
57,414
|
$
|
37,208
|
$
|
(7,535
|
)
|
$
|
(186
|
)
|
$
|
(7,985
|
)
|
$
|
101,372
|
|||||||||||||
Net income
|
-
|
-
|
-
|
4,162
|
-
|
-
|
-
|
4,162
|
||||||||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
-
|
-
|
-
|
6,453
|
-
|
-
|
6,453
|
||||||||||||||||||||||||
Dividends declared on common stock ($0.02 per share)
|
-
|
-
|
-
|
(403
|
)
|
-
|
-
|
-
|
(403
|
)
|
||||||||||||||||||||||
Dividends accrued on preferred stock
|
-
|
-
|
-
|
(99
|
)
|
-
|
-
|
-
|
(99
|
)
|
||||||||||||||||||||||
Amortization of unearned compensation
|
-
|
-
|
-
|
-
|
-
|
58
|
-
|
58
|
||||||||||||||||||||||||
Purchase of shares for treasury
|
-
|
-
|
-
|
-
|
-
|
-
|
(49
|
)
|
(49
|
)
|
||||||||||||||||||||||
Net shares acquired related to employee share-based compensation plans
|
-
|
-
|
-
|
-
|
-
|
-
|
(14
|
)
|
(14
|
)
|
||||||||||||||||||||||
Issuance of shares under stock plans
|
-
|
-
|
3
|
-
|
-
|
-
|
4
|
7
|
||||||||||||||||||||||||
Balance, March 31, 2019
|
$
|
55
|
$
|
22,401
|
$
|
57,417
|
$
|
40,868
|
$
|
(1,082
|
)
|
$
|
(128
|
)
|
$
|
(8,044
|
)
|
$
|
111,487
|
|||||||||||||
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||||||
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 ($0.02 per share)
|
-
|
-
|
-
|
(407
|
)
|
-
|
-
|
-
|
(407
|
)
|
||||||||||||||||||||||
Dividends accrued on preferred stock
|
-
|
-
|
-
|
(99
|
)
|
-
|
-
|
-
|
(99
|
)
|
||||||||||||||||||||||
Restricted stock grants, net of forfeitures
|
-
|
-
|
(68
|
)
|
-
|
-
|
115
|
(47
|
)
|
-
|
||||||||||||||||||||||
Amortization of unearned compensation
|
-
|
-
|
-
|
-
|
-
|
77
|
-
|
77
|
||||||||||||||||||||||||
Purchase of shares for treasury
|
-
|
-
|
-
|
-
|
-
|
-
|
(79
|
)
|
(79
|
)
|
||||||||||||||||||||||
Net shares acquired related to employee share-based compensation plans
|
-
|
-
|
-
|
-
|
-
|
-
|
(90
|
)
|
(90
|
)
|
||||||||||||||||||||||
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
|
||||||||
2018
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income (loss)
|
$
|
4,162
|
$
|
(5,024
|
)
|
|||
Adjustments to reconcile income (loss) to net cash used in operating activities:
|
||||||||
Acquisition costs deferred, net
|
(265
|
)
|
(469
|
)
|
||||
Realized investment gains, net
|
(1,385
|
)
|
(370
|
)
|
||||
Unrealized (gains) losses on equity securities, net
|
(6,489
|
)
|
4,419
|
|||||
Compensation expense related to share awards
|
58
|
77
|
||||||
Depreciation and amortization
|
193
|
273
|
||||||
Deferred income tax expense (benefit)
|
1,123
|
(1,363
|
)
|
|||||
Decrease in receivables, net
|
3,936
|
1,567
|
||||||
Decrease in insurance reserves and policyholder funds
|
(4,767
|
)
|
(631
|
)
|
||||
Increase (decrease) in other liabilities
|
2,100
|
(5,453
|
)
|
|||||
Other, net
|
(5,612
|
)
|
98
|
|||||
Net cash used in operating activities
|
(6,946
|
)
|
(6,876
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from investments sold
|
18,604
|
13,373
|
||||||
Proceeds from investments matured, called or redeemed
|
1,878
|
|
1,529
|
|||||
Investments purchased
|
(17,470
|
)
|
(23,955
|
)
|
||||
Additions to property and equipment
|
(26
|
)
|
(18
|
)
|
||||
Net cash provided by (used in) investing activities
|
2,986
|
(9,071
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from shares issued under stock plans
|
7
|
7
|
||||||
Treasury stock acquired — share repurchase authorization
|
(49
|
)
|
(79
|
)
|
||||
Treasury stock acquired — net employee share-based compensation
|
(14
|
)
|
(90
|
)
|
||||
Net cash used in financing activities
|
(56
|
)
|
(162
|
)
|
||||
Net decrease in cash and cash equivalents
|
(4,016
|
)
|
(16,109
|
)
|
||||
Cash and cash equivalents at beginning of period
|
12,630
|
24,547
|
||||||
Cash and cash equivalents at end of period
|
$
|
8,614
|
$
|
8,438
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid for interest
|
$
|
552
|
$
|
452
|
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
|
$
|
26,356
|
$
|
82
|
$
|
723
|
$
|
26,997
|
||||||||
Obligations of states and political subdivisions
|
8,491
|
415
|
1
|
8,077
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
19,399
|
1,312
|
124
|
18,211
|
||||||||||||
Financial services
|
52,583
|
1,164
|
1,136
|
52,555
|
||||||||||||
Other business – diversified
|
44,777
|
822
|
1,381
|
45,336
|
||||||||||||
Other consumer – diversified
|
65,351
|
479
|
2,279
|
67,151
|
||||||||||||
Total corporate securities
|
182,110
|
3,777
|
4,920
|
183,253
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
192
|
-
|
-
|
192
|
||||||||||||
Total redeemable preferred stocks
|
192
|
-
|
-
|
192
|
||||||||||||
Total fixed maturities
|
$
|
217,149
|
$
|
4,274
|
$
|
5,644
|
$
|
218,519
|
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
|
$
|
27,422
|
$
|
36
|
$
|
1,061
|
$
|
28,447
|
||||||||
Obligations of states and political subdivisions
|
8,364
|
347
|
72
|
8,089
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
19,642
|
873
|
431
|
19,200
|
||||||||||||
Financial services
|
49,477
|
747
|
2,942
|
51,672
|
||||||||||||
Other business – diversified
|
49,196
|
226
|
2,844
|
51,814
|
||||||||||||
Other consumer – diversified
|
56,093
|
84
|
4,501
|
60,510
|
||||||||||||
Total corporate securities
|
174,408
|
1,930
|
10,718
|
183,196
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
192
|
-
|
-
|
192
|
||||||||||||
Total redeemable preferred stocks
|
192
|
-
|
-
|
192
|
||||||||||||
Total fixed maturities
|
$
|
210,386
|
$
|
2,313
|
$
|
11,851
|
$
|
219,924
|
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost or
Amortized
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Financial services
|
$
|
4,755
|
$
|
375
|
$
|
-
|
$
|
4,380
|
||||||||
Other business – diversified
|
301
|
254
|
-
|
47
|
||||||||||||
Other consumer – diversified
|
20,736
|
16,103
|
-
|
4,633
|
||||||||||||
Total equity securities
|
$
|
25,792
|
$
|
16,732
|
$
|
-
|
$
|
9,060
|
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost or
Amortized
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Utilities and telecom
|
$
|
1,686
|
$
|
722
|
$
|
-
|
$
|
964
|
||||||||
Financial services
|
4,552
|
172
|
-
|
4,380
|
||||||||||||
Other business – diversified
|
306
|
259
|
-
|
47
|
||||||||||||
Other consumer – diversified
|
14,214
|
9,090
|
-
|
5,124
|
||||||||||||
Total equity securities
|
$
|
20,758
|
$
|
10,243
|
$
|
-
|
$
|
10,515
|
Carrying
Value
|
Amortized
Cost
|
Carrying
Value
|
Amortized
Cost
|
|||||||||||||
Due in one year or less
|
$
|
1,501
|
$
|
1,500
|
$
|
3,150
|
$
|
3,150
|
||||||||
Due after one year through five years
|
15,529
|
15,274
|
19,787
|
19,699
|
||||||||||||
Due after five years through ten years
|
122,693
|
123,685
|
127,617
|
133,863
|
||||||||||||
Due after ten years
|
61,355
|
61,389
|
43,823
|
46,338
|
||||||||||||
Asset backed securities
|
16,071
|
16,671
|
16,009
|
16,874
|
||||||||||||
Totals
|
$
|
217,149
|
$
|
218,519
|
$
|
210,386
|
$
|
219,924
|
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
|
$
|
-
|
$
|
-
|
$
|
20,998
|
$
|
723
|
$
|
20,998
|
$
|
723
|
||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
485
|
1
|
485
|
1
|
||||||||||||||||||
Corporate securities
|
9,142
|
135
|
94,244
|
4,785
|
103,386
|
4,920
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
9,142
|
$
|
135
|
$
|
115,727
|
$
|
5,509
|
$
|
124,869
|
$
|
5,644
|
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
|
$
|
-
|
$
|
-
|
$
|
24,786
|
$
|
1,061
|
$
|
24,786
|
$
|
1,061
|
||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
3,980
|
72
|
3,980
|
72
|
||||||||||||||||||
Corporate securities
|
49,633
|
1,592
|
97,012
|
9,126
|
146,645
|
10,718
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
49,633
|
$
|
1,592
|
$
|
125,778
|
$
|
10,259
|
$
|
175,411
|
$
|
11,851
|
2019
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested
Assets
|
Total
|
|||||||||||||
Gains
|
$
|
272
|
$
|
1,113
|
$
|
-
|
$
|
1,385
|
||||||||
Losses
|
-
|
-
|
-
|
-
|
||||||||||||
Realized investment gains (losses), net
|
$
|
272
|
$
|
1,113
|
$
|
-
|
$
|
1,385
|
2018
|
||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested
Assets
|
Total
|
|||||||||||||
Gains
|
$
|
370
|
$
|
-
|
$
|
-
|
$
|
370
|
||||||||
Losses
|
-
|
-
|
-
|
-
|
||||||||||||
Realized investment gains (losses), net
|
$
|
370
|
$
|
-
|
$
|
-
|
$
|
370
|
Three Months Ended
|
||||||||
2018
|
||||||||
Net gains (losses) recognized during the period on equity securities
|
$
|
7,602
|
$
|
(4,419
|
)
|
|||
Less: Net gains (losses) recognized during the period on equity securities sold during the period
|
1,113
|
-
|
||||||
Unrealized gains (losses) recognized during the reporting period on equity securities still held at
the reporting date
|
$
|
6,489
|
$
|
(4,419
|
)
|
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, U.S. Treasury securities 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. 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, 2019
and December 31, 2018, the value of the Company’s fixed maturities valued using Level 3 criteria was $1,115 and $1,066, respectively. 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
|
$
|
10,286
|
$
|
205,748
|
$
|
1,115
|
(1)
|
$
|
217,149
|
|||||||
Equity securities
|
21,240
|
4,552
|
(1)
|
-
|
25,792
|
|||||||||||
Cash equivalents
|
6,724
|
-
|
-
|
6,724
|
||||||||||||
Total
|
$
|
38,250
|
$
|
210,300
|
$
|
1,115
|
$
|
249,665
|
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
|
$
|
11,413
|
$
|
197,907
|
$
|
1,066
|
(1)
|
$
|
210,386
|
|||||||
Equity securities
|
16,398
|
4,360
|
(1)
|
-
|
20,758
|
|||||||||||
Cash equivalents
|
8,250
|
-
|
-
|
8,250
|
||||||||||||
Total
|
$
|
36,061
|
$
|
202,267
|
$
|
1,066
|
$
|
239,394
|
Fixed
Maturities
|
||||
Balance, December 31, 2018
|
$
|
1,066
|
||
Total unrealized gains included in other comprehensive loss
|
49
|
|||
Balance, March 31, 2019
|
$
|
1,115
|
Fixed
Maturities
|
||||
Balance, December 31, 2017
|
$
|
1,369
|
||
Total unrealized losses included in other comprehensive loss
|
(30
|
)
|
||
Balance, March 31, 2018
|
$
|
1,339
|
Level in Fair
Value
Hierarchy (1)
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
Level 1
|
$
|
8,614
|
$
|
8,614
|
$
|
12,630
|
$
|
12,630
|
|||||||||||
Fixed maturities
|
(1)
|
217,149
|
217,149
|
210,386
|
210,386
|
|||||||||||||||
Equity securities
|
(1)
|
25,792
|
25,792
|
20,758
|
20,758
|
|||||||||||||||
Other invested assets
|
Level 3
|
7,493
|
7,493
|
7,424
|
7,424
|
|||||||||||||||
Policy loans
|
Level 2
|
2,035
|
2,035
|
2,085
|
2,085
|
|||||||||||||||
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
|
Property and Casualty Insurance Products
|
Three Months Ended
|
|||||||
2018
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
49,354
|
$
|
47,997
|
||||
Less: Reinsurance recoverable on unpaid losses
|
(6,428
|
)
|
(7,220
|
)
|
||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
42,926
|
40,777
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
9,398
|
9,602
|
||||||
Prior accident year development (1)
|
(355
|
)
|
(425
|
)
|
||||
Total incurred
|
9,043
|
9,177
|
||||||
Paid related to:
|
||||||||
Current accident year
|
1,668
|
2,348
|
||||||
Prior accident years
|
7,310
|
5,976
|
||||||
Total paid
|
8,978
|
8,324
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
42,991
|
41,630
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
6,218
|
7,158
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
49,209
|
$
|
48,788
|
(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
|
|||||||
2018
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
21,257
|
$
|
15,859
|
||||
Less: Reinsurance recoverable on unpaid losses
|
(7,926
|
)
|
(4,748
|
)
|
||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
13,331
|
11,111
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
22,472
|
17,615
|
||||||
Prior accident year development
|
974
|
3,343
|
(2)
|
|||||
Total incurred
|
23,446
|
20,958
|
||||||
Paid related to:
|
||||||||
Current accident year
|
11,125
|
5,873
|
||||||
Prior accident years
|
11,213
|
13,252
|
||||||
Total paid
|
22,338
|
19,125
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
14,439
|
12,944
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
8,958
|
6,535
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
23,397
|
$
|
19,479
|
(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
|
|||||||
2018
|
||||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
2,001
|
$
|
1,833
|
||||
Less: Reinsurance recoverable on unpaid losses
|
-
|
-
|
||||||
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net
|
2,001
|
1,833
|
||||||
Incurred related to:
|
||||||||
Current accident year
|
2,494
|
2,516
|
||||||
Prior accident year development
|
(120
|
)
|
(284
|
)
|
||||
Total incurred
|
2,374
|
2,232
|
||||||
Paid related to:
|
||||||||
Current accident year
|
914
|
998
|
||||||
Prior accident years
|
1,354
|
1,214
|
||||||
Total paid
|
2,268
|
2,212
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net
|
2,107
|
1,853
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
-
|
-
|
||||||
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross
|
$
|
2,107
|
$
|
1,853
|
Three Months Ended
|
||||||||
2018
|
||||||||
Total incurred losses
|
$
|
34,863
|
$
|
32,367
|
||||
Cash surrender value and matured endowments
|
360
|
378
|
||||||
Benefit reserve changes
|
84
|
427
|
||||||
Total insurance benefits and losses incurred
|
$
|
35,307
|
$
|
33,172
|
Atlantic American
Statutory Trust I
|
Atlantic American
Statutory Trust II
|
|||||||
JUNIOR SUBORDINATED DEBENTURES (1) (2)
|
||||||||
Principal amount owed March 31, 2019
|
$
|
18,042
|
$
|
23,196
|
||||
Less: Treasury debt (3)
|
-
|
(7,500
|
)
|
|||||
Net balance March 31, 2019
|
$
|
18,042
|
$
|
15,696
|
||||
Net balance December 31, 2018
|
$
|
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 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.
|
Three Months Ended
|
||||||||||||
Income
|
Weighted Average Shares
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic Earnings Per Common Share:
|
||||||||||||
Net income
|
$
|
4,162
|
20,159
|
|||||||||
Less preferred stock dividends
|
(99
|
)
|
||||||||||
Net income applicable to common
shareholders
|
4,063
|
20,159
|
$
|
.20
|
||||||||
Diluted Earnings Per Common Share:
|
||||||||||||
Effect of Series D preferred stock
|
99
|
1,378
|
||||||||||
Net income applicable to common
shareholders
|
$
|
4,162
|
21,537
|
$
|
.19
|
Three Months Ended
|
||||||||||||
Loss
|
Weighted Average 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
|
||||||||
2018
|
||||||||
Federal income tax provision at statutory rate of 21%
|
$
|
1,110
|
$
|
(1,334
|
)
|
|||
Dividends-received deduction
|
(9
|
)
|
(10
|
)
|
||||
Other permanent differences
|
22
|
17
|
||||||
Income tax benefit
|
$
|
1,123
|
$
|
(1,327
|
)
|
Three Months Ended
|
||||||||
2018
|
||||||||
Current – Federal
|
$
|
-
|
$
|
36
|
||||
Deferred – Federal
|
1,123
|
(1,363
|
)
|
|||||
Total
|
$
|
1,123
|
$
|
(1,327
|
)
|
Three Months
Ended
|
||||
Other information on operating leases:
|
||||
Cash payments included in the measurement of lease liabilities reported in operating cash flows
|
$
|
233
|
||
Right-of-use assets included in other assets on balance sheet
|
5,938 | |||
Weighted average discount rate
|
6.8
|
%
|
||
Weighted average remaining lease term in years
|
7.9 years
|
Lease Liability
|
||||
Remainder of 2019
|
$
|
582
|
||
2020
|
978
|
|||
2021
|
1,015
|
|||
2022
|
1,031
|
|||
2023
|
1,048
|
|||
Thereafter
|
3,091
|
|||
Total undiscounted lease payments
|
7,745
|
|||
Less: present value adjustment
|
1,787
|
|||
Operating lease liability
|
$
|
5,958
|
Assets | ||||||||
American Southern
|
$
|
121,500
|
$
|
122,724
|
||||
Bankers Fidelity
|
204,531
|
195,663
|
||||||
Corporate and Other
|
28,213
|
25,887
|
||||||
Total assets
|
$
|
354,244
|
$
|
344,274
|
|
Three Months Ended
March 31,
|
|||||||
Revenues
|
2019
|
2018
|
||||||
American Southern
|
$
|
15,235
|
$
|
13,533
|
||||
Bankers Fidelity
|
34,376
|
30,113
|
||||||
Corporate and Other
|
5,407
|
(3,106
|
)
|
|||||
Total revenue
|
$
|
55,018
|
$
|
40,540
|
|
Three Months Ended
March 31,
|
|||||||
Income (Loss) Before Income Taxes
|
2019
|
2018
|
||||||
American Southern
|
$
|
1,982
|
$
|
968
|
||||
Bankers Fidelity
|
(496
|
)
|
(2,535
|
)
|
||||
Corporate and Other
|
3,799
|
(4,784
|
)
|
|||||
Income (loss) before income taxes
|
$
|
5,285
|
$
|
(6,351
|
)
|
Three Months Ended
|
||||||||
2018
|
||||||||
(In thousands)
|
||||||||
Insurance premiums
|
$
|
44,782
|
$
|
42,202
|
||||
Net investment income
|
2,334
|
2,359
|
||||||
Realized investment gains, net
|
1,385
|
370
|
||||||
Unrealized gains (losses) on equity securities, net
|
6,489
|
(4,419
|
)
|
|||||
Other income
|
28
|
28
|
||||||
Total revenue
|
55,018
|
40,540
|
||||||
Insurance benefits and losses incurred
|
35,307
|
33,172
|
||||||
Commissions and underwriting expenses
|
11,015
|
10,019
|
||||||
Interest expense
|
546
|
462
|
||||||
Other expense
|
2,865
|
3,238
|
||||||
Total benefits and expenses
|
49,733
|
46,891
|
||||||
Income (loss) before income taxes
|
$
|
5,285
|
$
|
(6,351
|
)
|
|||
Net income (loss)
|
$
|
4,162
|
$
|
(5,024
|
)
|
Three Months Ended
March 31,
|
||||||||
Reconciliation of Non-GAAP Financial Measure
|
2019
|
2018
|
||||||
(In thousands)
|
||||||||
Net income (loss)
|
$
|
4,162
|
$
|
(5,024
|
)
|
|||
Income tax benefit (expense)
|
1,123
|
(1,327
|
)
|
|||||
Realized investment gains, net
|
(1,385
|
)
|
(370
|
)
|
||||
Unrealized gains (losses) on equity securities, net
|
(6,489
|
)
|
4,419
|
|||||
Non-GAAP operating loss
|
$
|
(2,589
|
)
|
$
|
(2,302
|
)
|
Three Months Ended
|
||||||||
2018
|
||||||||
(Dollars in thousands)
|
||||||||
Gross written premiums
|
$
|
7,694
|
$
|
6,841
|
||||
Ceded premiums
|
(1,375
|
)
|
(1,203
|
)
|
||||
Net written premiums
|
$
|
6,319
|
$
|
5,638
|
||||
Net earned premiums
|
$
|
13,806
|
$
|
12,707
|
||||
Net loss and loss adjustment expenses
|
9,043
|
9,177
|
||||||
Underwriting expenses
|
4,210
|
3,387
|
||||||
Underwriting income
|
$
|
553
|
$
|
143
|
||||
Loss ratio
|
65.5
|
%
|
72.2
|
%
|
||||
Expense ratio
|
30.5
|
26.7
|
||||||
Combined ratio
|
96.0
|
%
|
98.9
|
%
|
Three Months Ended
|
||||||||
2018
|
||||||||
(In thousands)
|
||||||||
Automobile liability
|
$
|
7,024
|
$
|
6,865
|
||||
Automobile physical damage
|
3,602
|
2,455
|
||||||
General liability
|
784
|
738
|
||||||
Surety
|
1,687
|
1,934
|
||||||
Other lines
|
709
|
715
|
||||||
Total
|
$
|
13,806
|
$
|
12,707
|
Three Months Ended
|
||||||||
2018
|
||||||||
Medicare supplement
|
$
|
44,329
|
$
|
39,164
|
||||
Other health products
|
1,990
|
1,846
|
||||||
Life insurance
|
2,142
|
2,301
|
||||||
Gross earned premiums
|
48,461
|
43,311
|
||||||
Ceded premiums
|
(17,485
|
)
|
(13,816
|
)
|
||||
Net earned premiums
|
30,976
|
29,495
|
||||||
Insurance benefits and losses
|
26,264
|
23,995
|
||||||
Underwriting expenses
|
8,608
|
8,652
|
||||||
Total expenses
|
34,872
|
32,647
|
||||||
Underwriting loss
|
$
|
(3,896
|
)
|
$
|
(3,152
|
)
|
||
Loss ratio
|
84.8
|
%
|
81.4
|
%
|
||||
Expense ratio
|
27.8
|
29.3
|
||||||
Combined ratio
|
112.6
|
%
|
110.7
|
%
|
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, 2019
|
9,466
|
$
|
2.73
|
9,466
|
341,873
|
|||||||||||
February 1 – February 28, 2019
|
2,920
|
2.78
|
2,920
|
338,953
|
||||||||||||
March 1 – March 31, 2019
|
5,479
|
2.81
|
5,479
|
333,474
|
||||||||||||
Total
|
17,865
|
$
|
2.76
|
17,865
|
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: May 13, 2019
|
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 | ||||
12/31/19 | 10-K, 11-K | |||
Filed on: | 5/13/19 | 8-K | ||
5/2/19 | ||||
For Period end: | 3/31/19 | |||
2/28/19 | ||||
1/31/19 | ||||
1/1/19 | ||||
12/31/18 | 10-K, 11-K, 5 | |||
3/31/18 | 10-Q | |||
1/1/18 | ||||
12/31/17 | 10-K, 11-K | |||
10/31/16 | ||||
8/4/14 | ||||
5/15/03 | ||||
12/4/02 | ||||
List all Filings |