Gross unrealized holding gain (loss) arising in the period

$ 11,022

$ 4,436

Available-for-sale securities:

(11,965)

11,971

Related income tax effect

4,188

(4,190)

Less: reclassification adjustment for net realized gains included in net income (1)

(8,741)

^[1]

(1,434)

^[1]

Related income tax effect (2)

3,059

^[2]

502

^[2]

Net effect on other comprehensive income (loss)

(13,459)

6,849

Derivative financial instrument:

Fair value adjustment to derivative financial instrument

141

735

Related income tax effect

(49)

(257)

Net effect on other comprehensive income (loss)

478

Total other comprehensive income (loss), net of tax

(13,367)

7,327

Total comprehensive income (loss)

$ (2,345)

$ 11,763

[1]	Realized gains on available-for-sale securities recognized in realized investment gains, net on the accompanying consolidated statements of operations.
[2]	Income tax effect on reclassification adjustment for net realized gains included in income tax expense on the accompanying consolidated statements of operations.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2011	$ 70	$ 22,401	$ 57,136	$ 6,179	$ 12,244	$ 0	$ (1,753)	$ 96,277
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	0	4,436	0	0	0	4,436
Other comprehensive income (loss), net of tax	0	0	0	0	7,327	0	0	7,327
Dividends on common stock	0	0	0	(1,486)	0	0	0	(1,486)
Dividends on preferred stock	0	0	0	(508)	0	0	0	(508)
Purchase of shares for treasury	0	0	0	0	0	0	(607)	(607)
Issuance of shares under stock plans	0	0	44	0	0	0	253	297
Balance at Dec. 31, 2012	70	22,401	57,180	8,621	19,571	0	(2,107)	105,736
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	0	11,022	0	0	0	11,022
Other comprehensive income (loss), net of tax	0	0	0	0	(13,367)	0	0	(13,367)
Preferred stock redeemed (Note 10)	(5)	0	(495)	0	0	0	0	(500)
Dividends on common stock	0	0	0	(423)	0	0	0	(423)
Dividends on preferred stock	0	0	0	(482)	0	0	0	(482)
Restricted stock grants	0	0	393	0	0	(704)	311	0
Amortization of unearned compensation	0	0	0	0	0	219	0	219
Purchase of shares for treasury	0	0	0	0	0	0	(1,416)	(1,416)
Issuance of shares under stock plans	0	0	25	0	0	0	113	138
Balance at Dec. 31, 2013	$ 65	$ 22,401	$ 57,103	$ 18,738	$ 6,204	$ (485)	$ (3,099)	$ 100,927

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury shares purchased (in shares)	371,220	219,939
Shares issued under stock plans (in shares)	72,552	162,240

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income	$ 11,022	$ 4,436
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred acquisition costs	8,960	10,451
Acquisition costs deferred	(10,336)	(12,325)
Realized investment gains, net	(8,741)	(1,434)
Increase in insurance reserves and policyholder funds	7,815	7,364
Compensation expense related to share awards	219	0
Depreciation and amortization	600	469
Deferred income tax benefit	(329)	(97)
Decrease (increase) in receivables, net	1,448	(1,140)
Increase (decrease) in other liabilities	2,292	(1,376)
Other, net	70	(233)
Net cash provided by operating activities	13,020	6,115
Cash flows from investing activities:
Proceeds from investments sold	108,745	24,479
Proceeds from investments matured, called or redeemed	11,414	14,455
Investments purchased	(112,466)	(44,403)
Additions to property and equipment	(1,338)	(169)
Acquisition of Bankers Fidelity Assurance, net of $1,317 acquired	(2,540)	0
Net cash provided by (used in) investing activities	3,815	(5,638)
Cash flows from financing activities:
Redemption of Series D preferred stock	(500)	0
Payment of dividends on Series D Preferred Stock	(483)	(1,015)
Payment of dividends on common stock	(423)	(1,486)
Proceeds from shares issued under stock plans	138	297
Purchase of shares for treasury	(1,416)	(607)
Net cash used in financing activities	(2,684)	(2,811)
Net increase (decrease) in cash	14,151	(2,334)
Cash and cash equivalents at beginning of year	18,951	21,285
Cash and cash equivalents at end of year	33,102	18,951
Supplemental cash flow information:
Cash paid for interest	1,961	2,636
Cash paid for income taxes	$ 536	$ 405

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Cash flows from investing activities:
Acquisition of Bankers Fidelity Assurance, acquired	$ 1,317

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2013
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. At December 31, 2013, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (“BFAC”) (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. BFAC was acquired on December 18, 2013. The results of operations of BFAC are included from the date of acquisition. The Parent has issued a guarantee of all liabilities of Bankers Fidelity. Premium Revenue and Cost Recognition Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. The deferred policy acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). Intangibles Intangibles consist of goodwill and other indefinite-lived intangibles. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses acquired in the 2013 acquisition of BFAC (Note 17) and are not amortized. As of December 31, 2013 and 2012, intangibles were $2,544 and $2,128, respectively. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during the periods presented. Investments The Company’s investments in both fixed maturities, which include bonds and redeemable preferred stocks, and equity securities, which include common and non-redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The fair values for fixed maturities and equity securities are largely determined by either independent methods prescribed by the National Association of Insurance Commissioners (“NAIC”), which do not differ materially from publicly quoted market prices, when available, or independent broker quotations. The Company owns certain fixed maturities that do not have publicly quoted market values, but had an estimated fair value as determined by management of $1,991 at December 31, 2013. Such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market values. Policy loans and real estate are carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a common stock, preferred stock, other invested asset, or publicly traded bond declines below its cost or amortized cost, if applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold these securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of invested assets are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income. Income Taxes Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of the deferred tax asset will not be realized. Earnings Per Common Share Basic earnings per common share are based on the weighted average number of common shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common shares outstanding during the relevant period, plus options and share awards outstanding using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities which have original maturities of three months or less from date of purchase. Recently Issued Accounting Standards In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The main objective of ASU 2013-02 is to enhance disclosures for reclassification adjustments including changes in accumulated other comprehensive income (“AOCI”) balances by component and significant items reclassified out of AOCI. ASU 2013-02 does not change the requirements for reporting net income or other comprehensive income in financial statements. However, the ASU requires an entity to provide enhanced disclosures to present separately by component reclassifications out of AOCI. In addition, an entity is also required to provide a tabular disclosure of the effect of items reclassified out of AOCI on the respective line items of net income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety. For other reclassification items that are not required under GAAP to be reclassified directly to net income in their entirety, ASU 2013-02 only requires a cross-reference to other disclosures required under GAAP for those items. The Company adopted ASU 2013-02 effective January 1, 2013. Since ASU 2013-02 was a disclosure only update, its adoption did not have a material impact on the Company’s financial condition or results of operations. See Consolidated Statements of Comprehensive Income and Note 16 for expanded disclosures. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and commitments and contingencies, among others, and actual results could differ materially from management’s estimates.

Investments

12 Months Ended

Dec. 31, 2013

Investments [Abstract ]

Investments

Note 2. Investments

The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and amortized cost of the Company’s investments, aggregated by type and industry, as of December 31, 2013 and December 31, 2012.

Investments were comprised of the following:

	2013
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	17,240	$	576	$	210	$	16,874
Obligations of states and political subdivisions		7,611		402		17		7,226
Corporate securities:
Utilities and telecom		16,532		1,353		7		15,186
Financial services		50,531		1,736		320		49,115
Other business – diversified		70,326		870		2,906		72,362
Other consumer – diversified		36,712		391		1,745		38,066
Total corporate securities		174,101		4,350		4,978		174,729
Redeemable preferred stocks:
Financial services		2,159		4		41		2,196
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		2,351		4		41		2,388
Total fixed maturities		201,303		5,332		5,246		201,217
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,474		510		-		964
Financial services		5,761		514		560		5,807
Other business – diversified		178		131		-		47
Other consumer – diversified		14,477		8,863		-		5,614
Total equity securities		21,890		10,018		560		12,432
Other invested assets		2,123		-		-		2,123
Policy loans		2,369		-		-		2,369
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	228,961	$	15,350	$	5,806	$	219,417

	2012
			Gross		Gross
	Carrying		Unrealized		Unrealized		Amortized
	Value		Gains		Losses		Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	27,512	$	4,618	$	-	$	22,894
Obligations of states and political subdivisions		17,761		2,514		-		15,247
Corporate securities:
Utilities and telecom		17,921		3,128		-		14,793
Financial services		43,695		3,957		415		40,153
Other business – diversified		66,741		7,172		12		59,581
Other consumer – diversified		52,910		7,665		120		45,365
Total corporate securities		181,267		21,922		547		159,892
Redeemable preferred stocks:
Financial services		3,775		18		3		3,760
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		3,968		18		3		3,953
Total fixed maturities		230,508		29,072		550		201,986
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,298		334		-		964
Financial services		8,607		857		39		7,789
Other business – diversified		134		87		-		47
Other consumer – diversified		2,166		489		-		1,677
Total equity securities		12,205		1,767		39		10,477
Other invested assets		565		-		-		565
Policy loans		2,338		-		-		2,338
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	246,892	$	30,839	$	589	$	216,642

Bonds having an amortized cost of $10,101 and $7,170 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2013 and 2012, respectively, in accordance with statutory requirements.

The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of December 31, 2013 and 2012.

	2013							2012
	Carrying Value		Amortized Cost		Unrealized Gains (Losses)			Carrying Value		Amortized Cost		Unrealized Gains
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	17,240	$	16,874	$	366		$	27,512	$	22,894	$	4,618
Obligations of states and political subdivisions		7,611		7,226		385			17,761		15,247		2,514
Utilities and telecom		18,006		16,150		1,856			19,219		15,757		3,462
Financial services		58,451		57,118		1,333			56,077		51,702		4,375
Other business – diversified		70,504		72,409		(1,905	)		66,875		59,628		7,247
Other consumer – diversified		51,381		43,872		7,509			55,269		47,235		8,034
Other investments		5,768		5,768		-			4,179		4,179		-
Investments	$	228,961	$	219,417	$	9,544		$	246,892	$	216,642	$	30,250

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2013 and 2012.

	2013
	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	$	8,326	$	210	$	-	$	-	$	8,326	$	210
Obligations of states and political subdivisions		1,018		17						1,018		17
Corporate securities		92,049		3,714		6,938		1,264		98,987		4,978
Redeemable preferred stocks		704		41		-		-		704		41
Common and non-redeemable preferred stocks		3,724		560		-		-		3,724		560
Total temporarily impaired securities	$	105,821	$	4,542	$	6,938	$	1,264	$	112,759	$	5,806

	2012
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Corporate securities	$	8,806	$	147	$	1,600	$	400	$	10,406	$	547
Redeemable preferred stocks		1,216		3		-		-		1,216		3
Common and non-redeemable preferred stocks		3,494		39		-		-		3,494		39
Total temporarily impaired securities	$	13,516	$	189	$	1,600	$	400	$	15,116	$	589

The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold these securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

As of December 31, 2013, securities in an unrealized loss position primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer and financial services sectors. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2013.

The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.

Level 1

Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks.

Level 2

Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly 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 using Level 2 criteria, the Company utilizes various external pricing sources.

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 December 31, 2013 and 2012, the value of the Company’s fixed maturities valued using Level 3 criteria was $1,991 and $2,124, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of December 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	199,312	$	1,991	$	201,303
Equity securities		16,406		5,484		-		21,890
Cash equivalents		31,618		-		-		31,618
Total	$	48,024	$	204,796	$	1,991	$	254,811

As of December 31, 2012, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	228,384	$	2,124	$	230,508
Equity securities		3,805		8,400		-		12,205
Cash equivalents		15,326		-		-		15,326
Total	$	19,131	$	236,784	$	2,124	$	258,039
Liabilities:
Derivative financial instrument (Note 7)	$	-	$	-	$	141	$	141

The following is a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from January 1, 2012 to December 31, 2013.

	Fixed Maturities			Derivative (Liability)
Balance, January 1, 2012	$	2,035		$	(876	)
Total unrealized gains included in comprehensive income		89			735
Balance, December 31, 2012		2,124			(141	)
Total unrealized gains (losses) included in comprehensive income		(133	)		141
Balance, December 31, 2013	$	1,991		$	-

The Company’s fixed maturities valued using Level 3 inputs consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows (based on current cash flows) discounted at reasonable estimated rates of interest. There are no assumed prepayments and/or default probability assumptions as a majority of these instruments contain certain U.S. government agency strips to support repayment of the principal. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable. The Company’s derivative financial instrument was an interest rate collar which terminated on March 4, 2013, the stated maturity date, by its terms.

The amortized cost and carrying value of fixed maturities at December 31, 2013 and 2012 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	2013				2012
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	-	$	-	$	1,510	$	1,500
Due after one year through five years		11,709		11,097		5,799		5,213
Due after five years through ten years		108,358		107,846		40,416		37,013
Due after ten years		76,882		77,884		181,608		157,266
Varying maturities		4,354		4,390		1,175		994
Totals	$	201,303	$	201,217	$	230,508	$	201,986

Investment income was earned from the following sources:

	2013			2012
Fixed maturities	$	9,890		$	10,626
Equity securities		632			571
Other		287			307
Total investment income		10,809			11,504
Less investment expenses, included in other expenses		(474	)		(194	)
Net investment income	$	10,335		$	11,310

A summary of realized investment gains (losses) follows:

	2013
	Fixed Maturities			Equity Securities			Total
Gains	$	8,521		$	293		$	8,814
Losses		(45	)		(28	)		(73	)
Realized investment gains, net	$	8,476		$	265		$	8,741

	2012
	Fixed Maturities		Equity Securities		Total
Gains	$	1,434	$	-	$	1,434
Losses		-		-		-
Realized investment gains, net	$	1,434	$	-	$	1,434

Proceeds from the sales of investments were as follows:

	2013		2012
Fixed maturities	$	107,728	$	24,433
Equity securities		972		-
Other investments		45		46
Total proceeds	$	108,745	$	24,479

The Company’s bond portfolio included 90% investment grade securities, as defined by the NAIC, at December 31, 2013.

The entire disclosure for investments in certain debt and equity securities.

Insurance Reserves And Policyholder Funds [Abstract]

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 3, 19, 20, 21, 22, 137

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-Glossary Debt Security

-URI http://asc.fasb.org/extlink&oid=6509901

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-Name Accounting Standards Codification

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+ Details

Insurance Reserves and Policyholder Funds

12 Months Ended

Dec. 31, 2013

Insurance Reserves and Policyholder Funds

Note 3. Insurance Reserves and Policyholder Funds

The following table presents the Company’s reserves for life, accident, health and property and casualty losses as well as loss adjustment expenses.

					Amount of Insurance In Force, Net
	2013		2012		2013		2012
Future policy benefits
Life insurance policies:
Ordinary	$	52,915	$	51,256	$	237,694	$	244,634
Mass market		2,715		3,037		3,504		4,001
Individual annuities		135		142		-		-
		55,765		54,435	$	241,198	$	248,635
Accident and health insurance policies		14,099		12,497
		69,864		66,932
Unearned premiums		27,415		22,637
Losses, claims and loss adjustment expenses		63,018		62,873
Other policy liabilities		2,076		2,116
Total insurance reserves and policyholder funds	$	162,373	$	154,558

Annualized premiums for accident and health insurance policies were $91,359 and $83,038 at December 31, 2013 and 2012, respectively.

Future Policy Benefits

Liabilities for life insurance future policy benefits are based upon assumed future investment yields, mortality rates, and withdrawal rates after giving effect to possible risks of unexpected claim experience. The assumed mortality and withdrawal rates are based upon the Company’s experience. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 7% graded to 5.5% for 1977 through 1979 issues, (iii) 9% for 1980 through 1987 issues, (iv) 5% to 7% for 1988 through 2009 issues, and (v) 4% for 2010 through 2013 issues.

Loss and Claim Reserves

Loss and claim reserves represent estimates of projected ultimate losses and are based upon: (a) management’s estimate of ultimate liability and claims adjusters’ evaluations for unpaid claims reported prior to the close of the accounting period, (b) estimates of incurred but not reported (“IBNR”) claims based on past experience, and (c) estimates of loss adjustment expenses. The estimated liability is periodically reviewed by management and updated, with changes to the estimated liability recorded in the statement of operations in the year in which such changes are known.

Activity in the liability for unpaid loss and claim reserves is summarized as follows:

	2013			2012
Balance at January 1	$	62,873		$	57,975
Less: Reinsurance receivable on unpaid losses		(18,743	)		(15,673	)
Net balance at January 1		44,130			42,302

Incurred related to:
Current year		97,904			86,780
Prior years		(1,657	)		(1,841	)
Total incurred		96,247			84,939

Paid related to:
Current year		66,705			61,786
Prior years		24,968			21,325
Total paid		91,673			83,111
Net balance at December 31		48,704			44,130
Plus: Reinsurance receivable on unpaid losses		14,314			18,743
Balance at December 31	$	63,018		$	62,873

Prior years’ development was primarily the result of better than expected development on prior years IBNR reserves for certain lines of business primarily within American Southern.

Following is a reconciliation of total incurred claims to total insurance benefits and losses incurred:

	2013		2012
Total incurred claims	$	96,247	$	84,939
Cash surrender value and matured endowments		1,215		1,241
Benefit reserve changes		2,910		3,637
Total insurance benefits and losses incurred	$	100,372	$	89,817

Reinsurance

12 Months Ended

Dec. 31, 2013

Reinsurance [Abstract]

Reinsurance

Note 4. Reinsurance

In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99% of the Company’s reinsurance receivables were due from two reinsurers as of December 31, 2013. Reinsurance receivables of $1,209 were due from Swiss Reinsurance Corporation, rated “AA-” by Standard & Poor’s and “A+” (Superior) by A.M. Best and $13,021 were due from General Reinsurance Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance receivables, if appropriate.

The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:

	2013			2012
Direct premiums written	$	141,313		$	130,402
Assumed premiums written		16,702			3,003
Ceded premiums written		(7,607	)		(7,671	)
Net premiums written	$	150,408		$	125,734

Direct premiums earned	$	141,720		$	131,299
Assumed premiums earned		11,517			3,115
Ceded premiums earned		(7,607	)		(7,671	)
Net premiums earned	$	145,630		$	126,743

Provision for benefits and losses incurred	$	105,828		$	99,026
Reinsurance loss recoveries		(5,456	)		(9,209	)
Insurance benefits and losses incurred	$	100,372		$	89,817

Components of reinsurance receivables were as follows:

	2013		2012
Receivable on unpaid losses	$	14,314	$	18,743
Receivable on paid losses		-		25
Total reinsurance receivables	$	14,314	$	18,768

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Regulation S-X (SX)

-Number 210

-Section 03

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-Article 7

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-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher AICPA

-Name Statement of Position (SOP)

-Number 92-5

-Paragraph 19

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Taxes

Note 5. Income Taxes

Total income taxes were allocated as follows:

	2013			2012
Total tax expense on income	$	184		$	646

Tax expense (benefit) on components of shareholders’ equity:
Net unrealized gains (losses) on investment securities		(7,247	)		3,688
Fair value adjustment to derivative financial instrument		49			257
Total tax expense (benefit) on shareholders’ equity		(7,198	)		3,945
Total tax expense (benefit)	$	(7,014	)	$	4,591

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense is as follows:

	2013			2012
Federal income tax provision at statutory rate of 35%	$	3,922		$	1,779
Dividends received deduction		(149	)		(175	)
Small life insurance company deduction		(586	)		(485	)
Other		50			46
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets		(3,059	)		(440	)
Adjustment for prior years’ estimates to actual		6			(79	)
Income tax expense	$	184		$	646

The primary differences between the effective tax rate and the federal statutory income tax rate resulted from the dividends-received deduction (“DRD”), the small life insurance company deduction (“SLD”) and the change in deferred tax asset valuation allowance. The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3,000 and is ultimately phased out at $15,000. The change in deferred tax asset valuation allowance was due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reserved.

Deferred tax liabilities and assets at December 31, 2013 and 2012 were comprised of the following:

	2013			2012
Deferred tax liabilities:
Deferred acquisition costs	$	(3,766	)	$	(4,197	)
Deferred and uncollected premiums		(734	)		(743	)
Net unrealized investment gains		(3,341	)		(10,588	)
Other		(8	)		(8	)
Total deferred tax liabilities		(7,849	)		(15,536	)
Deferred tax assets:
Net operating loss carryforwards		844			1,575
Insurance reserves		5,109			4,516
Capital loss carryforwards		2,177			5,236
Impaired assets		1,406			1,406
Alternative minimum tax credit		309			306
Bad debts and other		576			601
Total deferred tax assets		10,421			13,640
Asset valuation allowance		(2,209	)		(5,268	)
Net deferred tax asset (liability)	$	363		$	(7,164	)

The components of income tax expense were:

	2013			2012
Current - Federal	$	513		$	743
Deferred - Federal		2,730			343
Change in deferred tax asset valuation allowance		(3,059	)		(440	)
Total	$	184		$	646

At December 31, 2013, the Company had regular federal net operating loss carryforwards (“NOLs”) of approximately $2,411 expiring generally between 2028 and 2032. Currently, the Company believes that deferred income tax benefits relating to the NOLs will be realized. However, expected realization of the NOLs is assessed periodically based on the Company’s then current and anticipated results of operations, and amounts could increase or decrease if estimates of future taxable income change.

As of December 31, 2013 and 2012, a valuation allowance of $2,209 and $5,268, respectively, was established against deferred income tax benefits relating primarily to capital loss carryforwards that may not be realized. The Company does not currently anticipate having sufficient future capital gains to offset certain of these capital losses during the applicable carryforward period. However, the Company continues to periodically assess the potential realization of these and all other deferred tax benefits. During 2013, the Company’s valuation allowance decreased by $3,059. The decrease was primarily due to the unanticipated utilization of certain capital loss carryforward benefits that had been previously reduced to zero through an existing valuation allowance reserve.

The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Junior Subordinated Debentures [Abstract]

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-Subparagraph (SX 210.4-08.(h))

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

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-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

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+ Details

Junior Subordinated Debentures

12 Months Ended

Dec. 31, 2013

Junior Subordinated Debentures

Note 6. Junior Subordinated Debentures

The Company has two unconsolidated Connecticut statutory business trusts, which exist for the exclusive purposes of: (i) issuing trust preferred securities (“Trust Preferred Securities”) representing undivided beneficial interests in the assets of the trusts; (ii) investing the gross proceeds of the Trust Preferred Securities in junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) of Atlantic American; and (iii) engaging in only those activities necessary or incidental thereto.

The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2013 and 2012, was as follows:

	Atlantic American Statutory Trust I			Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed	$	18,042		$	23,196
Balance December 31, 2013		18,042			23,196
Balance December 31, 2012		18,042			23,196
Coupon rate	LIBOR + 4.00%			LIBOR + 4.10%
Interest payable	Quarterly			Quarterly
Maturity date	December 4, 2032			May 15, 2033
Redeemable by issuer	Yes			Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002			May 15, 2003
Securities issued		17,500			22,500
Liquidation preference per security	$	1		$	1
Liquidation value		17,500			22,500
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Distribution payable	Quarterly			Quarterly
Distribution guaranteed by ⁽³⁾	Atlantic American Corporation			Atlantic American Corporation

⁽¹⁾

For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.

⁽²⁾

The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

⁽³⁾

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.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Derivative Financial Instrument	12 Months Ended
Derivative Financial Instrument	Dec. 31, 2013
Derivative Financial Instrument [Abstract]
Derivative Financial Instrument	Note 7. Derivative Financial Instrument The Company had a zero cost interest rate collar with Wells Fargo Bank, National Association, which terminated on March 4, 2013, the stated maturity date, by its terms.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Commitments and Contingencies [Abstract]

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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Note 8. Commitments and Contingencies

Litigation

From time to time, the Company is, and expects to continue to be, involved in various claims and lawsuits incidental to and in the ordinary course of its business. In the opinion of management, any such known claims are not expected to have a material effect on the financial condition or results of operations of the Company.

Operating Lease Commitments

The Company’s rental expense, including common area charges, for operating leases was $1,215 and $1,204 in 2013 and 2012, respectively. The Company’s future minimum base lease obligations under non-cancelable operating leases are as follows:

Year Ending December 31,
2014	$	886
2015		425
2016		435
2017		446
2018		457
Thereafter		193
Total	$	2,842

The entire disclosure for commitments and contingencies.

Earnings Per Common Share [Abstract]

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+ Details

Benefit Plans

12 Months Ended

Dec. 31, 2013

Benefit Plans [Abstract]

Benefit Plans

Note 9. Benefit Plans

Stock Incentive Plans

On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. A total of 200,000 restricted shares, with an estimated fair value of $704 based on the common stock price at date of grant, were issued to officers and directors under the 2012 Plan in 2013. No awards were made in 2012.

A summary of the status of the Company’s stock options at December 31, 2013 and 2012 is as follows:

	2013					2012
Options	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding, beginning of year		77,000		$	1.59		231,000		$	1.68
Options exercised		(62,500	)		1.59		(150,000	)		1.73
Options canceled or expired		(14,500	)		1.59		(4,000	)		1.59
Options outstanding, end of year		-			-		77,000			1.59
Options exercisable		-			-		77,000			1.59
Options available for future grant		1,800,000					2,000,000

401(k) Plan

The Company initiated an employees’ savings plan (the “Plan”) qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan covers substantially all of the Company’s employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company’s total matching contribution for 2013 and 2012 was $173 and $153, respectively, and consisted of a contribution equal to 50% of up to the first 4% of each participant’s contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2013 and 2012 of $369 and $302, respectively. The employer match and safe harbor contribution were made in cash.

Agent Stock Purchase Plan

The Company initiated a nonqualified stock purchase plan (the “Agent Stock Purchase Plan”) in May 2012. The purpose of the Agent Stock Purchase Plan is to promote and advance the interests of the Company and its stockholders by providing independent agents who qualify as participants with an opportunity to purchase the common stock of the Company. Under the Agent Stock Purchase Plan, payment for shares of common stock of the Company is made by either deduction from an agent’s commission payment or a direct cash payment. Stock purchases are made at the end of each calendar quarter at the then current market value.

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2013
Preferred Stock [Abstract]
Preferred Stock	Note 10. Preferred Stock The Company had 65,000 and 70,000 shares of Series D preferred stock (“Series D Preferred Stock”) outstanding at December 31, 2013 and 2012, respectively. All of the shares of Series D Preferred Stock are held by an affiliate of the Company’s controlling shareholder. The outstanding shares of Series D Preferred Stock have a stated value of $100 per share; accrue annual dividends at a rate of $7.25 per share (payable in cash or shares of the Company’s common stock at the option of the board of directors of the Company) and are cumulative. In certain circumstances, the shares of the Series D Preferred Stock may be convertible into an aggregate of approximately 1,629,000 shares of the Company’s common stock, subject to certain adjustments and provided that such adjustments do not result in the Company issuing more than approximately 2,703,000 shares of common stock without obtaining prior shareholder approval; and are redeemable solely at the Company’s option. The Series D Preferred Stock is not currently convertible. In 2013, the Company redeemed 5,000 shares of the Series D Preferred Stock at the stated value of $100 per share, for an aggregate payment of $500. As of December 31, 2013 and 2012, the Company had accrued, but unpaid, dividends, on the Series D Preferred Stock of $21 and $23, respectively. During 2013, the Company paid $483 in Series D Preferred Stock dividends whereas in 2012, the Company paid $1,015 which included a $508 dividend attributable to 2011.

Earnings Per Common Share

12 Months Ended

Dec. 31, 2013

Earnings Per Common Share

Note 11. Earnings Per Common Share

A reconciliation of the numerator and denominator of the earnings per common share calculations is as follows:

	For the Year Ended December 31, 2013
	Income			Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share
Net income before preferred stock dividends	$	11,022			21,236
Less preferred stock dividends		(482	)		-
Net income applicable to common shareholders		10,540			21,236	$	.50
Diluted Earnings Per Common Share
Effect of dilutive stock options		-			10
Effect of Series D Preferred Stock		482			1,629
Net income applicable to common shareholders	$	11,022			22,875	$	.48

	For the Year Ended December 31, 2012
	Income			Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share
Net income before preferred stock dividends	$	4,436			21,222
Less preferred stock dividends		(508	)		-
Net income applicable to common shareholders		3,928			21,222	$	.19
Diluted Earnings Per Common Share
Effect of dilutive stock options		-			67
Net income applicable to common shareholders	$	3,928			21,289	$	.18

The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2012 since its impact would have been antidilutive.

The entire disclosure for earnings per share.

+ References+ Details

Statutory Reporting

12 Months Ended

Dec. 31, 2013

Statutory Reporting [Abstract]

Statutory Reporting

Note 12. Statutory Reporting

The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies in some respects from statutory accounting practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) certain assets that are non-admitted assets are eliminated from the balance sheet; (ii) acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iii) the provision that is made for deferred income taxes is different than under GAAP; (iv) the timing of establishing certain reserves is different than under GAAP; and (v) certain valuation allowances attributable to certain investments are different.

The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:

	2013		2012
Life and Health, net income	$	3,013	$	2,271
Property and Casualty, net income		6,224		3,104
Statutory net income	$	9,237	$	5,375

Life and Health, surplus	$	34,530	$	33,059
Property and Casualty, surplus		39,092		36,947
Statutory surplus	$	73,622	$	70,006

Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $6,646 and $7,350 in 2013 and 2012, respectively, from its subsidiaries. In 2014, dividend payments to the Parent by the insurance subsidiaries in excess of $7,112 would require prior approval.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2013
Related Party Transactions [Abstract]
Related Party Transactions	Note 13. Related Party Transactions In the normal course of business the Company has engaged in transactions with entities affiliated with the controlling shareholder of the Company. These transactions include the leasing of office space as well as certain investing and financing activities. At December 31, 2013, two members of the Company’s board of directors were considered affiliates of the majority shareholder including our chairman, president and chief executive officer. The Company leases approximately 49,586 square feet of office and covered garage space from one such controlled entity. During the years ended December 31, 2013 and 2012, the Company paid $864 and $853, respectively, under this lease. Certain financing for the Company has also been provided by this entity in the form of an investment in the Series D Preferred Stock (See Note 10). Certain members of the Company’s management and board of directors are shareholders and on the board of directors of Gray Television, Inc. (“Gray”). As of December 31, 2013 the Company owned 880,272 shares of Gray Class A common stock and 106,000 shares of Gray common stock. As of December 31, 2012 the Company owned 388,060 shares of Gray Class A common stock and 106,000 shares of Gray common stock. The aggregate carrying value of these investments in Gray at December 31, 2013 and 2012 was $12,942 and $908, respectively.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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-Name Statement of Financial Accounting Standard (FAS)

-Number 57

-Paragraph 1-4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information [Abstract]

Segment Information

Note 14. Segment Information

The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than that in the corporate and other segment is from external sources.

	2013
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated

Insurance premiums	$	45,851		$	99,779		$	-		$	-		$	145,630
Insurance benefits and losses incurred		30,197			70,175			-			-			100,372
Expenses deferred		(7,106	)		(3,230	)		-			-			(10,336	)
Amortization and depreciation expense		7,440			2,120			-			-			9,560
Other expenses		15,777			31,742			15,076			(8,028	)		54,567
Total expenses		46,308			100,807			15,076			(8,028	)		154,163
Underwriting loss		(457	)		(1,028	)
Investment income		4,308			5,920			2,338			(1,757	)		10,809
Other income		12			40			6,408			(6,271	)		189
Operating income (loss)		3,863			4,932			(6,330	)		-			2,465
Net realized gains		3,767			4,330			644			-			8,741
Income (loss) before income taxes	$	7,630		$	9,262		$	(5,686	)	$	-		$	11,206
Total revenues	$	53,938		$	110,069		$	9,390		$	(8,028	)	$	165,369
Intangibles	$	1,350		$	1,194		$	-		$	-		$	2,544
Total assets	$	126,861		$	156,484		$	141,304		$	(105,268	)	$	319,381

	2012
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated

Insurance premiums	$	37,471		$	89,272		$	-		$	-		$	126,743
Insurance benefits and losses incurred		27,337			62,480			-			-			89,817
Expenses deferred		(8,515	)		(3,810	)		-			-			(12,325	)
Amortization and depreciation expense		9,009			1,911			-			-			10,920
Other expenses		11,758			27,674			14,340			(7,438	)		46,334
Total expenses		39,589			88,255			14,340			(7,438	)		134,746
Underwriting income (loss)		(2,118	)		1,017
Investment income		4,560			6,195			2,582			(1,833	)		11,504
Other income		-			48			5,704			(5,605	)		147
Operating income (loss)		2,442			7,260			(6,054	)		-			3,648
Net realized gains		383			1,051			-			-			1,434
Income (loss) before income taxes	$	2,825		$	8,311		$	(6,054	)	$	-		$	5,082
Total revenues	$	42,414		$	96,566		$	8,286		$	(7,438	)	$	139,828
Intangibles	$	1,350		$	778		$	-		$	-		$	2,128
Total assets	$	130,092		$	161,078		$	153,912		$	(124,905	)	$	320,177

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Disclosures About Fair Value of Financial Instruments [Abstract]

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-Number 131

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+ Details

Disclosures About Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2013

Disclosures About Fair Value of Financial Instruments

Note 15. Disclosures About Fair Value of Financial Instruments

The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

		2013				2012
	Level in Fair Value Hierarchy ⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	33,102	$	33,102	$	18,951	$	18,951
Fixed maturities	⁽¹⁾		201,303		201,303		230,508		230,508
Equity securities	⁽¹⁾		21,890		21,890		12,205		12,205
Other invested assets	Level 3		2,123		2,123		565		565
Policy loans	Level 2		2,369		2,369		2,338		2,338
Real estate	Level 2		38		38		38		38
Investments in unconsolidated trusts	Level 2		1,238		1,238		1,238		1,238

Liabilities:
Junior Subordinated Debentures	Level 2		41,238		41,238		41,238		41,238
Derivative financial instrument	Level 3		-		-		141		141

⁽¹⁾

See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

The fair value estimates as of December 31, 2013 and 2012 were based on pertinent information available to management as of the respective dates. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, current estimates of fair value may differ significantly from amounts that might ultimately be realized in a market exchange on any subsequent date.

The following describes the methods and assumptions used by the Company in estimating fair values:

Cash and Cash Equivalents

The carrying amount approximates fair value due to the short-term nature of the instruments.

Fixed Maturities and Common and Non-Redeemable Preferred Stocks

The carrying amount is determined in accordance with methods prescribed by the NAIC, which do not differ materially from publicly quoted market prices. Certain fixed maturities do not have publicly quoted values and consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows discounted at a reasonably estimated rate of interest. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable.

Non-publicly Traded Invested Assets

The fair value of investments in certain limited partnerships which are included in other invested assets on the consolidated balance sheet were determined by officers of those limited partnerships.

Junior Subordinated Debentures

The fair value is estimated based on the quoted market prices for similar issues and the current rates offered for debt having similar returns and remaining maturities.

Derivative Financial Instrument

As the Company’s only derivative financial instrument was an interest rate collar, changes in valuation were correlated with changes in interest rates and contract maturity date and, accordingly, values were estimated using projected cash flows at current interest rates discounted at a reasonably estimated rate of interest. Fair value quotations were also obtained and considered, as applicable, from the contractual counterparty.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Accumulated Other Comprehensive Income [Abstract]

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+ Details

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income

Note 16. Accumulated Other Comprehensive Income

The following table sets forth the balance of each component of accumulated other comprehensive income as of December 31, 2013 and 2012, and the changes in the balance of each component thereof during 2013.

	Unrealized Gains on Available- for-Sale Securities			Derivative Financial Instrument			Total
Balance, December 31, 2012	$	19,663		$	(92	)	$	19,571
Other comprehensive income (loss) before reclassifications		(7,777	)		92			(7,685	)
Amounts reclassified from accumulated other comprehensive income		(5,682	)		-			(5,682	)
Net current-period other comprehensive income (loss)		(13,459	)		92			(13,367	)
Balance, December 31, 2013	$	6,204		$	-		$	6,204

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Acquisitions

12 Months Ended

Dec. 31, 2013

Acquisitions [Abstract]

Acquisitions

Note 17. Acquisitions

On December 18, 2013, the Company acquired 100% of the outstanding stock of Direct Life Insurance Company (“DLIC”) for $3,857 and changed the name of the company to Bankers Fidelity Assurance Company. The acquisition will allow Bankers Fidelity to offer additional similar products to those it already writes permitting greater diversification of product and pricing as well as opportunity for future expansion in other states. The purchase was not significant to the financial position or results of operations of the Company in 2013 and DLIC had no significant recent operations prior to acquisition. In connection with the acquisition the following assets and liabilities were acquired:

	2013
Cash and cash equivalents	$	1,317
Investments		2,123
Receivables		7
Intangibles		416
Total assets	$	3,863

Accounts payable and accrued expenses	$	6
Total liabilities	$	6

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

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Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2013

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

BALANCE SHEETS

ASSETS

	December 31,
	2013		2012
	(In thousands)

Cash and cash equivalents	$	13,936	$	13,306
Investments		18,043		14,122
Investment in subsidiaries		105,268		124,904
Investments in unconsolidated trusts		1,238		1,238
Income taxes receivable from subsidiaries		4,530		1,989
Other assets		2,676		559
Total assets	$	145,691	$	156,118

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deferred tax liability, net	$	297	$	7,824
Other payables		3,229		1,320
Junior subordinated debentures		41,238		41,238

Total liabilities		44,764		50,382

Shareholders’ equity		100,927		105,736
Total liabilities and shareholders’ equity	$	145,691	$	156,118

See accompanying report of independent registered public accounting firm.

Schedule II

Page 2 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2013			2012
	(In thousands)
REVENUE
Fee income from subsidiaries	$	6,271		$	5,605
Distributed earnings from subsidiaries		6,646			7,350
Other		1,330			844
Total revenue		14,247			13,799

GENERAL AND ADMINISTRATIVE EXPENSES		11,106			9,659

INTEREST EXPENSE		1,898			2,632
		1,243			1,508
INCOME TAX BENEFIT⁽¹⁾		(4,504	)		(1,766	)
		5,747			3,274
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET		5,275			1,162
NET INCOME	$	11,022		$	4,436

⁽¹⁾

Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company’s income tax benefit results from the utilization of the Parent’s separate return loss to reduce the consolidated taxable income of the Company.

See accompanying report of independent registered public accounting firm.

Schedule II

Page 3 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2013			2012
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	11,022		$	4,436
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment gains, net		(644	)		-
Depreciation and amortization		117			75
Compensation expense related to share awards		219			-
Equity in undistributed earnings of consolidated subsidiaries		(5,275	)		(1,162	)
(Increase) decrease in intercompany taxes		(2,541	)		463
Deferred income tax benefit		(329	)		(97	)
Increase (decrease) in other liabilities		846			(746	)
Other, net		161			(251	)
Net cash provided by operating activities		3,576			2,718

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold, called or matured		5,568			-
Investments purchased		(4,438	)		-
Capital contribution to subsidiaries		(200	)		(200	)
Additions to property and equipment		(1,192	)		(166	)
Net cash used in investing activities		(262	)		(366	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Series D preferred stock		(500	)		-
Payment of dividends on Series D preferred stock		(483	)		(1,015	)
Payment of dividends on common stock		(423	)		(1,486	)
Proceeds from shares issued under stock plans		138			297
Purchase of shares for treasury		(1,416	)		(607	)
Net cash used in financing activities		(2,684	)		(2,811	)

Net increase (decrease) in cash		630			(459	)
Cash and cash equivalents at beginning of year		13,306			13,765
Cash and cash equivalents at end of year	$	13,936		$	13,306

Supplemental disclosure:
Cash paid for interest	$	1,961		$	2,636
Cash paid for income taxes	$	536		$	405
Intercompany tax settlement from subsidiaries	$	2,574		$	2,132

See accompanying report of independent registered public accounting firm.

Schedule III SUPPLEMENTARY INSURANCE INFORMATION [Abstract]

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

Schedule III SUPPLEMENTARY INSURANCE INFORMATION

12 Months Ended

Dec. 31, 2013

Schedule III SUPPLEMENTARY INSURANCE INFORMATION

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

Segment	Deferred Acquisition Costs		Future Policy Benefits, Losses, Claims and Loss Reserves			Unearned Premiums		Other Policy Claims and Benefits Payable
	(In thousands)
December 31, 2013:
Bankers Fidelity	$	24,275	$	81,682		$	4,419	$	2,076
American Southern		3,234		51,200			22,996		-
	$	27,509	$	132,882	⁽¹⁾	$	27,415	$	2,076

December 31, 2012:
Bankers Fidelity	$	22,864	$	77,041		$	4,564	$	2,116
American Southern		3,269		52,764			18,073		-
	$	26,133	$	129,805	⁽²⁾	$	22,637	$	2,116

⁽¹⁾	Includes future policy benefits of $69,864 and losses and claims of $63,018.

⁽²⁾	Includes future policy benefits of $66,932 and losses and claims of $62,873.

See accompanying report of independent registered public accounting firm.

Schedule III

Page 2 of 2

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

Segment	Premium Revenue		Net Investment Income		Benefits, Claims, Losses and Settlement Expenses		Amortization of Deferred Acquisition Costs		Other Operating Expenses		Casualty Premiums Written
	(In thousands)
December 31, 2013:
Bankers Fidelity	$	99,779	$	5,466	$	70,175	$	1,820	$	28,812	$	-
American Southern		45,851		4,288		30,197		7,140		8,971		50,774
Other		-		581		-		-		7,048		-
	$	145,630	$	10,335	$	100,372	$	8,960	$	44,831	$	50,774

December 31, 2012:
Bankers Fidelity	$	89,272	$	6,032	$	62,480	$	1,677	$	24,098	$	-
American Southern		37,471		4,529		27,337		8,774		3,478		36,182
Other		-		749		-		-		6,902		-
	$	126,743	$	11,310	$	89,817	$	10,451	$	34,478	$	36,182

See accompanying report of independent registered public accounting firm.

The entire disclosure for required supplementary insurance information giving segment detail in support of various balance sheet and income statement captions. The balance sheet information generally is presented as of the date of each audited balance sheet filed, and the income statement information generally is presented for each period for which an audited income statement is required to be filed. Supplementary insurance information table includes segment name; deferred policy acquisition costs; future policy benefits, losses, claims and loss expenses; unearned premiums; other policy claims and benefits payable; premium revenue; net investment income; benefits, claims, losses and settlement expenses; amortization of deferred policy acquisition costs; other operating expenses; and premiums written.

+ References+ Details

Schedule IV REINSURANCE

12 Months Ended

Dec. 31, 2013

Schedule IV REINSURANCE [Abstract]

Schedule IV REINSURANCE

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

REINSURANCE

	Direct Amount		Ceded To Other Companies			Assumed From Other Companies		Net Amounts		Percentage of Amount Assumed To Net
	(Dollars in thousands)
Year ended December 31, 2013:
Life insurance in force	$	259,723	$	(18,525	)	$	-	$	241,198

Premiums --
Bankers Fidelity	$	99,745	$	(54	)	$	88	$	99,779		0.1	%
American Southern		41,975		(7,553	)		11,429		45,851		24.9	%
Total premiums	$	141,720	$	(7,607	)	$	11,517	$	145,630		7.9	%

Year ended December 31, 2012:
Life insurance in force	$	264,435	$	(15,800	)	$	-	$	248,635

Premiums --
Bankers Fidelity	$	89,231	$	(68	)	$	109	$	89,272		0.1	%
American Southern		42,068		(7,603	)		3,006		37,471		8.0	%
Total premiums	$	131,299	$	(7,671	)	$	3,115	$	126,743		2.5	%

See accompanying report of independent registered public accounting firm.

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract]

The entire disclosure for the supplemental schedule of reinsurance information required to be filed for each period for which an audited income statement is presented. Reinsurance schedule includes the type of insurance, gross amount of premiums, premiums ceded to other companies, premiums assumed from other companies, net amount of premium revenue, and the percentage of the premiums assumed to net premium revenue.

+ References+ Details

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS

12 Months Ended

Dec. 31, 2013

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION CONCERNING

PROPERTY-CASUALTY INSURANCE OPERATIONS

	Deferred Policy								Net		Claims and Claim Adjustment Expenses Incurred Related To					Amortization of Deferred		Paid Claims and Claim
Year Ended	Acquisition Costs		Reserves		Unearned Premiums		Earned Premiums		Investment Income		Current Year		Prior Years			Acquisition Costs		Adjustment Expenses		Premiums Written
	(In thousands)
December 31, 2013	$	3,234	$	51,200	$	22,996	$	45,851	$	4,288	$	32,672	$	(2,475	)	$	7,140	$	27,339	$	50,774

December 31, 2012	$	3,269	$	52,764	$	18,073	$	37,471	$	4,529	$	29,054	$	(1,717	)	$	8,774	$	27,134	$	36,182

See accompanying report of independent registered public accounting firm.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2013
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. At December 31, 2013, the Parent owned four insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (“BFAC”) (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk Services, Inc. BFAC was acquired on December 18, 2013. The results of operations of BFAC are included from the date of acquisition. The Parent has issued a guarantee of all liabilities of Bankers Fidelity.
Premium Revenue and Cost Recognition	Premium Revenue and Cost Recognition Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. The deferred policy acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance).
Intangibles	Intangibles Intangibles consist of goodwill and other indefinite-lived intangibles. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses acquired in the 2013 acquisition of BFAC (Note 17) and are not amortized. As of December 31, 2013 and 2012, intangibles were $2,544 and $2,128, respectively. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during the periods presented.
Investments	Investments The Company’s investments in both fixed maturities, which include bonds and redeemable preferred stocks, and equity securities, which include common and non-redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The fair values for fixed maturities and equity securities are largely determined by either independent methods prescribed by the National Association of Insurance Commissioners (“NAIC”), which do not differ materially from publicly quoted market prices, when available, or independent broker quotations. The Company owns certain fixed maturities that do not have publicly quoted market values, but had an estimated fair value as determined by management of $1,991 at December 31, 2013. Such values inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market values. Policy loans and real estate are carried at historical cost. Other invested assets are comprised of investments in limited partnerships, limited liability companies, and real estate joint ventures, and are accounted for using the equity method. If the value of a common stock, preferred stock, other invested asset, or publicly traded bond declines below its cost or amortized cost, if applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold these securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of invested assets are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income.
Income Taxes	Income Taxes Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of the deferred tax asset will not be realized.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share are based on the weighted average number of common shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common shares outstanding during the relevant period, plus options and share awards outstanding using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities which have original maturities of three months or less from date of purchase.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). The main objective of ASU 2013-02 is to enhance disclosures for reclassification adjustments including changes in accumulated other comprehensive income (“AOCI”) balances by component and significant items reclassified out of AOCI. ASU 2013-02 does not change the requirements for reporting net income or other comprehensive income in financial statements. However, the ASU requires an entity to provide enhanced disclosures to present separately by component reclassifications out of AOCI. In addition, an entity is also required to provide a tabular disclosure of the effect of items reclassified out of AOCI on the respective line items of net income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety. For other reclassification items that are not required under GAAP to be reclassified directly to net income in their entirety, ASU 2013-02 only requires a cross-reference to other disclosures required under GAAP for those items. The Company adopted ASU 2013-02 effective January 1, 2013. Since ASU 2013-02 was a disclosure only update, its adoption did not have a material impact on the Company’s financial condition or results of operations. See Consolidated Statements of Comprehensive Income and Note 16 for expanded disclosures.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and commitments and contingencies, among others, and actual results could differ materially from management’s estimates.

Investments (Tables)

12 Months Ended

Dec. 31, 2013

Investments [Abstract ]

Schedule of investments aggregated by type and industry

Investments were comprised of the following:

	2013
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	17,240	$	576	$	210	$	16,874
Obligations of states and political subdivisions		7,611		402		17		7,226
Corporate securities:
Utilities and telecom		16,532		1,353		7		15,186
Financial services		50,531		1,736		320		49,115
Other business – diversified		70,326		870		2,906		72,362
Other consumer – diversified		36,712		391		1,745		38,066
Total corporate securities		174,101		4,350		4,978		174,729
Redeemable preferred stocks:
Financial services		2,159		4		41		2,196
Other consumer – diversified		192		-		-		192
Total redeemable preferred stocks		2,351		4		41		2,388
Total fixed maturities		201,303		5,332		5,246		201,217
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,474		510		-		964
Financial services		5,761		514		560		5,807
Other business – diversified		178		131		-		47
Other consumer – diversified		14,477		8,863		-		5,614
Total equity securities		21,890		10,018		560		12,432
Other invested assets		2,123		-		-		2,123
Policy loans		2,369		-		-		2,369
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	228,961	$	15,350	$	5,806	$	219,417

	2012
			Gross		Gross
	Carrying		Unrealized		Unrealized		Amortized
	Value		Gains		Losses		Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	27,512	$	4,618	$	-	$	22,894
Obligations of states and political subdivisions		17,761		2,514		-		15,247
Corporate securities:
Utilities and telecom		17,921		3,128		-		14,793
Financial services		43,695		3,957		415		40,153
Other business – diversified		66,741		7,172		12		59,581
Other consumer – diversified		52,910		7,665		120		45,365
Total corporate securities		181,267		21,922		547		159,892
Redeemable preferred stocks:
Financial services		3,775		18		3		3,760
Other consumer – diversified		193		-		-		193
Total redeemable preferred stocks		3,968		18		3		3,953
Total fixed maturities		230,508		29,072		550		201,986
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,298		334		-		964
Financial services		8,607		857		39		7,789
Other business – diversified		134		87		-		47
Other consumer – diversified		2,166		489		-		1,677
Total equity securities		12,205		1,767		39		10,477
Other invested assets		565		-		-		565
Policy loans		2,338		-		-		2,338
Real estate		38		-		-		38
Investments in unconsolidated trusts		1,238		-		-		1,238
Total investments	$	246,892	$	30,839	$	589	$	216,642

Schedule of investments aggregated by industry

The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of December 31, 2013 and 2012.

	2013							2012
	Carrying Value		Amortized Cost		Unrealized Gains (Losses)			Carrying Value		Amortized Cost		Unrealized Gains
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	17,240	$	16,874	$	366		$	27,512	$	22,894	$	4,618
Obligations of states and political subdivisions		7,611		7,226		385			17,761		15,247		2,514
Utilities and telecom		18,006		16,150		1,856			19,219		15,757		3,462
Financial services		58,451		57,118		1,333			56,077		51,702		4,375
Other business – diversified		70,504		72,409		(1,905	)		66,875		59,628		7,247
Other consumer – diversified		51,381		43,872		7,509			55,269		47,235		8,034
Other investments		5,768		5,768		-			4,179		4,179		-
Investments	$	228,961	$	219,417	$	9,544		$	246,892	$	216,642	$	30,250

Schedule of investment securities with continuous unrealized loss position

	2013
	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	$	8,326	$	210	$	-	$	-	$	8,326	$	210
Obligations of states and political subdivisions		1,018		17						1,018		17
Corporate securities		92,049		3,714		6,938		1,264		98,987		4,978
Redeemable preferred stocks		704		41		-		-		704		41
Common and non-redeemable preferred stocks		3,724		560		-		-		3,724		560
Total temporarily impaired securities	$	105,821	$	4,542	$	6,938	$	1,264	$	112,759	$	5,806

	2012
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Corporate securities	$	8,806	$	147	$	1,600	$	400	$	10,406	$	547
Redeemable preferred stocks		1,216		3		-		-		1,216		3
Common and non-redeemable preferred stocks		3,494		39		-		-		3,494		39
Total temporarily impaired securities	$	13,516	$	189	$	1,600	$	400	$	15,116	$	589

Financial instruments carried at fair value measured on a recurring basis

As of December 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	199,312	$	1,991	$	201,303
Equity securities		16,406		5,484		-		21,890
Cash equivalents		31,618		-		-		31,618
Total	$	48,024	$	204,796	$	1,991	$	254,811

As of December 31, 2012, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	-	$	228,384	$	2,124	$	230,508
Equity securities		3,805		8,400		-		12,205
Cash equivalents		15,326		-		-		15,326
Total	$	19,131	$	236,784	$	2,124	$	258,039
Liabilities:
Derivative financial instrument (Note 7)	$	-	$	-	$	141	$	141

Roll-forward of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

	Fixed Maturities			Derivative (Liability)
Balance, January 1, 2012	$	2,035		$	(876	)
Total unrealized gains included in comprehensive income		89			735
Balance, December 31, 2012		2,124			(141	)
Total unrealized gains (losses) included in comprehensive income		(133	)		141
Balance, December 31, 2013	$	1,991		$	-

Amortized cost and carrying value of fixed maturities by contractual maturity

	2013				2012
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	-	$	-	$	1,510	$	1,500
Due after one year through five years		11,709		11,097		5,799		5,213
Due after five years through ten years		108,358		107,846		40,416		37,013
Due after ten years		76,882		77,884		181,608		157,266
Varying maturities		4,354		4,390		1,175		994
Totals	$	201,303	$	201,217	$	230,508	$	201,986

Investment income earned

Investment income was earned from the following sources:

	2013			2012
Fixed maturities	$	9,890		$	10,626
Equity securities		632			571
Other		287			307
Total investment income		10,809			11,504
Less investment expenses, included in other expenses		(474	)		(194	)
Net investment income	$	10,335		$	11,310

Summary of realized investment gains (losses)

A summary of realized investment gains (losses) follows:

	2013
	Fixed Maturities			Equity Securities			Total
Gains	$	8,521		$	293		$	8,814
Losses		(45	)		(28	)		(73	)
Realized investment gains, net	$	8,476		$	265		$	8,741

	2012
	Fixed Maturities		Equity Securities		Total
Gains	$	1,434	$	-	$	1,434
Losses		-		-		-
Realized investment gains, net	$	1,434	$	-	$	1,434

Proceeds from sales of investments

Proceeds from the sales of investments were as follows:

	2013		2012
Fixed maturities	$	107,728	$	24,433
Equity securities		972		-
Other investments		45		46
Total proceeds	$	108,745	$	24,479

Insurance Reserves and Policyholder Funds (Tables)

12 Months Ended

Dec. 31, 2013

Insurance Reserves And Policyholder Funds [Abstract]

Reserves for life, accident, health and property and casualty losses, including loss adjustment expenses

The following table presents the Company’s reserves for life, accident, health and property and casualty losses as well as loss adjustment expenses.

					Amount of Insurance In Force, Net
	2013		2012		2013		2012
Future policy benefits
Life insurance policies:
Ordinary	$	52,915	$	51,256	$	237,694	$	244,634
Mass market		2,715		3,037		3,504		4,001
Individual annuities		135		142		-		-
		55,765		54,435	$	241,198	$	248,635
Accident and health insurance policies		14,099		12,497
		69,864		66,932
Unearned premiums		27,415		22,637
Losses, claims and loss adjustment expenses		63,018		62,873
Other policy liabilities		2,076		2,116
Total insurance reserves and policyholder funds	$	162,373	$	154,558

Summary of activity in liabilities for unpaid loss and claim reserved

Activity in the liability for unpaid loss and claim reserves is summarized as follows:

	2013			2012
Balance at January 1	$	62,873		$	57,975
Less: Reinsurance receivable on unpaid losses		(18,743	)		(15,673	)
Net balance at January 1		44,130			42,302

Incurred related to:
Current year		97,904			86,780
Prior years		(1,657	)		(1,841	)
Total incurred		96,247			84,939

Paid related to:
Current year		66,705			61,786
Prior years		24,968			21,325
Total paid		91,673			83,111
Net balance at December 31		48,704			44,130
Plus: Reinsurance receivable on unpaid losses		14,314			18,743
Balance at December 31	$	63,018		$	62,873

Reconciliation of total incurred claims to total insurance benefits and losses

Following is a reconciliation of total incurred claims to total insurance benefits and losses incurred:

	2013		2012
Total incurred claims	$	96,247	$	84,939
Cash surrender value and matured endowments		1,215		1,241
Benefit reserve changes		2,910		3,637
Total insurance benefits and losses incurred	$	100,372	$	89,817

The entire disclosure for the present values of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums using assumptions such as estimates of expected investment yields, mortality, morbidity, terminations and expenses, applicable at the time the insurance contracts are made and unpaid claim costs relating to insurance contracts including estimates of costs relating to incurred but not reported claims based on the estimated ultimate cost of settling the claims (including effects of inflation and other societal and economic factors), using past experience adjusted for current trends and any other factors that would modify past experience by element such as business segment, country and interest rate range.

+ References+ Details

Effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

+ References+ Details

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2013

Reinsurance [Abstract]

The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:

	2013			2012
Direct premiums written	$	141,313		$	130,402
Assumed premiums written		16,702			3,003
Ceded premiums written		(7,607	)		(7,671	)
Net premiums written	$	150,408		$	125,734

Direct premiums earned	$	141,720		$	131,299
Assumed premiums earned		11,517			3,115
Ceded premiums earned		(7,607	)		(7,671	)
Net premiums earned	$	145,630		$	126,743

Provision for benefits and losses incurred	$	105,828		$	99,026
Reinsurance loss recoveries		(5,456	)		(9,209	)
Insurance benefits and losses incurred	$	100,372		$	89,817

Components of reinsurance receivables

Components of reinsurance receivables were as follows:

	2013		2012
Receivable on unpaid losses	$	14,314	$	18,743
Receivable on paid losses		-		25
Total reinsurance receivables	$	14,314	$	18,768

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Allocation of total income taxes

Total income taxes were allocated as follows:

	2013			2012
Total tax expense on income	$	184		$	646

Tax expense (benefit) on components of shareholders’ equity:
Net unrealized gains (losses) on investment securities		(7,247	)		3,688
Fair value adjustment to derivative financial instrument		49			257
Total tax expense (benefit) on shareholders’ equity		(7,198	)		3,945
Total tax expense (benefit)	$	(7,014	)	$	4,591

Reconciliation of income tax expense

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense is as follows:

	2013			2012
Federal income tax provision at statutory rate of 35%	$	3,922		$	1,779
Dividends received deduction		(149	)		(175	)
Small life insurance company deduction		(586	)		(485	)
Other		50			46
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets		(3,059	)		(440	)
Adjustment for prior years’ estimates to actual		6			(79	)
Income tax expense	$	184		$	646

Deferred tax liabilities and assets

Deferred tax liabilities and assets at December 31, 2013 and 2012 were comprised of the following:

	2013			2012
Deferred tax liabilities:
Deferred acquisition costs	$	(3,766	)	$	(4,197	)
Deferred and uncollected premiums		(734	)		(743	)
Net unrealized investment gains		(3,341	)		(10,588	)
Other		(8	)		(8	)
Total deferred tax liabilities		(7,849	)		(15,536	)
Deferred tax assets:
Net operating loss carryforwards		844			1,575
Insurance reserves		5,109			4,516
Capital loss carryforwards		2,177			5,236
Impaired assets		1,406			1,406
Alternative minimum tax credit		309			306
Bad debts and other		576			601
Total deferred tax assets		10,421			13,640
Asset valuation allowance		(2,209	)		(5,268	)
Net deferred tax asset (liability)	$	363		$	(7,164	)

Components of income tax expense

The components of income tax expense were:

	2013			2012
Current - Federal	$	513		$	743
Deferred - Federal		2,730			343
Change in deferred tax asset valuation allowance		(3,059	)		(440	)
Total	$	184		$	646

Junior Subordinated Debentures (Tables)

12 Months Ended

Dec. 31, 2013

Junior Subordinated Debentures [Abstract]

Financial structure of statutory business trusts

The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2013 and 2012, was as follows:

	Atlantic American Statutory Trust I			Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed	$	18,042		$	23,196
Balance December 31, 2013		18,042			23,196
Balance December 31, 2012		18,042			23,196
Coupon rate	LIBOR + 4.00%			LIBOR + 4.10%
Interest payable	Quarterly			Quarterly
Maturity date	December 4, 2032			May 15, 2033
Redeemable by issuer	Yes			Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002			May 15, 2003
Securities issued		17,500			22,500
Liquidation preference per security	$	1		$	1
Liquidation value		17,500			22,500
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Distribution payable	Quarterly			Quarterly
Distribution guaranteed by ⁽³⁾	Atlantic American Corporation			Atlantic American Corporation

⁽¹⁾

⁽²⁾

⁽³⁾

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Benefit Plans [Abstract]

Summary of status of the stock options

A summary of the status of the Company’s stock options at December 31, 2013 and 2012 is as follows:

	2013					2012
Options	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Options outstanding, beginning of year		77,000		$	1.59		231,000		$	1.68
Options exercised		(62,500	)		1.59		(150,000	)		1.73
Options canceled or expired		(14,500	)		1.59		(4,000	)		1.59
Options outstanding, end of year		-			-		77,000			1.59
Options exercisable		-			-		77,000			1.59
Options available for future grant		1,800,000					2,000,000

Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Common Share [Abstract]

Reconciliation of numerator and denominator used in earnings per common share calculations

A reconciliation of the numerator and denominator of the earnings per common share calculations is as follows:

	For the Year Ended December 31, 2013
	Income			Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share
Net income before preferred stock dividends	$	11,022			21,236
Less preferred stock dividends		(482	)		-
Net income applicable to common shareholders		10,540			21,236	$	.50
Diluted Earnings Per Common Share
Effect of dilutive stock options		-			10
Effect of Series D Preferred Stock		482			1,629
Net income applicable to common shareholders	$	11,022			22,875	$	.48

	For the Year Ended December 31, 2012
	Income			Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share
Net income before preferred stock dividends	$	4,436			21,222
Less preferred stock dividends		(508	)		-
Net income applicable to common shareholders		3,928			21,222	$	.19
Diluted Earnings Per Common Share
Effect of dilutive stock options		-			67
Net income applicable to common shareholders	$	3,928			21,289	$	.18

Statutory Reporting (Tables)

12 Months Ended

Dec. 31, 2013

Statutory Reporting [Abstract]

Reported statutory net income and surplus for the Parent's insurance subsidiaries

The amount of reported statutory net income and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:

	2013		2012
Life and Health, net income	$	3,013	$	2,271
Property and Casualty, net income		6,224		3,104
Statutory net income	$	9,237	$	5,375

Life and Health, surplus	$	34,530	$	33,059
Property and Casualty, surplus		39,092		36,947
Statutory surplus	$	73,622	$	70,006

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

Revenue and income (loss) before tax for each business unit

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+ Details

Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment Information [Abstract]

	2013
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated

Insurance premiums	$	45,851		$	99,779		$	-		$	-		$	145,630
Insurance benefits and losses incurred		30,197			70,175			-			-			100,372
Expenses deferred		(7,106	)		(3,230	)		-			-			(10,336	)
Amortization and depreciation expense		7,440			2,120			-			-			9,560
Other expenses		15,777			31,742			15,076			(8,028	)		54,567
Total expenses		46,308			100,807			15,076			(8,028	)		154,163
Underwriting loss		(457	)		(1,028	)
Investment income		4,308			5,920			2,338			(1,757	)		10,809
Other income		12			40			6,408			(6,271	)		189
Operating income (loss)		3,863			4,932			(6,330	)		-			2,465
Net realized gains		3,767			4,330			644			-			8,741
Income (loss) before income taxes	$	7,630		$	9,262		$	(5,686	)	$	-		$	11,206
Total revenues	$	53,938		$	110,069		$	9,390		$	(8,028	)	$	165,369
Intangibles	$	1,350		$	1,194		$	-		$	-		$	2,544
Total assets	$	126,861		$	156,484		$	141,304		$	(105,268	)	$	319,381

	2012
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated

Insurance premiums	$	37,471		$	89,272		$	-		$	-		$	126,743
Insurance benefits and losses incurred		27,337			62,480			-			-			89,817
Expenses deferred		(8,515	)		(3,810	)		-			-			(12,325	)
Amortization and depreciation expense		9,009			1,911			-			-			10,920
Other expenses		11,758			27,674			14,340			(7,438	)		46,334
Total expenses		39,589			88,255			14,340			(7,438	)		134,746
Underwriting income (loss)		(2,118	)		1,017
Investment income		4,560			6,195			2,582			(1,833	)		11,504
Other income		-			48			5,704			(5,605	)		147
Operating income (loss)		2,442			7,260			(6,054	)		-			3,648
Net realized gains		383			1,051			-			-			1,434
Income (loss) before income taxes	$	2,825		$	8,311		$	(6,054	)	$	-		$	5,082
Total revenues	$	42,414		$	96,566		$	8,286		$	(7,438	)	$	139,828
Intangibles	$	1,350		$	778		$	-		$	-		$	2,128
Total assets	$	130,092		$	161,078		$	153,912		$	(124,905	)	$	320,177

Disclosures About Fair Value of Financial Instruments [Abstract]

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

Disclosures About Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Carrying amount, estimated fair value and level within the fair value hierarchy of financial instruments

		2013				2012
	Level in Fair Value Hierarchy ⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	33,102	$	33,102	$	18,951	$	18,951
Fixed maturities	⁽¹⁾		201,303		201,303		230,508		230,508
Equity securities	⁽¹⁾		21,890		21,890		12,205		12,205
Other invested assets	Level 3		2,123		2,123		565		565
Policy loans	Level 2		2,369		2,369		2,338		2,338
Real estate	Level 2		38		38		38		38
Investments in unconsolidated trusts	Level 2		1,238		1,238		1,238		1,238

Liabilities:
Junior Subordinated Debentures	Level 2		41,238		41,238		41,238		41,238
Derivative financial instrument	Level 3		-		-		141		141

⁽¹⁾

See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

Assets and liabilities acquired

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Acquisitions [Abstract]

	2013
Cash and cash equivalents	$	1,317
Investments		2,123
Receivables		7
Intangibles		416
Total assets	$	3,863

Accounts payable and accrued expenses	$	6
Total liabilities	$	6

Summary of Significant Accounting Policies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Subsidiary	Dec. 31, 2012
Principles of Consolidation [Abstract]
Number of insurance subsidiaries owned by the Parent	4
Number of non-insurance subsidiaries owned by the Parent	1
Intangible Assets [Abstract]
Intangibles	$ 2,544	$ 2,128
Investments [Abstract]
Estimated fair value	$ 1,991	$ 2,124

Investments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	$ 228,961	$ 246,892
Gross Unrealized Gains	15,350	30,839
Gross Unrealized Losses	5,806	589
Amortized Cost	219,417	216,642
Amortized cost of bonds on deposit with insurance regulatory authorities	10,101	7,170
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	17,240	27,512
Amortized Cost	16,874	22,894
Obligations of states and political subdivisions [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	7,611	17,761
Amortized Cost	7,226	15,247
Utilities and telecom [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	18,006	19,219
Amortized Cost	16,150	15,757
Financial services [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	58,451	56,077
Amortized Cost	57,118	51,702
Other business - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	70,504	66,875
Amortized Cost	72,409	59,628
Other consumer - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	51,381	55,269
Amortized Cost	43,872	47,235
Fixed maturities [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	201,303	230,508
Gross Unrealized Gains	5,332	29,072
Gross Unrealized Losses	5,246	550
Amortized Cost	201,217	201,986
Fixed maturities [Member] \| Bonds [Member] \| U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	17,240	27,512
Gross Unrealized Gains	576	4,618
Gross Unrealized Losses	210	0
Amortized Cost	16,874	22,894
Fixed maturities [Member] \| Bonds [Member] \| Obligations of states and political subdivisions [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	7,611	17,761
Gross Unrealized Gains	402	2,514
Gross Unrealized Losses	17	0
Amortized Cost	7,226	15,247
Fixed maturities [Member] \| Corporate securities [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	174,101	181,267
Gross Unrealized Gains	4,350	21,922
Gross Unrealized Losses	4,978	547
Amortized Cost	174,729	159,892
Fixed maturities [Member] \| Corporate securities [Member] \| Utilities and telecom [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	16,532	17,921
Gross Unrealized Gains	1,353	3,128
Gross Unrealized Losses	7	0
Amortized Cost	15,186	14,793
Fixed maturities [Member] \| Corporate securities [Member] \| Financial services [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	50,531	43,695
Gross Unrealized Gains	1,736	3,957
Gross Unrealized Losses	320	415
Amortized Cost	49,115	40,153
Fixed maturities [Member] \| Corporate securities [Member] \| Other business - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	70,326	66,741
Gross Unrealized Gains	870	7,172
Gross Unrealized Losses	2,906	12
Amortized Cost	72,362	59,581
Fixed maturities [Member] \| Corporate securities [Member] \| Other consumer - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	36,712	52,910
Gross Unrealized Gains	391	7,665
Gross Unrealized Losses	1,745	120
Amortized Cost	38,066	45,365
Fixed maturities [Member] \| Redeemable preferred stocks [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	2,351	3,968
Gross Unrealized Gains	4	18
Gross Unrealized Losses	41	3
Amortized Cost	2,388	3,953
Fixed maturities [Member] \| Redeemable preferred stocks [Member] \| Financial services [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	2,159	3,775
Gross Unrealized Gains	4	18
Gross Unrealized Losses	41	3
Amortized Cost	2,196	3,760
Fixed maturities [Member] \| Redeemable preferred stocks [Member] \| Other consumer - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	192	193
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Amortized Cost	192	193
Equity securities [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	21,890	12,205
Gross Unrealized Gains	10,018	1,767
Gross Unrealized Losses	560	39
Amortized Cost	12,432	10,477
Equity securities [Member] \| Common and non-redeemable preferred stocks [Member] \| Utilities and telecom [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	1,474	1,298
Gross Unrealized Gains	510	334
Gross Unrealized Losses	0	0
Amortized Cost	964	964
Equity securities [Member] \| Common and non-redeemable preferred stocks [Member] \| Financial services [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	5,761	8,607
Gross Unrealized Gains	514	857
Gross Unrealized Losses	560	39
Amortized Cost	5,807	7,789
Equity securities [Member] \| Common and non-redeemable preferred stocks [Member] \| Other business - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	178	134
Gross Unrealized Gains	131	87
Gross Unrealized Losses	0	0
Amortized Cost	47	47
Equity securities [Member] \| Common and non-redeemable preferred stocks [Member] \| Other consumer - diversified [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	14,477	2,166
Gross Unrealized Gains	8,863	489
Gross Unrealized Losses	0	0
Amortized Cost	5,614	1,677
Other invested assets [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	2,123	565
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Amortized Cost	2,123	565
Policy loans [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	2,369	2,338
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Amortized Cost	2,369	2,338
Real estate [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	38	38
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Amortized Cost	38	38
Investments in unconsolidated trusts [Member]
Schedule of investments aggregated by type and industry [Abstract]
Carrying Value	1,238	1,238
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Amortized Cost	$ 1,238	$ 1,238

This item represents the cost of debt and equity securities, which are categorized neither as held-to-maturity nor trading, net of adjustments including accretion, amortization, collection of cash, previous other-than-temporary impairments recognized in earnings (less any cumulative-effect adjustments recognized, as defined), and fair value hedge accounting adjustments, if any.

+ References+ Details

This item represents the gross unrealized gains for securities, at a point in time, which are categorized neither as held-to-maturity nor trading securities.

+ References+ Details

The carrying amount of securities categorized neither as held-to-maturity nor trading which serve as security for borrowings or other arrangements.

Number of Connecticut statutory business trusts

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher OTS

-Name Federal Regulation (FR)

-Number Title 12

-Section 563c.102

-Paragraph 4

-Chapter V

-Subsection I

-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 01-6

-Paragraph 13

-Subparagraph i

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph b

-Article 4

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 6

-Article 9

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5086-111524

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX210.4-08(b))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 18, 19

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments, Part II (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of investments aggregated by industry [Abstract]
Carrying Value	$ 228,961	$ 246,892
Amortized Cost	219,417	216,642
Unrealized Gain (Losses)	9,544	30,250
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	105,821	13,516
12 months or longer	6,938	1,600
Total	112,759	15,116
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	4,542	189
12 months or longer	1,264	400
Total	5,806	589
U.S. Treasury securities and obligations of U.S. Government agencies and authorities [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	17,240	27,512
Amortized Cost	16,874	22,894
Unrealized Gain (Losses)	366	4,618
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	8,326
12 months or longer	0
Total	8,326
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	210
12 months or longer	0
Total	210
Obligations of states and political subdivisions [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	7,611	17,761
Amortized Cost	7,226	15,247
Unrealized Gain (Losses)	385	2,514
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	1,018
Total	1,018
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	17
Total	17
Utilities and telecom [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	18,006	19,219
Amortized Cost	16,150	15,757
Unrealized Gain (Losses)	1,856	3,462
Financial services [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	58,451	56,077
Amortized Cost	57,118	51,702
Unrealized Gain (Losses)	1,333	4,375
Other business - diversified [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	70,504	66,875
Amortized Cost	72,409	59,628
Unrealized Gain (Losses)	(1,905)	7,247
Other consumer - diversified [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	51,381	55,269
Amortized Cost	43,872	47,235
Unrealized Gain (Losses)	7,509	8,034
Other Investment [Member]
Schedule of investments aggregated by industry [Abstract]
Carrying Value	5,768	4,179
Amortized Cost	5,768	4,179
Unrealized Gain (Losses)	0	0
Corporate securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	92,049	8,806
12 months or longer	6,938	1,600
Total	98,987	10,406
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	3,714	147
12 months or longer	1,264	400
Total	4,978	547
Redeemable preferred stocks [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	704	1,216
12 months or longer	0	0
Total	704	1,216
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	41	3
12 months or longer	0	0
Total	41	3
Common and non-redeemable preferred stocks [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	3,724	3,494
12 months or longer	0	0
Total	3,724	3,494
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	560	39
12 months or longer	0	0
Total	$ 560	$ 39

Investments, Part III (Details) (Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	$ 254,811	$ 258,039
Derivative financial instrument [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Liabilities at fair value		141
Fixed maturities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	201,303	230,508
Equity securities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	21,890	12,205
Cash equivalents [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	31,618	15,326
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	48,024	19,131
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Derivative financial instrument [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Liabilities at fair value		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Fixed maturities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Equity securities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	16,406	3,805
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Cash equivalents [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	31,618	15,326
Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	204,796	236,784
Significant Other Observable Inputs (Level 2) [Member] \| Derivative financial instrument [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Liabilities at fair value		0
Significant Other Observable Inputs (Level 2) [Member] \| Fixed maturities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	199,312	228,384
Significant Other Observable Inputs (Level 2) [Member] \| Equity securities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	5,484	8,400
Significant Other Observable Inputs (Level 2) [Member] \| Cash equivalents [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	0	0
Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	1,991	2,124
Significant Unobservable Inputs (Level 3) [Member] \| Derivative financial instrument [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Liabilities at fair value		141
Significant Unobservable Inputs (Level 3) [Member] \| Fixed maturities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	1,991	2,124
Significant Unobservable Inputs (Level 3) [Member] \| Equity securities [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] \| Cash equivalents [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Assets at fair value	$ 0	$ 0

Investments, Part IV (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fixed maturities [Member]
Assets measured at fair value on a recurring basis [Abstract]
Balance, beginning of period	$ 2,124	$ 2,035
Total unrealized gains (losses) included in comprehensive income	(133)	89
Balance, end of period	1,991	2,124
Derivative (Liability) [Member]
Liabilities measured at fair value on a recurring basis [Abstract]
Balance, beginning of period	(141)	(876)
Total unrealized gains included in comprehensive income	141	735
Balance, end of period	$ 0	$ (141)

Investments, Part V (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Carrying Value [Abstract]
Due in one year or less	$ 0	$ 1,510
Due after one year through five years	11,709	5,799
Due after five years through ten years	108,358	40,416
Due after ten years	76,882	181,608
Varying maturities	4,354	1,175
Totals	201,303	230,508
Amortized Cost [Abstract]
Due in one year or less	0	1,500
Due after one year through five years	11,097	5,213
Due after five years through ten years	107,846	37,013
Due after ten years	77,884	157,266
Varying maturities	4,390	994
Totals	201,217	201,986
Investment income earned [Abstract]
Total investment income	10,809	11,504
Less investment expenses, included in other expenses	(474)	(194)
Net investment income	10,335	11,310
Summary of realized investment gains (losses) [Abstract]
Gains	8,814	1,434
Losses	(73)	0
Realized investment gains (losses), net	8,741	1,434
Proceeds from sales of investments [Abstract]
Total proceeds	108,745	24,479
Percentage of investment grade securities in bond portfolio (in hundredths)	90.00%
Fixed maturities [Member]
Investment income earned [Abstract]
Total investment income	9,890	10,626
Summary of realized investment gains (losses) [Abstract]
Gains	8,521	1,434
Losses	(45)	0
Realized investment gains (losses), net	8,476	1,434
Proceeds from sales of investments [Abstract]
Total proceeds	107,728	24,433
Equity securities [Member]
Investment income earned [Abstract]
Total investment income	632	571
Summary of realized investment gains (losses) [Abstract]
Gains	293	0
Losses	(28)	0
Realized investment gains (losses), net	265	0
Proceeds from sales of investments [Abstract]
Total proceeds	972	0
Other investments [Member]
Investment income earned [Abstract]
Total investment income	287	307
Proceeds from sales of investments [Abstract]
Total proceeds	$ 45	$ 46

Insurance Reserves and Policyholder Funds (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Reserves for life, accident and health [Abstract]
Future policy benefits	$ 69,864	$ 66,932
Unearned premiums	27,415	22,637
Losses, claims and loss adjustment expenses	63,018	62,873
Other policy liabilities	2,076	2,116
Total insurance reserves and policyholder funds	162,373	154,558
Annualized premiums for accident and health insurance policies	91,359	83,038
Summary of activity in liability for unpaid loss and claim reserves [Abstract]
Balance at January 1	62,873	57,975
Less: Reinsurance receivable on unpaid losses	(18,743)	(15,673)
Net balance at January 1	44,130	42,302
Incurred related to [Abstract]
Current year	97,904	86,780
Prior years	(1,657)	(1,841)
Total incurred	96,247	84,939
Paid related to [Abstract]
Current year	66,705	61,786
Prior years	24,968	21,325
Total paid	91,673	83,111
Net balance at December 31	48,704	44,130
Plus: Reinsurance receivable on unpaid losses	14,314	18,743
Balance at December 31	63,018	62,873
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred claims	96,247	84,939
Cash surrender value and matured endowments	1,215	1,241
Benefit reserve changes	2,910	3,637
Total insurance benefits and losses incurred	100,372	89,817
Ordinary [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	52,915	51,256
Ordinary [Member] \| Life Insurance in Force [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	237,694	244,634
Mass market [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	2,715	3,037
Mass market [Member] \| Life Insurance in Force [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	3,504	4,001
Individual annuities [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	135	142
Individual annuities [Member] \| Life Insurance in Force [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	0	0
Life Insurance Segment [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	55,765	54,435
Life Insurance Segment [Member] \| Life Insurance in Force [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	241,198	248,635
Accident and Health Insurance Segment [Member]
Reserves for life, accident and health [Abstract]
Future policy benefits	$ 14,099	$ 12,497
Life, accident and health insurance [Member] \| Prior to 1977 [Member]
Future policy benefits [Abstract]
Policy issue range for future benefits assumptions	prior to 1977
Life, accident and health insurance [Member] \| Prior to 1977 [Member] \| Minimum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	2.50%
Life, accident and health insurance [Member] \| Prior to 1977 [Member] \| Maximum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	5.50%
Life, accident and health insurance [Member] \| 1977 to 1979 [Member]
Future policy benefits [Abstract]
Policy issue range for future benefits assumptions	1977 through 1979
Life, accident and health insurance [Member] \| 1977 to 1979 [Member] \| Minimum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	5.50%
Life, accident and health insurance [Member] \| 1977 to 1979 [Member] \| Maximum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	7.00%
Life, accident and health insurance [Member] \| 1980 to 1987 [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	9.00%
Policy issue range for future benefits assumptions	1980 through 1987
Life, accident and health insurance [Member] \| 1988 to 2009 [Member]
Future policy benefits [Abstract]
Policy issue range for future benefits assumptions	1988 through 2009
Life, accident and health insurance [Member] \| 1988 to 2009 [Member] \| Minimum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	5.00%
Life, accident and health insurance [Member] \| 1988 to 2009 [Member] \| Maximum [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	7.00%
Life, accident and health insurance [Member] \| 2010 and 2013 [Member]
Future policy benefits [Abstract]
Interest rates assumed for future policy benefits (in hundredths)	4.00%
Policy issue range for future benefits assumptions	2010 through 2013 issues

Reinsurance (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Reinsurer	Dec. 31, 2012
Ceded Credit Risk [Line Items]
Reinsurance receivables due from reinsurers (in hundredths)	99.00%
Number of reinsurers	2
Summary reconciliation of premiums written and premiums earned [Abstract]
Direct premiums written	$ 141,313	$ 130,402
Assumed premiums written	16,702	3,003
Ceded premiums written	(7,607)	(7,671)
Net premiums written	150,408	125,734
Direct premiums earned	141,720	131,299
Assumed premiums earned	11,517	3,115
Ceded premiums earned	(7,607)	(7,671)
Net premiums earned	145,630	126,743
Provision for benefits and losses incurred	105,828	99,026
Reinsurance loss recoveries	(5,456)	(9,209)
Total insurance benefits and losses incurred	100,372	89,817
Components of reinsurance receivables [Abstract]
Receivable on unpaid losses	14,314	18,743
Receivable on paid losses	0	25
Total reinsurance receivables	14,314	18,768
Swiss Reinsurance Corporation [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivables due	1,209
General Reinsurance Corporation [Member]
Ceded Credit Risk [Line Items]
Reinsurance receivables due	$ 13,021

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Allocation of total income taxes [Abstract]
Total tax expense on income	$ 184	$ 646
Tax expense (benefit) on components of shareholders equity: [Abstract]
Net unrealized gains (losses) on investment securities	(7,247)	3,688
Fair value adjustment to derivative financial instrument	49	257
Total tax expense (benefit) on shareholders equity	(7,198)	3,945
Total tax expense (benefit)	(7,014)	4,591
Reconciliation of income tax (benefit) expense [Abstract]
Federal income tax provision at statutory rate of 35%	3,922	1,779
Dividends received deduction	(149)	(175)
Small life insurance company deduction	(586)	(485)
Other	50	46
Change in asset valuation allowance due to change in judgment relating to realizability of deferred tax assets	(3,059)	(440)
Adjustment for prior years' estimates to actual	6	(79)
Income tax expense	184	646
Federal statutory income tax rate (in hundredths)	35.00%
SLD as percentage of life insurance company taxable income (in hundredths)	60.00%
Percentage of reduction in SLD (in hundredths)	15.00%
Minimum tentative amount of LICTI	3,000
Maximum tentative amount of LICTI	15,000
Deferred tax liabilities [Abstract]
Deferred acquisition costs	(3,766)	(4,197)
Deferred and uncollected premiums	(734)	(743)
Net unrealized investment gains	(3,341)	(10,588)
Other	(8)	(8)
Total deferred tax liabilities	(7,849)	(15,536)
Deferred tax assets [Abstract]
Net operating loss carryforwards	844	1,575
Insurance reserves	5,109	4,516
Capital loss carryforwards	2,177	5,236
Impaired assets	1,406	1,406
Alternative minimum tax credit	309	306
Bad debts and other	576	601
Total deferred tax assets	10,421	13,640
Asset valuation allowance	(2,209)	(5,268)
Net deferred tax asset (liability)	363	(7,164)
Components of income tax (benefit) expense [Abstract]
Current - Federal	513	743
Deferred - Federal	2,730	343
Change in deferred tax asset valuation allowance	(3,059)	(440)
Income tax expense	184	646
Regular federal net operating loss carryforwards subject to expiration	$ 2,411

Junior Subordinated Debentures (Details) (USD $)
In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Trust

Debt Instrument [Line Items]

Financial structure of statutory business trusts [Abstract]

Balance December 31, 2013

$ 41,238

Balance December 31, 2012

41,238

JUNIOR SUBORDINATED DEBENTURES [Member]

Financial structure of statutory business trusts [Abstract]

Number of consecutive quarters for which interest payments can be deferred

Atlantic American Statutory Trust I [Member] | JUNIOR SUBORDINATED DEBENTURES [Member]

Financial structure of statutory business trusts [Abstract]

Principal amount owed

18,042

^[1],[2]

Balance December 31, 2013

18,042

^[1],[2]

Balance December 31, 2012

18,042

^[1],[2]

Financial structure of statutory business trusts [Abstract]

LIBOR + 4.00%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

Dec. 04, 2032

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

Atlantic American Statutory Trust I [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

4.00%

Atlantic American Statutory Trust I [Member] | TRUST PREFERRED SECURITIES [Member]

Securities issued (in shares)

LIBOR + 4.00%

Issuance date

Dec. 04, 2002

17,500

Liquidation preference per security (in dollars per share)

$ 1

Liquidation value

17,500

Distribution payable

Quarterly

Distribution guaranteed by (3)

Atlantic American Corporation

^[3]

Atlantic American Statutory Trust I [Member] | TRUST PREFERRED SECURITIES [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Financial structure of statutory business trusts [Abstract]

4.00%

Atlantic American Statutory Trust II [Member] | JUNIOR SUBORDINATED DEBENTURES [Member]

Principal amount owed

23,196

^[1],[2]

Balance December 31, 2013

23,196

^[1],[2]

Balance December 31, 2012

23,196

^[1],[2]

Financial structure of statutory business trusts [Abstract]

LIBOR +4.10%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

May 15, 2033

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

Atlantic American Statutory Trust II [Member] | JUNIOR SUBORDINATED DEBENTURES [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

4.10%

Atlantic American Statutory Trust II [Member] | TRUST PREFERRED SECURITIES [Member]

Securities issued (in shares)

LIBOR + 4.10%

Issuance date

May 15, 2003

22,500

Liquidation preference per security (in dollars per share)

$ 1

Liquidation value

$ 22,500

Distribution payable

Quarterly

Distribution guaranteed by (3)

Atlantic American Corporation

^[3]

Atlantic American Statutory Trust II [Member] | TRUST PREFERRED SECURITIES [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

4.10%

[1]	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.
[2]	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.
[3]	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.

Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies [Abstract]
Rental expense for operating leases	$ 1,215	$ 1,204
Future minimum base lease obligations under non-cancelable operating leases [Abstract]
2014	886
2015	425
2016	435
2017	446
2018	457
Thereafter	193
Total	$ 2,842

Benefit Plans (Details) (USD $)	12 Months Ended
Benefit Plans (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Stock Options [Member]
Summary of stock options' status, in shares [Roll Forward]
Options outstanding, beginning of year (in shares)	77,000	231,000
Options exercised (in shares)	(62,500)	(150,000)
Options canceled or expired (in shares)	(14,500)	(4,000)
Options outstanding, end of year (in shares)	0	77,000
Options exercisable (in shares)	0	77,000
Options available for future grant (in shares)	1,800,000	2,000,000
Weighted Average Exercise Price [Roll Forward]
Options outstanding, beginning of year (in dollars per share)	$ 1.59	$ 1.68
Options exercised (in dollars per share)	$ 1.59	$ 1.73
Options canceled or expired (in dollars per share)	$ 1.59	$ 1.59
Options outstanding, end of year (in dollars per share)	$ 0	$ 1.59
Options exercisable (in dollars per share)	$ 0	$ 1.59
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares issued (in shares)	200,000
Plan 2012 [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)	2,000,000

Benefit Plans, Share-based Compensation Stock Option by Exercise Price Range (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
401(k) Plan [Abstract]
Maximum percentage of compensation employees may defer (in hundredths)	50.00%
Total matching contribution	$ 173	$ 153
Employer maximum contribution to plan (in hundredths)	2.00%
Safe harbor non-elective contribution (in hundredths)	3.00%
Safe harbor non-elective contribution	$ 369	$ 302

Preferred Stock (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Series D Preferred Stock, outstanding (in shares)	65,000	70,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Redemption of preferred stock	$ 500
Dividends paid for Series D Preferred Stock	482	508
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Series D Preferred Stock, outstanding (in shares)	65,000	70,000
Preferred stock, par value (in dollars per share)	$ 100	$ 100
Accrued annual dividends rate (in dollars per share)	$ 7.25	$ 7.25
Number of preferred stock shares convertible to common shares (in shares)	1,629,000	1,754,000
Maximum number of common stock issuable from conversion of preference shares, without obtaining prior shareholder approval (in shares)	2,703,000
Company redeemed shares (in shares)	5,000
Redemption of preferred stock	500
Dividends accrued but unpaid	21	23
Dividends paid for Series D Preferred Stock	483	1,015
Preferred stock dividends in arrears paid		$ 508

Earnings Per Common Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income [Abstract]
Net income before preferred stock dividends	$ 11,022	$ 4,436
Less preferred stock dividends	(482)	(508)
Net income applicable to common shareholders	10,540	3,928
Effect of Series D preferred stock	482
Net income applicable to common shareholders, diluted	$ 11,022	$ 3,928
Shares [Abstract]
Weighted average shares outstanding, basic (in shares)	21,236	21,222
Effect of dilutive stock options (in shares)	10	67
Effect of Series D preferred stock (in shares)	1,629
Weighted average shares outstanding, diluted (in shares)	22,875	21,289
Per Share Amount [Abstract]
Net income applicable to common shareholders, basic (in dollars per share)	$ 0.50	$ 0.19
Net income applicable to common shareholders, diluted (in dollars per share)	$ 0.48	$ 0.18

Statutory Reporting (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statutory Accounting Practices [Line Items]
Dividends received from its subsidiaries	$ 6,646	$ 7,350
Maximum dividend payments by insurance subsidiaries without requiring prior approval	7,112
Statutory accounting practices [Member]
Statutory Accounting Practices [Line Items]
Statutory net income	9,237	5,375
Statutory surplus	73,622	70,006
Statutory accounting practices [Member] \| Life and Health [Member]
Statutory Accounting Practices [Line Items]
Statutory net income	3,013	2,271
Statutory surplus	34,530	33,059
Statutory accounting practices [Member] \| Property and Casualty [Member]
Statutory Accounting Practices [Line Items]
Statutory net income	6,224	3,104
Statutory surplus	$ 39,092	$ 36,947

The amount of statutory capital and surplus (stockholders' equity) as of the balance sheet date using prescribed or permitted statutory accounting practices (rather than GAAP, if different) of the state or country.

+ References+ Details

Related Party Transactions (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Director	Dec. 31, 2012
Related Party Transaction [Line Items]
Number of board of directors	3
Rental expense for operating leases	$ 1,215	$ 1,204
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Office and covered garage space leased (in square feet)	49,586
Rental expense for operating leases	864	853
Members of Management [Member]
Related Party Transaction [Line Items]
Aggregate carrying value of investments in Gray	$ 12,942	$ 908
Members of Management [Member] \| Class A common stock [Member]
Related Party Transaction [Line Items]
Shares of Gray common stock owned (in shares)	880,272	388,060
Members of Management [Member] \| Common Stock [Member]
Related Party Transaction [Line Items]
Shares of Gray common stock owned (in shares)	106,000	106,000

Balance held at close of period in number of shares.

+ References+ Details

Segment Information (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenue and income (loss) before tax for each business unit [Abstract]
Insurance premiums	$ 145,630	$ 126,743
Insurance benefits and losses incurred	100,372	89,817
Expenses deferred	(10,336)	(12,325)
Amortization and depreciation expense	9,560	10,920
Other expenses	54,567	46,334
Total benefits and expenses	154,163	134,746
Investment income	10,809	11,504
Other income	189	147
Operating income (loss)	2,465	3,648
Net realized gains	8,741	1,434
Income before income taxes	11,206	5,082
Total revenues	165,369	139,828
Intangibles	2,544	2,128
Total assets	319,381	320,177
American Southern [Member]
Revenue and income (loss) before tax for each business unit [Abstract]
Insurance premiums	45,851	37,471
Insurance benefits and losses incurred	30,197	27,337
Expenses deferred	(7,106)	(8,515)
Amortization and depreciation expense	7,440	9,009
Other expenses	15,777	11,758
Total benefits and expenses	46,308	39,589
Underwriting income (loss)	(457)	(2,118)
Investment income	4,308	4,560
Other income	12	0
Operating income (loss)	3,863	2,442
Net realized gains	3,767	383
Income before income taxes	7,630	2,825
Total revenues	53,938	42,414
Intangibles	1,350	1,350
Total assets	126,861	130,092
Bankers Fidelity [Member]
Revenue and income (loss) before tax for each business unit [Abstract]
Insurance premiums	99,779	89,272
Insurance benefits and losses incurred	70,175	62,480
Expenses deferred	(3,230)	(3,810)
Amortization and depreciation expense	2,120	1,911
Other expenses	31,742	27,674
Total benefits and expenses	100,807	88,255
Underwriting income (loss)	(1,028)	1,017
Investment income	5,920	6,195
Other income	40	48
Operating income (loss)	4,932	7,260
Net realized gains	4,330	1,051
Income before income taxes	9,262	8,311
Total revenues	110,069	96,566
Intangibles	1,194	778
Total assets	156,484	161,078
Corporate & Other [Member]
Revenue and income (loss) before tax for each business unit [Abstract]
Insurance premiums	0	0
Insurance benefits and losses incurred	0	0
Expenses deferred	0	0
Amortization and depreciation expense	0	0
Other expenses	15,076	14,340
Total benefits and expenses	15,076	14,340
Investment income	2,338	2,582
Other income	6,408	5,704
Operating income (loss)	(6,330)	(6,054)
Net realized gains	644	0
Income before income taxes	(5,686)	(6,054)
Total revenues	9,390	8,286
Intangibles	0	0
Total assets	141,304	153,912
Adjustments & Eliminations [Member]
Revenue and income (loss) before tax for each business unit [Abstract]
Insurance premiums	0	0
Insurance benefits and losses incurred	0	0
Expenses deferred	0	0
Amortization and depreciation expense	0	0
Other expenses	(8,028)	(7,438)
Total benefits and expenses	(8,028)	(7,438)
Investment income	(1,757)	(1,833)
Other income	(6,271)	(5,605)
Operating income (loss)	0	0
Net realized gains	0	0
Income before income taxes	0	0
Total revenues	(8,028)	(7,438)
Intangibles	0	0
Total assets	$ (105,268)	$ (124,905)

Disclosures About Fair Values of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified

Dec. 31, 2013

Dec. 31, 2012

Carrying Amount [Member]

Fixed maturities

$ 201,303

^[1]

$ 230,508

^[1]

Equity securities

21,890

^[1]

12,205

^[1]

Carrying Amount [Member] | Level 1 [Member]

33,102

18,951

Carrying Amount [Member] | Level 2 [Member]

Investment in unconsolidated trusts

Policy loans

2,369

2,338

Real estate

1,238

Junior Subordinated Debentures

41,238

Carrying Amount [Member] | Level 3 [Member]

Other invested assets

2,123

565

Derivative financial instrument

141

Estimated Fair Value [Member]

Fixed maturities

201,303

^[1]

230,508

^[1]

Equity securities

21,890

^[1]

12,205

^[1]

Estimated Fair Value [Member] | Level 1 [Member]

33,102

18,951

Estimated Fair Value [Member] | Level 2 [Member]

Investment in unconsolidated trusts

Policy loans

2,369

2,338

Real estate

1,238

Junior Subordinated Debentures

41,238

Estimated Fair Value [Member] | Level 3 [Member]

Other invested assets

2,123

565

Derivative financial instrument

$ 0

$ 141

[1]	See Note 2 for a description of the fair value hierarchy as well as a disclosure of levels for classes of these financial assets.

Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward]
Beginning balance	$ 19,571
Other comprehensive income (loss) before reclassifications	(7,685)
Amounts reclassified from accumulated other comprehensive income	(5,682)
Total other comprehensive income (loss), net of tax	(13,367)	7,327
Ending balance	6,204	19,571
Unrealized Gains on Available-for-Sale Securities [Member]
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward]
Beginning balance	19,663
Other comprehensive income (loss) before reclassifications	(7,777)
Amounts reclassified from accumulated other comprehensive income	(5,682)
Total other comprehensive income (loss), net of tax	(13,459)
Ending balance	6,204
Derivative Financial Instrument [Member]
Changes in balances of each component of accumulated other comprehensive income, net of taxes [Roll Forward]
Beginning balance	(92)
Other comprehensive income (loss) before reclassifications	92
Amounts reclassified from accumulated other comprehensive income	0
Total other comprehensive income (loss), net of tax	92
Ending balance	$ 0

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14

-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14A

-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 31

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 15D

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 14, 17, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

+ Details

Net of tax amount of other comprehensive income (loss) attributable to the parent entity.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 20

-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569643-111683

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 45

-Paragraph 19

-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4569616-111683

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 29

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

-Paragraph 1A

-Subparagraph (c)(3)

-URI http://asc.fasb.org/extlink&oid=18733093&loc=SL4573702-111684

+ Details

Acquisitions (Details) (Direct Life Insurance Company [Member], USD $) In Thousands, unless otherwise specified	Dec. 18, 2013
Direct Life Insurance Company [Member]
Business Acquisition [Line Items]
Business acquired percentage of outstanding stock (in hundredths)	100.00%
Purchase price	$ 3,857
Assets and liabilities acquired [Abstract]
Cash and cash equivalents	1,317
Investments	2,123
Receivables	7
Intangibles	416
Total assets	3,863
Accounts payable and accrued expenses	6
Total liabilities	$ 6

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

ASSETS [Abstract]

LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]

$ 33,102

$ 18,951

Investments

228,961

246,892

Other assets

3,245

975

Total assets

319,381

320,177

Deferred tax liability, net

7,164

Junior subordinated debentures

41,238

Total liabilities

218,454

214,441

Shareholders' equity

100,927

105,736

96,277

Total liabilities and shareholders' equity

319,381

320,177

REVENUE [Abstract]

Other

189

147

Total revenue

165,369

139,828

INTEREST EXPENSE

1,898

2,632

INCOME TAX BENEFIT

(184)

(646)

CASH FLOWS FROM OPERATING ACTIVITIES [Abstract]

11,022

4,436

Adjustments to reconcile net income to net cash provided by operating activities [Abstract]

11,022

4,436

Realized investment gains, net

(8,741)

(1,434)

Depreciation and amortization

600

469

Compensation expense related to share awards

219

Deferred income tax benefit

(329)

(97)

Increase (decrease) in other liabilities

2,292

(1,376)

Other, net

(233)

Net cash provided by operating activities

13,020

6,115

CASH FLOWS FROM INVESTING ACTIVITIES [Abstract]

Proceeds from investments sold, called or matured

11,414

14,455

Investments purchased

(112,466)

(44,403)

Additions to property and equipment

(1,338)

(169)

Net cash provided by (used in) investing activities

3,815

(5,638)

CASH FLOWS FROM FINANCING ACTIVITIES [Abstract]

Redemption of Series D preferred stock

(500)

Payment of dividends on Series D Preferred Stock

(483)

(1,015)

Payment of dividends on common stock

(423)

(1,486)

Proceeds from shares issued under stock plans

138

297

Purchase of shares for treasury

(1,416)

(607)

Net cash used in financing activities

(2,684)

(2,811)

Net increase (decrease) in cash

14,151

(2,334)

Cash and cash equivalents at beginning of year

18,951

21,285

Cash and cash equivalents at end of year

33,102

18,951

Supplemental disclosure [Abstract]

Cash paid for interest

1,961

2,636

Cash paid for income taxes

536

405

Parent Company [Member]

ASSETS [Abstract]

Investment in subsidiaries

13,936

13,306

Investments

18,043

14,122

105,268

124,904

Investments in unconsolidated trusts

1,238

Income taxes receivable from subsidiaries

4,530

1,989

Other assets

2,676

559

Total assets

145,691

156,118

LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]

Deferred tax liability, net

297

7,824

Other payables

3,229

1,320

Junior subordinated debentures

41,238

Total liabilities

44,764

50,382

Shareholders' equity

100,927

105,736

Total liabilities and shareholders' equity

145,691

156,118

REVENUE [Abstract]

Fee income from subsidiaries

6,271

5,605

Distributed earnings from subsidiaries

6,646

7,350

Other

1,330

844

Total revenue

14,247

13,799

GENERAL AND ADMINISTRATIVE EXPENSES

11,106

9,659

INTEREST EXPENSE

1,898

2,632

Earnings before tax and equity in undistributed earnings (losses) of subsidiaries

1,243

1,508

INCOME TAX BENEFIT

(4,504)

^[1]

(1,766)

^[1]

Earnings after tax but before equity in undistributed earnings (losses) of subsidiaries

5,747

3,274

EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET

5,275

1,162

CASH FLOWS FROM OPERATING ACTIVITIES [Abstract]

11,022

4,436

Adjustments to reconcile net income to net cash provided by operating activities [Abstract]

11,022

4,436

Realized investment gains, net

(644)

Depreciation and amortization

117

Compensation expense related to share awards

219

Equity in undistributed earnings of consolidated subsidiaries

(5,275)

(1,162)

(Increase) decrease in intercompany taxes

(2,541)

463

Deferred income tax benefit

(329)

(97)

Increase (decrease) in other liabilities

846

(746)

Other, net

161

(251)

Net cash provided by operating activities

3,576

2,718

CASH FLOWS FROM INVESTING ACTIVITIES [Abstract]

Proceeds from investments sold, called or matured

5,568

Investments purchased

(4,438)

Capital contribution to subsidiaries

(200)

Additions to property and equipment

(1,192)

(166)

Net cash provided by (used in) investing activities

(262)

(366)

CASH FLOWS FROM FINANCING ACTIVITIES [Abstract]

Redemption of Series D preferred stock

(500)

Payment of dividends on Series D Preferred Stock

(483)

(1,015)

Payment of dividends on common stock

(423)

(1,486)

Proceeds from shares issued under stock plans

138

297

Purchase of shares for treasury

(1,416)

(607)

Net cash used in financing activities

(2,684)

(2,811)

Net increase (decrease) in cash

630

(459)

Cash and cash equivalents at beginning of year

13,306

13,765

Cash and cash equivalents at end of year

13,936

13,306

Supplemental disclosure [Abstract]

Cash paid for interest

1,961

2,636

Cash paid for income taxes

536

405

Intercompany tax settlement from subsidiaries

$ 2,574

$ 2,132

[1]

Schedule III SUPPLEMENTARY INSURANCE INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Supplementary Insurance Information, by Segment [Line Items]

Deferred Acquisition Costs

$ 27,509

$ 26,133

Future Policy Benefits, Losses, Claims and Loss Reserves

132,882

^[1]

129,805

^[2]

Unearned Premiums

27,415

22,637

Other Policy Claims and Benefits Payable

2,076

2,116

Liability for future policy benefits

69,864

66,932

Losses and claims

63,018

62,873

145,630

126,743

10,335

11,310

100,372

89,817

8,960

10,451

44,831

34,478

Supplementary Insurance Information, by Segment [Line Items]

50,774

36,182

Bankers Fidelity [Member]

Deferred Acquisition Costs

24,275

22,864

Future Policy Benefits, Losses, Claims and Loss Reserves

81,682

77,041

Unearned Premiums

4,419

4,564

Other Policy Claims and Benefits Payable

2,076

2,116

99,779

89,272

5,466

6,032

70,175

62,480

1,820

1,677

28,812

24,098

Supplementary Insurance Information, by Segment [Line Items]

American Southern [Member]

Deferred Acquisition Costs

3,234

3,269

Future Policy Benefits, Losses, Claims and Loss Reserves

51,200

52,764

Unearned Premiums

22,996

18,073

Other Policy Claims and Benefits Payable

45,851

37,471

4,288

4,529

30,197

27,337

7,140

8,774

8,971

3,478

Supplementary Insurance Information, by Segment [Line Items]

50,774

36,182

Other [Member]

581

749

7,048

6,902