View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 24, 2020
Cover [Abstract]
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Central Index Key	0000008177
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		20,454,001
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Address, State or Province	GA

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 16,354	$ 12,893
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $214,080 and $219,233)	236,187	232,472
Equity securities, at fair value (cost: $7,311 and $7,168)	15,965	22,922
Other invested assets (cost: $11,905 and $9,908)	11,454	9,960
Policy loans	2,018	2,007
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	266,900	268,637
Receivables:
Reinsurance	27,562	32,135
Insurance premiums and other (net of allowance for doubtful accounts: $197 and $183)	23,785	13,134
Deferred income taxes, net	1,144	314
Deferred acquisition costs	39,148	38,861
Other assets	8,300	9,108
Intangibles	2,544	2,544
Total assets	385,737	377,626
LIABILITIES AND SHAREHOLDERS' EQUITY
Future policy benefits	91,927	92,490
Unearned premiums	35,091	26,035
Losses and claims	76,498	81,448
Other policy liabilities	1,195	1,933
Total insurance reserves and policyholder funds	204,711	201,906
Accounts payable and accrued expenses	23,394	23,588
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	261,843	259,232
Commitments and contingencies (Note 10)
Shareholders' equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value	55	55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,454,001 and 20,472,162	22,401	22,401
Additional paid-in capital	57,435	57,820
Retained earnings	34,266	36,020
Accumulated other comprehensive income	17,464	10,459
Unearned stock grant compensation	(466)	(781)
Treasury stock, at cost: 1,946,893 and 1,928,732 shares	(7,261)	(7,580)
Total shareholders' equity	123,894	118,394
Total liabilities and shareholders' equity	$ 385,737	$ 377,626

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investments:
Fixed maturities, cost	$ 214,080	$ 219,233
Equity securities, cost	7,311	7,168
Other invested assets, cost	11,905	9,908
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 197	$ 183
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	55,000	55,000
Preferred stock, shares outstanding (in shares)	55,000	55,000
Preferred stock, redemption value	$ 5,500	$ 5,500
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	22,400,894	22,400,894
Common stock, shares outstanding (in shares)	20,454,001	20,472,162
Treasury stock, at cost (in shares)	1,946,893	1,928,732

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Insurance premiums, net	$ 46,499	$ 45,469	$ 92,049	$ 90,251
Net investment income	1,850	2,313	3,889	4,647
Realized investment gains, net	0	610	249	1,995
Unrealized gains (losses) on equity securities, net	1,355	(5,337)	(7,100)	1,152
Other income	33	72	60	100
Total revenue	49,737	43,127	89,147	98,145
Benefits and expenses:
Insurance benefits and losses incurred	27,076	34,151	60,659	69,458
Commissions and underwriting expenses	10,854	11,509	23,480	22,524
Interest expense	414	545	890	1,091
Other expense	3,112	2,511	6,064	5,376
Total benefits and expenses	41,456	48,716	91,093	98,449
Income (loss) before income taxes	8,281	(5,589)	(1,946)	(304)
Income tax expense (benefit)	1,749	(1,163)	(391)	(40)
Net income (loss)	6,532	(4,426)	(1,555)	(264)
Preferred stock dividends	(100)	(100)	(199)	(199)
Net income (loss) applicable to common shareholders	$ 6,432	$ (4,526)	$ (1,754)	$ (463)
Earnings (loss) per common share (basic) (in dollars per share)	$ 0.31	$ (0.22)	$ (0.09)	$ (0.02)
Earnings (loss) per common share (diluted) (in dollars per share)	$ 0.30	$ (0.22)	$ (0.09)	$ (0.02)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income (loss)	$ 6,532	$ (4,426)	$ (1,555)	$ (264)
Available-for-sale fixed maturity securities:
Gross unrealized holding gain arising in the period	19,997	7,964	9,117	16,404
Related income tax effect	(4,200)	(1,673)	(1,915)	(3,445)
Subtotal	15,797	6,291	7,202	12,959
Less: reclassification adjustment for net realized gains included in net income (loss)	0	(610)	(249)	(882)
Related income tax effect	0	128	52	185
Subtotal	0	(482)	(197)	(697)
Total other comprehensive income, net of tax	15,797	5,809	7,005	12,262
Total comprehensive income	$ 22,329	$ 1,383	$ 5,450	$ 11,998

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2018	$ 55	$ 22,401	$ 57,414	$ 37,208	$ (7,535)	$ (186)	$ (7,985)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(264)				$ (264)
Other comprehensive income, net of tax					12,262			12,262
Dividends on common stock				(403)
Dividends accrued on preferred stock				(199)
Restricted stock grants, net of forfeitures			24			(71)	47
Amortization of unearned compensation						107
Purchase of shares for treasury							(71)
Net shares acquired related to employee share-based compensation plans							(49)
Issuance of shares under stock plans			6				9
Balance, end of period at Jun. 30, 2019	55	22,401	57,444	36,342	4,727	(150)	(8,049)	$ 112,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ (0.02)
Balance, beginning of period at Mar. 31, 2019	55	22,401	57,417	40,868	(1,082)	(128)	(8,044)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(4,426)				$ (4,426)
Other comprehensive income, net of tax					5,809			5,809
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			24			(71)	47
Amortization of unearned compensation						49
Purchase of shares for treasury							(22)
Net shares acquired related to employee share-based compensation plans							(35)
Issuance of shares under stock plans			3				5
Balance, end of period at Jun. 30, 2019	55	22,401	57,444	36,342	4,727	(150)	(8,049)	$ 112,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0
Balance, beginning of period at Dec. 31, 2019	55	22,401	57,820	36,020	10,459	(781)	(7,580)	$ 118,394
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,555)				(1,555)
Other comprehensive income, net of tax					7,005			7,005
Dividends on common stock				0
Dividends accrued on preferred stock				(199)
Restricted stock grants, net of forfeitures			(377)			61	316
Amortization of unearned compensation						254
Purchase of shares for treasury							0
Net shares acquired related to employee share-based compensation plans							(10)
Issuance of shares under stock plans			(8)				13
Balance, end of period at Jun. 30, 2020	55	22,401	57,435	34,266	17,464	(466)	(7,261)	$ 123,894
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0
Balance, beginning of period at Mar. 31, 2020	55	22,401	57,777	27,834	1,667	(584)	(7,632)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				6,532				$ 6,532
Other comprehensive income, net of tax					15,797			15,797
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			(333)			(37)	370
Amortization of unearned compensation						155
Purchase of shares for treasury							0
Net shares acquired related to employee share-based compensation plans							(10)
Issuance of shares under stock plans			(9)				11
Balance, end of period at Jun. 30, 2020	$ 55	$ 22,401	$ 57,435	$ 34,266	$ 17,464	$ (466)	$ (7,261)	$ 123,894
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock (in dollars per share)								$ 0

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury shares purchased (in shares)	0	26,210

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,555)	$ (264)
Adjustments to reconcile loss to net cash used in operating activities:
Additions to acquisition costs, net	(287)	(1,050)
Realized investment gains, net	(249)	(1,995)
Unrealized losses (gains) on equity securities, net	7,100	(1,152)
Distributions received from equity method investees	0	106
Compensation expense related to share awards	254	107
Depreciation and amortization	503	337
Deferred income tax benefit	(2,693)	(612)
Increase in receivables, net	(6,078)	(13,393)
Increase in insurance reserves and policyholder funds	2,805	13,493
(Decrease) increase in accounts payable and accrued expenses	(393)	2,366
Other, net	1,151	(5,162)
Net cash provided by (used in) operating activities	558	(7,219)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	7,448	70,171
Proceeds from investments matured, called or redeemed	3,031	3,628
Investments purchased	(7,411)	(67,220)
Additions to property and equipment	(160)	(32)
Net cash provided by investing activities	2,908	6,547
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	0	(403)
Proceeds from shares issued under stock plans	5	15
Treasury stock acquired - share repurchase authorization	0	(71)
Treasury stock acquired - net employee share-based compensation	(10)	(49)
Net cash used in financing activities	(5)	(508)
Net increase (decrease) in cash and cash equivalents	3,461	(1,180)
Cash and cash equivalents at beginning of period	12,893	12,630
Cash and cash equivalents at end of period	16,354	11,450
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	944	1,100
Cash paid for income taxes	$ 0	$ 850

Basis of Presentation

6 Months Ended

Jun. 30, 2020

Basis of Presentation [Abstract]

Basis of Presentation

Note 1.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Atlantic American Corporation (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month and six month periods ended June 30, 2020 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2020 or for any other future period.

The Company’s significant accounting policies have not changed materially from those set out in the 2019 Annual Report, except as noted below for the adoption of new accounting standards.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

On March 11, 2020, the World Health Organization declared the Novel Coronavirus (“COVID-19”) outbreak a global pandemic. The impact of COVID-19 and related actions to attempt to control its spread began to impact the Company’s business operations in March 2020, and we expect that the pandemic, actions that have been or will be taken in response to it and its overall impact on the economy, will continue to have an effect on our business operations and our operating results. The Company’s insurance subsidiaries may experience difficulties collecting premiums from some policyholders, and policyholders with financial difficulties may decide not to renew insurance policies with the Company. Although it cannot be predicted with certainty at this time, the Company’s insurance subsidiaries do not expect a direct material impact from the outbreak of COVID-19 in terms of increased claims and losses, but that may change as more information becomes available. In addition, economic uncertainty related to COVID-19 has led to a decline in the investment markets, and may continue to create increased volatility. The impact of COVID-19 on the economy and on the Company is evolving and its future effects are uncertain. The Company is closely monitoring the effects and risks of COVID-19 to assess its impact on the Company’s business, financial condition, results of operations, liquidity and capital position.

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is intended to provide fast and direct economic assistance for American workers and families, small businesses, and to preserve jobs in American industries. The CARES Act includes, among other things, provisions relating to payroll tax credits and deferrals, net operating loss carryback periods, alternative minimum tax credits and technical corrections to tax depreciation methods for qualified improvement property. The Company does not qualify as a small business under the CARES Act and therefore did not apply for any of the government loan programs; however, the Company intends to monitor and assess the availability of resources and other benefits that might be available to the Company under the CARES Act and through other programs.

Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2020

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

Note 2.

Recently Issued Accounting Standards

Adoption of New Accounting Standards

Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This guidance removes the following disclosure requirements from Topic 820: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. This disclosure also includes the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements.

Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 is intended to simplify the evaluation of goodwill. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under the prior accounting guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company adopted ASU 2017-04 as of January 1, 2020. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements.

Future Adoption of New Accounting Standards

Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to investments, derivatives, or other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Along with the optional expedients, the amendments include a general principle that permits an entity to consider contract modifications due to reference reform to be an event that does not require contract re-measurement at the modification date or reassessment of a previous accounting determination. Additionally, a company may make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. This standard may be elected over time through December 31, 2022 as reference rate reform activities occur. The Company is currently assessing the effect of adopting this guidance on its financial condition and results of operations.

Investments – Equity Securities. In January 2020, the FASB issued ASU No. 2020-01 (“ASU 2020-01”) Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This update, among others, clarifies the interaction of the accounting for equity securities under Topic 321 and investments under the equity method of accounting in Topic 323 when there is a change in level of ownership or degree of influence. ASU 2020-01 is effective for the Company beginning with the first quarter of 2021 and will be applied prospectively. Early adoption is permitted. This guidance is not expected to have a material impact on the Company’s consolidated financial statements.

For more information regarding other accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2019 Annual Report.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=112272810&loc=SL108384541-122693

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=112272810&loc=d3e31137-122693

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)

+ Details

Investments

6 Months Ended

Jun. 30, 2020

Investments [Abstract]

Investments

Note 3.

Investments

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of June 30, 2020 and December 31, 2019.

Fixed maturities were comprised of the following:

	June 30, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	20,461	$	1,739	$	25	$	18,747
Obligations of states and political subdivisions		11,520		910		-		10,610
Corporate securities:
Utilities and telecom		28,886		4,118		-		24,768
Financial services		73,151		6,050		132		67,233
Other business – diversified		41,739		3,331		945		39,353
Other consumer – diversified		60,180		7,407		404		53,177
Total corporate securities		203,956		20,906		1,481		184,531
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	236,187	$	23,613	$	1,506	$	214,080

	December 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	20,259	$	467	$	53	$	19,845
Obligations of states and political subdivisions		11,940		371		53		11,622
Corporate securities:
Utilities and telecom		26,648		2,404		32		24,276
Financial services		73,917		4,249		57		69,725
Other business – diversified		41,706		2,335		98		39,469
Other consumer – diversified		57,752		3,702		54		54,104
Total corporate securities		200,023		12,690		241		187,574
Redeemable preferred stocks:
Other consumer – diversified		250		58		-		192
Total redeemable preferred stocks		250		58		-		192
Total fixed maturities	$	232,472	$	13,586	$	347	$	219,233

Bonds having an amortized cost of $10,444 and $10,669 and included in the tables above were on deposit with insurance regulatory authorities as of June 30, 2020 and December 31, 2019, respectively, in accordance with statutory requirements.

Equity securities were comprised of the following:

	June 30, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	3,061	$	384	$	1	$	2,678
Other business – diversified		12,904		8,271		-		4,633
Total equity securities	$	15,965	$	8,655	$	1	$	7,311

	December 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	3,159	$	624	$	-	$	2,535
Other business – diversified		19,763		15,130		-		4,633
Total equity securities	$	22,922	$	15,754	$	-	$	7,168

The carrying value and amortized cost of the Company’s investments in fixed maturities at June 30, 2020 and December 31, 2019 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.

	June 30, 2020				December 31, 2019
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	509	$	500	$	-	$	-
Due after one year through five years		19,923		19,012		14,664		14,280
Due after five years through ten years		85,121		78,583		77,934		73,521
Due after ten years		122,141		107,964		130,680		122,321
Asset backed securities		8,493		8,021		9,194		9,111
Totals	$	236,187	$	214,080	$	232,472	$	219,233

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of June 30, 2020 and December 31, 2019.

	June 30, 2020
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	887	$	25	$	-	$	-	$	887	$	25
Corporate securities		22,512		1,481		-		-		22,512		1,481
Total temporarily impaired securities	$	23,399	$	1,506	$	-	$	-	$	23,399	$	1,506

	December 31, 2019
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	3,432	$	22	$	3,533	$	31	$	6,965	$	53
Obligations of states and political subdivisions		3,106		53		-		-		3,106		53
Corporate securities		23,245		145		2,504		96		25,749		241
Total temporarily impaired securities	$	29,783	$	220	$	6,037	$	127	$	35,820	$	347

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

There were no OTTI charges recorded during the three month and six month periods ended June 30, 2020 and 2019.

As of June 30, 2020 and December 31, 2019, there were seventeen and thirty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The decrease in the number of securities in an unrealized loss position during the six month period ended June 30, 2020, was primarily attributable to improvement in market values in certain of the Company’s fixed maturity securities as a result of a declining interest rate environment. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of June 30, 2020.

There were no realized investments gains (losses) in the three month period ended June 30, 2020. The following tables summarize realized investment gains (losses) for the three month period ended June 30, 2019 and the six month periods ended June 30, 2020 and June 30, 2019.

	Three Months Ended June 30, 2019
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	610	$	—	$	—	$	610
Losses		—		—		—		—
Realized investment gains, net	$	610	$	—	$	—	$	610

	Six Months Ended June 30, 2020
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	249	$	—	$	—	$	249
Losses		—		—		—		—
Realized investment gains, net	$	249	$	—	$	—	$	249

	Six Months Ended June 30, 2019
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	882	$	1,113	$	—	$	1,995
Losses		—		—		—		—
Realized investment gains, net	$	882	$	1,113	$	—	$	1,995

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and six month periods ended June 30, 2020 and 2019.

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	1,355	$	(5,337	)	$	(7,100	)	$	2,265
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		-		-			-			1,113
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$	1,355	$	(5,337	)	$	(7,100	)	$	1,152

Variable Interest Entities

The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested assets, totaled $11,454 and $9,960 as of June 30, 2020 and December 31, 2019, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of June 30, 2020 and December 31, 2019.

The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $12,692 and $11,198, as of June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020, the Company had no outstanding commitments and as of December 31, 2019, the Company had outstanding commitments totaling $1,997, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

Note 4.

Fair Values of Financial Instruments

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

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

Level 1

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

Level 2

Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly most of its fixed maturities, which consist of U.S. Treasury securities, U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers. Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize models where the significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.

Level 3

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability.

As of June 30, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	250	$	235,937	$	—	$	236,187
Equity securities		15,822		—		143		15,965
Cash equivalents		8,429		—		—		8,429
Total	$	24,501	$	235,937	$	143	$	260,581

As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	232,472	$	—	$	232,472
Equity securities		22,922		—		—		22,922
Cash equivalents		7,173		—		—		7,173
Total	$	30,095	$	232,472	$	—	$	262,567

The Company does not have any fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2020 and December 31, 2019.

The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of June 30, 2020 and December 31, 2019.

			June 30, 2020				December 31, 2019
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	16,354	$	16,354	$	12,893	$	12,893
Fixed maturities		⁽¹⁾		236,187		236,187		232,472		232,472
Equity securities		⁽¹⁾		15,965		15,965		22,922		22,922
Other invested assets	Level 3			11,454		11,454		9,960		9,960
Policy loans	Level 2			2,018		2,018		2,007		2,007
Real estate	Level 2			38		38		38		38
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		30,321		33,738		35,977

⁽¹⁾

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

- Definition

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.

+ References + Details

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2020

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

Note 5.

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses for the six months ended June 30, 2020 and 2019 is as follows:

	Six Months Ended June 30,
	2020			2019
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	81,448		$	72,612
Less: Reinsurance recoverable on unpaid losses		(18,339	)		(14,354	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		63,109			58,258

Incurred related to:
Current accident year		62,262			68,157

Prior accident year development ⁽¹⁾		(2,302	)⁽²⁾		103
Total incurred		59,960			68,260

Paid related to:
Current accident year		33,911			38,875
Prior accident years		29,587			28,576
Total paid		63,498			67,451
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		59,571			59,067
Plus: Reinsurance recoverable on unpaid losses		16,927			16,088
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	76,498		$	75,155

⁽¹⁾

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

⁽²⁾

Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity.

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

	Six Months Ended June 30,
	2020		2019
Total incurred losses	$	59,960	$	68,260
Cash surrender value and matured endowments		697		588
Benefit reserve changes		2		610
Total insurance benefits and losses incurred	$	60,659	$	69,458

Junior Subordinated Debentures

6 Months Ended

Jun. 30, 2020

Junior Subordinated Debentures [Abstract]

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 those activities necessary or incidental thereto.

The financial structure of each of Atlantic American Statutory Trust I and II as of June 30, 2020 was as follows:

	Atlantic American Statutory Trust I			Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed June 30, 2020	$	18,042		$	23,196
Less: Treasury debt ⁽³⁾		—			(7,500	)
Net balance June 30, 2020	$	18,042		$	15,696
Net balance December 31, 2019	$	18,042		$	15,696
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Interest payable	Quarterly			Quarterly
Maturity date	December 4, 2032			May 15, 2033
Redeemable by issuer	Yes			Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002			May 15, 2003
Securities issued		17,500			22,500
Liquidation preference per security	$	1		$	1
Liquidation value	$	17,500		$	22,500
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Distribution payable	Quarterly			Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation			Atlantic American Corporation

⁽¹⁾

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

⁽²⁾	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

⁽³⁾	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.

⁽⁴⁾	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share

6 Months Ended

Jun. 30, 2020

Earnings (Loss) Per Common Share [Abstract]

Earnings (Loss) Per Common Share

Note 7.

Earnings (Loss) Per Common Share

A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:

	Three Months Ended June 30, 2020
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	6,532			20,440
Less preferred stock dividends		(100	)	—
Net income applicable to common shareholders		6,432			20,440	$	.31
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		100			1,378
Net income applicable to common shareholders	$	6,532			21,818	$	.30

	Three Months Ended June 30, 2019
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(4,426	)		20,146
Less preferred stock dividends		(100	)		—
Net loss applicable to common shareholders	$	(4,526	)		20,146	$	(.22	)

	Six Months Ended June 30, 2020
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,555	)		20,455
Less preferred stock dividends		(199	)		—
Net loss applicable to common shareholders	$	(1,754	)		20,455	$	(.09	)

	Six Months Ended June 30, 2019
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(264	)		20,152
Less preferred stock dividends		(199	)		—
Net loss applicable to common shareholders	$	(463	)		20,152	$	(.02	)

The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings (loss) per common share calculation for all periods presented, except for the three month period ended June 30, 2020, since its impact would have been antidilutive.

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Taxes [Abstract]

Income Taxes

Note 8.

Income Taxes

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Federal income tax provision at statutory rate of 21%	$	1,739		$	(1,174	)	$	(409	)	$	(64	)
Dividends-received deduction		(3	)		(5	)		(6	)		(14	)
Other permanent differences		13			16			24			38
Income tax expense (benefit)	$	1,749		$	(1,163	)	$	(391	)	$	(40	)

The components of income tax benefit were:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Current – Federal	$	2,173		$	572		$	2,302		$	572
Deferred – Federal		(424	)		(1,735	)		(2,693	)		(612	)
Total	$	1,749		$	(1,163	)	$	(391	)	$	(40	)

In addition, the Company determined there were no significant tax implications as a result of the CARES Act.

- Definition

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.

+ References + Details

Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Note 9.

Leases

The Company has identified two operating lease agreements, each for the use of office space in the ordinary course of business.

The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option for an additional eight years from the January 1, 2019 effective date of the new lease guidance. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the six months ended June 30, 2020 and June 30, 2019 was $507.

Additional information regarding the Company’s real estate operating leases is as follows:

	Six Months Ended June 30,
Other information on operating leases:	2020			2019
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	475		$	450
Right-of-use assets included in other assets on the condensed consolidated balance sheet		5,159			5,785
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	6.4 years			7.4 years

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2020	$	503
2021		1,015
2022		1,031
2023		1,048
2024		1,065
Thereafter		2,025
Total undiscounted lease payments		6,687
Less: present value adjustment		1,297
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	5,390

As of June 30, 2020, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 10.

Commitments and Contingencies

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 businesses. 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.

Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information [Abstract]

Segment Information

Note 11.

Segment Information

The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2020 and 2019.

Assets	June 30, 2020		December 31, 2019
American Southern	$	153,632	$	141,524
Bankers Fidelity		220,111		224,122
Corporate and Other		11,994		11,980
Total assets	$	385,737	$	377,626

Revenues	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
American Southern	$	16,896		$	15,740		$	32,123		$	30,975
Bankers Fidelity		32,871			31,244			57,744			65,620
Corporate and Other		(30	)		(3,857	)		(720	)		1,550
Total revenue	$	49,737		$	43,127		$	89,147		$	98,145

Income (Loss) Before Income Taxes	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
American Southern	$	2,087		$	1,396		$	2,965		$	3,378
Bankers Fidelity		8,039			(1,998	)		(742	)		(2,494	)
Corporate and Other		(1,845	)		(4,987	)		(4,169	)		(1,188	)
Income (loss) before income taxes	$	8,281		$	(5,589	)	$	(1,946	)	$	(304	)

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Related Party Transactions

6 Months Ended

Jun. 30, 2020

Related Party Transactions

Note 12.

Related Party Transactions

During the six month period ended June 30, 2019, the Company transferred its remaining fractional interest in an aircraft arrangement to Gray Television, Inc., a related party, for $151.

Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 13.

Subsequent Events

Since June 30, 2020, the COVID-19 pandemic continues to cause material disruption to financial markets and the economy. As a result of the pandemic, the Company could experience future losses in its investment portfolio as a result of the weakened and volatile markets. Additionally, the Company can experience increased risk of loss any time unforeseen infectious diseases impact large portions of a population. Specifically, the Company’s life and health business could experience significant loss due to increased claims volume arising from COVID-19. The duration and impact of the COVID-19 pandemic is unknown at this time and it is not possible to reliably estimate the impact on the financial condition, operating results or liquidity of the Company and its operating subsidiaries in future periods.

Recently Issued Accounting Standards (Policies)	6 Months Ended
Recently Issued Accounting Standards (Policies)	Jun. 30, 2020
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	Adoption of New Accounting Standards Fair Value Measurement – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This guidance removes the following disclosure requirements from Topic 820: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. This disclosure also includes the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 is intended to simplify the evaluation of goodwill. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under the prior accounting guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company adopted ASU 2017-04 as of January 1, 2020. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements. Future Adoption of New Accounting Standards Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to investments, derivatives, or other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Along with the optional expedients, the amendments include a general principle that permits an entity to consider contract modifications due to reference reform to be an event that does not require contract re-measurement at the modification date or reassessment of a previous accounting determination. Additionally, a company may make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. This standard may be elected over time through December 31, 2022 as reference rate reform activities occur. The Company is currently assessing the effect of adopting this guidance on its financial condition and results of operations. Investments – Equity Securities. In January 2020, the FASB issued ASU No. 2020-01 (“ASU 2020-01”) Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This update, among others, clarifies the interaction of the accounting for equity securities under Topic 321 and investments under the equity method of accounting in Topic 323 when there is a change in level of ownership or degree of influence. ASU 2020-01 is effective for the Company beginning with the first quarter of 2021 and will be applied prospectively. Early adoption is permitted. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. For more information regarding other accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2019 Annual Report.

Investments (Tables)

6 Months Ended

Jun. 30, 2020

Investments [Abstract]

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	June 30, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	20,461	$	1,739	$	25	$	18,747
Obligations of states and political subdivisions		11,520		910		-		10,610
Corporate securities:
Utilities and telecom		28,886		4,118		-		24,768
Financial services		73,151		6,050		132		67,233
Other business – diversified		41,739		3,331		945		39,353
Other consumer – diversified		60,180		7,407		404		53,177
Total corporate securities		203,956		20,906		1,481		184,531
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	236,187	$	23,613	$	1,506	$	214,080

	December 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	20,259	$	467	$	53	$	19,845
Obligations of states and political subdivisions		11,940		371		53		11,622
Corporate securities:
Utilities and telecom		26,648		2,404		32		24,276
Financial services		73,917		4,249		57		69,725
Other business – diversified		41,706		2,335		98		39,469
Other consumer – diversified		57,752		3,702		54		54,104
Total corporate securities		200,023		12,690		241		187,574
Redeemable preferred stocks:
Other consumer – diversified		250		58		-		192
Total redeemable preferred stocks		250		58		-		192
Total fixed maturities	$	232,472	$	13,586	$	347	$	219,233

Equity securities were comprised of the following:

	June 30, 2020
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	3,061	$	384	$	1	$	2,678
Other business – diversified		12,904		8,271		-		4,633
Total equity securities	$	15,965	$	8,655	$	1	$	7,311

	December 31, 2019
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	3,159	$	624	$	-	$	2,535
Other business – diversified		19,763		15,130		-		4,633
Total equity securities	$	22,922	$	15,754	$	-	$	7,168

Amortized Cost and Carrying Value of Fixed Maturities by Contractual Maturity

	June 30, 2020				December 31, 2019
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	509	$	500	$	-	$	-
Due after one year through five years		19,923		19,012		14,664		14,280
Due after five years through ten years		85,121		78,583		77,934		73,521
Due after ten years		122,141		107,964		130,680		122,321
Asset backed securities		8,493		8,021		9,194		9,111
Totals	$	236,187	$	214,080	$	232,472	$	219,233

Investment Securities with Continuous Unrealized Loss Position

	June 30, 2020
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	887	$	25	$	-	$	-	$	887	$	25
Corporate securities		22,512		1,481		-		-		22,512		1,481
Total temporarily impaired securities	$	23,399	$	1,506	$	-	$	-	$	23,399	$	1,506

	December 31, 2019
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	3,432	$	22	$	3,533	$	31	$	6,965	$	53
Obligations of states and political subdivisions		3,106		53		-		-		3,106		53
Corporate securities		23,245		145		2,504		96		25,749		241
Total temporarily impaired securities	$	29,783	$	220	$	6,037	$	127	$	35,820	$	347

Summary of Realized Investment Gains (Losses)

The following tables summarize realized investment gains (losses) for the three month period ended June 30, 2019 and the six month periods ended June 30, 2020 and June 30, 2019.

	Three Months Ended June 30, 2019
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	610	$	—	$	—	$	610
Losses		—		—		—		—
Realized investment gains, net	$	610	$	—	$	—	$	610

	Six Months Ended June 30, 2020
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	249	$	—	$	—	$	249
Losses		—		—		—		—
Realized investment gains, net	$	249	$	—	$	—	$	249

	Six Months Ended June 30, 2019
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	882	$	1,113	$	—	$	1,995
Losses		—		—		—		—
Realized investment gains, net	$	882	$	1,113	$	—	$	1,995

Unrealized Gains (Losses) on Equity Securities

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month and six month periods ended June 30, 2020 and 2019.

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	1,355	$	(5,337	)	$	(7,100	)	$	2,265
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period		-		-			-			1,113
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$	1,355	$	(5,337	)	$	(7,100	)	$	1,152

Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair Values of Financial Instruments [Abstract]

Financial Instruments Carried at Fair Value Measured on a Recurring Basis

As of June 30, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	250	$	235,937	$	—	$	236,187
Equity securities		15,822		—		143		15,965
Cash equivalents		8,429		—		—		8,429
Total	$	24,501	$	235,937	$	143	$	260,581

As of December 31, 2019, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	232,472	$	—	$	232,472
Equity securities		22,922		—		—		22,922
Cash equivalents		7,173		—		—		7,173
Total	$	30,095	$	232,472	$	—	$	262,567

Carrying Amount, Estimated Fair Value and Level within the Fair Value Hierarchy of Financial Instruments

The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial instruments as of June 30, 2020 and December 31, 2019.

			June 30, 2020				December 31, 2019
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	16,354	$	16,354	$	12,893	$	12,893
Fixed maturities		⁽¹⁾		236,187		236,187		232,472		232,472
Equity securities		⁽¹⁾		15,965		15,965		22,922		22,922
Other invested assets	Level 3			11,454		11,454		9,960		9,960
Policy loans	Level 2			2,018		2,018		2,007		2,007
Real estate	Level 2			38		38		38		38
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		30,321		33,738		35,977

⁽¹⁾

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

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2020

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses for the six months ended June 30, 2020 and 2019 is as follows:

	Six Months Ended June 30,
	2020			2019
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	81,448		$	72,612
Less: Reinsurance recoverable on unpaid losses		(18,339	)		(14,354	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		63,109			58,258

Incurred related to:
Current accident year		62,262			68,157

Prior accident year development ⁽¹⁾		(2,302	)⁽²⁾		103
Total incurred		59,960			68,260

Paid related to:
Current accident year		33,911			38,875
Prior accident years		29,587			28,576
Total paid		63,498			67,451
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		59,571			59,067
Plus: Reinsurance recoverable on unpaid losses		16,927			16,088
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	76,498		$	75,155

⁽¹⁾

⁽²⁾

Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity.

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

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

	Six Months Ended June 30,
	2020		2019
Total incurred losses	$	59,960	$	68,260
Cash surrender value and matured endowments		697		588
Benefit reserve changes		2		610
Total insurance benefits and losses incurred	$	60,659	$	69,458

Junior Subordinated Debentures (Tables)

6 Months Ended

Jun. 30, 2020

Junior Subordinated Debentures [Abstract]

Financial Structure of Statutory Business Trusts

The financial structure of each of Atlantic American Statutory Trust I and II as of June 30, 2020 was as follows:

	Atlantic American Statutory Trust I			Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed June 30, 2020	$	18,042		$	23,196
Less: Treasury debt ⁽³⁾		—			(7,500	)
Net balance June 30, 2020	$	18,042		$	15,696
Net balance December 31, 2019	$	18,042		$	15,696
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Interest payable	Quarterly			Quarterly
Maturity date	December 4, 2032			May 15, 2033
Redeemable by issuer	Yes			Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002			May 15, 2003
Securities issued		17,500			22,500
Liquidation preference per security	$	1		$	1
Liquidation value	$	17,500		$	22,500
Coupon rate	LIBOR + 4.00		%	LIBOR + 4.10		%
Distribution payable	Quarterly			Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation			Atlantic American Corporation

⁽¹⁾

⁽²⁾	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

⁽³⁾	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.

⁽⁴⁾	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings (Loss) Per Common Share [Abstract]

Reconciliation of Numerator and Denominator used in Earnings (Loss) per Common Share Calculations

A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:

	Three Months Ended June 30, 2020
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	6,532			20,440
Less preferred stock dividends		(100	)	—
Net income applicable to common shareholders		6,432			20,440	$	.31
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		100			1,378
Net income applicable to common shareholders	$	6,532			21,818	$	.30

	Three Months Ended June 30, 2019
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(4,426	)		20,146
Less preferred stock dividends		(100	)		—
Net loss applicable to common shareholders	$	(4,526	)		20,146	$	(.22	)

	Six Months Ended June 30, 2020
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,555	)		20,455
Less preferred stock dividends		(199	)		—
Net loss applicable to common shareholders	$	(1,754	)		20,455	$	(.09	)

	Six Months Ended June 30, 2019
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(264	)		20,152
Less preferred stock dividends		(199	)		—
Net loss applicable to common shareholders	$	(463	)		20,152	$	(.02	)

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2020

Income Taxes [Abstract]

Reconciliation of Income Tax Expense (Benefit)

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Federal income tax provision at statutory rate of 21%	$	1,739		$	(1,174	)	$	(409	)	$	(64	)
Dividends-received deduction		(3	)		(5	)		(6	)		(14	)
Other permanent differences		13			16			24			38
Income tax expense (benefit)	$	1,749		$	(1,163	)	$	(391	)	$	(40	)

Components of Income Tax Expense

The components of income tax benefit were:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Current – Federal	$	2,173		$	572		$	2,302		$	572
Deferred – Federal		(424	)		(1,735	)		(2,693	)		(612	)
Total	$	1,749		$	(1,163	)	$	(391	)	$	(40	)

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Additional Information of Operating Leases

Additional information regarding the Company’s real estate operating leases is as follows:

	Six Months Ended June 30,
Other information on operating leases:	2020			2019
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	475		$	450
Right-of-use assets included in other assets on the condensed consolidated balance sheet		5,159			5,785
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	6.4 years			7.4 years

Maturities and Present Value of Lease Liabilities

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2020	$	503
2021		1,015
2022		1,031
2023		1,048
2024		1,065
Thereafter		2,025
Total undiscounted lease payments		6,687
Less: present value adjustment		1,297
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	5,390

Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Information [Abstract]

Assets, Revenue and Income (Loss) Before Income Taxes for Each Business Unit

The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2020 and 2019.

Assets	June 30, 2020		December 31, 2019
American Southern	$	153,632	$	141,524
Bankers Fidelity		220,111		224,122
Corporate and Other		11,994		11,980
Total assets	$	385,737	$	377,626

Revenues	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
American Southern	$	16,896		$	15,740		$	32,123		$	30,975
Bankers Fidelity		32,871			31,244			57,744			65,620
Corporate and Other		(30	)		(3,857	)		(720	)		1,550
Total revenue	$	49,737		$	43,127		$	89,147		$	98,145

Income (Loss) Before Income Taxes	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
American Southern	$	2,087		$	1,396		$	2,965		$	3,378
Bankers Fidelity		8,039			(1,998	)		(742	)		(2,494	)
Corporate and Other		(1,845	)		(4,987	)		(4,169	)		(1,188	)
Income (loss) before income taxes	$	8,281		$	(5,589	)	$	(1,946	)	$	(304	)

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Jun. 30, 2020 Segment
Basis of Presentation [Abstract]
Number of business units	2

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 236,187	$ 232,472
Gross unrealized gains	23,613	13,586
Gross unrealized losses	1,506	347
Amortized cost	214,080	219,233
Estimated fair value	15,965	22,922
Gross unrealized gains	8,655	15,754
Gross unrealized losses	1	0
Cost	7,311	7,168
Amortized cost of bonds on deposit with insurance regulatory authorities	10,444	10,669
Fixed Maturities [Member] \| U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	20,461	20,259
Gross unrealized gains	1,739	467
Gross unrealized losses	25	53
Amortized cost	18,747	19,845
Fixed Maturities [Member] \| Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	11,520	11,940
Gross unrealized gains	910	371
Gross unrealized losses	0	53
Amortized cost	10,610	11,622
Fixed Maturities [Member] \| Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	203,956	200,023
Gross unrealized gains	20,906	12,690
Gross unrealized losses	1,481	241
Amortized cost	184,531	187,574
Fixed Maturities [Member] \| Corporate Securities [Member] \| Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	28,886	26,648
Gross unrealized gains	4,118	2,404
Gross unrealized losses	0	32
Amortized cost	24,768	24,276
Fixed Maturities [Member] \| Corporate Securities [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	73,151	73,917
Gross unrealized gains	6,050	4,249
Gross unrealized losses	132	57
Amortized cost	67,233	69,725
Fixed Maturities [Member] \| Corporate Securities [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	41,739	41,706
Gross unrealized gains	3,331	2,335
Gross unrealized losses	945	98
Amortized cost	39,353	39,469
Fixed Maturities [Member] \| Corporate Securities [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	60,180	57,752
Gross unrealized gains	7,407	3,702
Gross unrealized losses	404	54
Amortized cost	53,177	54,104
Fixed Maturities [Member] \| Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	250	250
Gross unrealized gains	58	58
Gross unrealized losses	0	0
Amortized cost	192	192
Fixed Maturities [Member] \| Redeemable Preferred Stocks [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	250	250
Gross unrealized gains	58	58
Gross unrealized losses	0	0
Amortized cost	192	192
Equity Securities [Member] \| Common and Non-redeemable Preferred Stocks [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	3,061	3,159
Gross unrealized gains	384	624
Gross unrealized losses	1	0
Cost	2,678	2,535
Equity Securities [Member] \| Common and Non-redeemable Preferred Stocks [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	12,904	19,763
Gross unrealized gains	8,271	15,130
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Carrying Value [Abstract]
Due in one year or less	$ 509	$ 0
Due after one year through five years	19,923	14,664
Due after five years through ten years	85,121	77,934
Due after ten years	122,141	130,680
Asset backed securities	8,493	9,194
Totals	236,187	232,472
Amortized Cost [Abstract]
Due in one year or less	500	0
Due after one year through five years	19,012	14,280
Due after five years through ten years	78,583	73,521
Due after ten years	107,964	122,321
Asset backed securities	8,021	9,111
Amortized cost	$ 214,080	$ 219,233

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) Securities	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) Securities	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 23,399		$ 23,399		$ 29,783
12 months or longer	0		0		6,037
Total	23,399		23,399		35,820
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,506		1,506		220
12 months or longer	0		0		127
Total	1,506		1,506		$ 347
Gross OTTI losses charged to realized gains	$ 0	$ 0	$ 0	$ 0
Number of securities in unrealized loss position \| Securities	17		17		30
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 887		$ 887		$ 3,432
12 months or longer	0		0		3,533
Total	887		887		6,965
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	25		25		22
12 months or longer	0		0		31
Total	25		25		53
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months					3,106
12 months or longer					0
Total					3,106
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months					53
12 months or longer					0
Total					53
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	22,512		22,512		23,245
12 months or longer	0		0		2,504
Total	22,512		22,512		25,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,481		1,481		145
12 months or longer	0		0		96
Total	$ 1,481		$ 1,481		$ 241

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Summary of realized investment gains (losses) [Abstract]
Gains		$ 610	$ 249	$ 1,995
Losses		0	0	0
Realized investment gains, net	$ 0	610	249	1,995
Fixed Maturities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains		610	249	882
Losses		0	0	0
Realized investment gains, net		610	249	882
Equity Securities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains		0	0	1,113
Losses		0	0	0
Realized investment gains, net		0	0	1,113
Other Invested Assets [Member]
Summary of realized investment gains (losses) [Abstract]
Gains		0	0	0
Losses		0	0	0
Realized investment gains, net		$ 0	$ 0	$ 0

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ 1,355	$ (5,337)	$ (7,100)	$ 2,265
Less: Net realized gains (losses) recognized during the period on equity securities sold during the period	0	0	0	1,113
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$ 1,355	$ (5,337)	$ (7,100)	$ 1,152

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 11,454	$ 9,960
Investment in unconsolidated trusts	1,238	1,238
VIE, Not Primary Beneficiary [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	11,454	9,960
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	12,692	11,198
Outstanding commitments	$ 0	$ 1,997

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 236,187	$ 232,472
Equity securities	15,965	22,922
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	236,187	232,472
Equity securities	15,965	22,922
Cash equivalents	8,429	7,173
Assets at fair value	260,581	262,567
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	250	0
Equity securities	15,822	22,922
Cash equivalents	8,429	7,173
Assets at fair value	24,501	30,095
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	235,937	232,472
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	235,937	232,472
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	143	0
Cash equivalents	0	0
Assets at fair value	$ 143	$ 0

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Assets [Abstract]

Fixed maturities

$ 236,187

$ 232,472

Equity securities

15,965

22,922

Carrying Amount [Member]

Assets [Abstract]

Fixed maturities

^[1]

236,187

232,472

Equity securities

^[1]

15,965

22,922

Carrying Amount [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

16,354

12,893

Carrying Amount [Member] | Level 2 [Member]

Assets [Abstract]

Policy loans

2,018

2,007

Real estate

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,738

Carrying Amount [Member] | Level 3 [Member]

Assets [Abstract]

Other invested assets

11,454

9,960

Estimated Fair Value [Member]

Assets [Abstract]

Fixed maturities

^[1]

236,187

232,472

Equity securities

^[1]

15,965

22,922

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

Assets [Abstract]

Cash and cash equivalents

16,354

12,893

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

Assets [Abstract]

Policy loans

2,018

2,007

Real estate

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

30,321

35,977

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

Assets [Abstract]

Other invested assets

$ 11,454

$ 9,960

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

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Jun. 30, 2020

Jun. 30, 2019

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Roll Forward]

Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross

$ 81,448

$ 72,612

Less: Reinsurance recoverable on unpaid losses

(18,339)

(14,354)

Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net

63,109

58,258

Incurred related to [Abstract]

Current accident year

62,262

68,157

Prior accident year development

^[1]

(2,302)

^[2]

103

Total incurred

59,960

68,260

Paid related to [Abstract]

Current accident year

33,911

38,875

Prior accident years

29,587

28,576

Total paid

63,498

67,451

Ending liabilities for unpaid losses, claims and loss adjustment expenses, net

$ 59,571

$ 59,067

59,571

59,067

Plus: Reinsurance recoverable on unpaid losses

16,927

16,088

16,927

16,088

Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross

76,498

75,155

76,498

75,155

Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]

Total incurred losses

59,960

68,260

Cash surrender value and matured endowments

697

588

Benefit reserve changes

610

Total insurance benefits and losses incurred

$ 27,076

$ 34,151

$ 60,659

$ 69,458

[1]

[2]

Prior years' development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity.

Junior Subordinated Debentures (Details)
$ / shares in Units, shares in Thousands, $ in Thousands

6 Months Ended

Jun. 30, 2020

USD ($)

Trust

Quarter

$ / shares

Debt Instruments [Abstract]

Number of Connecticut statutory business trusts | Trust

Financial structure of statutory business trusts [Abstract]

Net balance June 30, 2020

$ 33,738

Net balance December 31, 2019

$ 33,738

Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Number of consecutive quarters for which interest payments can be deferred | Quarter

Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Principal amount owed June 30, 2020

$ 18,042

^[1],[2]

Less: Treasury debt

^[1],[2],[3]

Net balance June 30, 2020

18,042

^[1],[2]

Net balance December 31, 2019

$ 18,042

^[1],[2]

Coupon rate

LIBOR + 4.00%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

Dec. 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]

Basis spread on variable rate

4.00%

Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member]

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.00%

Issuance date

Dec. 04, 2002

Securities issued (in shares) | shares

17,500

Liquidation preference per security (in dollars per share) | $ / shares

$ 1

Liquidation value

$ 17,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.00%

Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Principal amount owed June 30, 2020

$ 23,196

^[1],[2]

Less: Treasury debt

(7,500)

^[1],[2],[3]

Net balance June 30, 2020

15,696

^[1],[2]

Net balance December 31, 2019

$ 15,696

^[1],[2]

Coupon rate

LIBOR + 4.10%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

May 15, 2033

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member]

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.10%

Issuance date

May 15, 2003

Securities issued (in shares) | shares

22,500

Liquidation preference per security (in dollars per share) | $ / shares

$ 1

Liquidation value

$ 22,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

[1]	For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures' respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company's common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.
[2]	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.
[3]	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.
[4]	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income (Loss) [Abstract]
Net income (loss)	$ 6,532	$ (4,426)	$ (1,555)	$ (264)
Less: preferred stock dividends	(100)	(100)	(199)	(199)
Net income (loss) applicable to common shareholders	6,432	$ (4,526)	$ (1,754)	$ (463)
Diluted Earnings Per Common Share [Abstract]
Net income (loss) applicable to common shareholders, Diluted	$ 6,532
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic and Diluted (in shares)		20,146	20,455	20,152
Weighted average shares outstanding, Basic (in shares)	20,440
Weighted average shares outstanding, Diluted (in shares)	21,818
Per Share Amount [Abstract]
Net income (loss) applicable to common shareholders, Basic and Diluted (in dollars per share)		$ (0.22)	$ (0.09)	$ (0.02)
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ 0.31	(0.22)	(0.09)	(0.02)
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.30	$ (0.22)	$ (0.09)	$ (0.02)
Series D Preferred Stock [Member]
Diluted Earnings Per Common Share [Abstract]
Effect of Series D preferred stock	$ 100
Weighted Average Shares [Abstract]
Effect of Series D preferred stock (in shares)	1,378

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ 1,739	$ (1,174)	$ (409)	$ (64)
Dividends-received deduction	(3)	(5)	(6)	(14)
Other permanent differences	13	16	24	38
Income tax expense (benefit)	1,749	(1,163)	$ (391)	(40)
Federal statutory income tax rate			21.00%
Components of income tax expense [Abstract]
Current - Federal	2,173	572	$ 2,302	572
Deferred - Federal	(424)	(1,735)	(2,693)	(612)
Income tax expense (benefit)	$ 1,749	$ (1,163)	$ (391)	$ (40)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Leases (Details) $ in Thousands	6 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2020 USD ($) Lease	Jun. 30, 2019 USD ($)
Lease description [Abstract]
Number of operating lease agreements \| Lease	2
Lease expense	$ 507	$ 507
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	475	450
Right-of-use assets included in other assets on balance sheet	$ 5,159	$ 5,785
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	6 years 4 months 24 days	7 years 4 months 24 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssets
Maturities and present value of lease liabilities [Abstract]
Remainder of 2020	$ 503
2021	1,015
2022	1,031
2023	1,048
2024	1,065
Thereafter	2,025
Total undiscounted lease payments	6,687
Less: present value adjustment	1,297
Operating lease liability	$ 5,390
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
First Lease [Member]
Lease description [Abstract]
Renewal option period	8 years
Second Lease [Member]
Lease description [Abstract]
Renewal option period	7 years
Lease term	10 years

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) Segment	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Information [Abstract]
Number of business units \| Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 385,737		$ 385,737		$ 377,626
Revenue	49,737	$ 43,127	89,147	$ 98,145
Income (loss) before income taxes	8,281	(5,589)	(1,946)	(304)
Operating Segments [Member] \| American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	153,632		153,632		141,524
Revenue	16,896	15,740	32,123	30,975
Income (loss) before income taxes	2,087	1,396	2,965	3,378
Operating Segments [Member] \| Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	220,111		220,111		224,122
Revenue	32,871	31,244	57,744	65,620
Income (loss) before income taxes	8,039	(1,998)	(742)	(2,494)
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	11,994		11,994		$ 11,980
Revenue	(30)	(3,857)	(720)	1,550
Income (loss) before income taxes	$ (1,845)	$ (4,987)	$ (4,169)	$ (1,188)

Related Party Transactions (Details) $ in Thousands	6 Months Ended
Related Party Transactions (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Gray Television, Inc [Member]
Related Party Transaction [Abstract]
Remaining fractional interest in aircraft arrangement transferred to related party	$ 151