0001140361-23-032391 | 10-K | XBRL Viewer

Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Common Share [Abstract]

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

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

	For the Year Ended December 31, 2022
	Income			Weighted Average Shares Outstanding (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share
Net income before preferred stock dividends	$	1,525			20,390		-
Less preferred stock dividends		(399	)		—
Net income applicable to common shareholders	$	1,126			20,390	$	0.06

	For the Year Ended December 31, 2021
	Income			Weighted Average Shares Outstanding (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share
Net income before preferred stock dividends	$	4,281			20,402		-
Less preferred stock dividends		(399	)		—
Net income applicable to common shareholders	$	3,882			20,402	$	0.19

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2022

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Schedule II

Page 1 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

BALANCE SHEETS

ASSETS

	December 31,
	2022		2021
	(In thousands)
Cash and cash equivalents	$	2,680	$	1,718
Investments		2,278		2,749
Investment in subsidiaries		113,079		164,535
Investments in unconsolidated trusts		1,238		1,238
Deferred tax asset, net		14,163		1,237
Income taxes receivable from subsidiaries		1,951		2,171
Other assets		6,681		5,791
Total assets	$	142,070	$	179,439

LIABILITIES AND SHAREHOLDERS’ EQUITY

Other payables	$	4,130	$	4,415
Revolving credit facility		2,009		—
Junior subordinated debentures		33,738		33,738
Total liabilities		39,877		38,153

Shareholders’ equity		102,193		141,286
Total liabilities and shareholders’ equity	$	142,070	$	179,439

Schedule II

Page 2 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2022			2021
	(In thousands)
REVENUE
Fee income from subsidiaries	$	7,624		$	7,380
Distributed earnings from subsidiaries		7,200			8,400
Unrealized gains (losses) on equity securities, net		(484	)		230
Other		93			(247	)
Total revenue		14,433			15,763

GENERAL AND ADMINISTRATIVE EXPENSES		13,583			13,654

INTEREST EXPENSE		1,952			1,387
		(1,102	)		722
INCOME TAX BENEFIT⁽¹⁾		(3,934	)		(2,840	)
		2,832			3,562
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET		(1,307	)		719
NET INCOME	$	1,525		$	4,281

(1)

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

Schedule II

Page 3 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2022			2021
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	1,525		$	4,281
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized losses (gains) on equity securities, net		484			(230	)
Depreciation and amortization		515			538
Compensation expense related to share awards		134			211
Earnings from equity method investees		(294	)		—
Equity in undistributed earnings of subsidiaries, net		1,307			(719	)
Decrease (increase) in intercompany taxes		220			(489	)
Deferred income tax benefit		(2,336	)		(1,058	)
(Decrease) increase in accounts payable and accrued expenses		(285	)		63
Other, net		(1,348	)		(1,966	)
Net cash (used in) provided by operating activities		(78	)		631

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment		(45	)		(49	)
Net cash used in investing activities		(45	)		(49	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on Series D preferred stock		(399	)		(399	)
Payment of dividends on common stock		(408	)		(408	)
Proceeds from shares issued under stock plans		—			6
Proceeds from revolving credit facility, net		2,000			—
Treasury stock acquired — net employee share-based compensation		(108	)		(153	)
Net cash provided by (used in) financing activities		1,085			(954	)

Net increase (decrease) in cash		962			(372	)
Cash and cash equivalents at beginning of year		1,718			2,090
Cash and cash equivalents at end of year	$	2,680		$	1,718

Supplemental disclosure:
Cash paid for interest	$	1,794		$	1,389
Cash paid for income taxes	$	2,764		$	3,202
Intercompany tax settlement from subsidiaries	$	3,946		$	6,734

Credit Arrangements

12 Months Ended

Dec. 31, 2022

Credit Arrangements [Abstract]

Credit Arrangements

Note 9.

Credit Arrangements

The Company is preparing for the expected discontinuation of LIBOR by identifying, assessing and monitoring risks associated with LIBOR transition. Preparation includes taking steps to update operational processes to support alternative reference rates and models, as well as evaluating legacy contracts for any changes that may be required, including the determination of applicable fallbacks.

Bank Debt

On May 12, 2021, the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with Truist Bank as the lender (the “Lender”). The Credit Agreement provides for an unsecured $10,000 revolving credit facility that matures on April 12, 2024. Under the Credit Agreement, the Company will pay interest on the unpaid principal balance of outstanding revolving loans at the LIBOR Rate (as defined in the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%.

The Credit Agreement requires the Company to comply with certain covenants, including a debt to capital ratio that restricts the Company from incurring consolidated indebtedness that exceeds 35% of the Company’s consolidated capitalization at any time. The Credit Agreement also contains customary representations and warranties and events of default. Events of default include, among others, (a) the failure by the Company to pay any amounts owed under the Credit Agreement when due, (b) the failure to perform and not timely remedy certain covenants, (c) a change in control of the Company and (d) the occurrence of bankruptcy or insolvency events. Upon an event of default, the Lender may, among other things, declare all obligations under the Credit Agreement immediately due and payable and terminate the revolving commitments. As of December 31 2022, the Company had outstanding borrowings of $2,009 under the Credit Agreement.

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. At December 31, 2022, the effective interest rate was 8.73%.

The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2022 and 2021, was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES⁽¹⁾⁽²⁾
Balance December 31, 2022	$	18,042	$	23,196
Less: Treasury debt⁽³⁾		—		(7,500	)
Net balance December 31, 2022	$	18,042	$	15,696
Net balance December 31, 2021	$	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)	In 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.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Income Taxes

Note 8.

Income Taxes

Total income taxes were allocated as follows:

	2022			2021
Total tax expense on income	$	571		$	1,021

Tax benefit on components of shareholders’ equity:
Net unrealized losses on investment securities		(10,589	)		(1,944	)
Total tax benefit	$	(10,018	)	$	(923	)

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

	2022			2021
Federal income tax provision at the statutory rate	$	440		$	1,112
Statutory rate		21	%		21	%
Dividends-received deduction		(24	)		(26	)
Meals and entertainment		61			32
Vested stock and club dues		14			(28	)
Parking disallowance		17			16
Penalties and fines		149			—
Adjustment for prior years’ estimates to actual		(86	)		(85	)
Income tax expense	$	571		$	1,021
Effective tax rate		27.2	%		19.3	%

The primary difference between the effective tax rate and the federal statutory income tax rate for 2022 resulted from a permanent difference related to penalties and fines incurred of $149. Also contributing to differences between the effective tax rate and the federal statutory income tax rate were the adjustment for prior years’ estimates to actual that are generally updated at the completion of the third quarter of each fiscal year and were $86 in the year ended December 31, 2022. Other contributing factors to the differences between the effective tax rate and the federal statutory income tax rate were permanent differences related to meals and entertainment and the dividends-received deduction (“DRD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income.

The primary differences between the effective tax rate and the federal statutory income tax rate for 2021 resulted from the adjustment for prior years’ estimates to actual that are generally updated at the completion of the third quarter of each fiscal year and were $85 in the year ended December 31, 2021. Also contributing to differences between the effective tax rate and the federal statutory income tax rate were permanent differences related to meals and entertainment and vested stock and club dues. Another contributing factor was the DRD.

Deferred tax assets and liabilities at December 31, 2022 and 2021 were comprised of the following:

	2022			2021
Deferred tax assets:
Deferred acquisition costs	$	7,953		$	7,026
Net unrealized investment losses		4,489			—
Insurance reserves		1,597			2,028
Impaired assets		791			780
Bad debts and other		252			280
Total deferred tax assets		15,082			10,114
Deferred tax liabilities:
Deferred and uncollected premiums	$	(835	)	$	(561	)
Net unrealized investment gains		—			(7,689	)
Other		(84	)		(109	)
Total deferred tax liabilities		(919	)		(8,359	)
Net deferred tax asset (liability)	$	14,163		$	1,755

The components of income tax expense were:

	2022			2021
Current – Federal	$	2,390		$	2,133
Deferred – Federal		(1,819	)		(1,112	)
Total	$	571		$	1,021

The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. Tax years 2019, 2020 and 2021 are considered open tax years that remain subject to examination by the Internal Revenue Service.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Additional Information of Operating Leases

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

	Year Ended December 31, 2022			Year Ended December 31, 2021
Other information on operating leases:
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	1,031			1,015
Right-of-use assets included in other assets on the consolidated balance sheet		3,405			4,143
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	3.9 years			4.9 years

Maturities and Present Value of Lease Liabilities

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

	Lease Liability
2023	$	1,048
2024		1,065
2025		1,083
2026		942
2027		—
Thereafter		—
Total undiscounted lease payments		4,138
Less: present value adjustment		515
Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet	$	3,623

Investments, Unrealized Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ (7,562)	$ 1,894
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0
Unrealized gains (losses) on equity securities, net	$ (7,562)	$ 1,894
Percentage of investment grade securities in bond portfolio	99.00%

Schedule IV REINSURANCE INFORMATION

12 Months Ended

Dec. 31, 2022

Schedule IV REINSURANCE INFORMATION [Abstract]

Schedule IV REINSURANCE INFORMATION

Schedule IV

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

REINSURANCE INFORMATION

	Direct Amount		Ceded to Other Companies			Assumed From Other Companies		Net Amounts		Percentage of Amount Assumed to Net
	(Dollars in thousands)
Year ended December 31, 2022:
Life insurance in force	$	670,610	$	(9,597	)	$	—	$	661,013

Premiums —
Bankers Fidelity	$	176,995	$	(61,839	)	$	8	$	115,164		0.0	%
American Southern		51,844		(6,546	)		24,978		70,276		35.5	%
Total premiums	$	228,839	$	(68,385	)	$	24,986	$	185,440		13.5	%

Year ended December 31, 2021:
Life insurance in force	$	416,480	$	(9,487	)	$	—	$	406,993

Premiums —
Bankers Fidelity	$	183,382	$	(67,155	)	$	7	$	116,234		0.0	%
American Southern		52,424		(6,511	)		22,069		67,982		32.5	%
Total premiums	$	235,806	$	(73,666	)	$	22,076	$	184,216		12.0	%

Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	$ 185,440	$ 184,216
Insurance benefits and losses incurred	123,456	131,694
Expenses deferred	(23,028)	(23,151)
Amortization and depreciation expense	20,190	24,985
Other expenses	65,137	60,724
Total benefits and expenses	185,755	194,252
Underwriting income (loss)	7,901	(2,336)
Net investment income (loss)	9,932	8,528
Other income (loss)	11	13
Subtotal	9,628	(1,495)
Net realized gains (losses)	30	4,903
Unrealized gains (losses) on equity securities	(7,562)	1,894
Income before income taxes	2,096	5,302
Total revenues	187,851	199,554
Intangibles	2,544	2,544
Total assets	367,064	402,286
American Southern [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	70,276	67,982
Insurance benefits and losses incurred	47,175	44,433
Bankers Fidelity [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	115,164	116,234
Insurance benefits and losses incurred	76,281	87,261
Operating Segments [Member] \| American Southern [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	70,276	67,982
Insurance benefits and losses incurred	47,175	44,433
Expenses deferred	(10,161)	(10,690)
Amortization and depreciation expense	10,240	10,756
Other expenses	20,082	20,077
Total benefits and expenses	67,336	64,576
Underwriting income (loss)	2,940	3,406
Net investment income (loss)	4,147	3,570
Other income (loss)	3	4
Subtotal	7,090	6,980
Net realized gains (losses)	(28)	2,198
Unrealized gains (losses) on equity securities	(449)	114
Income before income taxes	6,613	9,292
Total revenues	73,949	73,868
Intangibles	1,350	1,350
Total assets	144,455	161,788
Operating Segments [Member] \| Bankers Fidelity [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	115,164	116,234
Insurance benefits and losses incurred	76,281	87,261
Expenses deferred	(12,867)	(12,461)
Amortization and depreciation expense	9,452	13,692
Other expenses	37,337	33,484
Total benefits and expenses	110,203	121,976
Underwriting income (loss)	4,961	(5,742)
Net investment income (loss)	5,414	5,204
Other income (loss)	8	9
Subtotal	10,383	(529)
Net realized gains (losses)	58	2,705
Unrealized gains (losses) on equity securities	(6,629)	1,550
Income before income taxes	3,812	3,726
Total revenues	114,015	125,702
Intangibles	1,194	1,194
Total assets	195,028	227,395
Corporate and Other [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	0	0
Insurance benefits and losses incurred	0	0
Expenses deferred	0	0
Amortization and depreciation expense	498	537
Other expenses	17,432	16,255
Total benefits and expenses	17,930	16,792
Underwriting income (loss)	0	0
Net investment income (loss)	2,461	1,466
Other income (loss)	7,624	7,380
Subtotal	(7,845)	(7,946)
Net realized gains (losses)	0	0
Unrealized gains (losses) on equity securities	(484)	230
Income before income taxes	(8,329)	(7,716)
Total revenues	9,601	9,076
Intangibles	0	0
Total assets	140,661	177,638
Adjustments & Eliminations [Member]
Revenue and income (loss) before income taxes for each business unit [Abstract]
Insurance premiums, net	0	0
Insurance benefits and losses incurred	0	0
Expenses deferred	0	0
Amortization and depreciation expense	0	0
Other expenses	(9,714)	(9,092)
Total benefits and expenses	(9,714)	(9,092)
Underwriting income (loss)	0	0
Net investment income (loss)	(2,090)	(1,712)
Other income (loss)	(7,624)	(7,380)
Subtotal	0	0
Net realized gains (losses)	0	0
Unrealized gains (losses) on equity securities	0	0
Income before income taxes	0	0
Total revenues	(9,714)	(9,092)
Intangibles	0	0
Total assets	$ (113,080)	$ (164,535)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Information [Abstract]

Assets, Revenue Loss Before Income Taxes for Each Business Unit

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

	For the Year Ended December 31, 2022
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated
Insurance premiums, net	$	70,276		$	115,164		$	—		$	—		$	185,440
Insurance benefits and losses incurred		47,175			76,281			—			—			123,456
Expenses deferred		(10,161	)		(12,867	)		—			—			(23,028	)
Amortization and depreciation expense		10,240			9,452			498			—			20,190
Other expenses		20,082			37,337			17,432			(9,714	)		65,137
Total expenses		67,336			110,203			17,930			(9,714	)		185,755
Underwriting income		2,940			4,961			—			—			7,901
Net investment income (loss)		4,147			5,414			2,461			(2,090	)		9,932
Other income (loss)		3			8			7,624			(7,624	)		11
Subtotal		7,090			10,383			(7,845	)		—			9,628
Net realized gains (losses)		(28	)		58			—			—			30
Unrealized losses on equity securities		(449	)		(6,629	)		(484	)		—			(7,562	)
Income (loss) before income taxes	$	6,613		$	3,812		$	(8,329	)	$	—		$	2,096
Total revenues	$	73,949		$	114,015		$	9,601		$	(9,714	)	$	187,851
Intangibles	$	1,350		$	1,194		$	—		$	—		$	2,544
Total assets	$	144,455		$	195,028		$	140,661		$	(113,080	)	$	367,064

	For the Year Ended December 31, 2021
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated
Insurance premiums, net	$	67,982		$	116,234		$	—		$	—		$	184,216
Insurance benefits and losses incurred		44,433			87,261			—			—			131,694
Expenses deferred		(10,690	)		(12,461	)		—			—			(23,151	)
Amortization and depreciation expense		10,756			13,692			537			—			24,985
Other expenses		20,077			33,484			16,255			(9,092	)		60,724
Total expenses		64,576			121,976			16,792			(9,092	)		194,252
Underwriting income (loss)		3,406			(5,742	)		—			—			(2,336	)
Net investment income (loss)		3,570			5,204			1,466			(1,712	)		8,528
Other income (loss)		4			9			7,380			(7,380	)		13
Subtotal		6,980			(529	)		(7,946	)		—			(1,495	)
Net realized gains		2,198			2,705			—			—			4,903
Unrealized gains on equity securities		114			1,550			230			—			1,894
Income (loss) before income taxes	$	9,292		$	3,726		$	(7,716	)	$	—		$	5,302
Total revenues	$	73,868		$	125,702		$	9,076		$	(9,092	)	$	199,554
Intangibles	$	1,350		$	1,194		$	—		$	—		$	2,544
Total assets	$	161,788		$	227,395		$	177,638		$	(164,535	)	$	402,286

Leases (Details) $ in Thousands	12 Months Ended
Leases (Details) $ in Thousands	Dec. 31, 2022 USD ($) Lease	Dec. 31, 2021 USD ($)
Lease description [Abstract]
Number of operating lease agreements \| Lease	2
Lease expense	$ 1,014	$ 1,014
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	1,031	1,015
Right-of-use assets included in other assets on the consolidated balance sheet	$ 3,405	$ 4,143
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	3 years 10 months 24 days	4 years 10 months 24 days
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Maturities and present value of lease liabilities [Abstract]
2023	$ 1,048
2024	1,065
2025	1,083
2026	942
2027	0
Thereafter	0
Total undiscounted lease payments	4,138
Less: present value adjustment	515
Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet	$ 3,623
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities
Second Lease [Member]
Lease description [Abstract]
Lease term	10 years
Renewal option period	7 years

Summary of Significant Accounting Policies, Reinsurance (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)
Reinsurance, Life and Health Operations [Abstract]
Life insurance reinsured and yearly renewable term agreements	$ 670,600,000
Medicare Supplement [Member]
Reinsurance, Life and Health Operations [Abstract]
Excess retention, life and health operations	$ 1,000,000
Maximum retention percentage	50.00%
Retained limitations, life and health operations	$ 2,000,000
Medicare Supplement [Member] \| Maximum [Member]
Reinsurance, Life and Health Operations [Abstract]
Retained limitations, life and health operations	15,000,000
American Southern [Member] \| Inland Marine and Commercial Automobile Physical Damage [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Excess retention, property and casualty operations	225,000
Retained limitations, property and casualty operations	125,000
American Southern [Member] \| Automobile Liability and General Liability [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Excess retention, property and casualty operations	2,000,000
American Southern [Member] \| Automobile Liability and General Liability [Member] \| Minimum [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Retained limitations, property and casualty operations	100,000
American Southern [Member] \| Automobile Liability and General Liability [Member] \| Maximum [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Retained limitations, property and casualty operations	500,000
American Southern [Member] \| Property Catastrophe Treaty [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Excess retention, property and casualty operations	5,500,000
Retained limitations, property and casualty operations	500,000
American Southern [Member] \| Surety Bonds [Member]
Reinsurance, Property and Casualty Operations [Abstract]
Excess retention, property and casualty operations	1,500,000
Retained limitations, property and casualty operations	5,000,000
Bankers Fidelity [Member]
Reinsurance, Life and Health Operations [Abstract]
Life insurance reinsured and yearly renewable term agreements	9,600,000
Bankers Fidelity [Member] \| Maximum [Member]
Reinsurance, Life and Health Operations [Abstract]
Excess retention, life and health operations	$ 200,000

Internal-Use Software (Details) - USD ($) $ in Thousands	12 Months Ended
Internal-Use Software (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Internal Use Software [Abstract]
Period of initial terms of arrangement	5 years
Period of additional renewal term	5 years
Incurred and capitalized implementation costs	$ 2,522	$ 500
Capitalized implementation costs	3,022
Amortization expense	$ 0
Software Capitalized Implementation Costs [Member]
Internal Use Software [Abstract]
Amortization period	10 years

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Carrying Value [Abstract]
Due in one year or less	$ 3,776	$ 1,734
Due after one year through five years	40,150	24,926
Due after five years through ten years	44,044	73,725
Due after ten years	87,719	122,045
Asset backed securities	33,040	38,556
Carrying value total	208,729	260,986
Amortized Cost [Abstract]
Due in one year or less	3,797	1,730
Due after one year through five years	42,174	23,593
Due after five years through ten years	49,711	68,338
Due after ten years	103,095	106,181
Asset backed securities	37,989	38,755
Amortized cost total	$ 236,766	$ 238,597

Segment Information

12 Months Ended

Dec. 31, 2022

Segment Information [Abstract]

Segment Information

Note 16.

Segment Information

	For the Year Ended December 31, 2022
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated
Insurance premiums, net	$	70,276		$	115,164		$	—		$	—		$	185,440
Insurance benefits and losses incurred		47,175			76,281			—			—			123,456
Expenses deferred		(10,161	)		(12,867	)		—			—			(23,028	)
Amortization and depreciation expense		10,240			9,452			498			—			20,190
Other expenses		20,082			37,337			17,432			(9,714	)		65,137
Total expenses		67,336			110,203			17,930			(9,714	)		185,755
Underwriting income		2,940			4,961			—			—			7,901
Net investment income (loss)		4,147			5,414			2,461			(2,090	)		9,932
Other income (loss)		3			8			7,624			(7,624	)		11
Subtotal		7,090			10,383			(7,845	)		—			9,628
Net realized gains (losses)		(28	)		58			—			—			30
Unrealized losses on equity securities		(449	)		(6,629	)		(484	)		—			(7,562	)
Income (loss) before income taxes	$	6,613		$	3,812		$	(8,329	)	$	—		$	2,096
Total revenues	$	73,949		$	114,015		$	9,601		$	(9,714	)	$	187,851
Intangibles	$	1,350		$	1,194		$	—		$	—		$	2,544
Total assets	$	144,455		$	195,028		$	140,661		$	(113,080	)	$	367,064

	For the Year Ended December 31, 2021
	American Southern			Bankers Fidelity			Corporate & Other			Adjustments & Eliminations			Consolidated
Insurance premiums, net	$	67,982		$	116,234		$	—		$	—		$	184,216
Insurance benefits and losses incurred		44,433			87,261			—			—			131,694
Expenses deferred		(10,690	)		(12,461	)		—			—			(23,151	)
Amortization and depreciation expense		10,756			13,692			537			—			24,985
Other expenses		20,077			33,484			16,255			(9,092	)		60,724
Total expenses		64,576			121,976			16,792			(9,092	)		194,252
Underwriting income (loss)		3,406			(5,742	)		—			—			(2,336	)
Net investment income (loss)		3,570			5,204			1,466			(1,712	)		8,528
Other income (loss)		4			9			7,380			(7,380	)		13
Subtotal		6,980			(529	)		(7,946	)		—			(1,495	)
Net realized gains		2,198			2,705			—			—			4,903
Unrealized gains on equity securities		114			1,550			230			—			1,894
Income (loss) before income taxes	$	9,292		$	3,726		$	(7,716	)	$	—		$	5,302
Total revenues	$	73,868		$	125,702		$	9,076		$	(9,092	)	$	199,554
Intangibles	$	1,350		$	1,194		$	—		$	—		$	2,544
Total assets	$	161,788		$	227,395		$	177,638		$	(164,535	)	$	402,286

- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

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

+ Details

Disclosures About Fair Value of Financial Instruments, Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 208,729	$ 260,986
Equity securities	11,562	19,124
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	208,729	260,986
Equity securities	11,562	19,124
Cash equivalents	18,861	12,713
Assets at fair value	239,152	292,823
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	0	250
Equity securities	11,406	18,967
Cash equivalents	18,861	12,713
Assets at fair value	30,267	31,930
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	208,729	260,486
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	208,729	260,486
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	250
Equity securities	156	157
Cash equivalents	0	0
Assets at fair value	$ 156	$ 407

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

12 Months Ended

Dec. 31, 2022

USD ($)

Trust

Quarter

$ / shares

Debt Instruments [Abstract]

Number of Connecticut statutory business trusts | Trust

Financial structure of statutory business trusts [Abstract]

Net balance December 31, 2022

$ 33,738

Net balance December 31, 2021

$ 33,738

Junior Subordinated Debentures [Member]

Debt Instruments [Abstract]

Debt instrument, effective interest rate percentage

8.73%

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]

Balance December 31, 2022

$ 18,042

^[1],[2]

Less: Treasury debt

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

Net balance December 31, 2022

18,042

^[1],[2]

Net balance December 31, 2021

$ 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]

Balance December 31, 2022

$ 23,196

^[1],[2]

Less: Treasury debt

(7,500)

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

Net balance December 31, 2022

15,696

^[1],[2]

Net balance December 31, 2021

$ 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]	In 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.

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS

12 Months Ended

Dec. 31, 2022

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

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS

Schedule VI

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION CONCERNING

PROPERTY-CASUALTY INSURANCE OPERATIONS

											Claims and Claim Adjustment Expenses Incurred Related To
Year Ended	Deferred Policy Acquisition Costs		Reserves		Unearned Premiums		Earned Premiums		Net Investment Income		Current Year		Prior Years			Amortization of Deferred Acquisition Costs		Paid Claims and Claim Adjustment Expenses		Premiums Written
	(In thousands)
December 31, 2022	$	2,401	$	62,810	$	25,534	$	70,276	$	4,147	$	48,692	$	(1,517	)	$	10,150	$	42,948	$	72,671

December 31, 2021	$	2,390	$	57,256	$	23,780	$	67,982	$	3,570	$	48,678	$	(4,245	)	$	10,599	$	40,370	$	69,403

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 18.

Subsequent Events

None.

Benefit Plans, Equity Incentive Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	May 24, 2022	May 01, 2012
2012 Plan [Member] \| Share Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Number of shares authorized for issuance (in shares)				2,000,000
Shares available for future grant (in shares)	0	935,200
Equity plan expiration period	10 years
2012 Plan [Member] \| Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Options granted (in shares)	0	0
Options outstanding (in shares)	0	0
2012 Plan [Member] \| Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Restricted shares issued (in shares)	25,000	0
Estimated fair value of shares issued	$ 71
2012 Plan [Member] \| Restricted Stock [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	1 year
2012 Plan [Member] \| Restricted Stock [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	3 years
2022 Plan [Member] \| Share Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Number of shares authorized for issuance (in shares)			3,000,000
Shares available for future grant (in shares)	2,960,000
2022 Plan [Member] \| Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Restricted shares issued (in shares)	40,000
Estimated fair value of shares issued	$ 122
2022 Plan [Member] \| Restricted Stock [Member] \| Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	1 year
2022 Plan [Member] \| Restricted Stock [Member] \| Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract]
Vesting period	3 years

Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
Reinsurance (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of premiums written, premiums earned and insurance benefits and losses [Abstract]
Direct premiums written	$ 228,523	$ 236,682
Assumed premiums written	26,823	22,111
Ceded premiums written	(68,248)	(73,521)
Net premiums written	187,098	185,272
Direct premiums earned	228,839	235,806
Assumed premiums earned	24,986	22,076
Ceded premiums earned	(68,385)	(73,666)
Net premiums earned	185,440	184,216
Provision for benefits and losses incurred	174,046	190,591
Reinsurance loss recoveries	(50,590)	(58,897)
Total insurance benefits and losses incurred	123,456	131,694
Components of reinsurance recoverables [Abstract]
Recoverable on unpaid losses	17,647	17,690
Recoverable on unpaid benefits	6,788	8,169
Recoverable on paid losses	618	499
Ceded unearned premiums	681	819
Ceded advanced premiums	179	239
Total reinsurance receivables	25,913	27,416
American Southern [Member]
Reconciliation of premiums written, premiums earned and insurance benefits and losses [Abstract]
Direct premiums written	52,404	53,815
Assumed premiums written	26,814	22,099
Ceded premiums written	(6,547)	(6,511)
Net premiums written	72,671	69,403
Direct premiums earned	51,844	52,424
Assumed premiums earned	24,978	22,069
Ceded premiums earned	(6,546)	(6,511)
Net premiums earned	70,276	67,982
Provision for benefits and losses incurred	49,568	46,500
Reinsurance loss recoveries	(2,393)	(2,067)
Total insurance benefits and losses incurred	47,175	44,433
Components of reinsurance recoverables [Abstract]
Recoverable on unpaid losses	8,265	6,937
Recoverable on unpaid benefits	0	0
Recoverable on paid losses	0	0
Ceded unearned premiums	0	0
Ceded advanced premiums	0	0
Total reinsurance receivables	8,265	6,937
Bankers Fidelity [Member]
Reconciliation of premiums written, premiums earned and insurance benefits and losses [Abstract]
Direct premiums written	176,119	182,867
Assumed premiums written	9	12
Ceded premiums written	(61,701)	(67,010)
Net premiums written	114,427	115,869
Direct premiums earned	176,995	183,382
Assumed premiums earned	8	7
Ceded premiums earned	(61,839)	(67,155)
Net premiums earned	115,164	116,234
Provision for benefits and losses incurred	124,478	144,091
Reinsurance loss recoveries	(48,197)	(56,830)
Total insurance benefits and losses incurred	76,281	87,261
Components of reinsurance recoverables [Abstract]
Recoverable on unpaid losses	9,382	10,753
Recoverable on unpaid benefits	6,788	8,169
Recoverable on paid losses	618	499
Ceded unearned premiums	681	819
Ceded advanced premiums	179	239
Total reinsurance receivables	$ 17,648	$ 20,479
General Re Life Corporation [Member] \| Reinsurance Recoverable [Member] \| Reinsurer Concentration Risk [Member]
Reinsurance Recoverables [Abstract]
Percentage of reinsurance recoverables due from reinsurers	99.70%
Reinsurance recoverables due	$ 25,824

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Allocation of Total Income Taxes

Total income taxes were allocated as follows:

	2022			2021
Total tax expense on income	$	571		$	1,021

Tax benefit on components of shareholders’ equity:
Net unrealized losses on investment securities		(10,589	)		(1,944	)
Total tax benefit	$	(10,018	)	$	(923	)

Reconciliation of Income Tax Expense (Benefit)

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

	2022			2021
Federal income tax provision at the statutory rate	$	440		$	1,112
Statutory rate		21	%		21	%
Dividends-received deduction		(24	)		(26	)
Meals and entertainment		61			32
Vested stock and club dues		14			(28	)
Parking disallowance		17			16
Penalties and fines		149			—
Adjustment for prior years’ estimates to actual		(86	)		(85	)
Income tax expense	$	571		$	1,021
Effective tax rate		27.2	%		19.3	%

Deferred Tax Liabilities and Assets

Deferred tax assets and liabilities at December 31, 2022 and 2021 were comprised of the following:

	2022			2021
Deferred tax assets:
Deferred acquisition costs	$	7,953		$	7,026
Net unrealized investment losses		4,489			—
Insurance reserves		1,597			2,028
Impaired assets		791			780
Bad debts and other		252			280
Total deferred tax assets		15,082			10,114
Deferred tax liabilities:
Deferred and uncollected premiums	$	(835	)	$	(561	)
Net unrealized investment gains		—			(7,689	)
Other		(84	)		(109	)
Total deferred tax liabilities		(919	)		(8,359	)
Net deferred tax asset (liability)	$	14,163		$	1,755

Components of Income Tax Expense

The components of income tax expense were:

	2022			2021
Current – Federal	$	2,390		$	2,133
Deferred – Federal		(1,819	)		(1,112	)
Total	$	571		$	1,021

Credit Arrangements (Tables)

12 Months Ended

Dec. 31, 2022

Credit Arrangements [Abstract]

Financial Structure of Statutory Business Trusts

The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2022 and 2021, was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES⁽¹⁾⁽²⁾
Balance December 31, 2022	$	18,042	$	23,196
Less: Treasury debt⁽³⁾		—		(7,500	)
Net balance December 31, 2022	$	18,042	$	15,696
Net balance December 31, 2021	$	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)	In 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.

Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Deferred policy acquisition costs [Roll Forward]
Balance, beginning of year	$ 38,698
Amortization	(19,445)	$ (24,064)
Balance, end of year	42,281	38,698
American Southern [Member]
Deferred policy acquisition costs [Roll Forward]
Balance, beginning of year	2,390	2,299
Capitalization	10,161	10,690
Amortization	(10,150)	(10,599)
Balance, end of year	2,401	2,390
Bankers Fidelity [Member]
Deferred policy acquisition costs [Roll Forward]
Balance, beginning of year	36,308	37,312
Capitalization	12,867	12,461
Amortization	(9,295)	(13,465)
Balance, end of year	$ 39,880	$ 36,308

- Definition

Amount of amortization expense (reversal of expense) for deferred policy acquisition costs.

+ References + Details

Summary of Significant Accounting Policies, Principles of Consolidation (Details)	12 Months Ended
	Dec. 31, 2022 Subsidiary
Principles of Consolidation [Abstract]
Number of insurance subsidiaries owned by the parent	5
Number of non-insurance subsidiaries owned by the subsidiary	3
Number of non-insurance subsidiaries owned by the parent	1

Related Party Transactions

12 Months Ended

Dec. 31, 2022

Related Party Transactions

Note 15.

Related Party Transactions

In the normal course of business the Company has engaged in transactions with entities affiliated with the controlling shareholder of the Company. These transactions include the leasing of office space, certain investing and financing activities, as well as inconsequential administrative and consulting services. At December 31, 2022, two members of the Company’s board of directors, including the Company’s Chairman, President and Chief Executive Officer, were considered to be affiliates of the majority shareholder.

The Company leases approximately 49,586 square feet of office and covered garage space from one such controlled entity. During the years ended December 31, 2022 and 2021, the Company paid $880 and $879, respectively, under this lease. In December 2022, Delta Life Insurance Company, the owner of the building, transferred title to the building to 4370 Peachtree LLC. Each of Delta Life Insurance Company and 4370 Peachtree LLC is controlled by an affiliate of the Company. Additionally, as of December 31, 2021, Delta Life Insurance Company owned 1,663,809 shares of the Company’s common stock. No shares of the Company’s common stock were owned by Delta Life Insurance Company as of December 31, 2022.

Certain financing for the Company has also been provided by this entity in the form of an investment in the Series D Preferred Stock (See Note 12). During the years ended December 31, 2022 and 2021, the Company paid this entity $399 in dividends on the Series D Preferred Stock.

Certain members of the Company’s management and board of directors are shareholders and on the board of directors of Gray Television, Inc. (“Gray”). As of December 31, 2022 and 2021, the Company owned 880,272 shares of Gray Class A common stock and 106,000 shares of Gray common stock. The aggregate carrying value of these investments in Gray at December 31, 2022 and 2021 was $10,772 and $18,325, respectively.

In each of the years ended December 31, 2022 and 2021, Gray paid the Company approximately $1,708 and $1,308 in insurance premiums related to certain voluntary employee benefit plans.

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member] $ in Thousands		12 Months Ended
	May 12, 2021 USD ($)	Dec. 31, 2022 USD ($)
Bank Debt [Abstract]
Unsecured credit facility	$ 10,000
Maturity date		Apr. 12, 2024
Outstanding borrowings		$ 2,009
Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio	0.35
LIBOR [Member]
Bank Debt [Abstract]
Basis spread on variable rate	2.00%
Interest rate floor	1.00%

Insurance Reserves and Policyholder Funds, Incurred Paid Claims Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	$ 67,116
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	17,647	$ 17,690
Unallocated claims adjustment expenses	2,721
Total gross liability for unpaid losses, claims and loss adjustment expenses	87,484	$ 85,620	$ 79,147
Medicare Supplement [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	12,916
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	9,382
Automobile Liability [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	43,201
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	5,086
Automobile Physical Damage [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	2,648
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	334
General Liability [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	3,826
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	2,451
Surety [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	3,313
Other Short-Duration Insurance Lines [Member]
Net outstanding liabilities [Abstract]
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance	1,212
Reinsurance recoverable on unpaid losses [Abstract]
Total reinsurance recoverable on unpaid losses	$ 394

Summary of Significant Accounting Policies, Intangibles (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Intangibles [Abstract]
Impairment of intangible assets	$ 0

Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2022

Deferred Policy Acquisition Costs [Abstract]

Deferred Policy Acquisition Costs

Note 4.

Deferred Policy Acquisition Costs

The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.

	2022						2021
	American Southern			Bankers Fidelity			American Southern			Bankers Fidelity
Deferred policy acquisition costs:
Balance, beginning of year	$	2,390		$	36,308		$	2,299		$	37,312
Capitalization		10,161			12,867			10,690			12,461
Amortization		(10,150	)		(9,295	)		(10,599	)		(13,465	)
Balance, end of year	$	2,401		$	39,880		$	2,390		$	36,308

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 28,863	$ 24,753
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $236,766 and $238,597)	208,729	260,986
Equity securities, at fair value (cost: $4,907 and $4,907)	11,562	19,124
Other invested assets (cost: $5,628 and $698)	5,386	198
Policy loans	1,759	1,858
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	228,712	283,442
Receivables:
Reinsurance	25,913	27,416
Insurance premiums and other, net of allowance for doubtful accounts of $177 and $188 as of 2022 and 2021, respectively	15,386	14,959
Deferred income taxes, net	14,163	1,755
Deferred acquisition costs	42,281	38,698
Other assets	9,202	8,719
Intangibles	2,544	2,544
Total assets	367,064	402,286
Insurance reserves and policyholder funds
Future policy benefits	85,564	87,348
Unearned premiums	28,348	27,469
Losses and claims	87,484	85,620
Other policy liabilities	1,255	1,360
Total insurance reserves and policyholder funds	202,651	201,797
Accounts payable and accrued expenses	26,473	25,465
Revolving credit facility	2,009	0
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	264,871	261,000
Commitments and contingencies (Note 17)
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; 22,400,894 shares issued; 20,407,229 and 20,378,576 shares outstanding as of 2022 and 2021, respectively	22,401	22,401
Additional paid-in capital	57,425	57,441
Retained earnings	51,982	51,264
Accumulated other comprehensive income (loss)	(22,149)	17,688
Unearned stock grant compensation	(132)	(73)
Treasury stock, at cost, 1,993,665 and 2,022,318 shares as of 2022 and 2021, respectively	(7,389)	(7,490)
Total shareholders' equity	102,193	141,286
Total liabilities and shareholders' equity	$ 367,064	$ 402,286

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2022

Reinsurance [Abstract]

Effects of Reinsurance on Premiums Written, Premiums Earned and Insurance Benefits and Losses Incurred

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

	For the Year Ended December 31, 2022
	American Southern			Bankers Fidelity			Total
Direct premiums written	$	52,404		$	176,119		$	228,523
Assumed premiums written		26,814			9			26,823
Ceded premiums written		(6,547	)		(61,701	)		(68,248	)
Net premiums written	$	72,671		$	114,427		$	187,098

Direct premiums earned	$	51,844		$	176,995		$	228,839
Assumed premiums earned		24,978			8			24,986
Ceded premiums earned		(6,546	)		(61,839	)		(68,385	)
Net premiums earned	$	70,276		$	115,164		$	185,440

Provision for benefits and losses incurred	$	49,568		$	124,478		$	174,046
Reinsurance loss recoveries		(2,393	)		(48,197	)		(50,590	)
Insurance benefits and losses incurred	$	47,175		$	76,281		$	123,456

	For the Year Ended December 31, 2021
	American Southern			Bankers Fidelity			Total
Direct premiums written	$	53,815		$	182,867		$	236,682
Assumed premiums written		22,099			12			22,111
Ceded premiums written		(6,511	)		(67,010	)		(73,521	)
Net premiums written	$	69,403		$	115,869		$	185,272

Direct premiums earned	$	52,424		$	183,382		$	235,806
Assumed premiums earned		22,069			7			22,076
Ceded premiums earned		(6,511	)		(67,155	)		(73,666	)
Net premiums earned	$	67,982		$	116,234		$	184,216

Provision for benefits and losses incurred	$	46,500		$	144,091		$	190,591
Reinsurance loss recoveries		(2,067	)		(56,830	)		(58,897	)
Insurance benefits and losses incurred	$	44,433		$	87,261		$	131,694

Components of Reinsurance Recoverables

Components of reinsurance receivables at December 31, 2022 and 2021 were as follows:

	December 31, 2022
	American Southern		Bankers Fidelity		Total
Recoverable on unpaid losses	$	8,265	$	9,382	$	17,647
Recoverable on unpaid benefits		—		6,788		6,788
Recoverable on paid losses		—		618		618
Ceded unearned premiums		—		681		681
Ceded advanced premiums		—		179		179
Total reinsurance receivables	$	8,265	$	17,648	$	25,913

	December 31, 2021
	American Southern		Bankers Fidelity		Total
Recoverable on unpaid losses	$	6,937	$	10,753	$	17,690
Recoverable on unpaid benefits		—		8,169		8,169
Recoverable on paid losses		—		499		499
Ceded unearned premiums		—		819		819
Ceded advanced premiums		—		239		239
Total reinsurance receivables	$	6,937	$	20,479	$	27,416

Related Party Transactions (Details) $ in Thousands	12 Months Ended
Related Party Transactions (Details) $ in Thousands	Dec. 31, 2022 USD ($) ft² Director shares	Dec. 31, 2021 USD ($) shares
Related Party Transaction [Abstract]
Number of board of directors \| Director	2
Rental expense for operating leases	$ 1,014	$ 1,014
Payment of dividends on Series D Preferred Stock	399	399
Series D Preferred Stock [Member]
Related Party Transaction [Abstract]
Payment of dividends on Series D Preferred Stock	$ 399	399
Delta Life Insurance Company [Member]
Related Party Transaction [Abstract]
Office and covered garage space leased \| ft²	49,586
Rental expense for operating leases	$ 880	$ 879
Delta Life Insurance Company [Member] \| Common Stock [Member]
Related Party Transaction [Abstract]
Shares of common stock owned (in shares) \| shares	0	1,663,809
Members of Management [Member]
Related Party Transaction [Abstract]
Aggregate carrying value of investments in Gray	$ 10,772	$ 18,325
Premiums paid by Gray for employee benefit plans	$ 1,708	$ 1,308
Members of Management [Member] \| Class A Common Stock [Member]
Related Party Transaction [Abstract]
Shares of common stock owned (in shares) \| shares	880,272	880,272
Members of Management [Member] \| Common Stock [Member]
Related Party Transaction [Abstract]
Shares of common stock owned (in shares) \| shares	106,000	106,000

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Securities	Dec. 31, 2021 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 159,874	$ 33,467
12 months or longer	33,773	4,761
Total	193,647	38,228
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	20,326	465
12 months or longer	8,464	252
Total	28,790	717
Gross OTTI losses charged to realized gains	$ 0	$ 0
Number of securities in unrealized loss position \| Securities	237	61
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	$ 23,763	$ 30,141
12 months or longer	19,259	0
Total	43,022	30,141
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	2,410	416
12 months or longer	3,516	0
Total	5,926	416
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	8,183
12 months or longer	0
Total	8,183
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	1,702
12 months or longer	0
Total	1,702
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	127,928	3,326
12 months or longer	14,514	4,761
Total	142,442	8,087
Available-for-sale securities, continuous unrealized loss position, Unrealized Losses [Abstract]
Less than 12 months	16,214	49
12 months or longer	4,948	252
Total	$ 21,162	$ 301

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investments:
Fixed maturities, cost	$ 236,766	$ 238,597
Equity securities, cost	4,907	4,907
Other invested assets, cost	5,628	698
Receivables:
Insurance premiums and other, allowance for doubtful accounts	$ 177	$ 188
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)	20,407,229	20,378,576
Treasury stock, at cost (in shares)	1,993,665	2,022,318

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 17.

Commitments and Contingencies

Litigation

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

Regulatory Matters

Like all domestic insurance companies, the Company’s insurance subsidiaries are subject to regulation and supervision in the jurisdictions in which they do business. Statutes typically delegate regulatory, supervisory, and administrative powers to state insurance commissioners. From time to time, and in the ordinary course of business, the Company receives notices and inquiries from state insurance departments with respect to various matters.

In November 2021, the Company was made aware by a state regulatory authority of alleged violations relating to certain sales of insurance policies and that the Company may be subject to regulatory action, including fines. The Company agreed to settle the matter through a consent order which included a penalty that was recorded in the financial statements in March 2022.

Insurance Reserves and Policyholder Funds

12 Months Ended

Dec. 31, 2022

Insurance Reserves and Policyholder Funds [Abstract]

Insurance Reserves and Policyholder Funds

Note 6.

Insurance Reserves and Policyholder Funds

The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2022 and 2021.

					Amount of Insurance In Force, Net
	2022		2021		2022		2021
Future policy benefits
Life insurance policies:
Ordinary life and annuities	$	50,660	$	51,947	$	186,863	$	194,210
Group life		2,533		1,094		474,150		212,783
		53,193		53,041	$	661,013	$	406,993
Accident and health insurance policies		32,371		34,307
		85,564		87,348
Unearned premiums		28,348		27,469
Losses, claims and loss adjustment expenses		87,484		85,620
Other policy liabilities		1,255		1,360
Total insurance reserves and policyholder funds	$	202,651	$	201,797

Annualized premiums for accident and health insurance policies were $89,471 and $101,315 at December 31, 2022 and 2021, respectively.

Future Policy Benefits

Liabilities for future benefits on life and accident and health policies are based upon assumed future investment yields, mortality rates, morbidity rates, and lapse rates after giving effect to possible risks of unexpected adverse claim experience. The assumed mortality, morbidity, and lapse rates are based upon the Company’s experience and are modified as necessary to reflect anticipated trends and are generally established at contract inception. The assumptions include a margin for adverse experience development. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 5.5% to 7.0% for 1977 through 1979 issues, (iii) 9.0% for 1980 through 1987 issues, (iv) 5.0% to 7.0% for 1988 through 2009 issues, (v) 4.0% for 2010 through 2012 issues, (vi) 3.5% to 4.0% for 2013 through 2020 issues, and (vii) 3.0% for 2021 and 2022 issues.

Loss and Claim Reserves

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

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

	2022			2021
Balance at January 1	$	85,620		$	79,147
Less: Reinsurance recoverable on unpaid losses		(17,690	)		(17,600	)
Net balance at January 1		67,930			61,547

Incurred related to:
Current year		125,754			134,284
Prior years		(4,228	)⁽¹⁾		(3,415	)⁽²⁾
Total incurred		121,526			130,869

Paid related to:
Current year		82,002			89,838
Prior years		37,617			34,648
Total paid		119,619			124,486
Net balance at December 31		69,837			67,930
Plus: Reinsurance recoverable on unpaid losses		17,647			17,690
Balance at December 31	$	87,484		$	85,620

(1)	Prior years’ development was primarily the result of better than expected development on prior year’s loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity, as well as the surety line of business in American Southern.

(2)

Prior years’ development was primarily the result of better than expected development on prior year’s loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years’ 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:

	2022		2021
Total incurred losses	$	121,526	$	130,869
Cash surrender value and matured endowments		1,598		2,179
Benefit reserve changes		332		(1,354	)
Total insurance benefits and losses incurred	$	123,456	$	131,694

Liability for Unpaid Losses, Claims and Loss Adjustment Expenses

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2022, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

Medicare Supplement

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	56,974	$	56,970	$	57,034	$	57,023	$	57,021	$	57,016	$	57,015	$	57,014	$	57,014	$	57,014	$	—		867
2014				57,179		56,938		56,981		56,981		56,976		56,977		56,976		56,976		56,976		—		957
2015						55,482		54,939		54,993		54,990		54,984		54,985		54,985		54,985		—		939
2016								58,849		59,851		63,226		63,225		63,221		63,221		63,221		—		898
2017										67,960		69,655		69,643		69,635		69,633		69,633		—		1,037
2018												79,140		80,404		80,361		80,357		80,351		—		1,512
2019														88,765		87,028		86,988		86,986		1		2,052
2020																75,857		75,715		75,730		20		2,245
2021																		65,267		61,579		228		1,852
2022																				58,777		12,666		1,768
																			$	665,252

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	47,770	$	56,970	$	57,034	$	57,023	$	57,021	$	57,016	$	57,015	$	57,014	$	57,015	$	57,014
2014				48,024		56,938		56,981		56,981		56,976		56,977		56,976		56,976		56,976
2015						45,430		54,876		54,993		54,990		54,984		54,985		54,985		54,985
2016								49,165		59,747		63,226		63,225		63,221		63,221		63,221
2017										57,696		69,517		69,643		69,635		69,633		69,633
2018												66,565		80,222		80,361		80,355		80,351
2019														72,333		86,856		86,978		86,985
2020																63,129		75,527		75,710
2021																		50,197		61,350
2022																				46,111
																			$	652,336
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	12,916

The cumulative number of reported claims for the Medicare Supplement line of business is the number of distinct claims incurred and submitted to the Centers for Medicare and Medicaid Services for payment in the given year. Multiple payments on the same claim are not counted in the frequency information. Estimated ultimate claims incurred, using claims data reported during each month of any given year, are calculated using the chain ladder method modified to reflect seasonality and trend-adjusted expected claims for the most recent four-month period prior to the statement date. Additional adjustments to the estimated ultimate claims incurred are then applied to account for seasonal changes in claim experience and changes in the rate of claim processing. The IBNR is calculated as the estimated ultimate claims less the total of paid claims through the valuation date and claims in the course of settlement as of the valuation date. Thirty-six months of loss data are used to develop the estimated ultimate incurred claims. For other accident and health products that have very small claim volumes, similar approaches are used and modified to reflect the unique aspects of the products.

Automobile Liability

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	18,664	$	20,702	$	21,096	$	21,823	$	21,352	$	21,020	$	20,972	$	20,972	$	20,970	$	20,958	$	—		3,278
2014				20,812		21,881		22,041		22,353		21,682		22,080		22,100		22,125		22,165		35		3,558
2015						18,521		19,857		20,017		20,007		20,086		20,680		20,849		20,955		9		3,537
2016								20,549		21,275		21,846		22,388		22,245		22,310		22,448		—		3,862
2017										22,179		24,212		23,766		25,180		26,009		26,153		74		3,813
2018												24,284		25,682		27,338		30,013		30,464		466		3,650
2019														25,241		24,045		25,724		28,042		1,725		3,599
2020																22,416		16,442		20,137		1,815		2,494
2021																		25,887		21,172		2,415		2,707
2022																				28,860		14,911		2,532
																			$	241,354

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	5,144	$	12,193	$	16,782	$	19,407	$	20,382	$	20,982	$	20,972	$	20,972	$	20,970	$	20,958
2014				6,822		13,807		17,554		20,177		20,878		21,735		21,813		21,786		21,958
2015						6,226		11,878		14,938		17,612		19,557		20,234		20,726		20,904
2016								6,796		13,141		16,397		19,613		21,408		21,809		22,448
2017										7,401		16,317		20,221		22,778		25,023		25,712
2018												6,989		15,647		21,121		24,662		27,671
2019														7,305		14,694		19,384		22,868
2020																5,172		9,941		14,693
2021																		6,242		13,918
2022																				7,023
																			$	198,153
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	43,201

Automobile Physical Damage

	For the Years Ended December 31,										As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance										IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2018	$	7,805	$	7,530	$	7,447	$	7,430	$	7,461	$	—		1,461
2019				8,526		8,026		7,914		7,881		1		1,493
2020						10,288		10,080		10,047		3		1,634
2021								14,296		13,385		10		1,880
2022										10,962		232		1,617
									$	49,736

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2018		2019		2020		2021		2022
2018	$	6,344	$	7,510	$	7,446	$	7,433	$	7,461
2019				6,360		8,005		7,906		7,867
2020						8,347		9,952		10,008
2021								11,993		13,277
2022										8,475
									$	47,088
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance									$	2,648

General Liability

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	3,461	$	728	$	926	$	817	$	865	$	820	$	945	$	904	$	868	$	867	$	—		199
2014				3,744		501		557		476		406		497		523		519		511		3		203
2015						4,421		1,037		1,227		1,044		867		855		855		870		4		148
2016								3,119		1,148		736		608		621		619		620		—		94
2017										1,490		488		513		738		738		839		23		84
2018												1,656		333		198		128		183		—		76
2019														1,916		707		455		515		60		89
2020																2,223		670		657		93		89
2021																		2,567		1,329		327		94
2022																				2,770		1,780		77
																			$	9,161

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	104	$	339	$	579	$	811	$	791	$	803	$	805	$	855	$	867	$	867
2014				171		299		331		369		373		493		498		502		502
2015						98		259		464		664		863		855		855		854
2016								116		203		568		608		617		619		620
2017										75		136		365		556		696		741
2018												65		90		115		128		183
2019														41		209		242		354
2020																208		385		462
2021																		364		646
2022																				402
																			$	5,631
All outstanding liabilities before 2013, net of reinsurance																				296
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	3,826

Surety

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	3,060	$	2,007	$	2,743	$	2,947	$	2,866	$	2,809	$	2,765	$	2,757	$	2,753	$	2,751	$	—		60
2014				3,214		3,130		2,990		2,760		2,685		2,617		2,818		2,782		2,852		48		54
2015						1,902		1,630		1,400		1,359		1,406		1,310		1,307		1,280		—		50
2016								3,314		1,812		1,865		1,876		1,865		1,678		1,670		—		47
2017										4,677		3,671		3,799		3,629		3,514		3,440		6		63
2018												3,528		1,938		1,381		956		767		1		64
2019														2,130		657		630		513		11		31
2020																2,263		574		465		—		23
2021																		2,936		1,455		318		35
2022																				3,202		1,476		36
																			$	18,395

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	323	$	1,010	$	1,369	$	2,763	$	2,789	$	2,749	$	2,765	$	2,757	$	2,753	$	2,751
2014				1,331		2,327		2,727		2,739		2,664		2,593		2,562		2,562		2,568
2015						641		856		1,127		1,125		1,128		1,271		1,273		1,279
2016								1,054		1,732		1,772		1,873		1,862		1,677		1,670
2017										1,971		3,255		3,523		3,545		3,442		3,402
2018												1,157		1,454		1,361		941		760
2019														259		395		568		446
2020																97		460		464
2021																		156		803
2022																				970
																			$	15,113
All outstanding liabilities before 2013, net of reinsurance																				31
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	3,313

For the property and casualty lines of business, the number of claims presented above equals the number of occurrences by type of claim reported to the Company. The number of claims reported during a given year corresponds to the number of claims records opened during the year. Frequency information is maintained on a cumulative basis by accident year by line of business. For automobile claims, a claim count is separately maintained for bodily injury, property damage and physical damage claims. The Company has consistently monitored claim frequency on this basis, and believes this provides more meaningful information than using claimant count which can change over the course of settling a claim.

In general, when a claim is reported, claims representatives establish a “case reserve” for the estimated amount of the ultimate payment based on the known information of the claim at that time. Claims managers review and monitor all property and casualty claims in excess of $25,000. As new information becomes available or payments are made on a claim, the case reserve is adjusted to reflect the revised estimate of the ultimate amount to be paid out. Estimates and assumptions pertaining to individual claims are based on complex and subjective judgments and subject to change at any time as new information becomes available.

In addition to case reserves, IBNR reserves are established to provide for claims which have not been reported to the Company as of the reporting date as well as potential adverse development on known case reserves. IBNR reserve estimates are derived through a number of analytical techniques. Actuarial data is analyzed by line of business, coverage and accident year. Qualitative factors are also considered in determining IBNR reserves and include such factors as judicial decisions, general economic trends such as inflation, changes in policy forms, and underwriting changes. Reserves are reviewed quarterly and any indicated adjustments are made.

Because of the inherent uncertainties in establishing both case and IBNR reserves, ultimate loss experience may prove better or worse than indicated by the combined claim reserves. Adjustments to claim reserves are reflected in the period recognized and could increase or decrease earnings for the period.

The following is supplementary information about average historical claims duration as of December 31, 2022.

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Reserve Line	1^st Year			2^nd Year			3^rd Year			4^th Year			5^th Year			6^th Year			7^th Year			8^th Year			9^th Year			10^th Year
Medicare Supplement		82.4	%		16.9	%		0.2	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Automobile Liability		27.2	%		29.9	%		17.6	%		12.2	%		7.3	%		2.9	%		1.4	%		0.2	%		0.4	%		-0.1	%
Automobile Physical Damage		83.1	%		15.5	%		-0.5	%		-0.3	%		0.4	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
General Liability		20.1	%		20.7	%		21.9	%		16.5	%		11.6	%		5.9	%		0.3	%		2.1	%		0.7	%		0.0	%
Surety		49.2	%		38.0	%		10.1	%		-3.0	%		-4.8	%		-1.0	%		-0.2	%		0.1	%		0.0	%		-0.1	%

The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows:

	December 31, 2022
Net outstanding liabilities
Medicare Supplement	$	12,916
Automobile Liability		43,201
Automobile Physical Damage		2,648
General Liability		3,826
Surety		3,313
Other short-duration insurance lines		1,212
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance		67,116

Reinsurance recoverable on unpaid losses:
Medicare Supplement		9,382
Automobile Liability		5,086
Automobile Physical Damage		334
General Liability		2,451
Other short-duration insurance lines		394
Total reinsurance recoverable on unpaid losses		17,647

Unallocated claims adjustment expenses		2,721

Total gross liability for unpaid losses, claims and loss adjustment expenses	$	87,484

Preferred Stock

12 Months Ended

Dec. 31, 2022

Preferred Stock [Abstract]

Preferred Stock

Note 12.

Preferred Stock

The Company had 55,000 shares of Series D preferred stock (“Series D Preferred Stock”) outstanding at December 31, 2022 and 2021, respectively. All of the shares of Series D Preferred Stock are held by an affiliate of the Company’s controlling shareholder. The outstanding shares of Series D Preferred Stock have a par value of $1 per share and a redemption value of $100 per share; accrue annual dividends at a rate of $7.25 per share (payable in cash or shares of the Company’s common stock at the option of the board of directors of the Company) and are cumulative. In certain circumstances, the shares of the Series D Preferred Stock may be convertible into an aggregate of approximately 1,378,000 shares of the Company’s common stock, subject to certain adjustments and provided that such adjustments do not result in the Company issuing more than approximately 2,703,000 shares of common stock without obtaining prior shareholder approval; and are redeemable solely at the Company’s option. The Series D Preferred Stock is not currently convertible. The Company had accrued, but unpaid, dividends, on the Series D Preferred Stock of $18 at December 31, 2022 and 2021. During each of 2022 and 2021, the Company paid Series D Preferred Stock dividends of $399.

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

ASSETS [Abstract]

Cash and cash equivalents

$ 28,863

$ 24,753

Investments

228,712

283,442

Investments in unconsolidated trusts

1,238

Deferred tax asset, net

14,163

1,755

Other assets

9,202

8,719

Total assets

367,064

402,286

LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]

Other payables

26,473

25,465

Revolving credit facility

2,009

Junior subordinated debentures

33,738

Total liabilities

264,871

261,000

Shareholders' equity

102,193

141,286

Total liabilities and shareholders' equity

367,064

402,286

REVENUE [Abstract]

Unrealized gains (losses) on equity securities, net

(7,562)

1,894

Other

Total revenue

187,851

199,554

INTEREST EXPENSE

1,952

1,387

INCOME TAX BENEFIT

(571)

(1,021)

Net income

1,525

4,281

CASH FLOWS FROM OPERATING ACTIVITIES [Abstract]

Net income

1,525

4,281

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

Unrealized losses (gains) on equity securities, net

7,562

(1,894)

Depreciation and amortization

890

1,003

Compensation expense related to share awards

134

211

Earnings from equity method investees

(241)

290

Deferred income tax benefit

(1,819)

(1,112)

(Decrease) increase in accounts payable and accrued expenses

1,008

(947)

Other, net

(923)

(1,420)

Net cash (used in) provided by operating activities

6,453

1,088

CASH FLOWS FROM INVESTING ACTIVITIES [Abstract]

Additions to property and equipment

(126)

(107)

Net cash (used in) provided by investing activities

(3,428)

5,300

CASH FLOWS FROM FINANCING ACTIVITIES [Abstract]

Payment of dividends on Series D preferred stock

(399)

Payment of dividends on common stock

(408)

Proceeds from shares issued under stock plans

Proceeds from revolving credit facility, net

2,000

Treasury stock acquired - net employee share-based compensation

(108)

(153)

Net cash provided by (used in) financing activities

1,085

(954)

Net increase (decrease) in cash

4,110

5,434

Cash and cash equivalents at beginning of year

24,753

19,319

Cash and cash equivalents at end of year

28,863

24,753

Supplemental disclosure [Abstract]

Cash paid for interest

1,794

1,389

Cash paid for income taxes

2,764

3,202

Parent Company [Member]

ASSETS [Abstract]

Cash and cash equivalents

2,680

1,718

Investments

2,278

2,749

Investment in subsidiaries

113,079

164,535

Investments in unconsolidated trusts

1,238

Deferred tax asset, net

14,163

1,237

Income taxes receivable from subsidiaries

1,951

2,171

Other assets

6,681

5,791

Total assets

142,070

179,439

LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]

Other payables

4,130

4,415

Revolving credit facility

2,009

Junior subordinated debentures

33,738

Total liabilities

39,877

38,153

Shareholders' equity

102,193

141,286

Total liabilities and shareholders' equity

142,070

179,439

REVENUE [Abstract]

Fee income from subsidiaries

7,624

7,380

Distributed earnings from subsidiaries

7,200

8,400

Unrealized gains (losses) on equity securities, net

(484)

230

Other

(247)

Total revenue

14,433

15,763

GENERAL AND ADMINISTRATIVE EXPENSES

13,583

13,654

INTEREST EXPENSE

1,952

1,387

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

(1,102)

722

INCOME TAX BENEFIT

^[1]

(3,934)

(2,840)

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

2,832

3,562

EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET

(1,307)

719

Net income

1,525

4,281

CASH FLOWS FROM OPERATING ACTIVITIES [Abstract]

Net income

1,525

4,281

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

Unrealized losses (gains) on equity securities, net

484

(230)

Depreciation and amortization

515

538

Compensation expense related to share awards

134

211

Earnings from equity method investees

(294)

Equity in undistributed earnings of subsidiaries, net

1,307

(719)

Decrease (increase) in intercompany taxes

220

(489)

Deferred income tax benefit

(2,336)

(1,058)

(Decrease) increase in accounts payable and accrued expenses

(285)

Other, net

(1,348)

(1,966)

Net cash (used in) provided by operating activities

(78)

631

CASH FLOWS FROM INVESTING ACTIVITIES [Abstract]

Additions to property and equipment

(45)

(49)

Net cash (used in) provided by investing activities

(45)

(49)

CASH FLOWS FROM FINANCING ACTIVITIES [Abstract]

Payment of dividends on Series D preferred stock

(399)

Payment of dividends on common stock

(408)

Proceeds from shares issued under stock plans

Proceeds from revolving credit facility, net

2,000

Treasury stock acquired - net employee share-based compensation

(108)

(153)

Net cash provided by (used in) financing activities

1,085

(954)

Net increase (decrease) in cash

962

(372)

Cash and cash equivalents at beginning of year

1,718

2,090

Cash and cash equivalents at end of year

2,680

1,718

Supplemental disclosure [Abstract]

Cash paid for interest

1,794

1,389

Cash paid for income taxes

2,764

3,202

Intercompany tax settlement from subsidiaries

$ 3,946

$ 6,734

[1]

Investments, Income Earned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Investment income earned [Abstract]
Gross investment income	$ 10,197	$ 8,829
Investment expenses	265	301
Net investment income	9,932	8,528
Fixed Maturities [Member]
Investment income earned [Abstract]
Gross investment income	9,141	8,640
Equity Securities [Member]
Investment income earned [Abstract]
Gross investment income	327	300
Other [Member]
Investment income earned [Abstract]
Gross investment loss	$ 729	$ (111)

Schedule III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Supplementary Insurance Information by Segment [Abstract]

Deferred Acquisition Costs

$ 42,281

$ 38,698

Future Policy Benefits, Losses, Claims and Loss Reserves

173,048

^[1]

172,968

^[2]

Unearned Premiums

28,348

27,469

Other Policy Claims and Benefits Payable

1,255

1,360

Liability for future policy benefits

85,564

87,348

Losses and claims

87,484

85,620

$ 79,147

Premium Revenue

185,440

184,216

Net Investment Income

9,932

8,528

Benefits, Claims, Losses and Settlement Expenses

123,456

131,694

Amortization of Deferred Acquisition Costs

19,445

24,064

Other Operating Expenses

42,854

38,494

Casualty Premiums Written

72,671

69,403

Bankers Fidelity [Member]

Supplementary Insurance Information by Segment [Abstract]

Deferred Acquisition Costs

39,880

36,308

Future Policy Benefits, Losses, Claims and Loss Reserves

110,238

115,712

Unearned Premiums

2,814

3,689

Other Policy Claims and Benefits Payable

1,255

1,360

Premium Revenue

115,164

116,234

Net Investment Income

5,414

5,204

Benefits, Claims, Losses and Settlement Expenses

76,281

87,261

Amortization of Deferred Acquisition Costs

9,295

13,465

Other Operating Expenses

24,627

21,250

Casualty Premiums Written

American Southern [Member]

Supplementary Insurance Information by Segment [Abstract]

Deferred Acquisition Costs

2,401

2,390

Future Policy Benefits, Losses, Claims and Loss Reserves

62,810

57,256

Unearned Premiums

25,534

23,780

Other Policy Claims and Benefits Payable

Premium Revenue

70,276

67,982

Net Investment Income

4,147

3,570

Benefits, Claims, Losses and Settlement Expenses

47,175

44,433

Amortization of Deferred Acquisition Costs

10,150

10,599

Other Operating Expenses

10,011

9,544

Casualty Premiums Written

72,671

69,403

Corporate and Other [Member]

Supplementary Insurance Information by Segment [Abstract]

Premium Revenue

Net Investment Income

371

(246)

Benefits, Claims, Losses and Settlement Expenses

Amortization of Deferred Acquisition Costs

Other Operating Expenses

8,216

7,700

Casualty Premiums Written

$ 0

[1]	Includes future policy benefits of $85,564 and losses and claims of $87,484.
[2]	Includes future policy benefits of $87,348 and losses and claims of $85,620.

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 208,729	$ 260,986
Amortized cost total	236,766	238,597
Estimated fair value	11,562	19,124
Cost	4,907	4,907
Amortized cost of bonds on deposit with insurance regulatory authorities	12,333	11,169
Bonds Pledged as Collateral [Member] \| FHLB Advances [Member]
Investments aggregated by type and industry [Abstract]
Amortized cost pledged as collateral to FHLB	7,221	5,371
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	208,729	260,986
Gross unrealized gains	753	23,106
Gross unrealized losses	28,790	717
Amortized cost total	236,766	238,597
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	44,412	50,298
Gross unrealized gains	5	763
Gross unrealized losses	5,926	416
Amortized cost total	50,333	49,951
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	9,187	11,644
Gross unrealized gains	4	749
Gross unrealized losses	1,702	0
Amortized cost total	10,885	10,895
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	154,907	198,794
Gross unrealized gains	713	21,536
Gross unrealized losses	21,162	301
Amortized cost total	175,356	177,559
Corporate Securities [Member] \| Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	22,090	29,717
Gross unrealized gains	120	2,961
Gross unrealized losses	3,299	44
Amortized cost total	25,269	26,800
Corporate Securities [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	59,054	70,921
Gross unrealized gains	397	6,759
Gross unrealized losses	7,085	48
Amortized cost total	65,742	64,210
Corporate Securities [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	31,058	40,216
Gross unrealized gains	161	4,631
Gross unrealized losses	4,689	106
Amortized cost total	35,586	35,691
Corporate Securities [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	42,705	57,940
Gross unrealized gains	35	7,185
Gross unrealized losses	6,089	103
Amortized cost total	48,759	50,858
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	223	250
Gross unrealized gains	31	58
Gross unrealized losses	0	0
Amortized cost total	192	192
Redeemable Preferred Stocks [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	223	250
Gross unrealized gains	31	58
Gross unrealized losses	0	0
Amortized cost total	192	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	11,562	19,124
Gross unrealized gains	6,655	14,217
Gross unrealized losses	0	0
Cost	4,907	4,907
Common and Non-redeemable Preferred Stocks [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	790	799
Gross unrealized gains	516	525
Gross unrealized losses	0	0
Cost	274	274
Common and Non-redeemable Preferred Stocks [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	10,772	18,325
Gross unrealized gains	6,139	13,692
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Statutory Reporting

12 Months Ended

Dec. 31, 2022

Statutory Reporting [Abstract]

Statutory Reporting

Note 14.

Statutory Reporting

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

The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and capital and surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:

	2022		2021
Bankers Fidelity, net income (loss)	$	3,865	$	(364	)
American Southern, net income		5,743		7,688
Statutory net income	$	9,608	$	7,324

Bankers Fidelity, capital and surplus	$	36,672	$	38,625
American Southern, capital and surplus		53,023		52,724
Statutory capital and surplus	$	89,695	$	91,349

Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $7,200 and $8,400 in the years ended 2022 and 2021, respectively, from its subsidiaries. In 2022, dividend payments to the Parent by the insurance subsidiaries in excess of $8,739 would require prior approval.

Insurance Reserves and Policyholder Funds, Average Historical Claims Duration (Details)	Dec. 31, 2022
Medicare Supplement [Member]
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract]
1st Year	82.40%
2nd Year	16.90%
3rd Year	0.20%
4th Year	0.00%
5th Year	0.00%
6th Year	0.00%
7th Year	0.00%
8th Year	0.00%
9th Year	0.00%
10th Year	0.00%
Automobile Liability [Member]
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract]
1st Year	27.20%
2nd Year	29.90%
3rd Year	17.60%
4th Year	12.20%
5th Year	7.30%
6th Year	2.90%
7th Year	1.40%
8th Year	0.20%
9th Year	0.40%
10th Year	(0.10%)
Automobile Physical Damage [Member]
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract]
1st Year	83.10%
2nd Year	15.50%
3rd Year	(0.50%)
4th Year	(0.30%)
5th Year	0.40%
6th Year	0.00%
7th Year	0.00%
8th Year	0.00%
9th Year	0.00%
10th Year	0.00%
General Liability [Member]
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract]
1st Year	20.10%
2nd Year	20.70%
3rd Year	21.90%
4th Year	16.50%
5th Year	11.60%
6th Year	5.90%
7th Year	0.30%
8th Year	2.10%
9th Year	0.70%
10th Year	0.00%
Surety [Member]
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract]
1st Year	49.20%
2nd Year	38.00%
3rd Year	10.10%
4th Year	(3.00%)
5th Year	(4.80%)
6th Year	(1.00%)
7th Year	(0.20%)
8th Year	0.10%
9th Year	0.00%
10th Year	(0.10%)

Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract]
Deferred Policy Acquisition Costs	$ 2,401	$ 2,390
Reserves	62,810	57,256
Unearned Premiums	25,534	23,780
Earned Premiums	70,276	67,982
Net Investment Income	4,147	3,570
Claims and Claim Adjustment Expenses Incurred Related To Current Year	48,692	48,678
Claims and Claim Adjustment Expenses Incurred Related To Prior Years	(1,517)	(4,245)
Amortization of Deferred Acquisition Costs	10,150	10,599
Paid Claims and Claim Adjustment Expenses	42,948	40,370
Premiums Written	$ 72,671	$ 69,403

Investments

12 Months Ended

Dec. 31, 2022

Investments [Abstract]

Investments

Note 2.

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 December 31, 2022 and December 31, 2021.

Fixed maturities were comprised of the following:

	2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	44,412	$	5	$	5,926	$	50,333
Obligations of states and political subdivisions		9,187		4		1,702		10,885
Corporate securities:
Utilities and telecom		22,090		120		3,299		25,269
Financial services		59,054		397		7,085		65,742
Other business – diversified		31,058		161		4,689		35,586
Other consumer – diversified		42,705		35		6,089		48,759
Total corporate securities		154,907		713		21,162		175,356
Redeemable preferred stocks:
Other consumer – diversified		223		31		—		192
Total redeemable preferred stocks		223		31		—		192
Total fixed maturities	$	208,729	$	753	$	28,790	$	236,766

	2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	50,298	$	763	$	416	$	49,951
Obligations of states and political subdivisions		11,644		749		—		10,895
Corporate securities:
Utilities and telecom		29,717		2,961		44		26,800
Financial services		70,921		6,759		48		64,210
Other business – diversified		40,216		4,631		106		35,691
Other consumer – diversified		57,940		7,185		103		50,858
Total corporate securities		198,794		21,536		301		177,559
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	260,986	$	23,106	$	717	$	238,597

Bonds having an amortized cost of $12,333 and $11,169 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2022 and 2021, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $7,221 and $5,371 and included in the tables above were pledged as collateral to FHLB at December 31, 2022 and 2021, respectively.

	2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		790		516		—		274
Other business – diversified		10,772		6,139		—		4,633
Total equity securities	$	11,562	$	6,655	$	—	$	4,907

	2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		799		525		—		274
Other business – diversified		18,325		13,692		—		4,633
Total equity securities	$	19,124	$	14,217	$	—	$	4,907

The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2022 and 2021 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.

	2022				2021
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	3,776	$	3,797	$	1,734	$	1,730
Due after one year through five years		40,150		42,174		24,926		23,593
Due after five years through ten years		44,044		49,711		73,725		68,338
Due after ten years		87,719		103,095		122,045		106,181
Asset backed securities		33,040		37,989		38,556		38,755
Totals	$	208,729	$	236,766	$	260,986	$	238,597

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2022 and 2021.

	2022
	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	$	23,763	$	2,410	$	19,259	$	3,516	$	43,022	$	5,926
Obligations of states and political subdivisions		8,183		1,702		—		—		8,183		1,702
Corporate securities		127,928		16,214		14,514		4,948		142,442		21,162
Total temporarily impaired securities	$	159,874	$	20,326	$	33,773	$	8,464	$	193,647	$	28,790

	2021
	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	$	30,141	$	416	$	—	$	—	$	30,141	$	416
Corporate securities		3,326		49		4,761		252		8,087		301
Total temporarily impaired securities	$	33,467	$	465	$	4,761	$	252	$	38,228	$	717

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 years ended December 31, 2022 and 2021.

As of December 31, 2022 and 2021, there were 237 and 61 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 increase in the number and value of securities in an unrealized loss position during the year ended December 31, 2022, was primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising 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 December 31, 2022.

Investment income was earned from the following sources:

	2022		2021
Fixed maturities	$	9,141	$	8,640
Equity securities		327		300
Other		729		(111	)
		10,197		8,829
Investment expenses		265		301
Net investment income	$	9,932	$	8,528

A summary of realized investment gains (losses) follows:

	2022
	Fixed Maturities			Equity Securities		Other Invested Assets			Total
Gains	$	101		$	—	$	1		$	102
Losses		(52	)		—		(20	)		(72	)
Realized investment gains, net	$	49		$	—	$	(19	)	$	30

	2021
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	570	$	—	$	4,333	$	4,903
Losses		—		—		—		—
Realized investment gains, net	$	570	$	—	$	4,333	$	4,903

Proceeds from the sales of available-for-sale fixed maturities were as follows:

	2022		2021
Sales proceeds	$	3,649	$	9,244
Gross gains		101		454
Gross losses		—		—

Proceeds from the sales of equity securities were as follows:

	2022		2021
Sales proceeds	$	1	$	61
Gross gains		—		—
Gross losses		—		—

Proceeds from the sales of other invested assets were as follows:

	2022			2021
Sales proceeds	$	161		$	19,761
Gross gains		1			4,333
Gross losses		(20	)		—

Sales of available-for-sale securities in 2022 and 2021 were primarily a result of improving the overall risk versus return profile of the portfolio. In addition, the Company sold its interest in a certain limited liability company held as other invested assets to a third-party.

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31, 2022 and 2021.

	2022			2021
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	(7,562	)	$	1,894
Less: Net realized gains recognized during the period on equity securities sold during the period		—			—
Unrealized gains (losses) on equity securities, net	$	(7,562	)	$	1,894

The Company’s bond portfolio included 99% investment grade securities, as defined by the NAIC, at December 31, 2022.

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 $5,386 and $198 at December 31, 2022 and 2021, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 at December 31, 2022 and 2021.

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 $6,624 and $1,436, at December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company had outstanding commitments totaling $5,872 and $1,997, respectively, 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.

Statutory Reporting (Tables)

12 Months Ended

Dec. 31, 2022

Statutory Reporting [Abstract]

Reported Statutory Net Income and Capital and Surplus for the Parent's Insurance Subsidiaries

	2022		2021
Bankers Fidelity, net income (loss)	$	3,865	$	(364	)
American Southern, net income		5,743		7,688
Statutory net income	$	9,608	$	7,324

Bankers Fidelity, capital and surplus	$	36,672	$	38,625
American Southern, capital and surplus		53,023		52,724
Statutory capital and surplus	$	89,695	$	91,349

- Definition

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

+ References + Details

Deferred Policy Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2022

Deferred Policy Acquisition Costs [Abstract]

Deferred Policy Acquisition Costs by Segment

The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.

	2022						2021
	American Southern			Bankers Fidelity			American Southern			Bankers Fidelity
Deferred policy acquisition costs:
Balance, beginning of year	$	2,390		$	36,308		$	2,299		$	37,312
Capitalization		10,161			12,867			10,690			12,461
Amortization		(10,150	)		(9,295	)		(10,599	)		(13,465	)
Balance, end of year	$	2,401		$	39,880		$	2,390		$	36,308

Benefit Plans, 401(k) Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
401(k) Plan [Abstract]
Maximum percentage of compensation employees may defer	50.00%
Total matching contribution	$ 255	$ 272
Employer maximum contribution to plan	35.00%	35.00%
Percentage of participants contribution	6.00%	6.00%
Safe harbor non-elective contribution	3.00%	3.00%
Safe harbor non-elective contribution	$ 569	$ 549
Employer contribution graded vesting period	5 years

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Basic Earnings Per Common Share [Abstract]
Net income before preferred stock dividends	$ 1,525	$ 4,281
Less preferred stock dividends	(399)	(399)
Net income applicable to common shareholders	1,126	3,882
Diluted Earnings Per Common Share: [Abstract]
Net income applicable to common shareholders	$ 1,126	$ 3,882
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,390	20,402
Weighted average shares outstanding, Diluted (in shares)	20,390	20,402
Per Share Amount, Basic [Abstract]
Net income applicable to common shareholders, Basic (in dollars per share)	$ 0.06	$ 0.19
Per Share Amount, Diluted [Abstract]
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.06	$ 0.19

Disclosures About Fair Value of Financial Instruments, Carrying Amount, Estimated Fair Value and Level (Details) - USD ($)
$ in Thousands

Dec. 31, 2022

Dec. 31, 2021

Assets [Abstract]

Fixed maturities

$ 208,729

$ 260,986

Equity securities

11,562

19,124

Carrying Amount [Member]

Assets [Abstract]

Fixed maturities

^[1]

208,729

260,986

Equity securities

^[1]

11,562

19,124

Carrying Amount [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

28,863

24,753

Carrying Amount [Member] | Level 2 [Member]

Assets [Abstract]

Policy loans

1,759

1,858

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,738

Revolving credit facility

2,009

Carrying Amount [Member] | Level 3 [Member]

Assets [Abstract]

Other invested assets

5,386

198

Estimated Fair Value [Member]

Assets [Abstract]

Fixed maturities

^[1]

208,729

260,986

Equity securities

^[1]

11,562

19,124

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

Assets [Abstract]

Cash and cash equivalents

28,863

24,753

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

Assets [Abstract]

Policy loans

1,759

1,858

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,810

33,728

Revolving credit facility

2,009

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

Assets [Abstract]

Other invested assets

$ 5,386

$ 198

[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.

Statutory Reporting (Details) - USD ($) $ in Thousands	12 Months Ended
Statutory Reporting (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statutory Net Income and Surplus [Abstract]
Dividends received from its subsidiaries	$ 7,200	$ 8,400
Maximum dividend payments by insurance subsidiaries without requiring prior approval	8,739
Statutory Accounting Practices [Member]
Statutory Net Income and Surplus [Abstract]
Statutory net income (loss)	9,608	7,324
Statutory capital and surplus	89,695	91,349
Statutory Accounting Practices [Member] \| Bankers Fidelity [Member]
Statutory Net Income and Surplus [Abstract]
Statutory net income (loss)	3,865	(364)
Statutory capital and surplus	36,672	38,625
Statutory Accounting Practices [Member] \| American Southern [Member]
Statutory Net Income and Surplus [Abstract]
Statutory net income (loss)	5,743	7,688
Statutory capital and surplus	$ 53,023	$ 52,724

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Note 10.

Leases

The Company has 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 through 2026. 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 each of the years ended December 31, 2022 and 2021 was $1,014.

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

	Year Ended December 31, 2022			Year Ended December 31, 2021
Other information on operating leases:
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	1,031			1,015
Right-of-use assets included in other assets on the consolidated balance sheet		3,405			4,143
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	3.9 years			4.9 years

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

	Lease Liability
2023	$	1,048
2024		1,065
2025		1,083
2026		942
2027		—
Thereafter		—
Total undiscounted lease payments		4,138
Less: present value adjustment		515
Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet	$	3,623

As of December 31, 2022, the Company has no operating leases that have not yet commenced.

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Preferred Stock [Abstract]
Preferred Stock, outstanding (in shares)	55,000	55,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Series D Preferred Stock [Member]
Preferred Stock [Abstract]
Preferred Stock, outstanding (in shares)	55,000	55,000
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, redemption value (in dollars per share)	100	100
Accrued annual dividends rate (in dollars per share)	$ 7.25	$ 7.25
Number of preferred stock shares convertible to common shares (in shares)	1,378,000	1,378,000
Maximum number of common stock issuable from conversion of preference shares, without obtaining prior shareholder approval (in shares)	2,703,000	2,703,000
Dividends accrued but unpaid	$ 18	$ 18
Dividends paid on preferred stock	$ 399	$ 399

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 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, 2020	$ 55	$ 22,401	$ 57,437	$ 47,790	$ 25,000	$ (284)	$ (7,339)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				4,281				$ 4,281
Other comprehensive loss, net of tax					(7,312)			(7,312)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(399)
Restricted stock grants, net of forfeitures			0			0	0
Amortization of unearned compensation						211
Net shares acquired related to employee share-based compensation plans							(153)
Issuance of shares under stock plans			4				2
Balance, end of period at Dec. 31, 2021	55	$ 22,401	57,441	51,264	17,688	(73)	(7,490)	$ 141,286
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2020		20,415,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(38,147)
Issuance of shares under stock plans (in shares)		1,480
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Dec. 31, 2021		20,378,576						20,378,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				1,525				$ 1,525
Other comprehensive loss, net of tax					(39,837)			(39,837)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(399)
Restricted stock grants, net of forfeitures			(16)			(193)	209
Amortization of unearned compensation						134
Net shares acquired related to employee share-based compensation plans							(108)
Issuance of shares under stock plans			0				0
Balance, end of period at Dec. 31, 2022	$ 55	$ 22,401	$ 57,425	$ 51,982	$ (22,149)	$ (132)	$ (7,389)	$ 102,193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)								$ 0.02
Net shares acquired under employee share-based compensation plans (in shares)		(36,347)
Issuance of shares under stock plans (in shares)		0
Restricted stock grants, net of forfeitures (in shares)		65,000
Balance, end of period (in shares) at Dec. 31, 2022		20,407,229						20,407,229

Insurance Reserves and Policyholder Funds, Future Policy Benefits (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Reserves for life, accident and health [Abstract]

Future policy benefits

$ 85,564

$ 87,348

Amount of insurance in force, net

661,013

406,993

Unearned premiums

28,348

27,469

Losses, claims and loss adjustment expenses

87,484

85,620

Other policy liabilities

1,255

1,360

Total insurance reserves and policyholder funds

202,651

201,797

Annualized premiums for accident and health insurance policies

89,471

101,315

Summary of activity in liability for unpaid loss and claim reserves [Roll Forward]

Balance at January 1

85,620

79,147

Less: Reinsurance recoverable on unpaid losses

(17,690)

(17,600)

Net balance at January 1

67,930

61,547

Incurred related to [Abstract]

Current year

125,754

134,284

Prior years

(4,228)

^[1]

(3,415)

^[2]

Total incurred

121,526

130,869

Paid related to [Abstract]

Current year

82,002

89,838

Prior years

37,617

34,648

Total paid

119,619

124,486

Net balance at December 31

69,837

67,930

Plus: Reinsurance recoverable on unpaid losses

17,647

17,690

Balance at December 31

87,484

85,620

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

Total incurred losses

121,526

130,869

Cash surrender value and matured endowments

1,598

2,179

Benefit reserve changes

332

(1,354)

Total insurance benefits and losses incurred

123,456

131,694

Ordinary Life and Annuities [Member]

Reserves for life, accident and health [Abstract]

Future policy benefits

50,660

51,947

Amount of insurance in force, net

186,863

194,210

Group Life [Member]

Reserves for life, accident and health [Abstract]

Future policy benefits

2,533

1,094

Amount of insurance in force, net

474,150

212,783

Life Insurance Segment [Member]

Reserves for life, accident and health [Abstract]

Future policy benefits

53,193

53,041

Amount of insurance in force, net

661,013

406,993

Accident and Health Insurance [Member]

Reserves for life, accident and health [Abstract]

Future policy benefits

$ 32,371

$ 34,307

Life, Accident and Health Insurance [Member] | Prior to 1977 [Member]

Future policy benefits [Abstract]

Policy issue range for future benefits assumptions

prior to 1977

Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Minimum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

2.50%

Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Maximum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

5.50%

Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member]

Future policy benefits [Abstract]

Policy issue range for future benefits assumptions

1977 through 1979

Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Minimum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

5.50%

Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Maximum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

7.00%

Life, Accident and Health Insurance [Member] | 1980 through 1987 [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

9.00%

Policy issue range for future benefits assumptions

1980 through 1987

Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member]

Future policy benefits [Abstract]

Policy issue range for future benefits assumptions

1988 through 2009

Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Minimum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

5.00%

Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Maximum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

7.00%

Life, Accident and Health Insurance [Member] | 2010 through 2012 [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

4.00%

Policy issue range for future benefits assumptions

2010 through 2012

Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member]

Future policy benefits [Abstract]

Policy issue range for future benefits assumptions

2013 through 2020

Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Minimum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

3.50%

Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Maximum [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

4.00%

Life, Accident and Health Insurance [Member] | 2021 [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

3.00%

Policy issue range for future benefits assumptions

2021

Life, Accident and Health Insurance [Member] | 2022 [Member]

Future policy benefits [Abstract]

Interest rates assumed for future policy benefits

3.00%

Policy issue range for future benefits assumptions

2022

[1]	Prior years’ development was primarily the result of better than expected development on prior year’s loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity, as well as the surety line of business in American Southern.
[2]	Prior years’ development was primarily the result of better than expected development on prior year’s loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years’ loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity.

Summary of Significant Accounting Policies, Recently Issued Accounting Standards (Details) $ in Millions	Dec. 31, 2022 USD ($)
ASU 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses	$ 0.1

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of realized investment gains [Abstract]
Gains	$ 102	$ 4,903
Losses	(72)	0
Realized investment Losses (gains), net	30	4,903
Fixed Maturities [Member]
Summary of realized investment gains [Abstract]
Gains	101	570
Losses	(52)	0
Realized investment Losses (gains), net	49	570
Proceeds from sales of available-for-sale fixed maturities [Abstract]
Sales proceeds	3,649	9,244
Gross gains	101	454
Gross losses	0	0
Equity Securities [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	0
Realized investment Losses (gains), net	0	0
Proceeds from sales of equity securities [Abstract]
Sales proceeds	1	61
Gross gains	0	0
Gross losses	0	0
Other Invested Assets [Member]
Summary of realized investment gains [Abstract]
Gains	1	4,333
Losses	(20)	0
Realized investment Losses (gains), net	(19)	4,333
Proceeds from Sales of other invested assets [Abstract]
Sales proceeds	161	19,761
Gross gains	1	4,333
Gross losses	$ (20)	$ 0

Investments (Tables)

12 Months Ended

Dec. 31, 2022

Investments [Abstract]

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	44,412	$	5	$	5,926	$	50,333
Obligations of states and political subdivisions		9,187		4		1,702		10,885
Corporate securities:
Utilities and telecom		22,090		120		3,299		25,269
Financial services		59,054		397		7,085		65,742
Other business – diversified		31,058		161		4,689		35,586
Other consumer – diversified		42,705		35		6,089		48,759
Total corporate securities		154,907		713		21,162		175,356
Redeemable preferred stocks:
Other consumer – diversified		223		31		—		192
Total redeemable preferred stocks		223		31		—		192
Total fixed maturities	$	208,729	$	753	$	28,790	$	236,766

	2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	50,298	$	763	$	416	$	49,951
Obligations of states and political subdivisions		11,644		749		—		10,895
Corporate securities:
Utilities and telecom		29,717		2,961		44		26,800
Financial services		70,921		6,759		48		64,210
Other business – diversified		40,216		4,631		106		35,691
Other consumer – diversified		57,940		7,185		103		50,858
Total corporate securities		198,794		21,536		301		177,559
Redeemable preferred stocks:
Other consumer – diversified		250		58		—		192
Total redeemable preferred stocks		250		58		—		192
Total fixed maturities	$	260,986	$	23,106	$	717	$	238,597

	2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		790		516		—		274
Other business – diversified		10,772		6,139		—		4,633
Total equity securities	$	11,562	$	6,655	$	—	$	4,907

	2021
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		799		525		—		274
Other business – diversified		18,325		13,692		—		4,633
Total equity securities	$	19,124	$	14,217	$	—	$	4,907

Amortized Cost and Carrying Value of Fixed Maturities by Contractual Maturity

	2022				2021
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	3,776	$	3,797	$	1,734	$	1,730
Due after one year through five years		40,150		42,174		24,926		23,593
Due after five years through ten years		44,044		49,711		73,725		68,338
Due after ten years		87,719		103,095		122,045		106,181
Asset backed securities		33,040		37,989		38,556		38,755
Totals	$	208,729	$	236,766	$	260,986	$	238,597

Investment Securities with Continuous Unrealized Loss Position

	2022
	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	$	23,763	$	2,410	$	19,259	$	3,516	$	43,022	$	5,926
Obligations of states and political subdivisions		8,183		1,702		—		—		8,183		1,702
Corporate securities		127,928		16,214		14,514		4,948		142,442		21,162
Total temporarily impaired securities	$	159,874	$	20,326	$	33,773	$	8,464	$	193,647	$	28,790

	2021
	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	$	30,141	$	416	$	—	$	—	$	30,141	$	416
Corporate securities		3,326		49		4,761		252		8,087		301
Total temporarily impaired securities	$	33,467	$	465	$	4,761	$	252	$	38,228	$	717

Investment Income Earned

Investment income was earned from the following sources:

	2022		2021
Fixed maturities	$	9,141	$	8,640
Equity securities		327		300
Other		729		(111	)
		10,197		8,829
Investment expenses		265		301
Net investment income	$	9,932	$	8,528

Summary of Realized Investment Gains (Losses)

A summary of realized investment gains (losses) follows:

	2022
	Fixed Maturities			Equity Securities		Other Invested Assets			Total
Gains	$	101		$	—	$	1		$	102
Losses		(52	)		—		(20	)		(72	)
Realized investment gains, net	$	49		$	—	$	(19	)	$	30

	2021
	Fixed Maturities		Equity Securities		Other Invested Assets		Total
Gains	$	570	$	—	$	4,333	$	4,903
Losses		—		—		—		—
Realized investment gains, net	$	570	$	—	$	4,333	$	4,903

Proceeds from Sales of Investments

Proceeds from the sales of available-for-sale fixed maturities were as follows:

	2022		2021
Sales proceeds	$	3,649	$	9,244
Gross gains		101		454
Gross losses		—		—

Proceeds from the sales of equity securities were as follows:

	2022		2021
Sales proceeds	$	1	$	61
Gross gains		—		—
Gross losses		—		—

Proceeds from the sales of other invested assets were as follows:

	2022			2021
Sales proceeds	$	161		$	19,761
Gross gains		1			4,333
Gross losses		(20	)		—

Unrealized Gains (Losses) on Equity Securities

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31, 2022 and 2021.

	2022			2021
Net realized and unrealized gains (losses) recognized during the period on equity securities	$	(7,562	)	$	1,894
Less: Net realized gains recognized during the period on equity securities sold during the period		—			—
Unrealized gains (losses) on equity securities, net	$	(7,562	)	$	1,894

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 1,525	$ 4,281
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred acquisition costs	19,445	24,064
Acquisition costs deferred	(23,028)	(23,151)
Realized investment gains, net	(30)	(4,903)
Unrealized losses (gains) on equity securities, net	7,562	(1,894)
(Earnings) loss from equity method investees	(241)	290
Compensation expense related to share awards	134	211
Depreciation and amortization	890	1,003
Deferred income tax benefit	(1,819)	(1,112)
Decrease in receivables, net	1,076	1,545
Increase in insurance reserves and policyholder funds	854	3,121
Increase (decrease) in accounts payable and accrued expenses	1,008	(947)
Other, net	(923)	(1,420)
Net cash (used in) provided by operating activities	6,453	1,088
Cash flows from investing activities:
Proceeds from investments sold	3,902	29,184
Proceeds from investments matured, called or redeemed	9,806	11,515
Investments purchased	(17,010)	(35,292)
Additions to property and equipment	(126)	(107)
Net cash (used in) provided by investing activities	(3,428)	5,300
Cash flows from financing activities:
Payment of dividends on Series D preferred stock	(399)	(399)
Payment of dividends on common stock	(408)	(408)
Proceeds from shares issued under stock plans	0	6
Treasury stock acquired - net employee share-based compensation	(108)	(153)
Proceeds from revolving credit facility, net	2,000	0
Net cash provided by (used in) financing activities	1,085	(954)
Net increase (decrease) in cash	4,110	5,434
Cash and cash equivalents at beginning of year	24,753	19,319
Cash and cash equivalents at end of year	28,863	24,753
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,794	1,389
Cash paid for income taxes	$ 2,764	$ 3,202

Disclosures About Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2022

Disclosures About Fair Value of Financial Instruments [Abstract]

Disclosures About Fair Value of Financial Instruments

Note 3.

Disclosures About Fair Value of Financial Instruments

The estimated fair values have been determined by the Company using available market information from various market sources and appropriate valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. 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. The Company’s financial instruments valued using Level 3 criteria consist of one fixed maturity security and one equity security. As of December 31, 2022 and December 31, 2021, the value of the fixed maturity valued using Level 3 criteria was $0 and $250, respectively. As of December 31, 2022 and December 31, 2021, the value of the equity security valued using Level 3 criteria was $156 and $157, respectively. The equity security is not traded and valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

Recurring Fair Value Measurements

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

Fixed Maturities and Common and Non-Redeemable Preferred Stocks. The carrying amount is determined from publicly quoted market prices. Certain fixed maturities do not have publicly quoted values and consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows discounted at reasonable estimated rates of interest. Other qualitative and quantitative information is also considered, as applicable.

Nonrecurring Fair Value Measurements

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

Policy Loans. Policy loans, which are categorized as Level 2 fair value measurements, are carried at the unpaid principal balances.

Junior Subordinated Debentures. The fair value is estimated based on observable interest rates and yields for debt instruments having similar characteristics.

As of December 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	—	$	208,729	$	—	$	208,729
Equity securities		11,406		—		156		11,562
Cash equivalents		18,861		—		—		18,861
Total	$	30,267	$	208,729	$	156	$	239,152

As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	250	$	260,486	$	250	$	260,986
Equity securities		18,967		—		157		19,124
Cash equivalents		12,713		—		—		12,713
Total	$	31,930	$	260,486	$	407	$	292,823

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 December 31, 2022 and 2021.

	Level in	2022				2021
	Fair Value Hierarchy⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	28,863	$	28,863	$	24,753	$	24,753
Fixed maturities	⁽¹⁾		208,729		208,729		260,986		260,986
Equity securities	⁽¹⁾		11,562		11,562		19,124		19,124
Other invested assets	Level 3		5,386		5,386		198		198
Policy loans	Level 2		1,759		1,759		1,858		1,858
Investments in unconsolidated trusts	Level 2		1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2		33,738		33,810		33,738		33,728
Revolving credit facility	Level 2		2,009		2,009		—		—

(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

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period. At December 31, 2022, the Parent owned five insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiaries, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company. American Southern Insurance Company also wholly-owned three non-insurance subsidiaries, Premier Adjusting and Claim Services, Inc., Automobile Safety Management, Inc. and Automated Systems of Georgia, Inc. (together with American Southern Insurance Company and American Safety Insurance Company known as “American Southern”). In addition, the Parent owned one non-insurance subsidiary, xCalibre Risk Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity.
Premium Revenue and Cost Recognition	Premium Revenue and Cost Recognition Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance).
Intangibles	Intangibles Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented.
Investments	Investments The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships and limited liability companies and are accounted for using the equity method. If the value of a fixed maturity security or other invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis. Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income.
Income Taxes	Income Taxes Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase.
Reinsurance	Reinsurance The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement. Property and Casualty Operations American Southern’s basic reinsurance treaties generally cover all claims in excess of specified per occurrence limitations. Limits per occurrence within the reinsurance treaties are as follows: Inland marine and commercial automobile physical damage - $225,000 excess of $125,000 retention; and automobile liability and general liability - excess coverage of $2.0 million less retentions that may vary from $100,000 to $500,000 depending on the account. American Southern maintains a property catastrophe treaty with a $5.5 million limit excess of $500,000 retention. American Southern also issues individual surety bonds with face amounts generally up to $1.5 million, and limited to $5.0 million in aggregate per account, that are not reinsured. Life and Health Operations Bankers Fidelity has entered into reinsurance contracts ceding the excess of its life retention. Maximum retention by Bankers Fidelity on any one individual in the case of life insurance policies is $200,000. At December 31, 2022, $9.6 million of the $670.6 million of life insurance in force at Bankers Fidelity was reinsured under a mix of coinsurance and yearly renewable term agreements. Certain prior year reinsurance agreements also remain in force although they no longer provide reinsurance for new business. Bankers Fidelity has also entered into a reinsurance contract ceding excess new Medicare supplement business to General Re Life Corporation. Ceding thresholds are set annually. During 2022, the liability of the reinsurer was 50% of all new Medicare supplement business issued by the Company on amounts up to a maximum retention of $15.0 million of annualized premium. Accordingly, $1.0 million of the Company’s $2.0 million of new annualized Medicare supplement premium was ceded.
Share-Based Transactions	Share-Based Transactions For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date.
Treasury Stock	Treasury Stock Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Adoption of New Accounting Standards Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The Company adopted ASU 2019-12 as of January 1, 2021. 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, 2024 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. Accounting for Long-Duration Contracts. In August 2018, the FASB issued ASU No. 2018-12, Financial Services —Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). This guidance (1) improves the timeliness of recognizing changes in the liability for future policy benefits and modifies the rate used to discount future cash flows, (2) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (3) simplifies the amortization of deferred acquisition costs, and (4) improves the effectiveness of the required disclosures. ASU 2018-12 is effective for interim and annual reporting periods beginning after December 15, 2024, although earlier adoption is permitted. The Company is currently evaluating the new guidance, but has not yet determined the method. The Company will adopt on January 1, 2025. Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates.

Schedule IV REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Life Insurance in Force [Abstract]
Direct Amount	$ 670,610	$ 416,480
Ceded To Other Companies	(9,597)	(9,487)
Assumed From Other Companies	0	0
Net Amounts	661,013	406,993
Premiums [Abstract]
Direct Amount	228,839	235,806
Ceded To Other Companies	(68,385)	(73,666)
Assumed From Other Companies	24,986	22,076
Net premiums earned	$ 185,440	$ 184,216
Percentage of Amount Assumed to Net	13.50%	12.00%
Bankers Fidelity [Member]
Premiums [Abstract]
Direct Amount	$ 176,995	$ 183,382
Ceded To Other Companies	(61,839)	(67,155)
Assumed From Other Companies	8	7
Net premiums earned	$ 115,164	$ 116,234
Percentage of Amount Assumed to Net	0.00%	0.00%
American Southern [Member]
Premiums [Abstract]
Direct Amount	$ 51,844	$ 52,424
Ceded To Other Companies	(6,546)	(6,511)
Assumed From Other Companies	24,978	22,069
Net premiums earned	$ 70,276	$ 67,982
Percentage of Amount Assumed to Net	35.50%	32.50%

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 5,386	$ 198
Investment in unconsolidated trusts	1,238	1,238
VIE, Not Primary Beneficiary [Member] \| Other Invested Assets [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	5,386	198
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	6,624	1,436
Outstanding commitments	$ 5,872	$ 1,997

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net income	$ 1,525	$ 4,281
Available-for-sale fixed maturity securities:
Gross unrealized holding loss arising in the period	(50,377)	(8,686)
Related income tax effect	10,579	1,824
Subtotal	(39,798)	(6,862)
Less: reclassification adjustment for net realized gains included in net income	(49)	(570)
Related income tax effect	10	120
Subtotal	(39)	(450)
Total other comprehensive loss, net of tax	(39,837)	(7,312)
Total comprehensive loss	$ (38,312)	$ (3,031)

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Jun. 12, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Document Transition Report	false
Entity File Number	0-3722
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Central Index Key	0000008177
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1027114
Entity Address, Address Line One	4370 Peachtree Road, N.E.
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30319
City Area Code	404
Local Phone Number	266-5500
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	AAME
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 10,809,906
Entity Common Stock, Shares Outstanding		20,404,699
Auditor Firm ID	686
Auditor Name	FORVIS, LLP
Auditor Location	Atlanta, Georgia

Benefit Plans

12 Months Ended

Dec. 31, 2022

Benefit Plans [Abstract]

Benefit Plans

Note 11.

Benefit Plans

Equity Incentive Plan

On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to 2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for performance and service. During the year ended 2022, a total of 25,000 restricted shares, with an estimated fair value of $71 were issued under the 2012 Plan. During 2021, there were no restricted shares issued under the 2012 Plan. The estimated fair value of the restricted shares issued under the 2012 Plan during 2022 was based on the common stock price at date of grant. Stock grants are generally issued from treasury shares. Vesting of restricted shares generally occurs after a one to three year period following the date of grant. The Company accounts for forfeitures as they occur. There were no stock options granted or outstanding under the 2012 Plan in 2022 or 2021. Shares available for future grant under the 2012 Plan at December 31, 2021 were 935,200. The 2012 Plan expired on April 30, 2022, ten years after its effective date. As such, no grants have been or will be made under the 2012 Plan on or after its expiration, but outstanding awards granted thereunder will continue in accordance with their terms.

On May 24, 2022, the Company’s shareholders approved the 2022 Equity and Incentive Compensation Plan (the “2022 Plan”). The 2022 Plan authorizes the grant of up to 3,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units and other awards, and succeeded the 2012 Plan for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for performance and service. During the year ended 2022, a total of 40,000 restricted shares, with an estimated fair value of $122 were issued under the 2022 Plan. Vesting of restricted shares generally occurs after a one to three year period following the date of grant. Shares available for future grant under the 2022 Plan at December 31, 2022 were 2,960,000.

401(k) Plan

The Company initiated an employees’ savings plan (the “Plan”) qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan covers substantially all of the Company’s employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company’s total matching contribution for 2022 and 2021 was $255 and $272, respectively, and consisted of a contribution equal to 35% of up to the first 6% of each participant’s contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2022 and 2021 of $569 and $549, respectively. All contributions were made in cash. Participants are 100% vested in their own contributions and the vested percentage attributable to certain employer contributions is based on a five-year graded schedule.

Agent Stock Purchase Plan

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

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1.

Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any historical period are not necessarily indicative of results to be expected in any future period.

At December 31, 2022, the Parent owned five insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiaries, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary, American Safety Insurance Company. American Southern Insurance Company also wholly-owned three non-insurance subsidiaries, Premier Adjusting and Claim Services, Inc., Automobile Safety Management, Inc. and Automated Systems of Georgia, Inc. (together with American Southern Insurance Company and American Safety Insurance Company known as “American Southern”). In addition, the Parent owned one non-insurance subsidiary, xCalibre Risk Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity.

Premium Revenue and Cost Recognition

Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance).

Intangibles

Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented.

Investments

The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and, accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted market prices, when available, or independent broker quotations. Values that are not determined using quoted market prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships and limited liability companies and are accounted for using the equity method. If the value of a fixed maturity security or other invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes the new cost basis.

Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income.

Income Taxes

Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a deferred tax asset will not be realized.

Earnings Per Common Share

Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period. Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months or less from date of purchase.

Reinsurance

The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement.

Property and Casualty Operations

American Southern’s basic reinsurance treaties generally cover all claims in excess of specified per occurrence limitations. Limits per occurrence within the reinsurance treaties are as follows: Inland marine and commercial automobile physical damage - $225,000 excess of $125,000 retention; and automobile liability and general liability - excess coverage of $2.0 million less retentions that may vary from $100,000 to $500,000 depending on the account. American Southern maintains a property catastrophe treaty with a $5.5 million limit excess of $500,000 retention. American Southern also issues individual surety bonds with face amounts generally up to $1.5 million, and limited to $5.0 million in aggregate per account, that are not reinsured.

Life and Health Operations

Bankers Fidelity has entered into reinsurance contracts ceding the excess of its life retention. Maximum retention by Bankers Fidelity on any one individual in the case of life insurance policies is $200,000. At December 31, 2022, $9.6 million of the $670.6 million of life insurance in force at Bankers Fidelity was reinsured under a mix of coinsurance and yearly renewable term agreements. Certain prior year reinsurance agreements also remain in force although they no longer provide reinsurance for new business.

Bankers Fidelity has also entered into a reinsurance contract ceding excess new Medicare supplement business to General Re Life Corporation. Ceding thresholds are set annually. During 2022, the liability of the reinsurer was 50% of all new Medicare supplement business issued by the Company on amounts up to a maximum retention of $15.0 million of annualized premium. Accordingly, $1.0 million of the Company’s $2.0 million of new annualized Medicare supplement premium was ceded.

Share-Based Transactions

For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date.

Treasury Stock

Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued.

Recently Issued Accounting Standards

Adoption of New Accounting Standards

Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending other existing guidance to simplify several other income tax accounting matters. The Company adopted ASU 2019-12 as of January 1, 2021. 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, 2024 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.

Accounting for Long-Duration Contracts. In August 2018, the FASB issued ASU No. 2018-12, Financial Services —Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). This guidance (1) improves the timeliness of recognizing changes in the liability for future policy benefits and modifies the rate used to discount future cash flows, (2) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (3) simplifies the amortization of deferred acquisition costs, and (4) improves the effectiveness of the required disclosures. ASU 2018-12 is effective for interim and annual reporting periods beginning after December 15, 2024, although earlier adoption is permitted. The Company is currently evaluating the new guidance, but has not yet determined the method. The Company will adopt on January 1, 2025.

Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected.

The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.

The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates.

Insurance Reserves and Policyholder Funds (Tables)

12 Months Ended

Dec. 31, 2022

Insurance Reserves and Policyholder Funds [Abstract]

Reserves for Life, Accident, Health and Property and Casualty Losses, Including Loss Adjustment Expenses

The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2022 and 2021.

					Amount of Insurance In Force, Net
	2022		2021		2022		2021
Future policy benefits
Life insurance policies:
Ordinary life and annuities	$	50,660	$	51,947	$	186,863	$	194,210
Group life		2,533		1,094		474,150		212,783
		53,193		53,041	$	661,013	$	406,993
Accident and health insurance policies		32,371		34,307
		85,564		87,348
Unearned premiums		28,348		27,469
Losses, claims and loss adjustment expenses		87,484		85,620
Other policy liabilities		1,255		1,360
Total insurance reserves and policyholder funds	$	202,651	$	201,797

Summary of Activity in Liabilities for Unpaid Loss and Claim Reserved

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

	2022			2021
Balance at January 1	$	85,620		$	79,147
Less: Reinsurance recoverable on unpaid losses		(17,690	)		(17,600	)
Net balance at January 1		67,930			61,547

Incurred related to:
Current year		125,754			134,284
Prior years		(4,228	)⁽¹⁾		(3,415	)⁽²⁾
Total incurred		121,526			130,869

Paid related to:
Current year		82,002			89,838
Prior years		37,617			34,648
Total paid		119,619			124,486
Net balance at December 31		69,837			67,930
Plus: Reinsurance recoverable on unpaid losses		17,647			17,690
Balance at December 31	$	87,484		$	85,620

(1)	Prior years’ development was primarily the result of better than expected development on prior year’s loss and claim reserves for the Medicare Supplement line of business in Bankers Fidelity, as well as the surety line of business in American Southern.

(2)

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:

	2022		2021
Total incurred losses	$	121,526	$	130,869
Cash surrender value and matured endowments		1,598		2,179
Benefit reserve changes		332		(1,354	)
Total insurance benefits and losses incurred	$	123,456	$	131,694

Supplementary Information about Average Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2022.

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Reserve Line	1^st Year			2^nd Year			3^rd Year			4^th Year			5^th Year			6^th Year			7^th Year			8^th Year			9^th Year			10^th Year
Medicare Supplement		82.4	%		16.9	%		0.2	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Automobile Liability		27.2	%		29.9	%		17.6	%		12.2	%		7.3	%		2.9	%		1.4	%		0.2	%		0.4	%		-0.1	%
Automobile Physical Damage		83.1	%		15.5	%		-0.5	%		-0.3	%		0.4	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
General Liability		20.1	%		20.7	%		21.9	%		16.5	%		11.6	%		5.9	%		0.3	%		2.1	%		0.7	%		0.0	%
Surety		49.2	%		38.0	%		10.1	%		-3.0	%		-4.8	%		-1.0	%		-0.2	%		0.1	%		0.0	%		-0.1	%

Reconciliation of Net Incurred and Paid Claims Development

The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows:

	December 31, 2022
Net outstanding liabilities
Medicare Supplement	$	12,916
Automobile Liability		43,201
Automobile Physical Damage		2,648
General Liability		3,826
Surety		3,313
Other short-duration insurance lines		1,212
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance		67,116

Reinsurance recoverable on unpaid losses:
Medicare Supplement		9,382
Automobile Liability		5,086
Automobile Physical Damage		334
General Liability		2,451
Other short-duration insurance lines		394
Total reinsurance recoverable on unpaid losses		17,647

Unallocated claims adjustment expenses		2,721

Total gross liability for unpaid losses, claims and loss adjustment expenses	$	87,484

Medicare Supplement [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

Medicare Supplement

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	56,974	$	56,970	$	57,034	$	57,023	$	57,021	$	57,016	$	57,015	$	57,014	$	57,014	$	57,014	$	—		867
2014				57,179		56,938		56,981		56,981		56,976		56,977		56,976		56,976		56,976		—		957
2015						55,482		54,939		54,993		54,990		54,984		54,985		54,985		54,985		—		939
2016								58,849		59,851		63,226		63,225		63,221		63,221		63,221		—		898
2017										67,960		69,655		69,643		69,635		69,633		69,633		—		1,037
2018												79,140		80,404		80,361		80,357		80,351		—		1,512
2019														88,765		87,028		86,988		86,986		1		2,052
2020																75,857		75,715		75,730		20		2,245
2021																		65,267		61,579		228		1,852
2022																				58,777		12,666		1,768
																			$	665,252

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	47,770	$	56,970	$	57,034	$	57,023	$	57,021	$	57,016	$	57,015	$	57,014	$	57,015	$	57,014
2014				48,024		56,938		56,981		56,981		56,976		56,977		56,976		56,976		56,976
2015						45,430		54,876		54,993		54,990		54,984		54,985		54,985		54,985
2016								49,165		59,747		63,226		63,225		63,221		63,221		63,221
2017										57,696		69,517		69,643		69,635		69,633		69,633
2018												66,565		80,222		80,361		80,355		80,351
2019														72,333		86,856		86,978		86,985
2020																63,129		75,527		75,710
2021																		50,197		61,350
2022																				46,111
																			$	652,336
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	12,916

Automobile Liability [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

Automobile Liability

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	18,664	$	20,702	$	21,096	$	21,823	$	21,352	$	21,020	$	20,972	$	20,972	$	20,970	$	20,958	$	—		3,278
2014				20,812		21,881		22,041		22,353		21,682		22,080		22,100		22,125		22,165		35		3,558
2015						18,521		19,857		20,017		20,007		20,086		20,680		20,849		20,955		9		3,537
2016								20,549		21,275		21,846		22,388		22,245		22,310		22,448		—		3,862
2017										22,179		24,212		23,766		25,180		26,009		26,153		74		3,813
2018												24,284		25,682		27,338		30,013		30,464		466		3,650
2019														25,241		24,045		25,724		28,042		1,725		3,599
2020																22,416		16,442		20,137		1,815		2,494
2021																		25,887		21,172		2,415		2,707
2022																				28,860		14,911		2,532
																			$	241,354

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	5,144	$	12,193	$	16,782	$	19,407	$	20,382	$	20,982	$	20,972	$	20,972	$	20,970	$	20,958
2014				6,822		13,807		17,554		20,177		20,878		21,735		21,813		21,786		21,958
2015						6,226		11,878		14,938		17,612		19,557		20,234		20,726		20,904
2016								6,796		13,141		16,397		19,613		21,408		21,809		22,448
2017										7,401		16,317		20,221		22,778		25,023		25,712
2018												6,989		15,647		21,121		24,662		27,671
2019														7,305		14,694		19,384		22,868
2020																5,172		9,941		14,693
2021																		6,242		13,918
2022																				7,023
																			$	198,153
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	43,201

Automobile Physical Damage [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

Automobile Physical Damage

	For the Years Ended December 31,										As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance										IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2018	$	7,805	$	7,530	$	7,447	$	7,430	$	7,461	$	—		1,461
2019				8,526		8,026		7,914		7,881		1		1,493
2020						10,288		10,080		10,047		3		1,634
2021								14,296		13,385		10		1,880
2022										10,962		232		1,617
									$	49,736

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2018		2019		2020		2021		2022
2018	$	6,344	$	7,510	$	7,446	$	7,433	$	7,461
2019				6,360		8,005		7,906		7,867
2020						8,347		9,952		10,008
2021								11,993		13,277
2022										8,475
									$	47,088
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance									$	2,648

General Liability [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

General Liability

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	3,461	$	728	$	926	$	817	$	865	$	820	$	945	$	904	$	868	$	867	$	—		199
2014				3,744		501		557		476		406		497		523		519		511		3		203
2015						4,421		1,037		1,227		1,044		867		855		855		870		4		148
2016								3,119		1,148		736		608		621		619		620		—		94
2017										1,490		488		513		738		738		839		23		84
2018												1,656		333		198		128		183		—		76
2019														1,916		707		455		515		60		89
2020																2,223		670		657		93		89
2021																		2,567		1,329		327		94
2022																				2,770		1,780		77
																			$	9,161

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	104	$	339	$	579	$	811	$	791	$	803	$	805	$	855	$	867	$	867
2014				171		299		331		369		373		493		498		502		502
2015						98		259		464		664		863		855		855		854
2016								116		203		568		608		617		619		620
2017										75		136		365		556		696		741
2018												65		90		115		128		183
2019														41		209		242		354
2020																208		385		462
2021																		364		646
2022																				402
																			$	5,631
All outstanding liabilities before 2013, net of reinsurance																				296
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	3,826

Surety [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

Surety

	For the Years Ended December 31,																				As of December 31, 2022
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR Reserves		Cumulative Number of Reported Claims
2013	$	3,060	$	2,007	$	2,743	$	2,947	$	2,866	$	2,809	$	2,765	$	2,757	$	2,753	$	2,751	$	—		60
2014				3,214		3,130		2,990		2,760		2,685		2,617		2,818		2,782		2,852		48		54
2015						1,902		1,630		1,400		1,359		1,406		1,310		1,307		1,280		—		50
2016								3,314		1,812		1,865		1,876		1,865		1,678		1,670		—		47
2017										4,677		3,671		3,799		3,629		3,514		3,440		6		63
2018												3,528		1,938		1,381		956		767		1		64
2019														2,130		657		630		513		11		31
2020																2,263		574		465		—		23
2021																		2,936		1,455		318		35
2022																				3,202		1,476		36
																			$	18,395

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	323	$	1,010	$	1,369	$	2,763	$	2,789	$	2,749	$	2,765	$	2,757	$	2,753	$	2,751
2014				1,331		2,327		2,727		2,739		2,664		2,593		2,562		2,562		2,568
2015						641		856		1,127		1,125		1,128		1,271		1,273		1,279
2016								1,054		1,732		1,772		1,873		1,862		1,677		1,670
2017										1,971		3,255		3,523		3,545		3,442		3,402
2018												1,157		1,454		1,361		941		760
2019														259		395		568		446
2020																97		460		464
2021																		156		803
2022																				970
																			$	15,113
All outstanding liabilities before 2013, net of reinsurance																				31
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	3,313

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue:
Insurance premiums, net	$ 185,440	$ 184,216
Net investment income	9,932	8,528
Realized investment gains, net	30	4,903
Unrealized gains (losses) on equity securities, net	(7,562)	1,894
Other income	11	13
Total revenue	187,851	199,554
Benefits and expenses:
Insurance benefits and losses incurred	123,456	131,694
Commissions and underwriting expenses	46,713	47,496
Interest expense	1,952	1,387
Other expense	13,634	13,675
Total benefits and expenses	185,755	194,252
Income before income taxes	2,096	5,302
Income tax expense	571	1,021
Net income	1,525	4,281
Preferred stock dividends	(399)	(399)
Net income applicable to common shareholders	$ 1,126	$ 3,882
Earnings per common share (basic) (in dollars per share)	$ 0.06	$ 0.19
Earnings per common share (diluted) (in dollars per share)	$ 0.06	$ 0.19

Internal-Use Software

12 Months Ended

Dec. 31, 2022

Internal-Use Software [Abstract]

Internal-Use Software

Note 5.

Internal-Use Software

On March 3, 2021, the Company entered into a hosting arrangement through a service contract with a third party software solutions vendor to provide a suite of policy, billing, claim, and customer management services. The software is managed, hosted, supported, and delivered as a cloud-based software service product offering (software-as-a-service). The initial term of the arrangement is five years from the effective date with a renewal term of an additional five years.

Service fees related to the hosting arrangement are recorded as an expense in the Company’s condensed consolidated statement of operations as incurred. Implementation expenses incurred related to third party professional and consulting services have been capitalized. The Company will begin amortizing, on a straight-line basis over the expected ten year term of the hosting arrangement, when the software is substantially ready for its intended use. The Company incurred and capitalized implementation costs of $2,522 and $500 during the years ended December 31, 2022 and 2021, respectively. As a result, the Company has capitalized $3,022 in implementation costs in other assets in its condensed consolidated balance sheet as of December 31, 2022. The Company expects the software will be substantially ready for its intended use during 2023. Accordingly, the Company has not recorded any amortization expense related to software implementation costs for year ended December 31, 2022.

Disclosures About Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Disclosures About Fair Value of Financial Instruments [Abstract]

Financial Instruments Carried at Fair Value Measured on a Recurring Basis

As of December 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	—	$	208,729	$	—	$	208,729
Equity securities		11,406		—		156		11,562
Cash equivalents		18,861		—		—		18,861
Total	$	30,267	$	208,729	$	156	$	239,152

As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	250	$	260,486	$	250	$	260,986
Equity securities		18,967		—		157		19,124
Cash equivalents		12,713		—		—		12,713
Total	$	31,930	$	260,486	$	407	$	292,823

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 December 31, 2022 and 2021.

	Level in	2022				2021
	Fair Value Hierarchy⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	28,863	$	28,863	$	24,753	$	24,753
Fixed maturities	⁽¹⁾		208,729		208,729		260,986		260,986
Equity securities	⁽¹⁾		11,562		11,562		19,124		19,124
Other invested assets	Level 3		5,386		5,386		198		198
Policy loans	Level 2		1,759		1,759		1,858		1,858
Investments in unconsolidated trusts	Level 2		1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2		33,738		33,810		33,738		33,728
Revolving credit facility	Level 2		2,009		2,009		—		—

(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.

Earnings Per Common Share

12 Months Ended

Dec. 31, 2022

Earnings Per Common Share [Abstract]

Earnings Per Common Share

Note 13.

Earnings Per Common Share

Basic earnings per share was computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities.

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

	For the Year Ended December 31, 2022
	Income			Weighted Average Shares Outstanding (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share
Net income before preferred stock dividends	$	1,525			20,390		-
Less preferred stock dividends		(399	)		—
Net income applicable to common shareholders	$	1,126			20,390	$	0.06

	For the Year Ended December 31, 2021
	Income			Weighted Average Shares Outstanding (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share
Net income before preferred stock dividends	$	4,281			20,402		-
Less preferred stock dividends		(399	)		—
Net income applicable to common shareholders	$	3,882			20,402	$	0.19

The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2022 and 2021 since its impact would have been antidilutive.

Reinsurance

12 Months Ended

Dec. 31, 2022

Reinsurance [Abstract]

Reinsurance

Note 7.

Reinsurance

In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99.7% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2022. Reinsurance recoverables of $25,824 were due from General Re Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance recoverables, if appropriate.

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

	For the Year Ended December 31, 2022
	American Southern			Bankers Fidelity			Total
Direct premiums written	$	52,404		$	176,119		$	228,523
Assumed premiums written		26,814			9			26,823
Ceded premiums written		(6,547	)		(61,701	)		(68,248	)
Net premiums written	$	72,671		$	114,427		$	187,098

Direct premiums earned	$	51,844		$	176,995		$	228,839
Assumed premiums earned		24,978			8			24,986
Ceded premiums earned		(6,546	)		(61,839	)		(68,385	)
Net premiums earned	$	70,276		$	115,164		$	185,440

Provision for benefits and losses incurred	$	49,568		$	124,478		$	174,046
Reinsurance loss recoveries		(2,393	)		(48,197	)		(50,590	)
Insurance benefits and losses incurred	$	47,175		$	76,281		$	123,456

	For the Year Ended December 31, 2021
	American Southern			Bankers Fidelity			Total
Direct premiums written	$	53,815		$	182,867		$	236,682
Assumed premiums written		22,099			12			22,111
Ceded premiums written		(6,511	)		(67,010	)		(73,521	)
Net premiums written	$	69,403		$	115,869		$	185,272

Direct premiums earned	$	52,424		$	183,382		$	235,806
Assumed premiums earned		22,069			7			22,076
Ceded premiums earned		(6,511	)		(67,155	)		(73,666	)
Net premiums earned	$	67,982		$	116,234		$	184,216

Provision for benefits and losses incurred	$	46,500		$	144,091		$	190,591
Reinsurance loss recoveries		(2,067	)		(56,830	)		(58,897	)
Insurance benefits and losses incurred	$	44,433		$	87,261		$	131,694

Components of reinsurance receivables at December 31, 2022 and 2021 were as follows:

	December 31, 2022
	American Southern		Bankers Fidelity		Total
Recoverable on unpaid losses	$	8,265	$	9,382	$	17,647
Recoverable on unpaid benefits		—		6,788		6,788
Recoverable on paid losses		—		618		618
Ceded unearned premiums		—		681		681
Ceded advanced premiums		—		179		179
Total reinsurance receivables	$	8,265	$	17,648	$	25,913

	December 31, 2021
	American Southern		Bankers Fidelity		Total
Recoverable on unpaid losses	$	6,937	$	10,753	$	17,690
Recoverable on unpaid benefits		—		8,169		8,169
Recoverable on paid losses		—		499		499
Ceded unearned premiums		—		819		819
Ceded advanced premiums		—		239		239
Total reinsurance receivables	$	6,937	$	20,479	$	27,416

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Allocation of total income taxes [Abstract]
Total tax expense on income	$ 571	$ 1,021
Tax benefit on components of shareholders' equity [Abstract]
Net unrealized losses on investment securities	(10,589)	(1,944)
Total tax benefit	(10,018)	(923)
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at the statutory rate	$ 440	$ 1,112
Statutory rate	21.00%	21.00%
Dividends-received deduction	$ (24)	$ (26)
Meals and entertainment	61	32
Vested stock and club dues	14	(28)
Parking disallowance	17	16
Penalties and fines	149	0
Adjustment for prior years' estimates to actual	(86)	(85)
Income tax expense	$ 571	$ 1,021
Effective tax rate	27.20%	19.30%
Deferred tax assets [Abstract]
Deferred acquisition costs	$ 7,953	$ 7,026
Net unrealized investment losses	4,489	0
Insurance reserves	1,597	2,028
Impaired assets	791	780
Bad debts and other	252	280
Total deferred tax assets	15,082	10,114
Deferred tax liabilities [Abstract]
Deferred and uncollected premiums	(835)	(561)
Net unrealized investment gains	0	(7,689)
Other	(84)	(109)
Total deferred tax liabilities	(919)	(8,359)
Net deferred tax asset (liability)	14,163	1,755
Components of income tax expense [Abstract]
Current - Federal	2,390	2,133
Deferred - Federal	(1,819)	(1,112)
Income tax expense	$ 571	$ 1,021
Open tax years	2019 2020 2021

Schedule III SUPPLEMENTARY INSURANCE INFORMATION

12 Months Ended

Dec. 31, 2022

Schedule III SUPPLEMENTARY INSURANCE INFORMATION [Abstract]

Schedule III SUPPLEMENTARY INSURANCE INFORMATION

Schedule III

Page 1 of 2

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

Segment	Deferred Acquisition Costs		Future Policy Benefits, Losses, Claims and Loss Reserves			Unearned Premiums		Other Policy Claims and Benefits Payable
	(In thousands)
December 31, 2022:
Bankers Fidelity	$	39,880	$	110,238		$	2,814	$	1,255
American Southern		2,401		62,810			25,534		—
	$	42,281	$	173,048	⁽¹⁾	$	28,348	$	1,255

December 31, 2021:
Bankers Fidelity	$	36,308	$	115,712		$	3,689	$	1,360
American Southern		2,390		57,256			23,780		—
	$	38,698	$	172,968	⁽²⁾	$	27,469	$	1,360

(1)	Includes future policy benefits of $85,564 and losses and claims of $87,484.

(2)	Includes future policy benefits of $87,348 and losses and claims of $85,620.

Schedule III

Page 2 of 2

ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES

SUPPLEMENTARY INSURANCE INFORMATION

Segment	Premium Revenue		Net Investment Income			Benefits, Claims, Losses and Settlement Expenses		Amortization of Deferred Acquisition Costs		Other Operating Expenses		Casualty Premiums Written
	(In thousands)
December 31, 2022:
Bankers Fidelity	$	115,164	$	5,414		$	76,281	$	9,295	$	24,627	$	—
American Southern		70,276		4,147			47,175		10,150		10,011		72,671
Corporate & other		—		371			—		—		8,216		—
	$	185,440	$	9,932		$	123,456	$	19,445	$	42,854	$	72,671

December 31, 2021:
Bankers Fidelity	$	116,234	$	5,204		$	87,261	$	13,465	$	21,250	$	—
American Southern		67,982		3,570			44,433		10,599		9,544		69,403
Corporate & other		—		(246	)		—		—		7,700		—
	$	184,216	$	8,528		$	131,694	$	24,064	$	38,494	$	69,403