0001140361-23-032398 | 10-Q | XBRL Viewer

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 218,038	$ 208,729
Equity securities	9,181	11,562
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	218,038	208,729
Equity securities	9,181	11,562
Cash equivalents	9,884	18,861
Assets at fair value	237,103	239,152
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	0
Equity securities	9,027	11,406
Cash equivalents	9,884	18,861
Assets at fair value	18,911	30,267
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	218,038	208,729
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	218,038	208,729
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	154	156
Cash equivalents	0	0
Assets at fair value	$ 154	$ 156

Earnings (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings (Loss) Per Common Share [Abstract]

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

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

	Three Months Ended March 31, 2023
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,446	)		20,407
Less preferred stock dividends		(99	)		—
Net loss applicable to common shareholders	$	(1,545	)		20,407		$	(0.08	)

	Three Months Ended March 31, 2022
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	2,842			20,380
Less preferred stock dividends		(99	)		—
Net income applicable to common shareholders		2,743			20,380	$	0.13
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		99			1,378
Net income applicable to common shareholders	$	2,842			21,758	$	0.13

Income Taxes

3 Months Ended

Mar. 31, 2023

Income Taxes [Abstract]

Income Taxes

Note 9.

Income Taxes

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

	Three Months Ended March 31,
	2023			2022
Federal income tax provision at statutory rate of 21%	$	(382	)	$	797
Dividends-received deduction		(7	)		(6	)
Meals and entertainment		12			10
Vested stock and club dues		1			—
Parking disallowance		4			4
Penalties and fines		—			149
Income tax expense (benefit)	$	(372	)	$	954

The components of income tax expense (benefit) were:

	Three Months Ended March 31,
	2023			2022
Current – Federal	$	180		$	68
Deferred – Federal		(552	)		886
Total	$	(372	)	$	954

- 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

Earnings (Loss) Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings (Loss) Per Common Share [Abstract]

Earnings (Loss) Per Common Share

Note 8.

Earnings (Loss) Per Common Share

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

	Three Months Ended March 31, 2023
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,446	)		20,407
Less preferred stock dividends		(99	)		—
Net loss applicable to common shareholders	$	(1,545	)		20,407		$	(0.08	)

	Three Months Ended March 31, 2022
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	2,842			20,380
Less preferred stock dividends		(99	)		—
Net income applicable to common shareholders		2,743			20,380	$	0.13
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		99			1,378
Net income applicable to common shareholders	$	2,842			21,758	$	0.13

The assumed conversion of the Company’s Series D preferred stock was excluded from the loss per common share calculation for three month period ended March 31, 2023, since its impact would have been antidilutive.

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 5,372	$ 5,386
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	5,372	5,386
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	6,610	6,624
Outstanding commitments	$ 5,872	$ 5,872

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Additional Information of Operating Leases

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

	Three Months Ended March 31,
Other information on operating leases:	2023			2022
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	260		$	255
Right-of-use assets included in other assets on the condensed consolidated balance sheet		3,213			3,963
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	3.6 years			4.6 years

Maturities and Present Value of Lease Liabilities

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

	Lease Liability
Remainder of 2023	$	789
2024		1,065
2025		1,083
2026		942
2027		—
Thereafter		—
Total undiscounted lease payments		3,879
Less: present value adjustment		455
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	3,424

Internal-Use Software (Details) - USD ($) $ in Thousands	3 Months Ended
Internal-Use Software (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Internal Use Software [Abstract]
Period of initial terms of arrangement	5 years
Period of additional renewal term	5 years
Incurred and capitalized implementation costs	$ 592	$ 8
Capitalized implementation costs	3,614
Amortization expense	$ 0
Software Capitalized Implementation Costs [Member]
Internal Use Software [Abstract]
Amortization period	10 years

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

3 Months Ended

Mar. 31, 2023

USD ($)

Trust

Quarter

$ / shares

Debt Instruments [Abstract]

Number of Connecticut statutory business trusts | Trust

Financial structure of statutory business trusts [Abstract]

Net balance March 31, 2023

$ 33,738

Net balance December 31, 2022

$ 33,738

Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

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

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

Financial structure of statutory business trusts [Abstract]

Principal amount owed March 31, 2023

$ 18,042

^[1],[2]

Less: Treasury debt

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

Net balance March 31, 2023

18,042

^[1],[2]

Net balance December 31, 2022

$ 18,042

^[1],[2]

Coupon rate

LIBOR + 4.00%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

Dec. 04, 2032

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

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

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.00%

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

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.00%

Issuance date

Dec. 04, 2002

Securities issued (in shares) | shares

17,500

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

$ 1

Liquidation value

$ 17,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

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

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.00%

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

Financial structure of statutory business trusts [Abstract]

Principal amount owed March 31, 2023

$ 23,196

^[1],[2]

Less: Treasury debt

(7,500)

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

Net balance March 31, 2023

15,696

^[1],[2]

Net balance December 31, 2022

$ 15,696

^[1],[2]

Coupon rate

LIBOR + 4.10%

^[1],[2]

Interest payable

Quarterly

^[1],[2]

Maturity date

May 15, 2033

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

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

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

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

Financial structure of statutory business trusts [Abstract]

Coupon rate

LIBOR + 4.10%

Issuance date

May 15, 2003

Securities issued (in shares) | shares

22,500

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

$ 1

Liquidation value

$ 22,500

Distribution payable

Quarterly

Distribution guaranteed by

Atlantic American Corporation

^[4]

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

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

4.10%

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

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2023 USD ($) Lease	Mar. 31, 2022 USD ($)
Lease description [Abstract]
Number of operating lease agreements \| Lease	2
Lease expense	$ 254	$ 254
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	260	255
Right-of-use assets included in other assets on the condensed consolidated balance sheet	$ 3,213	$ 3,963
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	3 years 7 months 6 days	4 years 7 months 6 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]
Remainder of 2023	$ 789
2024	1,065
2025	1,083
2026	942
2027	0
Thereafter	0
Total undiscounted lease payments	3,879
Less: present value adjustment	455
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 3,424
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

Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Values of Financial Instruments [Abstract]

Financial Instruments Carried at Fair Value Measured on a Recurring Basis

As of March 31, 2023, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	218,038	$	—	$	218,038
Equity securities		9,027		—		154		9,181
Cash equivalents		9,884		—		—		9,884
Total	$	18,911	$	218,038	$	154	$	237,103

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

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	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

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 March 31, 2023 and December 31, 2022.

			March 31, 2023				December 31, 2022
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	13,548	$	13,548	$	28,863	$	28,863
Fixed maturities		⁽¹⁾		218,038		218,038		208,729		208,729
Equity securities		⁽¹⁾		9,181		9,181		11,562		11,562
Other invested assets	Level 3			5,372		5,372		5,386		5,386
Policy loans	Level 2			1,792		1,792		1,759		1,759
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		33,585		33,738		33,810
Revolving credit facility	Level 2			3,000		3,000		2,009		2,009

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

Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Information [Abstract]

Assets, Revenue Loss Before Income Taxes for Each Business Unit

The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2023 and 2022.

Assets	March 31, 2023		December 31, 2022
American Southern	$	193,215	$	144,455
Bankers Fidelity		134,246		195,028
Corporate and Other		26,134		27,581
Total assets	$	353,595	$	367,064

	Three Months Ended March 31,
Revenues	2023			2022
American Southern	$	28,190		$	18,506
Bankers Fidelity		18,200			32,889
Corporate and Other		(121	)		213
Total revenue	$	46,269		$	51,608

	Three Months Ended March 31,
Income (Loss) Before Income Taxes	2023			2022
American Southern	$	(330	)	$	2,085
Bankers Fidelity		1,352			3,451
Corporate and Other		(2,840	)		(1,740	)
Income (loss) before income taxes	$	(1,818	)	$	3,796

Credit Arrangements (Tables)

3 Months Ended

Mar. 31, 2023

Credit Arrangements [Abstract]

Financial Structure of Statutory Business Trusts

The financial structure of each of Atlantic American Statutory Trust I and II as of March 31, 2023 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed March 31, 2023	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance March 31, 2023	$	18,042	$	15,696
Net balance December 31, 2022	$	18,042	$	15,696
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Interest payable	Quarterly		Quarterly
Maturity date	December 4, 2032		May 15, 2033
Redeemable by issuer	Yes		Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002		May 15, 2003
Securities issued		17,500		22,500
Liquidation preference per security	$	1	$	1
Liquidation value	$	17,500	$	22,500
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Distribution payable	Quarterly		Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation		Atlantic American Corporation

(1)

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

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

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

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

Investments, Summary of Realized Investment Gains (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary of realized investment gains [Abstract]
Gains	$ 0	$ 0
Losses	0	(10)
Realized investment Losses (gains), net	0	(10)
Fixed Maturities [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	(10)
Realized investment Losses (gains), net	0	(10)
Equity Securities [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	0
Realized investment Losses (gains), net	0	0
Other Invested Assets [Member]
Summary of realized investment gains [Abstract]
Gains	0	0
Losses	0	0
Realized investment Losses (gains), net	$ 0	$ 0

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investments [Abstract]
Net realized and unrealized gains (losses) recognized during the period on equity securities	$ (2,375)	$ 2,193
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0
Unrealized gains (losses) recognized during the reporting period on equity securities, net	$ (2,375)	$ 2,193

Insurance Reserves for Losses and Claims (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Insurance Reserves for Losses and Claims [Roll Forward]

Beginning insurance reserves for losses and claims, gross

$ 87,484

$ 85,620

Less: Reinsurance recoverable on unpaid losses

(17,647)

(17,690)

Beginning insurance reserves for losses and claims, net

69,837

67,930

Incurred related to [Abstract]

Current accident year

30,836

32,542

Prior accident year development

^[1]

(638)

^[2]

(1,523)

^[3]

Total incurred

30,198

31,019

Paid related to [Abstract]

Current accident year

9,174

10,629

Prior accident years

21,504

19,966

Total paid

30,678

30,595

Ending insurance reserves for losses and claims, net

69,357

68,354

Plus: Reinsurance recoverable on unpaid losses

16,893

16,881

Ending insurance reserves for losses and claims, gross

86,250

85,235

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

Total incurred losses

30,198

31,019

Cash surrender value and matured endowments

257

362

Benefit reserve changes

(212)

Total insurance benefits and losses incurred

$ 30,460

$ 31,169

[1]	In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.
[2]	Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.
[3]	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.

Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments [Abstract]

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	March 31, 2023
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	49,729	$	25	$	5,324	$	—	$	55,028
Obligations of states and political subdivisions		9,545		30		1,367		—		10,882
Corporate securities:
Utilities and telecom		22,747		230		2,744		—		25,261
Financial services		59,765		456		6,422		—		65,731
Other business – diversified		32,176		225		3,620		—		35,571
Other consumer – diversified		43,844		52		4,884		—		48,676
Total corporate securities		158,532		963		17,670		—		175,239
Redeemable preferred stocks:
Other consumer – diversified		232		39		—		—		193
Total redeemable preferred stocks		232		39		—		—		193
Total fixed maturities	$	218,038	$	1,057	$	24,361	$	—	$	241,342

	December 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	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

Bonds having an amortized cost of $11,576 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of March 31, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $7,761 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at March 31, 2023 and December 31, 2022, respectively.

Equity securities were comprised of the following:

	March 31, 2023
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	768	$	497	$	—	$	271
Other business – diversified		8,413		3,780		—		4,633
Total equity securities	$	9,181	$	4,277	$	—	$	4,904

	December 31, 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

Amortized Cost and Carrying Value of Fixed Maturities by Contractual Maturity

The carrying value and amortized cost of the Company’s investments in fixed maturities at March 31, 2023 and December 31, 2022 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.

	March 31, 2023				December 31, 2022
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	2,615	$	2,625	$	3,776	$	3,797
Due after one year through five years		54,206		56,694		40,150		42,174
Due after five years through ten years		39,358		43,465		44,044		49,711
Due after ten years		85,702		97,844		87,719		103,095
Asset backed securities		36,157		40,714		33,040		37,989
Totals	$	218,038	$	241,342	$	208,729	$	236,766

Investment Securities with Continuous Unrealized Loss Position

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 March 31, 2023 and December 31, 2022.

	March 31, 2023
	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	$	9,917	$	227	$	35,838	$	5,097	$	45,755	$	5,324
Obligations of states and political subdivisions		—		—		5,991		1,367		5,991		1,367
Corporate securities		21,274		525		125,555		17,145		146,829		17,670
Total temporarily impaired securities	$	31,191	$	752	$	167,384	$	23,609	$	198,575	$	24,361

	December 31, 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

Summary of Realized Investment Gains (Losses)

The following table is a summary of realized investment gains (losses) for the three month period ended March 31, 2023 and 2022.

Three Months Ended

March 31, 2023

Fixed

Maturities

Equity

Securities

Other

Invested

Assets

Total

Gains

—

Losses

—

Realized investment losses, net

—

	Three Months Ended March 31, 2022
	Fixed Maturities				Equity Securities			Other Invested Assets			Total
Gains		$	—			$	—		$	—		$	—
Losses			(10	)			—			—			(10	)
Realized investment gains, net		$	(10	)		$	—		$	—		$	(10	)

Unrealized Gains (Losses) on Equity Securities

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month period ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023				2022
Net realized and unrealized gains (losses) recognized during the period on equity securities		$	(2,375	)		$	2,193
Less: Net realized gains recognized during the period on equity securities sold during the period			—				—
Unrealized gains (losses) recognized during the reporting period on equity securities, net		$	(2,375	)		$	2,193

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member] $ in Thousands		3 Months Ended
	May 12, 2021 USD ($)	Mar. 31, 2023 USD ($)
Bank Debt [Abstract]
Unsecured credit facility	$ 10,000
Maturity date		Apr. 12, 2024
Outstanding borrowings		$ 3,000
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%

Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2023

Fair Values of Financial Instruments [Abstract]

Fair Values of Financial Instruments

Note 4.

Fair Values of Financial Instruments

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

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

Level 1

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

Level 2

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

Level 3

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. The Company’s financial instruments valued using Level 3 criteria consist of one equity security. As of March 31, 2023 and December 31, 2022, the value of the equity security valued using Level 3 criteria was $154 and $156, respectively. The equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of March 31, 2023, financial instruments carried at fair value were measured on a recurring basis as summarized below:

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	218,038	$	—	$	218,038
Equity securities		9,027		—		154		9,181
Cash equivalents		9,884		—		—		9,884
Total	$	18,911	$	218,038	$	154	$	237,103

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

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Fixed maturities	$	—	$	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

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 March 31, 2023 and December 31, 2022.

			March 31, 2023				December 31, 2022
	Level in Fair Value Hierarchy ⁽¹⁾		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1		$	13,548	$	13,548	$	28,863	$	28,863
Fixed maturities		⁽¹⁾		218,038		218,038		208,729		208,729
Equity securities		⁽¹⁾		9,181		9,181		11,562		11,562
Other invested assets	Level 3			5,372		5,372		5,386		5,386
Policy loans	Level 2			1,792		1,792		1,759		1,759
Investment in unconsolidated trusts	Level 2			1,238		1,238		1,238		1,238

Liabilities:
Junior subordinated debentures, net	Level 2			33,738		33,585		33,738		33,810
Revolving credit facility	Level 2			3,000		3,000		2,009		2,009

(1)	See the aforementioned information for a description of the fair value hierarchy as well as a description 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

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 13,548	$ 28,863
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $241,342 and $236,766; no allowance for credit losses)	218,038	208,729
Equity securities, at fair value (cost: $4,904 and $4,907)	9,181	11,562
Other invested assets (cost: $5,628 and $5,628)	5,372	5,386
Policy loans	1,792	1,759
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	235,659	228,712
Receivables:
Reinsurance (net of allowance for uncollectible reinsurance of $69 and $0)	24,916	25,913
Insurance premiums and other (net of allowance for expected credit losses $197 and net of allowance for doubtful accounts $177)	11,555	15,386
Deferred income taxes, net	13,721	14,163
Deferred acquisition costs	42,259	42,281
Other assets	9,393	9,202
Intangibles	2,544	2,544
Total assets	353,595	367,064
Insurance reserves and policyholder funds:
Future policy benefits	84,667	85,564
Unearned premiums	19,400	28,348
Losses and claims	86,250	87,484
Other policy liabilities	926	1,255
Total insurance reserves and policyholder funds	191,243	202,651
Accounts payable and accrued expenses	21,235	26,473
Revolving credit facility	3,000	2,009
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	249,216	264,871
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value	55	55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,404,699 and 20,407,229	22,401	22,401
Additional paid-in capital	57,425	57,425
Retained earnings	50,362	51,982
Accumulated other comprehensive income	(18,410)	(22,149)
Unearned stock grant compensation	(59)	(132)
Treasury stock, at cost: 1,996,195 and 1,993,665 shares	(7,395)	(7,389)
Total shareholders' equity	104,379	102,193
Total liabilities and shareholders' equity	$ 353,595	$ 367,064

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2023 USD ($) Securities	Dec. 31, 2022 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 31,191	$ 159,874
12 months or longer	167,384	33,773
Total	198,575	193,647
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	752	20,326
12 months or longer	23,609	8,464
Total	$ 24,361	$ 28,790
Number of securities in unrealized loss position \| Securities	243	237
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0	$ 0
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	9,917	23,763
12 months or longer	35,838	19,259
Total	45,755	43,022
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	227	2,410
12 months or longer	5,097	3,516
Total	5,324	5,926
Allowance for expected credit losses on available-for-sale fixed maturities	0
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	0	8,183
12 months or longer	5,991	0
Total	5,991	8,183
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0	1,702
12 months or longer	1,367	0
Total	1,367	1,702
Allowance for expected credit losses on available-for-sale fixed maturities	0
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	21,274	127,928
12 months or longer	125,555	14,514
Total	146,829	142,442
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	525	16,214
12 months or longer	17,145	4,948
Total	17,670	$ 21,162
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) Segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Information [Abstract]
Number of business units \| Segment	2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 353,595		$ 367,064
Revenues	46,269	$ 51,608
Income (loss) before income taxes	(1,818)	3,796
Operating Segments [Member] \| American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	193,215		144,455
Revenues	28,190	18,506
Income (loss) before income taxes	(330)	2,085
Operating Segments [Member] \| Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	134,246		195,028
Revenues	18,200	32,889
Income (loss) before income taxes	1,352	3,451
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	26,134		$ 27,581
Revenues	(121)	213
Income (loss) before income taxes	$ (2,840)	$ (1,740)

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments:
Fixed maturities, cost	$ 241,342	$ 236,766
Allowance for credit losses	0	0
Equity securities, cost	4,904	4,907
Other invested assets, cost	5,628	5,628
Receivables:
Reinsurance, allowance for uncollectible reinsurance	69	0
Insurance premiums and other, allowance for expected credit losses/allowance for doubtful accounts	$ 197	$ 177
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)	20,404,699	20,407,229
Treasury stock, at cost (in shares)	1,996,195	1,993,665

Insurance Reserves for Losses and Claims (Tables)

3 Months Ended

Mar. 31, 2023

Insurance Reserves for Losses and Claims [Abstract]

Roll-forward of Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the three months ended March 31, 2023 and 2022 is as follows:

	Three Months Ended March 31,
	2023			2022
Beginning insurance reserves for losses and claims, gross	$	87,484		$	85,620
Less: Reinsurance recoverable on unpaid losses		(17,647	)		(17,690	)
Beginning insurance reserves for losses and claims, net		69,837			67,930

Incurred related to:
Current accident year		30,836			32,542
Prior accident year development ⁽¹⁾		(638	)⁽²⁾		(1,523	)⁽³⁾
Total incurred		30,198			31,019

Paid related to:
Current accident year		9,174			10,629
Prior accident years		21,504			19,966
Total paid		30,678			30,595
Ending insurance reserves for losses and claims, net		69,357			68,354
Plus: Reinsurance recoverable on unpaid losses		16,893			16,881
Ending insurance reserves for losses and claims, gross	$	86,250		$	85,235

(1)

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

(2)	Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.

(3)	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.

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:

	Three Months Ended March 31,
	2023		2022
Total incurred losses	$	30,198	$	31,019
Cash surrender value and matured endowments		257		362
Benefit reserve changes		5		(212	)
Total insurance benefits and losses incurred	$	30,460	$	31,169

Insurance Reserves for Losses and Claims

3 Months Ended

Mar. 31, 2023

Insurance Reserves for Losses and Claims [Abstract]

Insurance Reserves for Losses and Claims

Note 6.

Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the three months ended March 31, 2023 and 2022 is as follows:

	Three Months Ended March 31,
	2023			2022
Beginning insurance reserves for losses and claims, gross	$	87,484		$	85,620
Less: Reinsurance recoverable on unpaid losses		(17,647	)		(17,690	)
Beginning insurance reserves for losses and claims, net		69,837			67,930

Incurred related to:
Current accident year		30,836			32,542
Prior accident year development ⁽¹⁾		(638	)⁽²⁾		(1,523	)⁽³⁾
Total incurred		30,198			31,019

Paid related to:
Current accident year		9,174			10,629
Prior accident years		21,504			19,966
Total paid		30,678			30,595
Ending insurance reserves for losses and claims, net		69,357			68,354
Plus: Reinsurance recoverable on unpaid losses		16,893			16,881
Ending insurance reserves for losses and claims, gross	$	86,250		$	85,235

(1)

(2)	Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.

(3)	Prior years’ development was primarily the result of favorable development in both the life and health and the property and casualty operations.

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

	Three Months Ended March 31,
	2023		2022
Total incurred losses	$	30,198	$	31,019
Cash surrender value and matured endowments		257		362
Benefit reserve changes		5		(212	)
Total insurance benefits and losses incurred	$	30,460	$	31,169

Segment Information

3 Months Ended

Mar. 31, 2023

Segment Information [Abstract]

Segment Information

Note 12.

Segment Information

The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2023 and 2022.

Assets	March 31, 2023		December 31, 2022
American Southern	$	193,215	$	144,455
Bankers Fidelity		134,246		195,028
Corporate and Other		26,134		27,581
Total assets	$	353,595	$	367,064

	Three Months Ended March 31,
Revenues	2023			2022
American Southern	$	28,190		$	18,506
Bankers Fidelity		18,200			32,889
Corporate and Other		(121	)		213
Total revenue	$	46,269		$	51,608

	Three Months Ended March 31,
Income (Loss) Before Income Taxes	2023			2022
American Southern	$	(330	)	$	2,085
Bankers Fidelity		1,352			3,451
Corporate and Other		(2,840	)		(1,740	)
Income (loss) before income taxes	$	(1,818	)	$	3,796

- 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
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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ (382)	$ 797
Dividends-received deduction	(7)	(6)
Meals and entertainment	12	10
Vested stock and club dues	1	0
Parking disallowance	4	4
Penalties and fines	0	149
Income tax expense (benefit)	$ (372)	954
Federal statutory income tax rate	21.00%
Components of income tax expense (benefit) [Abstract]
Current - Federal	$ 180	68
Deferred - Federal	(552)	886
Income tax expense (benefit)	$ (372)	$ 954

Recently Issued Accounting Standards (Tables)

3 Months Ended

Mar. 31, 2023

Recently Issued Accounting Standards [Abstract]

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and March 31, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the three months ended March 31, 2023.

	At and for the three months ended, March 31, 2023
(in thousands)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	25,913	$	—
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		75
Current period change for estimated uncollectible reinsurance		—		(6	)
Write-offs of uncollectible reinsurance recoverables		—		—
Balance, end of period	$	24,916	$	69

Insurance Premium and Other Receivables

The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and March 31, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the three months ended March 31, 2023.

	At and for the three months ended, March 31, 2023
(in thousands)	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Doubtful Accounts/Expected Credit Losses
Balance, beginning of period	$	15,386	$	177
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		—
Current period change for expected credit losses		—		20
Write-offs of uncollectible insurance premiums and other receivables		—		—
Balance, end of period	$	11,555	$	197

Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2023

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

Note 2.

Recently Issued Accounting Standards

Adoption of New Accounting Standards

Financial Instruments – Credit Losses. In June 2016, the FASB issued accounting standards update (“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.

Impact of Adoption on Condensed Consolidated Balance Sheet

Reinsurance Recoverables

	At and for the three months ended, March 31, 2023
(in thousands)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	25,913	$	—
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		75
Current period change for estimated uncollectible reinsurance		—		(6	)
Write-offs of uncollectible reinsurance recoverables		—		—
Balance, end of period	$	24,916	$	69

Insurance Premium and Other Receivables

	At and for the three months ended, March 31, 2023
(in thousands)	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Doubtful Accounts/Expected Credit Losses
Balance, beginning of period	$	15,386	$	177
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		—
Current period change for expected credit losses		—		20
Write-offs of uncollectible insurance premiums and other receivables		—		—
Balance, end of period	$	11,555	$	197

Future Adoption of New Accounting Standards

For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2022 Annual Report.

Accounting Policies

The following accounting policies have been updated to reflect the Company’s adoption of Financial Instruments - Credit Losses, as described above.

Credit Impairments of Fixed Maturities

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, less Allowance for Credit Losses (“ACL”), 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.

Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI.

On January 1, 2023, the Company adopted ASU 2016-13 using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI.

Reinsurance Recoverables

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.

Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Insurance Premiums and Other Receivables

Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

- Definition

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

+ References

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+ Details

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

Mar. 31, 2023

Dec. 31, 2022

Assets [Abstract]

Fixed maturities

$ 218,038

$ 208,729

Equity securities

9,181

11,562

Carrying Amount [Member]

Assets [Abstract]

Fixed maturities

^[1]

218,038

208,729

Equity securities

^[1]

9,181

11,562

Carrying Amount [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

13,548

28,863

Carrying Amount [Member] | Level 2 [Member]

Assets [Abstract]

Policy loans

1,792

1,759

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,738

Revolving credit facility

3,000

2,009

Carrying Amount [Member] | Level 3 [Member]

Assets [Abstract]

Other invested assets

5,372

5,386

Estimated Fair Value [Member]

Assets [Abstract]

Fixed maturities

^[1]

218,038

208,729

Equity securities

^[1]

9,181

11,562

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

Assets [Abstract]

Cash and cash equivalents

13,548

28,863

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

Assets [Abstract]

Policy loans

1,792

1,759

Investment in unconsolidated trusts

1,238

Liabilities [Abstract]

Junior subordinated debentures, net

33,585

33,810

Revolving credit facility

3,000

2,009

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

Assets [Abstract]

Other invested assets

$ 5,372

$ 5,386

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

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 218,038	$ 208,729
Allowance for credit losses	0	0
Amortized cost total	241,342	236,766
Estimated fair value	9,181	11,562
Cost	4,904	4,907
Amortized cost of bonds on deposit with insurance regulatory authorities	11,576	12,333
Bonds Pledged as Collateral [Member] \| FHLB Advances [Member]
Investments aggregated by type and industry [Abstract]
Amortized cost pledged as collateral to FHLB	7,761	7,221
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	218,038	208,729
Gross unrealized gains	1,057	753
Gross unrealized losses	24,361	28,790
Allowance for credit losses	0
Amortized cost total	241,342	236,766
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	49,729	44,412
Gross unrealized gains	25	5
Gross unrealized losses	5,324	5,926
Allowance for credit losses	0
Amortized cost total	55,028	50,333
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	9,545	9,187
Gross unrealized gains	30	4
Gross unrealized losses	1,367	1,702
Allowance for credit losses	0
Amortized cost total	10,882	10,885
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	158,532	154,907
Gross unrealized gains	963	713
Gross unrealized losses	17,670	21,162
Allowance for credit losses	0
Amortized cost total	175,239	175,356
Corporate Securities [Member] \| Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	22,747	22,090
Gross unrealized gains	230	120
Gross unrealized losses	2,744	3,299
Allowance for credit losses	0
Amortized cost total	25,261	25,269
Corporate Securities [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	59,765	59,054
Gross unrealized gains	456	397
Gross unrealized losses	6,422	7,085
Allowance for credit losses	0
Amortized cost total	65,731	65,742
Corporate Securities [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	32,176	31,058
Gross unrealized gains	225	161
Gross unrealized losses	3,620	4,689
Allowance for credit losses	0
Amortized cost total	35,571	35,586
Corporate Securities [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	43,844	42,705
Gross unrealized gains	52	35
Gross unrealized losses	4,884	6,089
Allowance for credit losses	0
Amortized cost total	48,676	48,759
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	232	223
Gross unrealized gains	39	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193
Redeemable Preferred Stocks [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	232	223
Gross unrealized gains	39	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	9,181	11,562
Gross unrealized gains	4,277	6,655
Gross unrealized losses	0	0
Cost	4,904	4,907
Common and Non-redeemable Preferred Stocks [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	768	790
Gross unrealized gains	497	516
Gross unrealized losses	0	0
Cost	271	274
Common and Non-redeemable Preferred Stocks [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	8,413	10,772
Gross unrealized gains	3,780	6,139
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Leases

3 Months Ended

Mar. 31, 2023

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 the three months ended March 31, 2023 and March 31, 2022 was $254.

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

	Three Months Ended March 31,
Other information on operating leases:	2023			2022
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	260		$	255
Right-of-use assets included in other assets on the condensed consolidated balance sheet		3,213			3,963
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	3.6 years			4.6 years

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

	Lease Liability
Remainder of 2023	$	789
2024		1,065
2025		1,083
2026		942
2027		—
Thereafter		—
Total undiscounted lease payments		3,879
Less: present value adjustment		455
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	3,424

As of March 31, 2023, the Company has no operating leases that have not yet commenced.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2021	$ 55	$ 22,401	$ 57,441	$ 51,264		$ 17,688	$ (73)	$ (7,490)
Balance, beginning of period (ASU 2016-13 [Member]) at Dec. 31, 2021					$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				2,842					$ 2,842
Other comprehensive income (loss), net of tax						(17,225)			(17,225)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(99)
Restricted stock grants, net of forfeitures			2				(71)	69
Amortization of unearned compensation							27
Net shares acquired related to employee share-based compensation plans								0
Balance, end of period at Mar. 31, 2022	55	$ 22,401	57,443	53,599		463	(117)	(7,421)	$ 126,423
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, 2021		20,378,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		0
Restricted stock grants, net of forfeitures (in shares)		25,000
Balance, end of period (in shares) at Mar. 31, 2022		20,403,576
Balance, beginning of period at Dec. 31, 2022	55	$ 22,401	57,425	51,982		(22,149)	(132)	(7,389)	$ 102,193
Balance, beginning of period (ASU 2016-13 [Member]) at Dec. 31, 2022					$ (75)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,446)					(1,446)
Other comprehensive income (loss), net of tax						3,739			3,739
Dividends on common stock				0
Dividends accrued on preferred stock				(99)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							73
Net shares acquired related to employee share-based compensation plans								(6)
Balance, end of period at Mar. 31, 2023	$ 55	$ 22,401	$ 57,425	$ 50,362		$ (18,410)	$ (59)	$ (7,395)	$ 104,379
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, 2022		20,407,229							20,407,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(2,530)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Mar. 31, 2023		20,404,699							20,404,699

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic Earnings (Loss) Per Common Share [Abstract]
Net income (loss)	$ (1,446)	$ 2,842
Less: preferred stock dividends	(99)	(99)
Net income (loss) applicable to common shareholders	(1,545)	2,743
Diluted Earnings (Loss) Per Common Share [Abstract]
Effect of Series D preferred stock		99
Net income (loss) applicable to common shareholders	$ (1,545)	$ 2,842
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,407	20,380
Effect of Series D preferred stock (in shares)		1,378
Weighted average shares outstanding, Diluted (in shares)	20,407	21,758
Per Share Amount, Basic [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ (0.08)	$ 0.13
Per Share Amount, Diluted [Abstract]
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ (0.08)	$ 0.13

Recently Issued Accounting Standards, Reinsurance Recoverables (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses	$ 69
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	25,913
Balance, end of period	24,916
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Current period change for estimated uncollectible reinsurance	(6)
Write-offs of uncollectible reinsurance recoverables	0
Balance, end of period	69
ASU 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	$ 75

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (1,446)	$ 2,842
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Amortization of (additions to) acquisition costs, net	22	(1,177)
Realized investment losses, net	0	10
Unrealized losses (gains) on equity securities, net	2,375	(2,193)
Losses (earnings) from equity method investees	15	(2)
Compensation expense related to share awards	73	27
Depreciation and amortization	188	240
Deferred income tax (benefit) expense	(552)	886
Decrease in receivables, net	4,828	3,789
Decrease in insurance reserves and policyholder funds	(11,408)	(10,226)
Decrease in accounts payable and accrued expenses	(5,338)	(2,676)
Other, net	(367)	473
Net cash used in operating activities	(11,610)	(8,007)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	9	44
Proceeds from investments matured, called or redeemed	1,769	3,875
Investments purchased	(6,418)	(5,052)
Additions to property and equipment	(59)	(1)
Net cash used in investing activities	(4,699)	(1,134)
CASH FLOWS FROM FINANCING ACTIVITIES:
Treasury stock acquired - net employee share-based compensation	(6)	0
Proceeds from revolving credit facility, net	1,000	0
Net cash provided by financing activities	994	0
Net decrease in cash and cash equivalents	(15,315)	(9,141)
Cash and cash equivalents at beginning of period	28,863	24,753
Cash and cash equivalents at end of period	13,548	15,612
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ 759	$ 346

Investments

3 Months Ended

Mar. 31, 2023

Investments [Abstract]

Investments

Note 3.

Investments

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, allowance for credit losses and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of March 31, 2023 and December 31, 2022.

Fixed maturities were comprised of the following:

	March 31, 2023
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	49,729	$	25	$	5,324	$	—	$	55,028
Obligations of states and political subdivisions		9,545		30		1,367		—		10,882
Corporate securities:
Utilities and telecom		22,747		230		2,744		—		25,261
Financial services		59,765		456		6,422		—		65,731
Other business – diversified		32,176		225		3,620		—		35,571
Other consumer – diversified		43,844		52		4,884		—		48,676
Total corporate securities		158,532		963		17,670		—		175,239
Redeemable preferred stocks:
Other consumer – diversified		232		39		—		—		193
Total redeemable preferred stocks		232		39		—		—		193
Total fixed maturities	$	218,038	$	1,057	$	24,361	$	—	$	241,342

	December 31, 2022
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	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

Equity securities were comprised of the following:

	March 31, 2023
	Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Cost or Amortized Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services	$	768	$	497	$	—	$	271
Other business – diversified		8,413		3,780		—		4,633
Total equity securities	$	9,181	$	4,277	$	—	$	4,904

	December 31, 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

	March 31, 2023				December 31, 2022
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	2,615	$	2,625	$	3,776	$	3,797
Due after one year through five years		54,206		56,694		40,150		42,174
Due after five years through ten years		39,358		43,465		44,044		49,711
Due after ten years		85,702		97,844		87,719		103,095
Asset backed securities		36,157		40,714		33,040		37,989
Totals	$	218,038	$	241,342	$	208,729	$	236,766

	March 31, 2023
	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	$	9,917	$	227	$	35,838	$	5,097	$	45,755	$	5,324
Obligations of states and political subdivisions		—		—		5,991		1,367		5,991		1,367
Corporate securities		21,274		525		125,555		17,145		146,829		17,670
Total temporarily impaired securities	$	31,191	$	752	$	167,384	$	23,609	$	198,575	$	24,361

	December 31, 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

Analysis of Securities in Unrealized Loss Positions

As of March 31, 2023 and December 31, 2022, there were 243 and 237 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal.

For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the recent rise in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company‘s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile.

For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated. The Company had no ACL on its available-for-sale fixed maturities as of March 31, 2023.

The following table is a summary of realized investment gains (losses) for the three month period ended March 31, 2023 and 2022.

Three Months Ended

March 31, 2023

Fixed

Maturities

Equity

Securities

Other

Invested

Assets

Total

Gains

—

Losses

—

Realized investment losses, net

—

	Three Months Ended March 31, 2022
	Fixed Maturities				Equity Securities			Other Invested Assets			Total
Gains		$	—			$	—		$	—		$	—
Losses			(10	)			—			—			(10	)
Realized investment gains, net		$	(10	)		$	—		$	—		$	(10	)

The following table presents the portion of unrealized gains (losses) related to equity securities still held for the three month period ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023				2022
Net realized and unrealized gains (losses) recognized during the period on equity securities		$	(2,375	)		$	2,193
Less: Net realized gains recognized during the period on equity securities sold during the period			—				—
Unrealized gains (losses) recognized during the reporting period on equity securities, net		$	(2,375	)		$	2,193

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 $5,372 and $5,386 as of March 31, 2023 and December 31, 2022, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of March 31, 2023 and December 31, 2022.

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 $6,610 and $6,624, as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, the Company had outstanding commitments totaling $5,872, 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.

Basis of Presentation (Details)	3 Months Ended
Basis of Presentation (Details)	Mar. 31, 2023 Segment
Basis of Presentation [Abstract]
Number of business units	2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income (loss)	$ (1,446)	$ 2,842
Available-for-sale fixed maturity securities:
Gross unrealized holding gains (losses) arising in the period	4,733	(21,813)
Related income tax effect	(994)	4,581
Subtotal	3,739	(17,232)
Less: reclassification adjustment for net realized losses included in net income (loss)	0	10
Related income tax effect	0	(3)
Subtotal	0	7
Total other comprehensive income (loss), net of tax	3,739	(17,225)
Total comprehensive income (loss)	$ 2,293	$ (14,383)

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	Jun. 12, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,404,699

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 11.

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.

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Basis of Presentation [Abstract]

Basis of Presentation

Note 1.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Atlantic American Corporation (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”), operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month period ended March 31, 2023 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2023 or for any other future period.

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

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Value [Abstract]
Due in one year or less	$ 2,615	$ 3,776
Due after one year through five years	54,206	40,150
Due after five years through ten years	39,358	44,044
Due after ten years	85,702	87,719
Asset backed securities	36,157	33,040
Carrying value total	218,038	208,729
Amortized Cost [Abstract]
Due in one year or less	2,625	3,797
Due after one year through five years	56,694	42,174
Due after five years through ten years	43,465	49,711
Due after ten years	97,844	103,095
Asset backed securities	40,714	37,989
Amortized cost total	$ 241,342	$ 236,766

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Insurance premiums, net	$ 46,100	$ 47,081
Net investment income	2,541	2,340
Realized investment losses, net	0	(10)
Unrealized gains (losses) on equity securities, net	(2,375)	2,193
Other income	3	4
Total revenue	46,269	51,608
Benefits and expenses:
Insurance benefits and losses incurred	30,460	31,169
Commissions and underwriting expenses	12,918	12,836
Interest expense	750	354
Other expense	3,959	3,453
Total benefits and expenses	48,087	47,812
Income (loss) before income taxes	(1,818)	3,796
Income tax expense (benefit)	(372)	954
Net income (loss)	(1,446)	2,842
Preferred stock dividends	(99)	(99)
Net income (loss) applicable to common shareholders	$ (1,545)	$ 2,743
Earnings (loss) per common share (basic) (in dollars per share)	$ (0.08)	$ 0.13
Earnings (loss) per common share (diluted) (in dollars per share)	$ (0.08)	$ 0.13

Internal-Use Software

3 Months Ended

Mar. 31, 2023

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 $592 and $8 during the three months ended March 31, 2023 and 2022, respectively. As a result, the Company has capitalized $3,614 in implementation costs in other assets within its condensed consolidated balance sheet as of March 31, 2023. The Company expects the software will be substantially ready for its intended use in the three months ended September 30, 2023. Accordingly, the Company has not recorded any amortization expense related to software implementation costs for the three months ended March 31, 2023.

Recently Issued Accounting Standards, Insurance Premium and Other Receivables (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	$ 15,386
Balance, end of period	11,555
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	177
Current period change for expected credit losses	20
Write-offs of uncollectible insurance premiums and other receivables	0
Balance, end of period	197
ASU 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	0
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	$ 0

Recently Issued Accounting Standards (Policies)

3 Months Ended

Mar. 31, 2023

Recently Issued Accounting Standards [Abstract]

Adoption of New Accounting Standards

Impact of Adoption on Condensed Consolidated Balance Sheet

Reinsurance Recoverables

	At and for the three months ended, March 31, 2023
(in thousands)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period	$	25,913	$	—
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		75
Current period change for estimated uncollectible reinsurance		—		(6	)
Write-offs of uncollectible reinsurance recoverables		—		—
Balance, end of period	$	24,916	$	69

Insurance Premium and Other Receivables

	At and for the three months ended, March 31, 2023
(in thousands)	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Doubtful Accounts/Expected Credit Losses
Balance, beginning of period	$	15,386	$	177
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023		—		—
Current period change for expected credit losses		—		20
Write-offs of uncollectible insurance premiums and other receivables		—		—
Balance, end of period	$	11,555	$	197

Future Adoption of New Accounting Standards

Credit Impairments of Fixed Maturities

Reinsurance Recoverables

Insurance Premiums and Other Receivables

- Definition

Disclosure of accounting policy for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. Includes, but is not limited to, methodology used to estimate allowance for credit loss, how writeoff of uncollectible amount is recognized, and determination of past due status and nonaccrual status.

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+ Details

Credit Arrangements

3 Months Ended

Mar. 31, 2023

Credit Arrangements [Abstract]

Credit Arrangements

Note 7.

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 March 31, 2023, the Company had outstanding borrowings of $3,000 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.

The financial structure of each of Atlantic American Statutory Trust I and II as of March 31, 2023 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed March 31, 2023	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance March 31, 2023	$	18,042	$	15,696
Net balance December 31, 2022	$	18,042	$	15,696
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Interest payable	Quarterly		Quarterly
Maturity date	December 4, 2032		May 15, 2033
Redeemable by issuer	Yes		Yes
TRUST PREFERRED SECURITIES
Issuance date	December 4, 2002		May 15, 2003
Securities issued		17,500		22,500
Liquidation preference per security	$	1	$	1
Liquidation value	$	17,500	$	22,500
Coupon rate	LIBOR + 4.00%		LIBOR + 4.10%
Distribution payable	Quarterly		Quarterly
Distribution guaranteed by ⁽⁴⁾	Atlantic American Corporation		Atlantic American Corporation

(1)

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

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

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

- 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.

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+ Details

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Income Taxes [Abstract]

Reconciliation of Income Tax Expense (Benefit)

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

	Three Months Ended March 31,
	2023			2022
Federal income tax provision at statutory rate of 21%	$	(382	)	$	797
Dividends-received deduction		(7	)		(6	)
Meals and entertainment		12			10
Vested stock and club dues		1			—
Parking disallowance		4			4
Penalties and fines		—			149
Income tax expense (benefit)	$	(372	)	$	954

Components of Income Tax Expense

The components of income tax expense (benefit) were:

	Three Months Ended March 31,
	2023			2022
Current – Federal	$	180		$	68
Deferred – Federal		(552	)		886
Total	$	(372	)	$	954