0001140361-24-046143 | 10-Q | XBRL Viewer

Credit Arrangements

9 Months Ended

Sep. 30, 2024

Note 8.

Credit Arrangements

Bank Debt

On May 12, 2021, the Company entered into a Revolving Credit Agreement with Truist Bank as the lender (the “Lender”). The Revolving Credit Agreement provides for an unsecured $10,000 revolving credit facility that originally matured on April 12, 2024. On March 22, 2024, the Company entered into a First Amendment (the “Amendment”) to its Revolving Credit Agreement (as amended, the “Credit Agreement”) with the Lender. The Amendment, among other things, (a) updates the interest rate provisions to memorialize that the Company pays interest on the unpaid principal balance of outstanding revolving loans at the Adjusted Term SOFR rate (as defined in the Credit Agreement), plus 2.00%, (b) extends the maturity date of the revolving credit facility to March 22, 2027, (c) requires the monthly payment of an unused commitment fee of 0.2% of the unused facility amount, and (d) requires that the Company maintain a consolidated net worth of not less than $64,200. Except as modified by the Amendment, the existing terms of the original Credit Agreement remain in effect.

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 and maintaining a minimum consolidated net worth, as previously mentioned. 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 September 30, 2024, and December 31, 2023, the Company had outstanding borrowings including accrued interest of $4,024 and $3,019, respectively, under the Credit Agreement.

For the three months ended September 30, 2024 and 2023, the Company incurred $77 and $56 in interest expense, respectively, on the revolving credit facility borrowing. For the nine months ended September 30, 2024 and 2023, the Company incurred $213 and $142, respectively, in interest expense. During the three month and nine month periods ended September 30, 2024, the Company paid $3 and $6, respectively, in fees on the available unused amount of the revolving credit facility of $6,000. At September 30, 2024 and December 31, 2023, the effective interest rate was 7.35% and 9.69%, respectively.

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 the Company; and (iii) engaging in those activities necessary or incidental thereto.

The outstanding $18,042 and $15,696 of Junior Subordinated Debentures mature on December 4, 2032 and May 15, 2033, respectively, are callable quarterly, in whole or in part, only at the option of the Company. Prior to July 1, 2023, the interest rate was based on 3-month LIBOR plus an applicable margin. Effective July 1, 2023, the interest rate is determined based on a reference rate of the 3-month SOFR plus applicable tenor spread of 0.26161% plus an applicable margin, ranging from 4.00% to 4.10%. At September 30, 2024, the effective interest rate was 9.39%.

The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2024 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed September 30, 2024	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance September 30, 2024	$	18,042	$	15,696
Net balance December 31, 2023	$	18,042	$	15,696
Coupon rate	3-Month SOFR + 0.26161% spread adj + 4.00%		3-Month SOFR + 0.26161% spread adj + 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	3-Month SOFR + 0.26161% spread adj + 4.00%		3-Month SOFR + 0.26161% spread adj + 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.

- 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

Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Values of Financial Instruments [Abstract]

Financial Instruments Carried at Fair Value Measured on a Recurring Basis

As of September 30, 2024, 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	$	—	$	221,696	$	—	$	221,696
Equity securities		7,611		—		189		7,800
Cash equivalents		13,329		—		—		13,329
Total	$	20,940	$	221,696	$	189	$	242,825

As of December 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	$	—	$	218,219	$	—	$	218,219
Equity securities		9,228		—		185		9,413
Cash equivalents		14,834		—		—		14,834
Total	$	24,062	$	218,219	$	185	$	242,466

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 September 30, 2024 and December 31, 2023.

		September 30, 2024				December 31, 2023
	Level in Fair Value Hierarchy ⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	23,035	$	23,035	$	28,301	$	28,301
Fixed maturities	Level 2		221,696		221,696		218,219		218,219
Equity securities	⁽¹⁾		7,800		7,800		9,413		9,413
Policy loans	Level 3		1,738		1,738		1,778		1,778

Liabilities:
Junior subordinated debentures, net	Level 2		33,738		36,211		33,738		33,670
Revolving credit facility	Level 2		4,024		4,024		3,019		3,019

(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.

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 Loss [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2022	$ 55	$ 22,401	$ 57,425	$ 51,982	$ (75)	$ (22,149)	$ (132)	$ (7,389)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]					ASU 2016-13 [Member]
Net income (loss)				2,057					$ 2,057
Other comprehensive income (loss), net of tax						(4,826)			(4,826)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(299)
Amortization of unearned compensation							116
Net shares acquired related to employee share-based compensation plans								(12)
Balance, end of period at Sep. 30, 2023	55	$ 22,401	57,425	53,257		(26,975)	(16)	(7,401)	$ 98,746
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(4,941)
Balance, end of period (in shares) at Sep. 30, 2023		20,402,288
Balance, beginning of period at Jun. 30, 2023	55	$ 22,401	57,425	52,006		(20,967)	(33)	(7,401)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,759					$ 1,759
Other comprehensive income (loss), net of tax						(6,008)			(6,008)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(100)
Amortization of unearned compensation							17
Net shares acquired related to employee share-based compensation plans								0
Balance, end of period at Sep. 30, 2023	55	$ 22,401	57,425	53,257		(26,975)	(16)	(7,401)	$ 98,746
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 Jun. 30, 2023		20,402,288
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2023		20,402,288
Balance, beginning of period at Dec. 31, 2023	55	$ 22,401	57,425	50,929		(16,121)	(13)	(7,401)	$ 107,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(4,680)					(4,680)
Other comprehensive income (loss), net of tax						3,868			3,868
Dividends on common stock				(407)
Dividends accrued on preferred stock				(299)
Amortization of unearned compensation							9
Net shares acquired related to employee share-based compensation plans								(7)
Balance, end of period at Sep. 30, 2024	55	$ 22,401	57,425	45,543		(12,253)	(4)	(7,408)	$ 105,759
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, 2023		20,402,288							20,402,288
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(2,530)
Balance, end of period (in shares) at Sep. 30, 2024		20,399,758							20,399,758
Balance, beginning of period at Jun. 30, 2024	55	$ 22,401	57,425	47,641		(19,435)	(7)	(7,408)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(1,998)					$ (1,998)
Other comprehensive income (loss), net of tax						7,182			7,182
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Amortization of unearned compensation							3
Net shares acquired related to employee share-based compensation plans								0
Balance, end of period at Sep. 30, 2024	$ 55	$ 22,401	$ 57,425	$ 45,543		$ (12,253)	$ (4)	$ (7,408)	$ 105,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)									$ 0
Balance, beginning of period (in shares) at Jun. 30, 2024		20,399,758
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2024		20,399,758							20,399,758

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying Value [Abstract]
Due in one year or less	$ 8,345	$ 1,715
Due after one year through five years	60,863	60,423
Due after five years through ten years	31,179	33,596
Due after ten years	89,027	86,857
Asset backed securities	32,282	35,628
Carrying value total	221,696	218,219
Amortized Cost [Abstract]
Due in one year or less	8,377	1,750
Due after one year through five years	61,888	62,423
Due after five years through ten years	32,624	36,752
Due after ten years	98,917	97,984
Asset backed securities	35,401	39,717
Amortized cost total	$ 237,207	$ 238,626

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Note 11.

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 nine months ended September 30, 2024 and September 30, 2023 was $761.

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

	Nine Months Ended September 30,
Other information on operating leases:	2024			2023
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	797		$	784
Right-of-use assets included in other assets on the condensed consolidated balance sheet		1,981			2,817
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	2.1 years			3.1 years

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

	Lease Liability
Remainder of 2024	$	268
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		2,293
Less: present value adjustment		164
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	2,129

As of September 30, 2024, the Company has no operating leases that have not yet commenced.

Allowance for Expected Credit Losses, Reinsurance Recoverables (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reinsurance Recoverables, Net of Allowance for Expected Credit Losses [Abstract]
Balance, beginning of period	$ 22,496	$ 22,261	$ 21,103	$ 25,913
Balance, end of period	21,600	21,839	21,600	21,839
Allowance for Expected Credit Losses [Abstract]
Balance, beginning of period	54	66	61	0
Current period change for estimated uncollectible reinsurance	(1)	(2)	(8)	(11)
Write-offs of uncollectible reinsurance recoverables	0	0	0	0
Balance, end of period	$ 53	64	$ 53	64
ASU 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Allowance for Expected Credit Losses [Abstract]
Balance, beginning of period		0
Balance, end of period		$ 75		$ 75

Insurance Reserves for Losses and Claims

9 Months Ended

Sep. 30, 2024

Insurance Reserves for Losses and Claims [Abstract]

Insurance Reserves for Losses and Claims

Note 7.

Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2024 and 2023 is as follows:

	Nine Months Ended September 30,
	2024			2023
Beginning insurance reserves for losses and claims, gross	$	87,478		$	87,484
Less: Reinsurance recoverable on unpaid losses		(14,678	)		(17,647	)
Beginning insurance reserves for losses and claims, net		72,800			69,837

Incurred related to:
Current accident year		85,132			82,276
Prior accident year development		3,404	⁽¹⁾		2,706	⁽²⁾
Total incurred		88,536			84,982

Paid related to:
Current accident year		40,786			43,595
Prior accident years		45,465			41,634
Total paid		86,251			85,229
Ending insurance reserves for losses and claims, net		75,085			69,590
Plus: Reinsurance recoverable on unpaid losses		16,779			16,089
Ending insurance reserves for losses and claims, gross	$	91,864		$	85,679

(1)	Prior years’ development was primarily the result of unfavorable development in the property and casualty operations predominately in the automobile liability line of business due to inflationary factors.

(2)

Prior years’ development was primarily the result of unfavorable development in the property and casualty operations predominately in the automobile liability line of business due to inflationary factors, partially offset by favorable development in the Medicare supplement line of business in the life and health operations.

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

	Nine Months Ended September 30,
	2024		2023
Total incurred losses	$	88,536	$	84,982
Cash surrender value and matured endowments		898		1,063
Benefit reserve changes		5,058		598
Total insurance benefits and losses incurred	$	94,492	$	86,643

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Additional Information of Operating Leases

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

	Nine Months Ended September 30,
Other information on operating leases:	2024			2023
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	797		$	784
Right-of-use assets included in other assets on the condensed consolidated balance sheet		1,981			2,817
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	2.1 years			3.1 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 2024	$	268
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		2,293
Less: present value adjustment		164
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	2,129

Credit Arrangements (Tables)

9 Months Ended

Sep. 30, 2024

Credit Arrangements [Abstract]

Financial Structure of Statutory Business Trusts

The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2024 was as follows:

	Atlantic American Statutory Trust I		Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES ^{(1) (2)}
Principal amount owed September 30, 2024	$	18,042	$	23,196
Less: Treasury debt ⁽³⁾		—		(7,500	)
Net balance September 30, 2024	$	18,042	$	15,696
Net balance December 31, 2023	$	18,042	$	15,696
Coupon rate	3-Month SOFR + 0.26161% spread adj + 4.00%		3-Month SOFR + 0.26161% spread adj + 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	3-Month SOFR + 0.26161% spread adj + 4.00%		3-Month SOFR + 0.26161% spread adj + 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.

Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2024

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

Note 2.

Recently Issued Accounting Standards

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 2023 Annual Report.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476173/280-10-65-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 105
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479343/105-10-65-7

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483550/848-10-65-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (g)(4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483550/848-10-65-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483550/848-10-65-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480016/944-40-65-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480530/250-10-S99-5

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 20
-Name Accounting Standards Codification
-Section 65
-Paragraph 6
-Subparagraph (i)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480528/815-20-65-6

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479654/326-10-65-4

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479654/326-10-65-4

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-Publisher FASB
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147483194/926-20-65-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147483194/926-20-65-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480530/250-10-S99-6

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 250
-Publisher FASB
-URI https://asc.fasb.org/250/tableOfContent

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

+ Details

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

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Insurance Reserves for Losses and Claims [Roll Forward]

Beginning insurance reserves for losses and claims, gross

$ 87,478

$ 87,484

Less: Reinsurance recoverable on unpaid losses

(14,678)

(17,647)

Beginning insurance reserves for losses and claims, net

72,800

69,837

Incurred related to [Abstract]

Current accident year

85,132

82,276

Prior accident year development

3,404

^[1]

2,706

^[2]

Total incurred

88,536

84,982

Paid related to [Abstract]

Current accident year

40,786

43,595

Prior accident years

45,465

41,634

Total paid

86,251

85,229

Ending insurance reserves for losses and claims, net

$ 75,085

$ 69,590

75,085

69,590

Plus: Reinsurance recoverable on unpaid losses

16,779

16,089

16,779

16,089

Ending insurance reserves for losses and claims, gross

91,864

85,679

91,864

85,679

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

Total incurred losses

88,536

84,982

Cash surrender value and matured endowments

898

1,063

Benefit reserve changes

5,058

598

Total insurance benefits and losses incurred

$ 30,760

$ 26,818

$ 94,492

$ 86,643

[1]	Prior years’ development was primarily the result of unfavorable development in the property and casualty operations predominately in the automobile liability line of business due to inflationary factors.
[2]	Prior years’ development was primarily the result of unfavorable development in the property and casualty operations predominately in the automobile liability line of business due to inflationary factors, partially offset by favorable development in the Medicare supplement line of business in the life and health operations.

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) Security	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Security	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) Security
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 1,120		$ 1,120		$ 6,878
12 months or longer	172,727		172,727		183,695
Total	173,847		173,847		190,573
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	128		128		53
12 months or longer	17,298		17,298		21,638
Total	$ 17,426		$ 17,426		$ 21,691
Number of securities in unrealized loss position \| Security	183		183		222
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0		$ 0		$ 0
Realized investment gains	4	$ 0	17	$ 70
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	250		250		5,194
12 months or longer	34,170		34,170		39,476
Total	34,420		34,420		44,670
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0		0		37
12 months or longer	3,802		3,802		4,907
Total	3,802		3,802		4,944
Allowance for expected credit losses on available-for-sale fixed maturities	0		0		0
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	0		0		1,145
12 months or longer	6,190		6,190		5,936
Total	6,190		6,190		7,081
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	0		0		3
12 months or longer	1,166		1,166		1,421
Total	1,166		1,166		1,424
Allowance for expected credit losses on available-for-sale fixed maturities	0		0		0
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	870		870		539
12 months or longer	132,367		132,367		138,283
Total	133,237		133,237		138,822
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	128		128		13
12 months or longer	12,330		12,330		15,310
Total	12,458		12,458		15,323
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0		$ 0		$ 0

Allowance for Expected Credit Losses, Insurance Premium and Other Receivables (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	$ 34,220	$ 30,825	$ 23,690	$ 15,386
Balance, end of period	30,492	24,687	30,492	24,687
Allowance for Expected Credit Losses [Abstract]
Balance, beginning of period	219	213	217	177
Current period change for expected credit losses	(4)	(22)	(2)	14
Write-offs of uncollectible insurance premiums and other receivables	0	0	0	0
Balance, end of period	$ 215	191	$ 215	191
ASU 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Allowance for Expected Credit Losses [Abstract]
Balance, beginning of period		$ 0		$ 0

Earnings (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings (Loss) Per Common Share [Abstract]

Reconciliation of Numerator and Denominator used in 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 September 30, 2024
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,998	)		20,400
Less preferred stock dividends		(100	)		—
Net loss applicable to common shareholders	$	(2,098	)		20,400	$	(0.10	)

	Three Months Ended September 30, 2023
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	1,759			20,402
Less preferred stock dividends		(100	)		—
Net income applicable to common shareholders	$	1,659			20,402	$	0.08
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		100			1,378
Net income applicable to common shareholders	$	1,759			21,780	$	0.08

	Nine Months Ended September 30, 2024
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(4,680	)		20,401
Less preferred stock dividends		(299	)		—
Net loss applicable to common shareholders	$	(4,979	)		20,401	$	(0.24	)

	Nine Months Ended September 30, 2023
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share:
Net income	$	2,057			20,405
Less preferred stock dividends		(299	)		—
Net income applicable to common shareholders	$	1,758			20,405	$	0.09

Allowance for Expected Credit Losses

9 Months Ended

Sep. 30, 2024

Allowance for Expected Credit Losses [Abstract]

Allowance for Expected Credit Losses

Note 5.

Allowance for Expected Credit Losses

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for expected credit losses, at September 30, 2024 and 2023, and the changes in the allowance for expected credit losses for the three month and nine month periods ended September 30, 2024 and 2023.

	At and for the three months ended September 30, 2024					At and for the nine months ended September 30, 2024
	Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses			Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	22,496	$	54		$	21,103	$	61
Current period change for estimated uncollectible reinsurance				(1	)				(8	)
Write-offs of uncollectible reinsurance recoverables				—					—
Balance, end of period	$	21,600	$	53		$	21,600	$	53

	At and for the three months ended September 30, 2023					At and for the nine months ended September 30, 2023
	Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses			Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	22,261	$	66		$	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				(2	)				(11	)
Write-offs of uncollectible reinsurance recoverables				—					—
Balance, end of period	$	21,839	$	64		$	21,839	$	64

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 September 30, 2024 and 2023, and the changes in the allowance for expected credit losses for the three month and nine month periods ended September 30, 2024 and 2023.

	At and for the three months ended September 30, 2024					At and for the nine months ended September 30, 2024
	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses			Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	34,220	$	219		$	23,690	$	217
Current period change for expected credit losses				(4	)				(2	)
Write-offs of uncollectible insurance premiums and other receivables				—					—
Balance, end of period	$	30,492	$	215		$	30,492	$	215

	At and for the three months ended September 30, 2023					At and for the nine months ended September 30, 2023
	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses			Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	30,825	$	213		$	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				(22	)				14
Write-offs of uncollectible insurance premiums and other receivables				—					—
Balance, end of period	$	24,687	$	191		$	24,687	$	191

Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Information [Abstract]

Assets, Revenue Loss Before Income Taxes for Each Business Unit

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 2024 and 2023.

Assets	September 30, 2024		December 31, 2023
American Southern	$	148,024	$	149,236
Bankers Fidelity		207,259		203,079
Corporate and Other		31,706		28,950
Total assets	$	386,989	$	381,265

	Three Months Ended September 30,					Nine Months Ended September 30,
Revenues	2024		2023			2024		2023
American Southern	$	17,282	$	17,652		$	54,666	$	54,817
Bankers Fidelity		27,125		27,249			84,499		85,632
Corporate and Other		112		(310	)		19		(401	)
Total revenue	$	44,519	$	44,591		$	139,184	$	140,048

	Three Months Ended September 30,						Nine Months Ended September 30,
Income (Loss) Before Income Taxes	2024			2023			2024			2023
American Southern	$	(528	)	$	1,437		$	1,730		$	3,823
Bankers Fidelity		367			3,502			275			6,705
Corporate and Other		(2,293	)		(2,801	)		(7,814	)		(7,991	)
Income (loss) before income taxes	$	(2,454	)	$	2,138		$	(5,809	)	$	2,537

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ (515)	$ 449	$ (1,220)	$ 533
Dividends-received deduction	(10)	(10)	(22)	(27)
Meals and entertainment	18	9	53	32
Vested stock and club dues	0	11	1	14
Parking disallowance	7	5	15	13
Adjustment for prior years' estimates to actual	44	(85)	44	(85)
Income tax expense (benefit)	(456)	379	$ (1,129)	480
Federal statutory income tax rate			21.00%
Components of income tax benefit [Abstract]
Current - Federal	296	790	$ 296	2,191
Deferred - Federal	(752)	(411)	(1,425)	(1,711)
Income tax expense (benefit)	$ (456)	$ 379	$ (1,129)	$ 480

Recently Issued Accounting Standards (Policies)	9 Months Ended
Recently Issued Accounting Standards (Policies)	Sep. 30, 2024
Recently Issued Accounting Standards [Abstract]
Future Adoption of New Accounting Standards	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 2023 Annual Report.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investments:
Fixed maturities, cost	$ 237,207	$ 238,626
Allowance for credit losses	0	0
Equity securities, cost	4,940	4,936
Other invested assets, cost	9,300	6,982
Receivables:
Reinsurance, allowance for expected credit losses	53	61
Insurance premiums and other, allowance for expected credit losses/allowance for doubtful accounts	$ 215	$ 217
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)	20,399,758	20,402,288
Treasury stock, at cost (in shares)	2,001,136	1,998,606

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue:
Insurance premiums, net	$ 43,782	$ 43,746	$ 133,327	$ 135,906
Net investment income	2,477	2,325	7,449	7,425
Realized investment gains, net	4	0	17	70
Unrealized losses on equity securities, net	(1,746)	(1,486)	(1,617)	(3,367)
Other income	2	6	8	14
Total revenue	44,519	44,591	139,184	140,048
Benefits and expenses:
Insurance benefits and losses incurred	30,760	26,818	94,492	86,643
Commissions and underwriting expenses	11,490	11,064	35,740	36,830
Interest expense	869	850	2,591	2,407
Other expense	3,854	3,721	12,170	11,631
Total benefits and expenses	46,973	42,453	144,993	137,511
Income (loss) before income taxes	(2,454)	2,138	(5,809)	2,537
Income tax expense (benefit)	(456)	379	(1,129)	480
Net income (loss)	(1,998)	1,759	(4,680)	2,057
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	$ (2,098)	$ 1,659	$ (4,979)	$ 1,758
Earnings (loss) per common share (basic) (in dollars per share)	$ (0.1)	$ 0.08	$ (0.24)	$ 0.09
Earnings (loss) per common share (diluted) (in dollars per share)	$ (0.1)	$ 0.08	$ (0.24)	$ 0.09

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic Earnings (Loss) Per Common Share [Abstract]
Net income (loss)	$ (1,998)	$ 1,759	$ (4,680)	$ 2,057
Less preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	(2,098)	1,659	(4,979)	1,758
Diluted Earnings (Loss) Per Common Share [Abstract]
Effect of Series D preferred stock		100
Net income (loss) applicable to common shareholders	$ (2,098)	$ 1,759	$ (4,979)	$ 1,758
Weighted Average Shares [Abstract]
Effect of Series D preferred stock (in shares)		1,378
Weighted average shares outstanding, Basic (in shares)	20,400	20,402	20,401	20,405
Weighted average shares outstanding, Diluted (in shares)	20,400	21,780	20,401	20,405
Per Share Amount, Basic [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ (0.1)	$ 0.08	$ (0.24)	$ 0.09
Per Share Amount, Diluted [Abstract]
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ (0.1)	$ 0.08	$ (0.24)	$ 0.09

Basis of Presentation and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2024 Segment
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of business units	2

Investments, Unrealized Losses on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments [Abstract]
Net realized and unrealized losses recognized during the period on equity securities	$ (1,746)	$ (1,486)	$ (1,617)	$ (3,367)
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0	0	0
Unrealized losses recognized during the reporting period on equity securities, net	$ (1,746)	$ (1,486)	$ (1,617)	$ (3,367)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Information [Abstract]
Number of business units \| Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 386,989		$ 386,989		$ 381,265
Revenues	44,519	$ 44,591	139,184	$ 140,048
Income (loss) before income taxes	(2,454)	2,138	(5,809)	2,537
Operating Segments [Member] \| American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	148,024		148,024		149,236
Revenues	17,282	17,652	54,666	54,817
Income (loss) before income taxes	(528)	1,437	1,730	3,823
Operating Segments [Member] \| Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	207,259		207,259		203,079
Revenues	27,125	27,249	84,499	85,632
Income (loss) before income taxes	367	3,502	275	6,705
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	31,706		31,706		$ 28,950
Revenues	112	(310)	19	(401)
Income (loss) before income taxes	$ (2,293)	$ (2,801)	$ (7,814)	$ (7,991)

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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		20,399,758

Segment Information

9 Months Ended

Sep. 30, 2024

Segment Information [Abstract]

Segment Information

Note 13.

Segment Information

Assets	September 30, 2024		December 31, 2023
American Southern	$	148,024	$	149,236
Bankers Fidelity		207,259		203,079
Corporate and Other		31,706		28,950
Total assets	$	386,989	$	381,265

	Three Months Ended September 30,					Nine Months Ended September 30,
Revenues	2024		2023			2024		2023
American Southern	$	17,282	$	17,652		$	54,666	$	54,817
Bankers Fidelity		27,125		27,249			84,499		85,632
Corporate and Other		112		(310	)		19		(401	)
Total revenue	$	44,519	$	44,591		$	139,184	$	140,048

	Three Months Ended September 30,						Nine Months Ended September 30,
Income (Loss) Before Income Taxes	2024			2023			2024			2023
American Southern	$	(528	)	$	1,437		$	1,730		$	3,823
Bankers Fidelity		367			3,502			275			6,705
Corporate and Other		(2,293	)		(2,801	)		(7,814	)		(7,991	)
Income (loss) before income taxes	$	(2,454	)	$	2,138		$	(5,809	)	$	2,537

- 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.

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+ Details

Earnings (Loss) Per Common Share

9 Months Ended

Sep. 30, 2024

Earnings (Loss) Per Common Share [Abstract]

Earnings (Loss) Per Common Share

Note 9.

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 September 30, 2024
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(1,998	)		20,400
Less preferred stock dividends		(100	)		—
Net loss applicable to common shareholders	$	(2,098	)		20,400	$	(0.10	)

	Three Months Ended September 30, 2023
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic Earnings Per Common Share:
Net income	$	1,759			20,402
Less preferred stock dividends		(100	)		—
Net income applicable to common shareholders	$	1,659			20,402	$	0.08
Diluted Earnings Per Common Share:
Effect of Series D preferred stock		100			1,378
Net income applicable to common shareholders	$	1,759			21,780	$	0.08

	Nine Months Ended September 30, 2024
	Loss			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss	$	(4,680	)		20,401
Less preferred stock dividends		(299	)		—
Net loss applicable to common shareholders	$	(4,979	)		20,401	$	(0.24	)

	Nine Months Ended September 30, 2023
	Income			Weighted Average Shares (In thousands)		Per Share Amount
Basic and Diluted Earnings Per Common Share:
Net income	$	2,057			20,405
Less preferred stock dividends		(299	)		—
Net income applicable to common shareholders	$	1,758			20,405	$	0.09

The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings (loss) per common share calculation for all periods presented, except for the three month period ended September 30, 2023, since its impact would have been antidilutive.

Investments (Tables)

9 Months Ended

Sep. 30, 2024

Investments [Abstract]

Investments Aggregated by Type and Industry

Fixed maturities were comprised of the following:

	September 30, 2024
	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	$	47,712	$	114	$	3,802	$	—	$	51,400
Obligations of states and political subdivisions		7,998		31		1,166		—		9,133
Corporate securities:
Utilities and telecom		23,997		343		2,310		—		25,964
Financial services		60,596		811		3,323		—		63,108
Other business – diversified		35,873		434		2,450		—		37,889
Other consumer – diversified		45,300		155		4,375		—		49,520
Total corporate securities		165,766		1,743		12,458		—		176,481
Redeemable preferred stocks:
Other consumer – diversified		220		27		—		—		193
Total redeemable preferred stocks		220		27		—		—		193
Total fixed maturities	$	221,696	$	1,915	$	17,426	$	—	$	237,207

	December 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	$	50,059	$	63	$	4,944	$	—	$	54,940
Obligations of states and political subdivisions		8,106		15		1,424		—		9,515
Corporate securities:
Utilities and telecom		21,309		143		2,582		—		23,748
Financial services		59,584		560		4,931		—		63,955
Other business – diversified		34,386		403		2,940		—		36,923
Other consumer – diversified		44,570		87		4,870		—		49,353
Total corporate securities		159,849		1,193		15,323		—		173,979
Redeemable preferred stocks:
Other consumer – diversified		205		13		—		—		192
Total redeemable preferred stocks		205		13		—		—		192
Total fixed maturities	$	218,219	$	1,284	$	21,691	$	—	$	238,626

Bonds having an amortized cost of $14,720 and $14,647 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2024 and December 31, 2023, respectively, in accordance with statutory requirements. In addition, the Company maintains cash and cash equivalents on deposit with insurance regulatory authorities of $226 as of September 30, 2024 and December 31, 2023. Additionally, bonds having an amortized cost of $9,282 and $9,584 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2024 and December 31, 2023, respectively.

Equity securities were comprised of the following:

	September 30, 2024
	Estimated Fair Value			Gross Unrealized Gains			Gross Unrealized Losses			Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	1,105		$	798		$	—		$	307
Communications			6,695			2,062			—			4,633
Total equity securities		$	7,800		$	2,860		$	—		$	4,940

	December 31, 2023
	Estimated Fair Value			Gross Unrealized Gains			Gross Unrealized Losses			Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	924		$	621		$	—		$	303
Communications			8,489			3,856			—			4,633
Total equity securities		$	9,413		$	4,477		$	—		$	4,936

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 September 30, 2024 and December 31, 2023 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.

	September 30, 2024				December 31, 2023
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	8,345	$	8,377	$	1,715	$	1,750
Due after one year through five years		60,863		61,888		60,423		62,423
Due after five years through ten years		31,179		32,624		33,596		36,752
Due after ten years		89,027		98,917		86,857		97,984
Asset backed securities		32,282		35,401		35,628		39,717
Totals	$	221,696	$	237,207	$	218,219	$	238,626

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 September 30, 2024 and December 31, 2023.

	September 30, 2024
	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		$	250		$	—		$	34,170		$	3,802		$	34,420		$	3,802
Obligations of states and political subdivisions			—			—			6,190			1,166			6,190			1,166
Corporate securities			870			128			132,367			12,330			133,237			12,458
Total temporarily impaired securities		$	1,120		$	128		$	172,727		$	17,298		$	173,847		$	17,426

	December 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		$	5,194		$	37		$	39,476		$	4,907		$	44,670		$	4,944
Obligations of states and political subdivisions			1,145			3			5,936			1,421			7,081			1,424
Corporate securities			539			13			138,283			15,310			138,822			15,323
Total temporarily impaired securities		$	6,878		$	53		$	183,695		$	21,638		$	190,573		$	21,691

Summary of Realized Investment Gains (Losses)

The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2024 and 2023.

	Three Months Ended September 30, 2024
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	4		$	—		$	—		$	4
Losses			—			—			—			—
Realized investment gains, net		$	4		$	—		$	—		$	4

Three Months Ended

September 30, 2023

Fixed

Maturities

Equity

Securities

Other

Invested Assets

Total

Gains

—

Losses

—

Realized investment gains, net

—

	Nine Months Ended September 30, 2024
	Fixed Maturities				Equity Securities			Other Invested Assets			Total
Gains		$	19			$	—		$	—		$	19
Losses			(2	)			—			—			(2	)
Realized investment gains, net		$	17			$	—		$	—		$	17

	Nine Months Ended September 30, 2023
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	70		$	—		$	—		$	70
Losses			—			—			—			—
Realized investment gains, net		$	70		$	—		$	—		$	70

Unrealized Gains (Losses) on Equity Securities

The following table presents the change in unrealized losses related to equity securities still held for the three month and nine month periods ended September 30, 2024 and 2023.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net realized and unrealized losses recognized during the period on equity securities	$	(1,746	)	$	(1,486	)	$	(1,617	)	$	(3,367	)
Less: Net realized gains recognized during the period on equity securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on equity securities, net	$	(1,746	)	$	(1,486	)	$	(1,617	)	$	(3,367	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (4,680)	$ 2,057
Adjustments to reconcile net (loss) income to net cash used in operating activities:
(Additions to) amortization of acquisition costs, net	(434)	355
Realized investment gains, net	(17)	(70)
Unrealized investment losses, net	1,617	3,367
Losses from equity method investees	494	343
Compensation expense related to share awards	9	116
(Benefit) provision for credit losses	(10)	3
Depreciation and amortization	297	521
Deferred income tax benefit	(1,425)	(1,711)
Increase in receivables, net	(7,289)	(5,230)
Increase (decrease) in insurance reserves and policyholder funds	6,460	(663)
Decrease in accounts payable and accrued expenses	(524)	(2,644)
Other, net	689	13
Net cash used in operating activities	(4,813)	(3,543)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	40	5,038
Proceeds from investments matured, called or redeemed	9,963	8,000
Investments purchased	(10,916)	(14,942)
Additions to property and equipment	(126)	(75)
Net cash used in investing activities	(1,039)	(1,979)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	(407)	(408)
Treasury stock acquired - net employee share-based compensation	(7)	(12)
Proceeds from revolving credit facility, net	1,000	1,000
Net cash provided by financing activities	586	580
Net decrease in cash and cash equivalents	(5,266)	(4,942)
Cash and cash equivalents at beginning of period	28,301	28,863
Cash and cash equivalents at end of period	23,035	23,921
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	2,600	2,370
Cash paid for income taxes	$ 580	$ 2,026

Leases (Details) $ in Thousands	9 Months Ended
Leases (Details) $ in Thousands	Sep. 30, 2024 USD ($) Lease	Sep. 30, 2023 USD ($)
Lease description [Abstract]
Number of operating lease agreements \| Lease	2
Lease expense	$ 761	$ 761
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	797	784
Right-of-use assets included in other assets on the condensed consolidated balance sheet	$ 1,981	$ 2,817
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	2 years 1 month 6 days	3 years 1 month 6 days
Maturities and present value of lease liabilities [Abstract]
Remainder of 2024	$ 268
2025	1,083
2026	942
Thereafter	0
Total undiscounted lease payments	2,293
Less: present value adjustment	164
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 2,129
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

Credit Arrangements, Bank Debt (Details) $ in Thousands		3 Months Ended		9 Months Ended
Credit Arrangements, Bank Debt (Details) $ in Thousands	Mar. 22, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	May 12, 2021 USD ($)
Bank Debt [Abstract]
Net worth		$ 105,759	$ 98,746	$ 105,759	$ 98,746	$ 107,275
Revolving Credit Facility [Member]
Bank Debt [Abstract]
Unsecured credit facility							$ 10,000
Maturity date				Apr. 12, 2024
Outstanding borrowings		4,024		$ 4,024		$ 3,019
Interest expense		77	$ 56	213	$ 142
Available unused amount fee paid		3		6
Available unused amount		$ 6,000		$ 6,000
Debt instrument, effective interest rate percentage		7.35%		7.35%		9.69%
Revolving Credit Facility [Member] \| Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio		0.35		0.35
Revolving Credit Facility [Member] \| Amendment [Member]
Bank Debt [Abstract]
Maturity date				Mar. 22, 2027
Basis spread on variable rate	2.00%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]				us-gaap:SecuredOvernightFinancingRateSofrMember
Unused commitment fee	0.20%
Revolving Credit Facility [Member] \| Amendment [Member] \| Minimum [Member]
Bank Debt [Abstract]
Net worth	$ 64,200

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Summary of realized investment gains [Abstract]
Gains	$ 4	$ 0	$ 19	$ 70
Losses	0	0	(2)	0
Realized investment gains, net	4	0	17	70
Fixed Maturities [Member]
Summary of realized investment gains [Abstract]
Gains	4	0	19	70
Losses	0	0	(2)	0
Realized investment gains, net	4	0	17	70
Equity Securities [Member]
Summary of realized investment gains [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment gains, net	0	0	0	0
Other Invested Assets [Member]
Summary of realized investment gains [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment gains, net	$ 0	$ 0	$ 0	$ 0

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 221,696	$ 218,219
Allowance for credit losses	0	0
Amortized cost total	237,207	238,626
Estimated fair value	7,800	9,413
Cost	4,940	4,936
Bonds Pledged as Collateral [Member] \| FHLB Advances [Member]
Investments aggregated by type and industry [Abstract]
Amortized cost pledged as collateral to FHLB	9,282	9,584
Bonds [Member]
Investments aggregated by type and industry [Abstract]
Assets held with insurance regulatory authorities	14,720	14,647
Cash and Cash Equivalents [Member]
Investments aggregated by type and industry [Abstract]
Assets held with insurance regulatory authorities	226	226
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	221,696	218,219
Gross unrealized gains	1,915	1,284
Gross unrealized losses	17,426	21,691
Allowance for credit losses	0	0
Amortized cost total	237,207	238,626
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	47,712	50,059
Gross unrealized gains	114	63
Gross unrealized losses	3,802	4,944
Allowance for credit losses	0	0
Amortized cost total	51,400	54,940
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	7,998	8,106
Gross unrealized gains	31	15
Gross unrealized losses	1,166	1,424
Allowance for credit losses	0	0
Amortized cost total	9,133	9,515
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	165,766	159,849
Gross unrealized gains	1,743	1,193
Gross unrealized losses	12,458	15,323
Allowance for credit losses	0	0
Amortized cost total	176,481	173,979
Corporate Securities [Member] \| Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	23,997	21,309
Gross unrealized gains	343	143
Gross unrealized losses	2,310	2,582
Allowance for credit losses	0	0
Amortized cost total	25,964	23,748
Corporate Securities [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	60,596	59,584
Gross unrealized gains	811	560
Gross unrealized losses	3,323	4,931
Allowance for credit losses	0	0
Amortized cost total	63,108	63,955
Corporate Securities [Member] \| Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	35,873	34,386
Gross unrealized gains	434	403
Gross unrealized losses	2,450	2,940
Allowance for credit losses	0	0
Amortized cost total	37,889	36,923
Corporate Securities [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	45,300	44,570
Gross unrealized gains	155	87
Gross unrealized losses	4,375	4,870
Allowance for credit losses	0	0
Amortized cost total	49,520	49,353
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	220	205
Gross unrealized gains	27	13
Gross unrealized losses	0	0
Allowance for credit losses	0	0
Amortized cost total	193	192
Redeemable Preferred Stocks [Member] \| Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	220	205
Gross unrealized gains	27	13
Gross unrealized losses	0	0
Allowance for credit losses	0	0
Amortized cost total	193	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	7,800	9,413
Gross unrealized gains	2,860	4,477
Gross unrealized losses	0	0
Cost	4,940	4,936
Common and Non-redeemable Preferred Stocks [Member] \| Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	1,105	924
Gross unrealized gains	798	621
Gross unrealized losses	0	0
Cost	307	303
Common and Non-redeemable Preferred Stocks [Member] \| Communications [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	6,695	8,489
Gross unrealized gains	2,062	3,856
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 23,035	$ 28,301
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $237,207 and $238,626; no allowance for credit losses)	221,696	218,219
Equity securities, at fair value (cost: $4,940 and $4,936)	7,800	9,413
Other invested assets (cost: $9,300 and $6,982)	8,205	6,381
Policy loans	1,738	1,778
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	240,715	237,067
Receivables:
Reinsurance (net of allowance for expected credit losses of $53 and $61)	21,600	21,103
Insurance premiums and other (net of allowance for expected credit losses of $215 and $217)	30,492	23,690
Deferred income taxes, net	16,079	15,682
Deferred acquisition costs	44,284	43,850
Other assets	8,240	9,028
Intangibles	2,544	2,544
Total assets	386,989	381,265
Insurance reserves and policyholder funds:
Future policy benefits	97,077	92,495
Unearned premiums	28,972	31,317
Losses and claims	91,864	87,478
Other policy liabilities	969	1,132
Total insurance reserves and policyholder funds	218,882	212,422
Accounts payable and accrued expenses	24,586	24,811
Revolving credit facility	4,024	3,019
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	281,230	273,990
Commitments and contingencies (Notes 3 and 12)
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: 20,399,758 and 20,402,288	22,401	22,401
Additional paid-in capital	57,425	57,425
Retained earnings	45,543	50,929
Accumulated other comprehensive loss	(12,253)	(16,121)
Unearned stock grant compensation	(4)	(13)
Treasury stock, at cost: 2,001,136 and 1,998,606 shares	(7,408)	(7,401)
Total shareholders' equity	105,759	107,275
Total liabilities and shareholders' equity	$ 386,989	$ 381,265

Internal-Use Software (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Internal-Use Software (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Internal Use Software [Abstract]
Period of initial terms of arrangement			5 years
Period of additional renewal term			5 years
Incurred and capitalized implementation costs			$ 78	$ 1,218
Capitalized implementation costs	$ 4,645		4,645		$ 4,567
Amortization expense	$ 0	$ 0	$ 0	$ 0
Software Capitalized Implementation Costs [Member]
Internal Use Software [Abstract]
Amortization period	10 years		10 years

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 8,205	$ 6,381
Investment in unconsolidated trusts	1,238	1,238
Additional investment	2,318
VIE, Not Primary Beneficiary [Member] \| Other Invested Assets [Member]
Variable Interest Entities [Abstract]
Carrying amount of interest	8,205	6,381
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	9,443	7,619
Outstanding commitments	$ 2,200	$ 4,518

- Definition

This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment (OTTI) losses recognized.

+ References + Details

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

9 Months Ended

Sep. 30, 2024

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, 2024

$ 33,738

Net balance December 31, 2023

$ 33,738

Junior Subordinated Debentures [Member]

Financial structure of statutory business trusts [Abstract]

Basis spread on variable rate

0.26161%

Variable rate term

3 months

Debt instrument, effective interest rate percentage

9.39%

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

Junior Subordinated Debentures [Member] | LIBOR [Member]

Financial structure of statutory business trusts [Abstract]

Variable rate term

3 months

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

Financial structure of statutory business trusts [Abstract]

Principal amount owed March 31, 2024

$ 18,042

^[1],[2]

Less: Treasury debt

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

Net balance March 31, 2024

18,042

^[1],[2]

Net balance December 31, 2023

$ 18,042

^[1],[2]

Coupon rate

3-Month SOFR + 0.26161% spread adj + 4.00%

Interest payable

Quarterly

Maturity date

Dec. 04, 2032

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

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

Financial structure of statutory business trusts [Abstract]

Coupon rate

3-Month SOFR + 0.26161% spread adj + 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]

Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]

us-gaap:SecuredOvernightFinancingRateSofrMember

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, 2024

$ 23,196

^[1],[2]

Less: Treasury debt

(7,500)

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

Net balance March 31, 2024

15,696

^[1],[2]

Net balance December 31, 2023

$ 15,696

^[1],[2]

Coupon rate

3-Month SOFR + 0.26161% spread adj + 4.10%

Interest payable

Quarterly

Maturity date

May 15, 2033

^[1],[2]

Redeemable by issuer

Yes

^[1],[2]

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

Financial structure of statutory business trusts [Abstract]

Coupon rate

3-Month SOFR + 0.26161% spread adj + 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]

Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]

us-gaap:SecuredOvernightFinancingRateSofrMember

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.

Internal-Use Software

9 Months Ended

Sep. 30, 2024

Internal-Use Software [Abstract]

Internal-Use Software

Note 6.

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 remainder of the original 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 $78 and $1,218 during the nine months ended September 30, 2024 and 2023, respectively. As a result, the Company has capitalized $4,645 and $4,567 in implementation costs in other assets within its condensed consolidated balance sheet as of September 30, 2024 and December 31, 2023, respectively. The Company expects the software will be substantially ready for its intended use during 2025. Accordingly, the Company has not recorded any amortization expense related to software implementation costs for the three months and nine months ended September 30, 2024 and 2023.

Insurance Reserves for Losses and Claims (Tables)

9 Months Ended

Sep. 30, 2024

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 nine months ended September 30, 2024 and 2023 is as follows:

	Nine Months Ended September 30,
	2024			2023
Beginning insurance reserves for losses and claims, gross	$	87,478		$	87,484
Less: Reinsurance recoverable on unpaid losses		(14,678	)		(17,647	)
Beginning insurance reserves for losses and claims, net		72,800			69,837

Incurred related to:
Current accident year		85,132			82,276
Prior accident year development		3,404	⁽¹⁾		2,706	⁽²⁾
Total incurred		88,536			84,982

Paid related to:
Current accident year		40,786			43,595
Prior accident years		45,465			41,634
Total paid		86,251			85,229
Ending insurance reserves for losses and claims, net		75,085			69,590
Plus: Reinsurance recoverable on unpaid losses		16,779			16,089
Ending insurance reserves for losses and claims, gross	$	91,864		$	85,679

(1)	Prior years’ development was primarily the result of unfavorable development in the property and casualty operations predominately in the automobile liability line of business due to inflationary factors.

(2)

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

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

	Nine Months Ended September 30,
	2024		2023
Total incurred losses	$	88,536	$	84,982
Cash surrender value and matured endowments		898		1,063
Benefit reserve changes		5,058		598
Total insurance benefits and losses incurred	$	94,492	$	86,643

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 221,696	$ 218,219
Equity securities	7,800	9,413
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	221,696	218,219
Equity securities	7,800	9,413
Cash equivalents	13,329	14,834
Assets at fair value	242,825	242,466
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	7,611	9,228
Cash equivalents	13,329	14,834
Assets at fair value	20,940	24,062
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	221,696	218,219
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	221,696	218,219
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	189	185
Cash equivalents	0	0
Assets at fair value	$ 189	$ 185

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481830/320-10-45-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.9-03(6))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

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-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479130/326-30-45-1

+ Details

- Definition

Amount of investment in equity security measured at fair value with change in fair value recognized in net income (FV-NI).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

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-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

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

Sep. 30, 2024

Dec. 31, 2023

Assets [Abstract]

Fixed maturities

$ 221,696

$ 218,219

Equity securities

7,800

9,413

Carrying Amount [Member]

Assets [Abstract]

Equity securities

^[1]

7,800

9,413

Carrying Amount [Member] | Level 1 [Member]

Assets [Abstract]

Cash and cash equivalents

23,035

28,301

Carrying Amount [Member] | Level 2 [Member]

Assets [Abstract]

Fixed maturities

221,696

218,219

Liabilities [Abstract]

Junior subordinated debentures, net

33,738

Revolving credit facility

4,024

3,019

Carrying Amount [Member] | Level 3 [Member]

Assets [Abstract]

Policy loans

1,738

1,778

Estimated Fair Value [Member]

Assets [Abstract]

Equity securities

^[1]

7,800

9,413

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

Assets [Abstract]

Cash and cash equivalents

23,035

28,301

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

Assets [Abstract]

Fixed maturities

221,696

218,219

Liabilities [Abstract]

Junior subordinated debentures, net

36,211

33,670

Revolving credit facility

4,024

3,019

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

Assets [Abstract]

Policy loans

$ 1,738

$ 1,778

[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.

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Basis of Presentation and Significant Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 1.

Basis of Presentation and Significant Accounting Policies

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, 2023 (the “2023 Annual Report”). For more information regarding Significant Accounting Policies, see the “Summary of Significant Accounting Policies” section of Note 1 of Notes to Consolidated Financial Statements in the 2023 Annual Report. The Company’s financial condition and operating results as of and for the three month and nine month periods ended September 30, 2024 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, 2024 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. To the extent that the Company changes its accounting for, or presentation of, items in the financial statements, the presentation of such amounts in prior periods is changed to conform to the current period presentation, if appropriate, and disclosed, if material.

Allowance for Expected Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

Allowance for Expected Credit Losses [Abstract]

Reinsurance Recoverables

	At and for the three months ended September 30, 2024					At and for the nine months ended September 30, 2024
	Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses			Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	22,496	$	54		$	21,103	$	61
Current period change for estimated uncollectible reinsurance				(1	)				(8	)
Write-offs of uncollectible reinsurance recoverables				—					—
Balance, end of period	$	21,600	$	53		$	21,600	$	53

	At and for the three months ended September 30, 2023					At and for the nine months ended September 30, 2023
	Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses			Reinsurance Recoverables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	22,261	$	66		$	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				(2	)				(11	)
Write-offs of uncollectible reinsurance recoverables				—					—
Balance, end of period	$	21,839	$	64		$	21,839	$	64

Insurance Premium and Other Receivables

	At and for the three months ended September 30, 2024					At and for the nine months ended September 30, 2024
	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses			Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	34,220	$	219		$	23,690	$	217
Current period change for expected credit losses				(4	)				(2	)
Write-offs of uncollectible insurance premiums and other receivables				—					—
Balance, end of period	$	30,492	$	215		$	30,492	$	215

	At and for the three months ended September 30, 2023					At and for the nine months ended September 30, 2023
	Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses			Insurance Premiums and Other, Net of Expected Credit Losses		Allowance for Expected Credit Losses
Balance, beginning of period	$	30,825	$	213		$	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				(22	)				14
Write-offs of uncollectible insurance premiums and other receivables				—					—
Balance, end of period	$	24,687	$	191		$	24,687	$	191

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 12.

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 arising 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 the opinion of management, any such known regulatory matters are not expected to have a material effect on the financial condition or results of operations of the Company.

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Federal income tax provision at statutory rate of 21%	$	(515	)	$	449		$	(1,220	)	$	533
Dividends-received deduction		(10	)		(10	)		(22	)		(27	)
Meals and entertainment		18			9			53			32
Vested stock and club dues		—			11			1			14
Parking disallowance		7			5			15			13
Adjustment for prior years’ estimates to actual		44			(85	)		44			(85	)
Income tax expense (benefit)	$	(456	)	$	379		$	(1,129	)	$	480

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Current – Federal	$	296		$	790		$	296		$	2,191
Deferred – Federal		(752	)		(411	)		(1,425	)		(1,711	)
Total	$	(456	)	$	379		$	(1,129	)	$	480

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income (loss)	$ (1,998)	$ 1,759	$ (4,680)	$ 2,057
Available-for-sale fixed maturity securities:
Gross unrealized holding gains (losses) arising in the period	9,095	(7,604)	4,913	(6,038)
Related income tax effect	(1,910)	1,596	(1,032)	1,267
Subtotal	7,185	(6,008)	3,881	(4,771)
Less: reclassification adjustment for net realized gains included in net income (loss)	(4)	0	(17)	(70)
Related income tax effect	1	0	4	15
Subtotal	(3)	0	(13)	(55)
Total other comprehensive income (loss), net of tax	7,182	(6,008)	3,868	(4,826)
Total comprehensive income (loss)	$ 5,184	$ (4,249)	$ (812)	$ (2,769)

Investments

9 Months Ended

Sep. 30, 2024

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 (“ACL”) and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2024 and December 31, 2023.

Fixed maturities were comprised of the following:

	September 30, 2024
	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	$	47,712	$	114	$	3,802	$	—	$	51,400
Obligations of states and political subdivisions		7,998		31		1,166		—		9,133
Corporate securities:
Utilities and telecom		23,997		343		2,310		—		25,964
Financial services		60,596		811		3,323		—		63,108
Other business – diversified		35,873		434		2,450		—		37,889
Other consumer – diversified		45,300		155		4,375		—		49,520
Total corporate securities		165,766		1,743		12,458		—		176,481
Redeemable preferred stocks:
Other consumer – diversified		220		27		—		—		193
Total redeemable preferred stocks		220		27		—		—		193
Total fixed maturities	$	221,696	$	1,915	$	17,426	$	—	$	237,207

	December 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	$	50,059	$	63	$	4,944	$	—	$	54,940
Obligations of states and political subdivisions		8,106		15		1,424		—		9,515
Corporate securities:
Utilities and telecom		21,309		143		2,582		—		23,748
Financial services		59,584		560		4,931		—		63,955
Other business – diversified		34,386		403		2,940		—		36,923
Other consumer – diversified		44,570		87		4,870		—		49,353
Total corporate securities		159,849		1,193		15,323		—		173,979
Redeemable preferred stocks:
Other consumer – diversified		205		13		—		—		192
Total redeemable preferred stocks		205		13		—		—		192
Total fixed maturities	$	218,219	$	1,284	$	21,691	$	—	$	238,626

Equity securities were comprised of the following:

	September 30, 2024
	Estimated Fair Value			Gross Unrealized Gains			Gross Unrealized Losses			Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	1,105		$	798		$	—		$	307
Communications			6,695			2,062			—			4,633
Total equity securities		$	7,800		$	2,860		$	—		$	4,940

	December 31, 2023
	Estimated Fair Value			Gross Unrealized Gains			Gross Unrealized Losses			Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	924		$	621		$	—		$	303
Communications			8,489			3,856			—			4,633
Total equity securities		$	9,413		$	4,477		$	—		$	4,936

	September 30, 2024				December 31, 2023
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	8,345	$	8,377	$	1,715	$	1,750
Due after one year through five years		60,863		61,888		60,423		62,423
Due after five years through ten years		31,179		32,624		33,596		36,752
Due after ten years		89,027		98,917		86,857		97,984
Asset backed securities		32,282		35,401		35,628		39,717
Totals	$	221,696	$	237,207	$	218,219	$	238,626

	September 30, 2024
	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		$	250		$	—		$	34,170		$	3,802		$	34,420		$	3,802
Obligations of states and political subdivisions			—			—			6,190			1,166			6,190			1,166
Corporate securities			870			128			132,367			12,330			133,237			12,458
Total temporarily impaired securities		$	1,120		$	128		$	172,727		$	17,298		$	173,847		$	17,426

	December 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		$	5,194		$	37		$	39,476		$	4,907		$	44,670		$	4,944
Obligations of states and political subdivisions			1,145			3			5,936			1,421			7,081			1,424
Corporate securities			539			13			138,283			15,310			138,822			15,323
Total temporarily impaired securities		$	6,878		$	53		$	183,695		$	21,638		$	190,573		$	21,691

Analysis of Securities in Unrealized Loss Positions

As of September 30, 2024 and December 31, 2023, there were 183 and 222 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 increases 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 reasonably available 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, 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. In addition, 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 September 30, 2024 or December 31, 2023.

The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2024 and 2023.

	Three Months Ended September 30, 2024
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	4		$	—		$	—		$	4
Losses			—			—			—			—
Realized investment gains, net		$	4		$	—		$	—		$	4

Three Months Ended

September 30, 2023

Fixed

Maturities

Equity

Securities

Other

Invested Assets

Total

Gains

—

Losses

—

Realized investment gains, net

—

	Nine Months Ended September 30, 2024
	Fixed Maturities				Equity Securities			Other Invested Assets			Total
Gains		$	19			$	—		$	—		$	19
Losses			(2	)			—			—			(2	)
Realized investment gains, net		$	17			$	—		$	—		$	17

	Nine Months Ended September 30, 2023
	Fixed Maturities			Equity Securities			Other Invested Assets			Total
Gains		$	70		$	—		$	—		$	70
Losses			—			—			—			—
Realized investment gains, net		$	70		$	—		$	—		$	70

The following table presents the change in unrealized losses related to equity securities still held for the three month and nine month periods ended September 30, 2024 and 2023.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net realized and unrealized losses recognized during the period on equity securities	$	(1,746	)	$	(1,486	)	$	(1,617	)	$	(3,367	)
Less: Net realized gains recognized during the period on equity securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on equity securities, net	$	(1,746	)	$	(1,486	)	$	(1,617	)	$	(3,367	)

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 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 $8,205 and $6,381 as of September 30, 2024 and December 31, 2023, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2024 and December 31, 2023.

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’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 $9,443 and $7,619, as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, the Company had outstanding commitments totaling $2,200, and $4,518, 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. The reduction in the Company’s outstanding commitments was a result of an additional investment of $2,318 in the partnership.

Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes [Abstract]

Income Taxes

Note 10.

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 September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Federal income tax provision at statutory rate of 21%	$	(515	)	$	449		$	(1,220	)	$	533
Dividends-received deduction		(10	)		(10	)		(22	)		(27	)
Meals and entertainment		18			9			53			32
Vested stock and club dues		—			11			1			14
Parking disallowance		7			5			15			13
Adjustment for prior years’ estimates to actual		44			(85	)		44			(85	)
Income tax expense (benefit)	$	(456	)	$	379		$	(1,129	)	$	480

The components of income tax expense (benefit) were:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Current – Federal	$	296		$	790		$	296		$	2,191
Deferred – Federal		(752	)		(411	)		(1,425	)		(1,711	)
Total	$	(456	)	$	379		$	(1,129	)	$	480

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2024

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 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 and 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 September 30, 2024 and December 31, 2023, the value of the equity security valued using Level 3 criteria was $189 and $185, respectively.

As of September 30, 2024, 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	$	—	$	221,696	$	—	$	221,696
Equity securities		7,611		—		189		7,800
Cash equivalents		13,329		—		—		13,329
Total	$	20,940	$	221,696	$	189	$	242,825

As of December 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	$	—	$	218,219	$	—	$	218,219
Equity securities		9,228		—		185		9,413
Cash equivalents		14,834		—		—		14,834
Total	$	24,062	$	218,219	$	185	$	242,466

		September 30, 2024				December 31, 2023
	Level in Fair Value Hierarchy ⁽¹⁾	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1	$	23,035	$	23,035	$	28,301	$	28,301
Fixed maturities	Level 2		221,696		221,696		218,219		218,219
Equity securities	⁽¹⁾		7,800		7,800		9,413		9,413
Policy loans	Level 3		1,738		1,738		1,778		1,778

Liabilities:
Junior subordinated debentures, net	Level 2		33,738		36,211		33,738		33,670
Revolving credit facility	Level 2		4,024		4,024		3,019		3,019

(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

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+ Details