Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2017

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

BALANCE SHEETS
  
ASSETS

	December 31,
	2017		2016
	(In thousands)
Cash and cash equivalents	$	9,732	$	4,308
Investments		16,097		16,160
Investment in subsidiaries		116,351		112,472
Investments in unconsolidated trusts		1,238		1,238
Income taxes receivable from subsidiaries		2,879		2,961
Other assets		3,762		4,554
Total assets	$	150,059	$	141,693
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deferred tax liability, net	$	1,253	$	500
Other payables		2,085		1,949
Junior subordinated debentures		33,738		33,738
Total liabilities		37,076		36,187
Shareholders’ equity		112,983		105,506
Total liabilities and shareholders’ equity	$	150,059	$	141,693

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2017			2016
	(In thousands)
REVENUE
Fee income from subsidiaries	$	7,702		$	7,395
Distributed earnings from subsidiaries		4,850			5,508
Other		4,130			408
Total revenue		16,682			13,311
GENERAL AND ADMINISTRATIVE EXPENSES		13,015			12,858
INTEREST EXPENSE		1,723			1,562
		1,944			(1,109	)
INCOME TAX BENEFIT(1)		(2,553	)		(1,837	)
		4,497			728
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET		31			1,908
NET INCOME	$	4,528		$	2,636

⁽¹⁾ Under the terms of a tax-sharing agreement, income tax provisions for the subsidiary companies are computed on a separate company basis. Accordingly, the Company’s income tax benefit results from the utilization of the Parent’s separate return loss to reduce the consolidated taxable income of the Company.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2017			2016
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,528		$	2,636
Adjustments to reconcile net income to net cash provided by operating activities:
Realized investment (gains) losses, net		(3,891	)		1
Depreciation and amortization		712			713
Compensation expense related to share awards		495			586
Equity in undistributed earnings of consolidated subsidiaries		(31	)		(1,908	)
Decrease (increase) in intercompany taxes		82			(815	)
Deferred income tax benefit		(1,358	)		(2	)
Increase (decrease) in other liabilities		136			(224	)
Other, net		295			(221	)
Net cash provided by operating activities		968			766
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold, called or matured		6,014			1,979
Investments purchased		—			(1,000	)
Capital contribution to subsidiaries		—			(75	)
Additions to property and equipment		(91	)		(371	)
Net cash provided by investing activities		5,923			533
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on Series D preferred stock		(399	)		(399	)
Payment of dividends on common stock		(408	)		(408	)
Proceeds from shares issued under stock plans		32			51
Purchases of shares for treasury		(692	)		(698	)
Net cash used in financing activities		(1,467	)		(1,454	)
Net increase (decrease) in cash		5,424			(155	)
Cash and cash equivalents at beginning of year		4,308			4,463
Cash and cash equivalents at end of year	$	9,732		$	4,308
Supplemental disclosure:
Cash paid for interest	$	1,705		$	1,544
Cash paid for income taxes	$	1,400		$	675
Intercompany tax settlement from subsidiaries	$	2,676		$	2,845