ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
|
|
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
|
Emerging growth company
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Page
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1
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PART I
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Item 1.
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1
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1
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||
3
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3
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4
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4
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6
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6
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7
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7
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8
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8
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8
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9
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10 | ||
10
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10
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10
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Item 1A.
|
11
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Item 1B.
|
11
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Item 2.
|
11
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Item 3.
|
11
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Item 4.
|
11
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PART II
|
||
Item 5.
|
12
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Item 6.
|
12
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Item 7.
|
13
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Item 7A.
|
20
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Item 8.
|
21
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Item 9.
|
51
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Item 9A.
|
51
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Item 9B.
|
51
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Item 9C.
|
51
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PART III
|
||
Item 10.
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Directors, Executive Officers and Corporate Governance
|
52
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Item 11.
|
Executive Compensation
|
52
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Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
52
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Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
52
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Item 14.
|
Principal Accountant Fees and Services
|
52
|
PART IV
|
||
Item 15.
|
53
|
|
Item 16.
|
54
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55
|
|
56
|
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59
|
|
61
|
|
62
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Item 1. |
Business
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Automobile liability
|
$
|
30,453
|
$
|
30,312
|
||||
Automobile physical damage
|
22,917
|
18,730
|
||||||
General liability
|
5,637
|
3,891
|
||||||
Surety
|
5,620
|
5,857
|
||||||
Other lines
|
3,355
|
3,582
|
||||||
Total
|
$
|
67,982
|
$
|
62,372
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Life insurance
|
$
|
10,557
|
$
|
9,270
|
||||
Medicare supplement
|
95,314
|
102,680
|
||||||
Other accident and health
|
10,363
|
9,217
|
||||||
Total health insurance
|
105,677
|
111,897
|
||||||
Total
|
$
|
116,234
|
$
|
121,167
|
December 31,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Fixed maturities:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
50,298
|
17.7
|
%
|
$
|
30,762
|
11.0
|
%
|
||||||||
States, municipalities and political subdivisions
|
11,644
|
4.2
|
11,802
|
4.2
|
||||||||||||
Public utilities
|
13,952
|
4.9
|
13,651
|
4.9
|
||||||||||||
All other corporate bonds
|
184,842
|
65.2
|
197,641
|
70.8
|
||||||||||||
Redeemable preferred stock
|
250
|
0.1
|
250
|
0.1
|
||||||||||||
Total fixed maturities(1)
|
260,986
|
92.1
|
254,106
|
91.0
|
||||||||||||
Equity securities(2)
|
19,124
|
6.7
|
18,716
|
6.7
|
||||||||||||
Other invested assets(3)
|
198
|
0.1
|
3,238
|
1.2
|
||||||||||||
Policy loans(4)
|
1,858
|
0.7
|
1,975
|
0.7
|
||||||||||||
Real estate
|
38
|
0.0
|
38
|
0.0
|
||||||||||||
Investments in unconsolidated trusts
|
1,238
|
0.4
|
1,238
|
0.4
|
||||||||||||
Total investments
|
$
|
283,442
|
100.0
|
%
|
$
|
279,311
|
100.0
|
%
|
(1) |
Fixed maturities are carried on the balance sheet at estimated fair value. Certain fixed maturities do not have publicly quoted prices, and are carried at estimated fair value as determined by management. Total amortized cost of fixed
maturities was $238.6 million as of December 31, 2021 and $222.5 million as of December 31, 2020.
|
(2) |
Equity securities are carried on the balance sheet at estimated fair value. Total cost of equity securities was $4.9 million as of December 31, 2021 and $6.4 million as of December 31, 2020.
|
(3) |
Other invested assets are accounted for using the equity method. Total cost of other invested assets was $0.7 million as of December 31, 2021 and $3.8 million as of December 31, 2020.
|
(4) |
Policy loans are valued at unpaid principal balances.
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(Dollars in thousands)
|
||||||||
Average investments(1)
|
$
|
260,240
|
$
|
252,141
|
||||
Net investment income
|
8,528
|
7,744
|
||||||
Average yield on investments
|
3.3
|
%
|
3.1
|
%
|
||||
Realized investment gains, net
|
4,903
|
7,420
|
(1) |
Calculated as the average of cash and investment balances (at amortized cost) at the beginning of the year and at the end of each of the succeeding four quarters.
|
Name
|
Age
|
Positions with the Company
|
Director or Officer Since
|
|||
Hilton H. Howell, Jr.
|
59
|
Chairman of the Board, President & CEO
|
1992
|
|||
J. Ross Franklin
|
44
|
Vice President, CFO and Corporate Secretary
|
2017
|
Item 1A. |
Risk Factors
|
Item 1B. |
Unresolved Staff Comments
|
Item 2. |
Properties
|
Item 3. |
Legal Proceedings
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|
Period
|
Total
Number
of Shares
Purchased
|
Average
Price Paid
per Share
|
Total
Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
|
Maximum
Number of Shares
that May Yet be
Purchased Under the
Plans or Programs
|
||||||||||||
October 1 – October 31, 2021
|
—
|
$
|
—
|
—
|
325,129
|
|||||||||||
November 1 – November 30, 2021
|
—
|
—
|
—
|
325,129
|
||||||||||||
December 1 – December 31, 2021
|
—
|
—
|
—
|
325,129
|
||||||||||||
Total
|
—
|
$
|
—
|
—
|
Item 6. |
Reserved
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Revenue
|
||||||||
Property and Casualty:
|
||||||||
American Southern
|
$
|
73,868
|
$
|
69,179
|
||||
Life and Health:
|
||||||||
Bankers Fidelity
|
125,702
|
127,144
|
||||||
Corporate and Other
|
(16
|
)
|
(975
|
)
|
||||
Total revenue
|
$
|
199,554
|
$
|
195,348
|
||||
Income before income taxes
|
||||||||
Property and Casualty:
|
||||||||
American Southern
|
$
|
9,292
|
$
|
10,436
|
||||
Life and Health:
|
||||||||
Bankers Fidelity
|
3,726
|
12,430
|
||||||
Corporate and Other
|
(7,716
|
)
|
(7,363
|
)
|
||||
Income before income taxes
|
$
|
5,302
|
$
|
15,503
|
||||
Net income
|
$
|
4,281
|
$
|
12,169
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Reconciliation of Non-GAAP Financial Measure
|
||||||||
Net income
|
$
|
4,281
|
$
|
12,169
|
||||
Income tax expense
|
1,021
|
3,334
|
||||||
Realized investment gains, net
|
(4,903
|
)
|
(7,420
|
)
|
||||
Unrealized (gains) losses on equity securities, net
|
(1,894
|
)
|
3,431
|
|||||
Non-GAAP operating income (loss)
|
$
|
(1,495
|
)
|
$
|
11,514
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(Dollars in thousands)
|
||||||||
Gross written premiums
|
$
|
75,914
|
$
|
70,256
|
||||
Ceded premiums
|
(6,511
|
)
|
(5,890
|
)
|
||||
Net written premiums
|
$
|
69,403
|
$
|
64,366
|
||||
Net earned premiums
|
$
|
67,982
|
$
|
62,372
|
||||
Insurance benefits and losses incurred
|
44,433
|
39,339
|
||||||
Commissions and underwriting expenses
|
20,143
|
19,404
|
||||||
Underwriting income
|
$
|
3,406
|
$
|
3,629
|
||||
Loss ratio
|
65.4
|
%
|
63.1
|
%
|
||||
Expense ratio
|
29.6
|
31.1
|
||||||
Combined ratio
|
95.0
|
%
|
94.2
|
%
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Automobile liability
|
$
|
30,453
|
$
|
30,312
|
||||
Automobile physical damage
|
22,917
|
18,730
|
||||||
General liability
|
5,637
|
3,891
|
||||||
Surety
|
5,620
|
5,857
|
||||||
Other lines
|
3,355
|
3,582
|
||||||
Total
|
$
|
67,982
|
$
|
62,372
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(Dollars in thousands)
|
||||||||
Medicare supplement
|
$
|
162,400
|
$
|
174,525
|
||||
Other health products
|
10,364
|
9,218
|
||||||
Life insurance
|
10,624
|
9,348
|
||||||
Gross earned premiums
|
183,388
|
193,091
|
||||||
Ceded premiums
|
(67,154
|
)
|
(71,924
|
)
|
||||
Net earned premiums
|
116,234
|
121,167
|
||||||
Insurance benefits and losses incurred
|
87,261
|
80,537
|
||||||
Commissions and underwriting expenses
|
34,715
|
34,177
|
||||||
Total expenses
|
121,976
|
114,714
|
||||||
Underwriting income (loss)
|
$
|
(5,742
|
)
|
$
|
6,453
|
|||
Loss ratio
|
75.1
|
%
|
66.5
|
%
|
||||
Expense ratio
|
29.9
|
28.2
|
||||||
Combined ratio
|
105.0
|
%
|
94.7
|
%
|
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8. |
Financial Statements and Supplementary Data
|
Page
|
|
ATLANTIC AMERICAN CORPORATION
|
|
Report of Independent Registered Public Accounting Firm (
|
22
|
24
|
|
25
|
|
26
|
|
27
|
|
28
|
|
29
|
|
•
|
Involving our actuarial specialists to assist in our procedures in:
|
|
o
|
Evaluating the appropriateness of management’s actuarial reserving methodologies and assumptions;
|
|
o
|
Evaluating management’s hindsight analyses;
|
|
o
|
Comparing management’s carried reserve to the range calculated by management’s specialist for property casualty claim reserves;
|
|
•
|
Testing the completeness and accuracy of data provided by management that served as the basis for the actuarial analyses on a sample basis; and
|
|
•
|
Evaluating movement of the Company’s recorded property casualty claim reserves within the Company’s estimated reserve range year over year.
|
|
•
|
Involving our actuarial specialists to assist in our procedures in:
|
|
o
|
Evaluating whether the methodology applied by management is consistent in the aggregate with the methodology compliant with GAAP;
|
|
o
|
Assessing the significant assumptions used by management for new insurance contracts issued during the current year by comparing the significant assumptions
noted above to historical experience, observable market data or management’s estimates of prospective changes to these assumptions;
|
|
o
|
Performing an independent recalculation of policy reserves for a sample of contracts for comparison to management’s estimate; and
|
|
o
|
Evaluating management’s loss recognition testing of aggregate reserve sufficiency.
|
|
•
|
Testing the completeness and accuracy of data used by management in developing assumptions on a sample basis.
|
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands,
except share and per share data)
|
||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments:
|
||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: $
|
|
|
||||||
Equity securities, at fair value (cost: $
|
|
|
||||||
Other invested assets (cost: $
|
|
|
||||||
Policy loans
|
|
|
||||||
Real estate
|
|
|
||||||
Investment in unconsolidated trusts
|
|
|
||||||
Total investments
|
|
|
||||||
Receivables:
|
||||||||
Reinsurance
|
|
|
||||||
Insurance premiums and other, net of allowance for doubtful accounts of $
|
|
|
||||||
Deferred income taxes, net
|
|
|
||||||
Deferred acquisition costs
|
|
|
||||||
Other assets
|
|
|
||||||
Intangibles
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Insurance reserves and policyholder funds
|
||||||||
Future policy benefits
|
$
|
|
$
|
|
||||
Unearned premiums
|
|
|
||||||
Losses and claims
|
|
|
||||||
Other policy liabilities
|
|
|
||||||
Total insurance reserves and policyholder funds
|
|
|
||||||
Accounts payable and accrued expenses
|
|
|
||||||
Deferred income taxes, net
|
|
|
||||||
Junior subordinated debenture obligations, net
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies (Note 16)
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, $
|
|
|
||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
|
|
||||||
Unearned stock grant compensation
|
(
|
)
|
(
|
)
|
||||
Treasury stock, at cost,
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands,
except per share data)
|
||||||||
Revenue:
|
||||||||
Insurance premiums, net
|
$
|
|
$
|
|
||||
Net investment income
|
|
|
||||||
Realized investment gains, net
|
|
|
||||||
Unrealized gains (losses) on equity securities, net
|
|
(
|
)
|
|||||
Other income
|
|
|
||||||
Total revenue
|
|
|
||||||
Benefits and expenses:
|
||||||||
Insurance benefits and losses incurred
|
|
|
||||||
Commissions and underwriting expenses
|
|
|
||||||
Interest expense
|
|
|
||||||
Other expense
|
|
|
||||||
Total benefits and expenses
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Income tax expense
|
|
|
||||||
Net Income
|
|
|
||||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net Income applicable to common shareholders
|
$
|
|
$
|
|
||||
Earnings per common share (basic)
|
|
|
||||||
Earnings per common share (diluted)
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Other comprehensive income:
|
||||||||
Available-for-sale fixed maturity securities:
|
||||||||
Gross unrealized holding gain (loss) arising in the period
|
(
|
)
|
|
|||||
Related income tax effect
|
|
(
|
)
|
|||||
Subtotal
|
(
|
)
|
|
|||||
Less: reclassification adjustment for net realized gains included in net income
|
(
|
)
|
(
|
)
|
||||
Related income tax effect
|
|
|
||||||
Subtotal
|
(
|
)
|
(
|
)
|
||||
Total other comprehensive income (loss), net of tax
|
(
|
)
|
|
|||||
Total comprehensive income (loss)
|
$
|
(
|
)
|
$
|
|
Year Ended December 31,
|
||||||||
(In thousands, except share and per share data)
|
2021
|
2020
|
||||||
Preferred stock:
|
||||||||
Balance, beginning of year
|
$
|
|
$
|
|
||||
Balance, end of year
|
|
|
||||||
Common stock:
|
||||||||
Balance, beginning of year
|
|
|
||||||
Balance, end of year
|
|
|
||||||
Additional paid-in capital:
|
||||||||
Balance, beginning of year
|
|
|
||||||
Restricted stock grants, net of forfeitures
|
|
(
|
)
|
|||||
Issuance of shares under stock plans
|
|
(
|
)
|
|||||
Balance, end of year
|
|
|
||||||
Retained earnings:
|
||||||||
Balance, beginning of year
|
|
|
||||||
Net income
|
|
|
||||||
Dividends on common stock
|
(
|
)
|
|
|||||
Dividends accrued on preferred stock
|
(
|
)
|
(
|
)
|
||||
Balance, end of year
|
|
|
||||||
Accumulated other comprehensive income:
|
||||||||
Balance, beginning of year
|
|
|
||||||
Other comprehensive income (loss), net of tax
|
(
|
)
|
|
|||||
Balance, end of year
|
|
|
||||||
Unearned stock grant compensation:
|
||||||||
Balance, beginning of year
|
(
|
)
|
(
|
)
|
||||
Restricted stock grants, net of forfeitures
|
|
|
||||||
Amortization of unearned compensation
|
|
|
||||||
Balance, end of year
|
(
|
)
|
(
|
)
|
||||
Treasury stock:
|
||||||||
Balance, beginning of year
|
(
|
)
|
(
|
)
|
||||
Restricted stock grants, net of forfeitures
|
|
|
||||||
Net shares acquired related to employee share-based compensation plans
|
(
|
)
|
(
|
)
|
||||
Issuance of shares under stock plans
|
|
|
||||||
Balance, end of year
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
$
|
|
$
|
|
||||
Dividends declared on common stock per share
|
$
|
|
$
|
|
||||
Common shares outstanding:
|
||||||||
Balance, beginning of year
|
||||||||
Net shares acquired under employee share-based compensation plans
|
( |
) | ( |
) | ||||
Issuance of shares under stock plans
|
||||||||
Restricted stock grants, net of forfeitures
|
( |
) | ||||||
Balance, end of year
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization of deferred acquisition costs
|
|
|
||||||
Acquisition costs deferred
|
(
|
)
|
(
|
)
|
||||
Realized investment gains, net
|
(
|
)
|
(
|
)
|
||||
Unrealized (gains) losses on equity securities, net
|
(
|
)
|
|
|||||
Distributions received from equity method investees
|
|
|
||||||
Compensation expense related to share awards
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Deferred income tax benefit
|
(
|
)
|
(
|
)
|
||||
Decrease in receivables, net
|
|
|
||||||
Increase (decrease) in insurance reserves and policyholder funds
|
|
(
|
)
|
|||||
(Decrease) increase in accounts payable and accrued expenses
|
(
|
)
|
|
|||||
Other, net
|
(
|
)
|
|
|||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from investments sold
|
|
|
||||||
Proceeds from investments matured, called or redeemed
|
|
|
||||||
Investments purchased
|
(
|
)
|
(
|
)
|
||||
Additions to property and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) investing activities
|
|
(
|
)
|
|||||
Cash flows from financing activities:
|
||||||||
Payment of dividends on Series D preferred stock
|
(
|
)
|
(
|
)
|
||||
Payment of dividends on common stock
|
(
|
)
|
|
|||||
Proceeds from shares issued under stock plans
|
|
|
||||||
Treasury stock acquired — net employee share-based compensation
|
(
|
)
|
(
|
)
|
||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Net increase in cash
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
||||
Supplemental cash flow information:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid for income taxes
|
$
|
|
$
|
|
||||
Non-cash investing activities:
|
||||||||
Receivable from sale of other invested assets
|
$ | $ |
Note 1. |
Summary of Significant Accounting Policies
|
Note 2. |
Investments
|
2021
|
||||||||||||||||
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Amortized
Cost
|
|||||||||||||
Fixed maturities:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
|
|
|
|
||||||||||||
Financial services
|
|
|
|
|
||||||||||||
Other business – diversified
|
|
|
|
|
||||||||||||
Other consumer – diversified
|
|
|
|
|
||||||||||||
Total corporate securities
|
|
|
|
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
|
|
|
|
||||||||||||
Total redeemable preferred stocks
|
|
|
|
|
||||||||||||
Total fixed maturities
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Amortized
Cost
|
|||||||||||||
Fixed maturities:
|
||||||||||||||||
Bonds:
|
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate securities:
|
||||||||||||||||
Utilities and telecom
|
|
|
|
|
||||||||||||
Financial services
|
|
|
|
|
||||||||||||
Other business – diversified
|
|
|
|
|
||||||||||||
Other consumer – diversified
|
|
|
|
|
||||||||||||
Total corporate securities
|
|
|
|
|
||||||||||||
Redeemable preferred stocks:
|
||||||||||||||||
Other consumer – diversified
|
|
|
|
|
||||||||||||
Total redeemable preferred stocks
|
|
|
|
|
||||||||||||
Total fixed maturities
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
||||||||||||||||
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost or
Amortized
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Financial services
|
|
|
|
|
||||||||||||
Other business – diversified
|
|
|
|
|
||||||||||||
Total equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||
Estimated
Fair Value
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Cost or
Amortized
Cost
|
|||||||||||||
Equity securities:
|
||||||||||||||||
Common and non-redeemable preferred stocks:
|
||||||||||||||||
Financial services
|
|
|
|
|
||||||||||||
Other business – diversified
|
|
|
|
|
||||||||||||
Total equity securities
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||||||||||
Carrying
Value
|
Amortized
Cost
|
Carrying
Value
|
Amortized
Cost
|
|||||||||||||
Due in one year or less
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Due after one year through five years
|
|
|
|
|
||||||||||||
Due after five years through ten years
|
|
|
|
|
||||||||||||
Due after ten years
|
|
|
|
|
||||||||||||
Asset backed securities
|
|
|
|
|
||||||||||||
Totals
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Corporate securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies and authorities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Corporate securities
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired securities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
Fixed maturities
|
$
|
|
$
|
|
||||
Equity securities
|
|
|
||||||
Other
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Investment expenses
|
|
|
||||||
Net investment income
|
$
|
|
$
|
|
2021 | ||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total | |||||||||||||
Gains
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Losses
|
|
|
|
|
||||||||||||
Realized investment gains, net
|
$
|
|
$
|
|
$
|
|
$
|
|
2020 | ||||||||||||||||
Fixed
Maturities
|
Equity
Securities
|
Other
Invested Assets
|
Total | |||||||||||||
Gains
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Losses
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Realized investment gains, net
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
Sales proceeds
|
$
|
|
$
|
|
||||
Gross gains
|
|
|
||||||
Gross losses
|
|
(
|
)
|
2021
|
2020
|
|||||||
Sales proceeds
|
$
|
|
$
|
|
||||
Gross gains
|
|
|
||||||
Gross losses
|
|
(
|
)
|
2021
|
2020
|
|||||||
Sales proceeds
|
$
|
|
$
|
|
||||
Gross gains
|
|
|
||||||
Gross losses
|
|
|
2021
|
2020
|
|||||||
Net realized and unrealized gains (losses) recognized during the period on equity securities
|
$
|
|
$
|
(
|
)
|
|||
Less: Net realized gains recognized during the period on equity securities sold during the period
|
|
|
||||||
Unrealized gains (losses) on equity securities, net
|
$
|
|
$
|
(
|
)
|
Note 3. |
Disclosures About Fair Value of Financial Instruments
|
Level 1 |
Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria
include cash equivalents and exchange traded common stocks.
|
Level 2 |
Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly most of its
fixed maturities, which consist of U.S. Treasury securities, U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In
determining fair value measurements of its fixed maturities and non-redeemable preferred stocks using Level 2 criteria, the Company utilizes data from outside sources, including nationally recognized pricing services and broker/dealers.
Prices for the majority of the Company’s Level 2 fixed maturities and non-redeemable preferred stocks were determined using unadjusted prices received from pricing services that utilize models where the significant inputs are observable
(e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities) or can be corroborated by observable market data.
|
Level 3 |
Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily
observable from objective sources. With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for
the asset or liability. The Company’s financial instruments valued using Level 3 criteria consist of one fixed maturity security and one equity security. As of December 31, 2021 and December 31, 2020, the value of the fixed maturity
valued using Level 3 criteria was $
|
Assets:
|
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
Fixed maturities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Cash equivalents
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Assets:
|
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
Fixed maturities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Cash equivalents
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Level in
|
2021
|
2020
|
||||||||||||||||||
Fair Value
Hierarchy(1)
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
Level 1
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Fixed maturities
|
(1)
|
|
|
|
|
|
||||||||||||||
Equity securities
|
(1)
|
|
|
|
|
|
||||||||||||||
Other invested assets
|
Level 3
|
|
|
|
|
|||||||||||||||
Policy loans
|
Level 2
|
|
|
|
|
|||||||||||||||
Investments in unconsolidated trusts
|
Level 2
|
|
|
|
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Junior Subordinated Debentures, net
|
Level 2
|
|
|
|
|
(1) |
|
Note 4. |
Deferred Policy Acquisition Costs
|
2021 | 2020 |
|||||||||||||||
American
Southern
|
Bankers
Fidelity
|
American
Southern
|
Bankers
Fidelity
|
|||||||||||||
Deferred policy acquisition costs:
|
||||||||||||||||
Balance, beginning of year
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Capitalization
|
|
|
|
|
||||||||||||
Amortization
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Balance, end of year
|
$
|
|
$
|
|
$
|
|
$
|
|
Note 5. |
Insurance Reserves and Policyholder Funds
|
Amount of
Insurance In Force, Net
|
||||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Future policy benefits
|
||||||||||||||||
Life insurance policies:
|
||||||||||||||||
Ordinary life and annuities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Group life
|
|
|
|
|
||||||||||||
|
|
$
|
|
$
|
|
|||||||||||
Accident and health insurance policies
|
|
|
||||||||||||||
|
|
|||||||||||||||
Unearned premiums
|
|
|
||||||||||||||
Losses, claims and loss adjustment expenses
|
|
|
||||||||||||||
Other policy liabilities
|
|
|
||||||||||||||
Total insurance reserves and policyholder funds
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
Balance at January 1
|
$
|
|
$
|
|
||||
Less: Reinsurance recoverable on unpaid losses
|
(
|
)
|
(
|
)
|
||||
Net balance at January 1
|
|
|
||||||
Incurred related to:
|
||||||||
Current year
|
|
|
||||||
Prior years
|
(
|
)(1)
|
(
|
)(2)
|
||||
Total incurred
|
|
|
||||||
Paid related to:
|
||||||||
Current year
|
|
|
||||||
Prior years
|
|
|
||||||
Total paid
|
|
|
||||||
Net balance at December 31
|
|
|
||||||
Plus: Reinsurance recoverable on unpaid losses
|
|
|
||||||
Balance at December 31
|
$
|
|
$
|
|
(1) |
|
(2) |
|
2021
|
2020
|
|||||||
Total incurred losses
|
$
|
|
$
|
|
||||
Cash surrender value and matured endowments
|
|
|
||||||
Benefit reserve changes
|
(
|
)
|
(
|
|||||
Total insurance benefits and losses incurred
|
$
|
|
$
|
|
For the Years Ended December 31,
|
As of December 31, 2021
|
|||||||||||||||||||||||||||||||||||||||||||||||
Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
IBNR
Reserves
|
Cumulative
Number of
Reported Claims
|
||||||||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
2020
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
2021
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
$
|
|
Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2020
|
|
|
||||||||||||||||||||||||||||||||||||||
2021
|
|
|||||||||||||||||||||||||||||||||||||||
$
|
|
|||||||||||||||||||||||||||||||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance
|
$
|
|
For the Years Ended December 31,
|
As of December 31,
2021
|
|||||||||||||||||||||||||||||||||||||||||||||||
Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
IBNR
Reserves
|
Cumulative
Number of
Reported Claims
|
||||||||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
2020
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
2021
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
$
|
|
Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2020
|
|
|
||||||||||||||||||||||||||||||||||||||
2021
|
|
|||||||||||||||||||||||||||||||||||||||
$
|
|
|||||||||||||||||||||||||||||||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance
|
$
|
|
For the Years Ended December 31,
|
As of December 31, 2021
|
|||||||||||||||||||||||||||
Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
IBNR
Reserves
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||
Accident Year
|
2017
|
2018
|
2019
|
2020
|
2021
|
|||||||||||||||||||||||
2017
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||||||||||||
2019
|
|
|
|
|
|
|||||||||||||||||||||||
2020
|
|
|
|
|
||||||||||||||||||||||||
2021
|
|
|
|
|||||||||||||||||||||||||
$
|
|
Cumulative Paid Losses, Claims and Allocated Loss Adjustment
Expenses, Net of Reinsurance
|
||||||||||||||||||||
Accident Year
|
2017
|
2018
|
2019
|
2020
|
2021
|
|||||||||||||||
2017
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
2018
|
|
|
|
|
||||||||||||||||
2019
|
|
|
|
|||||||||||||||||
2020
|
|
|
||||||||||||||||||
2021
|
|
|||||||||||||||||||
$
|
|
|||||||||||||||||||
All outstanding liabilities before 2017, net of reinsurance
|
|
|||||||||||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance
|
$
|
|
For the Years Ended December 31,
|
As of December 31,
2021
|
|||||||||||||||||||||||||||||||||||||||||||||||
Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
IBNR
Reserves
|
Cumulative
Number of
Reported
Claims
|
||||||||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
2020
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
2021
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
$
|
|
Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2020
|
|
|
||||||||||||||||||||||||||||||||||||||
2021
|
|
|||||||||||||||||||||||||||||||||||||||
$
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2012, net of reinsurance
|
|
|||||||||||||||||||||||||||||||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance
|
$
|
|
For the Years Ended December 31,
|
As of December 31, 2021
|
|||||||||||||||||||||||||||||||||||||||||||||||
Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
IBNR
Reserves
|
Cumulative
Number of
Reported Claims
|
||||||||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|||||||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
2020
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||
2021
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
$
|
|
Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||||
Accident Year
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||||||||||||||
2012
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|||||||||||||||||||||||||||||||||||||
2020
|
|
|
||||||||||||||||||||||||||||||||||||||
2021
|
|
|||||||||||||||||||||||||||||||||||||||
$
|
|
|||||||||||||||||||||||||||||||||||||||
All outstanding liabilities before 2012, net of reinsurance
|
|
|||||||||||||||||||||||||||||||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance
|
$
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
Reserve Line
|
1st Year
|
2nd Year
|
3rd Year
|
4th Year
|
5th Year
|
6th Year
|
7th Year
|
8th Year
|
9th Year
|
10th Year
|
||||||||||||||||||||||||||||||
Medicare Supplement
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
Automobile Liability
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
-
|
%
|
||||||||||||||||||||
Automobile Physical Damage
|
|
%
|
|
%
|
-
|
%
|
-
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
General Liability
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||||||||||||||
Surety
|
|
%
|
|
%
|
|
%
|
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
|
%
|
|
%
|
|
%
|
December 31, 2021
|
||||
Net outstanding liabilities
|
||||
Medicare Supplement
|
$
|
|
||
Automobile Liability
|
|
|||
Automobile Physical Damage
|
|
|||
General Liability
|
|
|||
Surety
|
|
|||
Other short-duration insurance lines
|
|
|||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance
|
|
|||
Reinsurance recoverable on unpaid losses:
|
||||
Medicare Supplement
|
|
|||
Automobile Liability
|
|
|||
Automobile Physical Damage
|
|
|||
General Liability
|
|
|||
Total reinsurance recoverable on unpaid losses
|
|
|||
Unallocated claims adjustment expenses
|
|
|||
Total gross liability for unpaid losses, claims and loss adjustment expenses
|
$
|
|
Note 6. |
Reinsurance
|
2021
|
2020
|
|||||||
Direct premiums written
|
$
|
|
$
|
|
||||
Assumed premiums written
|
|
|
||||||
Ceded premiums written
|
(
|
)
|
(
|
)
|
||||
Net premiums written
|
$
|
|
$
|
|
||||
Direct premiums earned
|
$
|
|
$
|
|
||||
Assumed premiums earned
|
|
|
||||||
Ceded premiums earned
|
(
|
)
|
(
|
)
|
||||
Net premiums earned
|
$
|
|
$
|
|
||||
Provision for benefits and losses incurred
|
$
|
|
$
|
|
||||
Reinsurance loss recoveries
|
(
|
)
|
(
|
)
|
||||
Insurance benefits and losses incurred
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
Recoverable on unpaid losses
|
$
|
|
$
|
|
||||
Recoverable on unpaid benefits
|
|
|
||||||
Recoverable on paid losses
|
|
|
||||||
Ceded unearned premiums
|
|
|
||||||
Ceded advanced premiums
|
|
|
||||||
Total reinsurance receivables
|
$
|
|
$
|
|
Note 7. |
Income Taxes
|
2021
|
2020
|
|||||||
Total tax expense on income
|
$
|
|
$
|
|
||||
Tax expense on components of shareholders’ equity:
|
||||||||
Net unrealized gains (losses) on investment securities
|
(
|
)
|
|
|||||
Total tax expense (benefit)
|
$
|
(
|
)
|
$
|
|
2021
|
2020
|
|||||||
Federal income tax provision
|
$
|
|
$
|
|
||||
Statutory rate
|
|
%
|
|
%
|
||||
Dividends-received deduction
|
(
|
)
|
(
|
)
|
||||
Meals and entertainment
|
|
|
||||||
Vested stock and club dues
|
(
|
)
|
|
|||||
Parking disallowance
|
|
|
||||||
Adjustment for prior years’ estimates to actual
|
(
|
)
|
|
|||||
Income tax expense
|
$
|
|
$
|
|
||||
Effective tax rate
|
|
%
|
|
%
|
2021
|
2020
|
|||||||
Deferred tax assets:
|
||||||||
Deferred acquisition costs
|
$
|
|
$
|
|
||||
Insurance reserves
|
|
|
||||||
Impaired assets
|
|
|
||||||
Bad debts and other
|
|
|
||||||
Total deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Deferred and uncollected premiums
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net unrealized investment gains
|
(
|
)
|
(
|
)
|
||||
Other
|
(
|
)
|
(
|
)
|
||||
Total deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax asset (liability)
|
$
|
|
$
|
(
|
2021
|
2020
|
|||||||
Current – Federal
|
$
|
|
$
|
|
||||
Deferred – Federal
|
(
|
)
|
(
|
)
|
||||
Total
|
$
|
|
$
|
|
Note 8. |
Credit Arrangements
|
Atlantic American
Statutory Trust I
|
Atlantic American
Statutory Trust II
|
|||||||
JUNIOR SUBORDINATED DEBENTURES(1)(2)
|
||||||||
Balance December 31, 2021
|
$
|
|
$
|
|
||||
Less: Treasury debt(3)
|
|
(
|
)
|
|||||
Net balance December 31, 2021
|
$
|
|
$
|
|
||||
Net balance December 31, 2020
|
$
|
|
$
|
|
||||
Coupon rate
|
|
|
|
+ |||||
Interest payable
|
|
|
|
|
||||
Maturity date
|
|
|
|
|
||||
Redeemable by issuer
|
|
|
|
|
||||
TRUST PREFERRED SECURITIES
|
||||||||
Issuance date
|
|
|
|
|
||||
Securities issued
|
|
|
||||||
Liquidation preference per security
|
$
|
|
$
|
|
||||
Liquidation value
|
$
|
|
$
|
|
||||
Coupon rate
|
|
|
+
|
|
+ ||||
Distribution payable
|
|
|
|
|
||||
Distribution guaranteed by(4)
|
|
|
|
|
(1) |
|
(2) |
|
(3) |
|
(4) |
|
Note 9.
|
Leases
|
Year Ended
December 31, 2021
|
Year Ended
December 31, 2020
|
|||||||
Other information on operating leases:
|
||||||||
Cash payments included in the measurement of lease liabilities reported in operating cash flows
|
$
|
|
|
|||||
Right-of-use assets included in on the consolidated
balance sheet
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
||||
Weighted average remaining lease term in years
|
|
|
Lease Liability
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total undiscounted lease payments
|
|
|||
Less: present value adjustment
|
|
|||
Operating lease liability included in
on the consolidated balance sheet
|
$
|
|
Note 10. |
Benefit Plans
|
Note 11. |
Preferred Stock
|
Note 12. |
Earnings Per Common Share
|
For the Year Ended December 31, 2021 | ||||||||||||
Income |
Weighted
Average Shares
Outstanding
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic and Diluted Earnings Per Common Share
|
||||||||||||
Net income before preferred stock dividends
|
$
|
|
|
-
|
||||||||
Less preferred stock dividends
|
(
|
)
|
—
|
|||||||||
Net income applicable to common shareholders
|
$
|
|
|
$
|
|
For the Year Ended December 31, 2020
|
||||||||||||
Income
|
Weighted
Average Shares
Outstanding
(In thousands)
|
Per Share
Amount
|
||||||||||
Basic Earnings Per Common Share
|
||||||||||||
Net income before preferred stock dividends
|
$
|
|
|
-
|
||||||||
Less preferred stock dividends
|
(
|
)
|
—
|
|||||||||
Net income applicable to common shareholders
|
|
|
|
|||||||||
Diluted Earnings Per Common Share
|
||||||||||||
Effect of Series D preferred stock
|
|
|
||||||||||
Net income applicable to common shareholders
|
$
|
|
|
$
|
|
Note 13. |
Statutory Reporting
|
2021
|
2020
|
|||||||
Bankers Fidelity, net income (loss)
|
$
|
(
|
)
|
$
|
|
|||
American Southern, net income
|
|
|
||||||
Statutory net income
|
$
|
|
$
|
|
||||
Bankers Fidelity, surplus
|
$
|
|
$
|
|
||||
American Southern, surplus
|
|
|
||||||
Statutory surplus
|
$
|
|
$
|
|
Note 14. |
Related Party Transactions
|
Note 15. |
Segment Information
|
For the Year Ended December 31, 2021
|
||||||||||||||||||||
American
Southern
|
Bankers
Fidelity
|
Corporate
& Other
|
Adjustments
& Eliminations
|
Consolidated
|
||||||||||||||||
Insurance premiums, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Insurance benefits and losses incurred
|
|
|
|
|
|
|||||||||||||||
Expenses deferred
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||
Amortization and depreciation expense
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Underwriting income (loss)
|
|
(
|
)
|
|
( |
) | ||||||||||||||
Net investment income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Other income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Operating income (loss)
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||
Net realized gains
|
|
|
|
|
|
|||||||||||||||
Unrealized gains on equity securities
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Total revenues
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Intangibles
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
For the Year Ended December 31, 2020
|
||||||||||||||||||||
American
Southern
|
Bankers
Fidelity
|
Corporate
& Other
|
Adjustments
& Eliminations
|
Consolidated
|
||||||||||||||||
Insurance premiums, net
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Insurance benefits and losses incurred
|
|
|
|
|
|
|||||||||||||||
Expenses deferred
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||
Amortization and depreciation expense
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Underwriting income
|
|
|
|
|||||||||||||||||
Net investment income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Other income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Operating income (loss)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net realized gains
|
|
|
|
|
|
|||||||||||||||
Unrealized losses on equity securities
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Income (loss) before income taxes
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Total revenues
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Intangibles
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Note 16. |
Commitments and Contingencies
|
Note 17.
|
Subsequent Events
|
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
Item 9B. |
Other Information
|
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
|
Plan Category
|
Number of
Securities to Be
Issued Upon
Exercise of
Outstanding
Options,
Warrants
and Rights
|
Weighted-Average
Exercise Price
of Outstanding
Options,
Warrants
and Rights
|
Number of Securities
Remaining Available
for Future Issuance
Under Equity
Compensation Plans
(Excluding Securities
Reflected in the
First Column)
|
|||||||||
Equity compensation plans approved by security holders
|
—
|
$
|
—
|
935,200
|
||||||||
Equity compensation plans not approved by security holders(1)
|
—
|
—
|
—
|
|||||||||
Total
|
—
|
$
|
—
|
935,200
|
(1) |
All the Company’s equity compensation plans have been approved by the Company’s shareholders.
|
Item 15. |
Exhibits and Financial Statement Schedules
|
(a) |
List of documents filed as part of this report:
|
1. |
Financial Statements:
|
2. |
Financial Statement Schedules:
|
3. |
Exhibits *:
|
Restated Articles of Incorporation of the registrant, as amended [incorporated by reference to Exhibit 3.1 to the registrant’s Form 10-K for the year ended December 31, 2008].
|
||
Restated Bylaws of the registrant, as amended [incorporated by reference to Exhibit 3.1 to the registrant’s Form 8-K filed on March 4, 2016].
|
||
Description of the registrant’s common stock registered pursuant to section 12 of the Securities Exchange Act of 1934 [incorporated by reference to Exhibit 4.1 to the registrant’s Form 10-K filed on March 24,
2020].
|
||
10.01
|
Management Agreement, dated July 1, 1993, between the registrant and Atlantic American Life Insurance Company and Bankers Fidelity Life Insurance Company [incorporated by reference to Exhibit 10.41 to the
registrant’s Form 10-Q for the quarter ended September 30, 1993].
|
|
Tax Allocation Agreement, dated as of January 4, 2016, between the registrant and the registrant’s subsidiaries [incorporated by reference to Exhibit 10.02 to the registrant’s Form 10-K for the year ended
December 31, 2017].
|
||
Atlantic American Corporation 2012 Nonqualified Stock Purchase Plan [incorporated by reference to Exhibit 99.1 to the registrant’s Form S-8 (File No. 333-183207) filed on August 10, 2012].
|
||
Atlantic American Corporation 2012 Equity Incentive Plan [incorporated by reference to Exhibit 10.1 to the registrant’s Form 10-Q for the quarter ended March 31, 2013].
|
||
Lease Agreement, dated as of November 1, 2007, between Georgia Casualty & Surety Company, Bankers Fidelity Life Insurance Company, Atlantic American Corporation and Delta Life Insurance Company
[incorporated by reference to Exhibit 10.10 to the registrant’s Form 10-K for the year ended December 31, 2007].
|
||
First Amendment to Lease Agreement, dated as of March 31, 2008, between Georgia Casualty & Surety Company, Bankers Fidelity Life Insurance Company, Atlantic American Corporation and Delta Life Insurance
Company [incorporated by reference to Exhibit 10.2 to the registrant’s Form 10-Q for the quarter ended March 31, 2008].
|
||
Employment and Transition Agreement with Fixed Determination Date, dated as of June 14, 2017 by and between John G. Sample, Jr. and the registrant [incorporated by reference to Exhibit 10.07 to the
registrant’s Form 10-K for the year ended December 31, 2017].
|
||
Revolving Credit Agreement, dated as of May 12, 2021, by and between Atlantic American Corporation and Truist Bank [incorporated by reference to Exhibit 10.1 to the registrant’s Form 8-K filed with the SEC on
May 13, 2021].
|
||
Code of Business Conduct and Ethics [incorporated by reference to Exhibit 14.1 to the registrant’s Form 10-K for the year ended December 31, 2003].
|
||
Subsidiaries of the registrant [incorporated by reference to Exhibit 21.1 to the registrant’s Form 10-K for the year ended December 31, 2015].
|
||
Consent of Dixon Hughes Goodman LLP, Independent Registered Public Accounting Firm.
|
||
Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase.
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
* |
The registrant agrees to furnish to the Commission upon request a copy of any instruments defining the rights of security holders of the registrant that may be omitted from filing in accordance with the Commission’s rules and
regulations.
|
** |
Management contract, compensatory plan or arrangement required to be filed pursuant to Part IV, Item 15(c) of Form 10-K and Item 601 of Regulation S-K.
|
Item 16. |
Form 10-K Summary
|
ATLANTIC AMERICAN CORPORATION
|
||
(Registrant)
|
||
By:
|
/s/ J. Ross Franklin
|
|
J. Ross Franklin
|
||
Vice President and Chief Financial Officer
|
||
Date: March 25, 2022
|
Signature
|
Title
|
Date
|
||
/s/ Hilton H. Howell, Jr.
|
President, Chief Executive Officer and Chairman of the Board
(Principal Executive Officer)
|
March 25, 2022
|
||
HILTON H. HOWELL, JR.
|
||||
/s/ J. Ross Franklin
|
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
March 25, 2022
|
||
J. ROSS FRANKLIN
|
||||
/s/ Robin R. Howell
|
Director
|
March 25, 2022
|
||
ROBIN R. HOWELL
|
||||
/s/ Mark E. Preisinger
|
Director
|
March 25, 2022
|
||
MARK E. PREISINGER
|
||||
/s/ Joseph M. Scheerer
|
Director
|
March 25, 2022
|
||
JOSEPH M. SCHEERER
|
||||
/s/ Scott G. Thompson
|
Director
|
March 25, 2022
|
||
SCOTT G. THOMPSON
|
||||
/s/ D. Keehln Wheeler
|
Director
|
March 25, 2022
|
||
D. KEEHLN WHEELER
|
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Investments
|
|
|
||||||
Investment in subsidiaries
|
|
|
||||||
Investments in unconsolidated trusts
|
|
|
||||||
Deferred tax asset, net | ||||||||
Income taxes receivable from subsidiaries
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deferred tax liability, net
|
$
|
|
$
|
|
||||
Other payables
|
|
|
||||||
Junior subordinated debentures
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
REVENUE
|
||||||||
Fee income from subsidiaries
|
$
|
|
$
|
|
||||
Distributed earnings from subsidiaries
|
|
|
||||||
Unrealized gains (losses) on equity securities, net
|
|
(
|
)
|
|||||
Other
|
(
|
)
|
(
|
)
|
||||
Total revenue
|
|
|
||||||
GENERAL AND ADMINISTRATIVE EXPENSES
|
|
|
||||||
INTEREST EXPENSE
|
|
|
||||||
|
(
|
)
|
||||||
INCOME TAX BENEFIT(1)
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET
|
|
|
||||||
NET INCOME
|
$
|
|
$
|
|
(1) |
|
Year Ended December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Unrealized (gains) losses on equity securities, net
|
(
|
)
|
|
|||||
Depreciation and amortization
|
|
|
||||||
Compensation expense related to share awards
|
|
|
||||||
Equity in undistributed earnings of subsidiaries, net
|
(
|
)
|
(
|
)
|
||||
(Increase) decrease in intercompany taxes
|
(
|
)
|
|
|||||
Deferred income tax benefit
|
(
|
)
|
(
|
)
|
||||
Increase in accounts payable and accrued expenses
|
|
|
||||||
Other, net
|
(
|
)
|
|
|||||
Net cash provided by operating activities
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Additions to property and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Payment of dividends on Series D preferred stock
|
(
|
)
|
(
|
)
|
||||
Payment of dividends on common stock
|
(
|
)
|
|
|||||
Proceeds from shares issued under stock plans
|
|
|
||||||
Treasury stock acquired — net employee share-based compensation
|
(
|
)
|
(
|
)
|
||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Net (decrease) increase in cash
|
(
|
)
|
|
|||||
Cash and cash equivalents at beginning of year
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
||||
Supplemental disclosure:
|
||||||||
Cash paid for interest
|
$
|
|
$
|
|
||||
Cash paid for income taxes
|
$
|
|
$
|
|
||||
Intercompany tax settlement from subsidiaries
|
$
|
|
$
|
|
Segment
|
Deferred
Acquisition
Costs
|
Future Policy
Benefits,
Losses,
Claims and
Loss
Reserves
|
Unearned
Premiums
|
Other Policy
Claims and
Benefits
Payable
|
||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2021:
|
||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
American Southern
|
|
|
|
|
||||||||||||
$
|
|
$
|
|
(1)
|
$
|
|
$
|
|
||||||||
December 31, 2020:
|
||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
American Southern
|
|
|
|
|
||||||||||||
$
|
|
$
|
|
(2)
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Segment
|
Premium
Revenue
|
Net
Investment
Income
|
Benefits,
Claims,
Losses and
Settlement
Expenses
|
Amortization
of Deferred
Acquisition
Costs
|
Other
Operating
Expenses
|
Casualty
Premiums
Written
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
December 31, 2021:
|
||||||||||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
American Southern
|
|
|
|
|
|
|
||||||||||||||||||
Corporate & other
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
December 31, 2020:
|
||||||||||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
American Southern
|
|
|
|
|
|
|
||||||||||||||||||
Corporate & other
|
|
(
|
)
|
|
|
|
|
|||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Direct
Amount
|
Ceded to
Other
Companies
|
Assumed
From Other
Companies
|
Net
Amounts
|
Percentage
of Amount
Assumed
to Net
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Year ended December 31, 2021:
|
||||||||||||||||||||
Life insurance in force
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||
Premiums —
|
||||||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
%
|
|||||||||
American Southern
|
|
(
|
)
|
|
|
|
%
|
|||||||||||||
Total premiums
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
%
|
|||||||||
Year ended December 31, 2020:
|
||||||||||||||||||||
Life insurance in force
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||
Premiums —
|
||||||||||||||||||||
Bankers Fidelity
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
%
|
|||||||||
American Southern
|
|
(
|
)
|
|
|
|
%
|
|||||||||||||
Total premiums
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
%
|
Claims and Claim
Adjustment
Expenses Incurred
Related To
|
||||||||||||||||||||||||||||||||||||||||
Year Ended
|
Deferred
Policy
Acquisition
Costs
|
Reserves
|
Unearned
Premiums
|
Earned
Premiums
|
Net
Investment
Income
|
Current
Year
|
Prior
Years
|
Amortization
of Deferred
Acquisition
Costs
|
Paid Claims
and Claim
Adjustment
Expenses
|
Premiums
Written
|
||||||||||||||||||||||||||||||
|
(In thousands) | |||||||||||||||||||||||||||||||||||||||
December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||||
December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
1. |
I have reviewed this annual report on Form 10-K of Atlantic American Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or
persons performing the equivalent functions):
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report
financial information; and
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 25, 2022
|
/s/ Hilton H. Howell, Jr.
|
|
Hilton H. Howell, Jr.
|
||
President and Chief Executive Officer
|
1. |
I have reviewed this annual report on Form 10-K of Atlantic American Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or
persons performing the equivalent functions):
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely
to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 25, 2022 | /s/ J. Ross Franklin | |
J. Ross Franklin
|
||
Vice President and Chief Financial Officer
|
(1) |
The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
|
Date: March 25, 2022 |
/s/ Hilton H. Howell, Jr.
|
|
Hilton H. Howell, Jr.
|
|||
President and Chief Executive Officer
|
|||
|
Date: March 25, 2022 |
/s/ J. Ross Franklin
|
|
J. Ross Franklin
|
|||
Vice President and Chief Financial Officer
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments: | ||
Fixed maturities, cost | $ 238,597 | $ 222,461 |
Equity securities, cost | 4,907 | 6,393 |
Other invested assets, cost | 698 | 3,765 |
Receivables: | ||
Insurance premiums and other, allowance for doubtful accounts | $ 188 | $ 198 |
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) | 20,378,576 | 20,415,243 |
Treasury stock, at cost (in shares) | 2,022,318 | 1,985,651 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenue: | ||
Insurance premiums, net | $ 184,216 | $ 183,539 |
Net investment income | 8,528 | 7,744 |
Realized investment gains, net | 4,903 | 7,420 |
Unrealized gains (losses) on equity securities, net | 1,894 | (3,431) |
Other income | 13 | 76 |
Total revenue | 199,554 | 195,348 |
Benefits and expenses: | ||
Insurance benefits and losses incurred | 131,694 | 119,876 |
Commissions and underwriting expenses | 47,496 | 46,811 |
Interest expense | 1,387 | 1,610 |
Other expense | 13,675 | 11,548 |
Total benefits and expenses | 194,252 | 179,845 |
Income before income taxes | 5,302 | 15,503 |
Income tax expense | 1,021 | 3,334 |
Net Income | 4,281 | 12,169 |
Preferred stock dividends | (399) | (399) |
Net Income applicable to common shareholders | $ 3,882 | $ 11,770 |
Earnings per common share (basic) (in dollars per share) | $ 0.19 | $ 0.58 |
Earnings per common share (diluted) (in dollars per share) | $ 0.19 | $ 0.56 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net income | $ 4,281 | $ 12,169 |
Available-for-sale fixed maturity securities: | ||
Gross unrealized holding gain (loss) arising in the period | (8,686) | 18,791 |
Related income tax effect | 1,824 | (3,946) |
Subtotal | (6,862) | 14,845 |
Less: reclassification adjustment for net realized gains included in net income | (570) | (385) |
Related income tax effect | 120 | 81 |
Subtotal | (450) | (304) |
Total other comprehensive income (loss), net of tax | (7,312) | 14,541 |
Total comprehensive income (loss) | $ (3,031) | $ 26,710 |
Summary of Significant Accounting Policies |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies |
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United
States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American
Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any
historical period are not necessarily indicative of results to be expected in any future period.
At December 31, 2021, the Parent owned four
insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary,
American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk
Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity.
Premium Revenue and Cost Recognition
Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying
period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated
with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy
benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing
policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides
for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective
period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are
periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments
are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for
property and casualty and short-duration health insurance).
Intangibles
Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net
assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse
conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an
assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented.
Investments
The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and,
accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity
securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted
market prices, when available, or independent broker quotations. As of December 31, 2021, the Company owned a certain equity security in the amount of $157,
with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. As of December 31, 2021, the Company owned a certain fixed maturity in the amount of $250, with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. Values that are not determined using quoted market
prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real
estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships and limited liability companies and are accounted for using the equity method. If the value of a fixed maturity security or other
invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes
the new cost basis.
Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the
effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a
direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income.
Income Taxes
Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They
arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income
taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a
deferred tax asset will not be realized.
Earnings Per Common Share
Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period.
Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed
conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months
or less from date of purchase.
Reinsurance
The Company enters into reinsurance agreements with other companies in the normal course of business. For each reinsurance agreement, the Company determines if the agreement provides indemnification against loss or
liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and
the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. Reinsurance premiums from assumed business are estimated based on information received from ceding companies and reinsureds. Any subsequent
differences that arise regarding such estimates are recorded in the period in which they are determined.
Share-Based Transactions
For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded
common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based
compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date.
Treasury Stock
Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to
determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued.
Recently Issued Accounting Standards
Adoption of New Accounting Standards
Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No.
2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending
other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, although earlier adoption is permitted. The Company
adopted ASU 2019-12 as of January 1, 2021. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements.
Future Adoption of New Accounting Standards
Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848):
Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to investments, derivatives, or other transactions that reference the London
Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Along with the optional expedients, the amendments include a general principle that permits an entity to consider contract
modifications due to reference reform to be an event that does not require contract re-measurement at the modification date or reassessment of a previous accounting determination. Additionally, a company may make a one-time election to sell,
transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. This standard may be elected over time
through December 31, 2022 as reference rate reform activities occur. The Company is currently assessing the effect of adopting this guidance on its financial condition and results of operations.
Accounting for Long-Duration Contracts. In August 2018, the FASB issued ASU No. 2018-12, Financial Services
—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). This guidance (1) improves the timeliness of recognizing changes in the liability for future policy benefits and modifies the rate used to
discount future cash flows, (2) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (3) simplifies the amortization of deferred acquisition costs, and (4)
improves the effectiveness of the required disclosures. ASU 2018-12 is effective for interim and annual reporting periods beginning after December 15, 2024, although earlier adoption is permitted. The Company is currently evaluating the new
guidance, but has not yet determined the method or timing for adoption or estimated the impact on the Company’s consolidated financial statements.
Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments
– Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to measure all expected credit losses for financial instruments (including reinsurance recoverable and policy loans)
held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Under current GAAP, entities generally recognize credit losses when it is probable that the loss has been incurred. ASU 2016-13
will remove all recognition thresholds and will require entities to recognize an allowance for credit losses equal to the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the entity expects
to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale (“AFS”) debt securities and beneficial interests in securitized financial assets. Credit losses on AFS debt
securities carried at fair value will continue to be measured as an other than temporary impairment (“OTTI”) when incurred; however, the losses will be recognized through an allowance and no longer as an adjustment to the cost basis. Recoveries of
OTTI will be recognized as reversals of valuation allowances and no longer accreted as investment income through an adjustment to the investment yield. The allowance on AFS debt securities cannot cause the net carrying value to be below fair value
and, therefore, it is possible that increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance will also require purchased financial assets with a
more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase. For the Company, the amendments in ASU 2016-13 will be
effective for interim and annual reporting periods beginning after December 15, 2022. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt on
January 1, 2023. Implementation matters yet to be addressed include determining the impact of valuation allowances on the effective interest method for recognizing interest income from AFS debt securities as well as updating our investment
accounting system functionality to adjust valuation allowances based on changes in fair value. The estimated effect on the Company’s consolidated financial statements can only be estimated based on the current investment portfolio at any given
point in time, and accordingly, has not currently been determined.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used
in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates.
|
Investments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses and cost or amortized cost of the Company’s
investments in fixed maturities and equity securities, aggregated by type and industry, as of December 31, 2021 and December 31, 2020.
Fixed maturities were comprised of the following:
Bonds having an amortized cost of $11,169
and $10,670 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2021 and 2020,
respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $5,371 and $1,997 and included in the tables above were pledged as collateral to FHLB at December 31, 2021 and 2020, respectively.
The carrying value and amortized cost of the Company’s investments in fixed maturities at December 31, 2021 and 2020 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.
The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous
unrealized loss position as of December 31, 2021 and 2020.
The evaluation for an other than temporary impairment (“OTTI”) is a quantitative and qualitative process, which is subject to risks and
uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial
condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price
recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s
expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.
There were no OTTI charges
recorded during the years ended December 31, 2021 and 2020.
As of December 31, 2021 and 2020, there were sixty-one
and twenty securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in
fixed maturities within the financial services, other diversified business and other diversified consumer sectors. The increase in the number and value of securities in an unrealized loss position during the year ended December 31, 2021, was
primarily attributable to a decline in market values in certain of the Company’s fixed maturity securities as a result of a rising interest rate environment. The Company does not currently intend to sell nor does it expect to be required to sell
any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as
well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2021.
Investment income was earned from the following sources:
A summary of realized investment gains (losses) follows:
Proceeds from the sales of available-for-sale fixed maturities were as follows:
Proceeds from the sales of equity securities were as follows:
Proceeds from the sales of other invested assets were as follows:
Sales of available-for-sale securities in 2021 and 2020 were primarily a result of improving the overall risk versus return profile of the
portfolio. In addition, the Company sold its interest in a certain limited liability company held as other invested assets to a third-party. The transaction closed prior to December 31, 2020. The Company recorded gross realized gains on this
sale of $6.9 million and proceeds of $12.7
million which settled after year end.
The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31,
2021 and 2020.
The Company’s bond portfolio included 99%
investment grade securities, as defined by the NAIC, at December 31, 2021.
Variable Interest Entities
The Company holds passive interests in a number of entities that are considered to be variable interest entities (“VIEs”) under GAAP guidance. The
Company’s VIE interests principally consist of interests in limited partnerships and limited liability companies formed for the purpose of achieving diversified equity returns. The Company’s VIE interests, carried as a part of other invested
assets, totaled $198 and $3,238
at December 31, 2021 and 2020, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated subsidiaries, totaled $1,238
at December 31, 2021 and 2020.
The Company does not have power over the activities that most significantly impact the economic performance of these VIEs and thus is not the
primary beneficiary. Therefore, the Company has not consolidated these VIEs. The Company’s involvement with each VIE is limited to its direct ownership interest in the VIE. The Company has no arrangements with any of the VIEs to provide other
financial support to or on behalf of the VIE. The Company’s maximum loss exposure relative to these investments was limited to the carrying value of the Company’s investment in the VIEs, which amount to $1,436 and $4,476, at December 31, 2021 and 2020, respectively.
As of December 31, 2021 and 2020, the Company had outstanding commitments totaling $1,997, whereby the Company is committed to fund
these investments and may be called by such VIEs during the commitment period to fund the purchase of new investments and partnership expenses.
|
Disclosures About Fair Value of Financial Instruments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Financial Instruments |
The estimated fair values have been determined by the Company using available market information from various market sources and appropriate
valuation methodologies as of the respective dates. However, considerable judgment is necessary to interpret market data and to develop the estimates of fair value. Although management is not aware of any factors that would significantly affect
the estimated fair value amounts, the estimates presented herein are not necessarily indicative of the amounts which the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies
may have a material effect on the estimated fair value amounts.
The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the
value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.
Recurring Fair Value Measurements
Cash Equivalents. The carrying amount approximates fair value
due to the short-term nature of the instruments.
Fixed Maturities and Common and Non-Redeemable Preferred Stocks. The
carrying amount is determined from publicly quoted market prices. Certain fixed maturities do not have publicly quoted values and consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are
not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows discounted at reasonable estimated rates of interest. Other qualitative and quantitative information is also considered, as
applicable.
Nonrecurring Fair Value Measurements
Non-publicly Traded Invested Assets. The fair value of
investments in certain limited partnerships which are included in other invested assets on the consolidated balance sheet were determined by officers of those limited partnerships.
Policy Loans. Policy loans, which are categorized as Level 2
fair value measurements, are carried at the unpaid principal balances.
Junior Subordinated Debentures. The fair value is estimated
based on observable interest rates and yields for debt instruments having similar characteristics.
As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:
As of December 31, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below:
The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial
instruments as of December 31, 2021 and 2020.
|
Deferred Policy Acquisition Costs |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs |
The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.
|
Insurance Reserves and Policyholder Funds |
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Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds |
The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment
expenses at December 31, 2021 and 2020.
Annualized premiums for accident and health insurance policies were $101,315 and $109,430 at December 31, 2021 and 2020, respectively.
Future Policy Benefits
Liabilities for life insurance future policy benefits are based upon assumed future investment yields, mortality rates, and lapse rates after
giving effect to possible risks of unexpected claim experience. The assumed mortality and lapse rates are based upon the Company’s experience modified as necessary to reflect anticipated trends and are generally established at contract
inception. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 5.5% to 7.0% for 1977 through 1979 issues, (iii) 9.0%
for 1980 through 1987 issues, (iv) 5.0%
to 7.0% for 1988 through 2009
issues, (v) 4.0% for 2010 through 2012
issues, (vi) 3.5% to 4.0%
for 2013 through 2020 issues, and (vii) 3.0%
for 2021 issues.
Loss and Claim Reserves
Loss and claim reserves represent estimates of projected ultimate losses and are based upon: (a) management’s estimate of ultimate liability and
claims adjusters’ evaluations for unpaid claims reported prior to the close of the accounting period, (b) estimates of incurred but not reported (“IBNR”) claims based on past experience, and (c) estimates of loss adjustment expenses. The
estimated liability is periodically reviewed by management and updated, with changes to the estimated liability recorded in the statement of operations in the year in which such changes are known.
Activity in the liability for unpaid loss and claim reserves is summarized as follows:
Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:
Liability for Unpaid Losses, Claims and Loss Adjustment Expenses
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
Medicare Supplement
The cumulative number of reported claims for the Medicare supplement line of business is the number of distinct claims incurred and submitted to
Medicare for payment in the given year. Multiple payments on the same claim are not counted in the frequency information. Estimated ultimate claims incurred, using claims data reported during each month of any given year, are calculated using the
chain ladder method modified to use seasonality and trend-adjusted expected claims for the most recent four-month period prior to the statement date. Additional adjustments to the estimated ultimate claims incurred are then applied to account for
seasonal changes in claim experience and in the rate of claim processing. The IBNR liability is calculated as estimated ultimate claims less paid claims and claims in course of settlement.
of loss data are used to develop the estimated ultimate incurred claims. Similar approaches are used for other less significant health products, subject to modifications
to account for unique aspects of the products.Automobile Liability
Automobile Physical Damage
General Liability
Surety
For the property and casualty lines of business, the number of claims presented above equals the number of occurrences by type of claim reported
to the Company. The number of claims reported during a given year corresponds to the number of claims records opened during the year. Frequency information is maintained on a cumulative basis by accident year by line of business. For automobile
claims, a claim count is separately maintained for bodily injury, property damage and physical damage claims. The Company has consistently monitored claim frequency on this basis, and believes this provides more meaningful information than using
claimant count which can change over the course of settling a claim.
In general, when a claim is reported, claims representatives establish a “case reserve” for the estimated amount of the ultimate payment based on
the known information of the claim at that time. Claims managers review and monitor all property and casualty claims in excess of $25,000.
As new information becomes available or payments are made on a claim, the case reserve is adjusted to reflect the revised estimate of the ultimate amount to be paid out. Estimates and assumptions pertaining to individual claims are based on
complex and subjective judgments and subject to change at any time as new information becomes available.
In addition to case reserves, IBNR reserves are established to provide for claims which have not been reported to the Company as of the reporting
date as well as potential adverse development on known case reserves. IBNR reserve estimates are derived through a number of analytical techniques. Actuarial data is analyzed by line of business, coverage and accident year. Qualitative factors
are also considered in determining IBNR reserves and include such factors as judicial decisions, general economic trends such as inflation, changes in policy forms, and underwriting changes. Reserves are reviewed quarterly and any indicated
adjustments are made.
Because of the inherent uncertainties in establishing both case and IBNR reserves, ultimate loss experience may prove better or worse than
indicated by the combined claim reserves. Adjustments to claim reserves are reflected in the period recognized and could increase or decrease earnings for the period.
The following is supplementary information about average historical claims duration as of December 31, 2021.
The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as
follows:
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Reinsurance |
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Reinsurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance |
In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are
reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99.6% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2021. Reinsurance recoverables of $27,310 were due from General Re Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established
against reinsurance recoverables, if appropriate.
The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:
Components of reinsurance receivables at December 31, 2021 and 2020 were as follows:
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Income Taxes |
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Total income taxes were allocated as follows:
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as
follows:
The primary differences between the effective tax rate and the federal statutory income tax rate for 2021 resulted from the adjustment for prior years’ estimates to actual that
are generally updated at the completion of the third quarter of each fiscal year and were $85 in the year ended December 31, 2021.
Also contributing to differences between the effective tax rate and the federal statutory income tax rate were permanent differences related to meals and entertainment and vested stock and club dues. Another contributing factor was the
dividends-received deduction (“DRD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s
taxable income.
The primary differences between the effective tax rate and the federal statutory income tax rate for 2020 resulted from permanent differences
related to meals and entertainment and vested stock and club dues. Also contributing to differences between the effective tax rate and the federal statutory income tax rate were adjustment for prior years’ estimates to actual that are generally
updated at the completion of the third quarter of each fiscal year and were $18 in the year ended December 31, 2020.
Deferred tax assets and liabilities at December 31, 2021 and 2020 were comprised of the following:
The components of income tax expense were:
The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. Tax years
are considered open tax years that remain subject to examination by the Internal Revenue Service. |
Credit Arrangements |
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Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements |
The
Company is preparing for the expected discontinuation of LIBOR by identifying, assessing and monitoring risks associated with LIBOR transition. Preparation includes taking steps to update operational processes to support alternative reference
rates and models, as well as evaluating legacy contracts for any changes that may be required, including the determination of applicable fallbacks.
Bank
Debt
On May 12, 2021, the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with Truist Bank as the lender (the “Lender”). The Credit Agreement provides for
an unsecured $10 million revolving credit facility that matures on April 12, 2024. Under the Credit Agreement, the Company will pay interest on the unpaid principal balance of outstanding revolving loans at the LIBOR Rate (as defined in
the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%.
The Credit Agreement requires the Company to comply with certain covenants, including a debt to capital ratio that restricts the Company from incurring consolidated indebtedness
that exceeds 35% of the Company’s consolidated capitalization at any time. The Credit Agreement also contains customary
representations and warranties and events of default. Events of default include, among others, (a) the failure by the Company to pay any amounts owed under the Credit Agreement when due, (b) the failure to perform and not timely remedy
certain covenants, (c) a change in control of the Company and (d) the occurrence of bankruptcy or insolvency events. Upon an event of default, the Lender may, among other things, declare all obligations under the Credit Agreement immediately
due and payable and terminate the revolving commitments. As of December 31 2021, the Company does not have any outstanding
borrowings under the Credit Agreement.
Junior Subordinated Debentures
The Company has two unconsolidated
Connecticut statutory business trusts, which exist for the exclusive purposes of: (i) issuing trust preferred securities (“Trust Preferred Securities”) representing undivided beneficial interests in the assets of the trusts; (ii) investing the
gross proceeds of the Trust Preferred Securities in junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) of Atlantic American; and (iii) engaging in those activities necessary or incidental thereto. At December
31, 2021, the effective interest rate was 4.22%.
The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2021 and 2020, was as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
The Company has two operating
lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option
through 2026. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate
of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.
These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease
expense reported for each of the years ended December 31, 2021 and 2020 was $1,014.
Additional information regarding the Company’s real estate operating leases is as follows:
The following table presents maturities and present value of the Company’s lease liabilities:
As of December 31, 2021, the Company has no operating leases that have not yet commenced.
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Benefit Plans |
12 Months Ended | ||
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Dec. 31, 2021 | |||
Benefit Plans [Abstract] | |||
Benefit Plans |
Equity Incentive Plan
On May 1, 2012, the Company’s shareholders approved the 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the grant of up to
2,000,000 stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units
and other awards for the purpose of providing the Company’s non-employee directors, consultants, officers and other employees incentives and rewards for superior performance. In 2021, there were no restricted shares issued under the 2012 Plan. In 2020, a total of 20,000
restricted shares, with an estimated fair value of $38, were issued under the 2012 Plan and 35,000 restricted shares, with an estimated fair value of $98,
were forfeited under such plan. The estimated fair value of the restricted shares issued under the 2012 Plan for 2021 and 2020 was based on the common stock price at date of grant. Stock grants are generally issued from treasury shares.
Vesting of restricted shares generally occurs after a to three year period. The Company accounts for forfeitures as they occur. There were no stock options granted or outstanding under the 2012 Plan in 2021 or 2020. Shares available for future grant at December 31, 2021 and 2020 were 935,200 and 935,200, respectively.
401(k) Plan
The Company initiated an employees’ savings plan (the “Plan”) qualified under Section 401(k) of the Internal Revenue Code in May 1995. The Plan
covers substantially all of the Company’s employees. Effective January 1, 2009, the Company modified the Plan such that the Plan would operate on a safe harbor basis. Under the Plan, employees may defer up to 50% of their compensation, not to exceed the annual deferral limit. The Company’s total matching contribution for 2021 and 2020 was $272 and $231, respectively, and
consisted of a contribution equal to 35% of up to the first 6% of each participant’s contributions. In addition to the matching contribution, the Company also provided a 3% safe harbor non-elective contribution in 2021 and 2020 of $549
and $520, respectively. All contributions were made in cash. Participants are 100% vested in their own contributions and the vested
percentage attributable to certain employer contributions is based on a five-year graded schedule.
Agent Stock Purchase Plan
The Company initiated a nonqualified stock purchase plan (the “Agent Stock Purchase Plan”) in May 2012. The purpose of the Agent Stock Purchase
Plan is to promote and advance the interests of the Company and its shareholders by providing independent agents who qualify as participants with an opportunity to purchase the common stock of the Company. Under the Agent Stock Purchase Plan,
payment for shares of common stock of the Company is made by either deduction from an agent’s commission payment or a direct cash payment. Stock purchases are made at the end of each calendar quarter at the then current market value.
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Preferred Stock |
12 Months Ended | ||
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Dec. 31, 2021 | |||
Preferred Stock [Abstract] | |||
Preferred Stock |
The Company had 55,000 shares
of Series D preferred stock (“Series D Preferred Stock”) outstanding at December 31, 2021 and 2020, respectively. All of the shares of Series D Preferred Stock are held by an affiliate of the Company’s controlling shareholder. The outstanding
shares of Series D Preferred Stock have a par value of $1 per share and a redemption value of $100 per share; accrue annual dividends at a rate of $7.25 per share (payable in cash or shares of the Company’s common stock at the option of the board of directors of the Company) and are cumulative. In certain circumstances, the shares of
the Series D Preferred Stock may be convertible into an aggregate of approximately 1,378,000 shares of the Company’s common stock,
subject to certain adjustments and provided that such adjustments do not result in the Company issuing more than approximately 2,703,000
shares of common stock without obtaining prior shareholder approval; and are redeemable solely at the Company’s option. The Series D Preferred Stock is not currently convertible. The Company had accrued, but unpaid, dividends, on the Series D
Preferred Stock of $18 at December 31, 2021 and 2020. During each of 2021 and 2020, the Company paid Series D Preferred Stock
dividends of $399.
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Earnings Per Common Share |
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Earnings Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share |
Basic earnings per share was computed by dividing net income available to common shareholders by the weighted average number of common shares
outstanding during the period. The computation of diluted earnings per share reflected the effect of potentially dilutive securities.
A reconciliation of the numerator and denominator of the income per common share calculations is as follows:
The assumed conversion of the Company’s Series D Preferred Stock was excluded from the earnings per common share calculation for 2021 since its
impact would have been antidilutive.
|
Statutory Reporting |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Reporting |
The assets, liabilities and results of operations have been reported on the basis of GAAP, which varies in some respects from statutory accounting
practices (“SAP”) prescribed or permitted by insurance regulatory authorities. The principal differences between SAP and GAAP are that under SAP: (i) certain assets that are non-admitted assets are eliminated from the balance sheet; (ii)
acquisition costs for policies are expensed as incurred, while they are deferred and amortized over the estimated life of the policies under GAAP; (iii) the provision that is made for deferred income taxes is different than under GAAP; (iv) the
timing of establishing certain reserves is different than under GAAP; and (v) certain valuation allowances attributable to certain investments are different.
The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and
surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:
Under the insurance code of the state in which each insurance subsidiary is domiciled, dividend payments to the Parent by its insurance
subsidiaries are subject to certain limitations without the prior approval of the applicable state’s Insurance Commissioner. The Parent received dividends of $8,400 and $3,900 in the years ended 2021 and 2020, respectively, from its subsidiaries. In 2021,
dividend payments to the Parent by the insurance subsidiaries in excess of $5,629 would require prior approval.
|
Related Party Transactions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions |
In the normal course of business the Company has engaged in transactions with entities affiliated with the controlling shareholder of the Company.
These transactions include the leasing of office space as well as certain investing and financing activities. At December 31, 2021, two
members of the Company’s board of directors, including the Company’s Chairman, President and Chief Executive Officer, were considered to be affiliates of the majority shareholder.
The Company leases approximately 49,586
square feet of office and covered garage space from one such controlled entity. During the years ended December 31, 2021 and 2020, the Company paid $879
and $939, respectively, under this lease. Additionally, in each of the years ended December 31, 2021 and 2020, this entity owned 1,663,809 shares of the Company’s common stock.
Certain financing for the Company has also been provided by this entity in the form of an investment in the Series D Preferred Stock (See Note
11). During the years ended December 31, 2021 and 2020, the Company paid this entity $399 in dividends on the Series D Preferred
Stock.
Certain members of the Company’s management and board of directors are shareholders and on the board of directors of Gray Television, Inc.
(“Gray”). As of December 31, 2021 and 2020, the Company owned 880,272 shares of Gray Class A common stock and 106,000 shares of Gray common stock. The aggregate carrying value of these investments in Gray at December 31, 2021 and 2020 was $18,325 and $16,606, respectively.
In each of the years ended December 31, 2021 and 2020, Gray paid the Company approximately $1,308 in insurance premiums related to certain voluntary employee benefit plans.
|
Segment Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance.
American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income.
Substantially all revenue other than that in the corporate and other segment is from external sources.
|
Commitments and Contingencies |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Commitments and Contingencies [Abstract] | |||
Commitments and Contingencies |
Litigation
From time to time, the Company is, and expects to continue to be, involved in various claims and lawsuits incidental to and in the ordinary course
of its business. In the opinion of management, any such known claims are not expected to have a material effect on the financial condition or results of operations of the Company.
Regulatory matters
Like all domestic insurance companies, the Company’s insurance subsidiaries are subject to regulation and supervision in the jurisdictions in
which they do business. Statutes typically delegate regulatory, supervisory, and administrative powers to state insurance commissioners. From time to time, and in the ordinary course of business, the Company receives notices and inquiries from
state insurance departments with respect to various matters.
In November 2021, the Company was made aware by a state regulatory authority of alleged violations relating to certain sales of insurance
policies and that the Company may be subject to regulatory action, including fines. Management is currently engaged in discussions with the state regulatory authorities with respect to a resolution; however, inasmuch as this matter is of recent
origin, Management is unable at this time to predict the ultimate outcome.
|
Subsequent Events |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
On March 22, 2022, the Company’s
board of directors declared an annual cash dividend of $0.02 per share of common stock that is payable to shareholders of record as of
the close of business on April 13, 2022.
|
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT |
Schedule II
Page 1 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
BALANCE SHEETS
ASSETS
See accompanying report of independent registered public accounting firm.
Schedule II
Page 2 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
STATEMENTS OF OPERATIONS
See accompanying report of independent registered public accounting firm.
Schedule II
Page 3 of 3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)
STATEMENTS OF CASH FLOWS
|
Schedule III SUPPLEMENTARY INSURANCE INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule III SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III SUPPLEMENTARY INSURANCE INFORMATION |
Schedule III
Page 1 of 2
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
See accompanying report of independent registered public accounting firm.
Schedule III
Page 2 of 2
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
|
Schedule IV REINSURANCE INFORMATION |
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Schedule IV REINSURANCE INFORMATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule IV REINSURANCE INFORMATION |
Schedule IV
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES
REINSURANCE INFORMATION
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Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS |
Schedule VI
ATLANTIC AMERICAN CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION CONCERNING
PROPERTY-CASUALTY INSURANCE OPERATIONS
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation |
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United
States of America (“GAAP”) which, for insurance companies, differ in some respects from the statutory accounting practices prescribed or permitted by regulatory authorities. These financial statements include the accounts of Atlantic American
Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. Operating results achieved in any
historical period are not necessarily indicative of results to be expected in any future period.
At December 31, 2021, the Parent owned four
insurance subsidiaries, Bankers Fidelity Life Insurance Company and its wholly-owned subsidiary, Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”), and American Southern Insurance Company and its wholly-owned subsidiary,
American Safety Insurance Company (together known as “American Southern”), in addition to one non-insurance subsidiary, xCalibre Risk
Services, Inc. The Parent has issued a guarantee of all liabilities of Bankers Fidelity.
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Premium Revenue and Cost Recognition |
Premium Revenue and Cost Recognition
Life insurance premiums are recognized as revenue when due; accident and health insurance premiums are recognized as revenue over the premium paying
period and property and casualty insurance premiums are recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. Losses, benefits and expenses are accrued as incurred and are associated
with premiums as they are earned so as to result in recognition of profits over the lives of the contracts. For traditional life insurance and long-duration health insurance, this association is accomplished by the provision of a future policy
benefits reserve and the deferral and subsequent amortization of the costs of acquiring business, which are referred to as “deferred policy acquisition costs” (principally commissions, premium taxes, and other incremental direct costs of issuing
policies). Deferred policy acquisition costs (“DAC”) are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the future policy benefits reserve. The Company provides
for insurance benefits and losses on accident, health, and property-casualty claims based upon estimates of projected ultimate losses. DAC for property and casualty insurance and short-duration health insurance is amortized over the effective
period of the related insurance policies. Contingent commissions, if contractually applicable, are ultimately payable to agents based on the underlying profitability of a particular insurance contract or a group of insurance contracts, and are
periodically evaluated and accrued as earned. In periods in which revisions are made to the estimated loss reserves related to the particular insurance contract or group of insurance contracts subject to such commissions, corresponding adjustments
are also made to the related accruals. DAC is expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for
property and casualty and short-duration health insurance).
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Intangibles |
Intangibles
Intangibles consist of goodwill and other indefinite-lived intangible assets. Goodwill represents the excess of cost over the fair value of net
assets acquired and is not amortized. Other indefinite-lived intangibles represent the value of licenses and are not amortized. The Company periodically reviews its goodwill and other indefinite-lived intangibles to determine if any adverse
conditions exist that could indicate impairment. Conditions that could trigger impairment include, but are not limited to, a significant change in business climate that could affect the value of the related asset, an adverse action, or an
assessment by a regulator. No impairment of the Company’s recorded intangibles was identified during any of the periods presented.
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Investments |
Investments
The Company’s investments in fixed maturities, which include bonds and redeemable preferred stocks, are classified as “available-for-sale” and,
accordingly, are carried at fair value with the after-tax difference from amortized cost, as adjusted if applicable, reflected in shareholders’ equity as a component of accumulated other comprehensive income or loss. The Company’s equity
securities, which include common and non-redeemable preferred stocks, are carried at fair value with changes in fair value reported in net income. The fair values of fixed maturities and equity securities are largely determined from publicly quoted
market prices, when available, or independent broker quotations. As of December 31, 2021, the Company owned a certain equity security in the amount of $157,
with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. As of December 31, 2021, the Company owned a certain fixed maturity in the amount of $250, with a valuation that was derived from techniques in which one or more of the significant inputs are unobservable. Values that are not determined using quoted market
prices inherently involve a greater degree of judgment and uncertainty and therefore ultimately greater price volatility than the value of securities with publicly quoted market prices. Policy loans are carried at unpaid principal balance and real
estate is carried at historical cost. Other invested assets are comprised of investments in limited partnerships and limited liability companies and are accounted for using the equity method. If the value of a fixed maturity security or other
invested asset declines below its cost or amortized cost, as applicable, and the decline is considered to be other than temporary, a realized loss is recorded to reduce the carrying value of the investment to its estimated fair value, which becomes
the new cost basis.
Premiums and discounts related to investments are amortized or accreted over the life of the related investment as an adjustment to yield using the
effective interest method. Dividends and interest income are recognized when earned or declared. The cost of securities sold is based on specific identification. Unrealized gains (losses) in the value of fixed maturities are accounted for as a
direct increase (decrease) in accumulated other comprehensive income in shareholders’ equity, net of deferred tax and, accordingly, have no effect on net income.
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Income Taxes |
Income Taxes
Deferred income taxes represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. They
arise from differences between the financial reporting and tax basis of assets and liabilities and are adjusted for changes in tax laws and tax rates as those changes are enacted. The provision for income taxes represents the total amount of income
taxes due related to the current year, plus the change in deferred income taxes during the year. A valuation allowance is recognized if, based on management’s assessment of the relevant facts, it is more likely than not that some portion of a
deferred tax asset will not be realized.
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Earnings Per Common Share |
Earnings Per Common Share
Basic earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period.
Diluted earnings per common share are based on the weighted average number of common and participating shares outstanding during the relevant period, plus options outstanding, if applicable, using the treasury stock method and the assumed
conversion of the Series D preferred stock, if dilutive. Unless otherwise indicated, earnings per common share amounts are presented on a diluted basis.
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Cash and Cash Equivalents |
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and investments in short-term, highly liquid securities with original maturities of three months
or less from date of purchase.
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Reinsurance |
Reinsurance
The Company enters into reinsurance agreements with other companies in the normal course of business. For each reinsurance agreement, the Company determines if the agreement provides indemnification against loss or
liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and
the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. Reinsurance premiums from assumed business are estimated based on information received from ceding companies and reinsureds. Any subsequent
differences that arise regarding such estimates are recorded in the period in which they are determined.
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Share-Based Transactions |
Share-Based Transactions
For employee and director share-based compensation awards, the Company determines a grant date fair value based on the price of our publicly-traded
common stock and recognize the related compensation expense, adjusted for actual forfeitures, in the consolidated statement of operations on a straight-line basis over the requisite service period for the entire award. For non-employee share-based
compensation awards, the Company recognizes the impact during the period of performance, and the fair value of the award is measured as of the date performance is complete, which is the vesting date.
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Treasury Stock |
Treasury Stock
Treasury stock is reflected as a reduction of shareholders’ equity at cost. The Company uses the first-in-first-out (“FIFO”) purchase cost to
determine the cost of treasury stock that is reissued. The Company includes any gains and losses in additional paid-in capital when treasury stock is reissued.
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Recently Issued Accounting Standards |
Recently Issued Accounting Standards
Adoption of New Accounting Standards
Income Taxes – Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No.
2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This updated guidance is intended to simplify the accounting for income taxes by removing several exceptions contained in existing guidance and amending
other existing guidance to simplify several other income tax accounting matters. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2020, although earlier adoption is permitted. The Company
adopted ASU 2019-12 as of January 1, 2021. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements.
Future Adoption of New Accounting Standards
Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848):
Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to investments, derivatives, or other transactions that reference the London
Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. Along with the optional expedients, the amendments include a general principle that permits an entity to consider contract
modifications due to reference reform to be an event that does not require contract re-measurement at the modification date or reassessment of a previous accounting determination. Additionally, a company may make a one-time election to sell,
transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. This standard may be elected over time
through December 31, 2022 as reference rate reform activities occur. The Company is currently assessing the effect of adopting this guidance on its financial condition and results of operations.
Accounting for Long-Duration Contracts. In August 2018, the FASB issued ASU No. 2018-12, Financial Services
—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”). This guidance (1) improves the timeliness of recognizing changes in the liability for future policy benefits and modifies the rate used to
discount future cash flows, (2) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (3) simplifies the amortization of deferred acquisition costs, and (4)
improves the effectiveness of the required disclosures. ASU 2018-12 is effective for interim and annual reporting periods beginning after December 15, 2024, although earlier adoption is permitted. The Company is currently evaluating the new
guidance, but has not yet determined the method or timing for adoption or estimated the impact on the Company’s consolidated financial statements.
Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments
– Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to measure all expected credit losses for financial instruments (including reinsurance recoverable and policy loans)
held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Under current GAAP, entities generally recognize credit losses when it is probable that the loss has been incurred. ASU 2016-13
will remove all recognition thresholds and will require entities to recognize an allowance for credit losses equal to the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the entity expects
to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale (“AFS”) debt securities and beneficial interests in securitized financial assets. Credit losses on AFS debt
securities carried at fair value will continue to be measured as an other than temporary impairment (“OTTI”) when incurred; however, the losses will be recognized through an allowance and no longer as an adjustment to the cost basis. Recoveries of
OTTI will be recognized as reversals of valuation allowances and no longer accreted as investment income through an adjustment to the investment yield. The allowance on AFS debt securities cannot cause the net carrying value to be below fair value
and, therefore, it is possible that increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance will also require purchased financial assets with a
more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase. For the Company, the amendments in ASU 2016-13 will be
effective for interim and annual reporting periods beginning after December 15, 2022. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt on
January 1, 2023. Implementation matters yet to be addressed include determining the impact of valuation allowances on the effective interest method for recognizing interest income from AFS debt securities as well as updating our investment
accounting system functionality to adjust valuation allowances based on changes in fair value. The estimated effect on the Company’s consolidated financial statements can only be estimated based on the current investment portfolio at any given
point in time, and accordingly, has not currently been determined.
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Use of Estimates in the Preparation of Financial Statements |
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Significant estimates and assumptions are used
in developing and evaluating deferred income taxes, deferred acquisition costs, insurance reserves, investments, and receivables, among others, and actual results could differ materially from management’s estimates.
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Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Aggregated by Type and Industry |
Fixed maturities were comprised of the following:
Bonds having an amortized cost of $11,169
and $10,670 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2021 and 2020,
respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $5,371 and $1,997 and included in the tables above were pledged as collateral to FHLB at December 31, 2021 and 2020, respectively.
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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 December 31, 2021 and 2020 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.
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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 December 31, 2021 and 2020.
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Investment Income Earned |
Investment income was earned from the following sources:
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Summary of Realized Investment Gains (Losses) |
A summary of realized investment gains (losses) follows:
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Proceeds from Sales of Investments |
Proceeds from the sales of available-for-sale fixed maturities were as follows:
Proceeds from the sales of equity securities were as follows:
Proceeds from the sales of other invested assets were as follows:
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Unrealized Gains (Losses) on Equity Securities |
The following table presents the portion of unrealized gains (losses) related to equity securities still held for the years ended December 31,
2021 and 2020.
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Disclosures About Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Carried at Fair Value Measured on a Recurring Basis |
As of December 31, 2021, financial instruments carried at fair value were measured on a recurring basis as summarized below:
As of December 31, 2020, financial instruments carried at fair value were measured on a recurring basis as summarized below:
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Carrying Amount, Estimated Fair Value and Level within the Fair Value Hierarchy of Financial Instruments |
The following table sets forth the carrying amount, estimated fair value and level within the fair value hierarchy of the Company’s financial
instruments as of December 31, 2021 and 2020.
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Deferred Policy Acquisition Costs (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs by Segment |
The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.
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Insurance Reserves and Policyholder Funds (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves for Life, Accident, Health and Property and Casualty Losses, Including Loss Adjustment Expenses |
The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment
expenses at December 31, 2021 and 2020.
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Summary of Activity in Liabilities for Unpaid Loss and Claim Reserved |
Activity in the liability for unpaid loss and claim reserves is summarized as follows:
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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:
|
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Supplementary Information about Average Historical Claims Duration |
The following is supplementary information about average historical claims duration as of December 31, 2021.
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Reconciliation of Net Incurred and Paid Claims Development |
The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as
follows:
|
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Medicare Supplement [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Incurred and Paid Claims Development |
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
Medicare Supplement
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile Liability [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Incurred and Paid Claims Development |
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
Automobile Liability
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile Physical Damage [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Incurred and Paid Claims Development |
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
Automobile Physical Damage
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Liability [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Incurred and Paid Claims Development |
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
General Liability
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Surety [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Reserves and Policyholder Funds [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Incurred and Paid Claims Development |
The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2021, net of
reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December
31, 2015 and prior is presented as supplementary information and is unaudited.
Surety
|
Reinsurance (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Reinsurance on Premiums Written, Premiums Earned and Insurance Benefits and Losses Incurred |
The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:
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Components of Reinsurance Recoverables |
Components of reinsurance receivables at December 31, 2021 and 2020 were as follows:
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Income Taxes (Tables) |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Total Income Taxes |
Total income taxes were allocated as follows:
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Reconciliation of Income Tax Expense (Benefit) |
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax benefit is as
follows:
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Deferred Tax Liabilities and Assets |
Deferred tax assets and liabilities at December 31, 2021 and 2020 were comprised of the following:
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Components of Income Tax Expense |
The components of income tax expense were:
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Credit Arrangements (Tables) |
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Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Structure of Statutory Business Trusts |
The financial structure of each of Atlantic American Statutory Trust I and II, as of December 31, 2021 and 2020, was as follows:
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Leases (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information of Operating Leases |
Additional information regarding the Company’s real estate operating leases is as follows:
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Maturities and Present Value of Lease Liabilities |
The following table presents maturities and present value of the Company’s lease liabilities:
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Earnings Per Common Share (Tables) |
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Earnings Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerator and Denominator used in Earnings per Common Share Calculations |
A reconciliation of the numerator and denominator of the income per common share calculations is as follows:
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Statutory Reporting (Tables) |
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Statutory Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported Statutory Net Income and Surplus for the Parent's Insurance Subsidiaries |
The Company meets the minimum capital requirements in the states in which it does business. The amount of reported statutory net income and
surplus (shareholders’ equity) for the Parent’s insurance subsidiaries for the years ended December 31 was as follows:
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Segment Information (Tables) |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets, Revenue Loss Before Income Taxes for Each Business Unit |
The Parent’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance.
American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each segment derives revenue from the collection of premiums, as well as from investment income.
Substantially all revenue other than that in the corporate and other segment is from external sources.
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Summary of Significant Accounting Policies, Principles of Consolidation (Details) |
12 Months Ended |
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Dec. 31, 2021
Subsidiary
| |
Principles of Consolidation [Abstract] | |
Number of insurance subsidiaries owned by the parent | 4 |
Number of non-insurance subsidiaries owned by the parent | 1 |
Summary of Significant Accounting Policies, Intangibles (Details) $ in Thousands |
12 Months Ended |
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Dec. 31, 2021
USD ($)
| |
Intangibles [Abstract] | |
Impairment of intangible assets | $ 0 |
Summary of Significant Accounting Policies, Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Investments: | ||
Equity securities | $ 19,124 | $ 18,716 |
Fixed maturities | 260,986 | 254,106 |
Recurring [Member] | ||
Investments: | ||
Equity securities | 19,124 | 18,716 |
Fixed maturities | 260,986 | 254,106 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Investments: | ||
Equity securities | 157 | 143 |
Fixed maturities | $ 250 | $ 0 |
Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Carrying Value [Abstract] | ||
Due in one year or less | $ 1,734 | $ 2,041 |
Due after one year through five years | 24,926 | 18,373 |
Due after five years through ten years | 73,725 | 89,892 |
Due after ten years | 122,045 | 124,609 |
Asset backed securities | 38,556 | 19,191 |
Carrying value total | 260,986 | 254,106 |
Amortized Cost [Abstract] | ||
Due in one year or less | 1,730 | 2,015 |
Due after one year through five years | 23,593 | 17,039 |
Due after five years through ten years | 68,338 | 79,993 |
Due after ten years | 106,181 | 104,527 |
Asset backed securities | 38,755 | 18,887 |
Amortized cost total | $ 238,597 | $ 222,461 |
Investments, Income Earned (Details) - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Investment income earned [Abstract] | ||
Gross investment income | $ 8,829 | $ 7,999 |
Investment expenses | 301 | 255 |
Net investment income | 8,528 | 7,744 |
Fixed Maturities [Member] | ||
Investment income earned [Abstract] | ||
Gross investment income | 8,640 | 8,646 |
Equity Securities [Member] | ||
Investment income earned [Abstract] | ||
Gross investment income | 300 | 141 |
Other [Member] | ||
Investment income earned [Abstract] | ||
Gross investment loss | $ (111) | $ (788) |
Investments, Unrealized Gains (Losses) Related to Equity Securities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Investments [Abstract] | ||
Net realized and unrealized gains (losses) recognized during the period on equity securities | $ 1,894 | $ (3,344) |
Less: Net realized gains recognized during the period on equity securities sold during the period | 0 | 87 |
Unrealized gains (losses) on equity securities, net | $ 1,894 | $ (3,431) |
Percentage of investment grade securities in bond portfolio | 99.00% |
Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Variable Interest Entities [Abstract] | ||
Carrying amount of interest | $ 198 | $ 3,238 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
VIE, Not Primary Beneficiary [Member] | Other Invested Assets [Member] | ||
Variable Interest Entities [Abstract] | ||
Carrying amount of interest | 198 | 3,238 |
Investment in unconsolidated trusts | 1,238 | 1,238 |
Maximum loss exposure | 1,436 | 4,476 |
Outstanding commitments | $ 1,997 | $ 1,997 |
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
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Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | $ 39,611 | |
Amortization | (24,064) | $ (19,393) |
Balance, end of year | 38,698 | 39,611 |
American Southern [Member] | ||
Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | 2,299 | 1,979 |
Capitalization | 10,690 | 9,910 |
Amortization | (10,599) | (9,590) |
Balance, end of year | 2,390 | 2,299 |
Bankers Fidelity [Member] | ||
Deferred policy acquisition costs [Roll Forward] | ||
Balance, beginning of year | 37,312 | 36,882 |
Capitalization | 12,461 | 10,233 |
Amortization | (13,465) | (9,803) |
Balance, end of year | $ 36,308 | $ 37,312 |
Insurance Reserves and Policyholder Funds, Future Policy Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Reserves for life, accident and health [Abstract] | ||||||||
Future policy benefits | $ 87,348 | $ 90,872 | ||||||
Amount of insurance in force, net | 406,993 | 283,360 | ||||||
Unearned premiums | 27,469 | 27,131 | ||||||
Losses, claims and loss adjustment expenses | 85,620 | 79,147 | ||||||
Other policy liabilities | 1,360 | 1,526 | ||||||
Total insurance reserves and policyholder funds | 201,797 | 198,676 | ||||||
Annualized premiums for accident and health insurance policies | 101,315 | 109,430 | ||||||
Summary of activity in liability for unpaid loss and claim reserves [Roll Forward] | ||||||||
Balance at January 1 | 79,147 | 81,448 | ||||||
Less: Reinsurance recoverable on unpaid losses | (17,600) | (18,339) | ||||||
Net balance at January 1 | 61,547 | 63,109 | ||||||
Incurred related to [Abstract] | ||||||||
Current year | 134,284 | 122,626 | ||||||
Prior years | (3,415) | [1] | (3,480) | [2] | ||||
Total incurred | 130,869 | 119,146 | ||||||
Paid related to [Abstract] | ||||||||
Current year | 89,838 | 84,518 | ||||||
Prior years | 34,648 | 36,190 | ||||||
Total paid | 124,486 | 120,708 | ||||||
Net balance at December 31 | 67,930 | 61,547 | ||||||
Plus: Reinsurance recoverable on unpaid losses | 17,690 | 17,600 | ||||||
Balance at December 31 | 85,620 | 79,147 | ||||||
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract] | ||||||||
Total incurred losses | 130,869 | 119,146 | ||||||
Cash surrender value and matured endowments | 2,179 | 1,198 | ||||||
Benefit reserve changes | (1,354) | (468) | ||||||
Total insurance benefits and losses incurred | 131,694 | 119,876 | ||||||
Ordinary Life and Annuities [Member] | ||||||||
Reserves for life, accident and health [Abstract] | ||||||||
Future policy benefits | 51,947 | 54,442 | ||||||
Amount of insurance in force, net | 194,210 | 199,827 | ||||||
Group Life [Member] | ||||||||
Reserves for life, accident and health [Abstract] | ||||||||
Future policy benefits | 1,094 | 91 | ||||||
Amount of insurance in force, net | 212,783 | 83,533 | ||||||
Life Insurance Segment [Member] | ||||||||
Reserves for life, accident and health [Abstract] | ||||||||
Future policy benefits | 53,041 | 54,533 | ||||||
Amount of insurance in force, net | 406,993 | 283,360 | ||||||
Accident and Health Insurance [Member] | ||||||||
Reserves for life, accident and health [Abstract] | ||||||||
Future policy benefits | $ 34,307 | $ 36,339 | ||||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Policy issue range for future benefits assumptions | prior to 1977 | |||||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Minimum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 2.50% | |||||||
Life, Accident and Health Insurance [Member] | Prior to 1977 [Member] | Maximum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 5.50% | |||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Policy issue range for future benefits assumptions | 1977 through 1979 | |||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Minimum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 5.50% | |||||||
Life, Accident and Health Insurance [Member] | 1977 through 1979 [Member] | Maximum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 7.00% | |||||||
Life, Accident and Health Insurance [Member] | 1980 through 1987 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 9.00% | |||||||
Policy issue range for future benefits assumptions | 1980 through 1987 | |||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Policy issue range for future benefits assumptions | 1988 through 2009 | |||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Minimum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 5.00% | |||||||
Life, Accident and Health Insurance [Member] | 1988 through 2009 [Member] | Maximum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 7.00% | |||||||
Life, Accident and Health Insurance [Member] | 2010 through 2012 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 4.00% | |||||||
Policy issue range for future benefits assumptions | 2010 through 2012 | |||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Policy issue range for future benefits assumptions | 2013 through 2020 | |||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Minimum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 3.50% | |||||||
Life, Accident and Health Insurance [Member] | 2013 through 2020 [Member] | Maximum [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 4.00% | |||||||
Life, Accident and Health Insurance [Member] | 2021 [Member] | ||||||||
Future policy benefits [Abstract] | ||||||||
Interest rates assumed for future policy benefits | 3.00% | |||||||
Policy issue range for future benefits assumptions | 2021 | |||||||
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Insurance Reserves and Policyholder Funds, Liability for Unpaid Losses, Claims and Loss Adjustment Expenses (Details) $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021
USD ($)
Claim
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Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
|
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ 65,773 | |||||||||
Duration required for loss data to develop the estimated ultimate incurred claims | 36 months | |||||||||
Minimum [Member] | ||||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Property and casualty claim threshold amount required for review | $ 25,000 | |||||||||
Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 661,140 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 645,871 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 15,269 | |||||||||
Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 223,695 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 183,908 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 39,787 | |||||||||
Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 45,580 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 43,144 | |||||||||
All outstanding liabilities prior period net of reinsurance | 12 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 2,448 | |||||||||
General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 8,768 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 6,007 | |||||||||
All outstanding liabilities prior period net of reinsurance | 519 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 3,280 | |||||||||
Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,123 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | 18,817 | |||||||||
All outstanding liabilities prior period net of reinsurance | 85 | |||||||||
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | 3,391 | |||||||||
Accident Year 2012 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 50,984 | $ 50,984 | $ 50,984 | $ 50,985 | $ 50,987 | $ 50,989 | $ 50,998 | $ 51,021 | $ 50,996 | $ 50,021 |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 867,053 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 50,984 | 50,984 | 50,984 | 50,985 | 50,987 | 50,989 | 50,998 | 51,021 | 50,996 | 42,267 |
Accident Year 2012 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 13,366 | 13,373 | 13,373 | 13,357 | 13,343 | 13,313 | 13,707 | 14,108 | 15,007 | 12,980 |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 2,349 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 13,365 | 13,373 | 13,373 | 13,288 | 13,211 | 13,197 | 12,932 | 11,507 | 8,791 | 4,627 |
Accident Year 2012 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,349 | 1,388 | 1,377 | 1,344 | 1,333 | 1,214 | 1,270 | 1,269 | 1,305 | 4,055 |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 162 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,349 | 1,280 | 1,269 | 1,260 | 1,219 | 1,113 | 1,034 | 847 | 707 | 371 |
Accident Year 2012 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 4,993 | 4,944 | 4,925 | 4,892 | 4,880 | 4,869 | 5,345 | 5,396 | 4,767 | 4,979 |
IBNR Reserves | $ 1 | |||||||||
Cumulative number of reported claims | Claim | 90 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 4,985 | 4,934 | 4,916 | 4,878 | 4,880 | 4,869 | 5,331 | 4,856 | 4,581 | $ 2,257 |
Accident Year 2013 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 57,014 | 57,014 | 57,015 | 57,016 | 57,021 | 57,023 | 57,034 | 56,970 | 56,974 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 957,374 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 57,015 | 57,014 | 57,015 | 57,016 | 57,021 | 57,023 | 57,034 | 56,970 | 47,770 | |
Accident Year 2013 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 20,970 | 20,972 | 20,972 | 21,020 | 21,352 | 21,823 | 21,096 | 20,702 | 18,664 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 3,270 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 20,970 | 20,972 | 20,972 | 20,982 | 20,382 | 19,407 | 16,782 | 12,193 | 5,144 | |
Accident Year 2013 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 868 | 904 | 945 | 820 | 865 | 817 | 926 | 728 | 3,461 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 198 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 867 | 855 | 805 | 803 | 791 | 811 | 579 | 339 | 104 | |
Accident Year 2013 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,753 | 2,757 | 2,765 | 2,809 | 2,866 | 2,947 | 2,743 | 2,007 | 3,060 | |
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 60 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 2,753 | 2,757 | 2,765 | 2,749 | 2,789 | 2,763 | 1,369 | 1,010 | $ 323 | |
Accident Year 2014 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 56,976 | 56,976 | 56,977 | 56,976 | 56,981 | 56,981 | 56,938 | 57,179 | ||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 939,488 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 56,976 | 56,976 | 56,977 | 56,976 | 56,981 | 56,981 | 56,938 | 48,024 | ||
Accident Year 2014 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,125 | 22,100 | 22,080 | 21,682 | 22,353 | 22,041 | 21,881 | 20,812 | ||
IBNR Reserves | $ 56 | |||||||||
Cumulative number of reported claims | Claim | 3,545 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 21,786 | 21,813 | 21,735 | 20,878 | 20,177 | 17,554 | 13,807 | 6,822 | ||
Accident Year 2014 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 519 | 523 | 497 | 406 | 476 | 557 | 501 | 3,744 | ||
IBNR Reserves | $ 4 | |||||||||
Cumulative number of reported claims | Claim | 199 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 502 | 498 | 493 | 373 | 369 | 331 | 299 | 171 | ||
Accident Year 2014 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,782 | 2,818 | 2,617 | 2,685 | 2,760 | 2,990 | 3,130 | 3,214 | ||
IBNR Reserves | $ 37 | |||||||||
Cumulative number of reported claims | Claim | 54 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 2,562 | 2,562 | 2,593 | 2,664 | 2,739 | 2,727 | 2,327 | $ 1,331 | ||
Accident Year 2015 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 54,985 | 54,985 | 54,984 | 54,990 | 54,993 | 54,939 | 55,482 | |||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 898,393 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 54,985 | 54,985 | 54,984 | 54,990 | 54,993 | 54,876 | 45,430 | |||
Accident Year 2015 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 20,849 | 20,680 | 20,086 | 20,007 | 20,017 | 19,857 | 18,521 | |||
IBNR Reserves | $ 21 | |||||||||
Cumulative number of reported claims | Claim | 3,530 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 20,726 | 20,234 | 19,557 | 17,612 | 14,938 | 11,878 | 6,226 | |||
Accident Year 2015 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 855 | 855 | 867 | 1,044 | 1,227 | 1,037 | 4,421 | |||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 146 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 855 | 855 | 863 | 664 | 464 | 259 | 98 | |||
Accident Year 2015 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,307 | 1,310 | 1,406 | 1,359 | 1,400 | 1,630 | 1,902 | |||
IBNR Reserves | $ 5 | |||||||||
Cumulative number of reported claims | Claim | 50 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,273 | 1,271 | 1,128 | 1,125 | 1,127 | 856 | $ 641 | |||
Accident Year 2016 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 63,221 | 63,221 | 63,225 | 63,226 | 59,851 | 58,849 | ||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,036,917 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 63,221 | 63,221 | 63,225 | 63,226 | 59,747 | 49,165 | ||||
Accident Year 2016 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 22,310 | 22,245 | 22,388 | 21,846 | 21,275 | 20,549 | ||||
IBNR Reserves | $ 84 | |||||||||
Cumulative number of reported claims | Claim | 3,852 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 21,809 | 21,408 | 19,613 | 16,397 | 13,141 | 6,796 | ||||
Accident Year 2016 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 619 | 621 | 608 | 736 | 1,148 | 3,119 | ||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 93 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 619 | 617 | 608 | 568 | 203 | 116 | ||||
Accident Year 2016 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 1,678 | 1,865 | 1,876 | 1,865 | 1,812 | 3,314 | ||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 47 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 1,677 | 1,862 | 1,873 | 1,772 | 1,732 | $ 1,054 | ||||
Accident Year 2017 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 69,633 | 69,635 | 69,643 | 69,655 | 67,960 | |||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,512,362 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 69,633 | 69,635 | 69,643 | 69,517 | 57,696 | |||||
Accident Year 2017 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 26,009 | 25,180 | 23,766 | 24,212 | 22,179 | |||||
IBNR Reserves | $ 164 | |||||||||
Cumulative number of reported claims | Claim | 3,793 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 25,023 | 22,778 | 20,221 | 16,317 | 7,401 | |||||
Accident Year 2017 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 5,860 | 5,860 | 5,857 | 5,933 | 6,257 | |||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,324 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 5,860 | 5,860 | 5,856 | 5,914 | 5,215 | |||||
Accident Year 2017 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 738 | 738 | 513 | 488 | 1,490 | |||||
IBNR Reserves | $ 10 | |||||||||
Cumulative number of reported claims | Claim | 83 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 696 | 556 | 365 | 136 | 75 | |||||
Accident Year 2017 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 3,514 | 3,629 | 3,799 | 3,671 | 4,677 | |||||
IBNR Reserves | $ 12 | |||||||||
Cumulative number of reported claims | Claim | 63 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 3,442 | 3,545 | 3,523 | 3,255 | $ 1,971 | |||||
Accident Year 2018 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 80,357 | 80,361 | 80,404 | 79,140 | ||||||
IBNR Reserves | $ 2 | |||||||||
Cumulative number of reported claims | Claim | 2,051,656 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 80,355 | 80,361 | 80,222 | 66,565 | ||||||
Accident Year 2018 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 30,013 | 27,338 | 25,682 | 24,284 | ||||||
IBNR Reserves | $ 1,784 | |||||||||
Cumulative number of reported claims | Claim | 3,629 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 24,662 | 21,121 | 15,647 | 6,989 | ||||||
Accident Year 2018 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 7,430 | 7,447 | 7,530 | 7,805 | ||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 1,455 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 7,433 | 7,446 | 7,510 | 6,344 | ||||||
Accident Year 2018 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 128 | 198 | 333 | 1,656 | ||||||
IBNR Reserves | $ 0 | |||||||||
Cumulative number of reported claims | Claim | 75 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 128 | 115 | 90 | 65 | ||||||
Accident Year 2018 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 956 | 1,381 | 1,938 | 3,528 | ||||||
IBNR Reserves | $ 3 | |||||||||
Cumulative number of reported claims | Claim | 63 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 941 | 1,361 | 1,454 | $ 1,157 | ||||||
Accident Year 2019 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 86,988 | 87,028 | 88,765 | |||||||
IBNR Reserves | $ 10 | |||||||||
Cumulative number of reported claims | Claim | 2,244,326 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 86,978 | 86,856 | 72,333 | |||||||
Accident Year 2019 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 25,724 | 24,045 | 25,241 | |||||||
IBNR Reserves | $ 2,113 | |||||||||
Cumulative number of reported claims | Claim | 3,573 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 19,384 | 14,694 | 7,305 | |||||||
Accident Year 2019 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 7,914 | 8,026 | 8,526 | |||||||
IBNR Reserves | $ 1 | |||||||||
Cumulative number of reported claims | Claim | 1,486 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 7,906 | 8,005 | 6,360 | |||||||
Accident Year 2019 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 455 | 707 | 1,916 | |||||||
IBNR Reserves | $ 101 | |||||||||
Cumulative number of reported claims | Claim | 85 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 242 | 209 | 41 | |||||||
Accident Year 2019 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 630 | 657 | 2,130 | |||||||
IBNR Reserves | $ 17 | |||||||||
Cumulative number of reported claims | Claim | 30 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 568 | 395 | 259 | |||||||
Accident Year 2020 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 75,715 | $ 75,857 | ||||||||
IBNR Reserves | $ 188 | |||||||||
Cumulative number of reported claims | Claim | 1,848,987 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 75,527 | 63,129 | ||||||||
Accident Year 2020 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 16,442 | 22,416 | ||||||||
IBNR Reserves | $ 2,167 | |||||||||
Cumulative number of reported claims | Claim | 2,438 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 9,941 | 5,172 | ||||||||
Accident Year 2020 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 10,080 | 10,288 | ||||||||
IBNR Reserves | $ 16 | |||||||||
Cumulative number of reported claims | Claim | 1,629 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 9,952 | 8,347 | ||||||||
Accident Year 2020 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 670 | 2,223 | ||||||||
IBNR Reserves | $ 150 | |||||||||
Cumulative number of reported claims | Claim | 87 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 385 | 208 | ||||||||
Accident Year 2020 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 574 | 2,263 | ||||||||
IBNR Reserves | $ 56 | |||||||||
Cumulative number of reported claims | Claim | 23 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 460 | $ 97 | ||||||||
Accident Year 2021 [Member] | Medicare Supplement [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 65,267 | |||||||||
IBNR Reserves | $ 15,070 | |||||||||
Cumulative number of reported claims | Claim | 1,560,365 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 50,197 | |||||||||
Accident Year 2021 [Member] | Automobile Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 25,887 | |||||||||
IBNR Reserves | $ 13,147 | |||||||||
Cumulative number of reported claims | Claim | 2,422 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 6,242 | |||||||||
Accident Year 2021 [Member] | Automobile Physical Damage [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 14,296 | |||||||||
IBNR Reserves | $ 227 | |||||||||
Cumulative number of reported claims | Claim | 1,748 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 11,993 | |||||||||
Accident Year 2021 [Member] | General Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,567 | |||||||||
IBNR Reserves | $ 1,746 | |||||||||
Cumulative number of reported claims | Claim | 59 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 364 | |||||||||
Accident Year 2021 [Member] | Surety [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred losses, claims and allocated loss adjustment expenses, net of reinsurance | 2,936 | |||||||||
IBNR Reserves | $ 1,948 | |||||||||
Cumulative number of reported claims | Claim | 27 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid losses, claims and allocated loss adjustment expense, net of reinsurance | $ 156 |
Insurance Reserves and Policyholder Funds, Average Historical Claims Duration (Details) |
Dec. 31, 2021 |
---|---|
Medicare Supplement [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 82.40% |
2nd Year | 16.80% |
3rd Year | 0.10% |
4th Year | 0.00% |
5th Year | 0.00% |
6th Year | 0.00% |
7th Year | 0.00% |
8th Year | 0.00% |
9th Year | 0.00% |
10th Year | 0.00% |
Automobile Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 28.60% |
2nd Year | 30.30% |
3rd Year | 17.50% |
4th Year | 12.00% |
5th Year | 6.00% |
6th Year | 2.40% |
7th Year | 0.80% |
8th Year | 0.20% |
9th Year | 0.00% |
10th Year | (0.10%) |
Automobile Physical Damage [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 84.30% |
2nd Year | 16.10% |
3rd Year | (1.00%) |
4th Year | (0.10%) |
5th Year | 0.00% |
6th Year | 0.00% |
7th Year | 0.00% |
8th Year | 0.00% |
9th Year | 0.00% |
10th Year | 0.00% |
General Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 21.80% |
2nd Year | 22.30% |
3rd Year | 23.10% |
4th Year | 16.30% |
5th Year | 8.00% |
6th Year | 6.30% |
7th Year | 1.10% |
8th Year | 2.40% |
9th Year | 1.10% |
10th Year | 5.10% |
Surety [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (unaudited) [Abstract] | |
1st Year | 45.70% |
2nd Year | 35.20% |
3rd Year | 10.20% |
4th Year | 3.30% |
5th Year | (2.40%) |
6th Year | (0.80%) |
7th Year | (0.10%) |
8th Year | 0.20% |
9th Year | 0.10% |
10th Year | 1.00% |
Insurance Reserves and Policyholder Funds, Incurred Paid Claims Reconciliation (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | $ 65,773 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 17,690 | $ 17,600 | |
Unallocated claims adjustment expenses | 2,157 | ||
Total gross liability for unpaid losses, claims and loss adjustment expenses | 85,620 | $ 79,147 | $ 81,448 |
Medicare Supplement [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 15,269 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 10,753 | ||
Automobile Liability [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 39,787 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 4,506 | ||
Automobile Physical Damage [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 2,448 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 274 | ||
General Liability [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 3,280 | ||
Reinsurance recoverable on unpaid losses [Abstract] | |||
Total reinsurance recoverable on unpaid losses | 2,157 | ||
Surety [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | 3,391 | ||
Other Short-Duration Insurance Lines [Member] | |||
Net outstanding liabilities [Abstract] | |||
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance | $ 1,598 |
Reinsurance (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reconciliation of premiums written, premiums earned and insurance benefits and losses [Abstract] | ||
Direct premiums written | $ 236,682 | $ 239,687 |
Assumed premiums written | 22,111 | 23,253 |
Ceded premiums written | (73,521) | (77,622) |
Net premiums written | 185,272 | 185,318 |
Direct premiums earned | 235,806 | 238,209 |
Assumed premiums earned | 22,076 | 23,144 |
Ceded premiums earned | (73,666) | (77,814) |
Net premiums earned | 184,216 | 183,539 |
Provision for benefits and losses incurred | 190,591 | 175,825 |
Reinsurance loss recoveries | (58,897) | (55,949) |
Total insurance benefits and losses incurred | 131,694 | 119,876 |
Components of reinsurance recoverables [Abstract] | ||
Recoverable on unpaid losses | 17,690 | 17,600 |
Recoverable on unpaid benefits | 8,169 | 9,832 |
Recoverable on paid losses | 499 | 447 |
Ceded unearned premiums | 819 | 963 |
Ceded advanced premiums | 239 | 244 |
Total reinsurance receivables | $ 27,416 | $ 29,086 |
General Re Life Corporation [Member] | Reinsurance Recoverable [Member] | Reinsurer Concentration Risk [Member] | ||
Reinsurance Recoverables [Abstract] | ||
Percentage of reinsurance recoverables due from reinsurers | 99.60% | |
Reinsurance recoverables due | $ 27,310 |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Allocation of total income taxes [Abstract] | ||
Total tax expense on income | $ 1,021 | $ 3,334 |
Tax expense on components of shareholders' equity [Abstract] | ||
Net unrealized gains (losses) on investment securities | (1,944) | 3,865 |
Total tax expense (benefit) | (923) | 7,199 |
Reconciliation of income tax expense (benefit) [Abstract] | ||
Federal income tax provision | $ 1,112 | $ 3,256 |
Statutory rate | 21.00% | 21.00% |
Dividends-received deduction | $ (26) | $ (12) |
Meals and entertainment | 32 | 20 |
Vested stock and club dues | (28) | 36 |
Parking disallowance | 16 | 16 |
Adjustment for prior years' estimates to actual | (85) | 18 |
Income tax expense | $ 1,021 | $ 3,334 |
Effective tax rate | 19.30% | 21.50% |
Deferred tax assets [Abstract] | ||
Deferred acquisition costs | $ 7,026 | $ 4,666 |
Insurance reserves | 2,028 | 2,682 |
Impaired assets | 780 | 822 |
Bad debts and other | 280 | 326 |
Total deferred tax assets | 10,114 | 8,496 |
Deferred tax liabilities [Abstract] | ||
Deferred and uncollected premiums | (561) | (409) |
Net unrealized investment gains | (7,689) | (9,235) |
Other | (109) | (153) |
Total deferred tax liabilities | (8,359) | (9,797) |
Net deferred tax asset (liability) | 1,755 | |
Net deferred tax (liability) | (1,301) | |
Components of income tax expense [Abstract] | ||
Current - Federal | 2,133 | 5,584 |
Deferred - Federal | (1,112) | (2,250) |
Income tax expense | $ 1,021 | $ 3,334 |
Open tax years | 2018 2019 2020 |
Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member] |
12 Months Ended | |
---|---|---|
May 12, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Bank Debt [Abstract] | ||
Unsecured credit facility | $ 10,000,000 | |
Maturity date | Apr. 12, 2024 | |
Outstanding borrowings | $ 0 | |
Minimum [Member] | ||
Bank Debt [Abstract] | ||
Indebtedness capital ratio | 0.35 | |
LIBOR [Member] | ||
Bank Debt [Abstract] | ||
Basis spread on variable rate | 2.00% | |
Interest rate floor | 1.00% |
Credit Arrangements, Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021
USD ($)
Trust
Quarter
$ / shares
shares
| ||||||||||
Debt Instruments [Abstract] | ||||||||||
Number of Connecticut statutory business trusts | Trust | 2 | |||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Net balance December 31, 2021 | $ 33,738 | |||||||||
Net balance December 31, 2020 | $ 33,738 | |||||||||
Junior Subordinated Debentures [Member] | ||||||||||
Debt Instruments [Abstract] | ||||||||||
Debt instrument, effective interest rate percentage | 4.22% | |||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Number of consecutive quarters for which interest payments can be deferred | Quarter | 20 | |||||||||
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Balance December 31, 2021 | $ 18,042 | [1],[2] | ||||||||
Less: Treasury debt | 0 | [1],[2],[3] | ||||||||
Net balance December 31, 2021 | 18,042 | [1],[2] | ||||||||
Net balance December 31, 2020 | $ 18,042 | [1],[2] | ||||||||
Coupon rate | LIBOR + 4.00% | [1],[2] | ||||||||
Interest payable | Quarterly | [1],[2] | ||||||||
Maturity date | Dec. 04, 2032 | [1],[2] | ||||||||
Redeemable by issuer | Yes | [1],[2] | ||||||||
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Basis spread on variable rate | 4.00% | |||||||||
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Coupon rate | LIBOR + 4.00% | |||||||||
Issuance date | Dec. 04, 2002 | |||||||||
Securities issued (in shares) | shares | 17,500 | |||||||||
Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |||||||||
Liquidation value | $ 17,500 | |||||||||
Distribution payable | Quarterly | |||||||||
Distribution guaranteed by | Atlantic American Corporation | [4] | ||||||||
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Basis spread on variable rate | 4.00% | |||||||||
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Balance December 31, 2021 | $ 23,196 | [1],[2] | ||||||||
Less: Treasury debt | (7,500) | [1],[2],[3] | ||||||||
Net balance December 31, 2021 | 15,696 | [1],[2] | ||||||||
Net balance December 31, 2020 | $ 15,696 | [1],[2] | ||||||||
Coupon rate | LIBOR + 4.10% | [1],[2] | ||||||||
Interest payable | Quarterly | [1],[2] | ||||||||
Maturity date | May 15, 2033 | [1],[2] | ||||||||
Redeemable by issuer | Yes | [1],[2] | ||||||||
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Basis spread on variable rate | 4.10% | |||||||||
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Coupon rate | LIBOR + 4.10% | |||||||||
Issuance date | May 15, 2003 | |||||||||
Securities issued (in shares) | shares | 22,500 | |||||||||
Liquidation preference per security (in dollars per share) | $ / shares | $ 1 | |||||||||
Liquidation value | $ 22,500 | |||||||||
Distribution payable | Quarterly | |||||||||
Distribution guaranteed by | Atlantic American Corporation | [4] | ||||||||
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | LIBOR [Member] | ||||||||||
Financial structure of statutory business trusts [Abstract] | ||||||||||
Basis spread on variable rate | 4.10% | |||||||||
|
Leases (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Lease
|
Dec. 31, 2020
USD ($)
|
|
Lease description [Abstract] | ||
Number of operating lease agreements | Lease | 2 | |
Lease expense | $ 1,014 | $ 1,014 |
Other information on operating leases [Abstract] | ||
Cash payments included in the measurement of lease liabilities reported in operating cash flows | 1,015 | 978 |
Right-of-use assets included in other assets on the consolidated balance sheet | $ 4,143 | $ 4,832 |
Weighted average discount rate | 6.80% | 6.80% |
Weighted average remaining lease term in years | 4 years 10 months 24 days | 5 years 10 months 24 days |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Maturities and present value of lease liabilities [Abstract] | ||
2022 | $ 1,031 | |
2023 | 1,048 | |
2024 | 1,065 | |
2025 | 1,083 | |
2026 | 942 | |
Thereafter | 0 | |
Total undiscounted lease payments | 5,169 | |
Less: present value adjustment | 791 | |
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet | $ 4,378 | |
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 |
Benefit Plans, Equity Incentive Plan (Details) - 2012 Plan [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share Awards [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Number of shares authorized for issuance (in shares) | 2,000,000 | |
Shares available for future grant (in shares) | 935,200 | 935,200 |
Stock Options [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Options granted (in shares) | 0 | 0 |
Options outstanding (in shares) | 0 | 0 |
Restricted Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Restricted shares issued (in shares) | 0 | 20,000 |
Estimated fair value of shares issued | $ 38 | |
Restricted shares forfeited (in shares) | 35,000 | |
Estimated fair value of shares forfeited | $ 98 | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Vesting period | 1 year | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Abstract] | ||
Vesting period | 3 years |
Benefit Plans, 401(k) Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
401(k) Plan [Abstract] | ||
Maximum percentage of compensation employees may defer | 50.00% | |
Total matching contribution | $ 272 | $ 231 |
Employer maximum contribution to plan | 35.00% | 35.00% |
Percentage of participants contribution | 6.00% | 6.00% |
Safe harbor non-elective contribution | 3.00% | 3.00% |
Safe harbor non-elective contribution | $ 549 | $ 520 |
Employer contribution graded vesting period | 5 years |
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Preferred Stock [Abstract] | ||
Preferred Stock, outstanding (in shares) | 55,000 | 55,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Series D Preferred Stock [Member] | ||
Preferred Stock [Abstract] | ||
Preferred Stock, outstanding (in shares) | 55,000 | 55,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, redemption value (in dollars per share) | 100 | 100 |
Accrued annual dividends rate (in dollars per share) | $ 7.25 | $ 7.25 |
Number of preferred stock shares convertible to common shares (in shares) | 1,378,000 | 1,378,000 |
Maximum number of common stock issuable from conversion of preference shares, without obtaining prior shareholder approval (in shares) | 2,703,000 | 2,703,000 |
Dividends accrued but unpaid | $ 18 | $ 18 |
Dividends paid on preferred stock | $ 399 | $ 399 |
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Basic Earnings Per Common Share [Abstract] | ||
Net income before preferred stock dividends | $ 4,281 | $ 12,169 |
Less preferred stock dividends | (399) | (399) |
Net Income applicable to common shareholders | 3,882 | 11,770 |
Diluted Earnings Per Common Share [Abstract] | ||
Net income applicable to common shareholders, Diluted | $ 3,882 | $ 12,169 |
Weighted Average Shares [Abstract] | ||
Weighted average shares outstanding, Basic (in shares) | 20,402 | 20,441 |
Weighted average shares outstanding, Diluted (in shares) | 20,402 | 21,819 |
Per Share Amount [Abstract] | ||
Net income applicable to common shareholders, Basic (in dollars per share) | $ 0.19 | $ 0.58 |
Net income applicable to common shareholders, Diluted (in dollars per share) | $ 0.19 | $ 0.56 |
Series D Preferred Stock [Member] | ||
Diluted Earnings Per Common Share [Abstract] | ||
Effect of Series D preferred stock | $ 399 | |
Weighted Average Shares [Abstract] | ||
Effect of Series D preferred stock (in shares) | 1,378 |
Statutory Reporting (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statutory Net Income and Surplus [Abstract] | ||
Dividends received from its subsidiaries | $ 8,400 | $ 3,900 |
Maximum dividend payments by insurance subsidiaries without requiring prior approval | 5,629 | |
Statutory Accounting Practices [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | 7,324 | 16,287 |
Statutory surplus | 91,349 | 92,520 |
Statutory Accounting Practices [Member] | Bankers Fidelity [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | (364) | 7,712 |
Statutory surplus | 38,625 | 42,326 |
Statutory Accounting Practices [Member] | American Southern [Member] | ||
Statutory Net Income and Surplus [Abstract] | ||
Statutory net income (loss) | 7,688 | 8,575 |
Statutory surplus | $ 52,724 | $ 50,194 |
Related Party Transactions (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
ft²
Director
shares
|
Dec. 31, 2020
USD ($)
shares
|
|
Related Party Transaction [Abstract] | ||
Number of board of directors | Director | 2 | |
Rental expense for operating leases | $ 1,014 | $ 1,014 |
Payment of dividends on Series D Preferred Stock | 399 | 399 |
Series D Preferred Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Payment of dividends on Series D Preferred Stock | $ 399 | 399 |
Gray Television, Inc [Member] | ||
Related Party Transaction [Abstract] | ||
Office and covered garage space leased | ft² | 49,586 | |
Rental expense for operating leases | $ 879 | $ 939 |
Gray Television, Inc [Member] | Common Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Shares of common stock owned (in shares) | shares | 1,663,809 | 1,663,809 |
Members of Management [Member] | ||
Related Party Transaction [Abstract] | ||
Aggregate carrying value of investments in Gray | $ 18,325 | $ 16,606 |
Premiums paid by Gray for employee benefit plans | $ 1,308 | $ 1,308 |
Members of Management [Member] | Class A Common Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Shares of common stock owned (in shares) | shares | 880,272 | 880,272 |
Members of Management [Member] | Common Stock [Member] | ||
Related Party Transaction [Abstract] | ||
Shares of common stock owned (in shares) | shares | 106,000 | 106,000 |
Segment Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | $ 184,216 | $ 183,539 |
Insurance benefits and losses incurred | 131,694 | 119,876 |
Expenses deferred | (23,151) | (20,143) |
Amortization and depreciation expense | 24,985 | 20,373 |
Other expenses | 60,724 | 59,739 |
Total benefits and expenses | 194,252 | 179,845 |
Underwriting income (loss) | (2,336) | 10,082 |
Net investment income (loss) | 8,528 | 7,744 |
Other income (loss) | 13 | 76 |
Operating income (loss) | (1,495) | 11,514 |
Net realized gains | 4,903 | 7,420 |
Unrealized gains (losses) on equity securities | 1,894 | (3,431) |
Income before income taxes | 5,302 | 15,503 |
Total revenues | 199,554 | 195,348 |
Intangibles | 2,544 | 2,544 |
Total assets | 402,286 | 405,187 |
Operating Segments [Member] | American Southern [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 67,982 | 62,372 |
Insurance benefits and losses incurred | 44,433 | 39,339 |
Expenses deferred | (10,690) | (9,910) |
Amortization and depreciation expense | 10,756 | 9,772 |
Other expenses | 20,077 | 19,542 |
Total benefits and expenses | 64,576 | 58,743 |
Underwriting income (loss) | 3,406 | 3,629 |
Net investment income (loss) | 3,570 | 3,586 |
Other income (loss) | 4 | 37 |
Operating income (loss) | 6,980 | 7,252 |
Net realized gains | 2,198 | 3,389 |
Unrealized gains (losses) on equity securities | 114 | (205) |
Income before income taxes | 9,292 | 10,436 |
Total revenues | 73,868 | 69,179 |
Intangibles | 1,350 | 1,350 |
Total assets | 161,788 | 158,808 |
Operating Segments [Member] | Bankers Fidelity [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 116,234 | 121,167 |
Insurance benefits and losses incurred | 87,261 | 80,537 |
Expenses deferred | (12,461) | (10,233) |
Amortization and depreciation expense | 13,692 | 10,007 |
Other expenses | 33,484 | 34,403 |
Total benefits and expenses | 121,976 | 114,714 |
Underwriting income (loss) | (5,742) | 6,453 |
Net investment income (loss) | 5,204 | 4,971 |
Other income (loss) | 9 | 11 |
Operating income (loss) | (529) | 11,435 |
Net realized gains | 2,705 | 4,031 |
Unrealized gains (losses) on equity securities | 1,550 | (3,036) |
Income before income taxes | 3,726 | 12,430 |
Total revenues | 125,702 | 127,144 |
Intangibles | 1,194 | 1,194 |
Total assets | 227,395 | 236,197 |
Corporate and Other [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 537 | 594 |
Other expenses | 16,255 | 14,526 |
Total benefits and expenses | 16,792 | 15,120 |
Underwriting income (loss) | 0 | 0 |
Net investment income (loss) | 1,466 | 1,174 |
Other income (loss) | 7,380 | 6,773 |
Operating income (loss) | (7,946) | (7,173) |
Net realized gains | 0 | 0 |
Unrealized gains (losses) on equity securities | 230 | (190) |
Income before income taxes | (7,716) | (7,363) |
Total revenues | 9,076 | 7,757 |
Intangibles | 0 | 0 |
Total assets | 177,638 | 183,178 |
Adjustments & Eliminations [Member] | ||
Revenue and income (loss) before income taxes for each business unit [Abstract] | ||
Insurance premiums, net | 0 | 0 |
Insurance benefits and losses incurred | 0 | 0 |
Expenses deferred | 0 | 0 |
Amortization and depreciation expense | 0 | 0 |
Other expenses | (9,092) | (8,732) |
Total benefits and expenses | (9,092) | (8,732) |
Underwriting income (loss) | 0 | 0 |
Net investment income (loss) | (1,712) | (1,987) |
Other income (loss) | (7,380) | (6,745) |
Operating income (loss) | 0 | 0 |
Net realized gains | 0 | 0 |
Unrealized gains (losses) on equity securities | 0 | 0 |
Income before income taxes | 0 | 0 |
Total revenues | (9,092) | (8,732) |
Intangibles | 0 | 0 |
Total assets | $ (164,535) | $ (172,996) |
Subsequent Events (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Mar. 22, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Subsequent Event [Line Items] | |||
Dividends declared on common stock per share (in dollars per share) | $ 0.02 | $ 0 | |
Subsequent Events [Member] | |||
Subsequent Event [Line Items] | |||
Dividends declared, date declared | Mar. 22, 2022 | ||
Dividends declared on common stock per share (in dollars per share) | $ 0.02 | ||
Dividends declared, date payable | Apr. 13, 2022 |
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
ASSETS [Abstract] | ||||
Cash and cash equivalents | $ 24,753 | $ 19,319 | ||
Investments | 283,442 | 279,311 | ||
Investments in unconsolidated trusts | 1,238 | 1,238 | ||
Deferred tax asset, net | 1,755 | 0 | ||
Other assets | 8,719 | 7,804 | ||
Total assets | 402,286 | 405,187 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||
Deferred tax liability, net | 0 | 1,301 | ||
Other payables | 25,465 | 26,412 | ||
Junior subordinated debentures | 33,738 | 33,738 | ||
Total liabilities | 261,000 | 260,127 | ||
Shareholders' equity | 141,286 | 145,060 | ||
Total liabilities and shareholders' equity | 402,286 | 405,187 | ||
REVENUE [Abstract] | ||||
Unrealized gains (losses) on equity securities, net | 1,894 | (3,431) | ||
Other | 13 | 76 | ||
Total revenue | 199,554 | 195,348 | ||
INTEREST EXPENSE | 1,387 | 1,610 | ||
INCOME TAX BENEFIT | (1,021) | (3,334) | ||
Net Income | 4,281 | 12,169 | ||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | ||||
Net Income | 4,281 | 12,169 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Unrealized (gains) losses on equity securities, net | (1,894) | 3,431 | ||
Depreciation and amortization | 1,003 | 980 | ||
Compensation expense related to share awards | 211 | 437 | ||
Deferred income tax benefit | (1,112) | (2,250) | ||
Increase in accounts payable and accrued expenses | (947) | 2,324 | ||
Other, net | (1,420) | 1,931 | ||
Net cash provided by operating activities | 1,088 | 8,971 | ||
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | ||||
Additions to property and equipment | (107) | (233) | ||
Net cash provided by (used in) investing activities | 5,300 | (2,064) | ||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | ||||
Payment of dividends on Series D preferred stock | (399) | (399) | ||
Payment of dividends on common stock | (408) | 0 | ||
Proceeds from shares issued under stock plans | 6 | 9 | ||
Treasury stock acquired - net employee share-based compensation | (153) | (91) | ||
Net cash used in financing activities | (954) | (481) | ||
Net (decrease) increase in cash | 5,434 | 6,426 | ||
Cash and cash equivalents at beginning of year | 19,319 | 12,893 | ||
Cash and cash equivalents at end of year | 24,753 | 19,319 | ||
Supplemental disclosure [Abstract] | ||||
Cash paid for interest | 1,389 | 1,665 | ||
Cash paid for income taxes | 3,202 | 3,883 | ||
Parent Company [Member] | ||||
ASSETS [Abstract] | ||||
Cash and cash equivalents | 1,718 | 2,090 | ||
Investments | 2,749 | 2,598 | ||
Investment in subsidiaries | 164,535 | 172,996 | ||
Investments in unconsolidated trusts | 1,238 | 1,238 | ||
Deferred tax asset, net | 1,237 | 0 | ||
Income taxes receivable from subsidiaries | 2,171 | 1,683 | ||
Other assets | 5,791 | 4,311 | ||
Total assets | 179,439 | 184,916 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract] | ||||
Deferred tax liability, net | 0 | 1,765 | ||
Other payables | 4,415 | 4,353 | ||
Junior subordinated debentures | 33,738 | 33,738 | ||
Total liabilities | 38,153 | 39,856 | ||
Shareholders' equity | 141,286 | 145,060 | ||
Total liabilities and shareholders' equity | 179,439 | 184,916 | ||
REVENUE [Abstract] | ||||
Fee income from subsidiaries | 7,380 | 6,745 | ||
Distributed earnings from subsidiaries | 8,400 | 3,900 | ||
Unrealized gains (losses) on equity securities, net | 230 | (191) | ||
Other | (247) | (784) | ||
Total revenue | 15,763 | 9,670 | ||
GENERAL AND ADMINISTRATIVE EXPENSES | 13,654 | 11,521 | ||
INTEREST EXPENSE | 1,387 | 1,610 | ||
Earnings before tax and equity in undistributed earnings (losses) of subsidiaries | 722 | (3,461) | ||
INCOME TAX BENEFIT | [1] | (2,840) | (3,623) | |
Earnings after tax but before equity in undistributed earnings (losses) of subsidiaries | 3,562 | 162 | ||
EQUITY IN UNDISTRIBUTED EARNINGS (LOSS) OF SUBSIDIARIES, NET | 719 | 12,007 | ||
Net Income | 4,281 | 12,169 | ||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | ||||
Net Income | 4,281 | 12,169 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Unrealized (gains) losses on equity securities, net | (230) | 191 | ||
Depreciation and amortization | 538 | 594 | ||
Compensation expense related to share awards | 211 | 437 | ||
Equity in undistributed earnings of subsidiaries, net | (719) | (12,007) | ||
(Increase) decrease in intercompany taxes | (489) | 622 | ||
Deferred income tax benefit | (1,058) | (2,446) | ||
Increase in accounts payable and accrued expenses | 63 | 121 | ||
Other, net | (1,966) | 917 | ||
Net cash provided by operating activities | 631 | 598 | ||
CASH FLOWS FROM INVESTING ACTIVITIES [Abstract] | ||||
Additions to property and equipment | (49) | (95) | ||
Net cash provided by (used in) investing activities | (49) | (95) | ||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | ||||
Payment of dividends on Series D preferred stock | (399) | (399) | ||
Payment of dividends on common stock | (408) | 0 | ||
Proceeds from shares issued under stock plans | 6 | 9 | ||
Treasury stock acquired - net employee share-based compensation | (153) | (91) | ||
Net cash used in financing activities | (954) | (481) | ||
Net (decrease) increase in cash | (372) | 22 | ||
Cash and cash equivalents at beginning of year | 2,090 | 2,068 | ||
Cash and cash equivalents at end of year | 1,718 | 2,090 | ||
Supplemental disclosure [Abstract] | ||||
Cash paid for interest | 1,389 | 1,665 | ||
Cash paid for income taxes | 3,202 | 3,883 | ||
Intercompany tax settlement from subsidiaries | $ 6,734 | $ 1,798 | ||
|
Schedule III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||||
Supplementary Insurance Information by Segment [Abstract] | |||||||||
Deferred Acquisition Costs | $ 38,698 | $ 39,611 | |||||||
Future Policy Benefits, Losses, Claims and Loss Reserves | 172,968 | [1] | 170,019 | [2] | |||||
Unearned Premiums | 27,469 | 27,131 | |||||||
Other Policy Claims and Benefits Payable | 1,360 | 1,526 | |||||||
Liability for future policy benefits | 87,348 | 90,872 | |||||||
Losses and claims | 85,620 | 79,147 | $ 81,448 | ||||||
Premium Revenue | 184,216 | 183,539 | |||||||
Net Investment Income | 8,528 | 7,744 | |||||||
Benefits, Claims, Losses and Settlement Expenses | 131,694 | 119,876 | |||||||
Amortization of Deferred Acquisition Costs | 24,064 | 19,393 | |||||||
Other Operating Expenses | 38,494 | 40,576 | |||||||
Casualty Premiums Written | 69,403 | 64,366 | |||||||
Bankers Fidelity [Member] | |||||||||
Supplementary Insurance Information by Segment [Abstract] | |||||||||
Deferred Acquisition Costs | 36,308 | 37,312 | |||||||
Future Policy Benefits, Losses, Claims and Loss Reserves | 115,712 | 115,136 | |||||||
Unearned Premiums | 3,689 | 4,199 | |||||||
Other Policy Claims and Benefits Payable | 1,360 | 1,526 | |||||||
Premium Revenue | 116,234 | 121,167 | |||||||
Net Investment Income | 5,204 | 4,971 | |||||||
Benefits, Claims, Losses and Settlement Expenses | 87,261 | 80,537 | |||||||
Amortization of Deferred Acquisition Costs | 13,465 | 9,803 | |||||||
Other Operating Expenses | 21,250 | 24,374 | |||||||
Casualty Premiums Written | 0 | 0 | |||||||
American Southern [Member] | |||||||||
Supplementary Insurance Information by Segment [Abstract] | |||||||||
Deferred Acquisition Costs | 2,390 | 2,299 | |||||||
Future Policy Benefits, Losses, Claims and Loss Reserves | 57,256 | 54,883 | |||||||
Unearned Premiums | 23,780 | 22,932 | |||||||
Other Policy Claims and Benefits Payable | 0 | 0 | |||||||
Premium Revenue | 67,982 | 62,372 | |||||||
Net Investment Income | 3,570 | 3,586 | |||||||
Benefits, Claims, Losses and Settlement Expenses | 44,433 | 39,339 | |||||||
Amortization of Deferred Acquisition Costs | 10,599 | 9,590 | |||||||
Other Operating Expenses | 9,544 | 9,814 | |||||||
Casualty Premiums Written | 69,403 | 64,366 | |||||||
Corporate and Other [Member] | |||||||||
Supplementary Insurance Information by Segment [Abstract] | |||||||||
Premium Revenue | 0 | 0 | |||||||
Net Investment Income | (246) | (813) | |||||||
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 | |||||||
Amortization of Deferred Acquisition Costs | 0 | 0 | |||||||
Other Operating Expenses | 7,700 | 6,388 | |||||||
Casualty Premiums Written | $ 0 | $ 0 | |||||||
|
Schedule IV REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Life Insurance in Force [Abstract] | ||
Direct Amount | $ 416,480 | $ 294,392 |
Ceded To Other Companies | (9,487) | (11,032) |
Assumed From Other Companies | 0 | 0 |
Net Amounts | 406,993 | 283,360 |
Premiums [Abstract] | ||
Direct Amount | 235,806 | 238,209 |
Ceded To Other Companies | (73,666) | (77,814) |
Assumed From Other Companies | 22,076 | 23,144 |
Net premiums earned | $ 184,216 | $ 183,539 |
Percentage of Amount Assumed to Net | 12.00% | 12.60% |
Bankers Fidelity [Member] | ||
Premiums [Abstract] | ||
Direct Amount | $ 183,382 | $ 193,082 |
Ceded To Other Companies | (67,155) | (71,924) |
Assumed From Other Companies | 7 | 9 |
Net premiums earned | $ 116,234 | $ 121,167 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% |
American Southern [Member] | ||
Premiums [Abstract] | ||
Direct Amount | $ 52,424 | $ 45,127 |
Ceded To Other Companies | (6,511) | (5,890) |
Assumed From Other Companies | 22,069 | 23,135 |
Net premiums earned | $ 67,982 | $ 62,372 |
Percentage of Amount Assumed to Net | 32.50% | 37.10% |
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Schedule VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS [Abstract] | ||
Deferred Policy Acquisition Costs | $ 2,390 | $ 2,299 |
Reserves | 57,256 | 54,883 |
Unearned Premiums | 23,780 | 22,932 |
Earned Premiums | 67,982 | 62,372 |
Net Investment Income | 3,570 | 3,586 |
Claims and Claim Adjustment Expenses Incurred Related To Current Year | 48,678 | 39,859 |
Claims and Claim Adjustment Expenses Incurred Related To Prior Years | (4,245) | (520) |
Amortization of Deferred Acquisition Costs | 10,599 | 9,590 |
Paid Claims and Claim Adjustment Expenses | 40,370 | 37,645 |
Premiums Written | $ 69,403 | $ 64,366 |
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