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Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2022
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]  
Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Schedule II
Page 1 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

BALANCE SHEETS

ASSETS

   
December 31,
  
   
2022
    
2021
  
   
(In thousands)
  
Cash and cash equivalents
  
$
2,680
    
$
1,718
  
Investments
    
2,278
      
2,749
  
Investment in subsidiaries
    
113,079
      
164,535
  
Investments in unconsolidated trusts
    
1,238
      
1,238
  
Deferred tax asset, net     14,163       1,237  
Income taxes receivable from subsidiaries
    
1,951
      
2,171
  
Other assets
    
6,681
      
5,791
  
Total assets
  
$
142,070
    
$
179,439
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
                 
Other payables
   $
 4,130
     $
 4,415
  
Revolving credit facility
     2,009       —  
Junior subordinated debentures
    
33,738
      
33,738
  
Total liabilities
    
39,877
      
38,153
  
                 
Shareholders’ equity
    
102,193
      
141,286
  
Total liabilities and shareholders’ equity
  
$
142,070
    
$
179,439
  

Schedule II
Page 2 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

STATEMENTS OF OPERATIONS

   
Year Ended December 31,
  
   
2022
    
2021
  
   
(In thousands)
  
REVENUE
            
Fee income from subsidiaries
  
$
7,624
    
$
7,380
  
Distributed earnings from subsidiaries
    
7,200
      
8,400
  
Unrealized gains (losses) on equity securities, net
    
(484
)
    
230
  
Other
    
93
      
(247
)
Total revenue
    
14,433
      
15,763
  
                 
GENERAL AND ADMINISTRATIVE EXPENSES
    
13,583
      
13,654
  
                 
INTEREST EXPENSE
    
1,952
      
1,387
  
     
(1,102
)
    
722
  
INCOME TAX BENEFIT(1)
    
(3,934
)
    
(2,840
)
     
2,832
      
3,562
  
EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES, NET
    
(1,307
)
    
719
  
NET INCOME
  
$
1,525
    
$
4,281
  

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

Schedule II
Page 3 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT
ATLANTIC AMERICAN CORPORATION
(Parent Company Only)

STATEMENTS OF CASH FLOWS

   
Year Ended December 31,
  
   
2022
    
2021
  
   
(In thousands)
  
CASH FLOWS FROM OPERATING ACTIVITIES:
            
Net Income
  
$
1,525
    
$
4,281
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Unrealized losses (gains) on equity securities, net
    
484
      
(230
)
Depreciation and amortization
    
515
      
538
  
Compensation expense related to share awards
    
134
      
211
  
Earnings from equity method investees
     (294 )     —  
Equity in undistributed earnings of subsidiaries, net
    
1,307
      
(719
)
Decrease (increase) in intercompany taxes
    
220
      
(489
)
Deferred income tax benefit
    
(2,336
)
    
(1,058
)
(Decrease) increase in accounts payable and accrued expenses
    
(285
)
    
63
  
Other, net
    
(1,348
)
    
(1,966
)
Net cash (used in) provided by operating activities
    
(78
)
    
631
  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Additions to property and equipment
    
(45
)
    
(49
)
Net cash used in investing activities
    
(45
)
    
(49
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Payment of dividends on Series D preferred stock
    
(399
)
    
(399
)
Payment of dividends on common stock
    
(408
)
    
(408
)
Proceeds from shares issued under stock plans
    
—
      
6
  
Proceeds from revolving credit facility, net
     2,000       —  
Treasury stock acquired — net employee share-based compensation
    
(108
)
    
(153
)
Net cash provided by (used in) financing activities
    
1,085
      
(954
)
                 
Net increase (decrease) in cash
    
962
      
(372
)
Cash and cash equivalents at beginning of year
    
1,718
      
2,090
  
Cash and cash equivalents at end of year
  
$
2,680
    
$
1,718
  
                 
Supplemental disclosure:
                
Cash paid for interest
  
$
1,794
    
$
1,389
  
Cash paid for income taxes
  
$
2,764
    
$
3,202
  
Intercompany tax settlement from subsidiaries
  
$
3,946
    
$
6,734