Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
	(In thousands)
Cash and cash equivalents	$	2,774	$	2,680
Investments		1,930		2,278
Investment in subsidiaries		117,637		113,079
Investments in unconsolidated trusts		1,238		1,238
Deferred tax asset, net		15,682		14,163
Income taxes receivable from subsidiaries		1,988		1,951
Other assets		6,733		6,681
Total assets	$	147,982	$	142,070
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other payables	$	3,949	$	4,130
Revolving credit facility		3,019		2,009
Junior subordinated debentures		33,738		33,738
Total liabilities		40,706		39,877
Shareholders’ equity		107,276		102,193
Total liabilities and shareholders’ equity	$	147,982	$	142,070

Schedule II

Page 2 of 3

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ATLANTIC AMERICAN CORPORATION

(Parent Company Only)

STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2023			2022
	(In thousands)
Revenue
Fee income from subsidiaries	$	8,738		$	7,624
Distributed earnings from subsidiaries		8,400			7,200
Unrealized losses on equity securities, net		(51	)		(484	)
Other		(455	)		93
Total revenue		16,632			14,433
General and administrative expenses		15,336			13,583
Interest expense		3,269			1,952
		(1,973	)		(1,102	)
Income tax benefit(1)		(4,802	)		(3,934	)
		2,829			2,832
Equity in undistributed earnings of subsidiaries, net		(3,000	)		(1,307	)
Net income (loss)	$	(171	)	$	1,525

(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,
	2023			2022
	(In thousands)
Cash flows from operating activities:
Net Income (loss)	$	(171	)	$	1,525
Adjustments to reconcile net income to net cash used in operating activities:
Unrealized losses on equity securities, net		51			484
Depreciation and amortization		509			515
Compensation expense related to share awards		119			134
Loss (earnings) from equity method investees		294			(294	)
Equity in undistributed earnings of subsidiaries, net		3,000			1,307
(Increase) decrease in intercompany taxes		(37	)		220
Deferred income tax benefit		(3,123	)		(2,336	)
Decrease in accounts payable and accrued expenses		(181	)		(285	)
Other, net		(509	)		(1,348	)
Net cash used in operating activities		(48	)		(78	)
Cash flows from investing activities:
Additions to property and equipment		(39	)		(45	)
Net cash used in investing activities		(39	)		(45	)
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 revolving credit facility, net		1,000			2,000
Treasury stock acquired — net employee share-based compensation		(12	)		(108	)
Net cash provided by financing activities		181			1,085
Net increase in cash		94			962
Cash and cash equivalents at beginning of year		2,680			1,718
Cash and cash equivalents at end of year	$	2,774		$	2,680
Supplemental disclosure:
Cash paid for interest	$	3,227		$	1,794
Cash paid for income taxes	$	2,582		$	2,764
Intercompany tax settlement from subsidiaries	$	4,031		$	3,946