Schedule II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2024

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,
	2024		2023
	(In thousands)
Cash and cash equivalents	$	3,916	$	2,774
Investments		1,696		1,930
Investment in subsidiaries		109,127		117,637
Investments in unconsolidated trusts		1,238		1,238
Deferred tax asset, net		18,118		15,682
Income taxes receivable from subsidiaries		658		1,988
Other assets		9,874		6,733
Total assets	$	144,627	$	147,982
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other payables	$	7,251	$	3,949
Revolving credit facility		4,023		3,019
Junior subordinated debentures obligations, net		33,738		33,738
Total liabilities		45,012		40,706
Shareholders’ equity		99,615		107,276
Total liabilities and shareholders’ equity	$	144,627	$	147,982

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

	Year Ended December 31,
	2024			2023
	(In thousands)
Revenue
Fee income from subsidiaries	$	9,531		$	8,738
Distributed earnings from subsidiaries		9,000			8,400
Unrealized losses on equity securities, net		(187	)		(51	)
Other		(159	)		(455	)
Total revenue		18,185			16,632
General and administrative expenses		16,073			15,336
Interest expense		3,419			3,269
		(1,307	)		(1,973	)
Income tax benefit(1)		(2,314	)		(4,802	)
		1,007			2,829
Equity in undistributed earnings of subsidiaries, net		(5,275	)		(3,000	)
Net loss	$	(4,268	)	$	(171	)

(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.

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

	Year Ended December 31,
	2024			2023
	(In thousands)
Cash flows from operating activities:
Net loss	$	(4,268	)	$	(171	)
Adjustments to reconcile net income to net cash used in operating activities:
Unrealized losses on equity securities, net		187			51
Depreciation and amortization		190			509
Compensation expense related to share awards		11			119
Loss from equity method investees		—			294
Equity in undistributed earnings of subsidiaries, net		5,275			3,000
Decrease (increase) in intercompany taxes		1,330			(37	)
Deferred income tax benefit		(1,748	)		(3,123	)
Increase (decrease) in accounts payable and accrued expenses		3,303			(181	)
Other, net		(3,271	)		(509	)
Net cash provided by (used in) operating activities		1,009			(48	)
Cash flows from investing activities:
Additions to property and equipment		(53	)		(39	)
Net cash used in investing activities		(53	)		(39	)
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			1,000
Treasury stock acquired — net employee share-based compensation		(7	)		(12	)
Net cash provided by financing activities		186			181
Net increase in cash		1,142			94
Cash and cash equivalents at beginning of year		2,774			2,680
Cash and cash equivalents at end of year	$	3,916		$	2,774
Supplemental disclosure:
Cash paid for interest	$	3,445		$	3,227
Cash paid for income taxes	$	580		$	2,582
Intercompany tax settlement from subsidiaries	$	4,352		$	4,031