Statutory

12 Months Ended

Dec. 31, 2020

Statutory [Abstract]

Statutory

Note P - Statutory

Net income of the Insurance Subsidiaries, all of which are wholly-owned, as determined in accordance with statutory accounting practices, was $3,881, $25,302 and $36,236 for 2020, 2019 and 2018, respectively.  Consolidated statutory capital and surplus for these Insurance Subsidiaries was $347,489 and $371,793 at December 31, 2020 and 2019, respectively, of which $50,584 may be transferred by dividend or loan to Protective during calendar year 2021 with proper notification to, but without approval from, regulatory authorities.

State regulatory authorities prescribe calculations of the minimum amount of statutory capital and surplus necessary for each insurance company to remain authorized.  These computations are referred to as risk-based capital requirements and are based on a number of complex factors taking into consideration the quality and nature of assets, the historical adequacy of recorded liabilities and the specific nature of business conducted.  At December 31, 2020, the minimum statutory capital and surplus requirements of the Insurance Subsidiaries was $136,544.  Actual consolidated statutory capital and surplus at December 31, 2020 exceeded this requirement by $210,946.