Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-3722

ATLANTIC AMERICAN CORPORATION

(Exact name of registrant as specified in its charter)

Georgia		58-1027114
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

4370 Peachtree Road, N.E., Atlanta, Georgia		30319
(Address of principal executive offices)		(Zip Code)

[phone]

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $1.00 per share		AAME		NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☑   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☑   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐   Accelerated filer  ☐   Non-accelerated filer  ☑  Smaller reporting company  ☑   Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☐   No  ☑

The total number of shares of the registrant’s Common Stock, $1 par value, outstanding on October 31, 2023 was 20,402,288.

 

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ATLANTIC AMERICAN CORPORATION

TABLE OF CONTENTS

	Forward-Looking Statements	2
Part I.	Financial Information
Item 1.	Financial Statements:	3
	Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	3
	Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2023 and 2022	4
	Condensed Consolidated Statements of Comprehensive Loss for the three months and nine months ended September 30, 2023 and 2022	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three months and nine months ended September 30, 2023 and 2022	6
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 4.	Controls and Procedures	27
Part II.	Other Information
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	28
Item 5.	Other Information	28
Item 6.	Exhibits	28
Signatures		29

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FORWARD-LOOKING STATEMENTS

This report contains and references certain information that constitutes forward-looking statements as that term is defined in the federal securities laws. Forward-looking statements are all statements other than those of historical fact. Such forward-looking statements are made based upon management’s current assessments of various risks and uncertainties, as well as assumptions made in accordance with the “safe harbor” provisions of the federal securities laws. Forward-looking statements are inherently subject to various risks and uncertainties and the Company’s actual results could differ materially from the results expressed in or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and other subsequent filings made by the Company from time to time with the Securities and Exchange Commission. In addition, other risks and uncertainties not known by us, or that we currently determine to not be material, may materially adversely affect our financial condition, results of operations or cash flows. The Company undertakes no obligation to update any forward-looking statement as a result of subsequent developments, changes in underlying assumptions or facts, or otherwise, except as may be required by law.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ATLANTIC AMERICAN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

		Unaudited September 30, 2023				December 31, 2022
ASSETS
Cash and cash equivalents		$	23,921			$	28,863
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $237,213 and $236,766; no allowance for credit losses)			203,068				208,729
Equity securities, at fair value (cost: $4,936 and $4,907)			8,224				11,562
Other invested assets (cost: $6,982 and $5,628)			6,398				5,386
Policy loans			1,822				1,759
Real estate			38				38
Investment in unconsolidated trusts			1,238				1,238
Total investments			220,788				228,712
Receivables:
Reinsurance (net of allowance for uncollectible reinsurance of $64 and $0)			21,839				25,913
Insurance premiums and other (net of allowance for expected credit losses $191 and net of allowance for doubtful accounts $177)			24,687				15,386
Deferred income taxes, net			17,156				14,163
Deferred acquisition costs			41,926				42,281
Other assets			8,759				9,202
Intangibles			2,544				2,544
Total assets		$	361,620			$	367,064
LIABILITIES AND SHAREHOLDERS’ EQUITY
Insurance reserves and policyholder funds:
Future policy benefits		$	84,851			$	85,564
Unearned premiums			30,642				28,348
Losses and claims			85,679				87,484
Other policy liabilities			816				1,255
Total insurance reserves and policyholder funds			201,988				202,651
Accounts payable and accrued expenses			24,129				26,473
Revolving credit facility			3,019				2,009
Junior subordinated debenture obligations, net			33,738				33,738
Total liabilities			262,874				264,871
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value			55				55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,402,288 and 20,407,229			22,401				22,401
Additional paid-in capital			57,425				57,425
Retained earnings			53,257				51,982
Accumulated other comprehensive income			(26,975	)			(22,149	)
Unearned stock grant compensation			(16	)			(132	)
Treasury stock, at cost: 1,998,606 and 1,993,665 shares			(7,401	)			(7,389	)
Total shareholders’ equity			98,746				102,193
Total liabilities and shareholders’ equity		$	361,620			$	367,064

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ATLANTIC AMERICAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; Dollars in thousands, except per share data)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue:
Insurance premiums, net		$	43,746			$	46,380			$	135,906			$	140,526
Net investment income			2,325				2,641				7,425				7,510
Realized investment gains, net			—				101				70				29
Unrealized losses on equity securities, net			(1,486	)			(2,783	)			(3,367	)			(5,456	)
Other income			6				4				14				11
Total revenue			44,591				46,343				140,048				142,620
Benefits and expenses:
Insurance benefits and losses incurred			26,818				30,630				86,643				94,552
Commissions and underwriting expenses			11,064				12,843				36,830				35,894
Interest expense			850				523				2,407				1,291
Other expense			3,721				3,296				11,631				10,151
Total benefits and expenses			42,453				47,292				137,511				141,888
Income (loss) before income taxes			2,138				(949	)			2,537				732
Income tax expense (benefit)			379				(265	)			480				253
Net income (loss)			1,759				(684	)			2,057				479
Preferred stock dividends			(100	)			(100	)			(299	)			(299	)
Net income (loss) applicable to common shareholders		$	1,659			$	(784	)		$	1,758			$	180
Earnings (loss) per common share (basic)		$	0.08			$	(0.04	)		$	0.09			$	0.01
Earnings (loss) per common share (diluted)		$	0.08			$	(0.04	)		$	0.09			$	0.01

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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ATLANTIC AMERICAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited; Dollars in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net income (loss)		$	1,759			$	(684	)		$	2,057			$	479
Other comprehensive loss:
Available-for-sale fixed maturity securities:
Gross unrealized holding losses arising in the period			(7,604	)			(12,987	)			(6,038	)			(54,548	)
Related income tax effect			1,596				2,727				1,267				11,455
Subtotal			(6,008	)			(10,260	)			(4,771	)			(43,093	)
Less: reclassification adjustment for net realized gains included in net income (loss)			—				(101	)			(70	)			(48	)
Related income tax effect			—				21				15				10
Subtotal			—				(80	)			(55	)			(38	)
Total other comprehensive loss, net of tax			(6,008	)			(10,340	)			(4,826	)			(43,131	)
Total comprehensive loss		$	(4,249	)		$	(11,024	)		$	(2,769	)		$	(42,652	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ATLANTIC AMERICAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited; Dollars in thousands except share data)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Preferred stock:
Balance, beginning of period		$	55			$	55			$	55			$	55
Balance, end of period			55				55				55				55
Common stock:
Balance, beginning of period			22,401				22,401				22,401				22,401
Balance, end of period			22,401				22,401				22,401				22,401
Additional paid-in capital:
Balance, beginning of period			57,425				57,443				57,425				57,441
Restricted stock grants, net of forfeitures			—				—				—				2
Balance, end of period			57,425				57,443				57,425				57,443
Retained earnings:
Balance, beginning of period			52,006				51,820				51,982				51,264
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1, 2023			—				—				(75	)			—
Net income (loss)			1,759				(684	)			2,057				479
Dividends on common stock			(408	)			—				(408	)			(408	)
Dividends accrued on preferred stock			(100	)			(100	)			(299	)			(299	)
Balance, end of period			53,257				51,036				53,257				51,036
Accumulated other comprehensive loss:
Balance, beginning of period			(20,967	)			(15,103	)			(22,149	)			17,688
Other comprehensive loss, net of tax			(6,008	)			(10,340	)			(4,826	)			(43,131	)
Balance, end of period			(26,975	)			(25,443	)			(26,975	)			(25,443	)
Unearned stock grant compensation:
Balance, beginning of period			(33	)			(79	)			(132	)			(73	)
Restricted stock grants, net of forfeitures			—				—				—				(71	)
Amortization of unearned compensation			17				27				116				92
Balance, end of period			(16	)			(52	)			(16	)			(52	)
Treasury stock:
Balance, beginning of period			(7,401	)			(7,436	)			(7,389	)			(7,490	)
Restricted stock grants, net of forfeitures			—				—				—				69
Net shares acquired related to employee share-based compensation plans			—				(93	)			(12	)			(108	)
Balance, end of period			(7,401	)			(7,529	)			(7,401	)			(7,529	)
Total shareholders’ equity		$	98,746			$	97,911			$	98,746			$	97,911
Dividends declared on common stock per share		$	0.02			$	—			$	0.02			$	0.02
Common shares outstanding:
Balance, beginning of period			20,402,288				20,398,497				20,407,229				20,378,576
Net shares acquired under employee share-based compensation plans			—				(31,268	)			(4,941	)			(36,347	)
Restricted stock grants, net of forfeitures			—				—				—				25,000
Balance, end of period			20,402,288				20,367,229				20,402,288				20,367,229

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ATLANTIC AMERICAN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; In thousands)

		Nine Months Ended September 30,
		2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	2,057			$	479
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of (additions to) acquisition costs, net			355				(2,718	)
Realized investment gains, net			(70	)			(29	)
Unrealized losses on equity securities, net			3,367				5,456
Losses (earnings) from equity method investees			343				(275	)
Compensation expense related to share awards			116				92
Depreciation and amortization			521				683
Deferred income tax benefit			(1,711	)			(1,394	)
Increase in receivables, net			(5,227	)			(4,783	)
(Decrease) increase in insurance reserves and policyholder funds			(663	)			2,492
Decrease in accounts payable and accrued expenses			(2,644	)			(2,350	)
Other, net			13				101
Net cash used in operating activities			(3,543	)			(2,246	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold			5,038				3,871
Proceeds from investments matured, called or redeemed			8,000				8,997
Investments purchased			(14,942	)			(13,871	)
Additions to property and equipment			(75	)			(112	)
Net cash used in investing activities			(1,979	)			(1,115	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock			(408	)			(408	)
Treasury stock acquired — net employee share-based compensation			(12	)			(108	)
Proceeds from revolving credit facility, net			1,000				1,000
Net cash provided by financing activities			580				484
Net decrease in cash and cash equivalents			(4,942	)			(2,877	)
Cash and cash equivalents at beginning of period			28,863				24,753
Cash and cash equivalents at end of period		$	23,921			$	21,876
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		$	2,370			$	1,200
Cash paid for income taxes		$	2,026			$	2,164

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ATLANTIC AMERICAN CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited; Dollars in thousands, except per share amounts)

Note 1.

Basis of Presentation and Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements include the accounts of Atlantic American Corporation (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”), operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month and nine month periods ended September 30, 2023 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2023 or for any other future period.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Note 2.

Recently Issued Accounting Standards

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. The Company adopted the guidance as of June 30, 2023. The adoption of the guidance had no significant impact on the Company’s financial condition and results of operations.

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”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected.

The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.

The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance.

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Impact of Adoption on Condensed Consolidated Balance Sheet

Reinsurance Recoverables

The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and September 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2023.

		At and for the nine months ended September 30, 2023
(in thousands)		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance				Allowance for Estimated Uncollectible Reinsurance
Balance, beginning of period		$	25,913			$	—
Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023			—				75
Current period change for estimated uncollectible reinsurance			—				(11	)
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period		$	21,839			$	64

Insurance Premium and Other Receivables

The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and September 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the nine months ended September 30, 2023.

		At and for the nine months ended September 30, 2023
(in thousands)		Insurance Premiums and Other, Net of Expected Credit Losses				Allowance for Doubtful Accounts/Expected Credit Losses
Balance, beginning of period		$	15,386			$	177
Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023			—				—
Current period change for expected credit losses			—				14
Write-offs of uncollectible insurance premiums and other receivables			—				—
Balance, end of period		$	24,687			$	191

Future Adoption of New Accounting Standards

For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2022 Annual Report.

Accounting Policies

The following accounting policies have been updated to reflect the Company’s adoption of Financial Instruments - Credit Losses, as described above.

Credit Impairments of Fixed Maturities

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, less allowance for credit losses (“ACL”), 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. 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.

Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI.

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On January 1, 2023, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI.

Reinsurance Recoverables

The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement.

Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.

Insurance Premiums and Other Receivables

Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

Note 3.

Investments

   

The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, ACL and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2023 and December 31, 2022.

  

Fixed maturities were comprised of the following:

 

		September 30, 2023
		Estimated Fair Value				Gross Unrealized Gains				Gross Unrealized Losses				Allowance for Credit Losses				Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities		$	47,576			$	1			$	6,595			$	—			$	54,170
Obligations of states and political subdivisions			7,570				—				1,947				—				9,517
Corporate securities:
Utilities and telecom			19,693				—				4,064				—				23,757
Financial services			55,897				369				8,212				—				63,740
Other business – diversified			31,035				87				5,524				—				36,472
Other consumer – diversified			41,073				3				8,294				—				49,364
Total corporate securities			147,698				459				26,094				—				173,333
Redeemable preferred stocks:
Other consumer – diversified			224				31				—				—				193
Total redeemable preferred stocks			224				31				—				—				193
Total fixed maturities		$	203,068			$	491			$	34,636			$	—			$	237,213

 

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		December 31, 2022
		Estimated Fair Value				Gross Unrealized Gains				Gross Unrealized Losses				Cost or Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities		$	44,412			$	5			$	5,926			$	50,333
Obligations of states and political subdivisions			9,187				4				1,702				10,885
Corporate securities:
Utilities and telecom			22,090				120				3,299				25,269
Financial services			59,054				397				7,085				65,742
Other business – diversified			31,058				161				4,689				35,586
Other consumer – diversified			42,705				35				6,089				48,759
Total corporate securities			154,907				713				21,162				175,356
Redeemable preferred stocks:
Other consumer – diversified			223				31				—				192
Total redeemable preferred stocks			223				31				—				192
Total fixed maturities		$	208,729			$	753			$	28,790			$	236,766

  

Bonds having an amortized cost of $11,778 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $6,883 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2023 and December 31, 2022, respectively.

Equity securities were comprised of the following:

   

		September 30, 2023
		Estimated Fair Value				Gross Unrealized Gains				Gross Unrealized Losses				Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	880			$	577			$	—			$	303
Other business – diversified			7,344				2,711				—				4,633
Total equity securities		$	8,224			$	3,288			$	—			$	4,936

		December 31, 2022
		Estimated Fair Value				Gross Unrealized Gains				Gross Unrealized Losses				Cost
Equity securities:
Common and non-redeemable preferred stocks:
Financial services		$	790			$	516			$	—			$	274
Other business – diversified			10,772				6,139				—				4,633
Total equity securities		$	11,562			$	6,655			$	—			$	4,907

    

The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2023 and December 31, 2022 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.

  

		September 30, 2023								December 31, 2022
		Carrying Value				Amortized Cost				Carrying Value				Amortized Cost
Due in one year or less		$	367			$	375			$	3,776			$	3,797
Due after one year through five years			57,498				61,209				40,150				42,174
Due after five years through ten years			33,444				38,759				44,044				49,711
Due after ten years			77,744				97,530				87,719				103,095
Asset backed securities			34,015				39,340				33,040				37,989
Totals		$	203,068			$	237,213			$	208,729			$	236,766

    

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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 September 30, 2023 and December 31, 2022.

 

		September 30, 2023
		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		$	10,205			$	264			$	36,873			$	6,331			$	47,078			$	6,595
Obligations of states and political subdivisions			2,121				39				5,449				1,908				7,570				1,947
Corporate securities			12,457				748				129,484				25,346				141,941				26,094
Total temporarily impaired securities		$	24,783			$	1,051			$	171,806			$	33,585			$	196,589			$	34,636

  

		December 31, 2022
		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		$	23,763			$	2,410			$	19,259			$	3,516			$	43,022			$	5,926
Obligations of states and political subdivisions			8,183				1,702				—				—				8,183				1,702
Corporate securities			127,928				16,214				14,514				4,948				142,442				21,162
Total temporarily impaired securities		$	159,874			$	20,326			$	33,773			$	8,464			$	193,647			$	28,790

    

Analysis of Securities in Unrealized Loss Positions

 

As of September 30, 2023 and December 31, 2022, there were 251 and 237 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal.

For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the recent increases in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile.

For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. In addition, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated.  The Company had no ACL on its available-for-sale fixed maturities as of September 30, 2023.

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The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2023 and 2022.

   

Three Months Ended September 30, 2023

Fixed Maturities

Equity Securities

Other Invested Assets

Total

Gains

$

—

$

—

$

—

$

—

Losses

—

—

—

—

Realized investment gains, net

$

—

$

—

$

—

$

—

 

		Three Months Ended September 30, 2022
		Fixed Maturities				Equity Securities				Other Invested Assets				Total
Gains		$	101			$	—			$	—			$	101
Losses			—				—				—				—
Realized investment gains, net		$	101			$	—			$	—			$	101

		Nine Months Ended September 30, 2023
		Fixed Maturities				Equity Securities				Other Invested Assets				Total
Gains		$	70			$	—			$	—			$	70
Losses			—				—				—				—
Realized investment gains, net		$	70			$	—			$	—			$	70

		Nine Months Ended September 30, 2022
		Fixed Maturities				Equity Securities				Other Invested Assets				Total
Gains		$	101			$	—			$	—			$	101
Losses			(53	)			—				(19	)			(72	)
Realized investment gains (losses), net		$	48			$	—			$	(19	)		$	29

The following table presents the change in unrealized losses related to equity securities still held for the three month and nine month periods ended September 30, 2023 and 2022.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net realized and unrealized losses recognized during the period on equity securities		$	(1,486	)		$	(2,783	)		$	(3,367	)		$	(5,456	)
Less: Net realized gains recognized during the period on equity securities sold during the period			—				—				—				—
Unrealized losses recognized during the reporting period on equity securities, net		$	(1,486	)		$	(2,783	)		$	(3,367	)		$	(5,456	)

  

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 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 $6,398 and $5,386 as of September 30, 2023 and December 31, 2022, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2023 and December 31, 2022.

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 $7,636 and $6,624, as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, the Company had outstanding commitments totaling $4,518 and $5,872, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

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Note 4.

Fair Values 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.

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 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 equity security.  As of September 30, 2023 and December 31, 2022, the value of the equity security valued using Level 3 criteria was $185 and $156, respectively. The equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of September 30, 2023, financial instruments carried at fair value were measured on a recurring basis as summarized below:

		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
Assets:
Fixed maturities		$	—			$	203,068			$	—			$	203,068
Equity securities			8,039				—				185				8,224
Cash equivalents			14,035				—				—				14,035
Total		$	22,074			$	203,068			$	185			$	225,327

As of December 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:

		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
Assets:
Fixed maturities		$	—			$	208,729			$	—			$	208,729
Equity securities			11,406				—				156				11,562
Cash equivalents			18,861				—				—				18,861
Total		$	30,267			$	208,729			$	156			$	239,152

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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 September 30, 2023 and December 31, 2022.

				September 30, 2023								December 31, 2022
	Level in Fair Value Hierarchy (1)			Carrying Amount				Estimated Fair Value				Carrying Amount				Estimated Fair Value
Assets:
Cash and cash equivalents	Level 1			$	23,921			$	23,921			$	28,863			$	28,863
Fixed maturities	Level 2				203,068				203,068				208,729				208,729
Equity securities	(1)				8,224				8,224				11,562				11,562
Other invested assets	Level 3				6,398				6,398				5,386				5,386
Policy loans	Level 2				1,822				1,822				1,759				1,759
Investment in unconsolidated trusts	Level 2				1,238				1,238				1,238				1,238
Liabilities:
Junior subordinated debentures, net	Level 2				33,738				32,923				33,738				33,810
Revolving credit facility	Level 2				3,019				3,019				2,009				2,009

(1)	See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Note 5.

Internal-Use Software

On March 3, 2021, the Company entered into a hosting arrangement through a service contract with a third party software solutions vendor to provide a suite of policy, billing, claim, and customer management services. The software is managed, hosted, supported, and delivered as a cloud-based software service product offering (software-as-a-service). The initial term of the arrangement is five years from the effective date with a renewal term of an additional five years.

Service fees related to the hosting arrangement are recorded as an expense in the Company’s condensed consolidated statement of operations as incurred.  Implementation expenses incurred related to third party professional and consulting services have been capitalized.  The Company will begin amortizing, on a straight-line basis over the expected ten year term of the hosting arrangement, when the software is substantially ready for its intended use.  The Company incurred and capitalized implementation costs of $1,218 and $1,357 during the nine months ended September 30, 2023 and 2022, respectively.  As a result, the Company has capitalized $4,240 in implementation costs in other assets within its condensed consolidated balance sheet as of September 30, 2023.  The Company expects the software will be substantially ready for its intended use in the first half of 2024. Accordingly, the Company has not recorded any amortization expense related to software implementation costs for the three months and nine months ended September 30, 2023.

Note 6.

Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2023 and 2022 is as follows:

		Nine Months Ended September 30,
		2023				2022
Beginning insurance reserves for losses and claims, gross		$	87,484			$	85,620
Less: Reinsurance recoverable on unpaid losses			(17,647	)			(17,690	)
Beginning insurance reserves for losses and claims, net			69,837				67,930
Incurred related to:
Current accident year			82,276				96,897
Prior accident year development			2,706	(1)			(3,544	)(2)
Total incurred			84,982				93,353
Paid related to:
Current accident year			43,595				57,478
Prior accident years			41,634				34,647
Total paid			85,229				92,125
Ending insurance reserves for losses and claims, net			69,590				69,158
Plus: Reinsurance recoverable on unpaid losses			16,089				17,420
Ending insurance reserves for losses and claims, gross		$	85,679			$	86,578

(1)	Prior years’ development was primarily the result of unfavorable development in the automobile liability line of business in the property and casualty operations due to inflationary factors.

(2)	Prior years’ development was primarily the result of favorable development in the Medicare supplement line of business in the life and health operations, as well as favorable development in the surety line of business in the property and casualty operations.

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Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

		Nine Months Ended September 30,
		2023				2022
Total incurred losses		$	84,982			$	93,353
Cash surrender value and matured endowments			1,063				1,326
Benefit reserve changes			598				(127	)
Total insurance benefits and losses incurred		$	86,643			$	94,552

Note 7.

Credit Arrangements

As expected, discontinuation of London Interbank Offered Rate (“LIBOR”) occurred on June 30, 2023 (“LIBOR Cessation Date”) and affected the rates used in the Company’s credit arrangements after that date. On March 15, 2022, the U.S. Congress enacted the Adjustable Interest Rate LIBOR Act (the “LIBOR Act”) to address LIBOR’s cessation and to establish a clear and uniform process for replacing the overnight and one-, three-, six- and 12-month tenors of USD LIBOR in existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate (“tough legacy contracts”).  Further, the Board of Governors of the Federal Reserve System (the “Board”) has issued regulations, 12 C.F.R. Part 253, “Regulations Implementing the Adjustable Interest Rate LIBOR Act (Regulation ZZ)” together with the LIBOR Act, constitute the “Federal LIBOR Legislation,” which relates to the LIBOR transition.

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 $10,000 revolving credit facility that matures on April 12, 2024. Prior to July 1, 2023, the Company paid interest on the unpaid principal balance of outstanding revolving loans at the 1-month LIBOR Rate (as defined in the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%. Effective July 1, 2023, the interest rate on the unpaid principal balance of outstanding revolving loans is determined based on a reference rate of the 1-month Term Secured Overnight Financing Rate (“SOFR”) published by Chicago Mercantile Exchange Group Benchmark Administration Limited (“CME”) (as defined in the Credit Agreement) plus a spread adjustment of 0.11448% plus 2.00%, subject to a SOFR 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 September 30, 2023, the Company had outstanding borrowings including accrued interest of $3,019 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 the Company; and (iii) engaging in those activities necessary or incidental thereto.

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The outstanding $18.0 million and $15.7 million of Junior Subordinated Debentures mature on December 4, 2032 and May 15, 2033, respectively, are callable quarterly, in whole or in part, only at the option of the Company.  Prior to July 1, 2023, the interest rate was based on 3-month LIBOR plus an applicable margin. The margin ranges from 4.00% to 4.10%. Effective July 1, 2023, the interest rate is determined based on a reference rate of the 3-month SOFR plus applicable tenor spread of 0.26161 percent plus an applicable margin, ranging from 4.00% to 4.10%.

The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2023 was as follows:

		Atlantic American Statutory Trust I				Atlantic American Statutory Trust II
JUNIOR SUBORDINATED DEBENTURES (1) (2)
Principal amount owed September 30, 2023		$	18,042			$	23,196
Less: Treasury debt (3)			—				(7,500	)
Net balance September 30, 2023		$	18,042			$	15,696
Net balance December 31, 2022		$	18,042			$	15,696
Coupon rate		3-Month SOFR + 0.26161 spread adj + 4.00%				3-Month SOFR + 0.26161 spread adj + 4.10%
Interest payable		Quarterly				Quarterly
Maturity date		December 4, 2032				May 15, 2033
Redeemable by issuer		Yes				Yes
TRUST PREFERRED SECURITIES
Issuance date		December 4, 2002				May 15, 2003
Securities issued			17,500				22,500
Liquidation preference per security		$	1			$	1
Liquidation value		$	17,500			$	22,500
Coupon rate		3-Month SOFR + 0.26161 spread adj + 4.00%				3-Month SOFR + 0.26161 spread adj + 4.10%
Distribution payable		Quarterly				Quarterly
Distribution guaranteed by (4)		Atlantic American Corporation				Atlantic American Corporation

(1)

For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities.

(2)	The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries.

(3)	On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures.

(4)	The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Note 8.

Earnings (Loss) Per Common Share

A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:

		Three Months Ended September 30, 2023
		Income				Weighted Average Shares (In thousands)				Per Share Amount
Basic Earnings Per Common Share:
Net income		$	1,759				20,402
Less preferred stock dividends			(100	)			—
Net income applicable to common shareholders			1,659				20,402				0.08
Diluted Earnings Per Common Share:
Effect of Series D preferred stock			100				1,378
Net income applicable to common shareholders		$	1,759				21,780			$	0.08

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		Three Months Ended September 30, 2022
		Loss				Weighted Average Shares (In thousands)				Per Share Amount
Basic and Diluted Loss Per Common Share:
Net loss		$	(684	)			20,389
Less preferred stock dividends			(100	)			—
Net loss applicable to common shareholders		$	(784	)			20,389			$	(0.04	)

		Nine Months Ended September 30, 2023
		Income				Weighted Average Shares (In thousands)				Per Share Amount
Basic and Diluted Earnings Per Common Share:
Net income		$	2,057				20,405
Less preferred stock dividends			(299	)			—
Net income applicable to common shareholders		$	1,758				20,405			$	0.09

		Nine Months Ended September 30, 2022
		Income				Weighted Average Shares (In thousands)				Per Share Amount
Basic and Diluted Earnings Per Common Share:
Net income		$	479				20,390
Less preferred stock dividends			(299	)			—
Net income applicable to common shareholders		$	180				20,390			$	0.01

The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings (loss) per common share calculation for all periods presented, except for the three month period ended September 30, 2023, since its impact would have been antidilutive.

Note 9.

Income Taxes

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Federal income tax provision at statutory rate of 21%		$	449			$	(199	)		$	533			$	154
Dividends-received deduction			(10	)			(6	)			(27	)			(18	)
Meals and entertainment			9				29				32				49
Vested stock and club dues			11				(7	)			14				(7	)
Parking disallowance			5				4				13				12
Penalties and fines			—				—				—				149
Adjustment for prior years’ estimates to actual			(85	)			(86	)			(85	)			(86	)
Income tax expense (benefit)		$	379			$	(265	)		$	480			$	253

The components of income tax expense (benefit) were:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Current – Federal		$	790			$	435			$	2,191			$	1,647
Deferred – Federal			(411	)			(700	)			(1,711	)			(1,394	)
Total		$	379			$	(265	)		$	480			$	253

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Note 10.

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 the nine months ended September 30, 2023 and September 30, 2022 was $761.

Additional information regarding the Company’s real estate operating leases is as follows:

		Nine Months Ended September 30,
Other information on operating leases:		2023				2022
Cash payments included in the measurement of lease liabilities reported in operating cash flows		$	784			$	772
Right-of-use assets included in other assets on the condensed consolidated balance sheet			2,817				3,595
Weighted average discount rate			6.8	%			6.8	%
Weighted average remaining lease term in years		3.1 years				4.1 years

The following table presents maturities and present value of the Company’s lease liabilities:

		Lease Liability
Remainder of 2023		$	264
2024			1,065
2025			1,083
2026			942
Thereafter			—
Total undiscounted lease payments			3,354
Less: present value adjustment			343
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet		$	3,011

As of September 30, 2023, the Company has no operating leases that have not yet commenced.

Note 11.

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 arising 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 the opinion of management, any such known regulatory matters are not expected to have a material effect on the financial condition or results of operations of the Company.

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Note 12.

Segment Information

   

The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2023 and 2022.

 

Assets		September 30, 2023				December 31, 2022
American Southern		$	142,359			$	144,455
Bankers Fidelity			188,875				195,028
Corporate and Other			30,386				27,581
Total assets		$	361,620			$	367,064

Revenues		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
American Southern		$	17,652			$	18,538			$	54,817			$	56,540
Bankers Fidelity			27,249				27,641				85,632				86,099
Corporate and Other			(310	)			164				(401	)			(19	)
Total revenue		$	44,591			$	46,343			$	140,048			$	142,620

 

Income (Loss) Before Income Taxes		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
American Southern		$	1,437			$	1,892			$	3,823			$	4,659
Bankers Fidelity			3,502				(850	)			6,705				2,084
Corporate and Other			(2,801	)			(1,991	)			(7,991	)			(6,011	)
Income (loss) before income taxes		$	2,138			$	(949	)		$	2,537			$	732

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Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Overview

The following is management’s discussion and analysis of the financial condition and results of operations of Atlantic American Corporation (“Atlantic American” or the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”) as of and for the three month and nine month periods ended September 30, 2023. This discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere herein, as well as with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”).

Atlantic American is an insurance holding company whose operations are conducted primarily through its insurance subsidiaries: American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”). Each operating company is managed separately, offers different products and is evaluated on its individual performance.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ significantly from those estimates. The Company has identified certain estimates that involve a higher degree of judgment and are subject to a significant degree of variability. The Company’s critical accounting policies and the resultant estimates considered most significant by management are disclosed in the 2022 Annual Report. Except as disclosed in Note 2 of Notes to Condensed Consolidated Financial Statements, the Company’s critical accounting policies are consistent with those disclosed in the 2022 Annual Report.

Overall Corporate Results

The following presents the Company’s revenue, expenses and net income (loss) for the three month and nine month periods ended September 30, 2023 and the comparable periods in 2022:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Insurance premiums, net		$	43,746			$	46,380			$	135,906			$	140,526
Net investment income			2,325				2,641				7,425				7,510
Realized investment gains, net			—				101				70				29
Unrealized losses on equity securities, net			(1,486	)			(2,783	)			(3,367	)			(5,456	)
Other income			6				4				14				11
Total revenue			44,591				46,343				140,048				142,620
Insurance benefits and losses incurred			26,818				30,630				86,643				94,552
Commissions and underwriting expenses			11,064				12,843				36,830				35,894
Interest expense			850				523				2,407				1,291
Other expense			3,721				3,296				11,631				10,151
Total benefits and expenses			42,453				47,292				137,511				141,888
Income (loss) before income taxes		$	2,138			$	(949	)		$	2,537			$	732
Net income (loss)		$	1,759			$	(684	)		$	2,057			$	479

In addition to measures of operating performance determined in accordance with GAAP, management also considers and evaluates performance by analyzing the non-GAAP measure operating income (loss). We define operating income (loss) as net income (loss) excluding: (i) income tax expense (benefit); (ii) realized investment (gains) losses, net; and (iii) unrealized (gains) losses on equity securities, net. Management believes operating income (loss) is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as taxes, which are subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operational results (such as any realized and unrealized investment gains, which are not a part of the Company’s primary operations and are, to a limited extent, subject to discretion in terms of timing of realization).

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A reconciliation of net income (loss) to operating income for the three month and nine month periods ended September 30, 2023 and the comparable periods in 2022 is as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
Reconciliation of Non-GAAP Financial Measure		2023				2022				2023				2022
		(In thousands)
Net income (loss)		$	1,759			$	(684	)		$	2,057			$	479
Income tax expense (benefit)			379				(265	)			480				253
Realized investment gains, net			—				(101	)			(70	)			(29	)
Unrealized losses on equity securities, net			1,486				2,783				3,367				5,456
Non-GAAP operating income		$	3,624			$	1,733			$	5,834			$	6,159

On a consolidated basis, the Company had net income of $1.8 million, or $0.08 per diluted share, for the three month period ended September 30, 2023, compared to net loss of $0.7 million, or $(0.04) per diluted share, for the three month period ended September 30, 2022.  The Company had net income of $2.1 million, or $0.09 per diluted share, for the nine month period ended September 30, 2023, compared to net income of $0.5 million, or $0.01 per diluted share, for the nine month period ended September 30, 2022.  The increase in net income for the three month and nine periods ended September 30, 2023  was primarily the result of a  more favorable loss experience in the life and health operations, from the comparable periods in 2022, coupled with a decrease in unrealized losses on equity securities. Partially offsetting this increase in net income for the nine month period ended September 30, 2023 was an increase in ancillary costs related to the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations.

For the three month period ended September 30, 2023, premium revenue decreased $2.6 million, or 5.7%, to $43.7 million from $46.4 million in the comparable period in 2022.  For the nine month period ended September 30, 2023, premium revenue decreased $4.6 million, or 3.3%, to $135.9 million from $140.5 million in the comparable period in 2022.  The decrease in premium revenue was primarily attributable to a decrease in the Medicare supplement insurance premiums in the life and health operations. Also contributing to this decrease was a decrease in premium revenue in the automobile physical damage line of business in the property and casualty operations.

Operating income increased $1.9 million in the three month period ended September 30, 2023 from the three month period ended September 30, 2022.  For the nine month period ended September 30, 2023, operating income decreased $0.3 million from the comparable period in 2022.  The increase in operating income for the three month period ended September 30, 2023 was primarily the result of a more favorable loss experience in the life and health operations, from the comparable period in 2022. The decrease in operating income for the nine month period ended September 30, 2023 was primarily attributable to ancillary costs related to the new actuarial valuation system, coupled with an increase in administrative costs related to the growth in the group and individual lines of business within the life and health operations, as mentioned above.

A more detailed analysis of the individual operating segments and other corporate activities follows.

American Southern

The following summarizes American Southern’s premiums, losses, expenses and underwriting ratios for the three month and nine month periods ended September 30, 2023 and the comparable periods in 2022:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
		(Dollars in thousands)
Gross written premiums		$	10,860			$	12,400			$	58,365			$	63,558
Ceded premiums			(1,501	)			(1,583	)			(4,476	)			(4,922	)
Net written premiums		$	9,359			$	10,817			$	53,889			$	58,636
Net earned premiums		$	16,571			$	17,641			$	51,662			$	53,753
Insurance benefits and losses incurred			11,881				12,031				38,089				36,549
Commissions and underwriting expenses			4,335				4,615				12,906				15,332
Underwriting income		$	355			$	995			$	667			$	1,872
Loss ratio			71.7	%			68.2	%			73.7	%			68.0	%
Expense ratio			26.2				26.2				25.0				28.5
Combined ratio			97.9	%			94.4	%			98.7	%			96.5	%

Gross written premiums at American Southern decreased $1.5 million, or 12.4%, during the three month period ended September 30, 2023 and decreased $5.2 million, or 8.2%, during the nine month period ended September 30, 2023, from the comparable periods in 2022. The decrease in gross written premiums during the three month and nine month periods ended September 30, 2023 was primarily attributable to the decrease in premiums written in the automobile physical damage line of business due to a reduction in the number of agencies.  Partially offsetting the decrease in gross written premiums was an increase in premiums written in the automobile liability line of business due to price increases in certain programs.

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Ceded premiums decreased $0.1 million, or 5.2%, during the three month period ended September 30, 2023 and decreased $0.4 million, or 9.1%, during the nine month period ended September 30, 2023, from the comparable periods in 2022. American Southern’s ceded premiums are typically determined as a percentage of earned premiums and generally increase or decrease as earned premiums increase or decrease.

The following presents American Southern’s net earned premiums by line of business for the three month and nine month periods ended September 30, 2023 and the comparable periods in 2022:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
		(In thousands)
Automobile liability		$	9,455			$	9,546			$	29,270			$	25,731
Automobile physical damage			3,534				4,179				11,574				16,649
General liability			1,399				1,532				4,250				4,391
Surety			1,592				1,485				4,696				4,453
Other lines			591				899				1,872				2,529
Total		$	16,571			$	17,641			$	51,662			$	53,753

Net earned premiums decreased $1.1 million, or 6.1%, during the three month period ended September 30, 2023, and $2.1 million, or 3.9%, during the nine month period ended September 30, 2023, over the comparable periods in 2022. The decrease in net earned premiums was primarily attributable to a decrease in earned premiums in the automobile physical damage line of business due to a reduction in the number of agencies as previously mentioned, partially offset during the nine month period ended September 30, 2023, by the increase in the automobile liability line of business.  Premiums are earned ratably over their respective policy terms, and therefore premiums earned in the current year are related to policies written during both the current year and immediately preceding year.

The performance of an insurance company is often measured by its combined ratio. The combined ratio represents the percentage of losses, loss adjustment expenses and other expenses that are incurred for each dollar of premium earned by the company. A combined ratio of under 100% represents an underwriting profit while a combined ratio of over 100% indicates an underwriting loss. The combined ratio is divided into two components, the loss ratio (the ratio of losses and loss adjustment expenses incurred to premiums earned) and the expense ratio (the ratio of expenses incurred to premiums earned).

Insurance benefits and losses incurred at American Southern decreased $0.2 million, or 1.2%, during the three month period ended September 30, 2023, and increased $1.5 million, or 4.2%, during the nine month period ended September 30, 2023, over the comparable periods in 2022. As a percentage of earned premiums, insurance benefits and losses incurred were 71.7% in the three month period ended September 30, 2023, compared to 68.2% in the three month period ended September 30, 2022.  For the nine month period ended September 30, 2023, this ratio increased to 73.7% from 68.0% in the comparable period in 2022.  The increase in the loss ratio during the three month and nine month periods ended September 30, 2023 was mainly due to an increase in the frequency and severity of claims in the automobile liability line of business, as well as in the general liability line of business.  Partially offsetting the increase in the loss ratio was a decrease in losses related to the automobile physical damage line of business due to a decrease in exposure.

Commissions and underwriting expenses decreased $0.3 million, or 6.1%, during the three month period ended September 30, 2023, and $2.4 million, or 15.8% during the nine month period ended September 30, 2023, over the comparable periods in 2022. As a percentage of earned premiums, underwriting expenses were 26.2% in each of the three month periods ended September 30, 2023 and 2022. For the nine month period ended September 30, 2023, this ratio decreased to 25.0% from 28.5% in the comparable period in 2022.  The decrease in the expense ratio during the three month and nine month periods ended September 30, 2023 was primarily due to American Southern’s use of a variable commission structure with certain agents, which compensates the participating agents in relation to the loss ratios of the business they write. During periods in which the loss ratio decreases, commissions and underwriting expenses will generally increase, and conversely, during periods in which the loss ratio increases, commissions and underwriting expenses will generally decrease.

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Bankers Fidelity

The following summarizes Bankers Fidelity’s earned premiums, losses, expenses and underwriting ratios for the three month and nine month periods ended September 30, 2023 and the comparable periods in 2022:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
		(Dollars in thousands)
Medicare supplement		$	32,957			$	36,766			$	100,815			$	112,013
Other health products			3,525				3,392				10,907				9,314
Life insurance			4,619				3,994				14,691				12,081
Gross earned premiums			41,101				44,152				126,413				133,408
Ceded premiums			(13,926	)			(15,413	)			(42,169	)			(46,635	)
Net earned premiums			27,175				28,739				84,244				86,773
Insurance benefits and losses incurred			14,937				18,599				48,554				58,003
Commissions and underwriting expenses			8,810				9,893				30,373				26,012
Total expenses			23,747				28,492				78,927				84,015
Underwriting income		$	3,428			$	247			$	5,317			$	2,758
Loss ratio			55.0	%			64.7	%			57.6	%			66.8	%
Expense ratio			32.4				34.4				36.1				30.0
Combined ratio			87.4	%			99.1	%			93.7	%			96.8	%

Net earned premium revenue at Bankers Fidelity decreased $1.6 million, or 5.4%, during the three month period ended September 30, 2023, and $2.5 million, or 2.9%, during the nine month period ended September 30, 2023, from the comparable periods in 2022. Gross earned premiums from the Medicare supplement line of business decreased $3.8 million, or 10.4%, during the three month period ended September 30, 2023, and $11.2 million, or 10.0%, during the nine month period ended September 30, 2023, due primarily to non-renewals exceeding the level of new business writings. Other health product premiums increased $0.1 million, or 3.9%, during the three month period ended September 30, 2023, and $1.6 million, or 17.1%, during the nine month period ended September 30, 2023, over the comparable periods in 2022, primarily as a result of new sales of the company’s group health and individual cancer products. Gross earned premiums from the life insurance line of business increased $0.6 million, or 15.6%, during the three month period ended September 30, 2023, and increased $2.6 million, or 21.6%, during the nine month period ended September 30, 2023, over the comparable periods in 2022, primarily due to an increase in the group life products premium.  Partially offsetting this increase was a decrease in individual life products premium, resulting from the redemption and settlement of existing individual life policy obligations exceeding the level of new individual life sales.  Premiums ceded decreased $1.5 million, or 9.6%, during the three month period ended September 30, 2023 and $4.5 million, or 9.6%, during the nine month period ended September 30, 2023, from the comparable periods in 2022.  The decrease in ceded premiums for the three month and nine month periods ended September 30, 2023 was due to a decrease in Medicare supplement premiums subject to reinsurance.

Insurance benefits and losses incurred decreased $3.7 million, or 19.7%, during the three month period ended September 30, 2023, and $9.4 million, or 16.3%, during the nine month period ended September 30, 2023, from the comparable periods in 2022.  As a percentage of earned premiums, benefits and losses were 55.0% in the three month period ended September 30, 2023, compared to 64.7% in the three month period ended September 30, 2022.  For the nine month period ended September 30, 2023, this ratio decreased to 57.6% from 66.8% in the comparable period in 2022.  The decrease in the loss ratio for the three month and nine month periods ended September 30, 2023 was primarily due to improved rate adequacy and a decrease in the number of incurred claims within the Medicare supplement line of business.  This decrease was marginally offset by increased loss ratios on the other health lines of business.

Commissions and underwriting expenses decreased $1.1 million, or 10.9%, during the three month period ended September 30, 2023, and increased $4.4 million, or 16.8%, during the nine month period ended September 30, 2023, over the comparable periods in 2022.  As a percentage of earned premiums, underwriting expenses were 32.4% in the three month period ended September 30, 2023, compared to 34.4% in the three month period ended September 30, 2022.  For the nine month period ended September 30, 2023, this ratio increased to 36.1% from 30.0% in the comparable period in 2022. The decrease in the expense ratio for the three month period ended September 30, 2023 was primarily due to a decrease in commission expenses in the Medicare supplement line of business as a result of non-renewals exceeding the level of new business writings, as previously mentioned.  The increase in the expense ratio for the nine month period ended September 30, 2023 was due to an increase in administrative costs related to the growth in the group and individual lines of business, coupled with increased Medicare supplement servicing costs.

Net Investment Income and Realized Gains

Investment income decreased $0.3 million, or 12.0%, during the three month period ended September 30, 2023, and decreased $0.1 million, or 1.1%, during the nine month period ended September 30, 2023, over the comparable periods in 2022. The decrease in investment income in the three month and nine month periods ended September 30, 2023, from the comparable periods in 2022, was primarily attributable to the decrease in the equity in earnings from investments in the Company's limited liability companies of $0.6 million in each of the aforementioned periods.

The Company had no net realized investment gains during the three month period ended September 30, 2023, compared to net realized investment gains of $0.1 million during the three month period ended September 30, 2022.  The Company had net realized investment gains of $0.1 million during the nine month period ended September 30, 2023 and net realized investment gains of less than $0.1 million during the nine month period ended September 30, 2022.  The net realized investment gains during the nine month period ended September 30, 2023 resulted primarily from the disposition of several of the Company's investments in fixed maturity securities. The net realized investment gains during the three month and nine month periods ended September 30, 2022 resulted primarily from the disposition of several of the Company's investments in fixed maturity securities, partially offset by the redemption of several of the Company’s investments in fixed maturity securities. Management continually evaluates the Company’s investment portfolio and makes adjustments for impairments and/or divests investments as may be determined to be appropriate.

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Unrealized Losses on Equity Securities

Investments in equity securities are measured at fair value at the end of the reporting period, with any changes in fair value reported in net income during the period, with certain exceptions. The Company recognized net unrealized losses on equity securities of $1.5 million during the three month period ended September 30, 2023 and unrealized losses on equity securities of $2.8 million during the three month period ended September 30, 2022.  The Company recognized net unrealized losses on equity securities of $3.4 million during the nine month period ended September 30, 2023 and unrealized losses on equity securities of $5.5 million during the nine month period ended September 30, 2022.  Changes in unrealized gains on equity securities for the applicable periods are primarily the result of fluctuations in the market value of certain of the Company’s equity securities.

Interest Expense

Interest expense increased $0.3 million, or 62.5%, during the three month period ended September 30, 2023, and $1.1 million, or 86.4%, during the nine month period ended September 30, 2023, from the comparable periods in 2022. Changes in interest expense were primarily due to changes in the Term Secured Overnight Financing Rate (“SOFR”) published by CME Group Benchmark Administration Limited (“CME”), as the interest rates on the Company’s outstanding junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) and the revolving credit facility are directly related to SOFR. As expected, discontinuation of London Interbank Offered Rate (“LIBOR”) occurred on June 30, 2023, affected the rates used in the Company’s credit arrangements after that date. The U.S. Congress enacted the Adjustable Interest Rate LIBOR Act (the "LIBOR Act") to address LIBOR’s cessation and the Board of Governors of the Federal Reserve System (the “Board”) issued regulations, 12 C.F.R. Part 253, “Regulations Implementing the Adjustable Interest Rate LIBOR Act (Regulation ZZ)” together with the LIBOR Act, constitute the “Federal LIBOR Legislation,” which relates to the LIBOR transition. For more details about the LIBOR transition see Note 7 (Credit Arrangements).

Liquidity and Capital Resources

The primary cash needs of the Company are for the payment of claims and operating expenses, maintaining adequate statutory capital and surplus levels, and meeting debt service requirements. Current and expected patterns of claim frequency and severity may change from period to period but generally are expected to continue within historical ranges. The Company’s primary sources of cash are written premiums, investment income and proceeds from the sale and maturity of its invested assets. The Company believes that, within each operating company, total invested assets will be sufficient to satisfy all policy liabilities and that cash inflows from investment earnings, future premium receipts and reinsurance collections will be adequate to fund the payment of claims and operating expenses as needed for the next 12 months and beyond.

Cash flows at the Parent are derived from dividends, management fees, and tax-sharing payments, as described below, from the subsidiaries. The principal cash needs of the Parent are for the payment of operating expenses, the acquisition of capital assets and debt service requirements, as well as the repurchase of shares and payments of any dividends as may be authorized and approved by the Company’s board of directors from time to time. At September 30, 2023, the Parent had approximately $4.8 million of unrestricted cash and investments.

The Parent’s insurance subsidiaries reported statutory net income of $8.9 million for the nine month period ended September 30, 2023, compared to statutory net income of $5.7 million for the nine month period ended September 30, 2022. Statutory results are impacted by the recognition of all costs of acquiring business. In periods in which the Company’s first year premiums increase, statutory results are generally lower than results determined under GAAP. Statutory results for the Company’s property and casualty operations may differ from the Company’s results of operations under GAAP due to the deferral of acquisition costs for financial reporting purposes. The Company’s life and health operations’ statutory results may differ from GAAP results primarily due to the deferral of acquisition costs for financial reporting purposes, as well as the use of different reserving methods.

Over 90% of the invested assets of the Parent’s insurance subsidiaries are invested in marketable securities that can be converted into cash, if required; however, the use of such assets by the Company is limited by state insurance regulations. Dividend payments to a parent corporation by its wholly owned insurance subsidiaries are subject to annual limitations and are restricted to 10% of statutory surplus or statutory earnings before recognizing realized investment gains of the individual insurance subsidiaries. At September 30, 2023, American Southern had $53.4 million of statutory capital and surplus and Bankers Fidelity had $37.4 million of statutory capital and surplus. In 2023, dividend payments by the Parent’s insurance subsidiaries in excess of $8.7 million would require prior approval. Through September 30, 2023, the Parent received dividends of $5.4 million from its subsidiaries.

The Parent provides certain administrative and other services to each of its insurance subsidiaries. The amounts charged to and paid by the subsidiaries include reimbursements for various shared services and other expenses incurred directly on behalf of the subsidiaries by the Parent. In addition, there is in place a formal tax-sharing agreement between the Parent and its insurance subsidiaries. As a result of the Parent’s tax loss, it is anticipated that the tax-sharing agreement will continue to provide the Parent with additional funds from profitable subsidiaries to assist in meeting its cash flow obligations.

25

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The Company has two statutory trusts which exist for the exclusive purpose of issuing trust preferred securities representing undivided beneficial interests in the assets of the trusts and investing the gross proceeds of the trust preferred securities in Junior Subordinated Debentures. The outstanding $18.0 million and $15.7 million of Junior Subordinated Debentures mature on December 4, 2032 and May 15, 2033, respectively, are callable quarterly, in whole or in part, only at the option of the Company, and have an interest rate of 3-month CME Term SOFR plus applicable tenor spread of 0.26161 percent plus an applicable margin. The margin ranges from 4.00% to 4.10%. At September 30, 2023, the effective interest rate was 9.70%. The obligations of the Company with respect to the issuances of the trust preferred securities represent a full and unconditional guarantee by the Parent of each trust’s obligations with respect to the trust preferred securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer Junior Subordinated Debenture interest payments, which would result in a deferral of distribution payments on the related trust preferred securities. As of September 30, 2023, the Company has not made such an election.

The Company intends to pay its obligations under the Junior Subordinated Debentures using existing cash balances, dividend and tax-sharing payments from the operating subsidiaries, or from existing or potential future financing arrangements.

At September 30, 2023, the Company had 55,000 shares of Series D preferred stock (“Series D Preferred Stock”) outstanding. 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 stated 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. At September 30, 2023, the Company had accrued but unpaid dividends on the Series D Preferred Stock totaling $0.3 million.

Bankers Fidelity Life Insurance Company (''BFLIC") is a member of the Federal Home Loan Bank of Atlanta ("FHLB"), for the primary purpose of enhancing financial flexibility. As a member, BFLIC can obtain access to low-cost funding and also receive dividends on FHLB stock. The membership arrangement provides for credit availability of five percent of statutory admitted assets, or approximately $8.0 million, as of September 30, 2023. Additional FHLB stock purchases may be required based upon the amount of funds borrowed from the FHLB.  As of September 30, 2023, BFLIC has pledged bonds having an amortized cost of $6.9 million to the FHLB.  BFLIC may be required to post additional acceptable forms of collateral for any borrowings that it makes in the future from the FHLB.  As of September 30, 2023, BFLIC does not have any outstanding borrowings from the FHLB.

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 $10.0 million revolving credit facility that matures on April 12, 2024. Under the Credit Agreement, the Company paid interest on the unpaid principal balance of outstanding revolving loans at 1-month SOFR plus a spread adjustment of 0.11448% plus 2.00%, subject to a SOFR 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 September 30, 2023, the Company had outstanding borrowings of $3.0 million under the Credit Agreement.

Cash and cash equivalents decreased from $28.9 million at December 31, 2022 to $23.9 million at September 30, 2023. The decrease in cash and cash equivalents during the nine month period ended September 30, 2023 was primarily attributable to net cash used in operating activities of $3.5 million. Also contributing to the decrease in cash and cash equivalents was net cash used in investing activities of $2.0 million primarily as a result of investment purchases exceeding investment sales and maturity of securities. Partially offsetting the decrease in cash and cash equivalents was net cash provided by financing activities of $0.6 million primarily as a result of proceeds from bank financing.

The Company believes that existing cash balances as well as the dividends, fees, and tax-sharing payments it expects to receive from its subsidiaries and, if needed, borrowings under its credit facilities or additional borrowings from financial institutions, will enable the Company to meet its liquidity requirements for the foreseeable future. Management is not aware of any current recommendations by regulatory authorities, which, if implemented, would have a material adverse effect on the Company’s liquidity, capital resources or operations.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act of 1934 (the “Exchange Act”) reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applies its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. The Company’s management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures can prevent all possible errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the intentional acts of one or more persons. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and, while our disclosure controls and procedures are designed to be effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to possible errors or fraud may occur and may not be detected.

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on that evaluation, management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Remediation of Material Weakness in Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. The Company’s internal control over financial reporting system has been designed to provide reasonable assurance regarding the reliability and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Management recognizes that there are inherent limitations in the effectiveness of any internal control system. Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Furthermore, the application of any evaluations of effectiveness on future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

As previously disclosed in Part II, Item 9A. “Controls and Procedures” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, we identified certain deficiencies in internal control that we believe rose to the level of a material weakness. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Specifically, management determined that certain process controls over the development, testing, and implementation of our actuarial models used to estimate certain values in the Medicare supplement line of business within our life and health segment were not effective and the related management review controls did not operate at an appropriate level of precision to identify anomalies in results timely enough to allow management to respond without delays in our financial reporting process for the quarter and year ended December 31, 2022 and the quarter ended March 31, 2023.  Notwithstanding these deficiencies, management believes that, as a result of the actions taken by management to address and correct these deficiencies prior to the completion and filing of the relevant periodic reports for those periods, and the effective operation of other internal controls over financial reporting, the material weakness did not result in any identified material misstatements to our financial statements.  As a result, there were no changes to any of our previously-released financial statements.

To address the previously disclosed material weakness, the Company implemented changes in processes that include enhanced controls over the development, testing, and implementation of actuarial models, and additional controls over the reporting of the financial information that is obtained from these models. During the quarter ended September 30, 2023, the Company successfully completed the testing necessary to conclude that the material weakness has been remediated.

Changes in Internal Control Over Financial Reporting

Except for the changes described above, relating to the Company’s remediation efforts, there were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

No system of controls, no matter how well designed and implemented, can provide absolute assurance that the objectives of the system of controls are met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and any instances of fraud within a company have been detected.

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PART II. OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

On October 31, 2016, the Board of Directors of the Company approved a plan that allows for the repurchase of up to 750,000 shares of the Company's common stock (the "Repurchase Plan") on the open market or in privately negotiated transactions, as determined by an authorized officer of the Company. Any such repurchases can be made from time to time in accordance with applicable securities laws and other requirements.

Other than pursuant to the Repurchase Plan, no purchases of common stock of the Company were made by or on behalf of the Company during the periods described below.

The table below sets forth information regarding repurchases by the Company of shares of its common stock on a monthly basis during the three month period ended September 30, 2023.

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
July 1 – July 31, 2023			—			$	—				—				325,129
August 1 – August 31, 2023			—				—				—				325,129
September 1 – September 30, 2023			—				—				—				325,129
Total			—			$	—				—

Item 5. Other Information

None of the Company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended September 30, 2023, as such terms are defined under Item 408(a) of Regulation S-K.

Item 6. Exhibits

31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	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 Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

28

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ATLANTIC AMERICAN CORPORATION
	(Registrant)
Date: November 13, 2023	By:	/s/ J. Ross Franklin
		J. Ross Franklin
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

29

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EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hilton H. Howell, Jr., certify that:

1.

I have reviewed this report on Form 10-Q 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: November 13, 2023	/s/ Hilton H. Howell, Jr.
	Hilton H. Howell, Jr.
	President and Chief Executive Officer

---

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EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Ross Franklin, certify that:

1.

I have reviewed this report on Form 10-Q 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: November 13, 2023	/s/ J. Ross Franklin
	J. Ross Franklin
	Vice President and
	Chief Financial Officer

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EXHIBIT 32.1

Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Quarterly Report on Form 10-Q of Atlantic American Corporation (the “Company”) for the quarterly period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, that, to such officer’s knowledge:

(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: November 13, 2023	/s/ Hilton H. Howell, Jr.
	Hilton H. Howell, Jr.
	President and Chief Executive Officer
Date: November 13, 2023	/s/ J. Ross Franklin
	J. Ross Franklin
	Vice President and
	Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	0-3722
Entity Registrant Name	ATLANTIC AMERICAN CORP
Entity Central Index Key	0000008177
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1027114
Entity Address, Address Line One	4370 Peachtree Road, N.E.
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30319
City Area Code	404
Local Phone Number	266-5500
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	AAME
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,402,288

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 23,921	$ 28,863
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost: $237,213 and $236,766; no allowance for credit losses)	203,068	208,729
Equity securities, at fair value (cost: $4,936 and $4,907)	8,224	11,562
Other invested assets (cost: $6,982 and $5,628)	6,398	5,386
Policy loans	1,822	1,759
Real estate	38	38
Investment in unconsolidated trusts	1,238	1,238
Total investments	220,788	228,712
Receivables:
Reinsurance (net of allowance for uncollectible reinsurance of $64 and $0)	21,839	25,913
Insurance premiums and other (net of allowance for expected credit losses $191 and net of allowance for doubtful accounts $177)	24,687	15,386
Deferred income taxes, net	17,156	14,163
Deferred acquisition costs	41,926	42,281
Other assets	8,759	9,202
Intangibles	2,544	2,544
Total assets	361,620	367,064
Insurance reserves and policyholder funds:
Future policy benefits	84,851	85,564
Unearned premiums	30,642	28,348
Losses and claims	85,679	87,484
Other policy liabilities	816	1,255
Total insurance reserves and policyholder funds	201,988	202,651
Accounts payable and accrued expenses	24,129	26,473
Revolving credit facility	3,019	2,009
Junior subordinated debenture obligations, net	33,738	33,738
Total liabilities	262,874	264,871
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock, $1 par, 4,000,000 shares authorized; Series D preferred, 55,000 shares issued and outstanding; $5,500 redemption value	55	55
Common stock, $1 par, 50,000,000 shares authorized; shares issued: 22,400,894; shares outstanding: 20,402,288 and 20,407,229	22,401	22,401
Additional paid-in capital	57,425	57,425
Retained earnings	53,257	51,982
Accumulated other comprehensive income	(26,975)	(22,149)
Unearned stock grant compensation	(16)	(132)
Treasury stock, at cost: 1,998,606 and 1,993,665 shares	(7,401)	(7,389)
Total shareholders' equity	98,746	102,193
Total liabilities and shareholders' equity	$ 361,620	$ 367,064

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investments:
Fixed maturities, cost	$ 237,213	$ 236,766
Allowance for credit losses	0	0
Equity securities, cost	4,936	4,907
Other invested assets, cost	6,982	5,628
Receivables:
Reinsurance, allowance for uncollectible reinsurance	64	0
Insurance premiums and other, allowance for expected credit losses/allowance for doubtful accounts	$ 191	$ 177
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)	20,402,288	20,407,229
Treasury stock, at cost (in shares)	1,998,606	1,993,665

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Insurance premiums, net	$ 43,746	$ 46,380	$ 135,906	$ 140,526
Net investment income	2,325	2,641	7,425	7,510
Realized investment gains, net	0	101	70	29
Unrealized losses on equity securities, net	(1,486)	(2,783)	(3,367)	(5,456)
Other income	6	4	14	11
Total revenue	44,591	46,343	140,048	142,620
Benefits and expenses:
Insurance benefits and losses incurred	26,818	30,630	86,643	94,552
Commissions and underwriting expenses	11,064	12,843	36,830	35,894
Interest expense	850	523	2,407	1,291
Other expense	3,721	3,296	11,631	10,151
Total benefits and expenses	42,453	47,292	137,511	141,888
Income (loss) before income taxes	2,138	(949)	2,537	732
Income tax expense (benefit)	379	(265)	480	253
Net income (loss)	1,759	(684)	2,057	479
Preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	$ 1,659	$ (784)	$ 1,758	$ 180
Earnings (loss) per common share (basic) (in dollars per share)	$ 0.08	$ (0.04)	$ 0.09	$ 0.01
Earnings (loss) per common share (diluted) (in dollars per share)	$ 0.08	$ (0.04)	$ 0.09	$ 0.01

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net income (loss)	$ 1,759	$ (684)	$ 2,057	$ 479
Available-for-sale fixed maturity securities:
Gross unrealized holding losses arising in the period	(7,604)	(12,987)	(6,038)	(54,548)
Related income tax effect	1,596	2,727	1,267	11,455
Subtotal	(6,008)	(10,260)	(4,771)	(43,093)
Less: reclassification adjustment for net realized gains included in net income (loss)	0	(101)	(70)	(48)
Related income tax effect	0	21	15	10
Subtotal	0	(80)	(55)	(38)
Total other comprehensive loss, net of tax	(6,008)	(10,340)	(4,826)	(43,131)
Total comprehensive loss	$ (4,249)	$ (11,024)	$ (2,769)	$ (42,652)

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Unearned Stock Grant Compensation [Member]	Treasury Stock [Member]	Total
Balance, beginning of period at Dec. 31, 2021	$ 55	$ 22,401	$ 57,441	$ 51,264		$ 17,688	$ (73)	$ (7,490)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				479					$ 479
Other comprehensive loss, net of tax						(43,131)			(43,131)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(299)
Restricted stock grants, net of forfeitures			2				(71)	69
Amortization of unearned compensation							92
Net shares acquired related to employee share-based compensation plans								(108)
Balance, end of period at Sep. 30, 2022	55	$ 22,401	57,443	51,036		(25,443)	(52)	(7,529)	$ 97,911
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)									$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2021		20,378,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(36,347)
Restricted stock grants, net of forfeitures (in shares)		25,000
Balance, end of period (in shares) at Sep. 30, 2022		20,367,229
Balance, beginning of period at Jun. 30, 2022	55	$ 22,401	57,443	51,820		(15,103)	(79)	(7,436)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				(684)					$ (684)
Other comprehensive loss, net of tax						(10,340)			(10,340)
Dividends on common stock				0
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							27
Net shares acquired related to employee share-based compensation plans								(93)
Balance, end of period at Sep. 30, 2022	55	$ 22,401	57,443	51,036		(25,443)	(52)	(7,529)	$ 97,911
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)									$ 0
Balance, beginning of period (in shares) at Jun. 30, 2022		20,398,497
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(31,268)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2022		20,367,229
Balance, beginning of period at Dec. 31, 2022	55	$ 22,401	57,425	51,982	$ (75)	(22,149)	(132)	(7,389)	$ 102,193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]					ASU 2016-13 [Member]
Net income (loss)				2,057					2,057
Other comprehensive loss, net of tax						(4,826)			(4,826)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(299)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							116
Net shares acquired related to employee share-based compensation plans								(12)
Balance, end of period at Sep. 30, 2023	55	$ 22,401	57,425	53,257		(26,975)	(16)	(7,401)	$ 98,746
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)									$ 0.02
Balance, beginning of period (in shares) at Dec. 31, 2022		20,407,229							20,407,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		(4,941)
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2023		20,402,288							20,402,288
Balance, beginning of period at Jun. 30, 2023	55	$ 22,401	57,425	52,006		(20,967)	(33)	(7,401)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)				1,759					$ 1,759
Other comprehensive loss, net of tax						(6,008)			(6,008)
Dividends on common stock				(408)
Dividends accrued on preferred stock				(100)
Restricted stock grants, net of forfeitures			0				0	0
Amortization of unearned compensation							17
Net shares acquired related to employee share-based compensation plans								0
Balance, end of period at Sep. 30, 2023	$ 55	$ 22,401	$ 57,425	$ 53,257		$ (26,975)	$ (16)	$ (7,401)	$ 98,746
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared on common stock per share (in dollars per share)									$ 0.02
Balance, beginning of period (in shares) at Jun. 30, 2023		20,402,288
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net shares acquired under employee share-based compensation plans (in shares)		0
Restricted stock grants, net of forfeitures (in shares)		0
Balance, end of period (in shares) at Sep. 30, 2023		20,402,288							20,402,288

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,057	$ 479
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of (additions to) acquisition costs, net	355	(2,718)
Realized investment gains, net	(70)	(29)
Unrealized losses on equity securities, net	3,367	5,456
Losses (earnings) from equity method investees	343	(275)
Compensation expense related to share awards	116	92
Depreciation and amortization	521	683
Deferred income tax benefit	(1,711)	(1,394)
Increase in receivables, net	(5,227)	(4,783)
(Decrease) increase in insurance reserves and policyholder funds	(663)	2,492
Decrease in accounts payable and accrued expenses	(2,644)	(2,350)
Other, net	13	101
Net cash used in operating activities	(3,543)	(2,246)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investments sold	5,038	3,871
Proceeds from investments matured, called or redeemed	8,000	8,997
Investments purchased	(14,942)	(13,871)
Additions to property and equipment	(75)	(112)
Net cash used in investing activities	(1,979)	(1,115)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends on common stock	(408)	(408)
Treasury stock acquired - net employee share-based compensation	(12)	(108)
Proceeds from revolving credit facility, net	1,000	1,000
Net cash provided by financing activities	580	484
Net decrease in cash and cash equivalents	(4,942)	(2,877)
Cash and cash equivalents at beginning of period	28,863	24,753
Cash and cash equivalents at end of period	23,921	21,876
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	2,370	1,200
Cash paid for income taxes	$ 2,026	$ 2,164

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Note 1. Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Atlantic American Corporation (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). The Parent’s primary operating subsidiaries, American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) and Bankers Fidelity Life Insurance Company, Bankers Fidelity Assurance Company and Atlantic Capital Life Assurance Company (together known as “Bankers Fidelity”), operate in two principal business units. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The unaudited condensed consolidated financial statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”). The Company’s financial condition and results of operations and cash flows as of and for the three month and nine month periods ended September 30, 2023 are not necessarily indicative of the financial condition or results of operations and cash flows that may be expected for the year ending December 31, 2023 or for any other future period. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2023
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2. Recently Issued Accounting Standards 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. The Company adopted the guidance as of June 30, 2023. The adoption of the guidance had no significant impact on the Company’s financial condition and results of operations. 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”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance. Impact of Adoption on Condensed Consolidated Balance Sheet Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and September 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance     Allowance for Estimated Uncollectible Reinsurance   Balance, beginning of period   $ 25,913     $ —   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       75   Current period change for estimated uncollectible reinsurance     —       (11 ) Write-offs of uncollectible reinsurance recoverables     —       —   Balance, end of period   $ 21,839     $ 64   Insurance Premium and Other Receivables The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and September 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Insurance Premiums and Other, Net of Expected Credit Losses     Allowance for Doubtful Accounts/Expected Credit Losses   Balance, beginning of period   $ 15,386     $ 177   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       —   Current period change for expected credit losses     —       14   Write-offs of uncollectible insurance premiums and other receivables     —       —   Balance, end of period   $ 24,687     $ 191   Future Adoption of New Accounting Standards For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2022 Annual Report. Accounting Policies The following accounting policies have been updated to reflect the Company’s adoption of Financial Instruments - Credit Losses, as described above. Credit Impairments of Fixed Maturities 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, less allowance for credit losses (“ACL”), 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. 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. Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI. On January 1, 2023, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Reinsurance Recoverables The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement. Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. Insurance Premiums and Other Receivables Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

Investments	9 Months Ended
	Sep. 30, 2023
Investments [Abstract]
Investments	Note 3. Investments     The following tables set forth the estimated fair value, gross unrealized gains, gross unrealized losses, ACL and cost or amortized cost of the Company’s investments in fixed maturities and equity securities, aggregated by type and industry, as of September 30, 2023 and December 31, 2022.    Fixed maturities were comprised of the following:       September 30, 2023       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Allowance for Credit Losses     Cost or Amortized Cost   Fixed maturities:                               Bonds:                               U.S. Treasury securities and obligations of U.S. Government agencies and authorities   $ 47,576     $ 1     $ 6,595     $ —     $ 54,170   Obligations of states and political subdivisions     7,570       —       1,947       —       9,517   Corporate securities:                                         Utilities and telecom     19,693       —       4,064       —       23,757   Financial services     55,897       369       8,212       —       63,740   Other business – diversified     31,035       87       5,524       —       36,472   Other consumer – diversified     41,073       3       8,294       —       49,364   Total corporate securities     147,698       459       26,094       —       173,333   Redeemable preferred stocks:                                         Other consumer – diversified     224       31       —       —       193   Total redeemable preferred stocks     224       31       —       —       193   Total fixed maturities   $ 203,068     $ 491     $ 34,636     $ —     $ 237,213         December 31, 2022       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost or Amortized Cost   Fixed maturities:                         Bonds:                         U.S. Treasury securities and obligations of U.S. Government agencies and authorities   $ 44,412     $ 5     $ 5,926     $ 50,333   Obligations of states and political subdivisions     9,187       4       1,702       10,885   Corporate securities:                                 Utilities and telecom     22,090       120       3,299       25,269   Financial services     59,054       397       7,085       65,742   Other business – diversified     31,058       161       4,689       35,586   Other consumer – diversified     42,705       35       6,089       48,759   Total corporate securities     154,907       713       21,162       175,356   Redeemable preferred stocks:                                 Other consumer – diversified     223       31       —       192   Total redeemable preferred stocks     223       31       —       192   Total fixed maturities   $ 208,729     $ 753     $ 28,790     $ 236,766      Bonds having an amortized cost of $11,778 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $6,883 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2023 and December 31, 2022, respectively. Equity securities were comprised of the following:         September 30, 2023       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost   Equity securities:                         Common and non-redeemable preferred stocks:                         Financial services   $ 880     $ 577     $ —     $ 303   Other business – diversified     7,344       2,711       —       4,633   Total equity securities   $ 8,224     $ 3,288     $ —     $ 4,936       December 31, 2022       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost   Equity securities:                         Common and non-redeemable preferred stocks:                         Financial services   $ 790     $ 516     $ —     $ 274   Other business – diversified     10,772       6,139       —       4,633   Total equity securities   $ 11,562     $ 6,655     $ —     $ 4,907        The carrying value and amortized cost of the Company’s investments in fixed maturities at September 30, 2023 and December 31, 2022 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.        September 30, 2023     December 31, 2022       Carrying Value     Amortized Cost     Carrying Value     Amortized Cost   Due in one year or less   $ 367     $ 375     $ 3,776     $ 3,797   Due after one year through five years     57,498       61,209       40,150       42,174   Due after five years through ten years     33,444       38,759       44,044       49,711   Due after ten years     77,744       97,530       87,719       103,095   Asset backed securities     34,015       39,340       33,040       37,989   Totals   $ 203,068     $ 237,213     $ 208,729     $ 236,766        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 September 30, 2023 and December 31, 2022.       September 30, 2023       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   $ 10,205     $ 264     $ 36,873     $ 6,331     $ 47,078     $ 6,595   Obligations of states and political subdivisions     2,121       39       5,449       1,908       7,570       1,947   Corporate securities     12,457       748       129,484       25,346       141,941       26,094   Total temporarily impaired securities   $ 24,783     $ 1,051     $ 171,806     $ 33,585     $ 196,589     $ 34,636          December 31, 2022       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   $ 23,763     $ 2,410     $ 19,259     $ 3,516     $ 43,022     $ 5,926   Obligations of states and political subdivisions     8,183       1,702       —       —       8,183       1,702   Corporate securities     127,928       16,214       14,514       4,948       142,442       21,162   Total temporarily impaired securities   $ 159,874     $ 20,326     $ 33,773     $ 8,464     $ 193,647     $ 28,790        Analysis of Securities in Unrealized Loss Positions   As of September 30, 2023 and December 31, 2022, there were 251 and 237 securities, respectively, in an unrealized loss position which primarily included certain of the Company’s investments in fixed maturities within the utilities and telecom, financial services, other diversified business and other diversified consumer sectors. The unrealized losses on the Company’s fixed maturity securities investments have been primarily related to general market changes in interest rates and/or the levels of credit spreads rather than specific concerns with the issuer’s ability to pay interest and repay principal. For any of its fixed maturity securities with significant declines in fair value, the Company performs detailed analyses to identify whether the drivers of the declines are due to general market drivers, such as the recent increases in interest rates, or due to credit-related factors. Identifying the drivers of the declines in fair value helps to align and allocate the Company’s resources to securities with real credit-related concerns that could impact the ultimate collection of principal and interest. For any significant declines in fair value determined to be non-interest rate or market related, the Company performs a more focused review of the related issuers’ specific credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer’s capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers’ continued ability to service the Company’s investment through payment of interest and principal. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. In addition, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance will be estimated.  The Company had no ACL on its available-for-sale fixed maturities as of September 30, 2023.      The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2023 and 2022.         Three Months Ended September 30, 2023       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ —     $ —     $ —     $ —   Losses     —       —       —       —   Realized investment gains, net   $ —     $ —     $ —     $ —         Three Months Ended September 30, 2022       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 101     $ —     $ —     $ 101   Losses     —     —       —     — Realized investment gains, net   $ 101   $ —     $ —   $ 101     Nine Months Ended September 30, 2023       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 70     $ —     $ —     $ 70   Losses     —       —       —       —   Realized investment gains, net   $ 70     $ —     $ —     $ 70       Nine Months Ended September 30, 2022       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 101     $ —     $ —     $ 101   Losses     (53 )     —       (19 )     (72 ) Realized investment gains (losses), net   $ 48     $ —     $ (19 )   $ 29   The following table presents the change in unrealized losses related to equity securities still held for the three month and nine month periods ended September 30, 2023 and 2022.     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Net realized and unrealized losses recognized during the period on equity securities   $ (1,486 )   $ (2,783 )   $ (3,367 )   $ (5,456 ) Less: Net realized gains recognized during the period on equity securities sold during the period     —       —       —       —   Unrealized losses recognized during the reporting period on equity securities, net   $ (1,486 )   $ (2,783 )   $ (3,367 )   $ (5,456 )    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 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 $6,398 and $5,386 as of September 30, 2023 and December 31, 2022, respectively. The Company’s VIE interests, carried as a part of investment in unconsolidated trusts, totaled $1,238 as of September 30, 2023 and December 31, 2022. 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 $7,636 and $6,624, as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, the Company had outstanding commitments totaling $4,518 and $5,872, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses.

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2023
Fair Values of Financial Instruments [Abstract]
Fair Values of Financial Instruments	Note 4. Fair Values 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. 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 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 equity security.  As of September 30, 2023 and December 31, 2022, the value of the equity security valued using Level 3 criteria was $185 and $156, respectively. The equity security is not traded and is valued at cost. The use of different criteria or assumptions regarding data may have yielded materially different valuations. As of September 30, 2023, financial instruments carried at fair value were measured on a recurring basis as summarized below:     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)     Total   Assets:                         Fixed maturities   $ —     $ 203,068     $ —     $ 203,068   Equity securities     8,039       —       185       8,224   Cash equivalents     14,035       —       —       14,035   Total   $ 22,074     $ 203,068     $ 185     $ 225,327   As of December 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)     Total   Assets:                         Fixed maturities   $ —     $ 208,729     $ —     $ 208,729   Equity securities     11,406       —       156       11,562   Cash equivalents     18,861       —       —       18,861   Total   $ 30,267     $ 208,729     $ 156     $ 239,152   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 September 30, 2023 and December 31, 2022.         September 30, 2023     December 31, 2022     Level in Fair Value Hierarchy (1)   Carrying Amount     Estimated Fair Value     Carrying Amount     Estimated Fair Value   Assets:                             Cash and cash equivalents Level 1     $ 23,921     $ 23,921     $ 28,863     $ 28,863   Fixed maturities Level 2     203,068       203,068       208,729       208,729   Equity securities (1)     8,224       8,224       11,562       11,562   Other invested assets Level 3       6,398       6,398       5,386       5,386   Policy loans Level 2       1,822       1,822       1,759       1,759   Investment in unconsolidated trusts Level 2       1,238       1,238       1,238       1,238                                         Liabilities:                                     Junior subordinated debentures, net Level 2       33,738       32,923       33,738       33,810   Revolving credit facility  Level 2       3,019       3,019       2,009       2,009   (1) See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Internal-Use Software	9 Months Ended
	Sep. 30, 2023
Internal-Use Software [Abstract]
Internal-Use Software	Note 5. Internal-Use Software On March 3, 2021, the Company entered into a hosting arrangement through a service contract with a third party software solutions vendor to provide a suite of policy, billing, claim, and customer management services. The software is managed, hosted, supported, and delivered as a cloud-based software service product offering (software-as-a-service). The initial term of the arrangement is five years from the effective date with a renewal term of an additional five years. Service fees related to the hosting arrangement are recorded as an expense in the Company’s condensed consolidated statement of operations as incurred.  Implementation expenses incurred related to third party professional and consulting services have been capitalized.  The Company will begin amortizing, on a straight-line basis over the expected ten year term of the hosting arrangement, when the software is substantially ready for its intended use.  The Company incurred and capitalized implementation costs of $1,218 and $1,357 during the nine months ended September 30, 2023 and 2022, respectively.  As a result, the Company has capitalized $4,240 in implementation costs in other assets within its condensed consolidated balance sheet as of September 30, 2023.  The Company expects the software will be substantially ready for its intended use in the first half of 2024. Accordingly, the Company has not recorded any amortization expense related to software implementation costs for the three months and nine months ended September 30, 2023.

Insurance Reserves for Losses and Claims	9 Months Ended
	Sep. 30, 2023
Insurance Reserves for Losses and Claims [Abstract]
Insurance Reserves for Losses and Claims	Note 6. Insurance Reserves for Losses and Claims The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2023 and 2022 is as follows:     Nine Months Ended September 30,       2023     2022   Beginning insurance reserves for losses and claims, gross   $ 87,484     $ 85,620   Less: Reinsurance recoverable on unpaid losses     (17,647 )     (17,690 ) Beginning insurance reserves for losses and claims, net     69,837       67,930                     Incurred related to:                 Current accident year     82,276       96,897   Prior accident year development     2,706 (1)     (3,544 )(2) Total incurred     84,982       93,353                     Paid related to:                 Current accident year     43,595       57,478   Prior accident years     41,634       34,647   Total paid     85,229       92,125   Ending insurance reserves for losses and claims, net     69,590       69,158   Plus: Reinsurance recoverable on unpaid losses     16,089       17,420   Ending insurance reserves for losses and claims, gross   $ 85,679     $ 86,578   (1) Prior years’ development was primarily the result of unfavorable development in the automobile liability line of business in the property and casualty operations due to inflationary factors. (2) Prior years’ development was primarily the result of favorable development in the Medicare supplement line of business in the life and health operations, as well as favorable development in the surety line of business in the property and casualty operations. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:     Nine Months Ended September 30,       2023     2022   Total incurred losses   $ 84,982     $ 93,353   Cash surrender value and matured endowments     1,063       1,326   Benefit reserve changes     598       (127 ) Total insurance benefits and losses incurred   $ 86,643     $ 94,552

Credit Arrangements	9 Months Ended
	Sep. 30, 2023
Credit Arrangements [Abstract]
Credit Arrangements	Note 7. Credit Arrangements As expected, discontinuation of London Interbank Offered Rate (“LIBOR”) occurred on June 30, 2023 (“LIBOR Cessation Date”) and affected the rates used in the Company’s credit arrangements after that date. On March 15, 2022, the U.S. Congress enacted the Adjustable Interest Rate LIBOR Act (the “LIBOR Act”) to address LIBOR’s cessation and to establish a clear and uniform process for replacing the overnight and one-, three-, six- and 12-month tenors of USD LIBOR in existing contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate (“tough legacy contracts”).  Further, the Board of Governors of the Federal Reserve System (the “Board”) has issued regulations, 12 C.F.R. Part 253, “Regulations Implementing the Adjustable Interest Rate LIBOR Act (Regulation ZZ)” together with the LIBOR Act, constitute the “Federal LIBOR Legislation,” which relates to the LIBOR transition. 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 $10,000 revolving credit facility that matures on April 12, 2024. Prior to July 1, 2023, the Company paid interest on the unpaid principal balance of outstanding revolving loans at the 1-month LIBOR Rate (as defined in the Credit Agreement) plus 2.00%, subject to a LIBOR floor rate of 1.00%. Effective July 1, 2023, the interest rate on the unpaid principal balance of outstanding revolving loans is determined based on a reference rate of the 1-month Term Secured Overnight Financing Rate (“SOFR”) published by Chicago Mercantile Exchange Group Benchmark Administration Limited (“CME”) (as defined in the Credit Agreement) plus a spread adjustment of 0.11448% plus 2.00%, subject to a SOFR 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 September 30, 2023, the Company had outstanding borrowings including accrued interest of $3,019 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 the Company; and (iii) engaging in those activities necessary or incidental thereto. The outstanding $18.0 million and $15.7 million of Junior Subordinated Debentures mature on December 4, 2032 and May 15, 2033, respectively, are callable quarterly, in whole or in part, only at the option of the Company.  Prior to July 1, 2023, the interest rate was based on 3-month LIBOR plus an applicable margin. The margin ranges from 4.00% to 4.10%. Effective July 1, 2023, the interest rate is determined based on a reference rate of the 3-month SOFR plus applicable tenor spread of 0.26161 percent plus an applicable margin, ranging from 4.00% to 4.10%. The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2023 was as follows:     Atlantic American Statutory Trust I     Atlantic American Statutory Trust II   JUNIOR SUBORDINATED DEBENTURES (1) (2)             Principal amount owed September 30, 2023   $ 18,042     $ 23,196   Less: Treasury debt (3)     —       (7,500 ) Net balance September 30, 2023   $ 18,042     $ 15,696   Net balance December 31, 2022   $ 18,042     $ 15,696   Coupon rate   3-Month SOFR + 0.26161 spread adj + 4.00%     3-Month SOFR + 0.26161 spread adj + 4.10%   Interest payable   Quarterly     Quarterly   Maturity date   December 4, 2032     May 15, 2033   Redeemable by issuer   Yes     Yes   TRUST PREFERRED SECURITIES                 Issuance date   December 4, 2002     May 15, 2003   Securities issued     17,500       22,500   Liquidation preference per security   $ 1     $ 1   Liquidation value   $ 17,500     $ 22,500   Coupon rate   3-Month SOFR + 0.26161 spread adj + 4.00%     3-Month SOFR + 0.26161 spread adj + 4.10%   Distribution payable   Quarterly     Quarterly   Distribution guaranteed by (4)   Atlantic American Corporation     Atlantic American Corporation   (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2023
Earnings (Loss) Per Common Share [Abstract]
Earnings (Loss) Per Common Share	Note 8. Earnings (Loss) Per Common Share A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:     Three Months Ended September 30, 2023       Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic Earnings Per Common Share:                   Net income   $ 1,759       20,402         Less preferred stock dividends     (100 )     —            Net income applicable to common shareholders     1,659       20,402     0.08   Diluted Earnings Per Common Share:                         Effect of Series D preferred stock     100       1,378           Net income applicable to common shareholders   $ 1,759       21,780     $ 0.08       Three Months Ended September 30, 2022       Loss     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Loss Per Common Share:                   Net loss   $ (684 )     20,389         Less preferred stock dividends     (100 )     —            Net loss applicable to common shareholders   $ (784 )     20,389     $ (0.04 )     Nine Months Ended September 30, 2023     Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Earnings Per Common Share:                   Net income   $ 2,057       20,405         Less preferred stock dividends     (299 )     —           Net income applicable to common shareholders   $ 1,758       20,405     $ 0.09       Nine Months Ended September 30, 2022       Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Earnings Per Common Share:                   Net income   $ 479     20,390         Less preferred stock dividends     (299 )     —           Net income applicable to common shareholders   $ 180     20,390     $ 0.01 The assumed conversion of the Company’s Series D preferred stock was excluded from the earnings (loss) per common share calculation for all periods presented, except for the three month period ended September 30, 2023, since its impact would have been antidilutive.

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Taxes [Abstract]
Income Taxes	Note 9. Income Taxes A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Federal income tax provision at statutory rate of 21%   $ 449     $ (199 )   $ 533     $ 154   Dividends-received deduction     (10 )     (6 )     (27 )     (18 ) Meals and entertainment     9       29       32       49   Vested stock and club dues     11       (7 )     14       (7 ) Parking disallowance     5       4       13       12   Penalties and fines     —       —       —       149   Adjustment for prior years’ estimates to actual     (85 )     (86 )     (85 )     (86 ) Income tax expense (benefit)   $ 379     $ (265 )   $ 480     $ 253   The components of income tax expense (benefit) were:     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Current – Federal   $ 790     $ 435     $ 2,191     $ 1,647   Deferred – Federal     (411 )     (700 )     (1,711 )     (1,394 ) Total   $ 379     $ (265 )   $ 480     $ 253

Leases	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Leases	Note 10. 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 the nine months ended September 30, 2023 and September 30, 2022 was $761. Additional information regarding the Company’s real estate operating leases is as follows:     Nine Months Ended September 30,   Other information on operating leases:   2023     2022   Cash payments included in the measurement of lease liabilities reported in operating cash flows   $ 784     $ 772   Right-of-use assets included in other assets on the condensed consolidated balance sheet     2,817       3,595   Weighted average discount rate     6.8 %     6.8 % Weighted average remaining lease term in years   3.1 years     4.1 years   The following table presents maturities and present value of the Company’s lease liabilities:     Lease Liability   Remainder of 2023   $ 264   2024     1,065   2025     1,083   2026     942   Thereafter     —   Total undiscounted lease payments     3,354   Less: present value adjustment     343   Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet   $ 3,011   As of September 30, 2023, the Company has no operating leases that have not yet commenced.

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 11. 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 arising 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 the opinion of management, any such known regulatory matters are not expected to have a material effect on the financial condition or results of operations of the Company.

Segment Information	9 Months Ended
	Sep. 30, 2023
Segment Information [Abstract]
Segment Information	Note 12. Segment Information     The Parent’s primary insurance subsidiaries, American Southern and Bankers Fidelity, operate in two principal business units, each focusing on specific products. American Southern operates in the property and casualty insurance market, while Bankers Fidelity operates in the life and health insurance market. Each business unit is managed independently and is evaluated on its individual performance. The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2023 and 2022.   Assets   September 30, 2023     December 31, 2022   American Southern   $ 142,359     $ 144,455   Bankers Fidelity     188,875       195,028   Corporate and Other     30,386       27,581   Total assets   $ 361,620     $ 367,064   Revenues   Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   American Southern   $ 17,652     $ 18,538     $ 54,817     $ 56,540   Bankers Fidelity     27,249       27,641       85,632       86,099   Corporate and Other     (310 )     164       (401 )     (19 ) Total revenue   $ 44,591     $ 46,343     $ 140,048     $ 142,620      Income (Loss) Before Income Taxes   Three Months Ended September 30,     Nine Months Ended September 30,     2023     2022     2023     2022   American Southern   $ 1,437     $ 1,892     $ 3,823     $ 4,659   Bankers Fidelity     3,502       (850 )     6,705       2,084   Corporate and Other     (2,801 )     (1,991 )     (7,991 )     (6,011 ) Income (loss) before income taxes   $ 2,138     $ (949 )   $ 2,537     $ 732

Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2023
Recently Issued Accounting Standards [Abstract]
Adoption of New Accounting Standards	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. The Company adopted the guidance as of June 30, 2023. The adoption of the guidance had no significant impact on the Company’s financial condition and results of operations. 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”). The updated guidance applies a new credit loss model (current expected credit losses or CECL) for determining credit-related impairments for financial instruments measured at amortized cost (including reinsurance recoverables, premium and other receivables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses should consider historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. The updated guidance also amends the previous other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the updated guidance as of January 1, 2023. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the period of adoption. The adoption of this guidance resulted in the recognition of an after-tax cumulative effect adjustment of $0.1 million to reflect the impact of recognizing expected credit losses, as compared to incurred credit losses recognized under the previous guidance. This adjustment is primarily associated with reinsurance recoverables, premium and other receivables. The cumulative effect adjustment decreased retained earnings as of January 1, 2023 and increased the allowance for estimated uncollectible reinsurance. Impact of Adoption on Condensed Consolidated Balance Sheet Reinsurance Recoverables The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and September 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance     Allowance for Estimated Uncollectible Reinsurance   Balance, beginning of period   $ 25,913     $ —   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       75   Current period change for estimated uncollectible reinsurance     —       (11 ) Write-offs of uncollectible reinsurance recoverables     —       —   Balance, end of period   $ 21,839     $ 64   Insurance Premium and Other Receivables The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and September 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Insurance Premiums and Other, Net of Expected Credit Losses     Allowance for Doubtful Accounts/Expected Credit Losses   Balance, beginning of period   $ 15,386     $ 177   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       —   Current period change for expected credit losses     —       14   Write-offs of uncollectible insurance premiums and other receivables     —       —   Balance, end of period   $ 24,687     $ 191   Future Adoption of New Accounting Standards For more information regarding accounting standards that the Company has not yet adopted, see the “Recently Issued Accounting Standards - Future Adoption of New Accounting Standards” section of Note 1 of Notes to Consolidated Financial Statements in the 2022 Annual Report.
Credit Impairments of Fixed Maturities	Credit Impairments of Fixed Maturities 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, less allowance for credit losses (“ACL”), 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. 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. Prior to January 1, 2023, the Company applied other than temporary impairment (“OTTI”) guidance for securities in an unrealized loss position. An OTTI was recognized in earnings within realized investment gains (losses) when it was anticipated that the amortized cost would not be recovered. When either: (i) the Company had the intent to sell the security, or (ii) it was more likely than not that the Company would be required to sell the security before recovery, the reduction of amortized cost and the OTTI recognized in earnings was the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions existed, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected was recognized as a reduction of amortized cost and an OTTI in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors was recorded in OCI. On January 1, 2023, the Company adopted accounting standards update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using a modified retrospective approach. Under ASU 2016-13, for securities in an unrealized loss position, a credit loss is recognized in earnings within realized investment gains (losses) when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the reduction of amortized cost and the loss recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as a credit loss by establishing an ACL with a corresponding charge to earnings in realized investment gains (losses). However, the ACL is limited by the amount that the fair value is less than the amortized cost. This limitation is known as the “fair value floor.” If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the decline in value related to other-than-credit factors (“noncredit loss”) is recorded in OCI.
Reinsurance Recoverables	Reinsurance Recoverables The Company’s insurance subsidiaries from time to time purchase reinsurance from unaffiliated insurers and reinsurers to reduce their potential liability on individual risks and to protect against catastrophic losses. In a reinsurance transaction, an insurance company transfers, or “cedes,” a portion or all of its exposure on insurance policies to a reinsurer. The reinsurer assumes the exposure in return for a portion of the premiums. The ceding of insurance does not legally discharge the insurer from primary liability for the full amount of the policies written by it, and the ceding company will incur a loss if the reinsurer fails to meet its obligations under the reinsurance agreement. Amounts currently recoverable under reinsurance agreements are included in reinsurance receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance.
Insurance Premiums and Other Receivables	Insurance Premiums and Other Receivables Receivables amounts due from insureds and agents are evaluated periodically for collectibility. Allowances for expected credit losses are established, as and when a loss has been determined probable, against the related receivable. An allowance for expected credit loss is recognized by the Company when determined on a specific account basis and a general provision for loss is made based on the Company’s historical and expected experience.

Recently Issued Accounting Standards (Tables)	9 Months Ended
	Sep. 30, 2023
Recently Issued Accounting Standards [Abstract]
Reinsurance Recoverables	The following table presents the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, at January 1, 2023 and September 30, 2023, and the changes in the allowance for estimated uncollectible reinsurance for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance     Allowance for Estimated Uncollectible Reinsurance   Balance, beginning of period   $ 25,913     $ —   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       75   Current period change for estimated uncollectible reinsurance     —       (11 ) Write-offs of uncollectible reinsurance recoverables     —       —   Balance, end of period   $ 21,839     $ 64
Insurance Premium and Other Receivables	The following table presents the balances of insurance premiums and other, net of the allowance for expected credit losses, at January 1, 2023 and September 30, 2023, and the changes in the allowance for doubtful accounts/expected credit losses for the nine months ended September 30, 2023.     At and for the nine months ended September 30, 2023   (in thousands)   Insurance Premiums and Other, Net of Expected Credit Losses     Allowance for Doubtful Accounts/Expected Credit Losses   Balance, beginning of period   $ 15,386     $ 177   Cumulative effect of adoption of updated accounting guidance for  credit losses at January 1, 2023     —       —   Current period change for expected credit losses     —       14   Write-offs of uncollectible insurance premiums and other receivables     —       —   Balance, end of period   $ 24,687     $ 191

Investments (Tables)	9 Months Ended
	Sep. 30, 2023
Investments [Abstract]
Investments Aggregated by Type and Industry	Fixed maturities were comprised of the following:       September 30, 2023       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Allowance for Credit Losses     Cost or Amortized Cost   Fixed maturities:                               Bonds:                               U.S. Treasury securities and obligations of U.S. Government agencies and authorities   $ 47,576     $ 1     $ 6,595     $ —     $ 54,170   Obligations of states and political subdivisions     7,570       —       1,947       —       9,517   Corporate securities:                                         Utilities and telecom     19,693       —       4,064       —       23,757   Financial services     55,897       369       8,212       —       63,740   Other business – diversified     31,035       87       5,524       —       36,472   Other consumer – diversified     41,073       3       8,294       —       49,364   Total corporate securities     147,698       459       26,094       —       173,333   Redeemable preferred stocks:                                         Other consumer – diversified     224       31       —       —       193   Total redeemable preferred stocks     224       31       —       —       193   Total fixed maturities   $ 203,068     $ 491     $ 34,636     $ —     $ 237,213         December 31, 2022       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost or Amortized Cost   Fixed maturities:                         Bonds:                         U.S. Treasury securities and obligations of U.S. Government agencies and authorities   $ 44,412     $ 5     $ 5,926     $ 50,333   Obligations of states and political subdivisions     9,187       4       1,702       10,885   Corporate securities:                                 Utilities and telecom     22,090       120       3,299       25,269   Financial services     59,054       397       7,085       65,742   Other business – diversified     31,058       161       4,689       35,586   Other consumer – diversified     42,705       35       6,089       48,759   Total corporate securities     154,907       713       21,162       175,356   Redeemable preferred stocks:                                 Other consumer – diversified     223       31       —       192   Total redeemable preferred stocks     223       31       —       192   Total fixed maturities   $ 208,729     $ 753     $ 28,790     $ 236,766      Bonds having an amortized cost of $11,778 and $12,333 and included in the tables above were on deposit with insurance regulatory authorities as of September 30, 2023 and December 31, 2022, respectively, in accordance with statutory requirements. Additionally, bonds having an amortized cost of $6,883 and $7,221 and included in the tables above were pledged as collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2023 and December 31, 2022, respectively. Equity securities were comprised of the following:         September 30, 2023       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost   Equity securities:                         Common and non-redeemable preferred stocks:                         Financial services   $ 880     $ 577     $ —     $ 303   Other business – diversified     7,344       2,711       —       4,633   Total equity securities   $ 8,224     $ 3,288     $ —     $ 4,936       December 31, 2022       Estimated Fair Value     Gross Unrealized Gains     Gross Unrealized Losses     Cost   Equity securities:                         Common and non-redeemable preferred stocks:                         Financial services   $ 790     $ 516     $ —     $ 274   Other business – diversified     10,772       6,139       —       4,633   Total equity securities   $ 11,562     $ 6,655     $ —     $ 4,907
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 September 30, 2023 and December 31, 2022 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.        September 30, 2023     December 31, 2022       Carrying Value     Amortized Cost     Carrying Value     Amortized Cost   Due in one year or less   $ 367     $ 375     $ 3,776     $ 3,797   Due after one year through five years     57,498       61,209       40,150       42,174   Due after five years through ten years     33,444       38,759       44,044       49,711   Due after ten years     77,744       97,530       87,719       103,095   Asset backed securities     34,015       39,340       33,040       37,989   Totals   $ 203,068     $ 237,213     $ 208,729     $ 236,766
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 September 30, 2023 and December 31, 2022.       September 30, 2023       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   $ 10,205     $ 264     $ 36,873     $ 6,331     $ 47,078     $ 6,595   Obligations of states and political subdivisions     2,121       39       5,449       1,908       7,570       1,947   Corporate securities     12,457       748       129,484       25,346       141,941       26,094   Total temporarily impaired securities   $ 24,783     $ 1,051     $ 171,806     $ 33,585     $ 196,589     $ 34,636          December 31, 2022       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   $ 23,763     $ 2,410     $ 19,259     $ 3,516     $ 43,022     $ 5,926   Obligations of states and political subdivisions     8,183       1,702       —       —       8,183       1,702   Corporate securities     127,928       16,214       14,514       4,948       142,442       21,162   Total temporarily impaired securities   $ 159,874     $ 20,326     $ 33,773     $ 8,464     $ 193,647     $ 28,790
Summary of Realized Investment Gains (Losses)	The following tables summarize realized investment gains for the three month and nine month periods ended September 30, 2023 and 2022.         Three Months Ended September 30, 2023       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ —     $ —     $ —     $ —   Losses     —       —       —       —   Realized investment gains, net   $ —     $ —     $ —     $ —         Three Months Ended September 30, 2022       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 101     $ —     $ —     $ 101   Losses     —     —       —     — Realized investment gains, net   $ 101   $ —     $ —   $ 101     Nine Months Ended September 30, 2023       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 70     $ —     $ —     $ 70   Losses     —       —       —       —   Realized investment gains, net   $ 70     $ —     $ —     $ 70       Nine Months Ended September 30, 2022       Fixed Maturities     Equity Securities     Other Invested Assets     Total   Gains   $ 101     $ —     $ —     $ 101   Losses     (53 )     —       (19 )     (72 ) Realized investment gains (losses), net   $ 48     $ —     $ (19 )   $ 29
Unrealized Gains (Losses) on Equity Securities	The following table presents the change in unrealized losses related to equity securities still held for the three month and nine month periods ended September 30, 2023 and 2022.     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Net realized and unrealized losses recognized during the period on equity securities   $ (1,486 )   $ (2,783 )   $ (3,367 )   $ (5,456 ) Less: Net realized gains recognized during the period on equity securities sold during the period     —       —       —       —   Unrealized losses recognized during the reporting period on equity securities, net   $ (1,486 )   $ (2,783 )   $ (3,367 )   $ (5,456 )

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Values of Financial Instruments [Abstract]
Financial Instruments Carried at Fair Value Measured on a Recurring Basis	As of September 30, 2023, financial instruments carried at fair value were measured on a recurring basis as summarized below:     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)     Total   Assets:                         Fixed maturities   $ —     $ 203,068     $ —     $ 203,068   Equity securities     8,039       —       185       8,224   Cash equivalents     14,035       —       —       14,035   Total   $ 22,074     $ 203,068     $ 185     $ 225,327   As of December 31, 2022, financial instruments carried at fair value were measured on a recurring basis as summarized below:     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)     Total   Assets:                         Fixed maturities   $ —     $ 208,729     $ —     $ 208,729   Equity securities     11,406       —       156       11,562   Cash equivalents     18,861       —       —       18,861   Total   $ 30,267     $ 208,729     $ 156     $ 239,152
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 September 30, 2023 and December 31, 2022.         September 30, 2023     December 31, 2022     Level in Fair Value Hierarchy (1)   Carrying Amount     Estimated Fair Value     Carrying Amount     Estimated Fair Value   Assets:                             Cash and cash equivalents Level 1     $ 23,921     $ 23,921     $ 28,863     $ 28,863   Fixed maturities Level 2     203,068       203,068       208,729       208,729   Equity securities (1)     8,224       8,224       11,562       11,562   Other invested assets Level 3       6,398       6,398       5,386       5,386   Policy loans Level 2       1,822       1,822       1,759       1,759   Investment in unconsolidated trusts Level 2       1,238       1,238       1,238       1,238                                         Liabilities:                                     Junior subordinated debentures, net Level 2       33,738       32,923       33,738       33,810   Revolving credit facility  Level 2       3,019       3,019       2,009       2,009   (1) See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Insurance Reserves for Losses and Claims (Tables)	9 Months Ended
	Sep. 30, 2023
Insurance Reserves for Losses and Claims [Abstract]
Roll-forward of Insurance Reserves for Losses and Claims	The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2023 and 2022 is as follows:     Nine Months Ended September 30,       2023     2022   Beginning insurance reserves for losses and claims, gross   $ 87,484     $ 85,620   Less: Reinsurance recoverable on unpaid losses     (17,647 )     (17,690 ) Beginning insurance reserves for losses and claims, net     69,837       67,930                     Incurred related to:                 Current accident year     82,276       96,897   Prior accident year development     2,706 (1)     (3,544 )(2) Total incurred     84,982       93,353                     Paid related to:                 Current accident year     43,595       57,478   Prior accident years     41,634       34,647   Total paid     85,229       92,125   Ending insurance reserves for losses and claims, net     69,590       69,158   Plus: Reinsurance recoverable on unpaid losses     16,089       17,420   Ending insurance reserves for losses and claims, gross   $ 85,679     $ 86,578   (1) Prior years’ development was primarily the result of unfavorable development in the automobile liability line of business in the property and casualty operations due to inflationary factors. (2) Prior years’ development was primarily the result of favorable development in the Medicare supplement line of business in the life and health operations, as well as favorable development in the surety line of business in the property and casualty operations.
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:     Nine Months Ended September 30,       2023     2022   Total incurred losses   $ 84,982     $ 93,353   Cash surrender value and matured endowments     1,063       1,326   Benefit reserve changes     598       (127 ) Total insurance benefits and losses incurred   $ 86,643     $ 94,552

Credit Arrangements (Tables)	9 Months Ended
	Sep. 30, 2023
Credit Arrangements [Abstract]
Financial Structure of Statutory Business Trusts	The financial structure of each of Atlantic American Statutory Trust I and II as of September 30, 2023 was as follows:     Atlantic American Statutory Trust I     Atlantic American Statutory Trust II   JUNIOR SUBORDINATED DEBENTURES (1) (2)             Principal amount owed September 30, 2023   $ 18,042     $ 23,196   Less: Treasury debt (3)     —       (7,500 ) Net balance September 30, 2023   $ 18,042     $ 15,696   Net balance December 31, 2022   $ 18,042     $ 15,696   Coupon rate   3-Month SOFR + 0.26161 spread adj + 4.00%     3-Month SOFR + 0.26161 spread adj + 4.10%   Interest payable   Quarterly     Quarterly   Maturity date   December 4, 2032     May 15, 2033   Redeemable by issuer   Yes     Yes   TRUST PREFERRED SECURITIES                 Issuance date   December 4, 2002     May 15, 2003   Securities issued     17,500       22,500   Liquidation preference per security   $ 1     $ 1   Liquidation value   $ 17,500     $ 22,500   Coupon rate   3-Month SOFR + 0.26161 spread adj + 4.00%     3-Month SOFR + 0.26161 spread adj + 4.10%   Distribution payable   Quarterly     Quarterly   Distribution guaranteed by (4)   Atlantic American Corporation     Atlantic American Corporation   (1) For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. (2) The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. (3) On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. (4) The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings (Loss) Per Common Share [Abstract]
Reconciliation of Numerator and Denominator used in Earnings (Loss) per Common Share Calculations	A reconciliation of the numerator and denominator used in the earnings (loss) per common share calculations is as follows:     Three Months Ended September 30, 2023       Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic Earnings Per Common Share:                   Net income   $ 1,759       20,402         Less preferred stock dividends     (100 )     —            Net income applicable to common shareholders     1,659       20,402     0.08   Diluted Earnings Per Common Share:                         Effect of Series D preferred stock     100       1,378           Net income applicable to common shareholders   $ 1,759       21,780     $ 0.08       Three Months Ended September 30, 2022       Loss     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Loss Per Common Share:                   Net loss   $ (684 )     20,389         Less preferred stock dividends     (100 )     —            Net loss applicable to common shareholders   $ (784 )     20,389     $ (0.04 )     Nine Months Ended September 30, 2023     Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Earnings Per Common Share:                   Net income   $ 2,057       20,405         Less preferred stock dividends     (299 )     —           Net income applicable to common shareholders   $ 1,758       20,405     $ 0.09       Nine Months Ended September 30, 2022       Income     Weighted Average Shares (In thousands)     Per Share Amount   Basic and Diluted Earnings Per Common Share:                   Net income   $ 479     20,390         Less preferred stock dividends     (299 )     —           Net income applicable to common shareholders   $ 180     20,390     $ 0.01

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2023
Income Taxes [Abstract]
Reconciliation of Income Tax Expense (Benefit)	A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Federal income tax provision at statutory rate of 21%   $ 449     $ (199 )   $ 533     $ 154   Dividends-received deduction     (10 )     (6 )     (27 )     (18 ) Meals and entertainment     9       29       32       49   Vested stock and club dues     11       (7 )     14       (7 ) Parking disallowance     5       4       13       12   Penalties and fines     —       —       —       149   Adjustment for prior years’ estimates to actual     (85 )     (86 )     (85 )     (86 ) Income tax expense (benefit)   $ 379     $ (265 )   $ 480     $ 253
Components of Income Tax Expense	The components of income tax expense (benefit) were:     Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   Current – Federal   $ 790     $ 435     $ 2,191     $ 1,647   Deferred – Federal     (411 )     (700 )     (1,711 )     (1,394 ) Total   $ 379     $ (265 )   $ 480     $ 253

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Additional Information of Operating Leases	Additional information regarding the Company’s real estate operating leases is as follows:     Nine Months Ended September 30,   Other information on operating leases:   2023     2022   Cash payments included in the measurement of lease liabilities reported in operating cash flows   $ 784     $ 772   Right-of-use assets included in other assets on the condensed consolidated balance sheet     2,817       3,595   Weighted average discount rate     6.8 %     6.8 % Weighted average remaining lease term in years   3.1 years     4.1 years
Maturities and Present Value of Lease Liabilities	The following table presents maturities and present value of the Company’s lease liabilities:     Lease Liability   Remainder of 2023   $ 264   2024     1,065   2025     1,083   2026     942   Thereafter     —   Total undiscounted lease payments     3,354   Less: present value adjustment     343   Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet   $ 3,011

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Information [Abstract]
Assets, Revenue Loss Before Income Taxes for Each Business Unit	The following sets forth the assets, revenue and income (loss) before income taxes for each business unit as of and for the periods ended 2023 and 2022.   Assets   September 30, 2023     December 31, 2022   American Southern   $ 142,359     $ 144,455   Bankers Fidelity     188,875       195,028   Corporate and Other     30,386       27,581   Total assets   $ 361,620     $ 367,064   Revenues   Three Months Ended September 30,     Nine Months Ended September 30,       2023     2022     2023     2022   American Southern   $ 17,652     $ 18,538     $ 54,817     $ 56,540   Bankers Fidelity     27,249       27,641       85,632       86,099   Corporate and Other     (310 )     164       (401 )     (19 ) Total revenue   $ 44,591     $ 46,343     $ 140,048     $ 142,620      Income (Loss) Before Income Taxes   Three Months Ended September 30,     Nine Months Ended September 30,     2023     2022     2023     2022   American Southern   $ 1,437     $ 1,892     $ 3,823     $ 4,659   Bankers Fidelity     3,502       (850 )     6,705       2,084   Corporate and Other     (2,801 )     (1,991 )     (7,991 )     (6,011 ) Income (loss) before income taxes   $ 2,138     $ (949 )   $ 2,537     $ 732

Basis of Presentation and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2023 Segment
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of business units	2

Recently Issued Accounting Standards, Reinsurance Recoverables (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses	$ 64
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	25,913
Balance, end of period	21,839
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Current period change for estimated uncollectible reinsurance	(11)
Write-offs of uncollectible reinsurance recoverables	0
Balance, end of period	64
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financial Instruments - Credit Losses [Abstract]
Allowance for credit losses
Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	0
Allowance for Estimated Uncollectible Reinsurance [Abstract]
Balance, beginning of period	$ 75

Recently Issued Accounting Standards, Insurance Premium and Other Receivables (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	$ 15,386
Balance, end of period	24,687
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	177
Current period change for expected credit losses	14
Write-offs of uncollectible insurance premiums and other receivables	0
Balance, end of period	191
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Insurance Premiums and Other, Net of Expected Credit Losses [Abstract]
Balance, beginning of period	0
Allowance for Doubtful Accounts/Expected Credit Losses [Abstract]
Balance, beginning of period	$ 0

Investments, Aggregated by Type and Industry (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investments aggregated by type and industry [Abstract]
Estimated fair value	$ 203,068	$ 208,729
Allowance for credit losses	0	0
Amortized cost total	237,213	236,766
Estimated fair value	8,224	11,562
Cost	4,936	4,907
Amortized cost of bonds on deposit with insurance regulatory authorities	11,778	12,333
Bonds Pledged as Collateral [Member] | FHLB Advances [Member]
Investments aggregated by type and industry [Abstract]
Amortized cost pledged as collateral to FHLB	6,883	7,221
Fixed Maturities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	203,068	208,729
Gross unrealized gains	491	753
Gross unrealized losses	34,636	28,790
Allowance for credit losses	0
Amortized cost total	237,213	236,766
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	47,576	44,412
Gross unrealized gains	1	5
Gross unrealized losses	6,595	5,926
Allowance for credit losses	0
Amortized cost total	54,170	50,333
Obligations of States and Political Subdivisions [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	7,570	9,187
Gross unrealized gains	0	4
Gross unrealized losses	1,947	1,702
Allowance for credit losses	0
Amortized cost total	9,517	10,885
Corporate Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	147,698	154,907
Gross unrealized gains	459	713
Gross unrealized losses	26,094	21,162
Allowance for credit losses	0
Amortized cost total	173,333	175,356
Corporate Securities [Member] | Utilities and Telecom [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	19,693	22,090
Gross unrealized gains	0	120
Gross unrealized losses	4,064	3,299
Allowance for credit losses	0
Amortized cost total	23,757	25,269
Corporate Securities [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	55,897	59,054
Gross unrealized gains	369	397
Gross unrealized losses	8,212	7,085
Allowance for credit losses	0
Amortized cost total	63,740	65,742
Corporate Securities [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	31,035	31,058
Gross unrealized gains	87	161
Gross unrealized losses	5,524	4,689
Allowance for credit losses	0
Amortized cost total	36,472	35,586
Corporate Securities [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	41,073	42,705
Gross unrealized gains	3	35
Gross unrealized losses	8,294	6,089
Allowance for credit losses	0
Amortized cost total	49,364	48,759
Redeemable Preferred Stocks [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	224	223
Gross unrealized gains	31	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193
Redeemable Preferred Stocks [Member] | Other Consumer - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	224	223
Gross unrealized gains	31	31
Gross unrealized losses	0	0
Allowance for credit losses	0
Amortized cost total	193	192
Equity Securities [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	8,224	11,562
Gross unrealized gains	3,288	6,655
Gross unrealized losses	0	0
Cost	4,936	4,907
Common and Non-redeemable Preferred Stocks [Member] | Financial Services [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	880	790
Gross unrealized gains	577	516
Gross unrealized losses	0	0
Cost	303	274
Common and Non-redeemable Preferred Stocks [Member] | Other Business - Diversified [Member]
Investments aggregated by type and industry [Abstract]
Estimated fair value	7,344	10,772
Gross unrealized gains	2,711	6,139
Gross unrealized losses	0	0
Cost	$ 4,633	$ 4,633

Investments, Fixed Maturities by Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Carrying Value [Abstract]
Due in one year or less	$ 367	$ 3,776
Due after one year through five years	57,498	40,150
Due after five years through ten years	33,444	44,044
Due after ten years	77,744	87,719
Asset backed securities	34,015	33,040
Carrying value total	203,068	208,729
Amortized Cost [Abstract]
Due in one year or less	375	3,797
Due after one year through five years	61,209	42,174
Due after five years through ten years	38,759	49,711
Due after ten years	97,530	103,095
Asset backed securities	39,340	37,989
Amortized cost total	$ 237,213	$ 236,766

Investments, Securities with Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2023 USD ($) Securities	Dec. 31, 2022 USD ($) Securities
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	$ 24,783	$ 159,874
12 months or longer	171,806	33,773
Total	196,589	193,647
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	1,051	20,326
12 months or longer	33,585	8,464
Total	$ 34,636	$ 28,790
Number of securities in unrealized loss position | Securities	251	237
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0	$ 0
U.S. Treasury Securities and Obligations of U.S. Government Agencies and Authorities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	10,205	23,763
12 months or longer	36,873	19,259
Total	47,078	43,022
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	264	2,410
12 months or longer	6,331	3,516
Total	6,595	5,926
Allowance for expected credit losses on available-for-sale fixed maturities	0
Obligations of States and Political Subdivisions [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	2,121	8,183
12 months or longer	5,449	0
Total	7,570	8,183
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	39	1,702
12 months or longer	1,908	0
Total	1,947	1,702
Allowance for expected credit losses on available-for-sale fixed maturities	0
Corporate Securities [Member]
Available-for-sale securities, continuous unrealized loss position, Fair Value [Abstract]
Less than 12 months	12,457	127,928
12 months or longer	129,484	14,514
Total	141,941	142,442
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses [Abstract]
Less than 12 months	748	16,214
12 months or longer	25,346	4,948
Total	26,094	$ 21,162
Allowance for expected credit losses on available-for-sale fixed maturities	$ 0

Investments, Summary of Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Summary of realized investment gains (losses) [Abstract]
Gains	$ 0	$ 101	$ 70	$ 101
Losses	0	0	0	(72)
Realized investment losses (gains), net	0	101	70	29
Fixed Maturities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	101	70	101
Losses	0	0	0	(53)
Realized investment losses (gains), net	0	101	70	48
Equity Securities [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	0	0	0
Losses	0	0	0	0
Realized investment losses (gains), net	0	0	0	0
Other Invested Assets [Member]
Summary of realized investment gains (losses) [Abstract]
Gains	0	0	0	0
Losses	0	0	0	(19)
Realized investment losses (gains), net	$ 0	$ 0	$ 0	$ (19)

Investments, Unrealized Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments [Abstract]
Net realized and unrealized losses recognized during the period on equity securities	$ (1,486)	$ (2,783)	$ (3,367)	$ (5,456)
Less: Net realized gains recognized during the period on equity securities sold during the period	0	0	0	0
Unrealized losses recognized during the reporting period on equity securities, net	$ (1,486)	$ (2,783)	$ (3,367)	$ (5,456)

Investments, Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Variable Interest Entities [Abstract]
Carrying amount of interest	$ 6,398	$ 5,386
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	6,398	5,386
Investment in unconsolidated trusts	1,238	1,238
Maximum loss exposure	7,636	6,624
Outstanding commitments	$ 4,518	$ 5,872

Fair Values of Financial Instruments, Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	$ 203,068	$ 208,729
Equity securities	8,224	11,562
Recurring [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	203,068	208,729
Equity securities	8,224	11,562
Cash equivalents	14,035	18,861
Assets at fair value	225,327	239,152
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	8,039	11,406
Cash equivalents	14,035	18,861
Assets at fair value	22,074	30,267
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	203,068	208,729
Equity securities	0	0
Cash equivalents	0	0
Assets at fair value	203,068	208,729
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial instruments carried at fair value measured on a recurring basis [Abstract]
Fixed maturities	0	0
Equity securities	185	156
Cash equivalents	0	0
Assets at fair value	$ 185	$ 156

Fair Values of Financial Instruments, Estimated Fair Value and Level (Details) - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Assets [Abstract]
Fixed maturities		$ 203,068	$ 208,729
Equity securities		8,224	11,562
Carrying Amount [Member]
Assets [Abstract]
Equity securities	[1]	8,224	11,562
Carrying Amount [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		23,921	28,863
Carrying Amount [Member] | Level 2 [Member]
Assets [Abstract]
Fixed maturities		203,068	208,729
Policy loans		1,822	1,759
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		33,738	33,738
Revolving credit facility		3,019	2,009
Carrying Amount [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		6,398	5,386
Estimated Fair Value [Member]
Assets [Abstract]
Equity securities	[1]	8,224	11,562
Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents		23,921	28,863
Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Fixed maturities		203,068	208,729
Policy loans		1,822	1,759
Investment in unconsolidated trusts		1,238	1,238
Liabilities [Abstract]
Junior subordinated debentures, net		32,923	33,810
Revolving credit facility		3,019	2,009
Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Other invested assets		$ 6,398	$ 5,386
[1] See the aforementioned information for a description of the fair value hierarchy as well as a description of levels for classes of these financial assets.

Internal-Use Software (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Internal Use Software [Abstract]
Period of initial terms of arrangement		5 years
Period of additional renewal term		5 years
Incurred and capitalized implementation costs		$ 1,218	$ 1,357
Capitalized implementation costs	$ 4,240	4,240
Amortization expense	$ 0	$ 0
Software Capitalized Implementation Costs [Member]
Internal Use Software [Abstract]
Amortization period	10 years	10 years

Insurance Reserves for Losses and Claims (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Insurance Reserves for Losses and Claims [Roll Forward]
Beginning insurance reserves for losses and claims, gross			$ 87,484		$ 85,620
Less: Reinsurance recoverable on unpaid losses			(17,647)		(17,690)
Beginning insurance reserves for losses and claims, net			69,837		67,930
Incurred related to [Abstract]
Current accident year			82,276		96,897
Prior accident year development			2,706	[1]	(3,544)	[2]
Total incurred			84,982		93,353
Paid related to [Abstract]
Current accident year			43,595		57,478
Prior accident years			41,634		34,647
Total paid			85,229		92,125
Ending insurance reserves for losses and claims, net	$ 69,590	$ 69,158	69,590		69,158
Plus: Reinsurance recoverable on unpaid losses	16,089	17,420	16,089		17,420
Ending insurance reserves for losses and claims, gross	85,679	86,578	85,679		86,578
Reconciliation of total incurred claims to total insurance benefits and losses incurred [Abstract]
Total incurred losses			84,982		93,353
Cash surrender value and matured endowments			1,063		1,326
Benefit reserve changes			598		(127)
Total insurance benefits and losses incurred	$ 26,818	$ 30,630	$ 86,643		$ 94,552
[1] Prior years’ development was primarily the result of unfavorable development in the automobile liability line of business in the property and casualty operations due to inflationary factors. [2] Prior years’ development was primarily the result of favorable development in the Medicare supplement line of business in the life and health operations, as well as favorable development in the surety line of business in the property and casualty operations.

Credit Arrangements, Bank Debt (Details) - Revolving Credit Facility [Member] $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Jun. 30, 2023	Sep. 30, 2023 USD ($)	May 12, 2021 USD ($)
Bank Debt [Abstract]
Unsecured credit facility				$ 10,000
Maturity date			Apr. 12, 2024
Basis spread on variable rate		2.00%
Outstanding borrowings	$ 3,019		$ 3,019
Minimum [Member]
Bank Debt [Abstract]
Indebtedness capital ratio	0.35		0.35
LIBOR [Member]
Bank Debt [Abstract]
Interest rate floor		1.00%
Variable rate term			1 month
SOFR [Member]
Bank Debt [Abstract]
Basis spread on variable rate	0.11448%
Interest rate floor	1.00%
Variable rate term	1 month

Credit Arrangements, Junior Subordinated Debentures (Details) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2023	Sep. 30, 2023 USD ($) Quarter Trust $ / shares shares
Debt Instruments [Abstract]
Number of Connecticut statutory business trusts | Trust				2
Financial structure of statutory business trusts [Abstract]
Net balance June 30, 2023		$ 33,738		$ 33,738
Net balance December 31, 2022				$ 33,738
Junior Subordinated Debentures [Member]
Financial structure of statutory business trusts [Abstract]
Number of consecutive quarters for which interest payments can be deferred | Quarter				20
Junior Subordinated Debentures [Member] | LIBOR [Member]
Financial structure of statutory business trusts [Abstract]
Variable rate term				3 months
Junior Subordinated Debentures [Member] | SOFR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate				0.26161%
Variable rate term		3 months
Atlantic American Statutory Trust I [Member] | Junior Subordinated Debentures [Member]
Financial structure of statutory business trusts [Abstract]
Principal amount owed June 30, 2023	[1],[2]	$ 18,042		$ 18,042
Less: Treasury debt	[1],[2],[3]	0		0
Net balance June 30, 2023	[1],[2]	$ 18,042		18,042
Net balance December 31, 2022	[1],[2]			$ 18,042
Coupon rate				3-Month SOFR + 0.26161 spread adj + 4.00%
Interest payable				Quarterly
Maturity date	[1],[2]			Dec. 04, 2032
Redeemable by issuer	[1],[2]			Yes
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member]
Financial structure of statutory business trusts [Abstract]
Coupon rate				3-Month SOFR + 0.26161 spread adj + 4.00%
Issuance date				Dec. 04, 2002
Securities issued (in shares) | shares		17,500		17,500
Liquidation preference per security (in dollars per share) | $ / shares		$ 1		$ 1
Liquidation value		$ 17,500		$ 17,500
Distribution payable				Quarterly
Distribution guaranteed by	[4]			Atlantic American Corporation
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate			4.10%
Atlantic American Statutory Trust I [Member] | Trust Preferred Securities [Member] | SOFR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate		4.10%
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member]
Financial structure of statutory business trusts [Abstract]
Principal amount owed June 30, 2023	[1],[2]	$ 23,196		$ 23,196
Less: Treasury debt	[1],[2],[3]	(7,500)		(7,500)
Net balance June 30, 2023	[1],[2]	$ 15,696		15,696
Net balance December 31, 2022	[1],[2]			$ 15,696
Coupon rate				3-Month SOFR + 0.26161 spread adj + 4.10%
Interest payable				Quarterly
Maturity date	[1],[2]			May 15, 2033
Redeemable by issuer	[1],[2]			Yes
Atlantic American Statutory Trust II [Member] | Junior Subordinated Debentures [Member] | LIBOR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate			4.00%
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member]
Financial structure of statutory business trusts [Abstract]
Coupon rate				3-Month SOFR + 0.26161 spread adj + 4.10%
Issuance date				May 15, 2003
Securities issued (in shares) | shares		22,500		22,500
Liquidation preference per security (in dollars per share) | $ / shares		$ 1		$ 1
Liquidation value		$ 22,500		$ 22,500
Distribution payable				Quarterly
Distribution guaranteed by	[4]			Atlantic American Corporation
Atlantic American Statutory Trust II [Member] | Trust Preferred Securities [Member] | SOFR [Member]
Financial structure of statutory business trusts [Abstract]
Basis spread on variable rate		4.00%
[1] For each of the respective debentures, the Company has the right at any time, and from time to time, to defer payments of interest on the Junior Subordinated Debentures for a period not exceeding 20 consecutive quarters up to the debentures’ respective maturity dates. During any such period, interest will continue to accrue and the Company may not declare or pay any cash dividends or distributions on, or purchase, the Company’s common stock nor make any principal, interest or premium payments on or repurchase any debt securities that rank equally with or junior to the Junior Subordinated Debentures. The Company has the right at any time to dissolve each of the trusts and cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. [2] The Junior Subordinated Debentures are unsecured and rank junior and subordinate in right of payment to all senior debt of the Parent and are effectively subordinated to all existing and future liabilities of its subsidiaries. [3] On August 4, 2014, the Company acquired $7,500 of the Junior Subordinated Debentures. [4] The Parent has guaranteed, on a subordinated basis, all of the obligations under the Trust Preferred Securities, including payment of the redemption price and any accumulated and unpaid distributions to the extent of available funds and upon dissolution, winding up or liquidation.

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic Earnings (Loss) Per Common Share [Abstract]
Net income (loss)	$ 1,759	$ (684)	$ 2,057	$ 479
Less: preferred stock dividends	(100)	(100)	(299)	(299)
Net income (loss) applicable to common shareholders	1,659	(784)	1,758	180
Diluted Earnings (Loss) Per Common Share [Abstract]
Effect of Series D preferred stock	100
Net income (loss) applicable to common shareholders	$ 1,759	$ (784)	$ 1,758	$ 180
Weighted Average Shares [Abstract]
Weighted average shares outstanding, Basic (in shares)	20,402	20,389	20,405	20,390
Effect of Series D preferred stock (in shares)	1,378
Weighted average shares outstanding, Diluted (in shares)	21,780	20,389	20,405	20,390
Per Share Amount, Basic [Abstract]
Net income (loss) applicable to common shareholders, Basic (in dollars per share)	$ 0.08	$ (0.04)	$ 0.09	$ 0.01
Per Share Amount, Diluted [Abstract]
Net income (loss) applicable to common shareholders, Diluted (in dollars per share)	$ 0.08	$ (0.04)	$ 0.09	$ 0.01

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reconciliation of income tax expense (benefit) [Abstract]
Federal income tax provision at statutory rate of 21%	$ 449	$ (199)	$ 533	$ 154
Dividends-received deduction	(10)	(6)	(27)	(18)
Meals and entertainment	9	29	32	49
Vested stock and club dues	11	(7)	14	(7)
Parking disallowance	5	4	13	12
Penalties and fines	0	0	0	149
Adjustment for prior years' estimates to actual	(85)	(86)	(85)	(86)
Income tax expense (benefit)	379	(265)	$ 480	253
Federal statutory income tax rate			21.00%
Components of income tax expense (benefit) [Abstract]
Current - Federal	790	435	$ 2,191	1,647
Deferred - Federal	(411)	(700)	(1,711)	(1,394)
Income tax expense (benefit)	$ 379	$ (265)	$ 480	$ 253

Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) Lease	Sep. 30, 2022 USD ($)
Lease description [Abstract]
Number of operating lease agreements | Lease	2
Lease expense	$ 761	$ 761
Other information on operating leases [Abstract]
Cash payments included in the measurement of lease liabilities reported in operating cash flows	784	772
Right-of-use assets included in other assets on the condensed consolidated balance sheet	$ 2,817	$ 3,595
Weighted average discount rate	6.80%	6.80%
Weighted average remaining lease term in years	3 years 1 month 6 days	4 years 1 month 6 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]
Remainder of 2023	$ 264
2024	1,065
2025	1,083
2026	942
Thereafter	0
Total undiscounted lease payments	3,354
Less: present value adjustment	343
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$ 3,011
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

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Information [Abstract]
Number of business units | Segment			2
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	$ 361,620		$ 361,620		$ 367,064
Revenues	44,591	$ 46,343	140,048	$ 142,620
Income (loss) before income taxes	2,138	(949)	2,537	732
Operating Segments [Member] | American Southern [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	142,359		142,359		144,455
Revenues	17,652	18,538	54,817	56,540
Income (loss) before income taxes	1,437	1,892	3,823	4,659
Operating Segments [Member] | Bankers Fidelity [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	188,875		188,875		195,028
Revenues	27,249	27,641	85,632	86,099
Income (loss) before income taxes	3,502	(850)	6,705	2,084
Corporate and Other [Member]
Assets, Revenue and Income (loss) before income taxes for each business unit [Abstract]
Assets	30,386		30,386		$ 27,581
Revenues	(310)	164	(401)	(19)
Income (loss) before income taxes	$ (2,801)	$ (1,991)	$ (7,991)	$ (6,011)

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